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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 specified in Treasury Regulations at 31 CFR part 205, cited in 8600.421; and (4) Section 600.450. Reports, Records, Retention, and
8600.240 Monitoring and reporting
program performance. (a) Monitoring by grantees. Grantees are responsible for managing the dayto-day operations of grant and subgrant supported activities. Grantees must monitor grant and subgrant supported activities to assure compliance with applicable Federal requirements and that performance goals are being achieved. Grantee monitoring must cover each program, function or activity.
(b) Nonconstruction performance reports. The Federal agency may, if it decides that performance information available from subsequent applications contains sufficient information to meet its programmatic needs, require the grantee to submit a performance report only upon expiration or termination of grant support. Unless waived by the Federal agency this report will be due on the same date as the final Financial Status Report.
(1) Grantees shall submit annual performance reports unless the awarding agency requires quarterly or semi-annual reports. However, performance reports will not be required more frequently than quarterly. Annual reports shall be due 90 days after the grant year, quarterly or semi-annual reports shall be due 30 days after the reporting period. The final performance report will be due 90 days after the expiration or termination of grant support. If a justified request is submitted by a grantee, the Federal agency may extend the due date for any performance report. Additionally, requirements for unnecessary performance reports may be waived by the Federal agency.
(2) Performance reports will contain, for each grant, brief information on the following:
(i) A comparison of actual accomplishments to the objectives established for the period. Where the output of the project can be quantified, a computation of the cost per unit of output
may be required if that information will be useful.
(ii) The reasons for slippage if established objectives were not met.
(iii) Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.
(3) Grantees will not be required to submit more than the original and two copies of performance reports.
(4) Grantees will adhere to the standards in this section in prescribing performance reporting requirements for subgrantees.
(c) Construction performance reports. For the most part, on-site technical inspections and certified percentage-ofcompletion data are relied on heavily by Federal agencies to monitor progress under construction grants and subgrants. The Federal agency will require additional formal performance reports only when considered necessary, and never more frequently than quarterly.
(d) Significant developments. Events may occur between the scheduled performance reporting dates which have significant impact upon the grant or subgrant supported activity. In such cases, the grantee must inform the Federal agency as soon as the following types of conditions become known:
(1) Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the award. This disclosure must include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.
(2) Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more beneficial results than originally planned.
(e) Federal agencies may make site visits as warranted by program needs.
(1) Waivers, extensions. (1) Federal agencies may waive any performance report required by this part if not needed.
(2) The grantee may waive any performance report from a subgrantee when not needed. The grantee may extend the due date for any performance report from a subgrantee if the grantee will still be able to meet its perform
ance reporting obligations to the Federal agency. $ 600.241 Financial reporting.
(a) General. (1) Except as provided in paragraphs (a) (2) and (5) of this section, grantees will use only the forms specified in paragraphs (a) through (e) of this section, and such supplementary or other forms as may from time to time be authorized by OMB, for:
(1) Submitting financial reports to Federal agencies, or
(ii) Requesting advances or reimbursements when letters of credit are not used.
(2) Grantees need not apply the forms prescribed in this section in dealing with their subgrantees. However, grantees shall not impose more burdensome requirements on subgrantees.
(3) Grantees shall follow all applicable standard and supplemental Federal agency instructions approved by OMB to the extent required under the Paperwork Reduction Act of 1980 for use in connection with forms specified in paragraphs (b) through (e) of this section. Federal agencies may issue substantive supplementary instructions only with the approval of OMB. Federal agencies may shade out or instruct the grantee to disregard any line item that the Federal agency finds unnecessary for its decisionmaking purposes.
(4) Grantees will not be required to submit more than the original and two copies of forms required under this subpart.
(5) Federal agencies may provide computer outputs to grantees to expedite or contribute to the accuracy of reporting. Federal agencies may accept the required information from grantees in machine usable format or computer printouts instead of prescribed forms.
(6) Federal agencies may waive any report required by this section if not needed.
(7) Federal agencies may extend the due date of any financial report upon receiving a justified request from a grantee.
(b) Financial Status Report-(1) Form. Grantees will use Standard Form 269 or 269A, Financial Status Report, to report the status of funds for all nonconstruction grants and for construc
tion grants when required in accordance with $600.441(e)(2)(iii).
(2) Accounting basis. Each grantee will report program outlays and program income on a cash or accrual basis as prescribed by the awarding agency. If the Federal agency requires accrual information and the grantee's accounting records are not normally kept on the accrual basis, the grantee shall not be required to convert its accounting system but shall develop such accrual information through and analysis of the documentation on hand.
