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(3) Compliance with Executive Order grantees make final payments and all 11246 of September 24, 1965, entitled other pending matters are closed. "Equal Employment Opportunity," as (12) Compliance with all applicable amended by Executive Order 11375 of standards, orders, or requirements October 13, 1967, and as supplemented issued under section 306 of the Clean in Department of Labor regulations (41 Air Act (42 U.S.C. 1857(h)), section 508 CFR chapter 60). (All construction con- of the Clean Water Act (33 U.S.C. 1368), tracts awarded in excess of $10,000 by Executive Order 11738, and Environgrantees and their contractors or sub mental Protection Agency regulations grantees)

(40 CFR part 15). (Contracts, sub(4) Compliance with the Copeland contracts, and subgrants of amounts in “Anti-Kickback” Act (18 U.S.C. 874) as excess of $100,000). supplemented in Department of Labor (13) Mandatory standards and policies regulations (29 CFR Part 3). (All con- relating to energy efficiency which are tracts and subgrants for construction contained in the state energy conservaor repair)

tion plan issued in compliance with the (5) Compliance with the Davis-Bacon Energy Policy and Conservation Act Act (40 U.S.C. 276a to 276a-7) as supple

(Pub. L. 94–163, 89 Stat. 871). mented by Department of Labor regu

(53 FR 8045, 8087, Mar. 11, 1988, as amended at lations (29 CFR Part 5). (Construction 60 FR 19639, 19641, Apr. 19, 1995; 61 FR 7166, contracts in excess of $2000 awarded by Feb. 26, 1996) grantees and subgrantees when required by Federal grant program legis

al grant program legis- $ 600.237 Subgrants. lation)

(a) States. States shall follow state (6) Compliance with Sections 103 and law and procedures when awarding and 107 of the Contract Work Hours and administering subgrants (whether on a Safety Standards Act (40 U.S.C. 327–330) cost reimbursement or fixed amount as supplemented by Department of basis) of financial assistance to local Labor regulations (29 CFR Part 5). and Indian tribal governments. States (Construction contracts awarded by shall: grantees and subgrantees in excess of (1) Ensure that every subgrant in$2000, and in excess of $2500 for other cludes any clauses required by Federal contracts which involve the employ- statute and executive orders and their ment of mechanics or laborers)

implementing regulations; (7) Notice of awarding agency re- (2) Ensure that subgrantees are quirements and regulations pertaining aware of requirements imposed upon to reporting.

them by Federal statute and regula(8) Notice of awarding agency re tion; quirements and regulations pertaining (3) Ensure that a provision for comto patent rights with respect to any pliance with $ 600.242 is placed in every discovery or invention which arises or cost reimbursement subgrant; and is developed in the course of or under (4) Conform any advances of grant such contract.

funds to subgrantees substantially to (9) Awarding agency requirements the same standards of timing and and regulations pertaining to copy amount that apply to cash advances by rights and rights in data.

Federal agencies. (10) Access by the grantee, the sub (b) All other grantees. All other grantgrantee, the Federal grantor agency, ees shall follow the provisions of this the Comptroller General of the United subpart which are applicable to awardStates, or any of their duly authorized ing agencies when awarding and adminrepresentatives to any books, docu- istering subgrants (whether on a cost ments, papers, and records of the con reimbursement or fixed amount basis) tractor which are directly pertinent to of financial assistance to local and Inthat specific contract for the purpose dian tribal governments. Grantees of making audit, examination, ex- shall: cerpts, and transcriptions.

(1) Ensure that every subgrant in(11) Retention of all required records cludes a provision for compliance with for three years after grantees or sub- this subpart;

(2) Ensure that every subgrant includes any clauses required by Federal statute and executive orders and their implementing regulations; and

(3) Ensure that subgrantees are aware of requirements imposed upon them by Federal statutes and regulations

(c) Erceptions. By their own terms, certain provisions of this subpart do not apply to the award and administration of subgrants:

(1) Section 600.210; (2) Section 600.211;

(3) The letter-of-credit procedures specified in Treasury Regulations at 31 CFR part 205, cited in $600.221; and

(4) Section 600.250. [53 FR 8045, 8087, Mar. 11, 1988. Redesignated at 59 FR 53264, Oct. 21, 1994, as amended at 61 FR 7166, Feb. 26, 1996)

period. The final performance report will be due 90 days after the expiration or termination of grant support. If a justified request is submitted by a grantee, the Federal agency may extend the due date for any performance report. Additionally, requirements for unnecessary performance reports may be waived by the Federal agency.

