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(c) Procedures. (1) When a decision bility, suspension or revocation of is made to revoke or discontinue sup- grants or cooperative agreements prior port of a grant or cooperative agree to the planned completion date must ment, the grants officer shall notify be reserved for those few exceptional the grantee in writing of the require situations which cannot be handled ment under the instrument for sub- any other way. mission of a final inventory report of (b) Suspension. When a grantee has Government-owned equipment.

failed to comply with the terms of a (2) When the cognizant NASA tech grant or cooperative agreement, NASA nical officer- or program manager de may, on reasonable notice to the sires that NASA take title to a major grantee, temporarily suspend the item of grantee purchased equipment, grant or cooperative agreement, withthe technical officer shall request the hold further payments, and prohibit grants officer to obtain information the grantee from incurring additional regarding the grantee's desire to obligations of funds, pending correcretain the equipment, the use to tive action by the grantee or a decision which it would be put in the absence by NASA to revoke the grant. NASA of further NASA support of the grant will allow all necessary and proper or cooperative agreement, and any costs that the grantee could not reasubstantial deleterious effects of re- sonably avoid during the period of susmoval of the equipment.

pension. (3) The grants officer shall obtain (c) Revocation. (1) NASA grants and the information and provide copies to cooperative agreements may be rethe technical officer and the Head- voked in whole or in part by NASA quarters Supply and Equipment Man- after consultation with the grantee, agement Branch for their coordinated except that a revocation shall not review and recommendation regarding affect any financial commitment acquisition of title. The technical offi- which, in the judgment of NASA, had cer shall inform the grants officer of become firm prior to the effective date the recommendation by means of a of the revocation and is otherwise apmemoradum concurred in by the propriate. Revocation is a right reSupply and Equipment Management served by NASA, which may be exerBranch.

cised at any time, and encompasses ac(4) When NASA acquires title to tions of a type commonly referred to major items of grantee purchased as “Termination for Cause” or “Termiequipment, the grants officer shall nation for Convenience." Upon revocanotify both the cognizant NASA in- tion, the grantee shall reduce, insofar stallation financial management offi- as possible, the amount of outstanding cer and supply and equipment man- commitments and repay by check agement officer so that proper entries made payable to the National Aerocan be made in financial and property nautics and Space Administration, the accounting records.

uncommitted balance of all funds that

have been paid to the grantee by 8 1260.506 Revocation.

NASA under the terms of the particu(a) Policy. When a university grant lar grant or cooperative agreement. or cooperative agreement is terminat- (2) The grantee shall communicate ed at other than its planned end date, with NASA whenever it has reason to the result can be a significant disrup- believe that circumstances may necestion in the university educational ac sitate revocation of the grant or cooptivities. NASA has established excel- erative agreement. The most common lent relationships with hundreds of cause for revocation would be the inuniversities, including a credibility for ability or failure of the grantee to responsibly understanding and han- carry out the research for which the dling the problems experienced by grant or cooperative agreement was educational institutions. This has re- made or to adhere to the other condisulted in the retention of highly quali- tions set forth in the instrument. fied investigators on NASA work and (d) Principal investigator. As a genparticipation of the most able gradu eral rule, the availability of the servate students. To maintain that credi- ices of the principal investigator named in the instrumnet is a decisive NASA's policy to delegate property adfactor in NASA's decision to award the ministration and other selected funcgrant or cooperative agreement. Con tions to the Office of Naval Research sequently, NASA should be informed (ONR), subject to limitations and conimmediately whenever it appears that ditions in paragraphs (c) through (e) the principal investigator will find it of this section. impossible to continue to direct the re (c) Procedures. Delegations will be search. (See $ 1260.501(b)). Signifi. made in generally the same fashion as cantly reduced availability of the serv delegations for contracts, using NASA ices of the principal investigator may Form 1430, "Letter of Contract Adbe grounds for revocation, unless alter ministration Delegation, General;" native arrangements are made.

