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(3) Deducted from the total project allowable cost in determining the net allowable costs on which the share of costs is based.
(c) When DOE authorizes the disposition of program income as described in paragraphs (b)(1) or (b)(2) of this section, program income in excess of any limits stipulated shall be used in accordance with paragraph (b)(3) of this section.
(d) In the event that the program regulations or the terms and conditions of the award do not specify how program income is to be used, paragraph (b)(3) of this section shall apply automatically to all projects or programs except research. For awards that support research, paragraph (b)(1) of this section shall apply automatically unless the award indicates another alternative in the terms and conditions, the recipient is subject to special award conditions, indicated in 8600.114, or the recipient is a commercial organization,
(e) Unless program regulations or the terms and conditions of the award provide otherwise, recipients shall have no obligation to the Federal Government regarding program income earned after the end of the project period.
(f) Unless program regulations or the terms and conditions of the award provide otherwise, costs incident to the generation of program income may be deducted from gross income to determine program income, provided these costs have not been charged to the award.
(g) Proceeds from the sale of property shall be handled in accordance with the requirements of the Property Standards (See $8 600.130 through 600.137).
(h) Unless program regulations or the terms and condition of the award provide otherwise, recipients shall have no obligation to the Federal Government with respect to program income earned from license fees and royalties for copyrighted material, patents, patent applications, trademarks, and inventions produced under an award. However, Patent and Trademark Amendments (35 U.S.C. Chapter 18) apply to inventions made under an experimental, developmental, or research award.
8600.125 Revision of budget and pro
gram plans. (a) The budget plan is the financial expression of the project or program as approved during the award process. It includes the sum of the Federal and non-Federal share when there are cost sharing requirements. It shall be related to performance for program evaluation purposes whenever appropriate.
(b) Recipients are required to report deviations from budget and program plans, and request prior approvals for budget and program plan revisions, in accordance with this section.
(c) For nonconstruction awards, recipients shall request prior approvals from the DOE for one or more of the following program or budget related reasons.
(1) Change in the scope or the objective of the project or program (even if there is no associated budget revision requiring prior written approval).
(2) Change in a key person specified in the application or award document.
(3) The absence for more than three months, or a 25 percent reduction in time devoted to the project, by the approved project director or principal investigator.
(4) The need for additional Federal funding.
(5) If required by program regulations, the transfer of amounts budgeted for indirect costs to absorb increases in direct costs, or vice versa.
(6) The inclusion, unless waived by program regulations or the terms and conditions of award, of costs that require prior approval in accordance with OMB Circular A-21, "Cost Principles for Institutions of Higher Education," OMB Circular A-122, “Cost Principles for Non-Profit Organizations," or 45 CFR part 74 Appendix E, “Principles for Determining Costs Applicable to Research
and Development under Grants and Contracts with Hospitals," or 48 CFR part 31, “Contract Cost Principles and Procedures," as applicable.
(7) The transfer of funds allotted for training allowances (direct payment to trainees) to other catégories of expense.
(8) Unless described in the application and funded in the approved awards, the subaward, transfer or contracting out of any work under an
award. This provision does not apply to search, prior to receipt of continuation the purchase of supplies, material, funding, preaward expenditures by reequipment or general support services. cipients are not subject to the limita
(d) No other prior approval require tion approval requirements of ments for specific items may be im $ 600.125(e)(1). Nevertheless, incurrence posed unless a deviation has been ap by the recipient does not impose any proved in accordance with $ 600.4.
obligation on DOE if a continuation (e) Except for requirements listed in award is not subsequently made, or if paragraphs (c)(1) and (c)(4) of this sec an award is made for a lesser amount tion, program regulations may waive than the recipient expected. cost-related and administrative prior (f) Program regulations may restrict written approvals required by this sub the transfer of funds among direct cost part and its Appendices. Such waivers categories or programs, functions and may include authorizing recipients to activities for awards in which DOE's do any one or more of the following. share of the project exceeds $100,000
(1) Incur pre-award costs 90 calendar and the cumulative amount of such days prior to award without prior ap transfers exceeds or is expected to exproval or more than 90 calendar days ceed 10 percent of the total budget as with the prior approval of DOE. All last approved by DOE. However, no pre-award costs are incurred at the re program regulation shall permit a cipient's risk (i.e., DOE is under no ob transfer that would cause any Federal ligation to reimburse such costs if for appropriation or part thereof to be any reason the recipient does not re used for purposes other than those conceive an award or if the award is less sistent with the original intent of the than anticipated and inadequate to appropriation. cover such costs).
