Page images

8 601.5 Derivative classification.

cial who authorized the original classi. Distinct from "original" classifica

fication, if that official is still serving tion is the determination that infor

in the same position; the originator's mation is in substance the same as in

successor; a supervisory official of formation currently classified, because

either; or officials delegated such auof incorporating, paraphrasing, restat thority in writing by the Director. ing or generating in new form infor (c) The Director shall conduct intermation that is already classified, and nal systematic review programs for marking the newly developed material classified information originated by consistent with the marking of the the Foundation contained in records source information. Persons who only determined by the Archivist to be perreproduce, extract, or summarize clas manently valuable but that have not sified information, or who only apply been accessioned into the National Arclassification markings derived from chives of the United States. source material or as directed by a (d) The Archivist of the United classification guide, need not possess States shall, in accordance with proceoriginal classification authority.

dures and timeframes prescribed in (a) If a person who applies derivative

the Information Security Oversight classification markings believes that Office's directives implementing E.O. the paraphrasing, restating, or sum

12356, systematically review for demarizing of classified information has

classification or downgrading, classichanged the level of or removed the

fied records accessioned into the Nabasis for classification, that person

tional Archives of the United States. must consult for a determination an

Such information shall be reviewed by appropriate official of the originating

the Archivist for declassification or agency or office of origin who has the

downgrading in accordance with sysauthority to upgrade, downgrade, or

tematic review guidelines that shall be declassify the information.

provided by the head of the agency (b) The person who applies deriva

that originated the information, or in tive classification markings shall ob

the case of foreign government inforserve and respect original classifica

mation, by the Director of Information decisions; and carry forward to

tion Security Oversight Office in conany newly created documents any as

sultation with interested agency signed authorized markings. The de

heads. classification date or event that provides the longest period of classifica

8 601.7 Mandatory declassification review. tion shall be used for documents classified on the basis of multiple sources.

(a) The Division of Administrative

Services is hereby designated as the 8 601.6 Downgrading and declassification. office to which members of the public

Executive Order 12356 prescribes a or Departments may direct requests uniform system for classifying, declas for mandatory review for declassificasifying, and safeguarding national se tion under this provision. In the case curity information.

of documents originally classified by (a) Information shall be declassified the Foundation, this office shall, in or downgraded as soon as national se turn, assign the request to the approcurity considerations permit. The Na priate office for action within 60 days. tional Science Foundation shall co In each instance, receipt of the reordinate their review of classified in quest will be acknowledged in writing formation with other agencies that immediately by the office that has have a direct interests in the subject been assigned action. A request for matter. Information that continues to classification review must reasonably meet the classification requirements describe the document. prescribed by Section 1.3 despite the (b) Whenever a request is deficient passage of time will continue to be in its description of the record sought, protected in accordance with Execu the requester should be asked to protive Order 12356.

vide additional identifying informa(b) Foundation documents may be tion to the extent possible. Whenever declassified or downgraded by the offi a request does not reasonably describe

[ocr errors][ocr errors][ocr errors][merged small][ocr errors][merged small][ocr errors]

the information sought, the requester waived for persons who are engaged in
shall be notified that unless additional historical research projects, or previ-
information is provided or the scope of ously have occupied policymaking po-
the request is narrowed, no further sitions to which they were appointed
action will be undertaken. Upon a de by the President, provided they exe-
termination that the requested materi cute written agreements to safeguard
al no longer warrants classification, it the information and written consent
shall be declassified and made prompt to the Foundation's review of their
ly available to the requester, if not notes and manuscripts solely for the
otherwise exempt from disclosure purpose of determining that no classi-
under 5 U.S.C. 552(b) (Freedom of In fied information is disclosed. A precon-
formation Act) or other provision of dition to any such access is the favor-
law. If the information may not be re able completion of an appropriate in-
leased in whole or in part the request. vestigative inquiry.
er shall be given a brief statement as
to the reasons for denial, a notice of
the right to appeal the determination

