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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.

Contractmeans (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 a procurement subcontract under a contract.

Cost sharing or matchingmeans the value of the third party in-kind contributions and the portion of the costs of a federally assisted project or program not borne by the Federal Government.

Cost-type contract" means a contract or subcontract under a grant in which the contractor or subcontractor is paid on the basis of the costs it incurs, with or without a fee.

Equipmentmeans tangible, nonexpendable, personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. A grantee may use its own definition of equipment provided that such definition would at least include all equipment defined above.

Expenditure reportmeans: (1) For nonconstruction grants, the SF-269 “Financial Status Report” (or other equivalent report); (2) for construction grants, the SF-271 “Outlay Report and Request for Reimbursement” (or other equivalent report).

Federally recognized Indian tribal governmentmeans the governing body or a governmental agency of any Indian tribe, band, nation, or other organized group or community (including any Native village as defined in section 3 of the Alaska Native Claims Settlement Act, 85 Stat 688) certified by the Secretary of the Interior as eligible for the special programs and services provided by him through the Bureau of Indian Affairs.

Governmentmeans a State or local government or a federally recognized Indian tribal government.

Grantmeans an award of financial assistance, including cooperative agreements, in the form of money, or property in lieu of money, by the Federal Government to an eligible grantee. The term does not include techni. cal assistance which provides services instead of money, or other assistance in the form of revenue sharing, loans, loan guarantees, interest subsidies, insurance, or direct appropriations. Also, the term does not include assistance, such as a fellowship or other lump sum award, which the grantee is not required to account 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 governmentmeans 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 future period.

OMBmeans 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



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charge to the grantee, or a cost-type not include procurement purchases, ports prepared on a cash basis mean

For reports prepared on an accrued

contributions applied, and the new in grant is awarded and which is account

tee for crease (or decrease) in the amounts able to the grantee for the use of the

s recorded owed by the grantee for goods and funds provided. other property received, for services


Supplies" means all tangible perperformed by employees, contractors, sonal property other than “equip- lagene subgrantees, subcontractors, and other ment” as defined in this part. payees, and other amounts becoming

od by the

Suspension" means depending on owed under programs for which no

zdby dedi

the context, either (1) temporary current services or performance are re

gins fror

withdrawal of the authority to obliquired, such as annuities, insurance gate grant funds pending corrective claims, and other benefit payments. action by the grantee or subgrantee or "Percentage of completion method

31 Appli

a decision to terminate the grant, or refers to a system under which pay (2) an action taken by a suspending of

General ments are made for construction work ficial in accordance with agency regu.

s part according to the percentage of comple lations implementing E.O. 12549 to im. spantes to tion of the work, rather than to the mediately exclude a person from pargrantee's cost incurred.

ticipating in grant transactions for & Prior approval" means documenta period, pending completion of an intion evidencing consent prior to incur vestigation and such legal or debarring specific cost.

ment proceedings as may ensue. Real propertymeans land, includ Termination"

means permanent mal ins ing land improvements, structures and withdrawal of the authority to obli- sa State appurtenances 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 At Hea property, equipment supplies,

grantee or subgrantee. “Termination" means the same percentage as the does not include: (1) Withdrawal of the Sea 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 unobligrant to which the acquisition costs gated balance in a prior period; (2) Proe under the grant to which the acquisi

withdrawal of the unobligated balance tion cost of the property was charged.

as of the expiration of a grant; (3) reOnly costs are to be counted not the

fusal to extend a grant or award addivalue of third-party in-kind contribu

tional funds, to make a competing of tions.

noncompeting continuation, renewal

, “State" means any of the several

extension, or supplemental award; or States of the United States, the Dis

(4) voiding of a grant upon determinatrict of Columbia, the Commonwealth

tion that the award was obtained of Puerto Rico, any territory or pos

fraudulently, or was otherwise illegal de 19 session of the United States, or any

or invalid from inception. agency or instrumentality of a State 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 sub

grant, whether in statute, regulations, Indian housing agency under United

or the award document. States Housing Act of 1937.

Third party in-kind contributions" Subgrantmeans an award of financial assistance in the form of

mean property or services which bene

fit a federally assisted project or promoney, or property in lieu of money, made under a grant by a grantee to an

gram and which are contributed by

non-Federal third parties without eligible subgrantee. The term includes financial assistance when provided by

contractor under the grant agreement. contractual legal agreement, but does

Unliquidated obligations" for re nor does it include any form of assist

the amount of obligations incurred by ance which is excluded from the definition of “grant" in this part.

the grantee that has not been paid. Subgrantee" means the government

expenditure basis, they represent the or other legal entity to which a sub

amount of obligations incurred by the


grantee for which an outlay has not been recorded.

Unobligated balancemeans the portion of the funds authorized by the Federal agency that has not been obligated by the grantee and is determined by deducting the cumulative obligations from the cumulative funds authorized.

