[Title 40 CFR 30]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 40 - PROTECTION OF ENVIRONMENT]
[Chapter I - ENVIRONMENTAL PROTECTION AGENCY]
[Subchapter B - GRANTS AND OTHER FEDERAL ASSISTANCE]
[Part 30 - UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS]
[From the U.S. Government Printing Office]
40PROTECTION OF ENVIRONMENT12002-07-012002-07-01falseUNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS30PART 30PROTECTION OF ENVIRONMENTENVIRONMENTAL PROTECTION AGENCYGRANTS AND OTHER FEDERAL ASSISTANCE
PART 30--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS--Table of Contents
Subpart A--General
Sec.
30.1 Purpose.
30.2 Definitions.
30.3 Effect on other issuances.
30.4 Deviations.
30.5 Subawards.
30.6 Availability of OMB circulars.
Subpart B--Pre-Award Requirements
30.10 Purpose.
30.11 Pre-award policies.
30.12 Forms for applying for Federal assistance.
30.13 Debarment and suspension.
30.14 Special award conditions.
30.15 Metric system of measurement.
30.16 Resource Conservation and Recovery Act (RCRA).
30.17 Certifications and representations.
30.18 Hotel and motel fire safety.
Subpart C--Post-Award Requirements
Financial and Program Management
30.20 Purpose of financial and program management.
30.21 Standards for financial management systems.
30.22 Payment.
30.23 Cost sharing or matching.
30.24 Program income.
30.25 Revision of budget and program plans.
30.26 Non-Federal audits.
30.27 Allowable costs.
30.28 Period of availability of funds.
Property Standards
30.30 Purpose of property standards.
30.31 Insurance coverage.
30.32 Real property.
30.33 Federally-owned and exempt property.
30.34 Equipment.
30.35 Supplies and other expendable property.
30.36 Intangible property.
30.37 Property trust relationship.
Procurement Standards
30.40 Purpose of procurement standards.
30.41 Recipient responsibilities.
30.42 Codes of conduct.
30.43 Competition.
30.44 Procurement procedures.
30.45 Cost and price analysis.
30.46 Procurement records.
30.47 Contract administration.
30.48 Contract provisions.
Reports and Records
30.50 Purpose of reports and records.
30.51 Monitoring and reporting program performance.
30.52 Financial reporting.
30.53 Retention and access requirements for records.
30.54 Quality assurance.
Termination and Enforcement
30.60 Purpose of termination and enforcement.
30.61 Termination.
30.62 Enforcement.
30.63 Disputes.
Subpart D--After-the-Award Requirements
30.70 Purpose.
30.71 Closeout procedures.
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30.72 Subsequent adjustments and continuing responsibilities.
30.73 Collection of amounts due.
Appendix to Part 30--Contract Provisions
Authority: 7 U.S.C. 135 et seq.; 15 U.S.C. 2601 et seq.; 33 U.S.C.
1251 et seq.; 42 U.S.C. 241, 242b, 243, 246, 300f, 300j-1, 300j-2, 300j-
3, 1857 et seq., 6901 et seq., 7401 et seq., 9601 et seq.; OMB Circular
A-110 (64 FR 54926, October 8, 1999).
Source: 61 FR 6067, Feb. 15, 1996, unless otherwise noted.
Subpart A--General
Sec. 30.1 Purpose.
This subpart establishes uniform administrative requirements for
Federal grants and agreements awarded to institutions of higher
education, hospitals, and other non-profit organizations. The
Environmental Protection Agency (EPA) may not impose additional or
inconsistent requirements, except as provided in Secs. 30.4, and 30.14
or unless specifically required by Federal statute or Executive Order.
Non-profit organizations that implement Federal programs for the States
are also subject to State requirements.
Sec. 30.2 Definitions.
(a) Accrued expenditures means the charges incurred by the recipient
during a given period requiring the provision of funds for:
(1) Goods and other tangible property received;
(2) Services performed by employees, contractors, subrecipients, and
other payees; and
(3) Other amounts becoming owed under programs for which no current
services or performance is required.
(b) Accrued income means the sum of:
(1) Earnings during a given period from;
(i) Services performed by the recipient; and
(ii) Goods and other tangible property delivered to purchasers; and
(2) Amounts becoming owed to the recipient for which no current
services or performance is required by the recipient.
(c) Acquisition cost of equipment means the net invoice price of the
equipment, including the cost of modifications, attachments,
accessories, or auxiliary apparatus necessary to make the property
usable for the purpose for which it was acquired. Other charges, such as
the cost of installation, transportation, taxes, duty or protective in-
transit insurance, shall be included or excluded from the unit
acquisition cost in accordance with the recipient's regular accounting
practices.
(d) Advance means a payment made by Treasury check or other
appropriate payment mechanism to a recipient upon its request either
before outlays are made by the recipient or through the use of
predetermined payment schedules.
(e) Award means financial assistance that provides support or
stimulation to accomplish a public purpose. Awards include grants and
other agreements in the form of money or property in lieu of money, by
the Federal Government to an eligible recipient. The term does not
include: technical assistance, which provides services instead of money;
other assistance in the form of loans, loan guarantees, interest
subsidies, or insurance; direct payments of any kind to individuals;
and, contracts which are required to be entered into and administered
under procurement laws and regulations.
(f) Cash contributions means the recipient's cash outlay, including
the outlay of money contributed to the recipient by third parties.
(g) Closeout means the process by which a Federal awarding agency
determines that all applicable administrative actions and all required
work of the award have been completed by the recipient and Federal
awarding agency.
(h) Contract means a procurement contract under an award or
subaward, and a procurement subcontract under a recipient's or
subrecipient's contract.
(i) Cost sharing or matching means that portion of project or
program costs not borne by the Federal Government.
(j) Date of completion means the date on which all work under an
award is completed or the date on the award document, or any supplement
or amendment thereto, on which Federal sponsorship ends.
(k) Disallowed costs means those charges to an award that the
Federal
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awarding agency determines to be unallowable, in accordance with the
applicable Federal cost principles or other terms and conditions
contained in the award.
(l) Equipment means tangible nonexpendable personal property
including exempt property charged directly to the award having a useful
life of more than one year and an acquisition cost of $5000 or more per
unit. However, consistent with recipient policy, lower limits may be
established.
(m) Excess property means property under the control of any Federal
awarding agency that, as determined by the head thereof, is no longer
required for its needs or the discharge of its responsibilities.
(n) Exempt property means tangible personal property acquired in
whole or in part with Federal funds, where the Federal awarding agency
has statutory authority to vest title in the recipient without further
obligation to the Federal Government. An example of exempt property
authority is contained in the Federal Grant and Cooperative Agreement
Act (31 U.S.C. 6306), for property acquired under an award to conduct
basic or applied research by a non-profit institution of higher
education or non-profit organization whose principal purpose is
conducting scientific research.
(o) Federal awarding agency means the Federal agency that provides
an award to the recipient.
(p) Federal funds authorized means the total amount of Federal funds
obligated by the Federal Government for use by the recipient. This
amount may include any authorized carryover of unobligated funds from
prior funding periods when permitted by agency regulations or agency
implementing instructions.
(q) Federal share of real property, equipment, or supplies means
that percentage of the property's acquisition costs and any improvement
expenditures paid with Federal funds.
(r) Funding period means the period of time when Federal funding is
available for obligation by the recipient.
(s) Intangible property and debt instruments means, but is not
limited to, trademarks, copyrights, patents and patent applications and
such property as loans, notes and other debt instruments, lease
agreements, stock and other instruments of property ownership, whether
considered tangible or intangible.
(t) Obligations means the amounts of orders placed, contracts and
grants awarded, services received and similar transactions during a
given period that require payment by the recipient during the same or a
future period.
(u) Outlays or expenditures means 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 cash disbursements for
direct charges for goods and services, the amount of indirect expense
charged, the value of third party in-kind contributions applied and the
amount of cash advances and payments made to subrecipients. For reports
prepared on an accrual basis, outlays are the sum of cash disbursements
for direct charges for goods and services, the amount of indirect
expense incurred, the value of in-kind contributions applied, and the
net increase (or decrease) in the amounts owed by the recipient for
goods and other property received, for services performed by employees,
contractors, subrecipients and other payees and other amounts becoming
owed under programs for which no current services or performance are
required.
(v) Personal property means property of any kind except real
property. It may be tangible, having physical existence, or intangible,
having no physical existence, such as copyrights, patents, or
securities.
(w) Prior approval means written approval by an authorized official
evidencing prior consent.
(x) Program income means gross income earned by the recipient that
is directly generated by a supported activity or earned as a result of
the award (see exclusions in Sec. 30.24 (e) and (h)). Program income
includes, but is not limited to, income from fees for services
performed, the use or rental of real or personal property acquired under
federally-funded projects, the sale of commodities or items fabricated
under an award, license fees and royalties on patents and copyrights,
and interest on loans made with award funds. Interest
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earned on advances of Federal funds is not program income. Except as
otherwise provided in Federal awarding agency regulations or the terms
and conditions of the award, program income does not include the receipt
of principal on loans, rebates, credits, discounts, etc., or interest
earned on any of them.
(y) Project costs means all allowable costs, as set forth in the
applicable Federal cost principles, incurred by a recipient and the
value of the contributions made by third parties in accomplishing the
objectives of the award during the project period.
(z) Project period means the period established in the award
document during which Federal sponsorship begins and ends.
(aa) Property means, unless otherwise stated, real property,
equipment, intangible property and debt instruments.
(bb) Real property means land, including land improvements,
structures and appurtenances thereto, but excludes movable machinery and
equipment.
(cc) Recipient means an organization receiving financial assistance
directly from Federal awarding agencies to carry out a project or
program. The term includes public and private institutions of higher
education, public and private hospitals, and other quasi-public and
private non-profit organizations such as, but not limited to, community
action agencies, research institutes, educational associations, and
health centers. The term may include commercial organizations, foreign
or international organizations (such as agencies of the United Nations)
which are recipients, subrecipients, or contractors or subcontractors of
recipients or subrecipients at the discretion of the Federal awarding
agency. The term does not include government-owned contractor-operated
facilities or research centers providing continued support for mission-
oriented, large-scale programs that are government-owned or controlled,
or are designated as federally-funded research and development centers.
(dd) Research and development means all research activities, both
basic and applied, and all development activities that are supported at
universities, colleges, and other non-profit institutions. ``Research''
is defined as a systematic study directed toward fuller scientific
knowledge or understanding of the subject studied. ``Development'' is
the systematic use of knowledge and understanding gained from research
directed toward the production of useful materials, devices, systems, or
methods, including design and development of prototypes and processes.
The term research also includes activities involving the training of
individuals in research techniques where such activities utilize the
same facilities as other research and development activities and where
such activities are not included in the instruction function.
(ee) Small award means a grant or cooperative agreement not
exceeding the small purchase threshold fixed at 41 U.S.C. 403(11)
(currently $100,000).
