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HomeMy WebLinkAboutC05-070 Funding Partners for Housing Solutions 006-/J4{).- 6l II II III II 1111 II III III IIIII 931389 Page: 1 of 15: 09/30/2005 04 Teak J Simonton Eagle CO 23 R 0.00 o 0.00 AGREEMENT BETWEEN THE COUNTY OF EAGLE, STATE OF COLORADO AND FUNDING PARTNERS FOR HOUSING SOLUTIONS for Administering a Housing Down Payment Assistance Program This Agreement for Administering a Housing Down Payment Assistance Program ("Agreement"), made this~ day of March, 2005, by and between THE COUNTY OF EAGLE, STATE OF COLORADO, a body corporate and politic, by and through its Board of County Commissioners ("COUNTY") and FUNDING PARTNERS FOR HOUSING SOLUTIONS ("FP"), a Colorado non-profit corporation. RECITALS WHEREAS, COUNTY has created a program for providing down payment assistance loans to residents of Eagle County wishing to purchase housing in Eagle County ("Program"); and WHEREAS, COUNTY has received a grant for the Program from Community Development Block Grant funds and has entered into a grant contract with the Colorado Department of Local Affairs, Division of Housing for such grant and has established the CDOH Down Payment Assistance Fund ("CDOH Fund") with this grant; and WHEREAS, COUNTY has funds from other sources for use in the Program, including paybacks from previous Program loans and grants from private parties; and COUNTY may use funds from its General Fund for the Program and has established the Eagle County Down Payment Assistance Fund ("Eagle County Fund") with these monies; and WHEREAS, FP has special expertise in administering housing assistance programs, including down payment assistance programs like the Program, and is experienced in administering such programs in compliance with federal and state laws applicable to grant recipients, including laws applicable to Community Development Block Grants; and WHEREAS, COUNTY desires FP to administer the Program and FP is willing to do so, and both parties desire to set forth herein the terms upon which FP will do that, AGREEMENT NOW, THEREFORE, for and in consideration of the monies to be received, the covenants and conditions set forth herein, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows: 1 March 18, 2005 C:\DOCUME- I Voe\LOCALS- I \Temp\FP DPA contract.doc l. SCOPE OF SERVICES. FP shall provide all labor, services, equipment and materials reasonably necessary to administer the Program in accordance with the terms, conditions and other provisions of this Agreement, of the Grant Contract, and of the loan policies providing funding for the Program. Without limiting the foregoing, FP shall expeditiously perform and carry out, in a satisfactory and proper manner, the "Scope of Services" as described and set forth in Exhibit 1 attached hereto and made a part hereof by this reference. FP shall timely perform all obligations requisite under the Grant Contract, attached hereto as Exhibit 2 and made a part hereof by this reference, and such other grants and loans which COUNTY may obtain during the Term of this Agreement. For purposes of this paragraph only, and as to Exhibit 2 only, notwithstanding anything to the contrary stated elsewhere in this Agreement, this Agreement may be amended by COUNTY giving notice in writing to FP identifying additional grant, loan and other agreements that COUNTY may enter into to fund the Program and such amendment shall become effective twenty-one (21) calendar days after such notice or upon FP's acceptance of funds originating from those additional sources, unless FP within that time gives written notice to COUNTY that it declines to perform the obligations contained in those additional grants, loans and other agreements. 2. PROJECT PAYMENTS. a. CDOH Fund: The COUNTY shall provide an amount to FP, which shall be used solely for Program loans originated from the CDOH Fund. This amount shall be kept separate from all other Eagle County funds in a non-interest bearing account. As FP receives payments on CDOH loans, these funds shall be deposited to the same non-interest bearing account. New CDOH loans shall be funded first from this account. When the account becomes depleted, CDOH loans shall be funded according to the terms of the Grant Contract between the COUNTY and the Colorado Department of Local Affairs attached hereto as Exhibit 2. b. Eagle County Fund: When loans are made from the Eagle County Fund, COUNTY will require FP to request payment from the Eagle County Housing Department. This request may be made at the time of loan commitment and accompanied by a copy of the commitment letter or FP may choose to request payment after closing by submitting a copy of the Deed of Trust. All loan paybacks shall be forwarded to Eagle County Housing Department no later than fifteen (15) days after the close of each month. c. FP shall be compensated for its services by the following: FP shall charge each loan recipient(s) a processing fee not to exceed Two Hundred and Seventy-Five Dollars ($275.00). 2 March 18, 2005 C\DOCUME-I\Joe\LOCALS-I\Temp\FP DPA contract.doc d. Under no circumstances shall the COUNTY be liable for the payment of any costs of performing the scope of services for which FP is responsible. 3. TERM OF THE AGREEMENT. The Term of this Agreement shall commence on the date of execution set forth above and continue for a term of five (5) years, provided that the term of this Agreement and all provisions herein shall extend to and cover any additional time period during which FP remains in control of the COUNTY'S funds or other assets. The COUNTY shall have the right to terminate this Agreement if FP fails to substantially adhere to the Scope of Services set forth in Exhibit I, and otherwise in accordance with the terms of this Agreement. FP shall have the right to terminate this Agreement if the COUNTY fails to substantially adhere to its responsibilities set forth in Exhibit 1, and otherwise in accordance with the terms of this Agreement. 4. CONTROL OF FUNDS. In administering funds delivered to FP by the COUNTY and funds received by FP from Program borrowers, FP shall be subject to the COUNTY's instructions, said instructions to be determined at COUNTY's sole discretion. COUNTY, in its sole discretion, may change Program Criteria by written notice to FP. All such funds shall be used only for the benefit of COUNTY in accordance with the terms of this Agreement. 5. ACTIVITY RESPONSIBILITY AND REPRESENTATIVES. All applicable invoices, statements, notices, inquiries, and replies shall be addressed and served upon the respective representatives at the addresses below. The following individuals are designated for the purposes of this Agreement as representatives of the COUNTY and FP (or their successors or assigns), respectively: COUNTY: Barbara Peterson Eagle County Housing Department P.O. Box 850 [physical address: 500 Broadway] Eagle, CO 81631 Tel. 970-328-8770 Fax. 970-328-8787 FP: Joe Rowan Funding Partners for Housing Solutions 214 S. College A venue Fort Collins, CO 80524 Tel. 970-494-2021 Fax 970-494-2022 3 March 18,2005 C:\DOCUME-I\Joe\LOCALS-I\Temp\FP DPA contract.doc The parties may change their representatives at any time by written notice to the other party. 6. INSURANCE. FP shall maintain in full force and effect commercial general liability insurance, of a comprehensive form, in the amount of at least $1,000,000 per occurrence and $2,000,000 general aggregate at its own expense during the life of this Agreement, which affords coverage for all claims for bodily injury, including death, and all claims for destruction of or damage to property and personal injury arising out of or in connection with any operations or services performed under this Agreement. The COUNTY shall be an additional insured under these policies, and FP shall furnish the COUNTY's County Attorney's Office with certificates of insurance giving evidence of such coverages and containing a provision that the COUNTY shall be given thirty (30) days written notice of cancellation or material change of coverage. The certificates shall be filed within ten (10) days following execution of this Agreement. 7. WORKERS' COMPENSATION INSURANCE. FP shall maintain in full force and effect Worker's Compensation Insurance and Unemployment Compensation Insurance with the Colorado statutory limits at its own expense and as required by law. The Recipient shall also procure and maintain Employer's Liability coverage for at least $100,000 each accident, $500,000 disease policy limit, and $100,000 disease each employee. All volunteers used by FP in the performance of this Agreement must be covered under FP's Worker's Compensation Insurance or covered under a Medical, Accident, Death or Dismemberment Policy with limits of not less than $25,000. The COUNTY shall be an additional insured under these policies, and FP shall furnish the COUNTY's County Attorney's Office with certificates of insurance giving evidence of such coverages and containing a provision that the COUNTY shall be given thirty (30) days written notice of cancellation or material change of coverage. The certificates shall be filed within ten (10) days following execution of this Agreement. 8. INDEPENDENT CONTRACTOR. In performing this Agreement, FP acts as an independent contractor responsible for calculating, withholding, and paying all Federal and State taxes and for obtaining necessary and adequate workers' compensation insurance, general liability insurance and any other insurance required under this Agreement. FP employees are not and shall not become employees, agents or servants of the County hereunder. FP and FP employees are not entitled to unemployment insurance benefits unless unemployment compensation coverage is provided by FP or some other entity, and FP is obligated to pay Federal and State income tax on any monies paid pursuant to this Agreement. 9. INDEMNIFICATION. FP shall indemnify and hold harmless the County, its Board of Commissioners, and the individual members thereof, its agencies, departments, officers, agents, employees, servants and its successors from any and all demands, losses, liabilities, claims or judgments, together with all costs and expenses, including but not limited to attorney fees, incident thereto which may accrue against, be charged to or be recoverable from the County, its Board of Commissioners, and the individual members thereof, its agencies, departments, officers, agents, employees, servants and its successors, as a result of the acts or omissions of FP, its employees, subcontractors, or agents, in or in part pursuant to this Agreement or arising 4 March 18,2005 C:\DOCUME-I \Joe\LOCALS-1 \Temp\FP DP A contract.doc directly or indirectly out of FP' s exercise of its privileges or performance of its obligations under this Agreement. This indemnification shall survive completion of the Scope of Services and termination of this Agreement. Nothing herein shall be construed as a waiver of defenses or immunities available to the COUNTY under the Governmental Immunity Act. 10. COMPLIANCE WITH LOCAL, STATE AND FEDERAL LAWS. FP specifically agrees to comply in the performance hereof with all of the requirements set forth in Exhibit 4 (with respect to which FP is in the position of "Subgrantee" referred to therein) which exhibit is incorporated herein by this reference, with the grant assurances made by the COUNTY in connection with the Grant Contract, and with all local, state and federal ordinances, codes, laws, rules, regulations, orders, and guidelines that are referred to herein and applicable to the Scope of Services or that may be or become applicable to the Scope of Services even though not stated herein. The following federal regulations are attached to this Agreement and are also incorporated into this Agreement by reference as Exhibits 5, 6 and 7 respectively: OMB Circular A-IIO, "Uniform Administration Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals and other Non-Profit Organizations"; OMB Circular A-I22 "Cost Principles for Non Profit Organizations"; and OMB Circular A-133 "Audits ofInstitutions of Higher Education and Other Nonprofit Institutions". II. PERFORMANCE REPORTS AND RECORDS. a. FP shall prepare and submit to the COUNTY monthly a detailed Performance Report no later than fifteen (15) days after the end of each month. Said report shall be in a format approved by COUNTY and shall be directly related to the Scope of Services. The contents of the report shall provide data and information to COUNTY to be used for coordinating, monitoring and evaluating the Scope of Services to its completion. Failure to submit these reports shall constitute a material breach of this Agreement. b. FP shall provide COUNTY a copy of its annual report with audited financial statements within thirty (30) days after it is completed. c. FP shall maintain records of funds received and disbursed, correspondence, loan applications, loans funded, promissory notes, security instruments, and such other records as may be required by COUNTY's funding sources for the duration of this Agreement, and for such longer time as may be required by a funding source. In no event shall such records be destroyed or discarded prior to their being tendered to COUNTY upon the termination of this Agreement or as may be agreed otherwise, in writing, between the parties. COUNTY, its funding sources, and, if applicable, state and federal auditors, shall have access to those records, with or without notice, in accordance with the grants, contracts and other agreements and in accordance with laws, rules and regulations applicable to them. 5 March 18,2005 C\DOCUME-l\Joe\LOCALS-l\Temp\FP DPA contract.doc 12. TERMINATION. a. Termination for Cause by County. If, for any reason, FP shall fail to substantially perform the work required by the Scope of Services under this Agreement or fails to ensure the performance of, by legal means if necessary, the work called for herein with such diligence as will ensure its completion, or materially fails to comply with any of the terms, conditions, or other provisions of this Agreement which shall constitute a violation or breach of this Agreement, and shall fail to cure the default within fifteen (15) days following written notice thereof by the COUNTY, the COUNTY may terminate this Agreement by giving written notice to FP. In addition to the other remedies available to it, in the event the COUNTY terminates this Agreement due to FP's failure to cure any default as provided hereinabove or due to FP's breach or violation of any covenant, agreement or assurance herein, the COUNTY retains the right and may, at its option, make written demand for repayment of, and FP shall immediately upon receipt of such written demand of the COUNTY, repay all sums received by FP from the COUNTY under this Agreement as of the date of said demand, net of loan disbursements pursuant to this Agreement, plus interest thereon at the legal rate plus all expenses incurred by the COUNTY, including reasonable attorney's fees incurred in recovering said sums. If the COUNTY does not prevail, FP is entitled to recover its attorneys' fees. b. Termination for Cause by FP. If, for any reason, COUNTY shall fail to substantially perform the work required of it by this Agreement, or fails to ensure the performance of, by legal means if necessary, the work called for herein with such diligence as will ensure its completion, or materially fails to comply with any of the terms, conditions, or other provisions of this Agreement which shall constitute a violation or breach of this Agreement, and shall fail to cure the default within fifteen (15) days following written notice thereof by FP, then FP may terminate this Agreement by giving written notice to COUNTY. In addition to the other remedies available to it, in the event FP terminates this Agreement due to COUNTY's failure to cure any default as provided hereinabove or due to COUNTY's breach or violation of any covenant, agreement or assurance herein, FP is entitled to recover all expenses incurred by it as a result of the violation, including reasonable attorney's fees incurred in enforcing its rights under this Agreement. If FP does not prevail, the COUNTY is entitled to recover its attorneys' fees. c. Termination for the Convenience of the COUNTY. This Agreement may be terminated by the COUNTY at any time in advance of the end of the Term of this Agreement. In such event, the COUNTY shall give written notice thereof to FP and FP shall be paid for the documented direct and incidental termination expenses due to the termination as are mutually agreed upon by both parties and in an amount not to exceed Two Thousand Dollars ($2,000.00). d. Termination for the Convenience ofFP. FP may terminate this Agreement at any time in advance of end of the Term of this Agreement with the consent of the COUNTY. 6 March 18, 2005 C\OOCUME-I\Joe\LOCALS-I\Temp\FP OPA contract.doc FP shall give the COUNTY written notice of any such termination at least sixty (60) days in advance of the effective date thereof and shall state in the notice the reason or reasons for the termination and the effective date of termination. FP shall neither be paid nor be considered eligible for payment of termination expenses, incidental, direct or consequential costs or damages or loss of profits due to the termination. e. Records. Upon any termination of this Agreement in advance of its expiration date, undelivered documents, maps, models, photographs, reports or copies thereof, materials, equipment, supplies or other items prepared by the FP or its subcontractors for use in the Agreement work, shall be delivered immediately to the COUNTY in their state of preparation at the time of termination subject to the provisions of any termination agreement or order providing otherwise. FP shall also immediately notify the COUNTY of all subcontracts, purchase orders, pending loans or other commitments of FP which shall be outstanding on the termination date and shall take such action with respect thereto as the parties hereto shall mutually determine. No termination hereunder shall relieve FP of its responsibilities to maintain Scope of Services records in accordance with this Agreement. f. Reversion of Funds. Upon the termination of this Agreement, FP shall transfer to the COUNTY all funds, notes, accounts receivable, and deeds oftrust attributable to the Program on hand at the time of termination. g. Close-outs. FP obligations to the COUNTY shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, notes, deeds of trust, security, program income balances, copies of transferred records, and receivable accounts to COUNTY upon closeout or upon the COUNTY's request), and determining the custodianship of records. 13. AMENDMENTS. a. Either party to this Agreement may request Amendments to this Agreement at any time, but no change shall be binding unless it is mutually agreed upon by the parties to this Agreement. All Amendments shall be in writing and authorized prior to any work being done thereon by an executed amendment to this Agreement. This paragraph notwithstanding, additions to Exhibit 2 may be made in accordance with Paragraph 1 hereof. b. Any change in or new federal, state or local law, rule, Executive Order, Office of Management & Budget Circular, or other regulation under which this Scope of Services is to be performed which may constitutionally be applied to this Scope of Services and which, by its terms, is intended to be applied to this Scope of Services, shall be deemed to be incorporated into this Agreement. 7 CIDOCUME-IVoeILOCALS-IITempIFP DPA contract.doc 14. INTEGRA TED DOCUMENT. This Agreement including all exhibits embodies the entire understanding between the COUNTY and FP for the Scope of Services and their terms and conditions. No verbal agreements or conversation with any officer, agent or employee of the COUNTY or FP prior to or subsequent to the execution of this Agreement shall affect or modify any of the terms or obligations contained in any documents comprising this Agreement. 15. NON-ASSIGNABILITY. FP may subcontract the performance under this Agreement in whole or in part; however, the responsibility for the performance of this Agreement shall not be assigned or transferred by FP without the prior written consent of the COUNTY, which COUNTY may grant or withhold in its sole discretion. 16. SUCCESSORS. FP covenants that the provisions of this Agreement shall be binding upon its heirs, successors, subcontractors, representatives, and agents. 17. INCORPORA TION BY REFERENCE. All of the parts of this Agreement and those which may become properly appended hereto, and all applicable federal, state, and local laws, rules, regulations, circulars, Executive Orders pertaining to the Community Development Block Grant Program and this Scope of Services, and any other document referenced for incorporation are incorporated herein by this reference. 18. SEVERABILITY CLAUSE. The declaration by any court or other binding legal authority that any provision of this contract is illegal and void shall not affect the legality and enforceability of any other provision of this contract unless said provisions are mutually dependent. 19. CUSTOMER SERVICE. In rendering its services, FP shall comply with the highest standards of customer service to the public. FP shall provide appropriate supervision of its employees to ensure the maintenance of these high standards of customer service and professionalism, the performance of such obligation to be determined at the sole discretion of the County. 20. THIRD PARTY BENEFICIARIES. This Agreement does not, and shall not be deemed or construed to, confer upon or grant to any third party or parties any right to claim damages or to bring any suit, action or other proceeding against either FP or the County because of any breach hereof or because of any of the terms, covenants, agreements and conditions herein. 21. GOVERNING LAW. This Agreement shall be governed by the laws of the State of Colorado. Jurisdiction and venue for any suit, right or cause of action arising under, or in connection with this Agreement shall be exclusive in Eagle County, Colorado. 