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8600.123 Cost sharing or matching. not found in the recipient organization, (a) All cost sharing or matching con
rates shall be consistent with those tributions, including cash and third
paid for similar work in the labor marparty in-kind, shall meet all of the fol
ket in which the recipient competes for lowing criteria.
the kind of services involved. In either (1) Are verifiable from the recipient's
case, paid fringe benefits that are rearecords.
sonable, allowable, and allocable may (2) Are not included as contributions
be included in the valuation. for any other federally-assisted project
(e) When an employer other than the or program.
recipient furnishes the services of an (3) Are necessary and reasonable for
employee, these services shall be valproper and efficient accomplishment of
ued at the employee's regular rate of project or program objectives.
pay (plus an amount of fringe benefits (4) Are allowable under the applica that are reasonable, allowable, and alble cost principles.
locable, but exclusive of overhead (5) Are not paid by the Federal Gov costs), provided these services are in ernment under another award, except
the same skill for which the employee where authorized by Federal statute to is normally paid. be used for cost sharing or matching. (1) Donated supplies may include
(6) Are provided for in the approved such items as office supplies, laborabudget.
tory supplies or workshop and class(7) Conform to other provisions of room supplies. Value assessed to dothis subpart, as applicable.
nated supplies included in the cost (b) Unrecovered indirect costs may be sharing or matching share shall be reaincluded as part of cost sharing or sonable and shall not exceed the fair matching.
market value of the property at the (c) Values for recipient contributions time of the donation. of services and property shall be estab- (g) The method used for determining lished in accordance with the applica- cost sharing or matching for donated ble cost principles. If DOE authorizes equipment, buildings and land for recipients to donate buildings or land which title passes to the recipient may for construction facilities acquisition differ according to the purpose of the projects or long-term use, the value of award, if either paragraph (g)(1) or (2) the donated property for cost sharing of this section apply. or matching shall be the lesser of ei (1) If the purpose of the award is to . ther paragraph (c)(1) or (2) of this sec- assist the recipient in the acquisition tion.
of equipment, buildings or land, the (1) The certified value of the remain total value of the donated property ing life of the property recorded in the may be claimed as cost sharing or recipient's accounting records at the matching. time of donation.
(2) If the purpose of the award is to (2) The current fair market value. support activities that require the use However, when there is sufficient jus- of equipment, buildings or land, nortification, DOE may approve the use of mally only depreciation or use charges the current fair market value of the for equipment and buildings may be donated property, even if it exceeds the made. However, the full value of equip certified value at the time of donation ment or other capital assets and fair to the project.
rental charges for land may be allowed, (d) Volunteer services furnished by provided that DOE has approved the professional and technical personnel, charges. consultants, and other skilled and un- (h) The value of donated property skilled labor may be counted as cost shall be determined in accordance with sharing or matching if the service is an the usual accounting policies of the reintegral and necessary part of an ap- cipient, with the following qualificaproved project or program. Rates for tions. volunteer services shall be consistent (1) The value of donated land and with those paid for similar work in the buildings shall not exceed its fair marrecipient's organization. In those in- ket value at the time of donation to stances in which the required skills are the recipient as established by an inde
pendent appraiser (e.g., certified real property appraiser or General Services Administration representative) and certified by a responsible official of the recipient.
(2) The value of donated equipment shall not exceed the fair market value of equipment of the same age and condition at the time of donation.
(3) The value of donated space shall not exceed the fair rental value of comparable space as established by an inde pendent appraisal of comparable space and facilities in a privately-owned building in the same locality.
(4) The value of loaned equipment shall not exceed its fair rental value.
(i) The following requirements per tain to the recipient's supporting records for in-kind contributions from third parties.
(1) Volunteer services shall be documented and, to the extent feasible, supported by the same methods used by the recipient for its own employees.
(2) The basis for determining the valuation for personal service, material, equipment, buildings and land shall be documented.
(j) DOE shall specify in the solicitation or in the program rule, if any, any cost sharing requirement. The award document shall be specific as to whether the cost sharing is based on a minimum amount for the recipient or on a percentage of total costs.
(k) If DOE requires that a recipient provide cost sharing which is not required by statute or which exceeds a statutory minimum, DOE shall state in the program rule or solicitation the reasons for requiring such cost sharing, recommended or required levels of cost sharing, and the circumstances under which the requirement for cost sharing may be waived or adjusted during any negotiation
(1) Whenever DOE negotiates the amount of cost sharing, DOE may take into account such factors as the use of program income (see $600.124), patent rights, and rights in data. Foregone fee or profit shall not be considered in establishing the extent of cost sharing.
nanced in whole or in part with DOE funds.
(b) Except as provided in paragraph (h) of this section, program income earned during the project period shall be retained by the recipient and, in accordance with program regulations or the terms and conditions of the award, shall be used in one or more of the following ways.
(1) Added to funds committed to the project and used to further eligible project objectives.
(2) Used to finance the non-DOE share of the project.