(ff) Subaward means an award of financial assistance in the form of
money, or property in lieu of money, made under an award by a recipient
to an eligible subrecipient or by a subrecipient to a lower tier
subrecipient. The term includes financial assistance when provided by
any legal agreement, even if the agreement is called a contract, but
does not include procurement of goods and services nor does it include
any form of assistance which is excluded from the definition of
``award'' in paragraph (e) of this section.
(gg) Subrecipient means the legal entity to which a subaward is made
and which is accountable to the recipient for the use of the funds
provided. The term may include foreign or international organizations
(such as agencies of the United Nations) at the discretion of the
Federal awarding agency.
(hh) Supplies means all personal property excluding equipment,
intangible property, and debt instruments as defined in this section,
and inventions of a contractor conceived or first actually reduced to
practice in the performance of work under a funding agreement (``subject
inventions''), as defined in 37 CFR part 401, ``Rights to Inventions
Made by Nonprofit Organizations
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and Small Business Firms Under Government Grants, Contracts, and
Cooperative Agreements.''
(ii) Suspension means an action by a Federal awarding agency that
temporarily withdraws Federal sponsorship under an award, pending
corrective action by the recipient or pending a decision to terminate
the award by the Federal awarding agency. Suspension of an award is a
separate action from suspension under Federal agency regulations
implementing Executive Orders 12549 and 12689, ``Debarment and
Suspension.''
(jj) Termination means the cancellation of Federal sponsorship, in
whole or in part, under an agreement at any time prior to the date of
completion.
(kk) Third party in-kind contributions means the value of non-cash
contributions provided by non-Federal third parties. Third party in-kind
contributions may be in the form of real property, equipment, supplies
and other expendable property, and the value of goods and services
directly benefiting and specifically identifiable to the project or
program.
(ll) Unliquidated obligations, for financial reports prepared on a
cash basis, means the amount of obligations incurred by the recipient
that have not been paid. For reports prepared on an accrued expenditure
basis, they represent the amount of obligations incurred by the
recipient for which an outlay has not been recorded.
(mm) Unobligated balance means the portion of the funds authorized
by the Federal awarding agency that has not been obligated by the
recipient and is determined by deducting the cumulative obligations from
the cumulative funds authorized.
(nn) Unrecovered indirect cost means the difference between the
amount awarded and the amount which could have been awarded under the
recipient's approved negotiated indirect cost rate.
(oo) Working capital advance means a procedure where by funds are
advanced to the recipient to cover its estimated disbursement needs for
a given initial period.
Sec. 30.3 Effect on other issuances.
For awards subject to Circular A-110, all administrative
requirements of codified program regulations, program manuals, handbooks
and other nonregulatory materials which are inconsistent with the
requirements of Circular A-110 shall be superseded, except to the extent
they are required by statute, or authorized in accordance with the
deviations provision in Sec. 30.4.
Sec. 30.4 Deviations.
The Office of Management and Budget (OMB) may grant exceptions for
classes of grants or recipients subject to the requirements of Circular
A-110 when exceptions are not prohibited by statute. However, in the
interest of maximum uniformity, exceptions from the requirements of
Circular A-110 shall be permitted only in unusual circumstances. EPA may
apply more restrictive requirements to a class of recipients when
approved by OMB. EPA may apply less restrictive requirements when
awarding small awards, except for those requirements which are
statutory. Exceptions on a case-by-case basis may also be made by EPA.
Sec. 30.5 Subawards.
Unless sections of Circular A-110 specifically exclude subrecipients
from coverage, the provisions of Circular A-110 shall be applied to
subrecipients performing work under awards if such subrecipients are
institutions of higher education, hospitals or other non-profit
organizations. State and local government subrecipients are subject to
the provisions of regulations in 40 CFR part 31 implementing the grants
management common rule, ``Uniform Administrative Requirements for Grants
and Cooperative Agreements to State and Local Governments,''.
Sec. 30.6 Availability of OMB circulars.
OMB circulars cited in this part are available from the Office of
Management and Budget (OMB) by writing to the Executive Office of the
President, Publications Service, 725 17th Street, NW., Suite 200,
Washington, DC 20503.
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Subpart B--Pre-Award Requirements
Sec. 30.10 Purpose.
Sections 30.11 through 30.18 prescribe forms and instructions and
other pre-award matters to be used in applying for Federal awards.
Sec. 30.11 Pre-award policies.
(a) Use of grants and cooperative agreements, and contracts. In each
instance, EPA shall decide on the appropriate award instrument (i.e.,
grant, cooperative agreement, or contract). The Federal Grant and
Cooperative Agreement Act (31 U.S.C. 6301-08) governs the use of grants,
cooperative agreements and contracts. A grant or cooperative agreement
shall be used only when the principal purpose of a transaction is to
accomplish a public purpose of support or stimulation authorized by
Federal statute. The statutory criterion for choosing between grants and
cooperative agreements is that for the latter, ``substantial involvement
is expected between the executive agency and the State, local
government, or other recipient when carrying out the activity
contemplated in the agreement.'' Contracts shall be used when the
principal purpose is acquisition of property or services for the direct
benefit or use of the Federal Government.
(b) Public notice and priority setting. EPA shall notify the public
of its intended funding priorities for discretionary grant programs,
unless funding priorities are established by Federal statute.
(c) By submitting an application to EPA, the applicant grants EPA
permission to share the application with technical reviewers both within
and outside the Agency.
Sec. 30.12 Forms for applying for Federal assistance.
(a) EPA shall comply with the applicable report clearance
requirements of 5 CFR part 1320, ``Controlling Paperwork Burdens on the
Public,'' with regard to all forms used by EPA in place of or as a
supplement to the Standard Form 424 (SF-424) series.
(b) Applicants shall use the SF-424 series or those forms and
instructions prescribed by EPA.
(c) For Federal programs covered by Executive Order 12372,
``Intergovernmental Review of Federal Programs,'' the applicant shall
complete the appropriate sections of the SF-424 (Application for Federal
Assistance) indicating whether the application was subject to review by
the State Single Point of Contact (SPOC). The name and address of the
SPOC for a particular State can be obtained from EPA or the Catalog of
Federal Domestic Assistance. The SPOC shall advise the applicant whether
the program for which application is made has been selected by that
State for review.
(d) If the SF-424 form is not used EPA should indicate whether the
application is subject to review by the State under Executive Order
12372.
Sec. 30.13 Debarment and suspension.
EPA and recipients shall comply with the nonprocurement debarment
and suspension regulations in 40 CFR part 32 implementing Executive
Orders 12549 and 12689, ``Debarment and Suspension.'' 40 CFR part 32
restricts subawards and contracts with certain parties that are
debarred, suspended or otherwise excluded from or ineligible for
participation in Federal assistance programs or activities.
Sec. 30.14 Special award conditions.
If an applicant or recipient: has a history of poor performance, is
not financially stable; has a management system that does not meet the
standards prescribed in Circular A-110; has not conformed to the terms
and conditions of a previous award; or is not otherwise responsible, EPA
may impose additional requirements as needed, provided that such
applicant or recipient is notified in writing as to: the nature of the
additional requirements, the reason why the additional requirements are
being imposed, the nature of the corrective action needed, the time
allowed for completing the corrective actions, and the method for
requesting reconsideration of the additional requirements imposed. Any
special conditions shall be promptly removed once the conditions that
prompted them have been corrected.
[[Page 324]]
Sec. 30.15 Metric system of measurement.
The Metric Conversion Act, as amended by the Omnibus Trade and
Competitiveness Act (15 U.S.C. 205), declares that the metric system is
the preferred measurement system for U.S. trade and commerce. The Act
requires each Federal agency to establish a date or dates in
consultation with the Secretary of Commerce, when the metric system of
measurement will be used in the agency's procurements, grants, and other
business-related activities. Metric implementation may take longer where
the use of the system is initially impractical or likely to cause
significant inefficiencies in the accomplishment of federally-funded
activities. EPA shall follow the provisions of Executive Order 12770,
``Metric Usage in Federal Government Programs.''
Sec. 30.16 Resource Conservation and Recovery Act (RCRA).
Resource Conservation and Recovery Act (RCRA) (Public Law 94-580
codified at 42 U.S.C. 6962). Under the Act, any State agency or agency
of a political subdivision of a State which is using appropriated
Federal funds must comply with Section 6002. Section 6002 requires that
preference be given in procurement programs to the purchase of specific
products containing recycled materials identified in guidelines
developed by EPA (40 CFR parts 247 through 254). Accordingly, State and
local institutions of higher education, hospitals, and non-profit
organizations that receive direct Federal awards or other Federal funds
shall give preference in their procurement programs funded with Federal
funds to the purchase of recycled products pursuant to EPA's guidelines.
Further, pursuant to Executive Order 12873 (dated October 20, 1993)
recipients are to print documents/reports prepared under an EPA award of
assistance double sided on recycled paper. This requirement does not
apply to Standard Forms. These forms are printed on recycled paper as
available through the General Services Administration.
Sec. 30.17 Certifications and representations.
Unless prohibited by statute or codified regulation, EPA will allow
recipients to submit certifications and representations required by
statute, Executive Order, or regulation on an annual basis, if the
recipients have ongoing and continuing relationships with the agency.
Annual certifications and representations shall be signed by responsible
officials with the authority to ensure recipients' compliance with the
pertinent requirements.
Sec. 30.18 Hotel and motel fire safety.
The Hotel and Motel Fire Safety Act of 1990 (Public Law 101-391)
establishes a number of fire safety standards which must be met for
hotels and motels. The law provides further that Federal funds may not
be used to sponsor a conference, meeting, or training seminar held in a
hotel or motel which does not meet the law's fire protection and control
guidelines. If necessary, the head of the Federal agency may waive this
prohibition in the public interest.
Subpart C--Post-Award Requirements
Financial and Program Management
Sec. 30.20 Purpose of financial and program management.
Sections 30.21 through 30.28 prescribe standards for financial
management systems, methods for making payments and rules for:
satisfying cost sharing and matching requirements, accounting for
program income, budget revision approvals, making audits, determining
allowability of cost, and establishing fund availability.
Sec. 30.21 Standards for financial management systems.
(a) EPA shall require recipients to relate financial data to
performance data and develop unit cost information whenever practical.
(b) Recipients' financial management systems shall provide for the
following.
(1) Accurate, current and complete disclosure of the financial
results of each federally-sponsored project or program in accordance
with the reporting requirements set forth in Sec. 30.52. If EPA requires
reporting on an accrual basis from a recipient that maintains its
records on other than an accrual
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basis, the recipient shall not be required to establish an accrual
accounting system. These recipients may develop such accrual data for
its reports on the basis of an analysis of the documentation on hand.
(2) Records that identify adequately the source and application of
funds for federally-sponsored activities. These records shall contain
information pertaining to Federal awards, authorizations, obligations,
unobligated balances, assets, outlays, income and interest.
(3) Effective control over and accountability for all funds,
property and other assets. Recipients shall adequately safeguard all
such assets and assure they are used solely for authorized purposes.
(4) Comparison of outlays with budget amounts for each award.
Whenever appropriate, financial information should be related to
performance and unit cost data.