8 C\DOCUME-l \Joe\LOCALS-l \Temp\FP DPA eontraet.doe IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed on the date first set forth above. FUNDING PARTNERS FOR HOUSING non-profit corporation: STATE OF COLORADO ) ~r ;41' ) ss. COUNTY OF ~~ ) On this IX- day of n1flt V(]/t~ , 2005, came before me known to me, and acknowledged to me that he/she had executed the within contract acting in his/her capacity as :f: Vi! (lU+lVe- ,/Ocre(!ft~;/ of Funding Partners for Housing Solutions and that the same was the act of that corporation. ATTEST: Am M. Menconi, Chairman Board of County Commissioners 9 C:\DOCUME-l Voe\LOCALS-l \Temp\FP DP A conlract.doc Exhibit 1 Scope of Services A. Except for informing the public and lenders of the availability of the Down Payment Assistance Program, and adopting the elements of the Program, FP shall administer all aspects of the Program, doing all those acts reasonably necessary to fund Down Payment Assistance Program loans. This includes, but is not limited to: FP will receive funds from County for use in the Program. FP will use customary procedures to safeguard those funds from any loss or misuse, and FP will preserve them for the implementation of this Program. The County's funding sources for the Program include or may include grants and loans from the United States, state of Colorado, CHF A, and local governments, and the agencies thereof and Authorities created under their auspices, as well as Eagle County general fund, the Eagle County Housing Fund and private contributions. The laws, rules and regulations applicable to, and the terms and conditions of, these respective sources of funds differ. FP therefore must account for the funds received from each of these separate sources of funds separately. County shall be responsible for informing FP the identity of the source(s) of funds each time it delivers funds to FP. No loan may be funded with money attributable to more than one revolving loan fund. When there are sufficient funds from multiple sources to fund any given Program loan, FP will select the source in the order specified by the County. FP will receive, review, and accept or reject applications from prospective borrowers for participation in the Program, utilizing the Program guidelines provided by County. The Program guidelines are attached hereto as Exhibit 3, Eagle County Revolving Loan Policies and CDOH Revolving Loan Policies, and incorporated herein by reference. The Program guidelines may be changed from time-to-time by the County, in its sole discretion, by written notice of such change to FP, and any such change shall apply to loan applications which have not been accepted before the date such changes are received by FP (or the effective date stated in the notice, if any). If an application is accepted, FP will prepare all of the documents reasonably necessary to manifest the loan, the County's security, the conformance of the loan with the Program, and the compliance with all laws, rules and regulations applicable to, and the terms and conditions of, the grants (or other fund sources) from which the County is funding this Program. FP will require homebuyer education to accepted loan applicants in the manner and with the information required by any of the funding sources or as otherwise determined by the County. FP will coordinate with primary loan lenders to make Program loans. FP will assist the County with lender education regarding the criteria for this Program, which education 10 C:\DOCUME-l\Joe\LOCALS-I\Temp\FP DPA contract.doc will be County's responsibility. FP may delegate its documentation responsibilities to a primary lender, but that delegation does not relieve FP ofthe responsibility to the County for proper documentation. FP will bill borrowers monthly or in accordance with the terms of their loan agreements, receive payments, deposit payments for the benefit of the County and account for the same as may be required by the County or by any source of the funds to make the respective Program loans. FP will process the cancellation of evidence of indebtedness and release of security when loans become fully paid. FP will promptly inform the County ofa borrower's default or suspected default of any term or condition ofa Program loan, but FP will not be responsible for foreclosing or otherwise enforcing the County's rights as Program source, lender or security holder. B.. All funds held for the benefit of the County shall be held in federally-insured accounts, in compliance with Colorado law applicable to the investment of county government funds. FP shall notify County of the institution(s) and the account(s) identification, and such institutions shall be subject to County's approval, which approval will not unreasonably be withheld. In the event the County should become dissatisfied with an institution, County shall notify FP and FP will move the account(s) to an approved institution within one (1) business day of its receipt of such notice. A designated County representative shall be a signatory on said account. C. FP shall be solely responsible for determining that a Program loan applicant meets the Program guidelines. Whenever FP denies an application, FP shall notify the applicant and the County in writing, The notice to the applicant shall explain that the applicant may appeal that denial to the County, in a writing mailed or delivered to the County within not more than fifteen (15) calendar days after the date of the notice of denial (or such other instructions as County shall require by written notice to FP). FP shall abide by any decision on appeal accepting the application as complying with Program guidelines. Except for giving this notice, FP shall have no responsibility with respect to an appeal, and the appeal process shall be determined solely by the County. 11 C:\DOCUME-IIJoe\LOCALS-I\Temp\FP DPA contracLdoc ~ Exhibit 2 Grant Contract -12- EXHIBIT C1 I Contract Routing # C) 0 'if 0'1 I I Encumbrance # I Vendor # 84-6000762 I (for Remit Address) I APPR GBl I CFDA# 14.228 Unilateral Amendment # 1 of C~~G ~ragt Between Colorado Department of Local Affairs an aQ e ounty, P.O. Box 179. EaQle. Colorado 81631 State Executed Contract Modifications A. Modifications to Exhibit A, Scope of Service. 6. Time of Performance: "Time of Performance is modified by deleting April 30, 2005 and inserting in lieu thereof April 30, 2006. All of the terms and conditions of the Original Contract remain unchanged except for those terms and conditions modified by this Amendment # 1 and all previous amendments. Both Rarties also expressly understand that this Amendment # .1-is Incorporated into the Original Contract. Department of Local Affairs r .~ /d ~ (Pre.:approy,ef ,~ ontract Reviewer IC ae . eas e, xecutlve Director ALLteoNTRACTS MUST BE APPROVED BY THE STATE CONTROLLER CRS 24-30-202 requires that the State Controller approve all state contracts. This contract is not valid until the State Controller, or such assistant as he may delegate, has s~ned it. The contractor is not authorized to begin performance until the contract is signe and dated below. If fterformance begins prior to the date below, the State of Colorado may not be obligated to pay for he goods and/or services provided. STATE CONTROLLER: Leslie M. Shenefelt By Date: //;;'8 J05 . / Page 1 of 2 , , 87533 ~Oct--IO?)-5 age: 1 of ~ ...35/ w (.; COBG 4/27/2004 03;o3P o 0.00 Rev. 6/28/02 I CONTRACT THIS CONTRACT, made by and between the State of Colorado for the use and benefit of hereinafter referred to as the State, and Eaqle County, P.O. 179, Eaqle, Colorado 81631 , hereinafter referred to as the Contractor, WHEREAS, authority exists in the Law and Funds have been budgeted, appropriated and otherwise made available and a sufficient unencumbered balr~Ce}hereOf remains available fq!:..payment in Fund Number 1{l(lJ Appropriation Code Number // '~. Unit ~ GBL ?:P~7 , Contract Encumbrance Number H '-I C. 0 J3 OJ () 'J'S ; and WHEREAS, required approval, clearance and coordination has been accomplished from and with appropriate agencies; and WHEREAS, the United States Government, through the Housing and Community Development Act of 1974 ("the Act"), Pub. L. No. 93-383, as amended, has established a Community Development Block Grant ("COBG") program and has allowed each state to elect to administer such federal funds for its nonentitlement areas, subject to certain conditions, including a requirement that the state's program give maximum feasible priority to activities which will benefit very low-, low-, and moderate-income families or aid in the prevention or elimination of slums or blight; the state's program may also include activities designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. Additionally, the state's program is subject to a federal requirement that not less than seventy percent (70%) of the aggregate amount of CDBG funds received by the state shall be used fortM $UPport of activities that benefit persons of very low-, low-, andI]jQgeJate':'income; and WHEREAS, the State of Colorado has elected to administer such federal funds for its nonentitlement areas through the Colorado Department of Local Affairs ("Department"), pursuant to C.R.S. 1973, 24-32-106(1) (d), 24-32- 304(2) 0) and 24-32-705(1) (i); and WHEREAS, the Department has received applications from political subdivisions in Colorado for allocations from the federal COBG funds available to Colorado; and WHEREAS, the Contractor is one of the eligible political subdivisions to receiv~e C_DBG funds; and WHEREAS, the Department has approved the proposed Project of the Contractor; NOW, THEREFORE, it is hereby agreed that: 1. Scope of Services. In consideration for the monies to be received from the State, the Contractor shall do, perform, and carry out, in a satisfactory and proper manner, as determined by the State, all work elements as indicated in the "Scope of Service", set forth in Exhibit A, which is attached hereto and is incorporated herein by reference, and is hereinafter referred to as the "Project". Work performed prior to the execution of this Contract shall not be considered part of this Project. 2. Responsible Administrator. The performance of the services required hereunder shall be under the direct supervision K.T. Gazunis, an employee or agent of Contractor, who is hereby designated as the responsible administrator of this Project. At any time the Contractor wishes to change the responsible administrator, the Contractor shall propose and seek the State's approval of such replacement responsible administrator. The State's approval shall be evidenced through a Contract Amendment to this contract initiated by the State as set forth in paragraph 16.b) of this Contract. Until such time as the State concurs in the replacement responsible administrator, the State may direct that Project work be suspended. 3. Time of Performance. This Contract shall become effective upon proper execution of this Contract by the State Controller or designee. The Project contemplated herein shall commence as soon as practicable after the execution of this Contract and shall be undertaken and performed in the sequence set forth in the attached Exhibit A, Scope of Services. The Contractor agrees that time is of the essence in the performance of its obligations under this Contract, and that completion of the Project shall occur not later than the termination date set forth in the Scope of Services. 1 ( 4. Elioibilitv and National Objectives. All project activities shall be eligible under Section 105 of the Act, as ameneled, and all related regulations and requirements. Furthermore, project activities shall meet the following indicated (with a "X") broad national objective(s), as set forth in Section 104(b)(3) of the Act, as amended, and all related regulations and requirements: - L Benefit persons of very low-, low-, and moderate-income; - Prevent or eliminate slums or blight; - Meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. 5. Oblioation. Expenditure and Disbursement of Funds. a) Prior Expenses. Expenses incurred by the Contractor in association with said Project prior to execution of this Contract are not eligibleCDBG expenditures and shall not be reimbursed by the State. b) Environmental Review Procedures. Funds shall not be obligated or utilized for any activities requiring a release of funds by the State under the Environmental Review Procedures for the CDBG program at 24 CFR Part 58 until such release is issued in writing. Administrative costs, reasonable engineering and design costs, and costs of other exempt activities identified in 24 CFR 58.34(a)(1) through (8) do not require a release of funds by the State. For categorically excluded activities listed in 58.35(a) determined to be exempt because there are no circumstances which requir~ compliance with any other Federal laws and authorities cited at 58.5, the Contractor must make and document such a determination of exemption prior to incurring costs for such activities. c) Community Development Plan Requirement. Prior to receiving disbursements of CDBG funds from the State, the Contractor shaU identify its community development and housing needs, including the needs of very low-, low-, and moderate-income persons, and the activities to be undertaken to meet such needs. 6. Definition of Vervlow-, Low- and Moderate-Income Persons. Very low-, low-, and moderate-income persons are defined, for the purposes of this Contract, as: lL Those persons who are members of very low-, low-, and moderate-income families as set forth in Exhibit B, which is attached hereto and incorporated herein by reference, or as subsequently promulgated in writing by the State, or - Those persons who have been determined by HUD, based upon most recent Census data, to be very low-, low-, and moderate-income persons. - Those -persons belonging to clientele groups who are generally presumed by HUD to be principally very low-, low-, and moderate-income persons. - Not applicable to this project. 7. Citizen Participation. The Contractor shall provide citizens with reasonable notice of, and opportunity to comment on, any substantial change proposed to be made in the use of CDBG funds from one eligible activity to another by following the same citizen participation procedures required for the preparation and submission of its CDBG application to the State. The Contractor shall also comply with the procedure setforth herein regarding the modification and amendment of this Contract. Additionally, the Contractor shall have and follow a Citizen Participation Plan (CPP) which includes the six elements specified in Section 104(a)(3) the Act. The CPP must include a provision for at least one public hearing during the course of the Project to allow citizens to review and comment on the Contractor's performance in carrying out the Project. 8. Residential Antidisplacement and Relocation Assistance Plan. The Contractor shall follow a residential antidisplacement and relocation assistance plan which, should displacement occur, provides that: a) governmental agencies, non- and for-profit organizations, or private developers shall provide within the same community comparable replacement dwellings for the same number of occupants as could have been housed in the occupied and vacant occupiable low- and moderate-income dwelling units demolished or converted to a use other than for housing for low- and moderate-income persons, and provide that such replacement housing may include existing housing assisted with project based assistance provided under Section 8 of the United State Housing Act of 1939; 875330 age: 2 of 35 04/27/2004 03:53P 2 eak J Simonton Eagle, CO 121 R 0.00 o 0.00 I ( b) such comparable replacement dwellings shall be designed remain affordable to persons of low- and m0derate-income for ten (10) years from the time of initial occupancy; c) relocation benefits shall be provided for all low-income persons who occupied housing demolished or converted to a use other than for low-. or moderate-income housing, including reimbursement for actual and reasonable moving expenses, security deposits, credit checks, and other moving-related expenses; including any interim living costs; and, in the case of displaced persons of low- and moderate-income, provided either: i) compensation sufficient to ensure that, for a five-year (5-year) period, the displaced families shall not bear, after relocation, a ratio of shelter costs to income that exceeds thirty percent (30%); or ii) if elected by a family, a lump-sum payment equal to the capitalized value of the benefits available under subclause (i) to permit the household to secure participation in a housing cooperative or mutual housing association; d) Persons displaced shall be relocated into comparable replacement housing that is: i) decent, safe, and sanitary; ii) adequate in size to accommodate the occupants; iii) functionally equivalent; and, iv) in an area not subject to unreasonably adverse environmental conditions. Persons displaced shall have the right to elect, as an alternative to the benefits under this paragraph, to receive benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, if such persons determine that it is in their best interest to do so; and, where a claim for assistance under subparagraph (d) ~s denied by the Contractor, the claimant may appeal to the State,- and that the decision of the State shallqe final unless a court determines the decision was arbitrary and capricious. The Contractor shall follow the Residential Antidisplacement and Relocation Assistance Plan except that paragraphs a) and b) shall not apply in a case in which the Secretary of the U. S. Department of Housing and Urban Development finds, on the basis of objective data, that there is available in the area an adequate supp/yof habitable affordable housing for low-, and moderate-income persons. A determination under this paragraph is final and nonreviewable. 9. Affirmatively Furtherinq Fair HousinQ. The Contractor shall affirmatively further fair housing in addition to conducting and administering its Project in conformity with the equal opportunity requirements of Yitle VI of the Civil Rights Act of 1964 and the Fair Housing Act, as required herein. 10. Recovery of Capital Costs of Public Improvements. The Contractor shall not attempt to recover any capital costs of public improvements assisted in whole or part with CDBG funds by assessing any amount against properties owned and occupied by persons of very low-, low-, or moderate-income, including any fee charged or assessment made as a condition of obtaining access to such public improvements, unless; a) CDBG funds are used to pay the proportion of such fee or assessment that relates to the capital costs of such public improvements that are financed from revenue sources other than the CDBG program, or b) for the purposes of assessing any amount against properties owned and occupied by persons of moderate income who are not persons of very low- or low-income, it certifies that it lacks sufficient CDBG funds to comply with the requirements of subparagraph (a) hereinabove. 11. Compensation and Method of Payment. The State agrees to pay to the Contractor, in consideration for the work and services to be performed, a total amount not to exceed One Hundred Forty Thousand Dollars ($140,000.00). The method and time of payment shall be made in accordance with the "Payment Schedule" set forth herein in EXHIBIT A. Any State funds not required for completion of the Project will be deobligated by the State through the processing of a bilateral amendment. Unless otherwise provided in the Scope of Services: a) The Contractor shall periodically initiate all reimbursement requests by submitting to the Department a written request using the State-provided form, for reimbursement of actual and proper expenditures of State CDBG funds plus an estimation of funds needed for a reasonable lenath of time. 5330 age: 3 of 35 04/27/2004 03:53P Teak J Simonton Eagle, CO R 0.00 o 0.00 b) The State may withhold any payment if the Contractor has fc:llled to comply with the State CDBG program objectives, contractual terms, or reporting requirements. c) The State may withhold the final payment until the Contractor has submitted and the Department has accepted, all required quarterly Financial Status Report and Performance Report information. 12. Financial Manaqement and Budqet. At all times from the effective date of this Contract until completion 'of this Contract, the Contractor shall comply with the administrative requirements, cost principles and other requirements set forth in the State's Financial Management Guide and the Financial Management Section of the State CDBG Guidebook. Contractor may adjust individual budgeted expenditure amounts without approval of the State provided that no budget transfers to or between administration budget categories are proposed and provided that cumulative budgetary line item changes do not exceed Twenty Thousand Dollars ($20,000.00), unless otherwise specified in the "Budgef' section of Exhibit A. Any budgetary modifications that exceed these limitations must be approved by the State through a Contract Amendment as set forth in Paragraph 16. c). 13. Audit. a) Discretionary Audit. The State, through the Executive Director of the Department, the State Auditor, or any of their duly authorized representatives, including an independent Certified Public Accountant of the State's choosing, or the federal government or any of its properly delegated or authorized representatives shall have the right to inspect, examine, and audit the Contractor's (and any subcontractor's) records, books, accounts and other relevant documents. Such discretionary audit may be requested at any time and for any reason from the effective date of this Contract until five (5) years after the date final payment for this Project is received by the Contractor, provided that the audit is performed during normal business hours. b) Mandatory Audit. Whether or not the State calls for a discretionary audit as provided above, the Contractor shall include the Project in its annual audit report as required by the Colorado Local Government Audit Law;C.R.S. 1973, -29-1-601, et seq Bnd the Single Audit Act of 1996, Pub. L. 104-156, and Federal and State implementing rules and regulations: Such,audit reports shall be simultaneously submitted to the Department and the State Auditor. Thereafter, the Contractor shall supply the Department with copies of all correspondence from the State Auditor or Federal Agency related to the relevant audit report. If the audit reveals evidence of non-compliance with applicable requirements, the Department reserves the right to institute compliance or other appropriate 0- proceedings notwithstanding any other judicial or administrative actions filed pursuant to C.R.S. 1973,29-1-607 or 29- M 10 1-608. 