NASA Form 1430A, "Letter of Con(e) University grants and coopera tract Administration Delegation, Spe. tive agreements. Before suspending or cial Instructions;" and NASA Form revoking in its entirety any grant or 1431, "Letter of Acceptance of Concooperative agreement with a universi. tract Administration Delegation.” The ty, the matter shall be coordinated Grants Officer will inform the grantee within NASA as prescribed in NMI in writing that the delegation has 8340.1, “Actions Leading to Decisions been made and provide specific into Terminate University Grants and structions regarding items which shall Contracts for the Convenience of the be sent to ONR in addition to or in Government”.

variance with existing guidance in this

Handbook or the Grant Provisions. 8 1260.507 Transfer of grants or coopera

(d) Types of administration (1) tive agreements to other institutions.

Property administration. In most inAwards cannot be transferred from stances, practical necessity dictates one institution to another. However, delegation to ONR of the performance when the principal investigator of property administration (review and changes his or her organizational af approval of grantees' property control filiation and desires support for the re procedures, and on-site surveys of search at a new location, he or she grantees' property control systems) must submit a new proposal via the and plant clearance (screening, redisappropriate officials of the new insti. tribution and disposal of Government tution. Although such a proposal will property from grantees' work sites). be reviewed in the normal manner, Therefore, the Grants Officer will every effort will be made to expedite a normally delegate these functions for decision. Regardless of the action each grant except: taken on the new proposal, final re (i) When there will be no governports on the original grant or coopera. ment-furnished property or grantee. tive agreement, describing the scientif. acquired property, or ic progress and expenditure to date, (ii) When the work will be ferwill be required if that instrument is formed in the vicinity of the sponsorrevoked.

ing NASA installation and ONR ad

ministrative services are not reason. § 1260.508 Delegation of administration. ably available. Installations will use

(a) Background. It is often advanta- standard special instruction wording geous to the government to consoli- on the Form 1430A, as provided in Exdate certain grant administration hibit A. Questions related to the delefunctions in one agency or to have one gation of property administration agency perform functions in behalf of should be posed to the Headquarters another. Some functions, such as audit Supply and Equipment Management and civil rights matters, are handled Branch, Code NIE. at the agency level, while other func (2) Close-out. (i) Grant close-out rnay tions require specific delegation on a be delegated to ONR when the grants grant-by-grant basis. This paragraph officer determines that such delegais concerned with the latter type of tion enables timely close-out, optifunction.

mizes NASA resources, or is other rise (b) Policy. Pursuant to government- cost effective. Close-out delegation wide “cross-servicing” policy, it is must be preceded or accompanied by a Property Administration and Plant 8 1260.509 Property management standClearance Delegation (if any grantee ards. purchased or Government-Furnished

(a) Definitions. The following definiproperty (GFP) is involved. Installa

tions apply for the purpose of this tions will use standard special instruc

paragraph: tion wording on the Form 1430A, as

(1) Real property. Real property provided in Exhibit A, Figure 2. Note

means land, including land improvethat paragraphs 4 (f) and (g) on the

ments, structures and appurtenances Form must be completed for each del

thereto, but excluding movable maegation. Paragraph 4(f) will normally

chinery and equipment. be marked "YES", unless an exception

(2) Personal property. Personal propin paragraph (d)(1) of this section, ap

erty means property of any kind plies.

except real property. It may be tangi(ii) Delegations consist of all func

ble-having physical existance, or intions set forth in 8 1260.514, except

tangible-having no physical existhe "final property inventory," which

tance, such as patents, inventions, and is delegated separately pursuant to

copyrights. paragraph (d)(1), of this section. Dele

(3) Nonexpendable personal propergations may be made at any time, but

ty. Nonexpendable personal property preferably no later than when the de

means tangible personal property termination to discontinue the effort

having a useful life of more than 2 is made by the technical officer (see

years and an acquisition cost of $500 $ 1260.514(a)). ONR shall obtain the

or more per unit. A recipient may use approval of the grants officer prior to

its own definition of nonexpendable initiating close-out. If the delegation is

personal property, provided the definimade after the work is completed, the

tion would at least include all tangible grants officer shall provide ONR with

personal property as defined above. copies of the final reports received. To

"Equipment” as used in this part, is expedite close-out, grants officers another term for nonexpendable pershall timely respond to ONR inquiries,

sonal property. preferably within 30 days. Grants offi.