(5) Written procedures to minimize the time elapsing between the
transfer of funds to the recipient from the U.S. Treasury and the
issuance or redemption of checks, warrants or payments by other means
for program purposes by the recipient. To the extent that the provisions
of the Cash Management Improvement Act (CMIA) (Pub. L. 101-453) govern,
payment methods of State agencies, instrumentalities, and fiscal agents
shall be consistent with CMIA Treasury-State Agreements or the CMIA
default procedures codified at 31 CFR part 205, ``Withdrawal of Cash
from the Treasury for Advances under Federal Grant and Other Programs.''
(6) Written procedures for determining the reasonableness,
allocability and allowability of costs in accordance with the provisions
of the applicable Federal cost principles and the terms and conditions
of the award.
(7) Accounting records including cost accounting records that are
supported by source documentation.
(c) Where the EPA guarantees or insures the repayment of money
borrowed by the recipient, the recipient shall provide adequate bonding
and insurance if the bonding and insurance requirements of the recipient
are not deemed adequate to protect the interest of the Federal
Government.
(d) Recipients shall obtain adequate fidelity bond coverage where
coverage to protect the Federal Government's interest is insufficient.
(e) Where bonds are required in the situations described above, the
bonds shall be obtained from companies holding certificates of authority
as acceptable sureties, as prescribed in 31 CFR part 223, ``Surety
Companies Doing Business with the United States.''
Sec. 30.22 Payment.
(a) Payment methods shall minimize the time elapsing between the
transfer of funds from the United States Treasury and the issuance or
redemption of checks, warrants, or payment by other means by the
recipients. Payment methods of State agencies or instrumentalities shall
be consistent with Treasury-State CMIA agreements or default procedures
codified at 31 CFR part 205.
(b) Recipients are to be paid in advance, provided they maintain or
demonstrate the willingness to maintain: written procedures that
minimize the time elapsing between the transfer of funds and
disbursement by the recipient; and financial management systems that
meet the standards for fund control and accountability as established in
Sec. 30.21. Cash advances to a recipient organization shall be limited
to the minimum amounts needed and be timed to be in accordance with the
actual, immediate cash requirements of the recipient organization in
carrying out the purpose of the approved program or project. The timing
and amount of cash advances shall be as close as is administratively
feasible to the actual disbursements by the recipient organization for
direct program or project costs and the proportionate share of any
allowable indirect costs.
(c) Whenever possible, advances shall be consolidated to cover
anticipated cash needs for all awards made by the EPA to the recipient.
(1) Advance payment mechanisms include, but are not limited to,
Treasury check and electronic funds transfer.
(2) Advance payment mechanisms are subject to 31 CFR part 205.
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(3) Recipients shall be authorized to submit requests for advances
and reimbursements at least monthly when electronic fund transfers are
not used.
(d) Requests for Treasury check advance payment shall be submitted
on SF-270, ``Request for Advance or Reimbursement,'' or other forms as
may be authorized by OMB. This form is not to be used when Treasury
check advance payments are made to the recipient automatically through
the use of a predetermined payment schedule or if precluded by special
instructions for electronic funds transfer.
(e) Reimbursement is the preferred method when the requirements in
paragraph (b) of this section cannot be met. EPA may also use this
method on any construction agreement, or if the major portion of the
construction project is accomplished through private market financing or
Federal loans, and the Federal assistance constitutes a minor portion of
the project.
(1) When the reimbursement method is used, EPA shall make payment
within 30 days after receipt of the billing, unless the billing is
improper.
(2) Recipients shall be authorized to submit request for
reimbursement at least monthly when electronic funds transfers are not
used.
(f) If a recipient cannot meet the criteria for advance payments and
EPA has determined that reimbursement is not feasible because the
recipient lacks sufficient working capital, EPA may provide cash on a
working capital advance basis. Under this procedure, EPA shall advance
cash to the recipient to cover its estimated disbursement needs for an
initial period generally geared to the awardee's disbursing cycle.
Thereafter, EPA shall reimburse the recipient for its actual cash
disbursements. The working capital advance method of payment shall not
be used for recipients unwilling or unable to provide timely advances to
their subrecipient to meet the subrecipient's actual cash disbursements.
(g) To the extent available, recipients shall disburse funds
available from repayments to and interest earned on a revolving fund,
program income, rebates, refunds, contract settlements, audit recoveries
and interest earned on such funds before requesting additional cash
payments.
(h) Unless otherwise required by statute, EPA shall not withhold
payments for proper charges made by recipients at any time during the
project period unless paragraph (h) (1) or (2) of this section applies.
(1) A recipient has failed to comply with the project objectives,
the terms and conditions of the award, or Federal reporting
requirements.
(2) The recipient or subrecipient is delinquent in a debt to the
United States as defined in OMB Circular A-129, ``Managing Federal
Credit Programs.'' Under such conditions, EPA may, upon reasonable
notice, inform the recipient that payments shall not be made for
obligations incurred after a specified date until the conditions are
corrected or the indebtedness to the Federal Government is liquidated.
(i) Standards governing the use of banks and other institutions as
depositories of funds advanced under awards are as follows.
(1) Except for situations described in paragraph (i)(2) of this
section, EPA shall not require separate depository accounts for funds
provided to a recipient or establish any eligibility requirements for
depositories for funds provided to a recipient. However, recipients must
be able to account for the receipt, obligation and expenditure of funds.
(2) Advances of Federal funds shall be deposited and maintained in
insured accounts whenever possible.
(j) Consistent with the national goal of expanding the opportunities
for women-owned and minority-owned business enterprises, recipients
shall be encouraged to use women-owned and minority-owned banks (a bank
which is owned at least 50 percent by women or minority group members).
(k) Recipients shall maintain advances of Federal funds in interest
bearing accounts, unless paragraph (k) (1), (2) or (3) of this section
applies.
(1) The recipient receives less than $120,000 in Federal awards per
year.
(2) The best reasonably available interest bearing account would not
be expected to earn interest in excess of $250 per year on Federal cash
balances.
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(3) The depository would require an average or minimum balance so
high that it would not be feasible within the expected Federal and non-
Federal cash resources.
(l) For those entities where CMIA and its implementing regulations
do not apply, interest earned on Federal advances deposited in interest
bearing accounts shall be remitted annually to Department of Health and
Human Services, Payment Management System, P.O. Box 6021, Rockville, MD
20852. Interest amounts up to $250 per year may be retained by the
recipient for administrative expense. State universities and hospitals
shall comply with CMIA, as it pertains to interest. If an entity subject
to CMIA uses its own funds to pay pre-award costs for discretionary
awards without prior written approval from EPA, it waives its right to
recover the interest under CMIA. In keeping with Electronic Funds
Transfer rules, (31 CFR part 206), interest should be remitted to the
HHS Payment Management System through an electronic medium such as the
FEDWIRE Deposit system. Recipients which do not have this capability
should use a check.
(m) Except as noted elsewhere in Circular A-110, only the following
forms shall be authorized for the recipients in requesting advances and
reimbursements. EPA shall not require more than an original and two
copies of these forms.
(1) SF-270, Request for Advance or Reimbursement. EPA shall adopt
the SF-270 as a standard form for all nonconstruction programs when
electronic funds transfer or predetermined advance methods are not used.
However, EPA has the option of using this form for construction programs
in lieu of the SF-271, ``Outlay Report and Request for Reimbursement for
Construction Programs.''
(2) SF-271, Outlay Report and Request for Reimbursement for
Construction Programs. EPA shall adopt the SF-271 as the standard form
to be used for requesting reimbursement for construction programs.
However, the SF-270 may be substituted when EPA determines that it
provides adequate information to meet its needs.
Sec. 30.23 Cost sharing or matching.
EPA shall not require cost sharing or matching unless required by
statute, regulation, Executive Order, or official Agency policy.
(a) All contributions, including cash and third party in-kind, shall
be accepted as part of the recipient's cost sharing or matching when
such contributions meet all of the following criteria.
(1) Are verifiable from the recipient's records.
(2) Are not included as contributions for any other federally-
assisted project or program.
(3) Are necessary and reasonable for proper and efficient
accomplishment of project or program objectives.
(4) Are allowable under the applicable cost principles.
(5) Are not paid by the Federal Government under another award,
except where authorized by Federal statute to be used for cost sharing
or matching.
(6) Are identified in the approved budget.
(7) Conform to other provisions of Circular A-110, as applicable.
(b) Unrecovered indirect costs may be included as part of cost
sharing or matching only with the prior approval of the EPA Award
Official.
(c) Values for recipient contributions of services and property
shall be established in accordance with the applicable cost principles.
If, after consultation with Agency property management personnel, the
EPA Award Official authorizes recipients to donate buildings or land for
construction or facilities acquisition projects or long-term use, the
value of the donated property for cost sharing or matching shall be the
lesser of paragraph (c) (1) or (2) of this section.
(1) The certified value of the remaining life of the property
recorded in the recipient's accounting records at the time of donation.
(2) The current fair market value. However, when there is sufficient
justification, the EPA Award Official may approve the use of the current
fair market value of the donated property, even if it exceeds the
certified value at the time of donation to the project.
(d) Volunteer services furnished by professional and technical
personnel,
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consultants, and other skilled and unskilled labor may be counted as
cost sharing or matching if the service is an integral and necessary
part of an approved project or program. Rates for volunteer services
shall be consistent with those paid for similar work in the recipient's
organization. In those instances in which the required skills are not
found in the recipient organization, rates shall be consistent with
those paid for similar work in the labor market in which the recipient
competes for the kind of services involved. In either case, paid fringe
benefits that are reasonable, allowable, and allocable may be included
in the valuation.
(e) When an employer other than the recipient furnishes the services
of an employee, these services shall be valued at the employee's regular
rate of pay (plus an amount of fringe benefits that are reasonable,
allowable, and allocable, but exclusive of overhead costs), provided
these services are in the same skill for which the employee is normally
paid.
(f) Donated supplies may include such items as expendable equipment,
office supplies, laboratory supplies or workshop and classroom supplies.
Value assessed to donated supplies included in the cost sharing or
matching share shall be reasonable and shall not exceed the fair market
value of the property at the time of the donation.
(g) The method used for determining cost sharing or matching for
donated equipment, buildings and land for which title passes to the
recipient may differ according to the purpose of the award, if paragraph
(g) (1) or (2) of this section applies.
(1) If the purpose of the award is to assist the recipient in the
acquisition of equipment, buildings or land, the total value of the
donated property may be claimed as cost sharing or matching.
(2) If the purpose of the award is to support activities that
require the use of equipment, buildings or land, normally only
depreciation or use charges for equipment and buildings may be made.
However, the full value of equipment or other capital assets and fair
rental charges for land may be allowed, provided that the EPA technical
program office, after consultation with EPA property management
personnel, has approved the charges.
(h) The value of donated property shall be determined in accordance
with the usual accounting policies of the recipient, with the following
qualifications.
(1) The value of donated land and buildings shall not exceed its
fair market value at the time of donation to the recipient as
established by an independent appraiser (e.g., certified real property
appraiser or General Services Administration representative) and
certified by a responsible official of the recipient.