(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, as indicated in $600.114, 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 $$ 600.130 through 600.137).
8 600.124 Program income.
(a) The standards set forth in this section shall be used to account for program income related to projects fi
(h) Unless program regulations or the for Non-Profit Organizations," or 45 terms and condition of the award pro- CFR part 74 Appendix E, “Principles vide otherwise, recipients shall have no for Determining Costs Applicable to obligation to the Federal Government Research and Development under with respect to program income earned Grants and Contracts with Hospitals," from license fees and royalties for or 48 CFR part 31, “Contract Cost Princopyrighted material, patents, patent ciples and Procedures," as applicable. applications, trademarks, and inven (7) The transfer of funds allotted for tions produced under an award. How- training allowances (direct payment to ever, Patent and Trademark Amend trainees) to other categories of exments (35 U.S.C. Chapter 18) apply to pense. inventions made under an experi (8) Unless described in the applicamental, developmental, or research tion and funded in the approved award.
awards, the subaward, transfer or con
tracting out of any work under an $600.125 Revision of budget and pro award. This provision does not apply to gram plans.
the purchase of supplies, material, (a) The budget plan is the financial equipment or general support services. expression of the project or program as (d) No other prior approval requireapproved during the award process. It ments for specific items may be imincludes the sum of the Federal and posed unless a deviation has been apnon-Federal share when there are cost proved in accordance with 8600.4. sharing requirements. It shall be relat (e) Except for requirements listed in ed to performance for program evalua paragraphs (c)(1) and (c)(4) of this section purposes whenever appropriate. tion, program regulations may waive
(b) Recipients are required to report cost-related and administrative prior deviations from budget and program written approvals required by this subplans, and request prior approvals for part and its Appendices. Such waivers budget and program plan revisions, in may include authorizing recipients to accordance with this section.
do any one or more of the following. (c) For nonconstruction awards, re- (1) Incur pre-award costs 90 calendar cipients shall request prior approvals days prior to award without prior apfrom the DOE for one or more of the proval or more than 90 calendar days following program or budget related with the prior approval of DOE. All reasons.
pre-award costs are incurred at the re(1) Change in the scope or the objec- cipient's risk (i.e., DOE is under no obtive of the project or program (even if ligation to reimburse such costs if for there is no associated budget revision any reason the recipient does not rerequiring prior written approval).
ceive an award or if the award is less (2) Change in a key person specified than anticipated and inadequate to in the application or award document. cover such costs).
(3) The absence for more than three (2) Initiate a one-time extension of months, or a 25 percent reduction in the expiration date of the final budget time devoted to the project, by the ap period of the project of up to 12 months proved project director or principal in unless one or more of the following vestigator.
conditions apply. (4) The need for additional Federal (1) The terms and conditions of award funding.
prohibit the extension. (5) If required by program regula (ii) The extension requires additional tions, the transfer of amounts budgeted Federal funds. for indirect costs to absorb increases in (iii) The extension involves any direct costs, or vice versa.
change in the approved objectives or (6) The inclusion, unless waived by scope of the project. program regulations or the terms and (iv) The extension is being exercised conditions of award, of costs that re- merely for the purpose of using unobliquire prior approval in accordance with gated balances. For one-time extenOMB Circular A-21, “Cost Principles sions, the recipient must notify the for Institutions of Higher Education," DOE in writing with the supporting OMB Circular A-122, “Cost Principles reasons and revised expiration date at
least 10 days before the expiration date specified in the award.
(3) Carry forward unobligated balances to subsequent funding periods.
(4) For awards that support research, unless the terms and conditions of award provide otherwise, the prior approval requirements described in paragraph (e) of this section are automatically waived (i.e., recipients need not obtain such prior approvals) unless one of the conditions included in $ 600.125(e)(2) applies.
(5) For continuation awards within a multiple year project in support of research, prior to receipt of continuation funding, preaward expenditures by recipients are not subject to the limitation or approval requirements of $ 600.125(e)(1). Nevertheless, incurrence by the recipient does not impose any obligation on DOE if a continuation award is not subsequently made, or if an award is made for a lesser amount than the recipient expected.
(1) Program regulations may restrict the transfer of funds among direct cost categories or programs, functions and activities for awards in which DOE's share of the project exceeds $100,000 and the cumulative amount of such transfers exceeds or is expected to exceed 10 percent of the total budget as last approved by DOE. However, no program regulation shall permit a transfer that would cause any Federal appropriation or part thereof to be used for purposes other than those consistent with the original intent of the appropriation.
(g) All other changes to nonconstruction budgets, except for the changes described in paragraph (j) of this section, do not require prior approval.
(h) For construction awards, recipients shall request prior written approval promptly from the Contracting Officer for budget revisions whenever paragraph (h) (1), (2) or (3) of this section apply.
(1) The revision results from changes in the scope or the objective of the project or program.
(2) The need arises for additional Federal funds to complete the project.