10M i)M<S>oS 14. Contract Suspension. If the Contractor fails to comply with any contractual provision, the State may, I')....q-<S> o <S> . after notice to the Contractor, suspend the Contract and withhold further payments or prohibit the Contractor from I') oSoS q-N incurring additional obligations of contractual funds, pending corrective action by the Contractor or a decision to n ..;:::0 ....lUN terminate in accordance with provisions herein. The State may determine to allow such necessary and proper costs 01.... which the Contractor could not reasonably avoid during the period of suspension provided such costs were necessary OI1lq- O-oS oS and reasonable for the conduct of the Project. oS <S> 15. Contract Termination. This contract may be terminated as follows: a) Termination Due to Loss of Fundinq. The parties hereto expressly recognize that the Contractor is '" to be paid, reimbursed, or otherwise compensated with federal CDBG funds provided to the State for the purpose of contracting for the services provided for herein or with program income, and therefore, the Contractor expressly understands and agrees that all its rights, demands and claims to compensation arising under this Contract are 0 contingent upon receipt of such funds by the State. In the event that such funds or any part thereof are not received u by the State, the State may immediately terminate or amend this Contract. - (J) Ol b) Termination for Cause. In accordance with 24 CFR Part 85.44, suspension or termination may '" w c occur if the Contractor materially fails to comply with any term of the Contract, or, in the State's discretion, the 0 Contract may be terminated for convenience. If, through any cause, the Contractor shall fail to fulfill in a timely and c 0 proper manner its obligations under this Contract, or if the Contractor shall violate any of the covenants, agreements, E <Jl or stipulations of this Contract, the State shall thereupon have the right to terminate this Contract for cause by giving ..., written notice to the Contractor of such termination and specifying the effective date thereof, at least five (5) days -" '" before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, (J) I- surveys, drawings, maps, models, photographs, and reports or other material prepared by the Contractor under this Contract shall, at the option of the State, become its property, and the Contractor shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials. Notwithstanding the above, the Contractor shall not be relieved of liability to the State for any damages sustained by the State by virtue of any breach of the Contract by the Contractor, and the State may withhold any 4 payments to the Contractor for the purpose of offset until such time as the exaCt amount of damages due the State from the Contractor is determined. c) Termination for Convenience. The State may terminate this Contract at any time the State desires. The State shall effect such termination by giving written notice of termination to the Contractor and specifying the effective date thereof, at least twenty (20) days before the effective date of such termination. All finished or unfinished documents and other materials as described in subparagraph 16.b) above shall, at the option of the State, become its property. If the Contract is terminated by the State as provided herein, the Contractor will be paid an amount which bears the same ratio to the total compensation as the services actually performed bear to the total services of the Contractor covered by this Contract, less payments of compensation previously made: Provided, however, that if less than sixty percent (60%) of the services covered by this contract have been performed upon the effective date of such termination, the Contractor shall be reimbursed (in addition to the above payment) for that portion of the actual out-of- pocket expenses (not otherwise reimbursed under this Contract) incurred by the Contractor during the Contract period which are directly attributable to the uncompleted portion of the services covered by this Contract. If this Contract is terminated due to the fault of the Contractor, subparagraph 16.b) hereof relative to termination shall apply. 16. Modification and Amendment. a) Modification bv Operation of Law. This Contract is subject to such modifications as may be required by changes in federal or state law or regulations. Any such required modifications shall be incorporated into and be part of this Contract as if fully set forth herein. b) Unilateral Amendment. The State may unilaterally modify the following portions of this Contract when such modifications are requested by the Contractor or determined by the State to be necessary and appropriate. In such cases, the Amendment is binding upon proper execution by the Executive Director of the Department and State Controller's designee and without the signature of the Contractor. i) Paragraph 2. of this Contract, "Responsible Administrator"; Ii) Paragraph 3. of Exhibit A, Scope of Services "Time of Performance"; Hi) Paragraph 4 of Exhibit A, Scope of Services "Remit Address", iv) Paragraph 5 of Exhibit A, Scope of Services "Payment Schedule". Q. Contractor must submit a written request to the Department if modifications are required. Amendments to this ", Contract for the provisions outlined in this Paragraph 16 b. i) through iv): Responsible Administrator, Time of 10 .. 10", Performance, Remit Address, or Payment Schedule can be executed by the State (Exhibit C1). S)",&& M....~& o ~ ~ c) Bilateral Amendment. In the following circumstances, modifications shall be made by an ~ 10 ~ a Amendment signed by the Contractor, the Executive Director of the Department and the State Controller's designee. ,.... ~ e Such Amendments m~st be executed by the Contractor then the State and are binding upon proper execution by the CO ~ ~ State Controller's designee. & & i) unless otherwise specified in the "Budget" section of Exhibit A, when cumulative budgetary line & n:: item changes exceed Twenty Thousand Dollars ($20,000.00); Ii) unless otherwise specified in the "Budget" section of Exhibit A, when any budget transfers to or N between administration budgetary categories are proposed; Hi) when any other material modifications, as determined by the State, are proposed to Exhibit A 0 or any other Exhibits; u - '" iv) when additional or less funding is needed and approved and modifications are required to OJ '" Paragraph 5 of this Contract, Compensation and Method of Payment as well as to Exhibit A w c "Budget" and "Payment Schedule"; 0 c 0 v) when there are additional federal statutory or regulatory compliance changes in accordance E il" with Paragraph 20 of this Contract. .... i Such Bilateral Amendment may also incorporate any modifications allowed to be made by Unilateral Amendment as I- set forth in subparagraph 16.b) of this paragraph. Upon proper execution and approval, such Amendment (Exhibit C2) shall become an amendment to the Contract, effective on the date specified in the amendment. No such amendment shall be valid until approved by the State 5 Controller or such assistant as he may designate. All other modifications to this Contract must be accomplished through amendment to the contract pursuant to fiscal rules and in accordance with subparagraph 16 d). d) Other Modifications. If either the State or the Contractor desired to modify the terms of this - Contract other than as set forth in subparagraphs 16.b) and 16.c) above, written notice of the proposed modification shall be given to the other party. No such modification shall take effect unless agreed to in writing by both parties in an amendment to this Contract properly executed and approved in accordance with applicable law. Any amendment required per this subparagraph will require the approval of other state agencies as appropriate, e.g. Attorney General, State Controller, etc. Such Amendment may also incorporate any modifications allowed to be made by Unilateral and Bilateral Amendment as set forth in subparagraphs 16.b) or 16.c) of this paragraph. 17. Inteqration. This Contract, as written, with attachments and references, is intended as the complete integration of all understanding between the parties at this time and no prior or contemporaneous addition, deletion or amendment hereto shall have any force or effect whatsoever, unless embodied in a written authorization or contract amendment incorporating such changes, executed approved pursuant to applicable law. 18. Reports. a) Financial Reports. The Contractor shall submit to the Department quarterly financial status reports in the manner and method set forth in the Reporting Section of the State CDBG Guidebook. b) Performance Reports. The Contractor shall submit to the Department quarterly performance reports and a project completion report in a manner and method prescribed by the Department in the Reporting Section and Close-Out Section of the State CDBG Guidebook. 19. Conflict of Interest. "',a) In the Case of Procurement. In the procurement of supplies, equipment, construction and servicesc by the Contractor and its subcontractors, no employee, officer or agent of the Contractor or its subcontractors shall participate in the selection or in the award of administration of a contract if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when the employee, officer or agent; any member of his immediate family; his partner; or an organization which employs, or is about to employ, any of the above, has a financial or other interest in the party or firm selected for award. Officers, employees or agents of the Contractor and its subcontractors shall neither solicit nor accept gratuities, favors or anything of monetary value from parties or potential parties to contracts. Unsolicited items provided as gifts are not prohibited if the intrinsic value of such items is nominal. b) In All Cases Other Than Procurement. In all cases other than procurement (including the provision of housing rehabilitation assistance to individuals, the provision of assistance to businesses, and the acquisition and disposition of real property), no persons described in subparagraph i) below who exercise or have exercised any Q. functions or responsibilities with respect to CDBG activities or who are in a position to participate in a decision-making M 10 process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit .. 10M from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds S) M lSllSl thereunder, either for themselves or those with whom they have family or business ties, during their tenure for one ~ .... oq-lSl . 0 lSl . year thereafter. ~1.O~lSl If) .. ;:::: 0 i) Persons Covered. The conflict of interest provisions of this subparagraph 19.b) apply to any person r--- QI N 01.... :0 l\l oq- who is an employee, agent, consultant, officer, or elected official or appointed official of the Contractor or of D:.lSl lSl any designated public agencies or subcontractors receiving CDBG funds. lSl lSl Threshold Requirements for Exceptions. Upon the written request of the Contractor, the State may ~ ii) grant an exception to the provisions of this subparagraph 19.b) when it determines that such an exception will serve to further the purposes of the CDBG program and the effective and efficient administration of the Contractor's Project. An exception may be considered only after the Contractor has provided the following: a) A disclosure of the nature of the conflict, accompanied by an assurance that: 0 i. there has been or will be a public disclosure of the conflict and a description of how the u public disclosure was or will be made; and - <ll 01 ii. the affected person has withdrawn from his or her functions or responsibilities, or the ... w c decision-making process with respect to the specific CDBG-assisted activity in question; and 0 ~ c 0 b) An opinion of the Contractor's attorney that the interest for which the exception is sought would E UJ not violate State or local law; and ..., .:r; 6 ... <ll I- c) A written statement signed by the chief elected official of the Contractor holding the State harmless from all liability in connection with any exception which may be granted by the State to the provisions of this subparagraph 19.b); - iii) Factors to be Considered for Exceptions. In determining whether to grant a requested exception after the Contractor has satisfactorily met the requirements of subparagraph 19.b) ii) above, the State shall consider the cumulative effect of the following factors, where applicable: a} Whether the exception would provide a significant cost benefit or an essential degree of expertise to the Project which would otherwise not be available; b) Whether an opportunity was provided for open competitive bidding or negotiation; c) Whether the person affected is a member of a group or class of low- or moderate-income persons intended to be beneficiaries of the CDBG-assisted activity, and the exception will permit such person to receive generally the same benefits as are being made available or provided to the group or class; d} Whether the interest or benefit was present before the affected person was in a position as described in this subparagraph 19.b}; e) Whether undue hardship will result either to the Contractor or the person affected when weighted against the public interest served by avoiding the prohibited conflict; and f) Any other relevant considerations. 20. Compliance with Applicable Laws. At all times during the performance of this Contract, the Contractor and any subcontractors shall strictly adhere to all applicable Federal and State laws, orders, and all applicable standards, regulations; interpretations or guidelines issued pursuant thereto. The applicable Federal laws and regulations include: a} National Environmental Policy Act of 1969 (42 USC 4321 et seq.), as amended, and the implementing regulations of HUD (24 CFR Part 58) and of the Council on Environmental Quality (40 CFR Parts 1500- 1508) providing for establishment of national policy, goals, and procedures for protecting, restoring and enhancing environmental quality. 0. b) National Historic Preservation Act of 1966 (16 USC 470 et seq.), as amended, requiring l") consideration of the effect of a project on any district, site, building, structure or object that is included in or eligible for I() .. inclusion in the National Register of Historic Places. I()l") S) l") <'>1<'>1 ("I') '0 i: c) Executive Order 11593, Protection and Enhancement of the Cultural Environment, May 13, 1971 ~ ,... ~ 0 (36 FR 8921 et seq.), requiring that federally-funded projects contribute to the preservation and enhancement of sites, ,.... Qi ~ structures and objects of historical, architectural or archaeological significance. 01..... CO t'O '<t 0.<'>1 d) The ArchaeoloQical and Historical Data Preservation Act of 1974, amending the Reservoir Salvage <'>I ~ Act of 1960 (16 USC 469 et seq.), providing for the preservation of historic and archaeological data that would be lost <'>I due to federally-funded development and construction activities. 0:: e} Executive Order 11988, Floodplain Manaqement, May 24,1977 (42 FR 26951 et seq.) prohibits ~ undertaking certain activities in floodplains unless it has been determined that there is no practical alternative, in ;::' which case notice of the action must be provided and the action must be designed or modified to minimize potential damage. 0 t) f) Executive Order 11990, Protection of Wetlands, May 24, 1977 (42 FR 26961 et seq.) requiring i review of all actions proposed to be located in or appreciably affecting a wetland. Undertaking or assisting new ~ construction located in wetlands must be avoided unless it is determined that there is no practical alternative to such ~ construction and that the proposed action includes all practical measures to minimize potential damage. 0 .. c g} Safe Drinkinq Water Act of 1974 (42 USC 201, 300f et seq., 7401 et seq.), as amended, prohibiting 0 IE U; the commitment of federal financial assistance for any project which the Environmental Protection Agency determines ..., may contaminate an aquifer which is the sole or principal drinking water source for an area. "" '" <>> The Endanqered Soecies Act of 1973 (16 USC 1531 et seq.), as amended, requiring that actions t- h) authorized, funded, or carried out by the federal government do not jeopardize the continued existence of endangered 7 and threatened species or result the destruction or modification of the habitcrr of such species which is determined by the Department of the Interior, after consultation with the State, to be critical. i) The Wild and Scenic Rivers Act of 1968 (16 USC 1271 et seq.), as amended, prohibiting federaf assistance in the construction of any water resources project that would have a direct and adverse effect on any river included in or designated for study or inclusion in the National Wild and Scenic Rivers System. j) The Clean Air Act of 1970 (42 USC 1857 et seq.), as amended, requiring that federal assistance will not be given and that license or permit will not be issued to any activity not conforming to the State implementation plan for national primary and secondary ambient air quality standards. k) Flood Disaster Protection Act of 1973 (42 USC 4001), placing restrictions on eligibility and acquisition and construction in areas identified as having special flood hazards. I) HUO Environmental Criteria and Standards (24 CFR Part 51) providing national standards for noise abatement and control, acceptable separation distances from explosive or fire prone substances and suitable land uses for airport runway clear zones. m) Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 -- Title Ill. Real Property Acquisition (Pub. L. 91-646 and implementing regulations at 24 CRF Part 42), providing for uniform and equitable treatment of persons displaced from their homes, businesses, or farms by federal or federally-assisted programs and establishing uniform and equitable land acquisition policies for federal assisted programs. Requirements include bona fide land appraisals as a basis for land acquisition, specific procedure for selecting contract appraisers and contract negotiations, furnishing to owners of property to be acquired a written summary statement of the acquisition price offer based on the fair market price, and specified procedures connected with condemnation. n) Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 -- Title II. Uniform Relocation Assistance (Pub. L. 91-646 and implementing regulations at 24 CRF Part 42), providing for fair and equitable treatment of all persons displaced as a result ofanyfederal=orfederally~assisted program. Relocation payments and assistance, last-resort housing replacement of displacing agency, and grievance procedures are covered under the Uniform Act. Payments and assistance will be made pursuant to State or local law, or the grant recipient must adopt a written policy available to the public describing the relocation payments and assistance that will I:l. be provided. Moving expenses and up to $22,500 or mOle for each qualified home9wneE or up to $5,250 or more for l"l each tenant are potential costs. III .. 1Ill"l S> l"l ~~ 0) Section 104(d) of the Housinq and Community Development Act of 1974, (42 USC 5301 as rt)'o~~ rt) ~~ amended and implementing regulations at 24 CFR Part 570) providing for the replacement of all low- and moderate- <ONO income dwelling units that are demolished or converted to another use as a direct result of the use of COBG funds, lO ..;::: r" QI N and which provides for relocation assistance for low- and moderate-income households so displaced. 01-... :0 III <f" Q.~ ~ p) Davis-Bacon Fair Labor Standards Act (40 USC.276A -276a-5) requiring that, on all contracts and ~ IS> subcontracts which exceed $2,000 for federally-assisted construction, alteration or rehabilitation, laborers and Q,: mechanics employed by contractors or subcontractors shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor. (This requirement applies to the rehabilitation of residential property only if such property is designed for use of eight or more units.) The requirements N set forth in this subparagraph are inapplicable to individuals who volunteer their services under circumstances set forth in 24 CFR Part 70. c <->. Assistance shall not be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, ~ or fund any subcontractor or subrecipient during any period of debarment, suspension, or placement in ineligibility ~ status under the provisions of 24 CFR Part 24. c 0 C q) Contract Work Hours and Safety Standards Act of 1962 (40 USC 327 et seq.) requiring that 0 mechanics and laborers employed on federally-assisted contracts which exceed $2,000 be paid wages of not less E ~ than one and one-half times their basic wage rates for all hours worked in excess of forty in a work week. -'" .. Copeland "Anti-Kickback" Act of 1934 (40 USC 276 (c)) prohibiting and prescribing penalties for .. r) l- "kickbacks" of wages in federally-financed or -assisted construction activities. s) The Lead-Based Paint Poisoninq Prevention Act.- Title IV (42 USC 4831) prohibiting the use of lead-based paint in residential structures constructed or rehabilitated with federal assistance, and requiring notification 8 to purchasers and tenants of such housing of the hazards of lead-based paint and of the symptoms and treatment of lead-based paint poisoning. t) Unless otherwise provided for in EXHIBIT A, Scope of Services, this contract is subject to the following: Section 3 of the Housina and Community Development Act of 1968 (12 U.S.C. 1701 (u)), as amended. i) The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 (u) (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to very low- and low-income persons, particularly persons who are recipients of HUD assistance for housing. Ii) The parties to this contract agree to comply with HUD's regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations. Hi) The Contractor agrees to send to each labor organization or representative of workers with which the Contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the Contractor's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the persons) taking tI. applications for each of the positions; and the anticipated date the workshall begin" - (') " 10 '-- "" iv) The Contractor agrees to include this Section 3 clause in every subcontract subject to 10(') IS) (') IS) IS) compliance with regulations in 24 CFR Part 135 ((Paragraph 23 t)i) - 23 t)vli) of this contract)), C'I') .... '<t" IS) o IS) " and agrees to take appropriate action, as provided in an applicable provision of the subcontract C'I') IS)IS) OlN or in this Section 3 clause, upon a finding that the subcontractor is in violation of the If) ..;::: c ...... <II N regulations in 24 CFR Part 135. The Contractor will not subcontract with any subcontractor Ol"'" CO III '<t" where the Contractor has notice or knowledge that the subcontractor has been found in Q.IS) IS) violation of the regulations in 24 CFR Part 135. IS) IS) - 0:: v) The Contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the Contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 135 require employment N opportunities to be directed, were not filled to circumvent the Contractor's obligatigns under 24 CFR Part 135. 