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payees; and (3) other amounts becom- procurement subcontract under a coning owed under programs for which no tract. current services or performance is re Cost sharing or matching means the quired, such as annuities, insurance value of the third party in-kind conclaims, and other benefit payments. tributions and the portion of the costs

Accrued income means the sum of: (1) of a federally assisted project or proEarnings during a given period from gram not borne by the Federal Governservices performed by the grantee and ment, goods and other tangible property de Cost-type contract means a contract or livered to purchasers, and (2) amounts subcontract under a grant in which the becoming owed to the grantee for contractor or subcontractor is paid on which no current services or perform the basis of the costs it incurs, with or ance is required by the grantee.

without a fee. Acquisition cost of an item of pur- Equipment means tangible, nonchased equipment means the net in expendable, personal property having a voice unit price of the property includ useful life of more than one year and ing the cost of modifications, attach an acquisition cost of $5,000 or more ments, accessories, or auxiliary appa per unit. A grantee may use its own ratus necessary to make the property definition of equipment provided that usable for the purpose for which it was such definition would at least include acquired. Other charges such as the all equipment defined above. cost of installation, transportation, Expenditure report means: (1) For nontaxes, duty or protective in-transit in

construction grants, the SF-269 "Fisurance, shall be included or excluded nancial Status Report” (or other equivfrom the unit acquisition cost in ac alent report); (2) for construction cordance with the grantee's regular ac grants, the SF-271 “Outlay Report and counting practices.

Request for Reimbursement” (or other Administrative requirements mean equivalent report). those matters common to grants in Federally recognized Indian tribal govgeneral, such as financial management, ernment means the governing body or a kinds and frequency of reports, and re governmental agency of any Indian tention of records. These are distin- tribe. band, nation, or other organi guished from programmatic require group or community (including any ments, which concern matters that can Native village as defined in section 3 of be treated only on a program-by-pro the Alaska Native Claims Settlement gram or grant-by-grant basis, such as Act, 85 Stat 688) certified by the Seckinds of activities that can be sup- retary of the Interior as eligible for the ported by grants under a particular special programs and services provided program.

by him through the Bureau of Indian Awarding agency means (1) with re- Affairs. spect to a grant, the Federal agency, Government means a State or local and (2) with respect to a subgrant, the government or a federally recognized party that awarded the subgrant.

Indian tribal government. Cash contributions means the grant Grant means an award of financial asee's cash outlay, including the outlay sistance, including cooperative agreeof money contributed to the grantee or ments, in the form of money, or propsubgrantee by other public agencies erty in lieu of money, by the Federal and institutions, and private organiza- Government to an eligible grantee. The tions and individuals. When authorized term does not include technical assistby Federal legislation, Federal funds ance which provides services instead of received from other assistance agree money, or other assistance in the form ments may be considered as grantee or of revenue sharing, loans, loan guaransubgrantee cash contributions.

tees, interest subsidies, insurance, or Contract means (except as used in the direct appropriations. Also, the term definitions for grant and subgrant in does not include assistance, such as a this section and except where qualified fellowship or other lump sum award. by Federal) a procurement contract which the grantee is not required to acunder a grant or subgrant, and means a count for.

Grantee means the government to which a grant is awarded and which is accountable for the use of the funds provided. The grantee is the entire legal entity even if only a particular component of the entity is designated in the grant award document.

Local government means a county, municipality, city, town, township, local public authority (including any public and Indian housing agency under the United States Housing Act of 1937) school district, special district. intrastate district, council of governments (whether or not incorporated as a nonprofit corporation under state law), any other regional or interstate government entity, or any agency or instrumentality of a local government.

Obligations means the amounts of orders placed, contracts and subgrants awarded, goods and services received, and similar transactions during a given period that will require payment by the grantee during the same or a future period.

OMB means the United States Office of Management and Budget.

