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be undertaken. Upon a determinathat the requested material no er warrants classification, it shall declassified and made promptly lable to the requester, if not otherexempt from disclosure under 5 C. 552(b) (Freedom of Information or other provision of law. If the mation may not be released in Le or in part the requester shall be m a brief statement as to the reafor denial, a notice of the right to al the determination of the Classiion Review Committee, and a nothat such an appeal must be filed the Foundation within 60 days in to be considered.

When the request relates to a docmt given derivative classification ne Foundation or originated by anagency, the request and the docuwill be forwarded to the originaof the source document, and the estor notified of such referral.

Employees presently cleared for 58 to classified information are enaged to challenge classification in s where there is reasonable cause lieve that information is classified cessarily, improperly, or for an inopriate period of time. Such chales should be brought to the attenof the Security Officer (Informawho will act thereon within 30 informing the challenger of acs taken. Requests for confidentialwill be honored.

8 Access to classified materials. person may be given access to sified information unless that perhas been determined to be trusthy and unless access is essential to accomplishment of lawful and auized Government purposes.

.9 Access by historical researchers and former Presidential appointees.

e requirement in §601.8 that access assified information may be grantnly as is essential to the accomment of lawful and authorized ernment purposes may be waived ersons who are engaged in historiresearch projects, or previously occupied policymaking positions which they were appointed by the sident, provided they execute writ

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in grants Status Repo

sport); (2)

the SF-271

for Reimbu

ant report).

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Administrative requirements
those matters common to grants in
general, such as financial management,
kinds and frequency of reports, and re-
tention of records. These are distin-
guished from programmatic require
ments, which concern matters that can
be treated only on a program-by-pro-
gram or grant-by-grant basis, such as
kinds of activities that can be sup
ported by grants under a particular
program.

As used in this part: Accrued expenditures mean the charges incurred by the grantee during a given period requiring the provision of funds for

(1) Goods and other tangible property received:

(2) Services performed by employees, contractors, subgrantees, subcontractors, and other payees; and

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Awarding agency means (1) with respect to a grant, the Federal agency, and (2) with respect to a subgrant, the party that awarded the subgrant.

(3) Other amounts becoming owed under programs for which no current services or performance is required, Buch as annuities, insurance claims, and other benefit payments.

Accrued income means the sum of:

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Cash contributions means the grantee's cash outlay, including the outlaydi of money contributed to the grantee or the for subgrantee by other public agencies and institutions, and private organiza tions and individuals. When authorized by Federal legislation. Federal funds received from other assistance agreements may be considered as grantee or subgrantee cash contributions.

(1) Earnings during a given period from services performed by the grantee and goods and other tangible property delivered to purchasers, and

(2) Amounts becoming owed to the grantee for which no current services or performance is required by the grantee.

Contract means (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.

Acquisition cost of an item of purchased equipment means the net invoice unit price of the property includ

Cost sharing or matching means 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 Govern

ment.

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.

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tangible.

nonexpendable, personal property hav

ing a useful life of more than one year and an acquisition cost of $5,000 or

per unit. A grantee may use its definition of equipment provided such definition would at least ine all equipment defined above. penditure report means: (1) For nontruction grants, the SF-269 "Fiial Status Report" (or other equiv= report); (2) for construction Es, the SF-271 "Outlay Report and est for Reimbursement" (or other =alent report).

erally recognized Indian tribal govent means the governing body or a Enmental agency of any Indian band, nation, or other organized

or community (including any we village as defined in section 3 of Alaska Native Claims Settlement 85 Stat. 688) certified by the Secy of the Interior as eligible for the al programs and services provided Em through the Bureau of Indian

rs.

ernment means a State or local Enment or a federally recognized _n tribal government.

nt means an award of financial asnce, including cooperative agree-s, in the form of money, or propin lieu of money, by the Federal rnment to an eligible grantee. The does not include technical assistwhich provides services instead of ey, or other assistance in the form venue sharing, loans, loan guaraninterest subsidies, insurance, or Et appropriations. Also, the term not include assistance, such as a wship or other lump sum award, h the grantee is not required to ac

t for.

antee means the government to h a grant is awarded and which is untable for the use of the funds ided. The grantee is the entire entity even if only a particular ponent of the entity is designated me grant award document.

cal government means a county, icipality, city, town, township, public authority (including any ic and Indian housing agency er the United States Housing Act of school district, special district, astate district, council of governts (whether or not incorporated as onprofit corporation under state 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 or a future period.

OMB means 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 contributions applied, and the new increase (or decrease) in the amounts owed by the grantee for goods and other property received, for services performed by employees, contractors, subgrantees, subcontractors, and other payees, and other amounts becoming owed under programs for which no current services or performance are required, such as annuities, insurance claims, and other benefit payments.

Percentage of completion method refers to a system under which payments are made for construction work according to the percentage of completion of the work, rather than to the grantee's cost incurred.

Prior approval means documentation evidencing consent prior to incurring specific cost.

Real property means land, including land improvements, structures and appurtenances thereto, excluding movable machinery and equipment.

