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Accrued erpenditures mean the ments may be considered as grantee or charges incurred by the grantee during subgrantee cash contributions. a given period requiring the provision Contract means (except as used in the of funds for: (1) Goods and other tan- definitions for grant and subgrant in gible property received; (2) services this section and except where qualified performed by employees, contractors, by Federal) a procurement contract subgrantees, subcontractors, and other under a grant or subgrant, and means a payees; and (3) other amounts becom procurement subcontract under a coning owed under programs for which no tract. current services or performance is re Cost sharing or matching means the quired, such as annuities, insurance value of the third party in-kind conclaims, and other benefit payments.

tributions and the portion of the costs Accrued income means the sum of: (1)

of a federally assisted project or proEarnings during a given period from

gram not borne by the Federal Governservices performed by the grantee and

ment. goods and other tangible property de

Cost-type contract means a contract or livered to purchasers, and (2) amounts

subcontract under a grant in which the becoming owed to the grantee for

contractor or subcontractor is paid on which no current services or perform

the basis of the costs it incurs, with or ance is required by the grantee.

without a fee. Acquisition cost of an item of pur

Equipment means tangible, chased equipment means the net in

nonexpendable, personal property havvoice unit price of the property includ

ing a useful life of more than one year ing the cost of modifications, attach

and an acquisition cost of $5,000 or ments, accessories, or auxiliary appa

more per unit. A grantee may use its

own definition of equipment provided ratus necessary to make the property

that such definition would at least inusable for the purpose for which it was acquired. Other charges such as the

clude all equipment defined above. cost of installation, transportation,

Expenditure report means: (1) For nontaxes, duty or protective in-transit in

construction grants, the SF-269 “Fi

nancial Status Report" (or other equivsurance, shall be included or excluded

alent report); (2) for construction from the unit acquisition cost in ac

grants, the SF-271 “Outlay Report and cordance with the grantee's regular ac

Request for Reimbursement” (or other counting practices.

equivalent report). Administrative requirements mean

Federally recognized Indian tribal govthose matters common to grants in

ernment means the governing body or a general, such as financial management,

governmental agency of any Indian kinds and frequency of reports, and re

tribe, band, nation, or other organized tention of records. These are distin

group or community (including any guished from programmatic require

Native village as defined in section 3 of ments, which concern matters that can

the Alaska Native Claims Settlement be treated only on a program-by-pro

Act, 85 Stat 688) certified by the Secgram or grant-by-grant basis, such as

retary of the Interior as eligible for the kinds of activities that can be sup

special programs and services provided ported by grants under a particular

by him through the Bureau of Indian program.

Affairs. Awarding agency means (1) with re Government means a State or local spect to a grant, the Federal agency, government or a federally recognized and (2) with respect to a subgrant, the Indian tribal government. party that awarded the subgrant.

Grant means an award of financial asCash contributions means the grant sistance, including cooperative agreeee's cash outlay, including the outlay ments, in the form of money, or propof money contributed to the grantee or erty in lieu of money, by the Federal subgrantee by other public agencies Government to an eligible grantee. The and institutions, and private organiza term does not include technical assisttions and individuals. When authorized ance which provides services instead of by Federal legislation, Federal funds money, or other assistance in the form received from other assistance agree- of revenue sharing, loans, loan guarantees, interest subsidies, insurance, or required, such as annuities, insurance direct appropriations. Also, the term claims, and other benefit payments. does not include assistance, such as a Percentage of completion method refers fellowship or other lump sum award, to a system under which payments are which the grantee is not required to ac- made for construction work according count for.

to the percentage of completion of the Grantee means the government to work, rather than to the grantee's cost which a grant is awarded and which is incurred. accountable for the use of the funds Prior approval means documentation provided. The grantee is the entire evidencing consent prior to incurring legal entity even if only a particular specific cost. For the Department of component of the entity is designated

Energy, this must be signed by a Conin the grant award document.

tracting Officer. Local government means a county,

Real property means land, including municipality, city, town, township,

land improvements, structures and aplocal public authority (including any

purtenances thereto, excluding movpublic and Indian housing agency

able machinery and equipment. under the United States Housing Act of

Share, when referring to the awarding 1937) school district, special district,

agency's portion of real property, intrastate district, council of govern

equipment or supplies, means the same ments (whether or not incorporated as

percentage as the awarding agency's a nonprofit corporation under state

portion of the acquiring party's total law), any other regional or interstate

costs under the grant to which the acgovernment entity, or any agency or

quisition costs under the grant to instrumentality of a local government.