0 vi) Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions, termination 0 - of this contract for default, and debarment or suspension from future HUD assisted contracts. '" OJ ... w vii) With respect to work performed in connection with Section 3 covered Indian housing c 0 assistance, Section 7(b) of the Indian Self-Determination and Education Assistance Act (25 c 0 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) e U) requires that to the greatest extent feasible (i) preference and opportunities for training and .., employment shall be given to Indians. and (ii) preference in the award of contracts and "'" ... subcontracts shall be given to Indian organizations, and Indian-owned Economic Enterprises. Ql I- Parties to this contract that are subject to the provisions of Section 3 and Section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section 7(b). . u) Section 109 of the HousinQ and Community Development Act of 1974 (42 USC 5309), as amended, providing that no person shall be excluded from participation (including employment), denied program benefits or subjected to discrimination on the basis of race, color, national origin or sex under any program or activity funded in whole or in part under Title I (Community Development) of the Act. 9 v) Title IV of the Civil Riqhts Act of 1964 (Pub. L. 88-352; 42 USC 2000 (d)) prohibiting discrimination on the basis of race, color, and incorporates laws prohibiting age or handicap or religious affiliation, or national origin discrimination in any program or activity receiving federal financial assistance. - w) The Fair Housinq Act (42 USC 3601-20), as amended, prohibiting housing discrimination on the basis of race, color, religion, sex, national origin, handicap and familial status. x) Executive Order 11246 (1965), as amended by Executive Orders 11375 and 12086, prohibiting discrimination on the basis of race, color, religion, sex or national origin in any phase of employment during the performance of federal or federally-assisted contracts in excess of $2,000. y) Executive Order 11063 (1962), as amended by Executive Order 12259, requiring equal opportunity in housing by prohibiting discrimination on the basis of race, color, religion, sex or national origin in the sale orrental of housing built with federal assistance. z) Section 504 of the Rehabilitation Act of 1973 (29 USC 793), as amended, providing that no otherwise qualified individual shall, solely by reason of a handicap, be excluded for participation (including employment), denied program benefits or subjected to discrimination under any program or activity receiving federal funds. aa) Aqe Discrimination Act of 1975 (42 USC 6101), as amended, providing that no person shall be excluded from participation, denied program benefits or subjected to discrimination on the basis of age under any program or activity receiving federal funds. ab) Fire Administration Authorization Act of 1992 (P.L. 102-522), prohibiting the use of housing assistance in connection with certain assisted and insured properties, unless various protection and safety standards are met. ac) Excessive Force. In accordance with Section 519 of Public Law 101-144, the HUD Appropriations Act, Section 906 of Cranston-Gonzalez Affordable Housing Act of 1990, the Contractor has adopted and is enforcing a policy prohibiting the us~ of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and has adopted and is enforcing a policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstration within its jurisdiction. ad) Lobbyinq. TbeContractor assures and certified that: i) No federal appropriated funds have been paid or will be paid, by or on behalf of the lL undersigned, to any person for influencing or attempting to influence an officer or employee of M any agency, a Member of Congress, an officer or employee of Congress, or an employee of a 10 10 ., Member of Congress in connection with the awarding of any federal contract, the making of a MM S Ss federal grant, the making of any federal loan, the entering into of any cooperative agreement, '(;..,.S Ms' and the extension, continuation, renewal, amendment, or modification of any federal contract, MSss ...~o grant, loan or cooperative agreement. It) .. t- r- <II N 0'..... ii) If any funds other than federal appropriated funds have been paid or will be paid to any person CO Ill"" Q.S S for influencing or attempting to influence an offer or employee of any agency, a Member of S S Congress, an officer or employee of congress, or an employee of a Member of Congress in connection with this federally funded contract, grant, loan, or cooperative agreement, it shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. iii) It shall require that the language of this certification be included in the award documents for all 0 subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, u and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. iv) It understands that this certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, USC. Any person who fails to file the required certification shall be subject to a civil penalty of ..., not less than $10,000.00 and not more than $100,000.00 for each such failure. -'" 10 '" Q) I-- 21. Monitorinq and Evaluation. The State will monitor and evaluate the Contractor for compliance with the terms of tFle contract, and the rules, regulations, requirements and guidelines which the State has promulgated ocmay promulgate, including the State CDBG Guidebook. The Contractor may also be subject to monitoring and evaluation by the U.S. Department of Housing and Urban Development. 22. Severability. To the extent that this Contract may be executed and performance of the obligations of the parties may be accomplished within the intent of the contract, the terms of this Contract are severable, and should any term or provision hereof be declared invalid or become inoperative for any reason, such invalidity or failure shall not affect the validity of any other term or provision hereof. The waiver of any breach of a term hereof shall not be construed as waiver of any other term nor as waiver of a subsequent breach of the same term. 23. Bindinq on Successors. Except as herein otherwise provided, this agreement shall inure to the benefit of and be binding upon the parties, or any subcontractors hereto, and their respective successors and assigns. 24. Sublettinq, Assiqnment or Transfer. Neither party nor any subcontractors hereto may sublet, sell, transfer, assign or otherwise dispose of this Contract or any portion thereof, or of its rights, title, interest or duties therein, without the prior written consent of the other party. No subcontract or transfer of Contract shall in any case release the Contractor of liability under this Contract. 25. Non-Discrimination. The Contractor agrees to comply with the letter and the spirit of all applicable state and federal laws and requirements with respect to discrimination and unfair employment practices. 26. Applicant Statement of Assurances and Certifications. The Contractor has previously signed an "Applicant Statement of Assurances and Certifications" which is hereby incorporated and made a part of this Contract by reference. 27. Survival of Certain Contract Terms. Notwithstanding anything herein to the contrary, the parties understand and agree that all terms and conditions of this Contract and the exhibits and attachments hereto which may require continued performance or compliance beyond the termination date of the Contract shall survive such termination date and shall be enforceable to the State as provided herein in the event of such failure to perform or comply by the Contractor or its subcontractors. 28. Order of Precedence. In the event of conflicts or inconsistencies between this contract and its exhibits or attachments, such conflicts or inconsistencies shall be resolved by reference to the documents in the following order of priority: A. Colorado Special Provisions B. Contract C. The Scope of Services, Exhibit A _ 815~?~ 35 ~. ..g.' 4 .,,5'. 04/21/200 00 o 0. R 0.00 12j co 11 l ( I SPECIAL PROVISIONS I - (For Use Only with Inter-Governmental Contracts) 1. CONTROLLER'S APPROVAL. CRS 24-30-202 (1) This contract shall not be deemed valid until it has been approved by the Controller of the State of Colorado or such assistant as he may designate. 2. FUND AVAILABILITY. CRS 24-30-202 (5.5) Financial obligations of the State of Colorado payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available. 3. INDEMNIFICATION. To the extent authorized by law, the Contractor shall indemnify, save, and hold harmless the State against any and all claims, damages, liability and court awards including costs, expenses, and attorney fees incurred as a result of any act or omission by the Contractor, or its employees, agents, subcontractors, or assignees pursuant to the terms of this contract. No term or condition of this contract shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protection, or other provisions for the parties, of the Colorado Governmental Immunity Act, CRS 24-10-101 et seq. or the Federal Tort Claims Act, 28 U.S.c. 2671 et seq. as applicable, as now or hereafter amended. 4. INDEPENDENT CONTRACTOR. 4 CCR 801-2 THE CONTRACTOR SHALL PERFORM ITS DUTIES HEREUNDER AS AN INDEPENDENT CONTRACTOR AND NOT AS AN EMPLOYEE. NEITHER THE CONTRACTOR NOR ANY AGENT OR EMPLOYEE OF THE CONTRACTOR SHALL BE OR SHALL BE DEEMED TO BE AN AGENT OR EMPLOYEE OF THE STATE. CONTRACTOR SHALL PAY WHEN DUE ALL REQUIRED EMPLOYMENT TAXES AND INCOME TAX AND LOCAL HEAD TAX ON ANY MONIES PAID BY THE STATE PURSUANT TO THIS CONTRACT. CONTRACTOR ACKNOWLEDGES THAT THE CONTRACTOR AND ITS EMPLOYEES ARE NOT ENTITLED TO UNEMPLOYMENT INSURANCE BENEFITS UNLESS THE CONTRACTOR OR THIRD P ARTY PROVIDES SUCH COVERAGE AND THAT THE STATE DOES NOT PAY FOR OR OTHERWISE PROVIDE SUCH COVERAGE. CONTRACTOR SHALL HAVE NO AUTHORIZATION, EXPRESS OR IMPLIED, TO BIND THE STATE TO ANY AGREEMENTS, UABILITY,. OR UNDERSTANDING EXCEPT AS EXPRESSLY SET FORTH HEREIN. CONTRACTOR SHALL PROVIDE AND KEEP IN FORCE WORKE.RS'. COMPENSATION (AND PROVIDE PROOF OF ~UCH INSURANCE WHEN REQUESTED BY THE STATE) AND UNEMPLOYMENT COMPENSATION INSURANCE IN THE AMOUNTS REQUIRED BY LAW, AND SHALL BE SOLELY RESPONSIBLE FOR THE ACTS OF THE CONTRACTOR, ITS EMPLOYEES AND AGENTS. 5. NON-DISCRIMINATION. - The Contractor agrees to comply with the letter and the spirit of all applicable state and federal laws respecting discrimination and unfair employment practices. 6. CHOICE OF LAW. -The laws of the State of Colorado and rules and regulations issued pursuant thereto shall be applied in the interpretation, execution, and enforcement of this contract. Any provision of this contract, whether or not incorporated herein by reference, which provides for arbitration by any extra-judicial body or person or which is otherwise in conflict with said laws, rules, and regulations shall be considered null and void. Nothing contained in any provision incorporated herein by reference which purports to netate this or any other special provision in whole or in part shall be valid or enforceable or available in any action at law wether by way of complaint, defense, or otherwise. Any provision rendered null and void by the operation of this provision will not invalidate the remainder of this contract to the extent that the contract is capable of execution. At all times during the performance of this contract, the Contractor shall strictly adhere to all applicable federal and state laws, rules, and regulations that have been or may hereafter be established. 7. SOFTWARE PIRACY PROHIBITION. Governor's Executive Order D 002 00 No State or other public funds payable under this Contract shall be used for the acquisition, operation or maintenance of computer software in violation of United States copyright laws or applicable licensing restrictions. The Contractor hereby certifies that, for the term of this contract and any extensions, the Contractor has in place appropriate systems and controls to prevent such improper use ofl,ublic funds. If the State determines that the Contractor is in violation of this paragraph, the State may exercise any reme y available at law or equity or under this contract, including, without limitation, immediate termination of the contract and any remedy consistent with United States copyright laws or applicable licensing restrictions. 8. EMPLOYEE FINANCIAL INTEREST. CRS 24-18-201 & CRS 24-50-507 The signatories aver that to their knowledge, no employee of the State of Colorado has any personal or beneficial interest whatsoever in the service or property described herein. 875330 Effective Date: July 1, 2003 Page: 12 of 35 04/27/2004 03:53P 0.00 o 0.00 /<J 1 SPECIAL PROVISIONS I THE PARTIES HERETO HAVE EXECUTED THIS CONTRACT C ONTR"-C TOR: STATE OF COLORADO: BILL OWENS, GOVER1'IOR E.Qjle CO/.ll1fy ~ Legal Name of Contracting Entity J\rlichael L. Beasley, Executive D ! L/ - to 000 7 '" Ii?. Department of Local Affairs Social Security Number or FEIN S;~'d~ CONTRACT REVIEWER, h/1 A/; , J /) '/' ", ~ , ~ f ~ '. ..-" <:"" ( '7:/ / //}7/7 /'} ./1 rei ~~ t <1V;1;W;'i!c>5/ Z:/;J~ Print Name & Title of Autnorized Officer CORPORATIONS: (A corporate seal or attestation is required.) ALL CONTRL\.CTS MUST'BE APPROVED BY THE STATE CONTROLLER CRS 24-30-202 requires that the State Controller approve all state contracts. This contract is not valid until the State Controller, or such assistant as he may delegate, has signed it. The contractor is not authorized to begin performance until the contract is signed and dated below. If performance begins prior to the date below, the State of Colorado may not be obligated to pay for the goods and/or services provided. STATE CONTROLLER: Arthur L. Barnhart By ~A~~A"'- O.t.~ s Marie At, Controller Department of Local Affairs Date if J/ 3 / () ~ I / Page of pages Effective Date: July 1, 2003 HIII~~mlli~. 875330 Page: 13 of 35 04/27/2004 03:53P Teak J Simonton Eagle CO 121 R 0.00 0 0.00 iZ, t....; AMENDMENT A "- l\I-875330 Page: 14 of 35 04/27/2004 03:53P 00 0 0.00 R 0. EXHIBIT A SCOPE OF SERVICES COLORADO DIVISION OF HOUSING EAGLE COUNTY - #03-048G 1. PROJECT DESCRIPTION, OBJECTIVES, AND REQUIREMENTS. A. Project Description. Eagle County was awarded $140,000.00 to provide twelve (12) down payments assistance loans to home buyers in Eagle County who earn 80% or less of the area median income (AMI) using Community Development Block Grant (CDBG) funds. This program provides homebuyer training and includes 31 local lenders offering a wide variety of financing options including FHA and CHFA loans. All administrative costs are paid by Eagle County except for loan servicing fees, which are paid directly to the servicing agency, Colorado Housing Assistance Corporation (CHAC), by the homeowner. CHAC and local participating mortgage lenders will provide homebuyer education. Al/ loans using CDBG funds will be amortized and all loan repayments and payoffs will be used to provide down payment assistance to future homebuyers whose income is below 80% AMI. B. Form of Subsidy. $140,000 in CDBG funds will be used for down payment assistance. 2. ADMINISTRATIVE REQUIREMENTS. A. Administrative Requirements. -The funds will be administered in accordance with ll.. the requirements of this contract, Division of Housing (DOH) Revolving Loan l"') U'l U'l .. Policies and the Project Performance Plan (Exhibit D), The Contractor shall l"')l"') S.... Gl Gl comply with the administration requirements set forth in the most recent rt)oq-Gl Gl' Community Development Block Grant Guidebook, or such requirements as may be rt) U'l Gl Gl "'NO If) .' ;:: subsequently issued by the State. r--- Q,l N 0\...... CO III q- Q.Gl B. Section 3 Requirements. This project is not, subject to Section 3. Gl Gl C. Homebuyer Assistance Programs. Homebuyer Assistance Programs must have established policies which define the criteria and manner by which the N program will be administered and reflect the most current DOH Revolving Loan Fund Policies. 0 u Such policies must include, but not be limited to, program eligibility - Q) requirements, allowable costs, CDBG maximum assistance amounts, advisory m '" w and loan committee composition and role, use of CDBG funds in conjunction .~ with other funds, collateral requirements, files and reports, accounting, receipt and selection of applications, loan terms, Housing Quality Standards ~i inspections of units, program changes, conflicts of interest, and grievance/appedl procedures. Said policies must available for review during the project monitoring by the State. - Financial assistance provided to individual households may take the form of a loan, deferred loan, or other form as specifically authorized in advance by the State. Deferred loans shall not exceed 25 percent of all loans made during the 12-month period of the contract. 3. ELIGIBLE BENEFICIARIES Eligible Beneficiaries. The prospective. purchasing household must have a gross income that does not exceed 80%, of the AMI. A listing of the incomes for all family household sizes is attached as Exhibit B. 4. PROPERTY STANDARDS. Down payment and Acquisition. Property must meet local housing standards or codes at the time of initial occupancy. If no standards exist, then HUD Section 8 Housing Quality Standards for Existing Housing must be used. 5. NATIONAL OBJECTIVE. Down payment Assistance: This project meets the national objective of benefit to low and moderate income persons as required in S570.483(b)(3). 6. TIME OF PERFORMANCE. The Project shall commence upon the full and proper execution of this Contract and the completion of the appropriate environmental review, and shall be completed on or before April 30, 2005. However, the Project time of performance may be extended by amendment, subject to mutual agreement of the State and Contractor. To initiate this process, a written request shall be submitted to the State by the Contractor at least sixty (60) days prior to April 30, 2005, and shall include a full justification for the extension request. 7. BUDGET. Funds from sources other than CDBG shall not be considered matching funds subject to federal audit requirements. Project Project CDBG Funds Other Source Activities Cost Funds Total Mortgage $2,200,000 $2,200,000 31 Financing Local Lenders Leverage Estimate I Down $62,700 Eagle County I I Payment $210,200 $140,000 $5,000 Town i Assistance Of Gypsum $2,500 Town of Eagle Administration $15,000 $15,000 I TOTAL $2,425,000 $140,000 $2,285,200 I ftlll~mt~- ~~~~~~;753P Teak J Simonton Eagle, CO 121 R 0.00 D 0.00 ( ( 8. PAYMENT SCHEDULE. Payments shall be made in accordance with the provisions set forth in Paragraph 11. within the main body of this Contract. - Interim Payment-Paid upon receipt and approval of written requests from the Contractor for funds to meet immediate cash needs. REMITTANCE ADDRESS Eaqle County P.O. Box 179 Eaqle County. CO 81631 9. CONTRACT MONITORING. The Colorado Department of Local Affairs, Division of Housing shall monitor this Contract in accordance with the provisions set forth in Paragraph 21 within the main body of this Contract. 10. REPORTING SCHEDULE. The Contractor shall provide the following reports to the Department of Local Affairs, Division of Housing in accordance with the provisions set forth in Paragraph 18 within the main body of this contract: A. Financial Reports. One copy of the quarterly Financial Status Report shall be submitted within 20 calendar days of the end of the calendar quarter. This report must be submitted on forms provided by the Division of t19w:;ing. No requests for payments shall be processed if the Contractor has not. submitted' this quarterly report. B. Narrative Reports. One copy of the quarterly Narrative Perfor~?lnce Report shall be submitted within 20 calendar days of the end of the calendar quarter. This report may be submitted on forms provided by the Division of Housing. No - . .-- requests_ for p51yments shall be processed if the Contractor h_~~-'JQLs_lJQmitted this quarterly report. C. Project Completion Report. Within 30 days after the completion of the Project or the final draw, whichever is later, the Contractor shall submit 1 copy of the Project Completion Report, 2 copies of the Final Financial Status Report, and 2 copies of the combined Beneficiary Report on forms provided by the Division of Housing. 11. PROGRAM INCOME. This project will generate program income. Program income must be used in accordance with the most current DOH Revolving Loan Fund (RLF) Policies. 12. INTEREST. The Contractor shall expend the CDBG funds within 15 days of receipt and shall not earn interest on the funds prior to expenditure. 875330 Page: 17 of 35 04/27/2004 03:53P Teak J Simonton Eagle, CO 121 R 0.00 D 0.00 .... .. --- . t;VAl..lrlE'O '~y '2l{CFJ, r ~13, 1994' - -......... ........ ~ ==== ~ ..-~ - - - = = = :. = .. - -- -- -- . -- - - - -- - - - - - - - - - -- - - - - -- -- -- ~ - ~ . - - -- - - - - - - - - ..., ~- - ... .. ..-- - - - -- - - - -- - . .. .-,..... .. .... ..... = :: - - - - --- --- --- -- -- - - - - - = = =~ - - - - - - _.- Part II - = . L!! Department of . = ' '., . . :: s:. Hous_ng and' Urban . ~ ~ . Development - = -----.. . , ~ .! Offtce of the Secremy . 1 . =:..= ~ 24. ~RPart 84 . . , . i E ., . Unlform Admlnlsbative Requfremertls for . :.. =. A Grants and Agreements With fnstitutfQnS ..? of Higher Education. Hospitals -and Other ~Profil Organlzations-Reed OMS . CtiaIIar A-410; interim and FanaJRule . ~ . a . . - ~.~ . . e .. .-:. I _. ....-.-....- "1'heCD-IIOO'BIW uorBTEa CD'H~R~ -. ., CHR-09-452 ~> Sil\,~~~roaM~10 F~'l Regiater09/13pp47010- (301) 588-6380 : Fil., HUD 0:1 U 47010 . FederafRegister I V011i9, No. 176 I Tuesday, September 13, l;'~~' I J:\Ul~" CUI... .n~o-._.----- '- DEPARTMENT OF HOUSING Ah..... . P~ and C:OJ;lttacts.,Dep~~ ~pi~nts shall apply .th.e provisions URBAN DEVELOPMENT ! . otHousing ,and Urban Development. .' of this ~ar to su;breC1plen~ 451 seventh Sueet~ SW. Room 5262, perfomung .suPstantive worrunder . Office of the Secretary '. Wasliington. DC 20410. Telephone:'. grants and agreements tluI.t ~ passt:ld- , . . (202) 70841294:1'DD:120211OS:-~1n through or awarded by the pnI118q . 24 9FR Part 84 (These are not toll-free numbers.) . _ ! recipient. This rule does n~t apply to , No. R-04-1736; FR-3639-f-(1) SUPPLEMENTARY IHFORMATIOH:' grants. contracts. or o~er agreements (Docket , . Office ofManagemenfand Budget between HUD and units of State .or l~ . RIH 25Ot-AB74 (OMB) Circular A-no provides governments c:o~ered. by OMB. Circular . dards Ci b" .st d A-102. "Amnlnlstfative Requuements Uniform Administrative Requirements ~ . oro t'I;~~n,::~~:-. for Grants and Cooperative.Agreements for Grants and Agreements With um o~t>: am~ng to State. Local and Federally Recognized Instfb.ltlons of tUgher Education. the adm~~o:::~=~ a:~ghe~ Indian Tribal Governments." as codified Hospitals andOIher' Non-Profit a~en Wl. . in 24 CFR part 85. In addition. Organiz:atlons;-Revised OMS Circular education. ~~lta1s. end other non- subawards and contracts to State or 10 profit orgamzations. u A-1 OMB Circular A-no was issued. local governments are not covered by AGENCY: Office oC the Secretary. HUD. under the authority of 31 U.$.c. 503 (the this rule. However. this role applies t~ ACTION: Interim and final role. Chief Financial Officers A.ct). 31 U.s.c. subawards made by S~te,and local . 1111. 