(4) Expendable personal property. cers shall inform individuals named on

Expendable personal property refers Form 1430A, Item 4(g) (A) that a dele to all tangible personal property other gation has been made and (B) of the

than nonexpendable personal proper. » requirement for timely responses to any inquiries received directly from

(5) Excess personal property. Excess ONR.

personal property means any personal (e) Other functions. Special situa

property under the control of any Fedtions may arise in which delegation of eral agency which is not required for functions other than property admin its needs and the discharge of its reistration or close-out is appropriate.

sponsibilities, as determined by the Such cases typically affect a limited Head thereof. number of grants or a single grantee. (6) Acquisition cost of purchased In rare instances delegation to an nonexpendable personal property. ACagency other than ONR may be in quisition costs of an item of purchased order. Procedural guidance shall be

nonexpendable personal property obtained from the Procurement Policy means the net invoice unit price of the Division prior to making such delega property, including the cost of modifitions.

cations, attachments, accessories, or (f) Conformance. Existing delega auxiliary apparatus, necessary to tions which vary substantially from make the property usable for the purthe requirements of this $ 1260.508 or pose for which it was acquired. Other grants for which no delegations have charges, such as the cost of installabeen made will be brought into con- tion, transportation, taxes, duty, or formance by April 1, 1985. After April protective in-transit insurance, shall 1, 1985, ONR is not required to honor be included or excluded from the unit nonconforming delegations.

acquisition cost in accordance with the

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recipient's regular accounting prac- the existence, current utilization, and tices.

continued need for the property. (7) Exempt property. Exempt proper (4) A control system shall be in ty means that tangible personal prop- effect to ensure adequate safeguards erty acquired in whole or in part with to prevent loss, damage, or theft of Federal funds and title to which is the property. Any loss, damage, or vested in the recipient without further theft of nonexpendable property shall obligation to the Federal Government, be investigated and fully documented; except as provided in § 1260.505(b)(2). if the property was owned by the Fed

(b) Property management standards eral Government, the recipient shall for nonexpendable personal property. promptly notify the grants officer. As prescribed by OMB Circular A-110, (5) Adequate maintenance procethe recipient's property management dures shall be implemented to keep standards for nonexpendable personal the property in good condition. property shall include the following (6) Where the recipient is authorized procedural requirements:

or required to sell the property, proper (1) Property records shall be main

sales procedures shall be established tained accurately and shall include:

which would provide for competition (i) A description of the property. to the extent practicable and result in

(ii) Manufacturer's serial number, the highest possible return. model number, national stock number, (c) Exempt property. Title to nonex. or other identification number.

pendable personal property acquired (iii) Source of the property, includ. with project funds shall be vested in ing grant or other agreement number. the recipient upon acquisition unless it

(iv) Whether title vests in the recipi. is determined that to do so is not in ent or the Federal Government.

furtherance of the objectives of the (v) Acquisition date (or date re- Federal sponsoring agency. When title ceived, if the property was furnished is vested in the recipient, the recipient by the Federal Government) and cost. shall have no other obligation or ac

(vi) Percentage (at the end of the countability to the Federal Govern. budget year) of Federal participation ment for its use or disposition, except in the cost of the project or program as provided in § 1260.505(b)(2). for which the property was acquired. (Not applicable to property furnished 8 1260.510 Screening of requests for gov. by the Federal Government.)

ernment-furnished equipment. (vii) Location, use and condition of (a) Pursuant to NASA NMI 4000.2, the property and the date the infor “NASA Equipment Utilization,” an mation was reported.

agencywide Equipment Visibility (viii) Unit acquisition cost.

System (EVS) has been established to (ix) Ultimate disposition data, in identify and effect optimum use and cluding date of disposal and sales price reuse of Government-owned equipor the method used to determine cur ment items of high value and reuse porent fair market value where a recipi- tential. The EVS and this paragraph ent compensates the Federal sponsor- apply only to grantee requests for ing agency for its share.

