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to that specific contract for the purpose of making audit, examination, excerpts, and transcriptions.

(11) Retention of all required records for three years after grantees or subgrantees make final payments and all other pending matters are closed.

(12) Compliance with all applicable standards, orders, or requirements issued under section 306 of the Clear Air Act (42 U.S.C. 1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR part 15) (Contracts, subcontracts, and subgrants of amounts in excess of $100,000).

(13) Mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94–163).

(2) Termination for cause and for convenience by the grantee or subgrantee including the manner by which it will be effected and the basis for settlement (All contracts in excess of $10,000).

(3) Compliance with Executive Order 11246 of September 24, 1965 entitled “Equal Employment Opportunity," as amended by Executive Order 11375 of October 13, 1967 and as supplemented in Department of Labor regulations (41 CFR part 60) (All construction contracts awarded in excess of $10,000 by grantees and their contractors or subgrantees).

(4) Compliance with the Copeland "Anti-Kickback" Act (18 U.S.C. 874) as supplemented in Department of Labor regulations (29 CFR part 3) (All contracts and subgrants for construction or repair).

(5) Compliance with the Davis-Bacon Act (40 U.S.C. 2769 to a-7) as supplemented by Department of Labor regulations (29 CFR part 5) (Construction contracts in excess of $2,000 awarded by grantees and subgrantees when required by Federal grant program legis lation).

(6) Compliance with sections 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-330) as supplemented by Department of Labor regulations (29 CFR part 5). (Construction contracts awarded by grantees and subgrantees in excess of $2.000. and in excess of $2,500 for other contracts which involve the employment of mechanics or laborers)

(7) Notice of awarding agency requirements and regulations pertaining to reporting.

(8) Notice of awarding agency requirements and regulations pertaining to patent rights with respect to any discovery or invention which arises or is developed in the course of or under such contract.

(9) Awarding egency requirements and regulations pertaining to copyrights and rights in data.

(10) Access by the grantee, the subgrantee, the Federal grantor agency, the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers, and records of the contractor which are directly pertinent

$1183.37 Subgrants.

(a) States. States shall follow state law and procedures when awarding and administering subgrants (whether on a cost reimbursement or fixed amount basis) of financial assistance to local and Indian tribal governments. States shall:

(1) Ensure that every subgrant includes any clauses required by Federal statute and executive orders and their implementing regulations;

(2) Ensure that subgrantees are aware of requirements imposed upon them by Federal statute and regulation;

(3) Ensure that a provision for compliance with $1183.42 is placed in every cost reimbursement subgrant; and

(4) Conform any advances of grant funds to subgrantees substantially to the same standards of timing and amount that apply to cash advances by Federal agencies.

(b) All other grantees. All other grantees shall follow the provisions of this part which are applicable to awarding agencies when awarding and administering subgrants (whether on a cost reimbursement or fixed amount basis) of financial assistance to local and Indian tribal governments. Grantees shall:

(1) Ensure that every subgrant in period. The final performance report cludes a provision for compliance with will be due 90 days after the expiration this part;

or termination of grant support. If a (2) Ensure that every subgrant in justified request is submitted by a cludes any clauses required by Federal grantee, the Federal agency may exstatute and executive orders and their tend the due date for any performance implementing regulations; and

report. Additionally, requirements for ) Ensure that subgrantees are unnecessary performance reports may aware of requirements imposed upon be waived by the Federal agency. them by Federal statutes and regula (2) Performance reports will contain, tions.

for each grant, brief information on the (c) Exceptions. By their own terms, following: certain provisions of this part do not

(1) A comparison of actual accomapply to the award and administration plishments to the objectives estabof subgrants:

lished for the period. Where the output (1) Section 1183.10;

of the project can be quantified, a com(2) Section 1183.11;

putation of the cost per unit of output (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 $1183.21; and

(ii) The reasons for slippage if estab(4) Section 1183.50.

lished objectives were not met. REPORTS, RECORDS, RETENTION, AND

(iii) Additional pertinent information ENFORCEMENT

including, when appropriate, analysis

and explanation of cost overruns or 81183.40 Monitoring and reporting high unit costs. program performance.

(3) Grantees will not be required to (a) Monitoring by grantees. Grantees

submit more than the original and two are responsible for managing the day

copies of performance reports. to-day operations of grant and

(4) Grantees will adhere to the standsubgrant supported activities. Grantees

ards in this section in prescribing permust monitor grant and subgrant sup

formance reporting requirements for ported activities to assure compliance

subgrantees. with applicable Federal requirements

(c) Construction performance reports. and that performance goals are being For the most part, on-site technical inachieved. Grantee monitoring must spections and certified percentage-ofcover each program, function or activ completion data are relied on heavily ity.

by Federal agencies to monitor (b) Nonconstruction performance re progress under construction grants and ports. The Federal agency may, if it de subgrants. The Federal agency will recides that performance information quire additional formal performance available from subsequent applications reports only when considered neccontains sufficient information to essary, and never more frequently than meet its programmatic needs, require quarterly. 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.