(2) The value of donated equipment shall not exceed the fair market
value of equipment of the same age and condition at the time of
donation.
(3) The value of donated space shall not exceed the fair rental
value of comparable space as established by an independent appraisal of
comparable space and facilities in a privately-owned building in the
same locality.
(4) The value of loaned equipment shall not exceed its fair rental
value.
(5) The following requirements pertain to the recipient's supporting
records for in-kind contributions from third parties.
(i) Volunteer services shall be documented and, to the extent
feasible, supported by the same methods used by the recipient for its
own employees.
(ii) The basis for determining the valuation for personal service,
material, equipment, buildings and land shall be documented.
Sec. 30.24 Program income.
(a) EPA shall apply the standards set forth in this section in
requiring recipient organizations to account for program income related
to projects financed in whole or in part with Federal funds.
(b) Except as provided in paragraph (h) of this section, program
income earned during the project period shall be retained by the
recipient and, in accordance with EPA regulations or the terms and
conditions of the award, shall be used in one or more of the ways listed
in the following.
(1) Added to funds committed to the project by EPA and recipient and
used
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to further eligible project or program objectives.
(2) Used to finance the non-Federal share of the project or program.
(3) Deducted from the total project or program allowable cost in
determining the net allowable costs on which the Federal share of costs
is based.
(c) When EPA authorizes the disposition of program income as
described in paragraphs (b)(1) or (2) of this section, program income in
excess of any limits stipulated shall be used in accordance with
paragraph (b)(3) of this section.
(d) In the event that the EPA does not specify in its regulations or
the terms and conditions of the award how program income is to be used,
paragraph (b)(3) of this section shall apply automatically to all
projects or programs except research. For awards that support research,
paragraph (b)(1) of this section shall apply automatically unless EPA
indicates in the terms and conditions another alternative on the award
or the recipient is subject to special award conditions, as indicated in
Sec. 30.14.
(e) Unless EPA regulations or the terms and conditions of the award
provide otherwise, recipients shall have no obligation to the Federal
Government regarding program income earned after the end of the project
period.
(f) If authorized by EPA regulations or the terms and conditions of
the award, costs incident to the generation of program income may be
deducted from gross income to determine program income, provided these
costs have not been charged to the award.
(g) Proceeds from the sale of property shall be handled in
accordance with the requirements of the Property Standards (See
Secs. 30.30 through 30.37).
(h) Unless EPA regulations or the terms and condition of the award
provide otherwise, recipients shall have no obligation to the Federal
Government with respect to program income earned from license fees and
royalties for copyrighted material, patents, patent applications,
trademarks, and inventions produced under an award. However, Patent and
Trademark Amendments (35 U.S.C. 18) apply to inventions made under an
experimental, developmental, or research award.
Sec. 30.25 Revision of budget and program plans.
(a) The budget plan is the financial expression of the project or
program as approved during the award process. The budget shall include
both the Federal and non-Federal share. It shall be related to
performance for program evaluation purposes whenever appropriate.
(b) Recipients are required to report deviations from budget and
program plans, and request prior approvals for budget and program plan
revisions, in accordance with this section.
(c) For nonconstruction awards, unless EPA regulations provide
otherwise, recipients shall request prior written approvals from:
(1) The EPA Award Official for the following:
(i) Change in the scope or the objective of the project or program
(even if there is no associated budget revision requiring prior written
approval).
(ii) The need for additional Federal funding.
(iii) The inclusion of costs that require prior approval in
accordance with OMB Circular A-21, ``Cost Principles for Institutions of
Higher Education,'' OMB Circular A-122, ``Cost Principles for Non-Profit
Organizations,'' or 45 CFR part 74 appendix E, ``Principles for
Determining Costs Applicable to Research and Development under Grants
and Contracts with Hospitals,'' or 48 CFR part 31, ``Contract Cost
Principles and Procedures,'' as applicable.
(2) The technical program office for the following:
(i) Change in a key person specified in the application or award
document.
(ii) The absence for more than three months, or a 25 percent
reduction in time devoted to the project, by the approved project
director or principal investigator.
(iii) The transfer of amounts budgeted for indirect costs to absorb
increases in direct costs, or vice versa.
(iv) The transfer of funds allotted for training allowances (direct
payment to trainees) to other categories of expense.
(v) Unless described in the application and funded in the approved
award, the subaward, transfer or contracting out of any work under an
award. This
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provision does not apply to the purchase of supplies, material,
equipment or general support services.
(d) No other prior approval requirements for specific items may be
imposed unless a deviation has been approved by OMB.
(e) Except for requirements listed in paragraphs (c)(1)(i) and (ii)
of this section, the EPA Award Official may waive cost-related and
administrative prior written approvals required by this part and OMB
cost principles. For awards that support research, these prior approval
requirements are automatically waived unless:
(1) EPA provides otherwise in the award or agency regulation or
(2) One of the conditions in paragraph (f)(2)(i) of this section
applies.
(f) Recipients are authorized without prior approval or a waiver to:
(1) Incur pre-award costs 90 calendar days prior to award.
(i) Pre-award costs incurred more than 90 calendar days prior to
award require the prior approval of the EPA Award Official.
(ii) The applicant must include all pre-award costs in its
application.
(iii) The applicant incurs such costs at its own risk (i.e., EPA is
under no obligation to reimburse such costs if for any reason the
recipient does not receive an award or if the award is less than
anticipated and inadequate to cover such costs).
(iv) EPA will only allow pre-award costs without approval if there
are sufficient programmatic reasons for incurring the expenditures prior
to the award (e.g., time constraints, weather factors, etc.), they are
in conformance with the appropriate cost principles, and any procurement
complies with the requirements of this rule.
(2) Extend the expiration date of the award one time for up to 12
months.
(i) A one-time extension may not be initiated if:
(A) The terms and conditions of the award prohibit the extension;
(B) The extension requires additional Federal funds; or
(C) The extension involves any change in the approved objectives or
scope of the project.
(ii) For one-time extensions, the recipient must notify the EPA
Award Official in writing with the supporting reasons and revised
expiration date at least 10 days before the expiration date specified in
the award.
(iii) This one-time extension may not be exercised merely for the
purpose of using unobligated balances.
(3) Carry forward unobligated balances to subsequent funding periods
providing the recipient notifies the EPA Award Official by means of the
Financial Status Report.
(g) The EPA technical program office may, at its option, restrict
the transfer of funds among direct cost categories or programs,
functions and activities for awards in which the Federal share of the
project exceeds $100,000 and the cumulative amount of such transfers
exceeds or is expected to exceed 10 percent of the total budget as last
approved by EPA. Except as provided for at paragraph (c) of this
section, for awards in which the Federal share is less than $100,000
there are no restrictions on transfers of funds among direct cost
categories. EPA shall not permit a transfer that would cause any Federal
appropriation or part thereof to be used for purposes other than those
consistent with the original intent of the appropriation.
(h) All other changes to nonconstruction budgets, except for the
changes described in paragraph (j) of this section, do not require prior
approval.
(i) For construction awards, recipients shall request prior written
approval promptly from EPA for budget revisions whenever paragraph
(h)(1), (2) or (3) of this section applies.
(1) The revision results from changes in the scope or the objective
of the project or program.
(2) The need arises for additional Federal funds to complete the
project.
(3) A revision is desired which involves specific costs for which
prior written approval requirements may be imposed consistent with
applicable OMB cost principles listed in Sec. 30.27.
(j) No other prior approval requirements for specific items may be
imposed unless a deviation has been approved by OMB.
(k) When EPA makes an award that provides support for both
construction and nonconstruction work, EPA may require the recipient to
request prior
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approval before making any fund or budget transfers between the two
types of work supported.
(l) For both construction and nonconstruction awards, EPA shall
require recipients to notify the agency in writing promptly whenever the
amount of Federal authorized funds is expected to exceed the needs of
the recipient for the project period by more than $5000 or five percent
of the Federal award, whichever is greater. This notification shall not
be required if an application for additional funding is submitted for a
continuation award.
(m) When requesting approval for budget revisions, recipients shall
use the budget forms that were used in the application unless the EPA
indicates that a letter clearly describing the details of the request
will suffice.
(n) Within 30 calendar days from the date of receipt of the request
for budget revisions, EPA shall review the request and notify the
recipient whether the budget revisions have been approved. If the
revision is still under consideration at the end of 30 calendar days,
EPA shall inform the recipient in writing of the date when the recipient
may expect the decision.
Sec. 30.26 Non-Federal audits.
(a) Recipients and subrecipients that are institutions of higher
education or other non-profit organizations (including hospitals) shall
be subject to the audit requirements contained in the Single Audit Act
Amendments of 1996 (31 U.S.C. 7501-7507) and revised OMB Circular A-133,
``Audits of States, Local Governments, and Non-Profit Organizations.''
(b) State and local governments shall be subject to the audit
requirements contained in the Single Audit Act Amendments of 1996 (31
U.S.C. 7501-7507) and revised OMB Circular A-133, ``Audits of States,
Local Governments, and Non-Profit Organizations.''
(c) For-profit hospitals not covered by the audit provisions of
revised OMB Circular A-133 shall be subject to the audit requirements of
the Federal awarding agencies.
(d) Commercial organizations shall be subject to the audit
requirements of EPA or the prime recipient as incorporated into the
award document.
[61 FR 6067, Feb. 15, 1996, as amended at 62 FR 45939, 45944, Aug. 29,
1997]
Sec. 30.27 Allowable costs.
(a) For each kind of recipient, there is a set of Federal principles
for determining allowable costs. Allowability of costs shall be
determined in accordance with the cost principles applicable to the
entity incurring the costs. Thus, allowability of costs incurred by
State, local or federally-recognized Indian tribal governments is
determined in accordance with the provisions of OMB Circular A-87,
``Cost Principles for State and Local Governments.'' The allowability of
costs incurred by non-profit organizations is determined in accordance
with the provisions of OMB Circular A-122, ``Cost Principles for Non-
Profit Organizations.'' The allowability of costs incurred by
institutions of higher education is determined in accordance with the
provisions of OMB Circular A-21, ``Cost Principles for Educational
Institutions.'' The allowability of costs incurred by hospitals is
determined in accordance with the provisions of appendix E of 45 CFR
part 74, ``Principles for Determining Costs Applicable to Research and
Development Under Grants and Contracts with Hospitals.'' The
allowability of costs incurred by commercial organizations and those
non-profit organizations listed in Attachment C to Circular A-122 is
determined in accordance with the provisions of the Federal Acquisition
Regulation (FAR) at 48 CFR part 31. In addition, EPA's annual
Appropriations Acts may contain restrictions on the use of assistance
funds. For example, the Acts may prohibit the use of funds to support
intervention in Federal regulatory or adjudicatory proceedings.