which the acquisition cost of the prop Obligations means the amounts of or

erty was charged. Only costs are to be

counted- not the value of third-party ders placed, contracts and subgrants

in-kind contributions. awarded, goods and services received,

State means any of the several States and similar transactions during a given

of the United States, the District of period that will require payment by

Columbia, the Commonwealth of Puerthe grantee during the same or a future

to Rico, any territory or possession of period.

the United States, or any agency or inOMB means the United States Office

strumentality of a State exclusive of of Management and Budget.

local governments. The term does not Outlays (expenditures) mean charges

include any public and Indian housing made to the project or program. They

agency under United States Housing may be reported on a cash or accrual Act of 1937. basis. For reports prepared on a cash Subgrant means an award of financial basis, outlays are the sum of actual

assistance in the form of money, or cash disbursement for direct charges property in lieu of money, made under for goods and services, the amount of a grant by a grantee to an eligible indirect expense incurred, the value of subgrantee. The term includes finanin-kind contributions applied, and the cial assistance when provided by conamount of cash advances and payments tractual legal agreement, but does not made to contractors and subgrantees. include procurement purchases, nor For reports prepared on an accrued ex- does it include any form of assistance penditure basis, outlays are the sum of which is excluded from the definition actual cash disbursements, the amount of grant in this subpart. of indirect expense incurred, the value Subgrantee means the government or of inkind contributions applied, and other legal entity to which a subgrant the new increase or decrease) in the is awarded and which is accountable to amounts owed by the grantee for goods the grantee for the use of the funds and other property received, for serv- provided. ices performed by employees, contrac- Supplies means all tangible personal tors, subgrantees, subcontractors, and property other than "equipment" as other payees, and other amounts be- defined in this subpart. coming owed under programs for which Suspension means depending on the no current services or performance are context, either (1) temporary withdrawal of the authority to obligate tions from the cumulative funds augrant funds pending corrective action thorized. by the grantee or subgrantee or a deci

(53 FR 8087, Mar. 11, 1988, as amended at 53 sion to terminate the grant, or (2) an FR 8047, Mar. 11, 1988; 54 FR 23960, June 5, action taken by a suspending official in 1989) accordance with agency regulations implementing E.O. 12549 to imme- $ 600.203 Applicability. diately exclude a person from partici (a) General. Sections 600.400 through pating in grant transactions for a pe- 600.452 of this subpart apply to all riod, pending completion of an inves grants and subgrants to governments, tigation and such legal or debarment except where inconsistent with Federal proceedings as may ensue.

statutes or with regulations authorized Termination means permanent with

in accordance with the exception providrawal of the authority to obligate pre

sion of $600.405, or: viously-awarded grant funds before

(1) Grants and subgrants to State and that authority would otherwise expire.

local institutions of higher education It also means the voluntary relinquish

or State and local hospitals.

(2) The block grants authorized by ment of that authority by the grantee

the Omnibus Budget Reconciliation or subgrantee. Termination does not include: (1) Withdrawal of funds awarded

Act of 1981 (Community Services; Pre

ventive Health and Health Services; Alon the basis of the grantee's underesti

cohol, Drug Abuse, and Mental Health mate of the unobligated balance in a

Services; Maternal and Child Health prior period; (2) withdrawal of the un

Services; Social Services; Low-Income obligated balance as of the expiration

Home Energy Assistance; States' Proof a grant; (3) refusal to extend a grant

gram of Community Development or award additional funds, to make a Block Grants for Small Cities; and Elecompeting or noncompeting continu- mentary and Secondary Education ation, renewal, extension, or supple- other than programs administered by mental award; or (4) voiding of a grant the Secretary of Education under Title upon determination that the award was V, Subtitle D, Chapter 2, Section 583— obtained fraudulently, or was other the Secretary's discretionary grant wise illegal or invalid from inception. program) and Titles I-III of the Job

Terms of a grant or subgrant mean all Training Partnership Act of 1982 and requirements of the grant or subgrant, under the Public Health Services Act whether in statute, regulations, or the (Section 1921), Alcohol and Drug Abuse award document.