(2) Favorable developments which en- dite or contribute to the accuracy of able meeting time schedules and objec- reporting. Federal agencies may accept tives sooner or at less cost than antici- the required information from grantees pated or producing more beneficial re- in machine usable format or computer sults than originally planned.

printouts instead of prescribed forms. (e) Federal agencies may make site (6) Federal agencies may waive any visits as warranted by program needs. report required by this section if not

(1) Waivers, extensions. (1) Federal needed. agencies may waive any performance

(7) Federal agencies may extend the report required by this part if not need

due date of any financial report upon ed.

receiving a justified request from a (2) The grantee may waive any per

grantee. formance report from a subgrantee

(b) Financial Status Report—(1) Form. when not needed. The grantee may ex

Grantees will use Standard Form 269 or tend the due date for any performance

269A, Financial Status Report, to rereport from a subgrantee if the grantee

port the status of funds for all nonwill still be able to meet its perform

construction grants and for construcance reporting obligations to the Federal agency.

tion grants when required in accord

ance with paragraph $1183.41(e)(2)(iii) $ 1183.41 Financial reporting.

of this section.

(2) Accounting basis. Each grantee will (a) General. (1) Except as provided in paragraphs (a) (2) and (5) of this sec

report program outlays and program

income on a cash or accrual basis as tion, grantees will use only the forms

prescribed by the awarding agency. If specified in paragraphs (a) through (e) of this section, and such supple

the Federal agency requires accrual in

formation and the grantee's accounting mentary or other forms as may from

records are not normally kept on the time to time be authorized by OMB,

accural basis, the grantee shall not be for: (i) Submitting financial reports to

required to convert its accounting sysFederal agencies, or

tem but shall develop such accrual in(ii) Requesting advances or reim

formation through and analysis of the bursements when letters of credit are

documentation on hand. not used.

(3) Frequency. The Federal agency (2) Grantees need not apply the forms may prescribe the frequency of the represcribed in this section in dealing port for each project or program. Howwith their subgrantees. However, ever, the report will not be required grantees shall not impose more burden

more frequently than quarterly. If the some requirements on subgrantees.

Federal agency does not specify the (3) Grantees shall follow all applica frequency of the report, it will be subble standard and supplemental Federal mitted annually. A final report will be agency instructions approved by OMB required upon expiration or termito the extend required under the Paper nation of grant support. work Reduction Act of 1980 for use in (4) Due date. When reports are reconnection with forms specified in quired on a quarterly or semiannual paragraphs (b) through (e) of this sec- basis, they will be due 30 days after the tion. Federal agencies may issue sub- reporting period. When required on an stantive supplementary instructions annual basis, they will be due 90 days only with the approval of OMB. Federal after the grant year. Final reports will agencies may shade out or instruct the be due 90 days after the expiration or grantee to disregard any line item that termination of grant support. the Federal agency finds unnecessary (c) Federal Cash Transactions Reportfor its decisionmaking purposes.

(1) Form. (i) For grants paid by letter or (4) Grantees will not be required to credit, Treasury check advances or submit more than the original and two electronic transfer of funds, the grantcopies of forms required under this ee will submit the Standard Form 272, part.

Federal Cash Transactions Report, and (5) Federal agencies may provide when necessary, its continuation sheet, computer outputs to grantees to expe- Standard Form 272a, unless the terms

150-173 0-94--28

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 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 ei. ther 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 $1183.41(b)(3).

(e) Outlay report and request for reimbursement for construction programs. (1) Grants that support construction activities paid by reimbursement method.

(1) 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 $1183.41(d), instead of this form.

(ii) The frequency for submitting reimbursement requests is treated in $ 1183.41(b)(3).

(2) Grants that support construction activities paid by letter of credit, electronic funds transfer or Treasury check advance.

(i) When a construction grant is 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 Construct Programs. The Federal agency will provide any necessary special instruction. However, frequency and due date shall be governed by $1183.41(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 § 1183.41(d).

(iii) The Federal agency may substitute the Financial Status Report specified in $1183.41(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 $1183.41(b)(2).


81183.42 Retention and access re

quirements for records. (a) Applicability. (1) This section applies 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 part, program regulations or the grant agreement, or

(ii) Otherwise reasonably considered from the date of the disposition or reas pertinent to program regulations or placement or transfer at the direction the grant agreement.

of the awarding agency. (2) This section does not apply to (3) Records for income transactions records maintained by contractors or after grant or subgrant support. In some subcontractors. For a requirement to cases grantees must report income place a provision concerning records in after the period of grant support. certain kinds of contracts, see Where there is such a requirement, the $ 1183.36(i)(10).

retention period for the records per(b) Length of retention period. (1) Ex taining to the earning of the income cept as otherwise provided, records starts from the end of the grantee's fismust be retained for three years from cal year in which the income is earned. the starting date specified in paragraph (4) Indirect cost rate proposals, cost al(c) of this section.

locations plans, etc. This paragraph ap(2) If any litigation, claim, negotia- plies to the following types of docution, audit or other action involving ments, and their supporting records: the records has been started before the indirect cost rate computations or proexpiration of the 3-year period, the posals, cost allocation plans, and any records must be retained until comple similar accounting computations of tion of the action and resolution of all the rate at which a particular group of 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- computation. 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. records. The retention period for real (2) Expiration of right of access. The property and equipment records starts rights of access in this section must

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