(2) Performance reports will contain, for each grant, brief information on the following:

(i) A comparison of actual accomplishments to the objectives established for the period. Where the output of the project can be quantified, a computation of the cost per unit of output may be required if that information

Reports, Records Retention, and

Enforcement $ 600.240 Monitoring and reporting

program performance. (a) Monitoring by grantees. Grantees are responsible for managing the dayto-day operations of grant and subgrant supported activities. Grantees must monitor grant and subgrant supported activities to assure compliance with applicable Federal requirements and that performance goals are being achieved. Grantee monitoring must cover each program, function or activity.

(b) Nonconstruction performance reports. The Federal agency may, if it decides that performance information available from subsequent applications contains sufficient information to meet its programmatic needs, require the grantee to submit a performance report only upon expiration or termination of grant support. Unless waived by the Federal agency this report will be due on the same date as the final Financial Status Report.

(1) Grantees shall submit annual performance reports unless the awarding agency requires quarterly or semi-annual reports. However, performance reports will not be required more frequently than quarterly. Annual reports shall be due 90 days after the grant year, quarterly or semi-annual reports shall be due 30 days after the reporting

(ii) The reasons for slippage if established objectives were not met.

(iii) Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.

(3) Grantees will not be required to submit more than the original and two copies of performance reports.

(4) Grantees will adhere to the standards in this section in prescribing performance reporting requirements for subgrantees.

(c) Construction performance reports. For the most part, on-site technical inspections and certified percentage-ofcompletion data are relied on heavily by Federal agencies to monitor progress under construction grants and subgrants. The Federal agency will require additional formal performance reports only when considered necessary, and never more frequently than

gu

(d) Significant developments. Events may occur between the scheduled performance reporting dates which have significant impact upon the grant or subgrant supported activity. In such cases, the grantee must inform the Federal agency as soon as the following types of conditions become known:

(1) Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the award. This disclosure must include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.

(2) Favorable developments which en dite or contribute to the accuracy of able meeting time schedules and objec- reporting. Federal agencies may accept tives sooner or at less cost than antici the required information from grantees pated or producing more beneficial re- in machine usable format or computer sults than originally planned.

printouts instead of prescribed forms. (e) Federal agencies may make site (6) Federal agencies may waive any visits as warranted by program needs. report required by this section if not

(f) Waivers, extensions. (1) Federal needed. agencies may waive any performance (7) Federal agencies may extend the report required by this part if not need due date of any financial report upon ed.

receiving a justified request from a (2) The grantee may waive any per grantee. formance report from a subgrantee (b) Financial Status Report-(1) Form. when not needed. The grantee may ex- Grantees will use Standard Form 269 or tend the due date for any performance 269A, Financial Status Report, to rereport from a subgrantee if the grantee port the status of funds for all nonwill still be able to meet its perform construction grants and for construcance reporting obligations to the Fed- tion grants when required in accorderal agency.

ance with $ 600.241(e)(2)(iii).

(2) Accounting basis. Each grantee will $ 600.241 Financial reporting.

report program outlays and program (a) General. (1) Except as provided in income on a cash or accrual basis as paragraphs (a) (2) and (5) of this sec prescribed by the awarding agency. If tion, grantees will use only the forms the Federal agency requires accrual inspecified in paragraphs (a) through (e) formation and the grantee's accounting of this section, and such supple records are not normally kept on the mentary or other forms as may from accrual basis, the grantee shall not be time to time be authorized by OMB, required to convert its accounting sysfor:

tem but shall develop such accrual in(i) Submitting financial reports to formation through and analysis of the Federal agencies, or

documentation on hand. (ii) Requesting advances or reim (3) Frequency. The Federal agency bursements when letters of credit are may prescribe the frequency of the renot used.