Share, when referring to the awarding agency's portion of real property, equipment or supplies, means the same percentage as the awarding agency's portion of the acquiring party's total costs under the grant to which the acquisition costs under the grant to which the acquisition cost of the property was charged. Only costs are to be

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counted-not the value of third-party in-kind contributions.

State means any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State exclusive of local governments. The term does not include any public and Indian housing agency under United States Housing Act of 1937.

Subgrant means an award of financial assistance in the form of money, or property in lieu of money, made under a grant by a grantee to an eligible subgrantee. The term includes financial assistance when provided by contractual legal agreement, but does not include procurement purchases, nor does it include any form of assistance which is excluded from the definition of grant in this part.

Subgrantee means the government or other legal entity to which a subgrant is awarded and which is accountable to the grantee for the use of the funds provided.

Supplies means all tangible personal property other than equipment as defined in this part.

competing or noncompeting continu-
ation, renewal, extension, or supple-
mental award; or (4) voiding of a grant
upon determination that the award was
obtained fraudulently, or was other-
wise illegal or invalid from inception.
Terms of a grant or subgrant mean all
requirements of the grant or subgrant,
whether in statute, regulations, or the
award document.

Suspension means depending on the context, either (1) temporary withdrawal of the authority to obligate grant funds pending corrective action by the grantee or subgrantee or a decision to terminate the grant, or (2) an action taken by a suspending official in accordance with agency regulations implementing E.O. 12549 to immediately exclude a person from participating in grant transactions for a period, pending completion of an investigation and such legal or debarment proceedings as may ensue.

Third party in-kind contributions mean property or services which benefit a federally assisted project or program and which are contributed by non-Fed eral third parties without charge to the grantee, or a cost-type contractor under the grant agreement.

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Unliquidated obligations for reports prepared on a cash basis mean the amount of obligations incurred by the grantee that has not been paid. For rent ports prepared on an accrued expendi ture basis, they represent the amount of obligations incurred by the grantee for which an outlay has not been recorded.

Termination means permanent withdrawal of the authority to obligate previously-awarded grant funds before that authority would otherwise expire. It also means the voluntary relinquishment of that authority by the grantee or subgrantee. Termination does not include: (1) Withdrawal of funds awarded on the basis of the grantee's underestimate of the unobligated balance in a prior period; (2) Withdrawal of the unobligated balance as of the expiration of a grant; (3) Refusal to extend a grant or award additional funds, to make a

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Unobligated balance means the portan

tion of the funds authorized by the Federal agency that has not been obli gated by the grantee and is determined by deducting the cumulative obliga tions from the cumulative funds authorized.

§ 602.4 Applicability.

(a) General. Subparts A through D of this part apply to all grants and subgrants to

governments, except where inconsistent with Federal stat utes or with regulations authorized in accordance with the exception provi sion of §602.6, 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; Pre ventive Health and Health Services: A cohol, Drug Abuse, and Mental Health Services; Maternal and Child Health Services; Social Services; Low-Income Home Energy Assistance; States' Pro gram of Community Development Block Grants for Small Cities; and Ele mentary and Secondary Education other than programs administered the Secretary of Education under titi V, Subtitle D, Chapter 2, Section 58

X of t

Secretary's discretionary grant Tam) and titles I-III of the Job ning Partnership Act of 1982 and r the Public Health Services Act ion 1921), Alcohol and Drug Abuse tment and Rehabilitation Block t and Part C of title V, Mental th Service for the Homeless Block _t).

Entitlement grants to carry out following programs of the Social rity Act:

Aid to Needy Families with Deent Children (Title IV-A of the not including the Work Incentive ram (WIN) authorized by section 19(G); HHS grants for WIN are ct to this part);

Child Support Enforcement and blishment of Paternity (Title IV-D e Act);

) Foster Care and Adoption Assist(Title IV-E of the Act);

Aid to the Aged, Blind, and Dis(Titles I, X, XIV, and XVI-AABD e Act); and

Medical

Assistance

(Medicaid) XIX of the Act) not including the e Medicaid Fraud Control program orized by section 1903(a)(6)(B). Entitlement grants under the folng programs of The National ol Lunch Act:

School Lunch (section 4 of the

Commodity Assistance (section 6
e Act).

) Special Meal Assistance (section
the Act),

O Summer Food Service for Chil-
(section 13 of the Act), and

Child Care Food Program (section the Act). Entitlement grants under the folng programs of The Child NutriAct of 1966:

Special Milk (section 3 of the Act),

School Breakfast (section 4 of the

Entitlement grants for State Adstrative expenses under The Food mp Act of 1977 (section 16 of the

A grant for an experimental, pilot, emonstration project that is also Dorted by a grant listed in paraoh (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. 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 § 602.4(a) (3) through (8) are subject to Subpart E.

$602.5 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 § 602.6.

§ 602.6 Additions and exceptions.

(a) For classes of grants and grantees subject to this part, 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 OMB.

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

Subpart B-Pre-Award
Requirements

§ 602.10 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)

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