(b) EPA will limit its participation in the salary rate (excluding
overhead) paid to individual consultants retained by recipients or by a
recipient's contractors or subcontractors to the maximum daily rate for
level 4 of the Executive Schedule unless a greater amount is authorized
by law. (Recipient's may, however, pay consultants more than this
amount.) This limitation applies to consultation services of designated
individuals with specialized skills who
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are paid at a daily or hourly rate. This rate does not include
transportation and subsistence costs for travel performed; recipients
will pay these in accordance with their normal travel reimbursement
practices. Contracts with firms for services which are awarded using the
procurement requirements in this part are not affected by this
limitation.
Sec. 30.28 Period of availability of funds.
Where a funding period is specified, a recipient may charge to the
grant only allowable costs resulting from obligations incurred during
the funding period and any pre-award costs authorized by EPA.
Property Standards
Sec. 30.30 Purpose of property standards.
Sections 30.31 through 30.37 set forth uniform standards governing
management and disposition of property furnished by the Federal
Government whose cost was charged to a project supported by a Federal
award. EPA shall require recipients to observe these standards under
awards and shall not impose additional requirements, unless specifically
required by Federal statute. The recipient may use its own property
management standards and procedures provided it observes the provisions
of Secs. 30.31 through 30.37.
Sec. 30.31 Insurance coverage.
Recipients shall, at a minimum, provide the equivalent insurance
coverage for real property and equipment acquired with Federal funds as
provided to property owned by the recipient. Federally-owned property
need not be insured unless required by the terms and conditions of the
award.
Sec. 30.32 Real property.
EPA shall prescribe requirements for recipients concerning the use
and disposition of real property acquired in whole or in part under
awards. Unless otherwise provided by statute, such requirements, at a
minimum, shall contain the following.
(a) Title to real property shall vest in the recipient subject to
the condition that the recipient shall use the real property for the
authorized purpose of the project as long as it is needed and shall not
encumber the property without approval of EPA.
(b) The recipient shall obtain written approval by EPA for the use
of real property in other federally-sponsored projects when the
recipient determines that the property is no longer needed for the
purpose of the original project. Use in other projects shall be limited
to those under federally-sponsored projects (i.e., awards) or programs
that have purposes consistent with those authorized for support by EPA.
(c) When the real property is no longer needed as provided in
paragraphs (a) and (b) of this section, the recipient shall request
disposition instructions from EPA or its successor Federal awarding
agency. EPA shall observe one or more of the following disposition
instructions.
(1) The recipient may be permitted to retain title without further
obligation to the Federal Government after it compensates the Federal
Government for that percentage of the current fair market value of the
property attributable to the Federal participation in the project.
(2) The recipient may be directed to sell the property under
guidelines provided by EPA and pay the Federal Government for that
percentage of the current fair market value of the property attributable
to the Federal participation in the project (after deducting actual and
reasonable selling and fix-up expenses, if any, from the sales
proceeds). When the recipient is authorized or required to sell the
property, proper sales procedures shall be established that provide for
competition to the extent practicable and result in the highest possible
return.
(3) The recipient may be directed to transfer title to the property
to the Federal Government or to an eligible third party provided that,
in such cases, the recipient shall be entitled to compensation for its
attributable percentage of the current fair market value of the
property.
Sec. 30.33 Federally-owned and exempt property.
(a) Federally-owned property. (1) Title to federally-owned property
remains
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vested in the Federal Government. Recipients shall submit annually an
inventory listing of federally-owned property in their custody to EPA's
property management staff. Upon completion of the award or when the
property is no longer needed, the recipient shall report the property to
EPA's property management staff for further utilization.
(2) If EPA has no further need for the property, it shall be
declared excess and reported to the General Services Administration,
unless EPA has statutory authority to dispose of the property by
alternative methods (e.g., the authority provided by the Federal
Technology Transfer Act (15 U.S.C. 3710 (I)) to donate research
equipment to educational and non-profit organizations in accordance with
Executive Order 12821, ``Improving Mathematics and Science Education in
Support of the National Education Goals.'') Appropriate instructions
shall be issued to the recipient by EPA's property management staff.
(b) Exempt property. When statutory authority exists, EPA has the
option to vest title to property acquired with Federal funds in the
recipient without further obligation to the Federal Government and under
conditions EPA considers appropriate. Such property is ``exempt
property.'' Should EPA not establish conditions, title to exempt
property upon acquisition shall vest in the recipient without further
obligation to the Federal Government.
Sec. 30.34 Equipment.
(a) Title to equipment acquired by a recipient with Federal funds
shall vest in the recipient, subject to conditions of this section.
(b) The recipient shall not use equipment acquired with Federal
funds to provide services to non-Federal outside organizations for a fee
that is less than private companies charge for equivalent services,
unless specifically authorized by Federal statute, for as long as the
Federal Government retains an interest in the equipment.
(c) The recipient shall use the equipment in the project or program
for which it was acquired as long as needed, whether or not the project
or program continues to be supported by Federal funds and shall not
encumber the property without approval of EPA. When no longer needed for
the original project or program, the recipient shall use the equipment
in connection with its other federally-sponsored activities, in the
following order of priority: Activities sponsored by EPA, then
activities sponsored by other Federal awarding agencies.
(d) During the time that equipment is used on the project or program
for which it was acquired, the recipient shall make it available for use
on other projects or programs if such other use will not interfere with
the work on the project or program for which the equipment was
originally acquired. First preference for such other use shall be given
to other projects or programs sponsored by EPA; second preference shall
be given to projects or programs sponsored by other Federal awarding
agencies. If the equipment is owned by the Federal Government, use on
other activities not sponsored by the Federal Government shall be
permissible if authorized by EPA. User charges shall be treated as
program income.
(e) When acquiring replacement equipment, the recipient may use the
equipment to be replaced as trade-in or sell the equipment and use the
proceeds to offset the costs of the replacement equipment subject to the
approval of EPA.
(f) The recipient's property management standards for equipment
acquired with Federal funds and federally-owned equipment shall include
all of the following.
(1) Equipment records shall be maintained accurately and shall
include the following information.
(i) A description of the equipment.
(ii) Manufacturer's serial number, model number, Federal stock
number, national stock number, or other identification number.
(iii) Source of the equipment, including the award number.
(iv) Whether title vests in the recipient or the Federal Government.
(v) Acquisition date (or date received, if the equipment was
furnished by the Federal Government) and cost.
(vi) Information from which one can calculate the percentage of
Federal
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participation in the cost of the equipment (not applicable to equipment
furnished by the Federal Government).
(vii) Location and condition of the equipment and the date the
information was reported.
(viii) Unit acquisition cost.
(ix) Ultimate disposition data, including date of disposal and sales
price or the method used to determine current fair market value where a
recipient compensates EPA for its share.
(2) Equipment owned by the Federal Government shall be identified to
indicate Federal ownership.
(3) A physical inventory of equipment shall be taken and the results
reconciled with the equipment records at least once every two years. Any
differences between quantities determined by the physical inspection and
those shown in the accounting records shall be investigated to determine
the causes of the difference. The recipient shall, in connection with
the inventory, verify the existence, current utilization, and continued
need for the equipment.
(4) A control system shall be in effect to insure adequate
safeguards to prevent loss, damage, or theft of the equipment. Any loss,
damage, or theft of equipment shall be investigated and fully
documented; if the equipment was owned by the Federal Government, the
recipient shall promptly notify EPA.
(5) Adequate maintenance procedures shall be implemented to keep the
equipment in good condition.
(6) Where the recipient is authorized or required to sell the
equipment, proper sales procedures shall be established which provide
for competition to the extent practicable and result in the highest
possible return.
(g) When the recipient no longer needs the equipment, the equipment
may be used for other activities in accordance with the following
standards. For equipment with a current per unit fair market value of
$5000 or more, the recipient may retain the equipment for other uses
provided that compensation is made to the original Federal awarding
agency or its successor. The amount of compensation shall be computed by
applying the percentage of Federal participation in the cost of the
original project or program to the current fair market value of the
equipment. If the recipient has no need for the equipment, the recipient
shall request disposition instructions from EPA. EPA shall determine
whether the equipment can be used to meet the agency's requirements. If
no requirement exists within that agency, the availability of the
equipment shall be reported to the General Services Administration by
EPA to determine whether a requirement for the equipment exists in other
Federal agencies. EPA shall issue instructions to the recipient no later
than 120 calendar days after the recipient's request and the following
procedures shall govern.
(1) If so instructed or if disposition instructions are not issued
within 120 calendar days after the recipient's request, the recipient
shall sell the equipment and reimburse EPA an amount computed by
applying to the sales proceeds the percentage of Federal participation
in the cost of the original project or program. However, the recipient
shall be permitted to deduct and retain from the Federal share $500 or
ten percent of the proceeds, whichever is less, for the recipient's
selling and handling expenses.
(2) If the recipient is instructed to ship the equipment elsewhere,
the recipient shall be reimbursed by the Federal Government by an amount
which is computed by applying the percentage of the recipient's
participation in the cost of the original project or program to the
current fair market value of the equipment, plus any reasonable shipping
or interim storage costs incurred.
(3) If the recipient is instructed to otherwise dispose of the
equipment, the recipient shall be reimbursed by EPA for such costs
incurred in its disposition.
(4) EPA may reserve the right to transfer the title to the Federal
Government or to a third party named by the Federal Government when such
third party is otherwise eligible under existing statutes. Such transfer
shall be subject to the following standards.
(i) The equipment shall be appropriately identified in the award or
otherwise made known to the recipient in writing.
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(ii) EPA shall issue disposition instructions within 120 calendar
days after receipt of a final inventory. The final inventory shall list
all equipment acquired with grant funds and federally-owned equipment.
If EPA fails to issue disposition instructions within the 120 calendar
day period, the recipient shall apply the standards of this section, as
appropriate.
(iii) When EPA exercises its right to take title, the equipment
shall be subject to the provisions for federally-owned equipment.
Sec. 30.35 Supplies and other expendable property.
(a) Title to supplies and other expendable property shall vest in
the recipient upon acquisition. If there is a residual inventory of
unused supplies exceeding $5000 in total aggregate value upon
termination or completion of the project or program and the supplies are
not needed for any other federally-sponsored project or program, the
recipient shall retain the supplies for use on non-Federal sponsored
activities or sell them, but shall, in either case, compensate the
Federal Government for its share. The amount of compensation shall be
computed in the same manner as for equipment.
(b) The recipient shall not use supplies acquired with Federal funds
to provide services to non-Federal outside organizations for a fee that
is less than private companies charge for equivalent services, unless
specifically authorized by Federal statute as long as the Federal
Government retains an interest in the supplies.
Sec. 30.36 Intangible property.
(a) The recipient may copyright any work that is subject to
copyright and was developed, or for which ownership was purchased, under
an award. EPA reserves a royalty-free, nonexclusive and irrevocable
right to reproduce, publish, or otherwise use the work for Federal
purposes, and to authorize others to do so.
(b) Recipients are subject to applicable regulations governing
patents and inventions, including government-wide regulations issued by
the Department of Commerce at 37 CFR part 401, ``Rights to Inventions
Made by Nonprofit Organizations and Small Business Firms Under
Government Grants, Contracts and Cooperative Agreements.''