port for each project or program. How(2) Grantees need not apply the forms ever, the report will not be required prescribed in this section in dealing more frequently than quarterly. If the with their subgrantees. However, Federal agency does not specify the grantees shall not impose more burden frequency of the report, it will be subsome requirements on subgrantees. mitted annually. A final report will be

(3) Grantees shall follow all applica required upon expiration or termible standard and supplemental Federal nation of grant support. agency instructions approved by OMB (4) Due date. When reports are reto the extent required under the Paper quired on a quarterly or semiannual work Reduction Act of 1980 for use in basis, they will be due 30 days after the connection with forms specified in reporting period. When required on an paragraphs (b) through (e) of this sec- annual basis, they will be due 90 days tion. Federal agencies may issue sub after the grant year. Final reports will stantive supplementary instructions be due 90 days after the expiration or only with the approval of OMB. Federal termination of grant support. agencies may shade out or instruct the (c) Federal Cash Transactions Reportgrantee to disregard any line item that (1) Form. (i) For grants paid by letter or the Federal agency finds unnecessary credit, Treasury check advances or for its decisionmaking purposes.

electronic transfer of funds, the grant(4) Grantees will not be required to ee will submit the Standard Form 272, submit more than the original and two Federal Cash Transactions Report, and copies of forms required under this sub when necessary, its continuation sheet, part.

Standard Form 272a, unless the terms (5) Federal agencies may provide of the award exempt the grantee from computer outputs to grantees to expe- this requirement.

(ii) These reports will be used by the ties paid by reimbursement method. (i) Federal agency to monitor cash ad- Requests for reimbursement under convanced to grantees and to obtain dis- struction grants will be submitted on bursement or outlay information for Standard Form 271, Outlay Report and each grant from grantees. The format Request for Reimbursement for Conof the report may be adapted as appro struction Programs. Federal agencies priate when reporting is to be accom- may, however, prescribe the Request plished with the assistance of auto- for Advance or Reimbursement form, matic data processing equipment pro specified in 8600.241(d), instead of this

that the information to be sub- form. mitted is not changed in substance.

(ii) The frequency for submitting re(2) Forecasts of Federal cash require- imbursement requests is treated in ments. Forecasts of Federal cash re

8 600.241(b)(3). quirements may be required in the

(2) Grants that support construction ac“Remarks" section of the report.

tivities paid by letter of credit, electronic (3) Cash in hands of subgrantees. When

funds transfer or Treasury check adconsidered necessary and feasible by

vance. (i) When a construction grant is the Federal agency, grantees may be

paid by letter of credit, electronic required to report the amount of cash

funds transfer or Treasury check adadvances in excess of three days' needs in the hands of their subgrantees or

vances, the grantee will report its outcontractors and to provide short nar

lays to the Federal agency using rative explanations of actions taken by

Standard Form 271, Outlay Report and the grantee to reduce the excess bal

Request for Reimbursement for Conances.

struction Programs. The Federal agen(4) Frequency and due date. Grantees

cy will provide any necessary special must submit the report no later than 15

instruction. However, frequency and working days following the end of each due date shall be governed by quarter. However, where an advance ei

$ 600.241(b) (3) and (4). ther by letter of credit or electronic

(ii) When a construction grant is paid transfer of funds is authorized at an by Treasury check advances based annualized rate of one million dollars periodic requests from the grantee, the or more, the Federal agency may re- advances will be requested on the form quire the report to be submitted within specified in $ 600.241(d). 15 working days following the end of (iii) The Federal agency may subeach month.

stitute the Financial Status Report (d) Request for advance or reimburse- specified in $600.241(b) for the Outlay ment-(1) Advance payments. Requests Report and Request for Reimbursement for Treasury check advance payments for Construction Programs. will be submitted on Standard Form (3) Accounting basis. The accounting 270, Request for Advance or Reimburse- basis for the Outlay Report and Rement. (This form will not be used for

quest for Reimbursement for Construcdrawdowns under a letter of credit,

tion Programs shall be governed by electronic funds transfer or when

$ 600.241(b)(2). Treasury check advance payments are made to the grantee automatically on

(53 FR 8045, 8047, Mar. 11, 1988, as amended at a predetermined basis.)