(g) All other changes to nonconstruc(2) Initiate a one-time extension of tion budgets, except for the changes dethe expiration date of the final budget scribed in paragraph (j) of this section, period of the project of up to 12 months do not require prior approval. unless one or more of the following (h) For construction awards, recipiconditions apply.
ents shall request prior written ap(i) The terms and conditions of award proval promptly from the Contracting prohibit the extension.
Officer for budget revisions whenever (ii) The extension requires additional paragraph (h) (1), (2) or (3) of this secFederal funds.
tion apply. (iii) The extension involves any (1) The revision results from changes change in the approved objectives or in the scope or the objective of the scope of the project.
project or program. (iv) The extension is being exercised (2) The need arises for additional merely for the purpose of using unobli Federal funds to complete the project. gated balances. For one-time exten (3) A revision is desired which insions, the recipient must notify the volves specific costs for which prior DOE in writing with the supporting written approval requirements may be reasons and revised expiration date at imposed consistent with applicable least 10 days before the expiration date OMB cost principles listed in $600.127. specified in the award.
(i) Except in accordance with the de(3) Carry forward unobligated bal viation procedures in 600.4 or as may be ances to subsequent funding periods. provided for in program regulations, no
(4) For awards that support research, other prior approval requirements for unless the terms and conditions of specific items will be imposed by DOE. award provide otherwise, the prior ap (1) When DOE makes an award that proval requirements described in para provides support for both construction graph (e) of this section are automati and nonconstruction work, DOE may cally waived (i.e., recipients need not require the recipient to request prior obtain such prior approvals) unless one approval from DOE before making any of the conditions included in fund or budget transfers between the $600.125(e)(2) applies.
two types of work supported. (5) For continuation awards within a (k) For both construction and nonmultiple year project in support of re construction awards, recipients shall
notify DOE in writing promptly when- 7507) and revised OMB Circular A-133, ever the amount of Federal authorized “Audits of States, Local Governments, funds is expected to exceed the needs of and Non-Profit Organizations.” the recipient for the project period by (c) For-profit hospitals not covered more than $5000 or five percent of the by the audit provisions of revised OMB Federal award, whichever is greater. Circular A-133 shall be subject to the This notification shall not be required audit requirements of the Federal if an application for additional funding awarding agencies. is submitted for a continuation award. (d) The Contracting Officer may
(1) Requests for budget revisions may audit, or cause to be audited, awards to be made by letter.
commercial organizations whenever (m) Within 30 calendar days from the and in the degree of detail he/she deems date of receipt of the request for budg necessary. The Contracting Officer et revisions, DOE shall review the re shall rely on available audit reports in quest and notify the recipient whether determining the need for and scope of the budget revisions have been ap such audits. The commercial organizaproved. If the revision is still under tion has similar authority in auditing consideration at the end of 30 calendar subrecipients. days, DOE shall inform the recipient in (e) The Contracting Officer may writing of the date when the recipient audit, or cause to be audited, awards to may expect the decision.
individuals whenever and in the degree (n) DOE approval or disapproval of a
of detail he/she deems necessary. The request for a budget or project revision Contracting Officer shall rely on availshall be in writing and signed by a DOE able audit reports in determining the Contracting Officer.