Outlays (expenditures) mean charges made to the project or program. They may be reported on a cash or accrual basis. For reports prepared on a cash basis, outlays are the sum of actual cash disbursement for direct charges for goods and services, the amount of indirect expense incurred, the value of in-kind contributions applied, and the amount of cash advances and payments made to contractors and subgrantees. For reports prepared on an accrued expenditure basis, outlays are the sum of actual cash disbursements, the amount of indirect expense incurred, the value of inkind contributions applied, and the new increase (or decrease) in the amounts owed by the grantee for goods and other property received, for seryices performed by employees, contractors, subgrantees, subcontractors, and other payees, and other amounts becoming owed under programs for which no current services or performance are required, such as annuities, insurance claims, and other benefit payments.

Percentage of completion method refers to a system under which payments are made for construction work according to the percentage of completion of the

work, rather than to the grantee's cost incurred.

Prior approval means documentation evidencing consent prior to incurring specific cost. For the Department of Energy, this must be signed by a Contracting Officer.

Real property means land, including land improvements, structures and appurtenances thereto, excluding movable machinery and equipment.

Share, when referring to the awarding agency's portion of real property, equipment or supplies, means the same percentage as the awarding agency's portion of the acquiring party's total costs under the grant to which the acquisition costs under the grant to which the acquisition cost of the property was charged. Only costs are to be counted—not the value of third-party in-kind contributions.

State means any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State exclusive of local governments. The term does not include any public and Indian housing agency under United States Housing Act of 1937.

Subgrant means an award of financial assistance in the form of money, or property in lieu of money, made under a grant by a grantee to an eligible subgrantee. The term includes financial assistance when provided by contractual legal agreement, but does not include procurement purchases, nor does it include any form of assistance which is excluded from the definition of grant in this subpart.

Subgrantee means the government or other legal entity to which a subgrant is awarded and which is accountable to the grantee for the use of the funds provided.

Supplies means all tangible personal property other than “equipment" as defined in this subpart.

Suspension means depending on the context, either (1) temporary withdrawal of the authority to obligate grant funds pending corrective action by the grantee or subgrantee or a decision to terminate the grant, or (2) an action taken by a suspending official in accordance with agency regulations

implementing E.O. 12549 to imme- $600.203 Applicability. diately exclude a person from partici

(a) General. Sections 600.400 through pating in grant transactions for a pe

600.452 of this subpart apply to all riod, pending completion of an inves

grants and subgrants to governments, tigation and such legal or debarment

except where inconsistent with Federal proceedings as may ensue.

statutes or with regulations authorized Termination means permanent with in accordance with the exception providrawal of the authority to obligate pre- sion of $ 600.405, or: viously-awarded grant funds before (1) Grants and subgrants to State and that authority would otherwise expire. local institutions of higher education It also means the voluntary relinquish- or State and local hospitals. ment of that authority by the grantee (2) The block grants authorized by or subgrantee. Termination does not in the Omnibus Budget Reconciliation clude: (1) Withdrawal of funds awarded Act of 1981 (Community Services; Preon the basis of the grantee's underesti- ventive Health and Health Services; Almate of the unobligated balance in a cohol, Drug Abuse, and Mental Health prior period; (2) withdrawal of the un Services; Maternal and Child Health obligated balance as of the expiration Services; Social Services; Low-Income of a grant; (3) refusal to extend a grant Home Energy Assistance; States' Proor award additional funds, to make a

gram of Community Development competing or noncompeting continu

Block Grants for Small Cities; and Eleation, renewal, extension, or supple

mentary and Secondary Education mental award; or (4) voiding of a grant

other than programs administered by upon determination that the award was

the Secretary of Education under Title

V, Subtitle D, Chapter 2, Section 583 obtained fraudulently, or was other

the Secretary's discretionary grant wise illegal or invalid from inception.

program) and Titles I-III of the Job Terms of a grant or subgrant mean all

Training Partnership Act of 1982 and requirements of the grant or subgrant,

under the Public Health Services Act whether in statute, regulations, or the (Section 1921), Alcohol and Drug Abuse award document.

