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supplemented in Department of Labor (13) Mandatory standards and policies regulations (29 CFR Part 3). (All con- relating to energy efficiency which are tracts and subgrants for construction contained in the state energy conservaor repair)
tion plan issued in compliance with the (5) Compliance with the Davis-Bacon Energy Policy and Conservation Act Act (40 U.S.C. 276a to 276a-7) as supple (Pub. L. 94–163, 89 Stat. 871). mented by Department of Labor regu
(53 FR 8045, 8087, Mar. 11, 1988, as amended at lations (29 CFR Part 5). (Construction 60 FR 19639, 19641, Apr. 19, 1995) contracts in excess of $2000 awarded by grantees and subgrantees when re $ 600.237 Subgrants. quired by Federal grant program legis (a) States. States shall follow state lation)
law and procedures when awarding and (6) Compliance with Sections 103 and administering subgrants (whether on a 107 of the Contract Work Hours and cost reimbursement or fixed amount Safety Standards Act (40 U.S.C. 327-330) basis) of financial assistance to local as supplemented by Department of and Indian tribal governments. States Labor regulations (29 CFR Part 5). shall: (Construction contracts awarded by (1) Ensure that every subgrant ingrantees and subgrantees in excess of cludes any clauses required by Federal $2000, and in excess of $2500 for other statute and executive orders and their contracts which involve the employ implementing regulations; ment of mechanics or laborers)
(2) Ensure that subgrantees are (7) Notice of awarding agency re
aware of requirements imposed upon quirements and regulations pertaining
them by Federal statute and regulato reporting.
tion; (8) Notice of awarding agency re
(3) Ensure that a provision for comquirements and regulations pertaining
pliance with $ 600.442 is placed in every to patent rights with respect to any
cost reimbursement subgrant; and
(4) Conform any advances of grant discovery or invention which arises or
funds to subgrantees substantially to is developed in the course of or under
the same standards of timing and such contract.
amount that apply to cash advances by (9) Awarding agency requirements
Federal agencies. and regulations pertaining to copy
(b) All other grantees. All other grantrights and rights in data.
ees shall follow the provisions of this (10) Access by the grantee, the
subpart which are applicable to awardsubgrantee, the Federal grantor agen
ing agencies when awarding and admincy, the Comptroller General of the
istering subgrants (whether on a cost United States, or any of their duly au
reimbursement or fixed amount basis) thorized representatives to any books,
of financial assistance to local and Indocuments, papers, and records of the
dian tribal governments. Grantees contractor which are directly pertinent
shall: to that specific contract for the pur (1) Ensure that every subgrant inpose of making audit, examination, ex
cludes a provision for compliance with cerpts, and transcriptions.
this subpart; (11) Retention of all required records (2) Ensure that every subgrant infor three years after grantees or cludes any clauses required by Federal subgrantees make final payments and statute and executive orders and their all other pending matters are closed. implementing regulations; and
(12) Compliance with all applicable (3) Ensure that subgrantees are standards, orders, or requirements is aware of requirements imposed upon sued under section 306 of the Clean Air them by Federal statutes and regulaAct (42 U.S.C. 1857(h)), section 508 of tions. the Clean Water Act (33 U.S.C. 1368), (c) Exceptions. By their own terms, Executive Order 11738, and Environ- certain provisions of this subpart do mental Protection Agency regulations not apply to the award and administra(40 CFR part 15). (Contracts, sub- tion of subgrants: contracts, and subgrants of amounts in (1) Section 600.410; excess of $100,000).
(2) Section 600.411;
(3) The letter-of-credit procedures may be required if that information specified in Treasury Regulations at 31 will be useful. CFR part 205, cited in $600.421; and
(ii) The reasons for slippage if estab(4) Section 600.450.
lished objectives were not met.
(iii) Additional pertinent information Reports, Records, Retention, and
including, when appropriate, analysis Enforcement
and explanation of cost overruns or 8600.240 Monitoring and reporting
high unit costs.