need for and scope of such audits. (0) A request by a subrecipient for
[59 FR 53266, Oct. 21, 1994, as amended at 62 prior approval shall be addressed in
FR 45939, 45940, Aug. 29, 1997) writing to the recipient. The recipient shall promptly review such request and $ 600.127 Allowable costs. shall approve or disapprove the request (a) General. For each kind of recipiin writing within 30 days from the date
ent, there is a set of Federal principles of the recipient's request for the revi for determining allowable costs. Allowsion. A recipient shall not approve any ability of costs shall be determined in budget or project revision which is in accordance with the cost principles apconsistent with the purpose or terms plicable to the entity incurring the and conditions of the DOE award. If the costs. Thus, allowability of costs inrevision requested by the subrecipient curred by State, local or federally-recwould result in a change to the recipi ognized Indian tribal governments is ent's approved budget or approved determined in accordance with the proproject which requires DOE prior ap visions of OMB Circular A-87, “Cost proval, the recipient shall obtain DOE Principles for State and Local Governapproval before approving such revi- ments.” The allowability of costs insion.
curred by non-profit organizations is
determined in accordance with the pro$600.126 Non-Federal audits.
visions of OMB Circular A-122, “Cost (a) Recipients and subrecipients that Principles for Non-Profit Organizaare institutions of higher education or tions." The allowability of costs inother non-profit organizations (includ curred by institutions of higher eduing hospitals) shall be subject to the cation is determined in accordance audit requirements contained in the with the provisions of OMB Circular ASingle Audit Act Amendments of 1996 21, “Cost Principles for Educational In(31 U.S.C. 7501-7507) and revised OMB stitutions.” The allowability of costs Circular A-133, “Audits of States, incurred by hospitals is determined in Local Governments, and Non-Profit Or accordance with the provisions of Apganizations."
pendix E of 45 CFR part 74, "Principles (b) State and local governments shall for Determining Costs Applicable to be subject to the audit requirements Research and Development Under contained in the Single Audit Act Grants and Contracts with Hospitals." Amendments of 1996 (31 U.S.C. 7501 The allowability of costs incurred by
commercial organizations and those nizant agency or from DOE, as appronon-profit organizations listed in At- priate. tachment C to Circular A-122 is deter (3) If a subaward under an award or mined in accordance with the provi- subaward provides for the payment of sions of the Federal Acquisition Regu indirect costs, the recipient or sublation (FAR) at 48 CFR part 31.
recipient shall be responsible for nego(b) Indirect costs. Unless restricted by tiating appropriate indirect costs, Federal statute or program rule, DOE using the cost principles applicable to shall provide for the reimbursement of the subrecipient or contractor, unless appropriate indirect costs.
the subrecipient or contractor has ne(1) DOE shall include an amount for gotiated an applicable rate directly indirect costs in an award only if the with DOE or another Federal departapplicant requests reimbursement of ment or agency. DOE may review and such costs and
audit the procedures a recipient or sub(i) Submits evidence that a cognizant recipient uses in conducting indirect Federal agency has been assigned to es
cost negotiations. tablish indirect cost rates for the appli
(c) Fee or profit. No increment above cant and indicates or provides evidence
cost may be paid to a recipient or subthat
recipient under DOE award or
subaward, except for SBIR recipients (A) A current agreement containing an applicable approved indirect cost
as provided in $600.181(d)(3). A fee or rate(s) covering all or part of the budg
profit may be paid to a contractor pro
viding goods or services under a conet period for which DOE may provide funding has been established; or
tract with a recipient or subrecipient. (B) An indirect cost proposal has $ 600.128 Period of availability of been submitted to the cognizant agen funds. cy in order to establish an applicable approved indirect cost rate(s) covering recipient may charge to the award only
Where a funding period is specified, a all or part of the budget period for
allowable costs resulting from obligawhich DOE may provide funding; or tions incurred during the funding pe
(C) An indirect cost proposal cov riod and any pre-award costs authorering all or part of the budget period
ized by DOE. and applicable to the activities for which DOE may provide funding will be
Property Standards submitted to the cognizant agency for approval no later than three months $ 600.130 Purpose of property standafter the beginning date of the initial
ards. budget period of the DOE award or, for Sections 600.131 through 600.137 set subsequent budget periods, in accord forth uniform standards governing ance with any schedule established by management and disposition of propthe cognizant agency; or
erty furnished by the Federal Govern(ii) If not assigned to a cognizant ment or whose cost was charged to a agency, the applicant includes, in the project supported by a Federal award. application, data that is current, com Recipients shall observe these standplete, accurate, and sufficient to allow ards under awards and shall not impose the Contracting Officer to determine a additional requirements, unless specifirate(s) for indirect costs. If the total cally required by Federal statute or approved budget will not exceed program regulations. The recipient $100,000 or if the amount requested for may use its own property management indirect costs does not exceed $5,000, standards and procedures provided it DOE may waive the requirement for observes the provisions of $9600.131 negotiation of a rate and, in lieu there through 600.137. of, provide a reasonable allowance for such costs.