41 U.S.c. 405 (the Office of gover:nments to organlZations covered SUMMARY: Office of Management an? Federal Procurement Policy Act). by ~l~ rule. HtJ!.l shall apply the . Budget (OMB) Circular A-110 provides Reorganization Plan No.2 of1970. and proVlSlOns OCthlS part to commerclal standards for obtaining consiste~cy :md E.O. 11541 ("Presaibing the Duties DC organ!za~ons and intemati?nal . unifonnity among Federal agenCles tn the Office of Management and Budget organIzations (when operating the a~tio!1 o~ 8f8:I1ts and . . and the Domestic Policy Council in the domestically). . agreements Wlth mstitutlons of higher Executive Office of the President"). The deftnition of "award" does not education. hospitals. and other non- OMB issued Circular A-110 in 1976 include technical assistance. which profit o~anizati?ns. . and made a minor revisio~ in Fe,bruary provides services instead of money: OMB lS5Ue~ Cucula.r ~- ~ 10 m 1976 1987. To update the circular. OMB other assistance in the form of loans. and made a nunor reVlSlon m Febroary established an interagency task Corce to loan guarantees. capital advances under 1981. "yo updat~ the Circular. OMB review the circular. The task force the Sections 202 and 811 programs. es~bUshed ~ mteragency task force to solicited sug&estions Cor changes to the interest subsidies. or insurance; direct re~e'Y' the~. The task force circular from university pups. non. payments of any kind to individuals; S~hC1ted sugg~ons ~or changes to the profit organizations and other interested and. contracts which are required to be Cucular fro~ ~verslty group~. non- parties and compared. for consistency. entered into and administered under pro~t orgam.zations and other 1!lterested the provisions of similar provisions procurement laws and regulations. parties ~~ com~. for con~~ency. applied to Sta.te and local governments. Therefore. this rule does not apply to the ~roVlslons of SUDllar pOOVlSlOns On August 27. 1992. OMB published a these types of activities. Consequently. applied to State and local gov~mments. notice in the Federal Register. at 57 FR this rule does not apply to any matter On .Nove~be1: 29. 1?93i OMB lSStled a 39018. requesting comments on. ~ involving funds which would be revised circular which re~ects the proposed revisions tQ OMB CircUlar A~ covered by a regulatory agreement results of these: effo~ ThiS ~al rule 110. Interested parties were invited to between a mortgagor and the Secretary. adopts the reYlsed ~lar as It ~ submit comments. OMB received over executed under Sections 201. 207(b). to HUD. Howe,:er. this ~le contai~. m 200 comments from Federal agencies. 232(d)(1). 242(d)(1). and 236 (including subpart E. speaal proVlSIOns relating to non-profit organizations. professional Rental Assistance Payments) of the the use of l~p ~m grants. Th~reC~re. organizations and others. All comments National Housing Act: Section 101(a) of subpart E will be ~t~ ~ an mtenm. were considered in devel.oping the final the Housing and Urban Development rule. and the public 1$ inVited to submit revision. On November 29.1993. at 58 Act of 1965; and Section 201(a) of the comments on subpart E. FR 62992. OMB issued a ievised Housing and Community Development DATES: Effective date: October 13. 1994. circular which reflects the results of Amendments of 1978. Comments due date: Comments-on these efforts. This final rule represents subpart E are due on November 14. HUD's adoption of the revised circular Other Matters 1994. . as part-84 of title 24 of the Code of Justification for Interim and Final Rule ADDRESSES: Interested persons are Federal Regulations and sets forth the . invited to submit comments regarding provisions and procedures HOD will-.. .' The Department has determined that subpart E of this rule to the Rules . . Collow in compliance with the uniform' notice and public comment are . Docket Clerk. Office of General Counsel. requirements set for Federal agencies in unnecessary. and contrary to the pubhc Room 10276. Department ot Housing the newly revised OMB Circular A-110 interest before making this rule effective and Urban Development. 451 Seventh regarding the administration of gmi~to because the substance of the rule . Street. S.W., WaShington. D.C. 20410. and agreements with institutiOIU& of received. public comment when the Communications should refer to the higher education. hospitsls.commef!:ial circular was published on ,^:ugust 27 ,above docket nWllber and title. A copy organizations and international 1992. All comments received were of each communication submitted will organizations when operating '.reviewed and considered in the be available for public inspection and. domestically, and other non.profit : development of the revised. circular. copying between 1:30 a.m.. and 5:30 organizations. If any statute specifically ~owever. the Department win accept p~ weekdays at the above address. prescribes policies or specific... . -'.0:::';: and review any comments rea:ived on FOR RJRTlieR ~11OH COHTAcn requirements that differ from the . ""''SUbpart E because of the selective use of AUceann B: Muller, Policy and standards provided herein. the . tertainprovisions as they apply to the Evaluation Division. Office of provisions oC the statute shaIl govern. -- use ~-C1um-p-sumgrantr----:-:---:--- . / Federal' Registr ( .1. '59;;No.. 116 -I. Tuesday, Septeuror< , . ..994 / Rules and Regulations' 4: ,- Executive Order 12866. : ;. . SetiUannuQl.i.gend.aofRtiiWQtil!~ . . .M.36innmgibI8PrO~. . ~.rule was revi~ed by the Office. 1$s nde wa; ~ as:tteoi n~r- . :. ~~ ~perty tNs:t relatiooShi~ of Management and Budget,(OMB). ~5~ in the Department'. ~ua1 . - rrr.......~Sbmdards .: UDder.ExecutiveOrder.l~on . AgendaOf~pub~~D 8oUO Purposeofproc:ureme:ntstaDdard . ~tory PIllJlniT\g ane{ review. issued Apri125..199.4 (59 FR2042f. ~34) in '801.41 Recipient :::bilities. . by the President on SelhteI,nber:30. 1993.. acconIance with Executive OMer t2866 .84.42' Codes of CXln \;ld.. . Any changes made in e role'. . . '. and the. R.egu1atory FleXJ."bility Act.. 31.43 .Competit1oJ:a. . subsequent to its submission to OMB . . '. - . . .- 84.<< Proc::uremeDt procedures. are identified in the docket file. which List ~Subjeds ID 24 CFR P.Ul M :. 84.~5 O:ast end price analysis. . is available for public inspection with. AccountiDg, Colleges mid universities, 84.46 Procurement ~ the Rules Dac::ketQerk. RooJD 10216 .. Quit ~ousing and .. 84.47 Conttact ~tiOD. Dep8rtment of Housing and Urban . . community 4Ievelopment, Loan _. 31.48 Conttact p1'OV1S10ns. Development. 451 Seventh Street. SW. programa-Hous:i and community aepo.u ud Records WashiDgton.OC20410. . '. deve~Nonpro6t~tions. . 84.50 . PurpOseofreportsaucf.records. E:' ent.ol Review Re~rtiDg and recordbepmg 84.51 Monitoring and reporting program nVlronm requuements. performance. A Finding of No Significant Impact Ac:c:ordingly subtitle A of title 24 of 84.52. rmancial reporting. with respect to the environment bas the Code ofFedera1 Regulations is 84.53 Retention and eccess ~imnents' been maae in accordance \\!ith Ifl!D amended to add a new part 84. . ~ ~tions at 2~ CFR Part 50. which COl'slding of subparts A through E and TermiD&tion lIIld EDf'orCemat un~lement ~on 102(2)(Q of the appendix A, as conows: . R4.60 Purpose of termination and . t-lational Envuonmental Policy Act of . eDf~ent. 1969. The F"mding of No Significant PARt' 84-GRANTS AND 84.61 Tenidnation. Impact is available for public inspection AGREEMENTS WInIINSTITUllONS 84.62 Enfon:ement. between 7:30 80m. and 5:30 p.m. OF HIGHER EOUCAnON. HOSPITALS, S b rt D-After..u.Award R f ts weekdays in the Office of the Rules AND OmER NON-PROFIT U pa equ remen Docket Clerk. Office of the General ORGANIZATIONS 84.70 Purpose. Counsel Department of Housing and . 84.71 Closeout procedures. Urban n,velopment. Room 10216 451', SUbpart A.-GeneraI 84.72 S~bsequent adj~ents and Se th W bin' See. - CXlntinuiDg IeSpOnsibilities. Yen Street. SW.. as gtOD. DC, 84.73 CoUection of amounts due. . 20410. 84.1 -Purpose. . . . .. 84.2 DefiD1tlous. SUbpart E-Use of Lump SUm Gnlnts Regulatory Flexibility Act - 84.3 Effect 011 other issuances. 84 80 Co d.ti fur fLum S . . . 84. DeviatioDs. . n 1 ODS use 0 p urn The Secretary, m accordance With the a.is Subawads. (fixed price or fixed cmount) grants. Regulatory Flexibi~ Act (5 U.5.c.. 84,81 Definition. 605(b)). has:review this role before SUbpart B-P.re-A~ Requirements 84,82 - Provisions applicable to lump sum publication and by approving it certifies 84.10 Purpose.' grants. that this role does not have a significant 84.11 PrHward policies. .84.83 Property standards. economic impact on a substantial . 84.12 Forms fonpplying for Federal. 84,84 Procurement standards. number of suiaU entities. It pertains . assistance. . ' 84.85 ~ ~d records. ' only to the administration of grants and 84.13 Debannent and suspension; Drug- 84.86 Tenmnation and enfOrcement. 'th ' .. f h . gh Free Workplace. 84.87 Closeout procedures. subseq'.rent a~ents WI . institutions 0 1 er 84.14 .Special award CXlnditions. adjustments and contlnulng education. ~OS~ltaIs. ~d other non- 84.15 Metric system of measurement. . responsibilities. profit orgamzations. 84.16 'Resource .Conservation and Recovery Appendix A to Part a.c-cOntra<:t Provtslons Executiw: Order 12612. Federalism 84.1:a- CertmcatiODS d . Authority: 42 USe. 3S3S(d). Th General l. th an representations. - e Counse as e . . Designated Official under section 6(a) of Subpartc-PosM.w ReqUIremen~' Subpart A-GeneraI Executive Order 12612. Federalism. has FmanciaI ad P.rosnm Managemeut 584.1 Purpose... detem1ined Jhat this rule does not have 84.20 Purpose of finandd aud progiam. '.' "federalism Implications" because it management.. , This part establishes unifonn does not have substantial direct effects 84..21 StandaIds for financial management. admin.iStratiw requirements for Federal on the States (including their poUtical systems.' , grants and agreements &warded- to subdivisions), or on the distribution of 84.22 Payment. institutions of higher education, power and responsibilities among the 84.23 Cost &haringor matchipg. hospitals. and other n-:r:6t V8rious levels of govemuient... ~ =. ~ d organizations. Additio or . .' '. laus. _ 0 au ~ inconsistent requirements shall not be Executive Order 12606. the Fanuly 84.J ~;J~'audits. impOsed. exCept as p~vided In SS84.of. 1ha General-Counsel. as the. 84.27 . Allowable costs. . . and 84.14 or unless sp6cflfically required D-tvtted Official under Executive 8U8.Periodof anilabWty of funds. by. Federal statute or 8xecutlve order. . - Order -t2606..the F~ has' " -. . Non--profit organizations that iinplement determfned that this does not have Property Shndank. . ::. Fedeial programs for the States_also poten~ ~cant Impact on ~y _ 84.30 ~ of~ ~dards. subjeCt to Stafe requirim1eIits. foqnatiou. m8intenance. and general 84.31 Insutance ~~. ' . . -... well-being. It pertains oiUy to the 84.32 . Real property. " . - 584.2 Deftnltfoas.' . dministritioii f d' - . 84.33 F~and exempt '. . " a . .0 grants an a~ents prop..d)'.. ._ _ _ Acczued eicpenclitu.res means the . with ~lnstItutiOl1S of higher education. 8.f..3.i Equipment. , clwges incurred by the recipient d~g hOSPlfBk: and other.nODp~fit, SoUS SuppUes and other.dabJe a given period requiring theprovi~on of orga.nb:ations. propert). funds for: . . - 4701% 'Federal Register I '"VoL ~Io. ~':I Thesday. September' -13". .t991( .Rules and Regulations . ~ 'OO~8DdotftertimSibleproperty Cost-.horilttJormaIdUDlmeeDStUt. :.t. ....1~.wb~~~.~gible f recelvad: .... .' . ". .' . ." . portioRof pro,ea 01' prop:am. costs not " or ~ ".'- (2)Setvi~by-empIoyees... bome-hyHUD.......,. Obligoticmsmeanstbeamounts-oC . _ con~' . ..1UtdOlher" ~ ,patAfOf~.1D8IIDethedateOl1' ''OrdersplacecL.f?OBtradsandgran!S~ . d ., " . ' . whJdl'aJ1 work UDder. awardis' '., awucJea. senu:es 18Ceived and sim.Uat pa~ oth:r amounts ~rng qwed compleJed_the'dateOllb.want. ~CIOS duriag. given ~ ~t - underp~forwhichDOCurreAt ' .ddCUIDeat.<<.,~OI'" th~pa~~!.the~od.' p1ent~ ~rvices or ~ is 'reqtiirecl . . 'amendment thereto. ~ which BUD e same ora &-~ pen . . ~ " ed . tb f: cnnn.:n......""'.emls. 'Outlays 01' expendjtures meaDS ' ~cau .1J1~e~ e.~o.~. -rD;~a>>ts~thosecbarges charges made to the project or program. rrJ1,. ~ ~ afP~ pen~ . to an awardtbllt HUD........i~ to be. They may be l8J*led on a cash or. :" !,D=. ..I.' ad b th " .' unallowable. iD acCIl:lIl'daDce with the,- , acciual basis. For repoJ:ts prepared on . ~) ~l'Vlces penorm 'Y e , 'liable F~Cost """:'-:-1_ or ,cash bssis. owla,s aJ:8 the sum of-c8sh. roctplent; and '. app _fU~_.J" ..a...L..._--ts ~ ..I.-~..1.~--...I'or' COO) Goods and other tan..:1.L. p1'ftftA_ other tes:ms and ~ cxm.lAU.I1N m ~ lor ~ ---5- ~ ~ --1'--3 theaward. ' ' goods and services. the amount of deg~o~~ ~ to the Equipment means tangible indirect expe~ ~ th! value of .. Ii which .' noni1xpendable peI$OID8l property . third party in-lind contributiOD$ reClp1eBt 01' . no ~ sem.ces including exempt ~ charged applied and the amount of cash or f!8~orman~ IS reqwred by the directly to the aWald. . . uaefullife advances and payments made to . reapl81!t.. .' .'.. of more than 0IUIl yearand an subrecipients.'FCX"reports prepared on Acq"!si~~~ ~ of eqwpmen.tmeans acquisition cost of $5000 or more per an accrUal basis. outlays are the sum ol ~e n~ mvClllC8 pm:e ol~ ~ment. unit. Howevw.-consistent with recipient cash di~ for:dired. charges IDcluding the cost. of ~odifi~~.. oliey.lower limiJs may be established. for goods and tenlce$. the amount of attachments'lICC8SSQn~ or auxiliary P Exi:e$s plOpeJtl meeDS property UDder indirect expense inauTed. the wIue of. apparatus necessary to. make the the aJIltro! ofHUDthBt. as detamdned in-kind coa.tribations applied. and the p~ usable ~ ~ purpose far by the Secrebuy. is-no Joager requi:r8d net inaeue (or decrease) in the which It ~ ,cq~ Oth~charges., for its needs or the discbarge of its amounts owed by the recipient tor such as th~. cost of installalloD,. '. sibiliUes. .' goods and othet property receivecL tor ~po~ taxes. dutybeOl',JllOtectiv8. ~ptPrope.ltymeaftS tangible . set vices ~CUl.u:m.i by employees.. . m~t lDS11IaDC8. aJia!l ~n~I:':Jed personal property acquired in whole or. contrac:tors...ubrecipienta and ~ . . orexclu~ed from _.umt~!-W~ in pert with Federal funds. where mm. payees and other amounts ~ming . cost in ~ with. ~;reapient. . has statutory authori~ to nst title ill owed under-programs .Cot which ~o regular accounting p~ the recipient without fu:rther-obligation C1U1":nt serviCes.Q1" pe~rman~ ~ Adwnce means a payment made by to the Federal Government.,An example requbecL . . Treasury check O! other ap~riate of exempt property authority is Persoaal propertymeans property of . paymeot~.""$m to. rectp19Dt upon contai.rl<<l in the Federal Grimt and any kiDd except real property. It may be its request either before outlays are Cooperative Agreement Act (31 U.s.c. tangible. haYing physical existence. ~ ' made ~l==nt or through the U:liO 6306). far property acquired under an ~n~hle. having no ph~ca1 of pred .payment schedules. award to conduct basic or applied existence. soch as copyrights. pa:tents.; Award means .6uancial assistance tJmt research by a non-profit institution of or securities. . provides h})purt or stimulation to higher eduCation ot1lOJlooprofit. . PtiorapprrwaJ meaDS written accomplish a public purpose. Awards organization whose priDcipal purpose is appronl by an authorized official include grants and other,~~ in, conducting Jcl~l'ic reseuch. . evidenciDg priOl' consen~ .', the form of money or property m lieu Fedeml~ means the. . Program Income ~eens'gross mcome ofmoney. by HOD to aD. eligible. Federal agency that ~es an. award earned by the recipient that is directly ncipient. The tenD does.notinclude:. to the ~ . ' ,generated by a supported activity or technical assistance. whichprorides : . 'Fedeml,J'i:mtls. ~ meaas the . eamed as a result of the a'lWU'd (see services instead of moner. other total amount ofFederallunas ob1igat~. eJCCbIsioos-io. is 84.24 (e) and (h)). . assistance in the form oUoans..1oan- '. by mm for_ by the rec.ipieirt.1'bis PIogtam income includes. but is not guarantees. capital advances under the . amount 1IUlJ" fodl.. any ai1thori:zed: limited to. incOme from fees Cor services Sections 20Z aad 811 progrruns. interest carryover of unobligated fUnds &om . pedormed. the use 01' rental of real or sabsidies,.or iL-~..direct ptsJ_ats rior~ Pedodswben permitted ~ ptopeaty ~ under., of any kind to IDdiYiduals; and. -, .. ly mm regulations or implementing federall)'-fanded FOjects. the.sate or. '. contracts wWc:h are requUed to be . bistruction&' ,- . commoditiesOr'ltems fabricated under entered Intoend admhDsteIed under Federal sIJare'o!ieal property. '.' an awam. ticeme tees and royalties OIl proc::urement laws amd repJatious. equipmeDt;or mppllesmeans th8t patents and c:opyrights.lDHl ~ OIl 0slI Omifti>ationsmeeDs the -', ~tage of the propalJ.s acquisition loans ma4e with award funds.. Jnterest . ~......CIIIa'Oatlsy. fDc'IacIin8 the' .cOsts-and any Impto~: ~'" ", earned 011 .,adyances of Federal ~ Is eatlayef'1IlOIleJ~ to the expenditures paid witltFederaltuzuk not program mcome. ~ as ,~ reclpiootbJ~~'.' .' . run~peiiod~~~.of otherwis8-prcrrided~~.~ . ~meeasthe~bywlrlch 'tfmewheli:FederalfimdiDgisawilabla. ~ orthetermnndcondit1.oo$Ofthe " HUDd~tilehlh.pplicable, 'forob~bythe. .-.t..' . 1l'W8Dt"egDm~Goesnot'" 1ldmh~~$b'alkfli1lttioDs'1IDd'8Hrequiioed , 'lntatigib1t!".~~d@t:, .-.. ~--""efprihdpel_'-.' -orl:OftHeawardhave-beeuc:ompleted. ~instmiJlentsrneaDS. ' .ia#nmaa:to. 'Ioanii~~ts.~etc;:;or by the redpleut'andflUD.' . . ~'. . tntdAm~~pateIds_O: ::', '1nterest'eiIn1edoa'imy1JftWI:.;., . . C9nricf~.~~ ~. patentappIlta1iODS8Iid'sad1~i ..I'mject~m~an~,.". ,'. COftd1BderiB'cW'iMwstibliwanL': 'ss.IOanS.noteslindo(herQ8bt., ..' , costst_lletti1b:bitbnppJicab1e':'. . aed a p~'subcoancrumler. ~ ~18I"1I."";stock. '. Federah:ost;1Iriacfples;iDCurrecl'" Ii;". . . redpient'Sorsubrecipieirt'scontnd.. '. 'udMherinStruDiemsofp'rOperty.. '" "redpietltand the value of -the.... '.' :. ~ ' . . ,," /~' 1. . : .'.;_ . Federa1Registel ' '"'''' 59,.. No. 176' I-:Tuesday, September ....,~ -/. Rules and Regulations 470 . , ~ < -r.. . _Conmbutions madeby.thitd patties in. . SmalJ'o~ meann'~ ~ .' . -. . 'T~~~O~ ~.the <?m~OI . accomplishing the objecli~ pfthe coopm:ative agreement n~ exceeding. . :: ofHUD ~p-. m whol~ or ~ . award;c:huing the project ~~Pd:- .' -. . $100.0.00 or tbe:.smal1 p~ ' : ~ ~~t!nn a~nt at.~y time - 1'fo]ect);iriod means ilie ~. . threshold-fixed at 41 U.s.(;. 403(111, . prior to ~~ t;Ia~~ of compl~on.- es.taJlliShed in the award a~ent . .' whi~eVeris greater.. - _ Third'~ in-kind contributioltS . during which HUD sponsorship begins .' Suboward meanS: . .' '. .' means the value of non -cash and ends. . . -. .:. ~.. ." . - . (1) An award of fiq~ndal 8~idance in contributions provided bY non-Federal '. P.nipenymeans. unl~ othe~ thelami of money, or ProPerly in lieU . third PBrt!es. Third ~ in-Jdnd stated~.real properly. eqmpment. . . .' of money~ made under an award by a contributi~.D:'ay be m the. fo~ of ~ in~~le property and debt ., - . recipient to an eli81""ble ~pietlt or- proJ*tY. -eqmpment.1mpplies and Othl instruments.. . . . . . by a subrecipient to. lower tier '- . . : expendable property. and the value of -Real ptOpertymeans lanet including subrecipient. The term Includes . goOdS and services directly ~fiting land improvements. structures and . .' 6J1jq)Cj,,1 a.msw:.<:e wheiJ. piovided by ~d specifically identifiable to the. ap~.llnces thereto. but excludes . any lega1&greement; even if the . . project orszm . ; - moval?l~ mAt!hinery and ~P1l!ent; agreement is called a contiact. b~ does' _ .UnliqiJi obligotions. fo~ ftnanci.a Re.csPJfmt means ail ~on. notJnClude p~t of g~ and '. reports prepared ~ a.cash baSis. means recel~ financial assistance ~~, serric:es nor does it Include any fcnm of the amount of obligations _Incutted by &:om BUD to ~ out a p~ o.r essfstance which is excluded from the . the recip~ that have not been paid; p~ "J.1:le ~ in~des pub~c ~d . definition ofHaward". FOrl8ports prepared on an ac:x:rued pnv~te insti~ti~ o!~~ education.. (2) For Coimnunity Development' expenditure basis; they I8present the publ!c,.and.pnvate ~ospl~ and other Block Grants. the term "Suhaward" does am~~t of obli~tiODS incuiied by the . quasl::pu~lic and pnvabte non-Plim~~tted not include the arran~ent whereby reaplent for which an outlay haS not orgtUUZlltiO~ su~ as. ut n~ 1 the rime reci ient transfers funds to been ~rded. . to, CO~UDlty action agenCl~ research anolher entity ~d that entity is the Unobligoted boIance means the . institu~es; educational ~OC1ations. and roject. A distinction is made between portion of the funds authorized by HUD health centers. The tenn mcludes p ch --Afi I th furtheran' fth that has not been obligated by the . I . ti. . t ti' I su . .......... er lor e ce 0 e commerc1a orgamza ons. m ema ona . .. t' 1_ d th transl- recipient and is determined by . . . U h tin pnme reClplen s goau; an . e",r . .... orgamza ODS w en opera g f L--ds t b" t wh . deduCting the cumulative obhgal1ons d . II ( ch 'fth 0 I~ 0 a su reaplen ocames - omestica y su as agenCles 0 e t acti.u d . ta' 'LI t th from the cumulative funds authorized. UnitedNatioDS)w~charerecipients. ou. VI. e,:>an ssaccoun iU~e. 0 e UnrecoveredjndLrectcostmeansthe Subrecipielits.'ar contractors or pnme reClplent. For ~ple, ~ ~ difterence between the amount awarded subconti8Ctors Ofrei.:lpients or _ C>BG a}Vard where a pnme ~p~en~ and the amount which coula have been SUb-:p'l.ents. The term- dOes not bas as its program goal the reVItalization _~_.J d th .., ed' .- . f d t '.th funds . awuueu un er e recIpient s approv include govemment-oWned contractor- - 0 a own own area. e, . ted' .J._~ 1 . . . .' traDsferted to a business in the negotia. m~ cost ra e. operated. tacilities or r8search centers . ode! . Working capital odvance means a providing continued support for dQWD.loWn area to !8Dl ~ts sto~ '. procedure whereby funds are advanced mission-oriented. Jarge-scale programs 'would not ~ CQIlSldered a subaward., to the reapient to cover its estimated . . . that are govemment..owned or . "subject to thlS part 84. . .. dish' .., :..._~- ~ . .. . I controlled.- or are designated as .. . Subrecipient means the legal ~tity to . ur;;ement n~ lor a gIven lDltla federally-funded research and . ~hich asubawardls ma~~ and.which:. penocI. development centers.1he term does not 1$ accountabla to the ~plent for the ' S 84..3 . Effect on other Issuances. include mortgagors that receive ~ of the funds p~ded. ~e.term' . For awaids subject to this part. all . mortgages insured or held by HUD or ~clud~ commerc1~ o~!lon:> and ' administrative.requirements of codified mortgagors or project owners that mtema!lonal organu:ations ~perating prograni regulations. program manuals. receive capital advances from HUD do~esti~~y (such as agenCles of the. handbooks and other nonregulatory under the Section 202 and 811 . Umted. Nations). " '. . materials which are inconsistent with p~ . . . _' SUPF!Jies me:ms all personal property the ~ents of this part shall be .Itesean:h ~~ deve1opm.e1!