(c) The Federal Government has the right to:
(1) Obtain, reproduce, publish or otherwise use the data first
produced under an award; and
(2) Authorize others to receive, reproduce, publish, or otherwise
use such data for Federal purposes.
(d)(1) In addition, in response to a Freedom of Information Act
(FOIA) request for research data relating to published research findings
produced under an award that were used by the Federal Government in
developing an agency action that has the force and effect of law, the
EPA shall request, and the recipient shall provide, within a reasonable
time, the research data so that they can be made available to the public
through the procedures established under the FOIA. If the EPA obtains
the research data solely in response to a FOIA request, the agency may
charge the requester a reasonable fee equaling the full incremental cost
of obtaining the research data. This fee should reflect costs incurred
by the agency, the recipient, and applicable subrecipients. This fee is
in addition to any fees the agency may assess under the FOIA (5 U.S.C.
552(a)(4)(A)).
(2) The following definitions apply for purposes of this paragraph
(d):
(i) Research data is defined as the recorded factual material
commonly accepted in the scientific community as necessary to validate
research findings, but not any of the following: preliminary analyses,
drafts of scientific papers, plans for future research, peer reviews, or
communications with colleagues. This ``recorded'' material excludes
physical objects (e.g., laboratory samples). Research data also do not
include:
(A) Trade secrets, commercial information, materials necessary to be
held confidential by a researcher until they are published, or similar
information which is protected under law; and
(B) Personnel and medical information and similar information the
disclosure of which would constitute a clearly unwarranted invasion of
personal privacy, such as information that
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could be used to identify a particular person in a research study.
(ii) Published is defined as either when:
(A) Research findings are published in a peer-reviewed scientific or
technical journal; or
(B) A Federal agency publicly and officially cites the research
findings in support of an agency action that has the force and effect of
law.
(iii) Used by the Federal Government in developing an agency action
that has the force and effect of law is defined as when an agency
publicly and officially cites the research findings in support of an
agency action that has the force and effect of law.
(e) Title to intangible property and debt instruments acquired under
an award or subaward vests upon acquisition in the recipient. The
recipient shall use that property for the originally-authorized purpose,
and the recipient shall not encumber the property without approval of
EPA. When no longer needed for the originally authorized purpose,
disposition of the intangible property shall occur in accordance with
the provisions of Sec. 30.34(g).
[61 FR 6067, Feb. 15, 1996, as amended at 65 FR 14407, 14417, Mar. 16,
2000]
Sec. 30.37 Property trust relationship.
Real property, equipment, intangible property and debt instruments
that are acquired or improved with Federal funds shall be held in trust
by the recipient as trustee for the beneficiaries of the project or
program under which the property was acquired or improved. Agencies may
require recipients to record liens or other appropriate notices of
record to indicate that personal or real property has been acquired or
improved with Federal funds and that use and disposition conditions
apply to the property.
Procurement Standards
Sec. 30.40 Purpose of procurement standards.
Sections 30.41 through 30.48 set forth standards for use by
recipients in establishing procedures for the procurement of supplies
and other expendable property, equipment, real property and other
services with Federal funds. These standards are furnished to ensure
that such materials and services are obtained in an effective manner and
in compliance with the provisions of applicable Federal statutes and
Executive Orders. No additional procurement standards or requirements
shall be imposed by EPA upon recipients, unless specifically required by
Federal statute or Executive Order or approved by OMB.
Sec. 30.41 Recipient responsibilities.
The standards contained in this part do not relieve the recipient of
the contractual responsibilities arising under its contract(s). The
recipient is the responsible authority, without recourse to EPA,
regarding the settlement and satisfaction of all contractual and
administrative issues arising out of procurements entered into in
support of an award or other agreement. This includes disputes, claims,
protests of award, source evaluation or other matters of a contractual
nature. Matters concerning violation of statute are to be referred to
such Federal, State or local authority as may have proper jurisdiction.
Sec. 30.42 Codes of conduct.
The recipient shall maintain written standards of conduct governing
the performance of its employees engaged in the award and administration
of contracts. No employee, officer, or agent shall participate in the
selection, award, or administration of a contract supported by Federal
funds if a real or apparent conflict of interest would be involved. Such
a conflict would arise when the employee, officer, or agent, any member
of his or her immediate family, his or her partner, or an organization
which employs or is about to employ any of the parties indicated herein,
has a financial or other interest in the firm selected for an award. The
officers, employees, and agents of the recipient shall neither solicit
nor accept gratuities, favors, or anything of monetary value from
contractors, or parties to subagreements. However, recipients may set
standards for situations in which the financial interest is not
substantial or the gift is an unsolicited item of nominal value. The
standards of conduct shall provide for
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disciplinary actions to be applied for violations of such standards by
officers, employees, or agents of the recipient.
Sec. 30.43 Competition.
All procurement transactions shall be conducted in a manner to
provide, to the maximum extent practical, open and free competition. The
recipient shall be alert to organizational conflicts of interest as well
as noncompetitive practices among contractors that may restrict or
eliminate competition or otherwise restrain trade. In order to ensure
objective contractor performance and eliminate unfair competitive
advantage, contractors that develop or draft specifications,
requirements, statements of work, invitations for bids and/or requests
for proposals shall be excluded from competing for such procurements.
Awards shall be made to the bidder or offeror whose bid or offer is
responsive to the solicitation and is most advantageous to the
recipient, price, quality and other factors considered. Solicitations
shall clearly set forth all requirements that the bidder or offeror
shall fulfill in order for the bid or offer to be evaluated by the
recipient. Any and all bids or offers may be rejected when it is in the
recipient's interest to do so.
Sec. 30.44 Procurement procedures.
(a) All recipients shall establish written procurement procedures.
These procedures shall provide for, at a minimum, that paragraphs (a)
(1), (2) and (3) of this section apply.
(1) Recipients avoid purchasing unnecessary items.
(2) Where appropriate, an analysis is made of lease and purchase
alternatives to determine which would be the most economical and
practical procurement for the Federal Government.
(3) Solicitations for goods and services provide for all of the
following.
(i) A clear and accurate description of the technical requirements
for the material, product or service to be procured. In competitive
procurements, such a description shall not contain features which unduly
restrict competition.
(ii) Requirements which the bidder/offeror must fulfill and all
other factors to be used in evaluating bids or proposals.
(iii) A description, whenever practicable, of technical requirements
in terms of functions to be performed or performance required, including
the range of acceptable characteristics or minimum acceptable standards.
(iv) The specific features of ``brand name or equal'' descriptions
that bidders are required to meet when such items are included in the
solicitation.
(v) The acceptance, to the extent practicable and economically
feasible, of products and services dimensioned in the metric system of
measurement.
(vi) Preference, to the extent practicable and economically
feasible, for products and services that conserve natural resources and
protect the environment and are energy efficient.
(b) Positive efforts shall be made by recipients to utilize small
businesses, minority-owned firms, and women's business enterprises,
whenever possible. Recipients of Federal awards shall take all of the
following steps to further this goal.
(1) Ensure that small businesses, minority-owned firms, and women's
business enterprises are used to the fullest extent practicable.
(2) Make information on forthcoming opportunities available and
arrange time frames for purchases and contracts to encourage and
facilitate participation by small businesses, minority-owned firms, and
women's business enterprises.
(3) Consider in the contract process whether firms competing for
larger contracts intend to subcontract with small businesses, minority-
owned firms, and women's business enterprises.
(4) Encourage contracting with consortiums of small businesses,
minority-owned firms and women's business enterprises when a contract is
too large for one of these firms to handle individually.
(5) Use the services and assistance, as appropriate, of such
organizations as the Small Business Administration and the Department of
Commerce's Minority Business Development Agency in the solicitation and
utilization of small businesses, minority-owned firms and women's
business enterprises.
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(6) If the prime contractor awards subcontracts, requiring the
contractor to take steps in paragraphs (b)(1) through (5) of this
section.
(c) The type of procuring instruments used (e.g., fixed price
contracts, cost reimbursable contracts, purchase orders, and incentive
contracts) shall be determined by the recipient but shall be appropriate
for the particular procurement and for promoting the best interest of
the program or project involved. The ``cost-plus-a-percentage-of-cost''
or ``percentage of construction cost'' methods of contracting shall not
be used.
(d) Contracts shall be made only with responsible contractors who
possess the potential ability to perform successfully under the terms
and conditions of the proposed procurement. Consideration shall be given
to such matters as contractor integrity, record of past performance,
financial and technical resources or accessibility to other necessary
resources. In certain circumstances, contracts with certain parties are
restricted by agencies' implementation of Executive Orders 12549 and
12689, ``Debarment and Suspension.''
(e) Recipients shall, on request, make available for EPA, pre-award
review and procurement documents, such as request for proposals or
invitations for bids, independent cost estimates, etc., when any of the
following conditions apply.
(1) A recipient's procurement procedures or operation fails to
comply with the procurement standards in EPA's implementation of
Circular A-110.
(2) The procurement is expected to exceed the small purchase
threshold fixed at 41 U.S.C. 403 (11) (currently $100,000) and is to be
awarded without competition or only one bid or offer is received in
response to a solicitation.
(3) The procurement, which is expected to exceed the small purchase
threshold, specifies a ``brand name'' product.
(4) The proposed award over the small purchase threshold is to be
awarded to other than the apparent low bidder under a sealed bid
procurement.
(5) A proposed contract modification changes the scope of a contract
or increases the contract amount by more than the amount of the small
purchase threshold.
Sec. 30.45 Cost and price analysis.
Some form of cost or price analysis shall be made and documented in
the procurement files in connection with every procurement action. Price
analysis may be accomplished in various ways, including the comparison
of price quotations submitted, market prices and similar indicia,
together with discounts. Cost analysis is the review and evaluation of
each element of cost to determine reasonableness, allocability and
allowability.
Sec. 30.46 Procurement records.
Procurement records and files for purchases in excess of the small
purchase threshold shall include the following at a minimum: Basis for
contractor selection; justification for lack of competition when
competitive bids or offers are not obtained; and basis for award cost or
price.
Sec. 30.47 Contract administration.
A system for contract administration shall be maintained to ensure
contractor conformance with the terms, conditions and specifications of
the contract and to ensure adequate and timely follow up of all
purchases. Recipients shall evaluate contractor performance and
document, as appropriate, whether contractors have met the terms,
conditions and specifications of the contract.
Sec. 30.48 Contract provisions.
The recipient shall include, in addition to provisions to define a
sound and complete agreement, the following provisions in all contracts.
The following provisions shall also be applied to subcontracts.
(a) Contracts in excess of the small purchase threshold shall
contain contractual provisions or conditions that allow for
administrative, contractual, or legal remedies in instances in which a
contractor violates or breaches the contract terms, and provide for such
remedial actions as may be appropriate.
(b) All contracts in excess of the small purchase threshold shall
contain
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suitable provisions for termination by the recipient, including the
manner by which termination shall be effected and the basis for
settlement. In addition, such contracts shall describe conditions under
which the contract may be terminated for default as well as conditions
where the contract may be terminated because of circumstances beyond the
control of the contractor.