Government-furnished equipment. Re(2) Property owned by the Federal quests for grantee acquired equipment Government must be marked to indi are neither required nor encouraged to cate Federal ownership.

be screened through the EVS. (3) A physical inventory of property (b) When a grantee requests Governshall be taken and the results recon- ment-furnished equipment of $1,000 or ciled with the property records at least more, the grants officer shall screen once every 2 years. Any differences be the item through the installation's tween quantities determined by the EVS coordinator. Screening requests physical inspection and those shown shall list the manufacturer, model in the accounting records shall be in number, description, national stock vestigated to determine the causes of number, estimated cost, and any other the difference. The recipient shall, in information deemed necessary by the connection with the inventory, verify EVS coordinator to properly identify

the item. Urgent requests may be (h) Examinations in the form of screened by telephone.

audits or internal audits. Such audits (c) When suitable equipment is lo shall be made by qualified individuals cated through the foregoing proce who are sufficiently independent of dures, the holding installation will those authorizing the expenditure of place a "freeze" on the item for 10 NASA funds to produce unbiased opinworking days, pending shipping in ions, conclusions or judgments. They structions. Extension of the freeze shall meet the independence criteria period must be requested through the along the lines of Chapter 3, Part 3, of EVS Coordinator if shipping instruc- the U.S. General Accounting Office tions cannot be furnished within the publication, "Standards for Audit of required period. (See paragraph 5.307, Government Organizations, Programs, NASA Equipment Management Activities and Functions." These exManual, NHB 4200.1.)

aminations are intended to ascertain

the effectiveness of the financial man8 1260.511 Standards for grantee's finan

agement systems and internal procecial management systems.

dures that have been established to As prescribed by OMB Circular A meet the terms and conditions of the 110, “Grants and Agreements with In agreements. It is not intended that stitutions of Higher Education, Hospi each agreement awarded to the granttals and Other Nonprofit Organiza ee be examined. Generally, examination,” the grantee's financial manage tions should be conducted on an orgament system shall provide for:

nization-wide basis to test the fiscal in(a) Accurate, current, and complete tegrity of financial transactions, as disclosure of the financial results of

well as compliance with the terms and the project.

conditions of the NASA grants and (b) Records that identify adequately

other agreements. Such tests would inthe source and application of funds for

clude an appropriate sampling of the grant or cooperative agreement.

NASA agreements. Examinations will These records shall contain informa

be conducted with reasonable frequention pertaining to the award, authori

cy, on a continuing basis or at schedzations, obligations, unobligated bal

uled intervals, usually annually, but ances, assets, outlays, and income.

not less frequently than every 2 years. (c) Effective control over and ac

The frequency of these examinations countability for all funds, property,

shall depend upon the nature, size, and other assets. The grantee shall

and the complexity of the activity. adequately safeguard all such assets

These examinations do not relieve the and shall assure that they are used

cognizant Federal audit agency of its solely for authorized purposes.

audit responsibilities, but may affect (d) Comparison of actual outlays

the frequency and scope of such with obligated amounts for the grant

audits. or cooperative agreement.

(i) A systematic method to assure (e) Procedures to minimize the time

timely and appropriate resolution of elapsing between the transfer of funds

audit findings and recommendations. from the U.S. Treasury and the disbursement by the grantee. When ad

8 1260.512 Procurement standards. vances are made by a letter-of-credit As prescribed by OMB Circular Amethod, the grantee shall make draw 110, the grantee's procurement pracdowns as close as possible to the time tices shall be subject to the following of making disbursements.

standards: (1) Procedures for determining the (a) The grantee shall maintain a reasonableness, allowability, and allo code of standards of conduct that cability of costs in accordance with the shall govern the performance of its of. provisions of 8 1260.405 of this part ficers, employees or agents engaged in and any other terms of the grant or the awarding and administration of cooperative agreement.

contracts using NASA funds. No em(g) Accounting records that are sup ployee, officer, or agent shall particiported by source documentation.

pate in the selection, award, or admin

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