PART 602-UNIFORM ADMINISTRAof the Classification Review Commit

TIVE REQUIREMENTS FOR GRANTS tee, and a notice that such an appeal

AND COOPERATIVE AGREEMENTS must be filed with the Foundation within 60 days in order to be consid


(c) When the request relates to a
document given derivative classifica-

Subpart A-General
tion by the Foundation or originated

Sec. by another agency, the request and

602.1 Purpose and scope of this part. the document will be forwarded to the

602.2 Scope of subpart. originator of the source document,

602.3 Definitions. and the requestor notified of such re

602.4 Applicability.

602.5 Effect on other issuances.
(d) Employees presently cleared for 602.6 Additions and exceptions.
access to classified information are en-
couraged to challenge classification in Subpart B-Pre-Award Requirements
cases where there is reasonable cause
to believe that information is classi-

602.10 Forms for applying for grants.

602.11 State plans. fied unnecessarily, improperly, or for

602.12 Special grant or subgrant conditions an inappropriate period of time. Such

for "high-risk” grantees.
challenges should be brought to the
attention of the Security Officer (In-

Subpart C-Post-Award Requirements
formation) who will act thereon
within 30 days, informing the chal-

FINANCIAL ADMINISTRATION lenger of actions taken. Requests for

602.20 Standards for financial manageconfidentiality will be honored.

ment systems.

602.21 Payment.
8 601.8 Access to classified materials.

602.22 Allowable costs.
No person may be given access to 602.23 Period of availability of funds.
classified information unless that 602.24 Matching or cost sharing.
person has been determined to be 602.25 Program income.
trustworthy and unless access is essen-

602.26 Non-Federal audit.
tial to the accomplishment of lawful

CHANGES, PROPERTY, AND SUBAWARDS and authorized Government purposes.

602.30 Changes. 8 601.9 Access by historical researchers

602.31 Real property. and former Presidential appointees.

602.32 Equipment.

602.33 Supplies. The requirement in $ 601.8 that

602.34 Copyrights. access to classified information may be

602.35 Subawards to debarred and susgranted only as is essential to the ac

pended parties. complishment of lawful and author 602.36 Procurement. ized Government purposes may be 602.37 Subgrants.

info Form

[merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small]


ENFORCEMENT 602.40 Monitoring and reporting program

performance. 602.41 Financial reporting. 602.42 Retention and access requirements

for records. 602.43 Enforcement. 602.44 Termination for convenience.

Subpart D-After-the-Grant Requirements

602.50 Closeout. 602.51 Later disallowances and adjust

ments. 602.52 Collection of amounts due.

Subpart E-Entitlements (Roservod)

AUTHORITY: 42 U.S.C. 1870(a).

SOURCE: 53 FR 8080, 8087, Mar. 11, 1988, unless otherwise noted.

EDITORIAL NOTE: For additional information, see related documents published at 49 FR 24958, June 18, 1984, 52 FR 20178, May 29, 1987, and 53 FR 8028, March 11, 1988.

Subpart A-General

8 602.1 Purpose and scope of this part.

This part establishes uniform administrative rules for Federal grants and cooperative agreements and subawards to State, local and Indian tribal governments.

(1) Earnings during a given period from services performed by the grantee and goods and other tangible property delivered to purchasers, and

(2) Amounts becoming owed to the grantee for which no current services or performance is required by the grantee.

Acquisition cost” of an item of pur. chased equipment means the net in. voice unit price of the property includ. ing the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired. Other charges such as the cost of installation, transportation, taxes, duty or protective in-transit in. surance, shall be included or excluded from the unit acquisition cost in accordance with the grantee's regular accounting practices.

"Administrative" requirements mean those matters common to grants in general, such as financial management, kinds and frequency of reports, and retention of records. These are distinguished from "programmatic" requirements, which concern matters that can be treated only on a programby-program or grant-by-grant basis, such as kinds of activities that can be supported by grants under a particular program.