~ means all excluding eqmp.m~t. intangible . Superseded. except to the extent they research actiVities. both basic and - property. and debt instnunents as . are required by statute or authorized in applied. 8nd all development activiliils defined in this section. and invenUons accordance with the d~ations . : that are supported at universities. of a contrador conceived or &rst provision in S 84.4. colleges. and otherJion.profif actually reduced to practiCe in the . - institutions. "'Reseerch" is defined as a _ perfonnanc:e of work under a fimding . S 84A DevIatIons.'. sy~niatic study directed toward fuller' . agreement (~bject inYeritions."J. as' The Office of Management and Budget scientific knowled~ or Understanding defined-in 31 Q"R part 401.."Ri~ to -, (OMB) may pnt exceptions for c1as:ses- otthe subject studied. ~elopment!' is Inventlons.Made 'by Nonprofit :-:". . ofgnnts briecipients subject t01l1e: , . the systematic use ofbcrwledge-and .' Organizations ~d-SmaU BUsbieis Firms' reqWmnents or-this rule when." -. . ~ .- undemandinggalnedfrom 18S8alCh., '. Under Govmnineilt Grams. Ccmtrads..' - . exceptiolillarenolprohiblted bf statute.. ~ -. directedtowardtheproducticm.o(USieful andQ)opetativ8.~ts!'- -... However.tiitheinterestof~um' materials. devices. ilYstemS. or methods. Suspension-means an act:iUn by HUD . tmifarm1ty.ux:eptions rroiD the :. - including &1ign and development of that tempor8rily .withdraWs lJUD ~ . - . requirements of this rule shall be ' prototypes and p~-The ~"'_ sponsorship 1D1.deranawud. pending' . permitted only in unusual-: ::. resean:b also includes activitieS: . .. corrective action'by the recipient or . :' circumstances. mID may apply. mote . involVing the trainingDf individuals in . : pending. decision to.t~i'qri,,~te the .~, - restrlctive ~ents to a class of . , research techniques wber8such. .. ,. award by HUD. SlispeDsfOa Of an 1r!I~' recipien~.when 'approYed by OMB., - . activities utilize 1he.sa:me facilities as . is-a separate aCtitm. from ~ - '. . HUDmayappl, lesirestrldiv8 '.' . other reseaJCh and-deYelopment . . under BUD I9RU1ations iinp1~ng :; ~8nts when ilw6rdmg smell- '. - activities and where sucb activities are - &0. 12549 and E.Q.12689, .DeOO~ent awards and wh~ approved by OMB'i_ . . not included in the ~ction function. and ~on." at 24 CFR. part 24,. . exceptfor thoSe requirements which 'are 47014 Feden1 .~dIir r Volt No. 176 I Thesday. September 13. 1~'( Rules and Regulations - StatJltarj Jbl:eptioDsOD.~ t 184.12 ""_~_FedIInI _Jitloaa1requhemeu.tsho.~Any' . ., .', ~ ....". . specialCODditicmssbaUbe~ basis may ako be made by 1fPD.. . (a) Ht.Jri daaD. complywith the iem.oved ODC8tbe conditions that _ 584.5 Subll~ appUaibreportdearuce' promptedthmD.baftbeenamected. unt sedioDs of this-part' requirements oU CFR piIrt 1320, 184.15 MIbfc~ of measuremeAt. ess _ "Controlling Paperwozk BurdeDs 011 the . specifically ~ ~pi~~ts from . Puhlic." with regard to all farms used by The Metric Conversion Act. as coverage. the prurislons Of this part BUD in place of or asa supplemeat to amended by the Omnibus Trade and shall be applied ~ ~ such .the StandudFmm 424 (SF-4.Z4) series. Competit:iven8ss Ad. {tS U.s.c. 2(5) perl'm:mins wort. er (b) AppUcau.ts sball use the SF-tZf. declares that the metric system. is the subrecipients anttnstitntions ofhlgher series or those bmsand iDstrud:ioDs pnCeJ::Ndaiauurement system for u.s. ed~,~tfnn. hosplt.als.commerda1 prescribed ~avn . trade and COD1JDm:ce. "I11e Ad. requires orgaaizations aDd fnlM"lult1nnlll . (c,) F_ prognuuco..-ed by each Federal "tJIDC1 to establim a date organi2ations operating dom~1)y.or E.o.1231Z. ~ Review. or dates in CODSUltation with the . other non-profit OIS"ni~tinntL State. ofFedezalPrograms." the applicant ~ofC...nnn~ when the mettic local and Federally ~i-d Indian shall compleie the appropliate.aioDS syStem ofmeasure.meut will be used in tn'bal govemnneat suhzecipieD.ta ~ of the SF-424 (App1icali0ll m Federal the egency". plOCUI8D1ents. grants. and subject. to the provisions ~fl88'JJ.f{nolt Assi$t.~) ~ti"8 ~the other busineSs-re1ate activities..Metric implementing the graJ:ltC management application was subject to nnew by the impJernMltAtfQQ may taka loDgeI: where common.nale. HA.dminidr:afive State SiDglePoint of Contact (SPOQ. the UIe of the system Is initially Requ.il'emeD1I- GJams and The name aDd address of the SPOC fDr . 'impractical or Jikely' to cause s.ignificau.t Copperative ~lil to State. Local a particular State can be obtained from ineflicieDCies in the .........'n'lplf.')""'ent of and Federally Recognized IDdian Tribel the Catalog ofFetkml Domestic. CederaJly-~ ~vities. mID shall . Governn......ts,... (Z4 a:'R put 85). Jlssist4DC& 'lbe SPOC sbaIl ad'l/1S8 the foUow the proVJ.SlODS olE-Q. 12770. . app1ic:ant whether the pmgnua fur "Metric Usage in Federal Govemment SUbpart 8--Pr8-Award- Requirements which applicatfou. is made Jaas been, Programs. .. - selected by that State lor .review. 584.10 Purpose. 584.16 ResourceConsetva1lonand . . 84.13 Debarment and ~ Drug- RecoveIy Act. Sectiaas 84:.11 through 84..17 S ~ ' rescr:ibe forms 8Dd instructions and Free Workplace. . . Under the Resource Conservation and p :vmd matters to be used in (a) Imp and its reapient$ ~ Recovery Af!. (RCRA) (Pub. L. 94-580. otherJ're-8 awards.' subtecipteDJs sbaJ1 comply Wlth the 42 U.s.c. 6962). any State agency or applymg for BUD nonprocurement debasmenland ,- of political subdivision of a · . rule' pl nling ageocy a 584.11 Pre-awerd poIcIe&. suspens10n common un eme State wliicb. is using appropriated . '. EO.s 12549 and 12689. ""Debann~ and Federal funds must comply with (a) Use of Gnuds and Cooperat:i1'e Suspension." at 24 CFR part 2f. This Sec:::t.ioIl6002. SectiOll6002 teqW.res that Agreements. and Contropts-In each cOmmon rule restri~ su~ and preference be given in proc:urement instance. BUD shall deade.on the. contracts with certain parties th$.t are to the pw:cbase of speCific appropriate award instrument (i.e.. debanecL suspm:aded or otherwise p= (X\nhin,"8 recycled materials . grant. cooperative agreement. or excluded from or ineligible for fciePtiRe<l1n guidelines developed by contract). '1.11e Federal Grant and participation in Federal assistance the Enviroomeo.tal Protection Agency Cooperative Agreemem Act (~1 U.8.c. programs or activities; . (EPA) (40 alt parts' 247 througb.2S4). 6301-(8) govems the use of gnnts. . (b) ~ and its reaplents ~d Accordingly. State and local institutions cooperative agreements and canbacts. A subreaptents shall comply with the olhigher educati~'hospitals. ' grant or oooperative agreement sball be certification requirem.ents of the Drug- commercial otgl"ni7>lfions and used only wbeu the priDci.pa1 purpose Free Workplace Act of 1988 J42 US,c. intemational mganizations when of a transadiOllis to accomplish a .: 701). as set forth at 24 CFR part 24. operating domestically. and non-profit public~ of ~pcxt or . subpart F~ organizations that rec::eiw direct Fed~ . stimulation authorized ~ ~ederal S84.t4 Special aWard conditions. awalds 01' other t:ederal funds shall gl"ve statute. The statutory atterion. for If Ucant or recipient: . preferenc:e in their procurement choosing between grants and ( w:.pp history of t"ormance: programs fwided with Fedenl funds to' coope~tive ~ents Is that for the ~) Is ~ fi11anaan:=b e: · the puicbase ofrecycl~ Pf?duds latter. substa:nual involvement is (e) Has a management system that pursuant to the EPAgw.aelines. expected het....eJ1 the executive agency . ," and~Sfab!l.!Oca1govt:a~or~ ~not~tba~presa1Oed 584.17 ~~~ recipIent when c:uryiDgoat tha ~~ty . (d) B~~ to the. terms U.o!esa proD1bited by Statute _ . . c:ontemplatediD. the agzeement.. " and ~f~ ofa prmousawud;or codi&ed r8ga1atIoa. HOD lsauthorimd. Con1racts sbaJl be 1J!l8d nOD the '. . '. (e) Is not otbenrisezesponsible. HOD _~ to aUOW' l8Cipienls to principal ~ IS ~nof" m&ylDipoSeedditiimal::=enta... submit~ahd . ". . property Ol'Cemces for the direct . needed. porided that appIiamt or ntpu.s 1I~~ nqUInd bf statute, benefit or use olthQ, Federal ~t fa'DOtffied m WIiting as 10: the exea1tinordsr. wregUlatioD OIl an Gov~enL' ; natureoftbeaddi~C:mal.nqufrements.. annualhasistlfthe~p1eatskaw, - . (b) PUblic-NDtit:tJ GIId.PJ:iQi:ity SeUiltg. 'the teaIiIIlwhythe ad~.1 cmgolDgaad CCI'ltfD1dDg tela~ps HUD shall:aodfy the publicofits ~ II1t beiDgialposed. ib.. '. with the epncJ'. Amlual certifications , . intended ~nd~p:icadii.for . Datmeoftbe~edi,.ec:tioo.needecl andl~puHtRtiODS~he&lgnedby discretiomry.pmt 140St--' unJes. the tbDa allowed forc:DDp~ the I8SpOIiSibIe oOUidal. with.the authority fundiBg pr-.iorit)e& are establi&hed by Wliedih'1IdioM, md.the:methocl~ ., to IIlsuretedpien1s" comPliance with Fedetal~-.. ..... . requestiDgeam.sideratiOlloftbe ',. tbe~t"'tuh~. , Federal Registft.. Vol. 59, No. '17& I Taesdar. Septeu;tbe..J. 1994-/ Rules and Begnt.<1tloJU 41 SubpartC Post.AwMd ~rements. Agreements oi'th 04IA defimlt organi%ationlor direct program or . . procedm:es codified. 31CF1t part %05. project costs and the proportionate F"maacW..ad h~......Ua......mt ..WithdrawalafCash from tfae Treasury share or any allowable indirect costs. f84..20 Pu~ offlnanclal and program tor Adva:Dc.esund.. Federal Grant and be (e) ~~~le,~~ . Other~ UIoUh" conso 0 cover management. . . (6) ~ ~a;S JOr cash needs rord awards macte by m Sectiou SUI through 84.28 deter:miDfDgthe lP.nUDabJeness, . to the ~ieDt. . prescribe standudsfor financialallocabiJilJ cd aHowabDiiyofQ)StsiD . (1) Advance. paym~.medsan:isms m~ement systems. metOOth m accordance with the p1o"iaious of the mclud.e, but are no! limited to, Treasu mJI1r;in:g paymeau aDd mles.b: edeniI. "!es d check and eIed:roDic ftmds baDsfer. satisfyiDgc:aSt tb~andmat.cbhlg dip!icable :~. ~~~ ~ (2) AdnDce p.J'ttWd:lI1~;sms a ~... ~ farprogralD e terms!=1 . s\1b;ectto 31 CFK~20S.. income, budget revision aFprovak.. . (1) ~,,;;:.=s~cost (3) Recipients s.iWlbeau.tho&:u-l to mJlltn~ audita,.dM.... 'H:..iltf.allowabllity ba:o~ submit Eeq11~mradv~aad of cost. and estaMimi. fund . y source re:imbw:seJ:Deo at least I1VW9ttUy whea ailabiJity . (e) Where tb& Federal GI................u.t electroDic fund tzansfcs ale Dot used. av. guarantees 01' iDsures thttrep8'J'Dlant of (d) Requests me TI:easury cbeck. f84.21 Standarcfs for trnanc:IaI money bonowed by the recipient. HUD, advanca payment shall be submitted OJ: managementqsCems.'. ati~mqrequire adequate $-27o."Req1lest b Advaa,ceor (a) HOD sbaIl require recipients to bonding and iasurmce fft&e bonding Reimbmsement.." or othes- forms as ma) relate financial data to performance data and insurance requirements oCrhtt be anthori.zed. by m.m. 'Ibis form. is no( and develop ~t cost information recipient ~ DOt deemed adequate to to be used when Tzeasmy check . whenever practicaL . protect th6- JDterest ofthft Federal advance paymemsare- made to the (b) Recipients' financiarmanagem~ Govemmeut.. . recipient automatically thJough. ihause systems shall provide for the.ronowmg: (d] BUD may nlC}Wl'8 adequate fidelity of a predetermined payment schedule 01 (1) Accunrte, cummt and complete bond coverage where the redpiellt lacks if precluded by special HUn disclosure ot the fiDanciaI results 9t. sufficient cov~ to protect the instrw:t.iaos for electrooic funds each federally:-spousored projecfCir Federal Govemmeat"s iD:ferest. transfer: program in accordance with the (e) Whm:e hoods are required in the (e) Reimbw:sement is the prel'erred reporting requirements set forth in situations desc:rlbed abcwe. the hoods method when the tequirements in S 84.52. If a recipient m:ltnfAin!l: its shall be obtained &om companies paragraph (blofthi& section cannot be records on other than an accrual basis. holding certificates of antl)ority 85 . met. HUD may also use this method OIl the re?pient shall not be ~ to acceptable~, 85 presa~ in ~1 any coostruct:ioa agr-n.,l1t. or if the establish an accrual accounting system. CFR part 223. Swety ~- Doing major portiOD oftha construction project These recipients may develop such Business with the United States.,tI is accomplished through private market accrual data for their reports. on the .22. Payment. . financing or Federalloens. and the basisofananalysisofthe 584 . ... Federa1R~i~~CODStilutesamiDor documentation on hand. (a) Payment methods shall mlntml7.e. ortion of the ro"eeL (2) Records that i~ent}Cy adequately the time elapsing ~ the transfer of P (1) When thE ~ method . the source and appUcation of funds for funds from the United States Treasury is used. HUD shall make payment federally.sponsored activities. 'I'bese and the issuance or redemption of within 80 days after receipt of the records shaI1 contain inf'ormation checks, warrants. or payment by other b~ unless the Dilling is !mP.~r. pertaining to Federal awards.. means by the redpients.. Payment . (2) ecipients shaD. be auth.onze(i to authorizations, obligations. unobligated methods.of State agencies or submit request for reimbw:sement at balances. assets. outlays. income and instrutJ1~~t~Iities shall be consistem least monthly when electran.le fu.ads interest. with Trea.sury.State a.fIA agreements transfers. are not used. (3) Effective COIItroI OYer' and or default procedures cqdi f"t.ed at at em (f) If a recipient cannot meet the accountability Cor aD lands. tf4vJ:A':dy part 205. criteria: Cor adwnce payments and HUO and other assets. Recipients shall (b) Recipie.a1s are to be paid in . has detemri.ned drat reimbursement is adequately safeguard an such assets and advance,. provided. they maintain or not feasible hecauss the recipIent lacks : assure they are used solely for demonstrate the Wl'lTingxle$S to sufficient woding capital. BUD may authorized purposes. maintain: . provide c8.sh on a working caplral ' (4) ComparisGn of oatLiys with budget (1) Writtezt psoc::edures that lIIini,"i~f11 advance basis. Under this proCedure.. amounts lor each awzm1. Whenever. the time e!apsinc betweea the transfer of HOD shall -advance cash to the recipient appropriate, fiDancia:! inf'ormatiOll funds and. disbursement by the . to cov~ its estimated disbursemem should be related to perIOtmanClt and reci= and . . . -. . _ . needs for an initial perlod ge.aeraIIy unit cost data. .. (~FittAnMltI lJUl~qt s.ystems . geared to tWt awudee.s df~,rd'~ (5) Written proceduresto""m~ that meet the ~f'or ~CODb:ol. cycle. Thereafler.HOO SIWI reimbmse the time elapSing &ehlee:n the trlmsfer of and accountability as estabIis&ed ill. theleCipieD.t for its ac:tual cish funds to the reapieist from'the- U,5.. S 84..21. <Ash. advant:e$ to a recipient disburs.r~ts. n. woriing ~ Trflasu:r and the ~ or organization s&aII1le limited to tDa adva.aca met&odo!payment sh&lI nCJl be redemptfo~ of chedst wammts or. . minimum. amounts needed and be timed used f'orpcip~~, UIlwi.Ilin& or UDalala payments fiT otftet .IIM<<IIS .for~am' to be in aa:otdanc:e wm. tlle actua!. ~ timelJ advazu:es to their p~bytlle'redp{mt. TatDlt~. lmmedratecashrequimnentsof'the . . . tomeetthas111n:ecip,.....t'.. that the pro'fisiom ofthC!sh ., recipient OIVnt7':llltioti In ~out . actUal cash disOw:Seuients. _ Management lmproveme.at Act (0dfA} the purpocaoCt!us apPtOvM pcosnml or . (g) To ibe extent available..reCfpl'r-ft (Pub. 1.. 101-453' pem. paymeur' project. Ttle tiDdq ad amount oC cash sbandistnuS& fUndS avaiIahIe from meth~ of $rate "'6~.. advances shall be IS cl.o;e- as is . repayments fGand inferest e.iu:ned 01t a ~ and fisodagaafl man sd.mfufstratfvely Cea:iMlJto the IIduaI te'VOlving tUnd.. plogrAm in~ be consbtCLlt with ~ ~e disbursements by the recipIent . rebates, refunds. rontract settlements. 47016 Federal Register I VoL SF "lo. 116 I Tuesday, September 13, 1994{"Rules and Regulations audit recoveries and. interest earned 01& accountssbaII be remitted annually to ,. "Are not paid by the Federal such funds before requesting additional Department of Health and Human Covemm~t undeunother award, cash ~~ts. . Services. Payment Management System. except ~~ authorized by Federal _ (h) Dless otherwise = by P.o. Box 6021,Rocbi11e. MD 20852. In statute tA.ba used for cost sharlng or statute, BUD shall not wi old keeping with Electronic Funds.Trans18r matdtii'ig=.... - . . payments for propercl:iarges made by rules (31 CFR part 206), interest should (6) ^"'.l{onded for in the approved recipients at any time during the project be remitted to the.HHS Payment bud~ w en required by HUD. period unless paragraphs (h)(t) or (h)(2) Management System through an (1 Confof!D. to other provisions of this ot this section ap~ electroDie medium such as the ~ IS applicable. - (I) A recipient failed to comply FEDWIRE Deposit system. Recipients (h) Unrecovered indirect costs may be with the project objectives, the terms which do not have this capahiUty included = of cost sharing or and conditions of the award, or Federal . should use a check.1nterest.amounts up . m.t~t"8 y with the prior approval re~~~ents. . toS2S0 pwyearmaybentained. by the of BUD. .... . 2) Thi reCipient or subredpient is recipient for Idmfnt~ft expease. (c) Values for recipient contributions delinquent In a debt to the United States State uni~ties and hoIpitaIa shall of ~ces and property sha!l be as defined In OMB arcuJar A-129, comply with CMIA. as It pertains to established in accordance Wlth the "ManJt~Federal Credit Programs." interest. If an entity subject to Q&A applicabtecost principles. If BUD Under conditions. BUD may, upon uses its owa funds to pay....ward authorizes recipients to donate reasonable notice, inform the reci~ient costs for discretionary awards without bui.l~gs or ~~. for co~ctionl that payme~ts shall not be made or prior written approval from the Fede.taI facilities acqUlSltion frojects or long- obligations incurred after a specified awarding agency it waives its right to term use, the value 0 the donated . date until the conditions are corrected recover the in~ underQdJA. prolierty for cost sharing or matching or the indebtedn~ to the Federal (m) Exc:e&:.1S noted elsewhere in this sha be the l~r of paragraphs (C}(l) or Government is Uqutdated. . rule, only following forms shaU be (e){2) of this ~on. - (1) Standards gOveming the.use of authorized for the recipients in (1) .The certified value of the banks and other institutions as esting advances and' remaining life ot the property recorded depositories of funds advanced under =bursements. Federa1agencies shall in th~ reciiient's accounting records ~t awards are as follows. require thail . . al d the time 0 donation. (1) Except for situations deScn"bed in not .. more an ongm an (2) The current fair madet value. paragraph (i){Z) of this section, BUD two COpies of these forms. However. when there is sufficient shall not require ~te depository (~) SF-2?O, Request for Advan~ or justification. BUD =pproYe the use accounts for funds provided to a Revnbunement BUD bas adopted the of the current fair Value of the recipient or establiSh any eligibility SF-270 as. '!811dard form for aU donated property, even if it exceeds the requirements for depositories for funds n:mnmur:: Cft.IDS wh~ certified Value at the time of donation to provided to a redpient. However, e red e. ed d er or thods thecOrojecL recipients must be able to account for p etemun a van~ me . are ?ot (Volunteer services furnished bI. the receipt, obligation and expenditure used. HUD has th~ option ot usmg ';his professional and technical personne . of funds. . form for construction programs in lieu consultants. and other skilled and (2) Advances of Federal funds shall be of the SF-271....OUtlay Report and unskilii1ci labor may be counted as cost deposited and maintained in insured Request fC?r Reunb~ent for sharing or match.ing itthe service is an accounts whenever ~ible. Constnldion Programs. integral and necessary part of an (j) Consistent witli the national goal of (2) SF-2n, qutloy Report and apCroved project or p~ Rates for expanding the opportunities for women- Request fo.r ReImbursement for vo unteer services shan consistent owned and minority-owned business Construction Programs.. mID has with those paid for similar work in the enterprises. :recipients shall be adopted the SF-211 as Jhe ~dard recipient's organization-In those encouraged to use wome:u--- owned and form to be used for requesting instances in which the required skills minority-owned banks (a bank which is reimbursement for construction are not found- in the recient owned at least 50 percent by women or p~ However, HOD may organization, rates shall consistent minority ~up members). . substitute the SF-270 ~ HUD with those paid for similar work in the (k) Recipients shall maintain determines that it proVIdes adequate labor mark8t in which the recipient advapces of Federal funds in interest information to meet Federal needs. coml:es for the kind of services ~ accounts, unless ~phs S 84.23 Costlhallng or metchlng. . invo ved. In either case. paid fringe (k)(t), (k)(2), or (k)(3) of . section ( ) All tributi fncI ding h benefits that are reasonable, allowable. ap~y.' _ d third co~. ~~ mall be cas and allocable may be included in the 1 The recipient tece1ves less than an _ p 111- ., valuation. :- $120.000 In Federal aWards ~r liear. acx:epted IS part of the reapient s cost (e) When en employer other than the (2) The best reasonablyaviiJa Ie sharing or matching when such . I9ciplent furnishes the services of an interest ~ aa:ount would not be CIO!l~"butions meet an of the (ollowing ~oyee. these aervlce. sball be valued expected to eam interest in excess of mteria. . at employee's regular rate of path. $250 ner~ on Federal cash balances. (1) Axe verifiable from the recipient's (plus an amount of:i3: benefits t (3) The depository would require an records. . _ . i, are reasonable. allowab e, and allocable. average "minimum balance so high (2) Axe not included as c:ontn"butions but exclusive of overhead costs) that it would not be feasible within the' for any other federally-assisted project provided theSe services are In the same expected Federal and non-Federal cash or program. _ . sJdll for which the employee is nonnally resources. . (3) Axe necessary and zeasonable for pa!d. . . - (I) For those entities where a&A and proper and efficient accomplishment of (f) Donated sUpplies may include its implementing regulations do not project or program obJectives. such itema as expendable equipment. apply, interest earned on Federal (4) Aze allowable under the applicable office supplies..18boratcz-/suPftlles or advances deposited in interest bearing cost principles. . wodshop and classroom'supp as. - . . . " Federal ~ VoL H."'No.' 176/ Tuesday. Septe~l3,. 1994 /'IWles and ~llaft<rGS . , - Value assessed;to'~ ISlJIPIi- recipient orgtt..: J~tioas to 8CCOUnt fOr Amencfm-t(s. (3S U.s.e. t8) apply iDcluded'fD tb8C011..,.,....IT ~";qg propam IDcemerelated fO'pro;;cu Inventiaasmade UDder an experi13 share shall he nuo:aabJe. aid.... DOt fiunced in whole or fD part wit& .. developmemal. or~""h award. exaedtheCair-.uheJueofdMt' FedelaJfimds.. " p~ at thetfJaeot..