Treatment and Rehabilitation Block Third party in-kind contributions mean Grant and part of Title V, Mental property or services which benefit a Health Service for the Homeless Block federally assisted project or program Grant). and which are contributed by non-Fed (3) Entitlement grants to carry out eral third parties without charge to the the following programs of the Social grantee, or a cost-type contractor Security Act: under the grant agreement.

(i) Aid to Needy Families with DeUnliquidated obligations for reports pendent Children (Title IV-A of the prepared on a cash basis mean the Act, not including the Work Incentive amount of obligations incurred by the Program (WIN) authorized by section grantee that has not been paid. For re

402(a)19(G); HHS grants for WIN are ports prepared on an accrued expendi

subject to this subpart); ture basis, they represent the amount

(ii) Child Support Enforcement and of obligations incurred by the grantee

Establishment of Paternity (Title IV-D for which an outlay has not been re

of the Act); corded.

(iii) Foster Care and Adoption Assist

ance (Title IV-E of the Act); Unobligated balance means the portion of the funds authorized by the

(iv) Aid to the Aged, Blind, and Dis

abled (Titles I, X, XIV, and XVI-AABD Federal agency that has not been obli

of the Act); and gated by the grantee and is determined

(v) Medical Assistance (Medicaid) by deducting the cumulative obliga

(Title XIX of the Act) not including the tions from the cumulative funds au

State Medicaid Fraud Control program thorized.

authorized by section 1903(a)(6)(B). (53 FR 8087, Mar. 11, 1988, as amended at 53 (4) Entitlement grants under the folFR 8047, Mar. 11, 1988; 54 FR 23960, June 5, lowing programs of The National

School Lunch Act:


(i) School Lunch (section 4 of the Act),

(ii) Commodity Assistance (section 6 of the Act),

(iii) Special Meal Assistance (section 11 of the Act),

(iv) Summer Food Service for Children (section 13 of the Act), and

(v) Child Care Food Program (section 17 of the Act).

(5) Entitlement grants under the following programs of The Child Nutrition Act of 1966:

(i) Special Milk (section 3 of the Act),

tent they are required by statute, or authorized in accordance with the exception provision in $ 600.205. (53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 1994, as amended at 61 FR 7165, Feb. 26, 1996) $ 600.205 Additions and exceptions.

(a) For classes of grants and grantees subject to this subpart, Federal agencies may not impose additional administrative requirements except in codified regulations published in the FEDERAL REGISTER.

(b) Exceptions for classes of grants or grantees may be authorized only by OMB.

(c) Exceptions on a case-by-case basis and for subgrantees may be authorized by the affected Federal agencies.

(d) The DOE procedural requirements for requesting additions and exceptions are specified in 600.4. (53 FR 8087, Mar. 11, 1988, as amended at 53 FR 8047, Mar. 11, 1988]


(ii) School Breakfast (section 4 of the Act).

(6) Entitlement grants for State Administrative expenses under The Food Stamp Act of 1977 (section 16 of the Act).

(7) A grant for an experimental, pilot, or demonstration project that is also supported by a grant listed in paragraph (a)(3) of this section;

(8) Grant funds awarded under subsection 412(e) of the Immigration and Nationality Act (8 U.S.C. 1522(e)) and subsection 501(a) of the Refugee Education Assistance Act of 1980 (Pub. L. 96-422, 94 Stat. 1809), for cash assistance, medical assistance, and supplemental security income benefits to refugees and entrants and the administrative costs of providing the assistance and benefits;

(9) Grants to local education agencies under 20 U.S.C. 236 through 241-1(a), and 242 through 244 (portions of the Impact Aid program), except for 20 U.S.C. 238(d)(2)(c) and 240(f) (Entitlement Increase for Handicapped Children); and

(10) Payments under the Veterans Administration's State Home Per Diem Program (38 U.S.C. 641(a)).

(b) Entitlement programs. Entitlement programs enumerated above in $ 600.403(a) (3) through (8) are subject to subpart E. [53 FR 8045, 8087, Mar. 11, 1988, as amended at 54 FR 23960, June 5, 1989) $600.204 Effect on other issuances.