$ 600.131 Insurance coverage. (2) Indirect cost proposals shall be Recipients shall, at a minimum, proprepared and submitted in accordance vide the equivalent insurance coverage with the applicable Federal cost prin for real property and equipment acciples and instructions from the cog quired with DOE funds as provided to
property owned by the recipient. Federally-owned property need not be insured unless required by the terms and conditions of the award.
$600.132 Real property.
Unless otherwise provided by statute or program regulations, the requirements concerning the use and disposition of real property acquired in whole or in part under awards are as follows.
(a) Title to real property shall vest in the recipient subject to the condition that the recipient shall use the real property for the authorized purpose of the project as long as it is needed and shall not encumb the property without approval of DOE.
(b) The recipient shall obtain written approval by DOE for the use of real property in other federally-sponsored projects when the recipient determines that the property is no longer needed for the purpose of the original project. Use in other projects shall be limited to those under federally-sponsored projects (i.e., awards) or programs that have purposes consistent with those authorized for support by DOE.
(c) When the real property is no longer needed as provided in paragraphs (a) and (b) of this section, the recipient shall request disposition instructions from DOE or its successor Federal awarding agency. DOE will give one or more of the following disposition instructions.
(1) The recipient may be permitted to retain title without further obligation to the Federal Government after it compensates the Federal Government for that percentage of the current fair market value of the property attributable to the Federal participation in the project.
(2) The recipient may be directed to sell the property under guidelines provided by DOE and pay the Federal Government for that percentage of the current fair market value of the property attributable to the Federal participation in the project (after deducting actual and reasonable selling and fix-up expenses, if any, from the sales proceeds). When the recipient is authorized or required to sell the property, proper sales procedures shall be established that provide for competition to
the extent practicable and result in the highest possible return.
(3) The recipient may be directed to transfer title to the property to the Federal Government or to an eligible third party provided that, in such cases, the recipient shall be entitled to compensation for its attributable percentage of the current fair market value of the property. $ 600.133 Federally-owned and exempt
property. (a) Federally-owned property.
(1) Title to federally-owned property remains vested in the Federal Government. Recipients shall submit annually an inventory listing of federally-owned property in their custody to DOE. Upon completion of the award or when the property is no longer needed, the recipient shall report the property to DOE for further Federal agency utilization.
(2) If DOE has no further need for the property, it shall be declared excess and reported to the General Services Administration, unless DOE has statutory authority to dispose of the property by alternative methods (e.g., the authority provided by the Federal Technology Transfer Act (15 U.S.C. 3710 (i)) to donate research equipment to educational and non-profit organizations in accordance with E.O. 12821, "Improving Mathematics and Science Education in Support of the National Education Goals.") Appropriate instructions shall be issued to the recipient by DOE.
(b) Exempt property. When statutory authority exists, DOE may vest title to property acquired with Federal funds in the recipient without further obligation to the Federal Government and under conditions DOE considers appropriate. For example, under 31 U.S.C. 6306, DOE may so vest title to tangible personal property under a grant or cooperative agreement for basic or applied research in a nonprofit institution of higher education or in a nonprofit organization whose primary purpose is conducting scientific research. Such property is "exempt property.” Program regulations or the terms and conditions of award may establish provisions for vesting title to exempt property. Should such conditions not