(3) Grantees will not be required to program performance.
submit more than the original and two (a) Monitoring by grantees. Grantees
copies of performance reports. are responsible for managing the day
(4) Grantees will adhere to the standto-day operations of grant and
ards in this section in prescribing persubgrant supported activities. Grantees
formance reporting requirements for must monitor grant and subgrant sup
subgrantees. ported activities to assure compliance
(c) Construction performance reports. with applicable Federal requirements and that performance goals are being
For the most part, on-site technical in
spections and certified percentage-ofachieved. Grantee monitoring must
completion data are relied on heavily cover each program, function or activ
by Federal agencies to monitor ity. (b) Nonconstruction performance re
progress under construction grants and
subgrants. The Federal agency will reports. The Federal agency may, if it decides that performance information
quire additional formal performance
reports only when considered necavailable from subsequent applications
essary, and never more frequently than contains sufficient information to
quarterly. meet its programmatic needs, require the grantee to submit a performance
(d) Significant developments. Events report only upon expiration or termi
may occur between the scheduled pernation of grant support. Unless waived
formance reporting dates which have by the Federal agency this report will
significant impact upon the grant or be due on the same date as the final Fi
subgrant supported activity. In such nancial Status Report.
cases, the grantee must inform the (1) Grantees shall submit annual per
Federal agency as soon as the following formance reports unless the awarding
types of conditions become known: agency requires quarterly or semi-an
(1) Problems, delays, or adverse connual reports. However, performance re
ditions which will materially impair ports will not be required more fre
the ability to meet the objective of the quently than quarterly. Annual reports
award. This disclosure must include a shall be due 90 days after the grant
statement of the action taken, or conyear, quarterly or semi-annual reports
templated, and any assistance needed shall be due 30 days after the reporting
to resolve the situation. period. The final performance report
(2) Favorable developments which enwill be due 90 days after the expiration
able meeting time schedules and objecor termination of grant support. If a tives sooner or at less cost than anticijustified request is submitted by a pated or producing more beneficial regrantee, the Federal agency may ex
agency may ex- sults than originally planned. tend the due date for any performance (e) Federal agencies may make site report. Additionally, requirements for visits as warranted by program needs. unnecessary performance reports may (1) Waivers, extensions. (1) Federal be waived by the Federal agency.
agencies may waive any performance (2) Performance reports will contain, report required by this part if not needfor each grant, brief information on the ed. following:
(2) The grantee may waive any per(i) A comparison of actual accom formance report from a subgrantee plishments to the objectives estab- when not needed. The grantee may exlished for the period. Where the output tend the due date for any performance of the project can be quantified, a com- report from a subgrantee if the grantee putation of the cost per unit of output will still be able to meet its perform
ance reporting obligations to the Fed- tion grants when required in accorderal agency.
ance with $600.441(e)(2)(iii).
(2) Accounting basis. Each grantee will $600.241 Financial reporting.
report program outlays and program (a) General. (1) Except as provided in
income on a cash or accrual basis as paragraphs (a) (2) and (5) of this sec- prescribed by the awarding agency. If tion, grantees will use only the forms the Federal agency requires accrual inspecified in paragraphs (a) through (e) formation and the grantee's accounting of this section, and such supple- records are not normally kept on the mentary or other forms as may from accrual basis, the grantee shall not be time to time be authorized by OMB, required to convert its accounting sysfor:
tem but shall develop such accrual in(1) Submitting financial reports to formation through and analysis of the Federal agencies, or
documentation on hand. (ii) Requesting advances or reim- (3) Frequency. The Federal agency bursements when letters of credit are may prescribe the frequency of the renot used.
port for each project or program. How(2) Grantees need not apply the forms ever, the report will not be required prescribed in this section in dealing more frequently than quarterly. If the with their subgrantees. However, Federal agency does not specify the grantees shall not impose more burden- frequency of the report, it will be subsome requirements on subgrantees. mitted annually. A final report will be
(3) Grantees shall follow all applica- required upon expiration or termible standard and supplemental Federal nation of grant support. agency instructions approved by OMB (4) Due date. When reports are reto the extent required under the Paper- quired on a quarterly or semiannual work Reduction Act of 1980 for use in basis, they will be due 30 days after the connection with forms specified in reporting period. When required on an paragraphs (b) through (e) of this sec- annual basis, they will be due 90 days tion. Federal agencies may issue sub- after the grant year. Final reports will stantive supplementary instructions be due 90 days after the expiration or only with the approval of OMB. Federal termination of grant support. agencies may shade out or instruct the (c) Federal Cash Transactions Reportgrantee to disregard any line item that (1) Form. (i) For grants paid by letter or the Federal agency finds unnecessary credit, Treasury check advances or for its decisionmaking purposes.