~ (b) Emtpt.. pmtridecI fa psrapapL flUS Alrii..... oI1MN1getMCf~ 1'be medlod 1IS8d _ &1~I...rD;ai;g (h) of'this ~ plO8o~ income pi-. cost sbariD& elI'matcbfJas for dCJIIated eamed during the project period shall (a) ~ IJudr:at l'~ iLl the Iis:Jmcj equipmenl.lJaiJdmga Ed Jaad far be retained by'the redpfatancUn 8Xpres:- =.r:=progru whichtitla,...totheJedpieDtmq accordananrit&HUD~cmsOl'the approY ,a process differ according to the ~ of die terms and amcBtlcmSoftbtt'award. shall ~luda ei~the F,deral-llBd award. if pamgraplas (t) ell' (gX2) of be used in ODe orJllOl'8 of the ways p, share. oronlytbe ':ederal sl tbissedfonapply. -, - . lfstediDthe!olJ~ _' dependiDg1lpGllRVDrequu~ (1) If the ~wpuSI&oflfle aWanffs to (1) Added tofaricfS~ to the sbiUbenllt<<l top8f~ln~ b- assist theJeCfpfcmt hi the ~ of project by BUDmd recipient and used ~ <<mfuatioil ~ wflem equi~~or, thetotal tofmthereligibleprojectorprogmm ~. ~ value of the -- property~1le oblmves. "'. . .. tol'epO claimed as cost Sharing OJ' wUttrIt~ 2) Used to finaDcebtnon-Federal deviatioas Ireat ~ aacI.Ih~""'" . (2) It the pwpose of the <<ward is to share of the ~ 01' p.ogtcu.4. "~ ~ ftlIll1IC'It ';:. apptO~.I<l support lId,ivftfes tbat~ dae usa of (3) Deduct8d from die tOtal proJect 01" aocoIdance ~~ revi:siOBS, i equipment. buildings or d.lHWmJlny prosram aJJowabtec:ost iD de~ With thiS~ only depredation or use c:h.ar8Bs Cor the Det alJowabIecosts OIl-wfdch the (~) ~orlJODCURStrudioo ~ equipmentaDdbuiJdillfr,CI may be made. Federal share of ~isba:sed. ~eatuhaD nqaest pnoraPtno,c "However. the run value of equipJDeDt or (c) WhIlD HUDMJthor;izes the- &om ~ loraae or.... oftbe other capital assets and fair nmfal disposi~ of r~au& income as followius progmm ell' bradget related charges far land mat: anow~ d~ '!1 peragraph5 (b)(1)ar (b)(2J ~ in tba scope or the provided that BUD appro1led flte of this sectioIt. ~ income hi. objectiva of the project Otpmgf.1lD (8'1 charges. . "e~ofanylimits~shallbe iftheJeis . eclbUdget ." (h) The value of dcmated property used m.a:ordauce IWd~..{1h .. 1M! ~:.. prowal~ shaUbedetermInediDaCr::0rdanc8with (b)(3)ofthissediea.. ' , ~PDOr' ap . the usual accountfngpoticies of the (d) In the8'rellt that BUD dOlis not In a!a ~by= specified reci~fent..withthefo11owiuC 'spedfy~~ord1eterms . (3)11i8e~~IDIX8~= qua fications. ' " . - aDd. the aWard how months, or a 25 pen:ent redaction in {t):ru valwrol ~ooated !aDd.and program ~ ~ to be usea.paragraph tima devoted to the psoiect.. by the buildings man not eJroeed its fair (b)(3) ofthiuec:tioo shaD apply . apprcwed project cliiectOr ..pat mmetvalwtatthetfmaofdooaficmto automaticallJtoaDprofed.sor~cuu$ investi tor: orpnDCl the recipient as esfablislledby an except nsean:h. Por awanIs ~ support (4) ~~ ror~1 PederaJ independent appraiser (e.g., certified reMU'Ch. paragraph. (b)(t) oIthls section funrn real property sppraisei or GcmeraI shall apply automatically tmIess BUD (S) e transfer of amounts ~ Services AdmfrrictPation up4:esentative} indicates hi the teDftS md conditions . for indirect co5b toabsGlb incnases.in and CI:Jl;I:i..&kI by.. res.pons1hleoflidal of anot.beuJtematifton theawllrd or the direct costs. oniceversa. if apptu-.;d is the recipient. . . , . recipientis~a}award ~ 1J.yHUD. .. . - (2) The nIue of donated equipment conditions. as . in f 84..14. 6) The nwolvsioo unless waned by shall not exceed.the &iF market valne of (e) Unless ~.recuJetions Of the. . HOD. of costs tbat~ prior equ~ent of the same age aDd . terms and COIiditious of the awml appIOval fa acalIdaD.C:ewith OWB con "on at thatfm8 of cfcmatioa. pruvide ~enriIe. ndpieDts shaD.lraft CU:cuJar A-21, '"Cost ~ b (3) TheYalue ofdoDa1ed spaceshalI DO ~atMn to the ~ Gogemment Institutiou oIl:JiPet' Eth~" OMB - not exceed the fair~ value of regarding ~ ~ eamed after Circular A-t22."CoslPDaciples b- comparable~_estabJiabed~ theeod ~= ~ . Ncm-Pro6lOrpabatioM,," _-GaR independen~of,CODl . Cnlf. by..JegUlaticms. part74Appendfx~for space and . in a privately.owned or the ~8Id ~ eftbe DetermiBiugOJlb. to, . building in the same~.'. award. cosLdDCidellt tothe genentica, ReS8uclumG~ under (4) T.1ia value olJoaned e<pl~ - ofprogt.w.~ may be ~cted Gtants ad CoBrrads witJi Ibpita!s... 0: shall not exceed.its flUr IeI1tal value. !rom gross ~me to detennine program 48 CFR,put 31. "'CoDtnd Cost f; (5)TberonOWlD.g~.- mc:ome,pl'OVldedfhesecos.tshavenol ' PrinCl~and~"as pertain to the reciSient... ~porting been ~ to tf&e.award. ., api:t~ . . records for in-kin ~ fmD_ (g) Proceeds !rom tbesale of ~pail)' . 711.'he tJ::aDst. of limds ~ fer third patties.. '- - . '.: . -' - ~ be hmdJed hi aa:onfanc:>>with t&e trainiD& .u--<m (dkeCt r= to . (i)V91iM&~serriQ!lS~be . - requirementsoftheP.r0l*~1Stlmdards trR~taodas-c t:r- ~. dOcumented and.. to ~ extent &adble. - (Sea 5S 8f.39 throagh ~}.. (8) UIlJesa desc.r:n iD.~ .. supportedbr.__~'1IS8dby (h)UDlesdIUD~tiomorthlr :-,' appti~ti_andflmdedmt&a.ppwed the ~ lorfUcnm ~ _ _ terms and coaditicm oft&e award - .-awardS. thasubaward,. tPlR". cr (ii) 1Iesis_&~,;1," tbe~ -.'. Provide~~sbalIhne. contracting out of'any wmk.UDdeI' an . valuatit1a fOrpaoual-1b.. ".;~ ..m..hd. _ DO obligadoIl to die eo,.............u.t award. 'I1lis provision doesJJDl'~J to equipment. ~~Jaud~ be with ~ to program ~eeam8d the pmchas8of.lnppUes. materi . dOCUDltlllted.. . -:": _ from~_~,royaItiestor fKP.Ji~or-gea:eral;A~servKeS- 5'" .', -. co=.~tentsti~ (Nootllerpnm-appiOval 84.24 ~~IIf'" -.~ .' ap , _ sad . ~=~eitemsmaybe (al HtmShaB applT die ~ _ inveDlifJnsplOduaid under aD: award. imposed unless a. . tion has been forth in this lIIedioD in I8lpliriDg Ho~. Patent and Trademad: approved by OMB. "l7018 Federal Register" VoL !>~. l'lo. t76 I Tuesday, September 13, 1994. .Rules and RegWauons . . f " . (e) Except.for requirements listed iT. (h) For construction.awards,.. . .. its of ~te and Local . ~p~(c)(I)and(e)(4)ofthis" I8CipientsabaUrequestpriar:written.. c.._.dDJD8I1tS.Hat2~44. . section, HqI) is au~~ at its approval promptly from HUD for budget (c) Hospitals _ by the audit oa~.~:::a waive cost-re1ated and revisions ~ parappu.(h)(I), provisions ofOMB Qrcular A-133, as ~ a " tive prior written aplrovals (h)(2) or (hJ(3) of this section aPJ1~ Codified in 24 Q"R part 44. . n:quired by ~ A~1.10 an OMB (t) ~ ~ results from ges (d) Cnmm~rcia1 mgtmf-mtfons Shall be Circulais'A-21 and ~-t220 Such in the SCOJ?8.ortbe objective of the subject to-the audit requirements of waivers mllY include authorizing project or E:f: . BUD or th:srime recipient u . . recipients to do anyon, pr more ot the (2) The ans. for additional incorporat into the award document. following. . Federal funds to complete the project. . AbowabIe (1) IncUr pre-awarcfcosts 90 calendar . (3) A 18'risi0ll is deSired whiCh . t 84.27 costs.. da,s prior to award or more than 90 . involves specific? ~ for which prior . For each kind ~f recipient. there is ~ ca endar days with the prior approval of written approval ~ may be set of Federal principles for determining HUn. All pre-award costs are incurred imposed contP~t ~plicable allowable costS. 'AIlowabiJity of costs at the I8Cipieot's risk (i.e.. BUD is Wlder . OMB cost ~les' in S 84.21. shall be ~edln ~ with no obligation to reimburse such coste it (1) No or approval the cost ~ples applicable to the lor any reason the recipient does not . requirements Cor =e items may be entity incwring the c:osU. Thus. receive an award or itthe award is less imposed unless a tion has been -allowabUireZ of costs 1ncur:red by State, than anticipated and inadequate to ap8:roved~. ~ or erally~ ~dian cover such costs). .') When makes an award that ~entlr is etermin in (2) Imliate a one-time extension of the provides support for both construction a With the p~ons of OMB expiration date of the award of up to 12 and nonconstrUdion work. BUD may Circular A-{J7. ..Cost ~les for State .months unless one or more of the require the recipient to request prior and Local Govemments." e lollowing conditions apply. For one- approval from HUD before making any allowability of ~ incurred by 0.00.- - time extensions. the recipient must fund or budget transfers between the profit ~tions is d~ed in notify HUD in writing with the two ro::i of work supported. accordance Wlth ..the prcn:ua~ns of OMB supporting reasons and revised (k) or both constrUction and Circular A-122, Cost Pnnaples for expil'ation date at least 10 days before nonconstruction awards, BUD shall Non-Profit Organizations." The the expil'ation date specified in the ~ recipients to notify HUD in . ~o~mty of costs incurred by awa.rcL This one-time extension may not writing pro=:::;JUmlI'the amount institut?ons of higher education is be uercised merely for the purpose of of Federal . funds is expected dete~ In accordance with the.. usin\robligated balances; to exceed the needs of the recipient for proVlSlons ofOMB Circular A-21, Cost (1) e terms and conditions of award the project period by more than $5000 Principles for BducationallDstitutions." prohibit the extension. or five percent of the Federal award. . The alIowablUty of costs Incurred by (il) The extension requires additional whichever is greater. Tb1a notification hospitals Is determined in accordance Federal funds. . shall not be = If an application with the provisions of Appendix E of 45 (iii) The extension involves any for additional ding is subinitted lor CFR part 74, "Principles for change in the approved objectives or a continuation award. Determining Costs AppUcable to scope of the project. 0) When requesting approval for Research and Development Under (3) Carry forWard unobligated budget revisions. recipients shall use Grants and Contracts with Hospitals." balances to :ent funding periods. the budget!onnJ that W8I9 used in the The allowablUty of costs incurred by (4) For awards t:so teSearch, application unless HUn indicates a commercial organizations and those unless HOD provides . in letter Of~est suffices. non-profit organizations listed in ~'s regulations, the prior approval". (m) Wi 30 calendar days from the Attachment C to Circular A-I22 is requuements described in paragraph (e) date of zece1pt of the request for budget d~termined In accordaDce with the o.f this secUon are automatically waived revisions, HUD shall review the request provisions of the Federal Acqu1sition (I.e., recipients ~ not obtain such and notify the recipient whether the Regulation (FAR) at 48 Q"R part 31. prior approvals) uDless one of the budget revlslona have baeD. approved. If conditions included in paragraph (e)(2) the revision Is still under consideration 584.28 PerIod 01 availability of funds. of this secUcm appUes.. at the end of 30 calendar days, BUD Where a funding period is specified, (f) HOD may, at its option, restrict the shall inform the recipient in writing ol a recipient may charge to the grant only transfer of funds among direct cost the date when the reci ient expect allowable costs resulting from ' categories or prognuns. functions and the decision. ,P may obUgations incurred during the funding activities for aW'lU'ds in which the. period and any pre-award costs Federal share of the project exceeds f 84.26 Nor....~ audits. authorized by BUD. . $100,000 and the cumulative amount of (a) P.ecipients and subrecipients that Property Standards ' such transfers exceeds or is ~ to ale institutions of higher education or . , " '..; exceed 10 percent of the total dget as other mm-s::fit Ol'fP'nlqtlClDS shall be 584.30 Purpose of ~ ~ . last approved by BUD. HUIhhall not subject to audit ~ts. Sectious 84.31 through 84.37 set forth permit a transfer that would cause any contained in OMB arcuJar A-I33, uniform standards governing -.,.: . teederal appropriation or part thereof to "Audita oflnstitntiODS 'ofHigher fu:elit and dispoSition of pi-operty used for purposes ot.~er than those Education and Other NOn-Profit . ad by the Fed9ral Government consist~t with the original intent of the Jnstitutl~".as c:odi.fied in 24 CFR part whose cost was c1wged ~ ap/droxnnation. 45. . . . ' . ~ by. Fed.eiala HOD otherchan=, (b}Stateandlocalgovemmentsshall : recipients to observe these' nonconstructiou bu , =t for the be subject to the audit requirements stan under awards and shan not . changes described in paragrap (j) or contained In the Single Audit Ad (31 impose additional ~erlts, unless this section, do not require prior U.s.e. 7501-1) and HUn regulations specifically required y Federal statute. approval implementing ~MB Cra118r A-128. . The ~pient may use its own property . f" I , . '. Fedetal bgistel., l. S9. :No. 116./. Tuesday,' Septemi>er.~ .I. Rules. and ..Regulalio~ : 4701! management standanls and Prc:x:edW'eS (3) The recipient may b4t ~ed to:, f~eral-fundsand, shall nQt encumber provided it obServes the provisions of.. transfer title to the property,\O the the equipment wi~out appr:oval of" : 5584.31 tbrough84.31.' Fe.deral~entor'lo:anelig1"ble ;. HUD. Whe'Dthe~pmentisnolonger .' _' . . . third party proVIded ~r. in such~' : need~ for.the O?~ project ,or - 5 84.31. .~raace coverage. ; . the recipient shall be"8l1tf~ to. . " .' progmn, the reaplent shall use the . ~plen!S ~ at a ~um, compensation for its att:r:iDutable, _ equipment in connection )rith.lts other_ proVide the eqwvalent msurance percentage of th8cUrrent fair market . 'federally-sponsored activities, in the cov~ef~realwl:d~a:: ~funds 'valueoftheproperty. " followingorderofpriorit}i: . eqwpment acq W1 Fe" . . . (t) Activities sponsored by,HUD as ~~vided to property C?wned by the 584.33 ~ *,!d exempt' which funded the original project: then reaplent. Federally-owned = propec1y- .: . (2J ACtivities sponsored bY other need not ~ ~ ~ .... by (a) Federa1ly-owned property. (~) Title Federal &warding agencies. '. '. the terms and conditions of the award. to federal1ili-owned property temamS - (d) DUriiig the time that equipment is . : .. vested in e Fedenil Government.. used . 584.32 Real property. Red ients shall submit annually an . - ~ the project or~ for - HUD prescribes the following. inV~tory listing offederally-owned whi~ It was a~ the reapient . requirements for recipients concernmg property in their custod to BUD. Upon sba!l make it ~le for use on other the 1:158 and disposition ofrea1 property completion of the :::r orwhen.the = r:t~~S::m:ter u: acqUired in whole orin part WIder property is no longer needed, the.. . P 'ect - ti wWci. th on ~ aw8rds: ' recipient shall report the property to roJ. or p~ or .e. (a) TItle to real property shall vest in mID for further BUD utilization. equtpm~t was onglnaUy.acquired. FirS: the recipient subject to the condition (2) If HUn has no further need Cor the p!8ferenC8 for ~ other use shall bP. that the recipient shall use the real property, it shall be declared exceSs and 81ven tc:ed~~ ~~~mtb property for the authorized purpose of reported to the General Services ~. e the project as long as it is needed and Administration, unless HtJD has - ~wpment; :oecond preference shall be shall not encumber the property without statutory authority to dispose of the ~ve~to"~:r: ~~ s~nso:r ap/broval of BUD.. . property by alternative methods (e.g., . y 0 e! e. 81 &genaes. ) The recipient shall obtain written the authority provided by the Federal the eqwpment 1$ owned by ~e f~eml approval by HUn for the use of real Technology Transfer Act (t5 U.5.c. Government, use on other actiVities not property in other fed~ly-spon.sor:d 3710 (I)) to donate research equipment ." ~iibe=b1ec:rera1~:bent projects when the reaplent detemunes to educational and non-profit - a e au 0 y that the property is no lo~ needed for organizations in accordance with B.O. mID. User charges shall be treated as !he purpose.ofthe origin~ pr:oject. Use 12821. "Improving Mathematics and p~ incom"':, . m other projects shall be ~ted to Science Education in Support of the (e) When a~ replacement those under federally-sponsored National Education GoaJs.") equ~pment. the reapient may use ~e projects (i.e.. awards) or programs that Appropriate instructions shall be issued eqwpD:1ent !O be replaced as trade-m or have purposes consistent with those to the recipient by BUD.. . sell the eqmpment and use the proc::ee<h authorized tor:rt by mID. (h) Exempt property. When statutory to o!fset the ~ of the replacement (e) When the PI?perty is no authority exists. BUD haS the option to eqwpmen~ ~b~ to the approval of longer needed as proVIded m vest title to property acquired with. HUD. paiagraphs (a) and (b) of this section, Federal funds in the recipient without (1) The re<;ipient'$ property .the recipient shall request disPosition further obligation to the Federal man~geme~t standards for equipment instructions from mID or its successor Government and under conditions HUD acquired Wlth Federal ~ds and Federal awarding agency. BUD shall considers appropriate. Such"property is federally-owned equipment shall observe one or more of the following "exempt property." Should mID not' include all of the following. disposition ~dions. . . establish conditions, title to exempt (~) ~pment records shalll?e. (1) The reaplent may be penmtted to property upon acquisition shall vest in mamtained aa;uratelY and shall mclud. retain title without further obligation to the recipient without further obligation: the following information. the Federal Government after it to the Federal GOvernment.. (i) A descriptiOlt oftha equipment. co:tes the Federal Govemment (Ii) Manu!actu:rer's aerial number, for pet'C8I1tageofthecummtfair S8U4 Equipment. ,'modehiumber.Federalstocknumber. market value of the property attributable (a) Title to ~ment acquired by a national stock number. or other to the Federal participation in the recipient with F eraI funds shall vest identifi~on number. project. . - .' . in the recipient. subject to conditions of (ill) Source of the equipment, (2) Tbe l'ecipient maybe directed to this section. ." inclu~g the award number. . sell the p~ under guidelines (h) The recipient shall not use _ ' (iv) Whether title vests In the. provided bj HUD and pay the Federal equipment acquired with Federal.funds recipient or the Feder8l Government. Government for that ~ of the to provide services to non-Federal. . . (v) Acquisition date (or date received. current fi1ir ~ mue of the property outside organizations far a fee that is if the equipment was fnmished by the attributable to the Federal participation less than prime coinpinles cbarge.:ror Federal Govemment) and cost. - in the project (after deducting actUal equ1,uent serrices.1mless specifically (vi) Informatioa from which one can and re&SOt.tab1e 18~ and fix-up' aUthorized by Federal Statute. fer as calculate 'the percentage of Federal expenses, If any, from the sales. '. long as the Federal Govemment ~ participation In the cost of the proceeds). ~the-J8dp.ientis ' an interest in the8cP.tiP-menl. ".,..; - equipment(not~pplicab1eto~pinen autho~ or required ~ sell the ; - . . - . (c) The recipient man ~ the " - - , fumish~ by the Federat Government). property, pIOJ1 sales prOcedures shall equipment-in the project or program. for (vil1 LoCation end condition of the be establish' ~ pmVide for . - which it Was ~ as loi1g as equipment and the date ~e inf(:;nnation competition to the extent pfacticable needed. whether or not the project or '. was reported. and resuh In the highest possible return. program continues to l:!e supported by - . (viii) Unit acquisition cost. 47020 Fdera1:B~dP-r J Vol. ..59,. ..0. va J TueSdaY.. September U 1~..,,1 -ales ma ~"I""""~ - ~. ... f - fJX)'Uhimata disposition data. . , . (t)lbo insIraded or if ~ticill ..-0 them.. bul sbalUn ~ case, mcludingdateof~ aad sales instrudbaSare DOtissuecl wilhiit uo . .....dl(tensate.tbe Fedaa1~8Dl_ price or the method Usecl to~;Nl QIAndlll'dajrsaftertbeJeCip1enl'. its share. Theamountofc:ompensatiou. cu.rre~ fair market nbm when.a , ' request; the "pim rhall.:D.1ba shall be cximpallld fa dI&... o-n~ -:-- .recf,piezit ~ BUD tor its equipmeDiaDdaimbu.rs8BUD aD as for eqaipmeat.. , sl1ar& ... . . . _.' amouDt~lJy.applyiDgtothe (b)!MftldpieBt~IUX'" . . (2) Equipment owned bf~ Federal sales prtX>>eclS the pen:~'~ ofFedsra1' supplies acquired witbFederal funda to .Covemmea1 shaD beiden~ to participation in tbecost Githa original prOvide ~IO ~ Gatside indi.cata Federal ()..~i'p. projector~HoII..l.I...tbe otgltn~ Alr_..~ Sa Jess tb.aD (3) ^ physical ~, olequipment recipient be permitted to dedDct privata~ciIIap -=~ shall be tal1ell cmd the results recoDQ1ed aDd mt:IIiD tftlm tbe Fedenl sbare.$500 serviats. unIaa ~Rnany.. zed with the equipmeDl ~ 'tit leest.ODOe or tea ~of" pmceed:s. by Feden1 statute. as loog as tbeFedera1 evesy bnt,..,... ~ whicb.ewlr is _lor thel'8Cipient', . Government retaiDs an interest in the betwee. D~ . bydse. se~"'lwo""U.~ supplies. physical iMpeotioD md thesI slutv'" U'1 (Z) fftha NCipiellt is to theaocoaftting JeoonIs...be ship dJeequipaealekewbtn. the f84.36 ~~ .' inve&tiRated tOdetemliDedlea.usesof recipieota.nbeftli8lb~ by the (4) 11ae J.eClpieGt IDllY copyright &111 thedif.feNn:ce. ibe redp&eat sbalJ. in Federal c-M....~atby..1iICJOGDt wolk tbat SasMbjectto copyright lAd connectiOll wi1hdsein~. ftrir, which isClODlptlfadby applyins the was developed, or forwhicb. ~ip theex.i&teBce.cumlal utilizatiGa.8Dd percentaaeol the recipimt'. .was puv~. under an aw.m. BUD conti1av.ecl need _ dM~ p~iOQ ia tbt ClOSt ollhe original reserwtS &lOyaltJ-liee.llODe:a:.lusive . (4) A c::aatrol SJSlIa sbdlle fa.&d project or P'osn- to the cumDt fak<l!'d in'evocabIe right to ruplOduoe. . to insumadequmeQ~....Js.b .-".-4 market value411theequ.ipmeot..pluuo)' publis&.orotherwiseuse the work tor Ioss...t~ ortllee aftbe~ reasonableslaippingor.iD!erim ~ Fed_ ~~ md lOeatbori.ze Any Ioss.c:lamage. orthltA olequipnent cOsts idaured. others to do so. . shall be ilnestigated aDd taHr (aJ If tb8 NCipiaDt is .ias:tntded to (h) Recipients are subject to d(- .....,."'"':ed: ifaha~ was oth8l'Wisa.di~ oftheequIpmeat. the appUc::eble l8p~ ~JAleaIs owned by tbeFederaI GOv_.........4. the recipintsball be _.~ by lWD and i.uYeIltioDs. ;mdadi~ gownuaeat- recipieDt sIaaU pca.:pdy aatify mm. for aaclaC05ta iDaI.lacl ia. its. wide JllI8'.tm- issaed bY the (5) Adec:tu* mainb:ouaaal ~~ disposition. . DepadmeatoCo---oe at 37 CFR pert sha~lbe~~' ....wI to~u. . . (4,tHVDma IUlmttherightfD 401.. ....RJabtstoiayeotioDSw.deby equIpment m good ~DditioL . ,transfar tl:a.e ~ aothe Federal. NODp:oIitOrrni~~ end Small (6) ~ tIae 1'eQ~ ~autbarized Gov~ or to.. tbi.ni party named _ Business FIlmS Und8l'eo.emmeal .or requiled tD seD the eqwpmeat. ..' by the Federal eov.....m...t whea AoCh Grants. OootAlCt$ and Coopentive p:tU; alae pru>>dmes sbaJl be tJW:d parl;JisGt.b8nriA aUaibJe UDder ~ts.'" est ~M Which pnmda for . existin statutes.Sada trusf8ub.1I be (c) UuJes waiveclhy HUD.. the competi11on to thea:tant pnrdicable subi8.lto the ~ st.lIoda1ds. Federal CowerameDtbu the rigbt 10 and msult fA the ~ ~DIe ftIbmL f1) The eqlIipmeD1 sJWl be paragraphs (cXtJ and (cJ(2) of this (g) When ~ reapleD.t no ~ approprildelJ ,cJ~ in theawardoc section. needs the eqw:pmeat. the. ~oa.t otberwiat madebaown to tbe nlCipieDt (1) 0btaiD. ~ publish 01' may.be wed for Dtber actiritles In in wri .' ' . othanrise use the data 6a;t produced accordance with the ~ {iiJ~AaDissae dis:p<mtion under_~ . standards. .For aquipmenl with a amsnt in.stnu:tli1os wi!hin 120 ~J~p days (2) Authorize otheis to receive. per unit Wr ~ nlueof.