Awarding agency" means (1) with respect to a grant, the Federal agency, and (2) with respect to a subgrant, the party that awarded the subgrant.

Cash contributions" means the grantee's cash outlay, including the outlay of money contributed to the grantee or subgrantee by other public agencies and institutions, and private organizations and individuals. When authorized by Federal legislation, Federal funds received from other assistance agreements may be considered as grantee or subgrantee cash contributions.

Contract" means (except as used in the definitions for grant” and “subgrant" in this section and except where qualified by “Federal") a procurement contract under a grant or subgrant, and means à procurement subcontract under a contract.

Cost sharing or matching" means the value of the third party in-kind contributions and the portion of the

[ocr errors]

8 602.2 Scope of subpart.

This subpart contains general rules pertaining to this part and procedures for control of exceptions from this part.

8 602.3 Definitions.

As used in this part:

Accrued expenditures" mean the charges incurred by the grantee during a given period requiring the provision of funds for:

(1) Goods and other tangible property received;

(2) Services performed by employees, contractors, subgrantees, subcontractors, and other payees; and

(3) Other amounts becoming owed under programs for which no current services or performance is required, such as annuities, insurance claims, and other benefit payments.

"Accrued income" means the sum of:

[ocr errors]
[ocr errors][merged small][ocr errors][merged small][merged small][ocr errors][merged small][merged small]

costs of a federally assisted project or component of the entity is designated program not borne by the Federal in the grant award document. Government.

Local government" means a county, “Cost-type contractmeans a con municipality, city, town, township, tract or subcontract under a grant in local public authority (including any which the contractor or subcontractor

public and Indian housing agency is paid on the basis of the costs it under the United States Housing Act incurs, with or without a fee.

of 1937) school district, special district, "Equipmentmeans tangible, nonex

intrastate district, council of governpendable, personal property having a

ments (whether or not incorporated as Useful life of more than one year and

à nonprofit corporation under state an acquisition cost of $5,000 or more

law), any other regional or interstate per unit. A grantee may use its own

government entity, or any agency or definition of equipment provided that

instrumentality of a local government. such definition would at least include

"Obligations" means the amounts of all equipment defined above.

orders placed, contracts and subgrants

awarded, goods and services received, Expenditure reportmeans: (1) For

and similar transactions during a given nonconstruction grants, the SF-269 "Financial Status Report” (or other

period that will require payment by

the grantee during the same or a equivalent report); (2) for construction

future period. grants, the SF-271 "Outlay Report

OMBmeans the United States and Request for Reimbursement” (or

Office of Management and Budget. other equivalent report).

Outlays" (expenditures) mean "Federally recognized Indian tribal

charges made to the project or progovernmentmeans the governing

gram. They may be reported on a cash body or a governmental agency of any

or accrual basis. For reports prepared Indian tribe, band, nation, or other or

on a cash basis, outlays are the sum of ganized group or community (includ

actual cash disbursement for direct ing any Native village as defined in

charges for goods and services, the section 3 of the Alaska Native Claims

amount of indirect expense incurred, Settlement Act, 85 Stat 688) certified

the value of in-kind contributions apby the Secretary of the Interior as eli

plied, and the amount of cash adgible for the special programs and

vances and payments made to contracservices provided by him through the

tors and subgrantees. For reports preBureau of Indian Affairs.

pared on an accrued expenditure basis, Governmentmeans a State or

outlays are the sum of actual cash dislocal government or a federally recog bursements, the amount of indirect nized Indian tribal government.

expense incurred, the value of inkind G nt means an award of finan contributions applied, and the new incial assistance, including cooperative crease (or decrease) in the amounts agreements, in the form of money, or owed by the grantee for goods and property in lieu of money, by the Fed other property received, for services eral Government to an eligible grant performed by employees, contractors, ee. The term does not include techni

subgrantees, subcontractors, and other cal assistance which provides services payees, and other amounts becoming instead of money, or other assistance owed under programs for which no in the form of revenue sharing, loans, current services or performance are reloan guarantees, interest subsidies, in quired, such as annuities, insurance surance, or direct appropriations. Also, claims, and other benefit payments. the term does not include assistance, Percentage of completion method' such as a fellowship or other lump refers to a system under which paysuna award, which the grantee is not ments are made for construction work required to account for.