59 FR 53266, Oct. 21, 1994; 61 FR 7166, Feb. 26, (2) Reimbursements. Requests for reim

1996) bursement under nonconstruction

8 600.242 Retention and access regrants will also be submitted on Stand

quirements for records. ard Form 270. (For reimbursement requests under construction grants, see

(a) Applicability. (1) This section apparagraph (e)(1) of this section.)

plies to all financial and programmatic (3) The frequency for submitting pay records, supporting documents, statisment requests is treated in tical records, and other records of $600.441(b)(3).

grantees or subgrantees which are: (e) Outlay report and request for reim- (i) Required to be maintained by the bursement for construction programs(1) terms of this subpart, program regulaGrants that support construction activi- tions or the grant agreement, or

on

197-031 D-01--6

(ii) Otherwise reasonably considered from the date of the disposition or reas pertinent to program regulations or placement or transfer at the direction the grant agreement.

of the awarding agency. (2) This section does not apply to (3) Records for income transactions records maintained by contractors or after grant or subgrant support. In some subcontractors. For a requirement to cases grantees must report income place a provision concerning records in after the period of grant support. certain kinds of contracts, see where there is such a requirement, the $ 600.436(i)(10).

retention period for the records per(b) Length of retention period. (1) Ex- taining to the earning of the income cept as otherwise provided, records starts from the end of the grantee's fismust be retained for three years from cal year in which the income is earned. the starting date specified in paragraph (4) Indirect cost rate proposals, cost al(c) of this section.

locations plans, etc. This paragraph ap(2) If any litigation, claim, negotia- plies to the following types of docution, audit or other action involving ments, and their supporting records: the records has been started before the indirect cost rate computations or proexpiration of the 3-year period, the posals, cost allocation plans, and any records must be retained until comple similar accounting computations of tion of the action and resolution of all the rate at which a particular group of issues which arise from it, or until the costs is chargeable (such as computer end of the regular 3-year period, which usage chargeback rates or composite ever is later.

fringe benefit rates). (3) To avoid duplicate recordkeeping, (i) If submitted for negotiation. If the awarding agencies may make special proposal, plan, or other computation is arrangements with grantees and sub required to be submitted to the Federal grantees to retain any records which Government (or to the grantee) to form are continuously needed for joint use. the basis for negotiation of the rate, The awarding agency will request then the 3-year retention period for its transfer of records to its custody when supporting records starts from the date it determines that the records possess of such submission. long-term retention value. When the (ii) If not submitted for negotiation. If records are transferred to or main the proposal, plan, or other computatained by the Federal agency, the 3 tion is not required to be submitted to year retention requirement is not ap- the Federal Government (or to the plicable to the grantee or subgrantee. grantee) for negotiation purposes, then

(c) Starting date of retention period(1) the 3-year retention period for the proGeneral. When grant support is contin- posal plan, or computation and its supued or renewed at annual or other in- porting records starts from end of the tervals, the retention period for the fiscal year (or other accounting period) records of each funding period starts on covered by the proposal, plan, or other the day the grantee or subgrantee sub- computation. mits to the awarding agency its single (d) Substitution of microfilm. Copies or last expenditure report for that pe- made by microfilming, photocopying, riod. However, if grant support is con- or similar methods may be substituted tinued or renewed quarterly, the reten- for the original records. tion period for each year's records (e) Access to records (1) Records of starts on the day the grantee submits grantees and subgrantees. The awarding its expenditure report for the last quar agency and the Comptroller General of ter of the Federal fiscal year. In all the United States, or any of their auother cases, the retention period starts thorized representatives, shall have the on the day the grantee submits its right of access to any pertinent books, final expenditure report. If an expendi- documents, papers, or other records of ture report has been waived, the reten- grantees and subgrantees which are tion period starts on the day the report pertinent to the grant, in order to would have been due.

make audits, examinations, excerpts, (2) Real property and equipment and transcripts. records. The retention period for real (2) Expiration of right of access. The property and equipment records starts rights of access in this section must

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