(c) Except as otherwise required by statute, an award that requires
the contracting (or subcontracting) for construction or facility
improvements shall provide for the recipient to follow its own
requirements relating to bid guarantees, performance bonds, and payment
bonds unless the construction contract or subcontract exceeds $100,000.
For those contracts or subcontracts exceeding $100,000, EPA may accept
the bonding policy and requirements of the recipient, provided EPA has
made a determination that the Federal Government's interest is
adequately protected. If such a determination has not been made, the
minimum requirements shall be as follows.
(1) A bid guarantee from each bidder equivalent to five percent of
the bid price. The ``bid guarantee'' shall consist of a firm commitment
such as a bid bond, certified check, or other negotiable instrument
accompanying a bid as assurance that the bidder shall, upon acceptance
of his bid, execute such contractual documents as may be required within
the time specified.
(2) A performance bond on the part of the contractor for 100 percent
of the contract price. A ``performance bond'' is one executed in
connection with a contract to secure fulfillment of all the contractor's
obligations under such contract.
(3) A payment bond on the part of the contractor for 100 percent of
the contract price. A ``payment bond'' is one executed in connection
with a contract to assure payment as required by statute of all persons
supplying labor and material in the execution of the work provided for
in the contract.
(4) Where bonds are required in the situations described herein, the
bonds shall be obtained from companies holding certificates of authority
as acceptable sureties pursuant to 31 CFR part 223, ``Surety Companies
Doing Business with the United States.''
(d) All negotiated contracts (except those for less than the small
purchase threshold) awarded by recipients shall include a provision to
the effect that the recipient, EPA, the Comptroller General of the
United States, or any of their duly authorized representatives, shall
have access to any books, documents, papers and records of the
contractor which are directly pertinent to a specific program for the
purpose of making audits, examinations, excerpts and transcriptions.
(e) All contracts, including small purchases, awarded by recipients
and their contractors shall contain the procurement provisions of the
appendix to Circular A-110, as applicable.
Reports and Records
Sec. 30.50 Purpose of reports and records.
Sections 30.51 through 30.53 set forth the procedures for monitoring
and reporting on the recipient's financial and program performance and
the necessary standard reporting forms. They also set forth record
retention requirements.
Sec. 30.51 Monitoring and reporting program performance.
(a) Recipients are responsible for managing and monitoring each
project, program, subaward, function or activity supported by the award.
Recipients shall monitor subawards to ensure subrecipients have met the
audit requirements as delineated in Sec. 30.26.
(b) EPA shall prescribe the frequency with which the performance
reports shall be submitted. Except as provided in paragraph (f) of this
section, performance reports shall not be required more frequently than
quarterly or, less frequently than annually. Annual reports shall be due
90 calendar days after the grant year; quarterly or semi-annual reports
shall be due 30 days after the reporting period. EPA may require annual
reports before the anniversary dates of multiple year awards in lieu of
these requirements. The final performance reports are due 90 calendar
days after the expiration or termination of the award.
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(c) If inappropriate, a final technical or performance report shall
not be required after completion of the project.
(d) When required, performance reports shall generally contain, for
each award, brief information on each of the following.
(1) A comparison of actual accomplishments with the goals and
objectives established for the period, the findings of the investigator,
or both. Whenever appropriate and the output of programs or projects can
be readily quantified, such quantitative data should be related to cost
data for computation of unit costs.
(2) Reasons why established goals were not met, if appropriate.
(3) Other pertinent information including, when appropriate,
analysis and explanation of cost overruns or high unit costs.
(e) Recipients shall not be required to submit more than the
original and two copies of performance reports.
(f) Recipients shall immediately notify EPA of developments that
have a significant impact on the award-supported activities. Also,
notification shall be given in the case of problems, delays, or adverse
conditions which materially impair the ability to meet the objectives of
the award. This notification shall include a statement of the action
taken or contemplated, and any assistance needed to resolve the
situation.
(g) EPA may make site visits, as needed.
(h) EPA shall comply with clearance requirements of 5 CFR part 1320
when requesting performance data from recipients.
Sec. 30.52 Financial reporting.
(a) The following forms or such other forms as may be approved by
OMB are authorized for obtaining financial information from recipients.
(1) SF-269 or SF-269A, Financial Status Report. (i) EPA shall
require recipients to use the SF-269 or SF-269A to report the status of
funds for all nonconstruction projects or programs. However, EPA has the
option of not requiring the SF-269 or SF-269A when the SF-270, Request
for Advance or Reimbursement, or SF-272, Report of Federal Cash
Transactions, is determined to provide adequate information to meet its
needs, except that a final SF-269 or SF-269A shall be required at the
completion of the project when the SF-270 is used only for advances.
(ii) EPA shall prescribe whether the report shall be on a cash or
accrual basis. If EPA requires accrual information and the recipient's
accounting records are not normally kept on the accrual basis, the
recipient shall not be required to convert its accounting system, but
shall develop such accrual information through best estimates based on
an analysis of the documentation on hand.
(iii) EPA shall determine the frequency of the Financial Status
Report for each project or program, considering the size and complexity
of the particular project or program. However, the report shall not be
required more frequently than quarterly or less frequently than
annually. A final report shall be required at the completion of the
agreement.
(iv) EPA shall require recipients to submit the SF-269 or SF-269A
(an original and no more than two copies) no later than 30 days after
the end of each specified reporting period for quarterly and semi-annual
reports, and 90 calendar days for annual and final reports. Extensions
of reporting due dates may be approved by EPA upon request of the
recipient.
(2) SF-272, Report of Federal Cash Transactions. (i) When funds are
advanced to recipients EPA shall require each recipient to submit the
SF-272 and, when necessary, its continuation sheet, SF-272A. EPA shall
use this report to monitor cash advanced to recipients and to obtain
disbursement information for each agreement with the recipients.
(ii) EPA may require forecasts of Federal cash requirements in the
``Remarks'' section of the report.
(iii) When practical and deemed necessary, EPA may require
recipients to report in the ``Remarks'' section the amount of cash
advances received in excess of three days. Recipients shall provide
short narrative explanations of actions taken to reduce the excess
balances.
(iv) Recipients shall be required to submit not more than the
original and
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two copies of the SF-272 15 calendar days following the end of each
quarter. EPA may require a monthly report from those recipients
receiving advances totaling $1 million or more per year.
(v) EPA may waive the requirement for submission of the SF-272 for
any one of the following reasons:
(A) When monthly advances do not exceed $25,000 per recipient,
provided that such advances are monitored through other forms contained
in this section;
(B) If, in EPA's opinion, the recipient's accounting controls are
adequate to minimize excessive Federal advances; or
(C) When the electronic payment mechanisms provide adequate data.
(b) When EPA needs additional information or more frequent reports,
the following shall be observed.
(1) When additional information is needed to comply with legislative
requirements, EPA shall issue instructions to require recipients to
submit such information under the ``Remarks'' section of the reports.
(2) When EPA determines that a recipient's accounting system does
not meet the standards in Sec. 30.21, additional pertinent information
to further monitor awards may be obtained upon written notice to the
recipient until such time as the system is brought up to standard. EPA,
in obtaining this information, shall comply with report clearance
requirements of 5 CFR part 1320.
(3) EPA may shade out any line item on any report if not necessary.
(4) EPA may accept the identical information from the recipients in
machine readable format or computer printouts or electronic outputs in
lieu of prescribed formats.
(5) EPA may provide computer or electronic outputs to recipients
when such expedites or contributes to the accuracy of reporting.
Sec. 30.53 Retention and access requirements for records.
(a) This section sets forth requirements for record retention and
access to records for awards to recipients. EPA shall not impose any
other record retention or access requirements upon recipients.
(b) Financial records, supporting documents, statistical records,
and all other records pertinent to an award shall be retained for a
period of three years from the date of submission of the final
expenditure report or, for awards that are renewed quarterly or
annually, from the date of the submission of the quarterly or annual
financial report, as authorized by EPA. The only exceptions are the
following.
(1) If any litigation, claim, or audit is started before the
expiration of the 3-year period, the records shall be retained until all
litigation, claims or audit findings involving the records have been
resolved and final action taken.
(2) Records for real property and equipment acquired with Federal
funds shall be retained for 3 years after final disposition.
(3) When records are transferred to or maintained by EPA, the 3-year
retention requirement is not applicable to the recipient.
(4) Indirect cost rate proposals, cost allocations plans, etc. as
specified in paragraph (g) of this section.
(c) Copies of original records may be substituted for the original
records if authorized by EPA.
(d) EPA shall request transfer of certain records to its custody
from recipients when it determines that the records possess long term
retention value. However, in order to avoid duplicate recordkeeping, EPA
may make arrangements for recipients to retain any records that are
continuously needed for joint use.
(e) EPA, the Inspector General, Comptroller General of the United
States, or any of their duly authorized representatives, have the right
of timely and unrestricted access to any books, documents, papers, or
other records of recipients that are pertinent to the awards, in order
to make audits, examinations, excerpts, transcripts and copies of such
documents. This right also includes timely and reasonable access to a
recipient's personnel for the purpose of interview and discussion
related to such documents. The rights of access in this paragraph are
not limited to the required retention period, but shall last as long as
records are retained.
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(f) Unless required by statute, EPA shall not place restrictions on
recipients that limit public access to the records of recipients that
are pertinent to an award, except when it can be demonstrated that such
records shall be kept confidential and would have been exempted from
disclosure pursuant to the Freedom of Information Act (5 U.S.C. 552) if
the records had belonged to EPA.
(g) Indirect cost rate proposals, cost allocations plans, etc.
Paragraphs (g)(1) and (g)(2) of this section apply 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).
(1) If submitted for negotiation. If the recipient submits to EPA or
the subrecipient submits to the recipient the proposal, plan, or other
computation to form the basis for negotiation of the rate, then the 3-
year retention period for its supporting records starts on the date of
such submission.
(2) If not submitted for negotiation. If the recipient is not
required to submit to EPA or the subrecipient is not required to submit
to the recipient the proposal, plan, or other computation for
negotiation purposes, then the 3-year retention period for the proposal,
plan, or other computation and its supporting records starts at the end
of the fiscal year (or other accounting period) covered by the proposal,
plan, or other computation.
Sec. 30.54 Quality assurance.
If the project officer determines that the grantee's project
involves environmentally related measurements or data generation, the
grantee shall develop and implement quality assurance practices
consisting of policies, procedures, specifications, standards, and
documentation sufficient to produce data of quality adequate to meet
project objectives and to minimize loss of data due to out-of-control
conditions or malfunctions. The quality system must comply with the
requirements of ANSI/ASQC E4, ``Specifications and Guidelines for
Quality Systems for Environmental Data Collection and Environmental
Technology Programs'', which may be obtained from the National Technical
Information Service (NTIS), 5885 Port Royal Road, Springfield, VA 22161.
Termination and Enforcement
Sec. 30.60 Purpose of termination and enforcement.
Sections 30.61 and 30.62 set forth uniform suspension, termination
and enforcement procedures.
Sec. 30.61 Termination.