according to the percentage of comple“Granteemeans the government to tion of the work, rather than to the which a grant is awarded and which is grantee's cost incurred. accountable for the use of the funds “Prior approvalmeans documentaprovided. The grantee is the entire tion evidencing consent prior to incurlegal entity even if only a particular ring specific cost.

[merged small][merged small][merged small][ocr errors][merged small][merged small][ocr errors][merged small]

Real property" means land, includ Termination" means permanent ing land improvements, structures and withdrawal of the authority to obliappurtenances thereto, excluding mov gate previously-awarded grant funds able machinery and equipment.

before that authority would otherwise "Share", when referring to the expire. It also means the voluntary reawarding agency's portion of real linquishment of that authority by the property, equipment or supplies, grantee or subgrantee. “Termination" means the same percentage as the does not include: (1) Withdrawal of awarding agency's portion of the ac funds awarded on the basis of the quiring party's total costs under the

grantee's underestimate of the unobli. grant to which the acquisition costs

gated balance in a prior period; (2) under the grant to which the acquisi

Withdrawal of the unobligated bal. tion cost of the property was charged.

ance as of the expiration of a grant; Only costs are to be counted-not the

(3) Refusal to extend a grant or award value of third-party in-kind contribu

additional funds, to make a competing tions. “State" means any of the several

or noncompeting continuation, renewStates of the United States, the Dis

al, extension, or supplemental award; trict of Columbia, the Commonwealth

or (4) voiding of a grant upon determiof Puerto Rico, any territory or pos

nation that the award was obtained session of the United States, or any

fraudulently, or was otherwise illegal agency or instrumentality of a State

or invalid from inception. exclusive of local governments. The Terms of a grant or subgrant” mean term does not include any public and

all requirements of the grant or subIndian housing agency under United grant, whether in statute, regulations, States Housing Act of 1937.

or the award document. Subgrant" means an award of fi Third party in-kind contributions" nancial assistance in the form of mean property or services which benemoney, or property in lieu of money, fit a federally assisted project or promade under a grant by a grantee to an gram and which are contributed by eligible subgrantee. The term includes non-Federal third parties without financial assistance when provided by charge to the grantee, or a cost-type contractual legal agreement, but does contractor under the grant agreement. not include procurement purchases, Unliquidated obligations" for renor does it include any form of assist

ports prepared on a cash basis mean ance which is excluded from the defi.

the amount of obligations incurred by nition of “grant" in this part.

the grantee that has not been paid. "Subgranteemeans the government

For reports prepared on an accrued or other legal entity to which a sub

expenditure basis, they represent the grant is awarded and which is account

amount of obligations incurred by the able to the grantee for the use of the

grantee for which an outlay has not funds provided.

been recorded. “Suppliesmeans all tangible personal property other than "equip

Unobligated balancemeans the ment as defined in this part.

portion of the funds authorized by the "Suspension" means depending on

Federal agency that has not been oblithe context, either (1) temporary

gated by the grantee and is deterwithdrawal of the authority to obli

mined by deducting the cumulative obgate grant funds pending corrective

ligations from the cumulative funds action by the grantee or subgrantee or

authorized. a decision to terminate the grant, or (2) an action taken by a suspending of

8 602.4 Applicability. ficial in accordance with agency regu (a) General. Subparts A through D lations implementing E.O. 12549 to im. of this part apply to all grants and mediately exclude a person from par subgrants to governments, except ticipating in grant transactions for a where inconsistent with Federal statperiod, pending completion of an in utes or with regulations authorized in vestigation and such legal or debar accordance with the exception proviment proceedings as may ensue.

sion of $ 602.6, or:

« PreviousContinue »