electronic transfer of funds, the grant(4) Grantees will not be required to ee will submit the Standard Form 272, submit more than the original and two Federal Cash Transactions Report, and copies of forms required under this sub- when necessary, its continuation sheet, part.
Standard Form 272a, unless the terms (5) Federal agencies may provide of the award exempt the grantee from computer outputs to grantees to expe- this requirement. dite or contribute to the accuracy of (ii) These reports will be used by the reporting. Federal agencies may accept Federal agency to monitor cash adthe required information from grantees vanced to grantees and to obtain disin machine usable format or computer bursement or outlay information for printouts instead of prescribed forms. each grant from grantees. The format
(6) Federal agencies may waive any of the report may be adapted as approreport required by this section if not priate when reporting is to be accomneeded.
plished with the assistance of auto(7) Federal agencies may extend the matic data processing equipment produe date of any financial report upon vided that the information to be subreceiving a justified request from a mitted is not changed in substance. grantee.
(2) Forecasts of Federal cash require(b) Financial Status Report—(1) Form. ments. Forecasts of Federal cash reGrantees will use Standard Form 269 or quirements may be required in the 269A, Financial Status Report, to re- “Remarks" section of the report. port the status of funds for all non- (3) Cash in hands of subgrantees. When construction grants and for construc- considered necessary and feasible by
paid by letter of credit, electronic funds transfer or Treasury check advances, the grantee will report its outlays to the Federal agency using Standard Form 271, Outlay Report and Request for Reimbursement for Construction Programs. The Federal agency will provide any necessary special instruction. However, frequency and due date shall
governed by $ 600.241(b) (3) and (4).
(ii) When a construction grant is paid by Treasury check advances based on periodic requests from the grantee, the advances will be requested on the form specified in $ 600.41(d).
(iii) The Federal agency may substitute the Financial Status Report specified in $ 600.441(b) for the Outlay Report and Request for Reimbursement for Construction Programs.
(3) Accounting basis. The accounting basis for the Outlay Report and Request for Reimbursement for Construction Programs shall be governed by $ 600.441(b)(2). (53 FR 8045, 8047, Mar. 11, 1988, as amended at 59 FR 53266, Oct. 21, 1994)
the Federal agency, grantees may be required to report the amount of cash advances in excess of three days' needs in the hands of their subgrantees or contractors and to provide short narrative explanations of actions taken by the grantee to reduce the excess balances.
(4) Frequency and due date. Grantees must submit the report no later than 15 working days following the end of each quarter. However, where an advance either by letter of credit or electronic transfer of funds is authorized at an annualized rate of one million dollars or more, the Federal agency may require the report to be submitted within 15 working days following the end of each month.
(d) Request for advance or reimbursement—(1) Advance payments. Requests for Treasury check advance payments will be submitted on Standard Form 270, Request for Advance or Reimbursement. (This form will not be used for drawdowns under a letter of credit, electronic funds transfer or when Treasury check advance payments are made to the grantee automatically on a predetermined basis.)
(2) Reimbursements. Requests for reimbursement under nonconstruction grants will also be submitted on Standard Form 270. (For reimbursement requests under construction grants, see paragraph (e)(1) of this section.)
(3) The frequency for submitting payment requests is treated in $ 600.441(b)(3).
(e) Outlay report and request for reimbursement for construction programs. (1) Grants that support construction activities paid by reimbursement method. (i) Requests for reimbursement under construction grants will be submitted on Standard Form 271, Outlay Report and Request for Reimbursement for Construction Programs. Federal agencies may, however, prescribe the Request for Advance or Reimbursement form, specified in $600.441(d), instead of this form.