(a) Awards may be terminated in whole or in part only if paragraph
(a) (1), (2) or (3) of this section applies.
(1) By EPA, if a recipient materially fails to comply with the terms
and conditions of an award.
(2) By EPA with the consent of the recipient, in which case the two
parties shall agree upon the termination conditions, including the
effective date and, in the case of partial termination, the portion to
be terminated.
(3) By the recipient upon sending to EPA written notification
setting forth the reasons for such termination, the effective date, and,
in the case of partial termination, the portion to be terminated.
However, if EPA determines in the case of partial termination that the
reduced or modified portion of the grant will not accomplish the
purposes for which the grant was made, it may terminate the grant in its
entirety under either paragraph (a) (1) or (2) of this section.
(b) If costs are allowed under an award, the responsibilities of the
recipient referred to in Sec. 30.71(a), including those for property
management as applicable, shall be considered in the termination of the
award, and provision shall be made for continuing responsibilities of
the recipient after termination, as appropriate.
Sec. 30.62 Enforcement.
(a) Remedies for noncompliance. If a recipient materially fails to
comply with the terms and conditions of an award, whether stated in a
Federal statute, regulation, assurance, application, or notice of award,
EPA may, in addition
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to imposing any of the special conditions outlined in Sec. 30.14, take
one or more of the following actions, as appropriate in the
circumstances.
(1) Temporarily withhold cash payments pending correction of the
deficiency by the recipient or more severe enforcement action by EPA.
(2) Disallow (that is, deny both use of funds and any applicable
matching credit for) all or part of the cost of the activity or action
not in compliance.
(3) Wholly or partly suspend or terminate the current award.
(4) Withhold further awards for the project or program.
(5) Take other remedies that may be legally available.
(b) Hearings and appeals. In taking an enforcement action, EPA shall
provide the recipient an opportunity for hearing, appeal, or other
administrative proceeding to which the recipient is entitled under any
statute or regulation applicable to the action involved. EPA's Dispute
Provisions found at 40 CFR part 31, subpart F, Disputes, are applicable
to assistance awarded under the provisions of this part.
(c) Effects of suspension and termination. Costs of a recipient
resulting from obligations incurred by the recipient during a suspension
or after termination of an award are not allowable unless EPA expressly
authorizes them in the notice of suspension or termination or
subsequently. Other recipient costs during suspension or after
termination which are necessary and not reasonably avoidable are
allowable if paragraphs (c)(1) and (2) of this section apply.
(1) The costs result from obligations which were properly incurred
by the recipient before the effective date of suspension or termination,
are not in anticipation of it, and in the case of a termination, are
noncancellable.
(2) The costs would be allowable if the award were not suspended or
expired normally at the end of the funding period in which the
termination takes effect.
(d) Relationship to debarment and suspension. The enforcement
remedies identified in this section, including suspension and
termination, do not preclude a recipient from being subject to debarment
and suspension under Executive Orders 12549 and 12689 and EPA's
implementing regulations (see Sec. 30.13).
Sec. 30.63 Disputes.
(a) Disagreements should be resolved at the lowest possible level.
(b) If an agreement cannot be reached, the EPA disputes decision
official will provide a written final decision. The EPA disputes
decision official is the individual designated by the award official to
resolve disputes concerning assistance agreements. If the dispute cannot
be resolved the procedures outlined at 40 CFR part 31, subpart F, should
be followed.
Subpart D--After-the-Award Requirements
Sec. 30.70 Purpose.
Sections 30.71 through 30.73 contain closeout procedures and other
procedures for subsequent disallowances and adjustments.
Sec. 30.71 Closeout procedures.
(a) Recipients shall submit, within 90 calendar days after the date
of completion of the award, all financial, performance, and other
reports as required by the terms and conditions of the award. EPA may
approve extensions when requested by the recipient.
(b) Unless EPA authorizes an extension, a recipient shall liquidate
all obligations incurred under the award not later than 90 calendar days
after the funding period or the date of completion as specified in the
terms and conditions of the award or in agency implementing
instructions.
(c) EPA shall make prompt payments to a recipient for allowable
reimbursable costs under the award being closed out.
(d) The recipient shall promptly refund any balances of unobligated
cash that EPA has advanced or paid and that is not authorized to be
retained by the recipient for use in other projects. OMB Circular A-129
governs unreturned amounts that become delinquent debts.
(e) When authorized by the terms and conditions of the award, EPA
shall make a settlement for any upward or downward adjustments to the
Federal
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share of costs after closeout reports are received.
(f) The recipient shall account for any real and personal property
acquired with Federal funds or received from the Federal Government in
accordance with Secs. 30.31 through 30.37.
(g) In the event a final audit has not been performed prior to the
closeout of an award, EPA shall retain the right to recover an
appropriate amount after fully considering the recommendations on
disallowed costs resulting from the final audit.
Sec. 30.72 Subsequent adjustments and continuing responsibilities.
(a) The closeout of an award does not affect any of the following.
(1) The right of EPA to disallow costs and recover funds on the
basis of a later audit or other review.
(2) The obligation of the recipient to return any funds due as a
result of later refunds, corrections, or other transactions.
(3) Audit requirements in Sec. 30.26.
(4) Property management requirements in Secs. 30.31 through 30.37.
(5) Records retention as required in Sec. 30.53.
(b) After closeout of an award, a relationship created under an
award may be modified or ended in whole or in part with the consent of
EPA and the recipient, provided the responsibilities of the recipient
referred to in Sec. 30.73(a), including those for property management as
applicable, are considered and provisions made for continuing
responsibilities of the recipient, as appropriate.
Sec. 30.73 Collection of amounts due.
(a) Any funds paid to a recipient in excess of the amount to which
the recipient is finally determined to be entitled under the terms and
conditions of the award constitute a debt to the Federal Government. If
not paid within a reasonable period after the demand for payment, EPA
may reduce the debt by paragraph (a) (1), (2) or (3) of this section.
(1) Making an administrative offset against other requests for
reimbursements.
(2) Withholding advance payments otherwise due to the recipient.
(3) Taking other action permitted by statute.
(b) Except as otherwise provided by law, EPA shall charge interest
on an overdue debt in accordance with 4 CFR chapter II, ``Federal Claims
Collection Standards.''
Appendix to Part 30--Contract Provisions
All contracts awarded by a recipient, including small purchases,
shall contain the following provisions as applicable:
1. Equal Employment Opportunity--All contracts shall contain a
provision requiring compliance with Executive Order 11246, ``Equal
Employment Opportunity,'' as amended by Executive Order 11375,
``Amending Executive Order 11246 Relating to Equal Employment
Opportunity,'' and as supplemented by regulations at 41 CFR part 60,
``Office of Federal Contract Compliance Programs, Equal Employment
Opportunity, Department of Labor.''
2. Copeland ``Anti-Kickback'' Act (18 U.S.C. 874 and 40 U.S.C.
276c)--All contracts and subgrants in excess of $100,000 for
construction or repair awarded by recipients and subrecipients shall
include a provision for compliance with the Copeland ``Anti-Kickback''
Act (18 U.S.C. 874), as supplemented by Department of Labor regulations
(29 CFR part 3, ``Contractors and Subcontractors on Public Building or
Public Work Financed in Whole or in Part by Loans or Grants from the
United States''). The Act provides that each contractor or subrecipient
shall be prohibited from inducing, by any means, any person employed in
the construction, completion, or repair of public work, to give up any
part of the compensation to which he is otherwise entitled. The
recipient shall report all suspected or reported violations to EPA.
3. Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)--When
required by Federal program legislation, all construction contracts
awarded by the recipients and subrecipients of more than $2000 shall
include a provision for compliance with the Davis-Bacon Act (40 U.S.C.
276a to a-7) and as supplemented by Department of Labor regulations (29
CFR part 5, ``Labor Standards Provisions Applicable to Contracts
Governing Federally Financed and Assisted Construction''). Under this
Act, contractors shall be required to pay wages to laborers and
mechanics at a rate not less than the minimum wages specified in a wage
determination made by the Secretary of Labor. In addition, contractors
shall be required to pay wages not less than once a week. The recipient
shall place a copy of the current prevailing wage determination issued
by the Department of Labor in each solicitation and the award of a
contract shall be conditioned upon the acceptance of the
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wage determination. The recipient shall report all suspected or reported
violations to EPA.
4. Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333)-
-Where applicable, all contracts awarded by recipients in excess of
$100,000 for construction contracts and in excess of $2500 for other
contracts that involve the employment of mechanics or laborers shall
include a provision for compliance with sections 102 and 107 of the
Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), as
supplemented by Department of Labor regulations (29 CFR part 5). Under
section 102 of the Act, each contractor shall be required to compute the
wages of every mechanic and laborer on the basis of a standard work week
of 40 hours. Work in excess of the standard work week is permissible
provided that the worker is compensated at a rate of not less than 1/2
times the basic rate of pay for all hours worked in excess of 40 hours
in the work week. Section 107 of the Act is applicable to construction
work and provides that no laborer or mechanic shall be required to work
in surroundings or under working conditions which are unsanitary,
hazardous or dangerous. These requirements do not apply to the purchases
of supplies or materials or articles ordinarily available on the open
market, or contracts for transportation or transmission of intelligence.
5. Rights to Inventions Made Under a Contract or Agreement--
Contracts or agreements for the performance of experimental,
developmental, or research work shall provide for the rights of the
Federal Government and the recipient in any resulting invention in
accordance with 37 CFR part 401, ``Rights to Inventions Made by
Nonprofit Organizations and Small Business Firms Under Government
Grants, Contracts and Cooperative Agreements,'' and any implementing
regulations issued by EPA.
6. Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water
Pollution Control Act (33 U.S.C. 1251 et seq.), as amended--Contracts
and subgrants of amounts in excess of $100,000 shall contain a provision
that requires the recipient to agree to comply with all applicable
standards, orders or regulations issued pursuant to the Clean Air Act
(42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as
amended (33 U.S.C. 1251 et seq.). Violations shall be reported to the
Regional Office of the Environmental Protection Agency (EPA).
7. Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)--Contractors who
apply or bid for an award of more than $100,000 shall file the required
certification. Each tier certifies to the tier above that it will not
and has not used Federal appropriated funds to pay any person or
organization for influencing or attempting to influence an officer or
employee of any agency, a member of Congress, officer or employee of
Congress, or an employee of a member of Congress in connection with
obtaining any Federal contract, grant or any other award covered by 31
U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal
funds that takes place in connection with obtaining any Federal award.
Such disclosures are forwarded from tier to tier up to the recipient.
8. Debarment and Suspension (Executive Orders 12549 and 12689)--No
contract shall be made to parties listed on the General Services
Administration's List of Parties Excluded from Federal Procurement or
Nonprocurement Programs in accordance with Executive Orders 12549 and
12689, ``Debarment and Suspension.'' This list contains the names of
parties debarred, suspended, or otherwise excluded by agencies, and
contractors declared ineligible under statutory or regulatory authority
other than Executive Order 12549. Contractors with awards that exceed
the small purchase threshold shall provide the required certification
regarding its exclusion status and that of its principal employees.