All other grants administration provisions of codified program regulations, program manuals, handbooks and other nonregulatory materials which are inconsistent with this subpart are superseded, except to the ex

PRE-AWARD REQUIREMENTS 8600.210 Forms for applying for

grants. (a) Scope. (1) This section prescribes forms and instructions to be used by governmental organizations (except hospitals and institutions of higher education operated by a government) in applying for grants. This section is not applicable, however, to formula grant programs which do not require applicants to apply for funds on a project basis.

(2) This section applies only to applications to Federal agencies for grants, and is not required to be applied by grantees in dealing with applicants for subgrants. However, grantees are encouraged to avoid more detailed or burdensome application requirements for subgrants.

(b) Authorized forms and instructions for governmental organizations. (1) In applying for grants, applicants shall only use standard application forms or those prescribed by the granting agency with the approval of OMB under the Paperwork Reduction Act of 1980.

(2) Applicants are not required to submit more than the original and two copies of preapplications or applications.

(d) Amendments. A State will amend a plan whenever necessary to reflect: (1) New or revised Federal statutes or regulations or (2) a material change in any State law, organization, policy, or State agency operation. The State will obtain approval for the amendment and its effective date but need submit for approval only the amended portions of the plan.

(3) Applicants must follow all applicable instructions that bear OMB clearance numbers. Federal agencies may specify and describe the programs, functions, or activities that will be used to plan, budget, and evaluate the work under a grant. Other supplementary instructions may be issued only with the approval of OMB to the extent required under the Paperwork Reduction Act of 1980. For any standard form, except the SF-424 facesheet, Federal agencies may shade out or instruct the applicant to disregard any line item that is not needed.

(4) When a grantee applies for additional funding (such as a continuation or supplemental award) or amends a previously submitted application, only the affected pages need be submitted. Previously submitted pages with information that is still current need not be resubmitted.

$ 600.211 State plans.

(a) Scope. The statutes for some programs require States to submit plans before receiving grants. Under regulations implementing Executive Order 12372. “Intergovernmental Review of Federal Programs.” States are allowed to simplify, consolidate and substitute plans. This section contains additional

ntains additional provisions for plans that are subject to regulations implementing the Executive order.

(b) Requirements. A State need meet only Federal administrative or programmatic requirements for a plan that are in statutes or codified regulations.

(c) Assurances. In each plan the State will include an assurance that the State shall comply with all applicable Federal statutes and regulations in effect with respect to the periods for which it receives grant funding. For this assurance and other assurances required in the plan, the State may:

(1) Cite by number the statutory or regulatory provisions requiring the assurances and affirm that it gives the assurances required by those provisions,

(2) Repeat the assurance language in the statutes or regulations, or

(3) Develop its own language to the extent permitted by law.

$ 600.212 Special grant or subgrant

conditions for "high-risk" recipi.

ents. (a) A grantee or subgrantee may be considered “high risk” if an awarding agency determines that a grantee or subgrantee:

(1) Has a history of unsatisfactory performance, or

(2) Is not financially stable, or

(3) Has a management system which does not meet the management standards set forth in this subpart, or

(4) Has not conformed to terms and conditions of previous awards, or

(5) Is otherwise not responsible; and if the awarding agency determines that an award will be made, special conditions and/or restrictions shall correspond to the high risk condition and shall be included in the award.

(b) Special conditions or restrictions may include:

(1) Payment on a reimbursement basis;

(2) Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given funding period;

(3) Requiring additional, more detailed financial reports;

(4) Additional project monitoring;

(5) Requiring the grantee or subgrantee to obtain technical or management assistance; or

(6) Establishing additional prior approvals.

(c) If an awarding agency decides to impose such conditions, the awarding official will notify the grantee or subgrantee as early as possible, in writing, of:

(1) The nature of the special conditions/restrictions;

(2) The reason(s) for imposing them;

(3) The corrective actions which must be taken before they will be removed

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