(3) Frequency. The Federal agency may prescribe the frequency of the report for each project or program. However, the report will not be required more frequently than quarterly. If the Federal agency does not specify the frequency of the report, it will be submitted annually. A final report will be required upon expiration or termination of grant support.
(4) Due date. When reports are required on a quarterly or semiannual basis, they will be due 30 days after the reporting period. When required on an annual basis, they will be due 90 days after the grant year. Final reports will be due 90 days after the expiration or termination of grant support.
(c) Federal Cash Transactions Report(1) Form. (i) For grants paid by letter or credit, Treasury check advances or electronic transfer of funds, the grantee will submit the Standard Form 272, Federal Cash Transactions Report, and when necessary, its continuation sheet, Standard Form 272a, unless the terms of the award exempt the grantee from this requirement.
(ii) These reports will be used by the Federal agency to monitor cash advanced to grantees and to obtain disbursement or outlay information for each grant from grantees. The format of the report may be adapted as appropriate when reporting is to be accomplished with the assistance of automatic data processing equipment provided that the information to be submitted is not changed in substance.
(2) Forecasts of Federal cash requirements. Forecasts of Federal cash requirements may be required in the “Remarks" section of the report.
(3) Cash in hands of subgrantees. When 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 be 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 8600.441(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 access re
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 costs is chargeable (such as computer end of the regular 3-year period, which- usage chargeback rates or composite ever is later.
fringe benefit rates). (3) To avoid duplicate recordkeeping, (i) If submitted for negotiation. If the awarding agencies may make special proposal, plan, or other computation is arrangements with grantees and required to be submitted to the Federal subgrantees to retain any records Government (or to the grantee) to form which are continuously needed for the basis for negotiation of the rate, joint use. The awarding agency will re- then the 3-year retention period for its quest transfer of records to its custody supporting records starts from the date when it determines that the records of such submission. possess long-term retention value. (ii) If not submitted for negotiation. If When the records are transferred to or the proposal, plan, or other computamaintained by the Federal agency, the tion is not required to be submitted to 3-year retention requirement is not ap the Federal Government (or to the plicable to the grantee or subgrantee. grantee) for negotiation purposes, then
(c) Starting date of retention period-(1) the 3-year retention period for the proGeneral. When grant support is contin posal plan, or computation and its supued or renewed at annual or other in porting records starts from end of the tervals, the retention period for the fiscal year (or other accounting period) records of each funding period starts on covered by the proposal, plan, or other the day the grantee or subgrantee sub com mits to the awarding agency its single (d) Substitution of microfilm. Copies or last expenditure report for that pe made by microfilming, photocopying, riod. However, if grant support is con- or similar methods may be substituted tinued or renewed quarterly, the reten- for the original records. tion period for each year's records (e) Access to records—(1) Records of starts on the day the grantee submits grantees and subgrantees. The awarding its expenditure report for the last quar agency and the Comptroller General of ter of the Federal fiscal year. In all the United States, or any of their auother cases, the retention period starts thorized representatives, shall have the on the day the grantee submits its right of access to any pertinent books, final expenditure report. If an expendi- documents, papers, or other records of ture report has been waived, the reten- grantees and subgrantees which are tion period starts on the day the report pertinent to the grant, in order to would have been due.
make audits, examinations, excerpts, (2) Real property and equipment and transcripts. Tecords. The retention period for real (2) Expiration of right of access. The property and equipment records starts rights of access in this section must from the date of the disposition or re- not be limited to the required retenplacement or transfer at the direction tion period but shall last as long as the of the awarding agency.
records are retained. (3) Records for income transactions (f) Restrictions on public access. The after grant or subgrant support. In some Federal Freedom of Information Act (5 cases grantees must report income U.S.C. 552) does not apply to records after the period of grant support. unless required by Federal, State, or Where there is such a requirement, the local law, grantees and subgrantees are retention period for the records per- not required to permit public access to taining to the earning of the income their records. starts from the end of the grantee's fiscal year in which the income is earned.
8600.243 Enforcement. (4) Indirect cost rate proposals, cost al (a) Remedies for noncompliance. If a locations plans, etc. This paragraph ap grantee or subgrantee materially fails plies to the following types of docu- to comply with any term of an award, ments, and their supporting records: whether stated in a Federal statute or indirect cost rate computations or pro- regulation, an assurance, in a State posals, cost allocation plans, and any plan or application, a notice of award, similar accounting computations of or elsewhere, the awarding agency may the rate at which a particular group of take one or more of the following ac