(ii) The frequency for submitting reimbursement requests is treated in $ 600.441(b)(3).
(2) Grants that support construction activities paid by letter of credit, electronic funds transfer of Treasury check advance. (i) When a construction grant is
8 600.242 Retention and
quirements for records. (a) Applicability. (1) This section ap plies to all financial and programmatic records, supporting documents, statistical records, and other records of grantees or subgrantees which are:
(i) Required to be maintained by the terms of this subpart, program regulations or the grant agreement, or
(ii) Otherwise reasonably considered as pertinent to program regulations or the grant agreement.
(2) This section does not apply to records maintained by contractors or subcontractors. For a requirement to place a provision concerning records in certain kinds of contracts, see $600.436(i)(10).
(b) Length of retention period. (1) Except as otherwise provided, records must be retained for three years from the starting date specified in paragraph (c) of this section.
(2) If any litigation, claim, negotiation, audit or other action involving the records has been started before the expiration of the 3-year period, the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular 3-year period, whichever is later.
(3) To avoid duplicate recordkeeping, awarding agencies may make special arrangements with grantees and subgrantees to retain any records which are continuously needed for joint use. The awarding agency will request transfer of records to its custody when it determines that the records possess long-term retention value. When the records are transferred to or maintained by the Federal agency, the 3-year retention requirement is not applicable to the grantee or subgrantee.
(c) Starting date of retention period—(1) General. When grant support is continued or renewed at annual or other intervals, the retention period for the records of each funding period starts on the day the grantee or subgrantee submits to the awarding agency its single or last expenditure report for that period. However, if grant support is continued or renewed quarterly, the retention period for each year's records starts on the day the grantee submits its expenditure report for the last quarter of the Federal fiscal year. In all other cases, the retention period starts on the day the grantee submits its final expenditure report. If an expenditure report has been waived, the retention period starts on the day the report would have been due.
(2) Real property and equipment records. The retention period for real property and equipment records starts from the date of the disposition or replacement or transfer at the direction of the awarding agency.
(3) Records for income transactions after grant or subgrant support. In some cases grantees must report income after the period of grant support. Where there is such a requirement, the retention period for the records pertaining to the earning of the income starts from the end of the grantee's fiscal year in which the income is earned.
(4) Indirect cost rate proposals, cost allocations plans, etc. This paragraph applies to the following types of documents, and their supporting records: indirect cost rate computations or proposals, cost allocation plans, and any similar accounting computations of the rate at which a particular group of
costs is chargeable (such as computer usage chargeback rates or composite fringe benefit rates).
(i) If submitted for negotiation. If the proposal, plan, or other computation is required to be submitted to the Federal Government (or to the grantee) to form the basis for negotiation of the rate, then the 3-year retention period for its supporting records starts from the date of such submission.
(ii) If not submitted for negotiation. If the proposal, plan, or other computation is not required to be submitted to the Federal Government (or to the grantee) for negotiation purposes, then the 3-year retention period for the proposal plan, or computation and its supporting records starts from end of the fiscal year (or other accounting period) covered by the proposal, plan, or other computation.
(d) Substitution of microfilm. Copies made by microfilming, photocopying, or similar methods may be substituted for the original records.
(e) Access to records—(1) Records of grantees and subgrantees. The awarding agency and the Comptroller General of the United States, or any of their authorized representatives, shall have the right of access to any pertinent books, documents, papers, or other records of grantees and subgrantees which are pertinent to the grant, in order to make audits, examinations, excerpts, and transcripts.
(2) Expiration of right of access. The rights of access in this section must not be limited to the required retention period but shall last as long as the records are retained.
(f) Restrictions on public access. The Federal Freedom of Information Act (5 U.S.C. 552) does not apply to records unless required by Federal, State, or local law, grantees and subgrantees are not required to permit public access to their records.
$ 600.243 Enforcement.
(a) Remedies for noncompliance. If a grantee or subgrantee materially fails to comply with any term of an award, whether stated in a Federal statute or regulation, an assurance, in a State plan or application, a notice of award, or elsewhere, the awarding agency may take one or more of the following ac