Treatment and Rehabilitation Block Third party in-kind contributions mean

Grant and part C of Title V, Mental property or services which benefit a

Health Service for the Homeless Block federally assisted project or program

Grant). and which are contributed by non-Fed

(3) Entitlement grants to carry out eral third parties without charge to the

the following programs of the Social grantee, or a cost-type contractor

Security Act:

(i) Aid to Needy Families with Deunder the grant agreement.

pendent Children (Title IV-A of the Unliquidated obligations for reports

Act, not including the Work Incentive prepared on a cash basis mean the

Program (WIN) authorized by section amount of obligations incurred by the

402(a)19(G); HHS grants for WIN are grantee that has not been paid. For re

subject to this subpart); ports prepared on an accrued expendi

(ii) Child Support Enforcement and ture basis, they represent the amount

Establishment of Paternity (Title IV-D of obligations incurred by the grantee

of the Act); for which an outlay has not been re

(iii) Foster Care and Adoption Assistcorded.

ance (Title IV-E of the Act); Unobligated balance means the por- (iv) Aid to the Aged, Blind, and Distion of the funds authorized by the abled (Titles I, X, XIV, and XVI-AABD Federal agency that has not been obli- of the Act); and gated by the grantee and is determined (v) Medical Assistance (Medicaid) by deducting the cumulative obliga- (Title XIX of the Act) not including the

8600.204 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 subpart are superseded, except to the extent they are required by statute, or authorized in accordance with the ex

8
$ 600.205 Additions and exceptions.

(a) For classes of grants and grantees subject to this subpart, Federal agencies may not impose additional administrative requirements except in codified regulations published in the FEDERAL REGISTER.

(b) Exceptions for classes of grants or grantees may be authorized only by Омв.

(c) Exceptions on a case-by-case basis and for subgrantees may be authorized by the affected Federal agencies.

(d) The DOE procedural requirements for requesting additions and exceptions are specified in 8600.4. (53 FR 8087, Mar. 11, 1988, as amended at 53 FR 8047, Mar. 11, 1988)

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 Act),

(ii) Commodity Assistance (section 6 of the Act),

(iii) Special Meal Assistance (section 11 of the Act), (iv) Summer Food Service for Chil

11. dren (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 241-1(a), and 242 through 244 (portions of the Impact Aid program), except for 20 U.S.C.

program), except for 20 U.S.C. 238(d)(2)(c) and 240(1) (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 $600.403(a) (3) through (8) are subject to subpart E. (53 FR 8045, 8087, Mar. 11, 1988, as amended at 54 FR 23960, June 5, 1989)

PRE-AWARD REQUIREMENTS 8600.210 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 ap plying 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.

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

(3) Applicants must follow all appli. cable 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 additional 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.

(2) Repeat the assurance language in the statutes or regulations, or

(3) Develop its own language to the extent permitted by law.

(d) Amendments. A State will amend a plan whenever necessary to reflect: (1) New or revised Federal statutes or regulations or (2) a material change in any State law, organization, policy, or State agency operation. The State will obtain approval for the amendment and its effective date but need submit for approval only the amended portions of the plan.

$600.211 State plans.

(a) Scope. The statutes for some pro grams 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 provisions,

8 600.212 Special grant or subgrant

conditions for "high-risk" recipi.

ents. (a) A grantee or subgrantee may be considered "high risk” if an awarding agency determines that a grantee or subgrantee:

(1) Has a history of unsatisfactory performance, or

(2) Is not financially stable, or

(3) Has a management system which does not meet the management standards set forth in this subpart, or

(4) Has not conformed to terms and conditions of previous awards, or

(5) Is otherwise not responsible; and if the awarding agency determines that an award will be made, special conditions and/or restrictions shall correspond to the high risk condition and shall be included in the award.

(b) Special conditions or restrictions may include:

(1) Payment on a reimbursement basis;

(2) Withholding authority to proceed to the next phase until receipt of evidence of acceptable performance within a given funding period;

(3) Requiring additional, more detailed financial reports;

(4) Additional project monitoring;

(5) Requiring the grantee or subgrantee to obtain technical or management assistance; or

(6) Establishing additional prior ap provals.

(c) If an awarding agency decides to impose such conditions, the awarding official will notify the grantee or subgrantee as early as possible, in writing, of:

(1) The nature of the special conditions/restrictions;

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