(3) A revision is desired which in volves specific costs for which prior written approval requirements may be
imposed consistent with applicable OMB cost principles listed in $600.127.
(i) Except in accordance with the deviation procedures in 600.4 or as may be provided for in program regulations, no other prior approval requirements for specific items will be imposed by DOE.
(j) When DOE makes an award that provides support for both construction and nonconstruction work, DOE may require the recipient to request prior approval from DOE before making any fund or budget transfers between the two types of work supported.
(k) For both construction and nonconstruction awards, recipients shall notify DOE in writing promptly whenever the amount of Federal authorized funds is expected to exceed the needs of the recipient for the project period by more than $5000 or five percent of the Federal award, whichever is greater. This notification shall not be required if an application for additional funding is submitted for a continuation award.
(1) Requests for budget revisions may be made by letter.
(m) Within 30 calendar days from the date of receipt of the request for budget revisions, DOE shall review the request and notify the recipient whether the budget revisions have been ap proved. If the revision is still under consideration at the end of 30 calendar days, DOE shall inform the recipient in writing of the date when the recipient may expect the decision.
(n) DOE approval or disapproval of a request for a budget or project revision shall be in writing and signed by a DOE Contracting Officer.
(0) A request by a subrecipient for prior approval shall be addressed in writing to the recipient. The recipient shall promptly review such request and shall approve or disapprove the request in writing within 30 days from the date of the recipient's request for the revision. A recipient shall not approve any budget or project revision which is inconsistent with the purpose or terms and conditions of the DOE award. If the revision requested by the subrecipient would result in a change to the recipient's approved budget or approved project which requires DOE prior ap proval, the recipient shall obtain DOE approval before approving such revision.
$ 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 shall be
curred by institutions of higher edusubject to the audit requirements con
cation is determined in accordance tained in OMB Circular A-133, “Audits
with the provisions of OMB Circular Aof Institutions of Higher Education and
21, “Cost Principles for Educational InOther Non-Profit Institutions.”
stitutions." The allowability of costs (b) State and local governments shall
incurred by hospitals is determined in be subject to the audit requirements
accordance with the provisions of Apcontained in the Single Audit Act (31
pendix E of 45 CFR part 74, “Principles U.S.C. 7501-7) and Federal awarding
for Determining Costs Applicable to agency regulations implementing OMB
Research and Development Under Circular A-128, “Audits of State and
Grants and Contracts with Hospitals." Local Governments."
The allowability of costs incurred by (c) The Contracting Officer may commercial organizations and those audit, or cause to be audited, awards to
non-profit organizations listed in Athospitals not covered by the audit pro
tachment C to Circular A-122 is detervisions of OMB Circular A-133 when mined in accordance with the proviever and in the degree of detail he/she sions of the Federal Acquisition Regudeems necessary. The Contracting Offi- lation (FAR) at 48 CFR part 31. cer shall rely on available audit reports (b) Indirect costs. Unless restricted by in determining the need for and scope Federal statute or program rule, D of such audits. The hospital has similar shall provide for the reimbursement of authority in auditing subrecipients. appropriate indirect costs.
(d) The Contracting Officer may (1) DOE shall include an amount for audit, or cause to be audited, awards to indirect costs in an award only if the commercial organizations whenever applicant requests reimbursement of and in the degree of detail he/she deems such costs and necessary. The Contracting Officer (i) Submits evidence that a cognizant shall rely on available audit reports in Federal agency has been assigned to esdetermining the need for and scope of tablish indirect cost rates for the applisuch audits. The commercial organiza- cant and indicates or provides evidence tion has similar authority in auditing that subrecipients.
(A) A current agreement containing (e) The Contracting Officer may an applicable approved indirect cost audit, or cause to be audited, awards to rate(s) covering all or part of the budgindividuals whenever and in the degree et period for which DOE may provide of detail he/she deems necessary. The funding has been established; or Contracting Officer shall rely on avail (B) An indirect cost proposal has able audit reports in determining the been submitted to the cognizant agenneed for and scope of such audits.
cy in order to establish an applicable
approved indirect cost rate(s) covering 8600.127 Allowable costs.
all or part of the budget period for (a) General. For each kind of recipi- which DOE may provide funding; or ent, there is a set of Federal principles (C) An indirect cost proposal coverfor determining allowable costs. Allow- ing all or part of the budget period and ability of costs shall be determined in applicable to the activities for which accordance with the cost principles ap- DOE may provide funding will be subplicable to the entity incurring the mitted to the cognizant agency for apcosts. Thus, allowability of costs in- proval no later than three months after curred by State, local or federally-rec- the beginning date of the initial budget ognized Indian tribal governments is period of the DOE award or, for subsedetermined in accordance with the pro- quent budget periods, in accordance visions of OMB Circular A-87, “Cost with any schedule established by the Principles for State and Local Govern- cognizant agency; or ments." The allowability of costs in- (ii) If not assigned to a cognizant curred by non-profit organizations is agency, the applicant includes, in the determined in accordance with the pro- application, data that is current, com