(iv) Aid to the Aged, Blind, and Disabled (Titles I, X, XIV, and XVIAABD of the Act); and

(V) Medical Assistance (Medicaid) (Title XIX of the Act) not including the State Medicaid Fraud Control program authorized by section 1903(a)(6)(B).

(4) Entitlement grants under the following programs of The National School Lunch Act:

(i) School Lunch (section 4 of the


§ 1157.4 Applicability.

(a) General. Subparts A through D of this part apply to all grants and subgrants to governments, except where inconsistent with Federal statutes or with regulations authorized in accordance with the exception provision of $ 1157.6, or:

(1) Grants and subgrants to State and local institutions of higher education or State and local hospitals.

(2) The block grants authorized by the Omnibus Budget Reconciliation Act of 1981 (Community Services; Preventive Health and Health Services; Alcohol, Drug Abuse, and Mental Health Services; Maternal and Child Health Services; Social Services; LowIncome Home Energy Assistance; States' Program of Community Development Block Grants for Small Cities; and Elementary and Secondary Education other than programs administered by the Secretary of Education under Title V, Subtitle D, Chapter 2, Section 583—the Secretary's discretionary grant program) and Titles IIII of the Job Training Partnership Act of 1982 and under the Public Health Services Act (Section 1921), Alcohol and Drug Abuse Treatment and Rehabilitation Block Grant and Part C of Title V, Mental Health Service for the Homeless Block Grant).

(3) Entitlement grants to carry out the following programs of the Social Security Act:

(i) Aid to Needy Families with Dependent Children (Title IV-A of the Act, not including the Work Incentive Program (WIN) authorized by section 402(a)19(G); HHS grants for WIN are subject to this part);

(ii) Child Support Enforcement and Establishment of Paternity (Title IVD of the Act);

(iii) Foster Care and Adoption Assistance (Title IV-E 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), and

(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 2411(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

$ 1157.4(a) (3) through (8) are subject to Subpart E.

8 1157.5 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 part are superseded, except to the extent they are required by statute, or authorized in accordance with the exception provision in § 1157.6.

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

(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 addi. tional 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.

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8 1157.10 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.

8 1157.11 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 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 provi (1) The nature of the special condisions,

tions/restrictions; (2) Repeat the assurance language in (2) The reason(s) for imposing them; the statutes or regulations, or

(3) The corrective actions which (3) Develop its own language to the must be taken before they will be reextent permitted by law.

moved and the time allowed for com(d) Amendments. A State will amend pleting the corrective actions and a plan whenever necessary to reflect: (4) The method of requesting recon(1) New or revised Federal statutes or sideration of the conditions/restricregulations or (2) a material change in tions imposed. any State law, organization, policy, or State agency operation. The State will

Subpart C-Post-Award Requirements obtain approval for the amendment a and its effective date but need submit

FINANCIAL ADMINISTRATION (for approval only the amended portions of the plan.

8 1157.20 Standards for financial manage

ment systems. 8 1157.12 Special grant or subgrant conditions for “high-risk” grantees.

(a) A State must expand and ac

count for grant funds in accordance (a) A grantee or subgrantee may be with State laws and procedures for exconsidered "high risk” if an awarding

pending and accounting for its own agency determines that a grantee or

funds. Fiscal control and accounting subgrantee:

procedures of the State, as well as its (1) Has a history of unsatisfactory subgrantees and cost-type contractors, performance, or

must be sufficient to(2) Is not financially stable, or

(1) Permit preparation of reports re(3) Has a management system which quired by this part and the statutes does not meet the management stand authorizing the grant, and ards set forth in this part, or

(2) Permit the tracing of funds to a (4) Has not conformed to terms and level of expenditures adequate to esconditions of previous awards, or

tablish that such funds have not been (5) Is otherwise not responsible; and used in violation of the restrictions if the awarding agency determines and prohibitions of applicable statA that an award will be made, special utes. Rear conditions and/or restrictions shall (b) The financial management sys

correspond to the high risk condition tems of other grantees and subgrand and shall be included in the award.

tees must meet the following stand(b) Special conditions or restrictions ards: may include:

(1) Financial reporting. Accurate, (1) Payment on a reimbursement

current, and complete disclosure of basis;

the financial results of financially as(2) Withholding authority to pro sisted activities must be made in acceed to the next phase until receipt of cordance with the financial reporting evidence of acceptable performance requirements of the grant or subgrant. within a given funding period;

(2) Accounting records. Grantees (3) Requiring additional, more de and subgrantees must maintain tailed financial reports;

records which adequately identify the (4) Additional project monitoring; source and application of funds pro

(5) Requiring the grante or subgran vided for financially-assisted activities. tee to obtain technical or management These records must contain informaassistance; or

tion pertaining to grant or subgrant (6) Establishing additional prior ap awards and authorizations, obligaprovals.

tions, unobligated balances, assets, li(c) If an awarding agency decides to abilities, outlays or expenditures, and impose such conditions, the awarding income. official will notify the grantee or sub (3) Internal control. Effective congrantee as early as possible, in writing, trol and accountability must be mainof:

tained for all grant and subgrant cash,

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