$5000 or afterJ:ealipt of. hallnieniary. 'Ihe reprodace. publish..,. otherwise use mos:. the .reapieolmay mam. the .. final inventoty duJ11ist aD 'p.meat such data for Federal pu...~ eqwpmeJlt for~ uses prova~et! that acqWred wi11l piallsDds ~ rAdamn,- (d) r.d:1e to Intaqgihle property aDd compensation lSaadeto HOD or its. owned ..-lprnePt.1fBDD IaiJa to iss::De debt iosI:IurDen.ts.aclqUired UDder an 5'"~ 1'heamo.nt of~satioIn disposition fnmv~nns withintbe 120 award orsubawmd V'8StI upon . shaD be. "d:;r:t~ ~~ the . calendar day period. the recipic:nt shall a~tiGo.Jn the I8dpieDt. The ~the:F~ftz::;r:orl Ul apply lh:e standatds ofthissedioD. lIS ~~~ pcoped)'.=-:: program to thecuneol ~ JDIIbt vahle ap~HVD u:erdses itsrisht to recipiealshan DOt~t&e . of the eqnlp""",,! If the ~~t !&as no tab.title. tM~t sa.Dbe subject property without approVal ofmm. need for lbe ~ the ~imtt to the provisions fodederaUy-owoed When. DO JaagerueOOed..the . shall request di~hOD 1nslrudioDs equipmeut. originally ....~~ purpose.' . fromHUD. BUD shaD deteauIne . dispocitioQ _the fntaas'ble pIOperty wIt.etAer the .crn1pmeqt em be used to S IUS 'SappIIM and D'G1er upendatA6 sha1J. occur" ~ with 1M - meetmm'nequbement&.lIna.. propeItJ. . . provisimIsofSM.3:lfs)...... '. reqtdremeatexistswithinllUD.tke . (a)11tJetosuppUesandotber , ;.' . . '. ,:.....; aVJlilAbilityof~~r;:! shalt be ~pt~shaU ...iDthe 18Uf.,;.;..~~~ AsNp. . == 18 .. Serric8s reapiea.t UPQlui::q1usiUoa. IItbere i.e.. Real pmpeIty, Gquipmeut.lD1angnlIe btratioa"b,mm to dete:rmlne msidual1:b.m4ua;, ofllDlUechuppBes pmpertJ'aDd cfeht instmmeDb that are whether.a nqninmtGl for the. '8XCeediDg$5000iD totar_.~tIt n1ue acqu!red or~lrfIh Federal ' ~.aida1a~1!IerFedera1.' upootermln~_colDP.~of"" fun~...lhallbt~lIilit&slb1.tbe .. ageD4:ieL aDD &haD ksu91nstrudioos . project or~_ tbIi# am rec::;.imil_1ruit8e for.tbe beDefidaries. to the ~~ 1ilet~ 120. obtueew_~.~..'. of be ~or~_1IIld.."hk:h calendar .,. after1he rec1p1at"s spoDSOnld ~pr~ tba' the pIOpIItJ..'~ ~J.mprond. request and ~ follGwiDg~ recipieal.u ~ t1ie:suppliesb-. . HUDJDa7~ ~ talllcold shan govern.. .'. ' useoa:Don~sporisOtedadfvitles nens orotheiappritpriab,riotieesof ~ , .. - " Federal Register- I.VoL S9, No. 116.1 ~esday, Septembe.. t994 1 Rules' and Regulations:. .4: - "record'to indicate that personal or real recipi~ts may. set standards-for . pl'OCW'8d.ln:competitive ProCUremE property has been acquired or imPl1Jved . situations in whid1 the financial interest such"a desaiption shall not contain with Federal funds and that use and .~ not substantial or the gift is an features which unduly restrict disposition conditions apply to the unsolicited item of n~ value. The comr=tion. . property. _ "". ' standards of conduct sh81l provide for (ii Requirements which the biddE Procurem t Standards disciplliwyactions to beapt;ed for. offeror must fuliill and all other- fact en violations of such st8.ndards officers, to be used in evaluating bids or 584.40 Purposeotprocurement employees, or agents o(the recipienL Plt!~,.'.. '. ". standards. (Ill) A descnption, whenever Sections 84.4.1 through 84.48 set forth 584.43 CompetiUon.. practicable. of technical requirement standards for:::Z recipients in All procurement transacti~ shall be terms of functions to be performed 01 establisbing P Utes forthe conducted in a manner to pnmde, to performance reqUired, includiDg the procurement of supplies and other the maximum extent practical, ~ and range of acceptable characteristics or expendables:, equipment;real free competi~on..The rec!p~ent II be minimum acx:eetable standards. property an 0 er serviCes with Federal alert to orgamzational coIiflicts of. . (iv) The specific features of "brand funds. These standards are furnished to interest as ~U as Doncompetitive name' or equal" desaiptions that ensure that such materials and servioes practices among contractors that may bidders are required to meet when su , are obtained in an effective manner and . restrict or eliminAte competition or items are included in the solicitation. in compliance with the provisions of otherwise restrain trade: In order to (v) The acceptance, to the extent applicable Federal statutes and ~ ~jective co!1tractor ~onnance practicable and econ!>mi~y ~ble executive ordeES. No additional and eliminate unfair competitive of products and servtoes dimensumec , procurement standards or requirements advantage, contractors that develop or the metric system ofmeasuremenL Shall be imposed by BUD upon draft specifications, requirements, (vi) Preference, to the extent recipients, unless specifically required statements of work. invitations Cor bids practicable and econ~micaUy feasible, by Federal statute or executive order or and/or requests {or proposals shall be for products and servtoes that couserv approved by OMB. excluded from competing for such natural resources and protect the . procurements. Awards shan be made to environment and are en~emcient. S 84.41 RecIpIent resporisiblliUes. the bidder or offeror whose bid or offer (h) Positive efforts shall made by The staitdards contained in this is responsive to the solicitation and is recipients to utilize small businesses., section do not relieve the recipient of most advantageous to the recipient. minority-owned firms, and WOmen'$ the contractual responsibilities arising price, quality and other tactors business enterprises, whenever possibl under its contraCt(s). The recipient is considered. The other factors shall Recipients of Federal awards shall take the responsible authority, without include the bidder's or offeror's all of the following steps to further this recourse to HUD, regarding the compliance with Section 3 of the goaL' . settlement and satisfaction of all Housing and Urban Development Act of (1) Ensure that small businesses, contractual and administrative issues 1968 (12 U.5.c. 1701u)' hereafter minority-owned. firms, and women.s arising out of procurements entered into referred to as ..Section 3.- .Section 3 business enterprises.are used to the in support of an award or other provides that. to the greatest extent. . fullest extei:Jracticable. , agreemenL This includes disputes, Ceasible and consistent with eXisting (2) Make.. ormation on forthcoming claims, protests of aWaM, source Federal: State. and loca1laws. and opportunities available and arrange tim . evaluation or other matters of a regulations. economic opportw1ities &ames for purchases and contracts to contractual nature. Matters concerning generated by"certain HUn financial encourage and facilitate participation b: violation of statute are to be referred to assistance shall be directed to low- and small businesses. minority-owned firms such Federal, State or local authority as very loW-income persons. SOlicitations and wqmen's business enterprises. may have proper jurisdiction. shall clearly set forth all requirements (3) Consider in the ~tract process S 84 42 Codes of conduct. that the bidder or offeror shall fulfill in whether ~ dmpe~or ~th . rd !i t'h b' d 6 t be val t d contracts mten to su tract WI The recipient shall maintain written 0, er or . ~ 1 or 0 8r 0 ! ua e small businesses. minori -owned firmc standards of conduct governing the by the l'eClp1enl: Any and all. b~~ or and women's business en~rises.. performance ofits employees engaged off~ mar be rejected when It 15 10 the (4) EDcourage contracting With in the award and administration of reaplent s interest to do so, . rti {small busin ' .. " conso umso esses. contracts. No employee, officer, or agent 184M Procurement procedcns.. . . minority-owned firms and women's . shall ~~ In the sel~on, award. (a) All recipients shall establish. business enterprises when 8 contract is or a4minfstration of a conu:a.ct "written procurement procedures. These too large for one of these firms to hand1 supported by Federal fundS If a real or procedures sIuill provide tor; at a individually. . '. ". apparent conflict of interest would be minimm:n, that paragraphs (aKt) (&)(2) " (5) Use ttie setvices and 8,$$istance. a involved. Such a conflict '!Ould arise, and (aK3) of this secti~ . . appropriate, of such organizations as tl: when the empl~ offio:r, or~t. .. (t) Recipien~ avoid . g.. ,Suiall Business Ad11l;niJt:rati~ ~d the any.m~ofhisnr~unmediate unnecessaryit~c"', ....'. Department.ofCommerce'sMinoaty family, his or her partner, or. an (2) Where appropriate, an analysis is Business Development Agency in the organization which empl~ or is about made of lease an~ alternatives soUdtation and utilization of small " to employ any of the parties indicated to determinewhi would be the most . businesSes. minority-owned firms and herein, has a fi"-,,cial or other interest economical and practical procurement WODlen'S ~ ent~ ' in the firm selected for an award..- The fotthe FederalGovemmenL ": . (el the tYPe of procunng inst:n1.ment~ offi.cars. empl~ and a~nts of.the (3) Solicitations far goods and, : ". . :.. used (~ .fixed price contracts. cost . l'eClpienrsball neither solicit nor accept services~rovide for all of the following. reimbursable Contracts. purchase ~~ gratuities, favors, or anything of (ilA ear and accurate des;cripti~n. of and incentive contracts) shall be . monetary'value from contractors. or the technical requirements for the, determined by the recipient but shall b parties to subagreemcnts. However, material. product or service to be, ~ . ..appropriate for the particular." . :' 7022 Federal Bsgistm' I VoL "'.'.""! No. 176 I Thesday. September 13, 199 Rnles ana ~UUi>> {/' ;: p~8Ddfor~..tb8~ detennine.~ alJoaftifity f 'RItely p........d.1f sueD. . interest aCibe p:rosrmt....pn:+a aDd eDawabiIity. 0... ..-mftlllitiao1ft _DOtbeeD.made," Involved. "I'JIa~p1us-e~ . minimum .u;lO(~cr.w8Dts sha11 be as of -cost" or "percentage ot colllttuUiua S 84.. PIDcwwD80t roc:ords. follows: . - cost'"' melhodsd~sba!l not . Pmcummaat records aDd lUes Ior (1) A bid guarantee &om each bidder be csed. _ purchases&. GC8SS of the small equivalent to five percent of the bid (d) Contracts shaH be made ani)' with purdwe tIueshold dMll iDcludeihe price. Tbe "bid gtWantoo" shall consist ~nsible contractors who possess the followiDg at~ minimum: of a firm c::om.rrdtmeBt such AI ~ bid potential ability to per!orm suooessfully (a) Basis for contractor selection; bond. certified check. or other undertbe 1ermS:aDd ~ditin:r\s of the (blJ~fication for 1ac:kof negotiable instrument aaxm~ying a proposed ~Dt.. Cons:idenD:m competitioD when competitiw bids or bid as as'::nm- that the bid shall. shall be siftJl to _ch matters '85 offers aren1Jt obtaiDed: aDd upon ac:ceptaD.ceol his bid. UBCUte contmdr:lr integrity; a:::mpJiaDC8 with (d Basis for award cost Ot price. such coa.tiac:tual docwrie.nts IS may be pub~licy~ todpmng. when. Cuired within the time speci!ied. app. Sectioll3oftheHousingad. S8U7eontractadm1n~n... . 2JAperfQPnJl1lCebondOl1th.epartof . Urban Dnelopmtllll Act-of 1~ (1% A iL:em.for contract admlnl$tration the contractor W 100 percent of the U.s.c. 1701u); f8IOO1d.of past, shall JJWn~ to ensure Q)n~ contmct price. A "perfonnaDce hood" is perfCll1mlllC8; fjeA'ftclahmd technical conformallClt ';"1th the terms. conditions one 8X.eC'Jted in CODnection wi.tb . resouroes<<acoessibilitytoother and speci.fk:ationsoft!'eCOllbactandto contmcttD secwe ruJf1)JmADtofall the necrs!;1!lI1'J leSOU1'OeS. In certaiIl enswe adequate ~ timelJ~ up of contractor's obligations undMsuc:b. c::iI.omltsbmce~ts~ with certain all pmcbases. RecipleolS evalual8 contract. parties en restricted by implem:entation contractDr' pedormanca and document. (3J A payment bond on the ~ of the of~O.s 12549 and 12689, "'Debarment as appropriate. wbethu C?~actors contractor for 100 pecc;eat of and 'Suspeftsion." 111 24 CFR part '%4. have. met ~ terms. coDditiOll$ and contract price. ^ ""payment bond" is ooe (et ReCipients shaD. OIl reqttest. mak~ specifications of the contract. executed in COPnedion with a contract . available for the Federal awamins s 84.48 Cmtract p"hisions. to assure payment as .required by statute agency, prHlwanheriew.and 'The -. enl shall. cl d . orall persons supplymg labor and docomen ch reaps In u e. lR t . I. th ~ oftbe rk proauemerrt ts, su as dditi 1 . . t d Ii d roa ena 1ft e on wo requests for proposals 01' invitations for a on 0 pI'OVlSlons 0 e ne a so~ provided for in the contract. bids. i1ldependent oost estimates. etc.. and ~pl~te agreement. the folloWlng (4) Where bonds are required in the when 8.!l.1 of the following conditiOns pro~ons m a!I.CODtracts. Tbe situations described herein. the boods a73,. follo~g provwoos shall also be shall be oht~nAd from companies 1 A recipient's proc::u:mneot aPfalied to ~ntracts.. holding certificates ot authority as procedures or operation fails to comply a) ContractslD excess of the. small acceptable sureties pursuant-to 31 crR with the procurement staBdSJUs in purchase thresh~l~ shall conta~~ part 2Z3. .'S1I1'6Ily Contpenies Doing HUD's impleme'lltation of Circular It- contractual proVlS~~s or ?,ndltions Business with the United States. .. 110. that allow for administ.rati~e, . (d) AU negotiated Q)Dtracts (except (2) The procurement is expected to ?,ntractu~1. or l~l remedies In . those for less than the small purchase exceed $1'00,000 or the small purcbage Instances In which a contractor Vlolates threshold) awarded by recipients sball threshold fixed at 41 U.s.c. 403 (11), or b~ches the con~ te~. and include a prorisioll to the effect that the whichever is greeter. and is to be proVlde for su~remedial actions as recipient. HIlD. the Comptroller ~eral ' awarded without competition <<only may ~ appropruw:- of the United States. or any of their duly one bid or offer is teeeived in response (b) An contmcts 10 excess of .the small authorized representatives. shall have to a solicitation. . p~ ~old shall co~~ access to any boob. documents. papers (3) The procurement. which is swtabl! 1?rov~ons for tmIUllation by and records of the CClbb:aCtor' which are expected to exceed the small purchase the.recpl~L ~cludin8 the manner by directly pertinent to a specific program threshold. specifies e "brand name" which ~rmination $ball be e~ed and for the purpose of making audits. prodttCt. the basis for settlemenL In addition. examinations excerpts and (4) The pI'Op098d award over the such contracts shall desaibe conditions transcri~o~ small purehase threshold is to be und~r which the contract mal be (e) contracts. including small awarded to other than the apparent low temunated for default as we as pun:.lulses awarded by recipients and bidder-under a sealed bid ~ conditions where the amtrad may be their tonttaaOl'S sbaU oontain the (S) A proposed contract inodifteation terminated because of ~Ifl)stances - procurement pt'O'risions of Appendix ^ c::baageS the soope 'Of a contract or ~ond. the control of the CDntractor. to this role. as applicable. - increases the contract amount by more c) Except as otherwise requited by than the amount of the small purchase statule. an ~ that l8quUes the Reports and R.ec:ords thteshold. . contractit?g tor ~xw;acung) for 184.50 Purpose of reports and ncofds. construction or tacility unprovements Secti 1brough forth 584.45 Cost8ACI flIf:CeaAalysla. shall provide tor the recipient to follow ODS 84.51 ~.53 set Some Conn of cost or priaJ enalysis its own requirements telatiog to bid the,~ for"'!1~nng and. shall be m.de eod doownented in the ~ peri'oanance bonds. ad reporting on the reaptent s financsal proc:urement .files in amnecUon with paymeo.t..boack unless the constzuction and program perfomimce and tbe every p~ actioa. Price<<nalysis coD.trac:t Ol'suhcootmct.xeeeds necess:axy standard l'eportfng roz:ms. ~J be ~...~.t\d in varioas ways. $100.000. For those contracts or Th~ also set ~ record ~ention lRcl~ tbe'CDa!p8rison of price subcontracts IlYnllMi~ .$100.000. HUD reqall'emen~" ~otatiuu:i S1bmitled.. marbt prices and ma,. <<X:8pt the bond.iDg policy end f84.5t . IIonIarttllg 8ftd nlpCIItMg pc'Ogt8r'a similar i:a.dicia. together With ~w:lts. requinmseaU of the recipient. provided performance. '. Cost ~;rsis is the nrview and : _ -' BUD has made. detenuination that the (a) R.ecipiellts ace ~~"ble COt' evaluation oteecb element of cost to Federal Govrenunent's intenst is managing and monitoring each project. . . ..- -- - .oL 59;- No. 116 I Tuesday. Sep~ 1994 I Rnles - and ReguJatlons - 4 . Federal ReP , T program. subaward. fuw'tinn oractivity autbormiIorobtaiuiDg 5nJtndllJ. - (iv)-ReCipfentsshaIJ be reqUired t supported by the award. Recipients. inf'r-a~OQ &om ncipieots. . . submit not moretban the wiginala. sbaJl monitor subawaJds to ensure (t)SF-269 orSF-269A. FiNl~al two~the SF-Z1215 c3lend suhrecipients have met the audit, Status Report. . '. . days . .theend of ~ quar h=qUfrements as delineated In S 84.26. (0 BUD JeqWnlS ncfpients to use the BUD rJilrfrequtre It JDOnthly report J (b) HOD shall prescribe the frequency SF-269 or SF-269A to 1'8pOIt the statui those recipients recelYing advaD.ces with which the pedmmance repOrts of faads f9r allllOllCODStruction projects totaling $1 million or InO!'l!t per year. shall be submitted. Except u-provided or ~ HUD has the option of not (v) HUD may waive the-requireme . in 5 84.51(f). performance reports shall recpdriDg theSF-269 ">I'-Sl4694 when . for submission o~ the SF-272 for an} not be required-men ~y than - tha~o, Request for AdY811C8 or . one of_ fo=reasons: ~ or less frequ y than Reimbursement, or SF-272,Report of - (A) When yadvances do no annuaUy. Annual reports shall be due F~ Cash T~~is exceed $25,000 perrecip~t. proYid. '90 c:a1endardaysafter thegnmtyear. ,w-NIt! to pIOYide 8dequats that such advances 81'8'm.onitored quarterly or-sernHJmual reports shaiI be f.,...tioo to meet itsneeda.: through other forms.contained in this da aft thereportfngperiod. thataliDalSF-269orSF-269A lbe . section' ~ 30 ~ ~ llDDual before ~..4at the ampietioo or the project (B) Ii In IRJD's opinion, the the annm:!dI~es of= year _.the SF-270 is used oaly Cor recipient's accounting controls are awanlsm lieu of these requiremeo1s: ad~ . adequateto minimize ~iV8 Feder . the &nal perfOrmaD.at repods 818 due (iQ HUD shall prescnbe whether the advances; or ' 90 Caleadar days after the expiration or l8pOItshall be OIl a. cash or acc:rua1 (C) When the electronic payment . . of the ard. basis. If BUD requires accrual mechanisms provide a~uate data. termination ' . aw final technical intorma1ioD and the J:eCipient's (b) When BUD needs ditional . (e) If=:~ria.te" ~an not be aCQJUl1UngleCOnk aie not DOnnally information or more frequst reports. = after ~tion of the project. ~ept on the accrual basis. the recipient the following shall be observed. -. .' shall not be required to convert its. (1) When additional information is (d) ~:';e<tu~ ~~ce h accounting system, but shan develop needed to comply with legislative ' reports- . .gtm.e r m, . or eac such acCmal inIonnatiim through best requirements.HUD shall issue ' award.. b~eC inCo~ation on eech of the estimates based on an analysis of the instmdions to ~ mcipients to roIl(u~l1g. . of actual documentation on hand. submit ~ information under the t c:ompanson . (iii) fWD sbaIl detenDine the. "Remarb" sectiOll of the reports. ~pllfdt_n~ with the goals ~d . frequency oftha F"1D&Dclal Status Report (Z) When HOD detemdneS that a ob~ves establisboc!- for the penOd,. the for each project.or program. considering redpient.s accounting system does not findiDgs of Ibe in~tor. or both. the size and complexity of the particular meet the standards in S M.21. additiona. Wbeaevera~e and the o~tput of projector pmgnm. Howewr, the report pertinent informatlOll to further monitor p~ or projects ~ ~ readily shan DOt be iequired IDOI'efrequently awards may be obtained upon written .quantified. such quantitative data than quarterly Clr less :-tly than notice to the recipient until such ti.ma should ~ related t? cost data fOf: =. A final report be' . as the system fa brought up to standard. InInprtation ofumt ~.. . at the oompletion of the mJD. in ~ this information. (2) Reasons why estH>. hAd goals ~ -. shall comply with report clearance wera DOt met. if appropnate. (iv) BUD requires mcipieuts to submit ,uirements of 5 CFR part t320- . (3) ~ pertiIlent ~OD. th~ SF-269 or SF-269~ (an original and 3) HUD will shade out any line item mcluding. when appropriata. analYSIS no mCJre than lWDcopteS) no later than on any report ifnot n~. and explanation of cost OVerrtlD$ Of: high 30 days after the end of each specified (4) HUD may accept the identical unit ~ . reponing period for quart~ and semi- informatiOll from the recipients in (8) R8cipieots shall ~ ~ required to amnJIllepOl1s. md 90 caleDdar days fOr machine readable foimat or comp~er AlbmltJDGre than the ongmal and two annual and final reports. Exten.slons or printouts or electronic outputs in lieu of I~ ,copies~~reports. reportingduedatesmqbellptJ~u~by presaifJedformats. ' '. (t) ltedpi.eDt&sball im1'ftAdbtely IlOtify HUD~ ~ the recipient. (5) BUD may provide computer or BUD of developments that have a (Z) ofFedeiill Cash electronic outputs to iecipients when sigJ1f~t Impact on the award- . Trsm~ ,...,~, such expedites or contributes to-the suppmted aCtivjties. Also;notificatioQ. -, (i) ~ fuDUue ad'"!1ced to - aa:umcy oft'epOrtmg. sh8lll>>e given in the case of problems. recipltlDU BtJDshall reqwre eecb ' . ' delays, or adverse conditions which recipient to submit the SF-212 and. .IUJ fte!lllltion lIIdaccea materially impair the ability to meet the when nec~~ry. its coi1Cinuation sheet. requIreInenta lor ftIClIIfd&. objectives oCthe award. This' SF-%I2a. HUD shall use this, mport to (a) This sectioo-sefs forth notifk:ation shaIIlm:lude a statemeBt of' lrinnitwcMludYanced toredpieotsad requiremeots torreconl retention and . the actioD tabu orcontempLsted. and to oblahuUsbmsemeot lnfonutioo fOr aa:ea tcU'ecords forawards to any ~ll1It&needed to resolve th" each~t with the ~ ' redpleot.L BUD sbaJl not iiDp068 any IituaUoe. .' . . (H) may.mquire &:nc.ads of other: I8CDI'd retention or aetess (g) HtJD may mab site visits. as Fedenlcah requimmeats br. the ~ l1pOn mdpients. Ileeded. -, "~Adionoftbe= )F"mancial~ - Cb) Htm shall c:mnply wifb clearance (Hi) When pradical and Ad dOQllJlents. statistical . ..' all reqtWJ L.ntn)U Q1R put 132llwhen' necessuy, HUDDIJ mquinneQpieuls ~ncords pertinent to an a~ . .requ~~Pt&dat.a from to repartia.d1e~b" SIBdioa tblJ shaD be Jebiuud for'a period of three 'recip.r.-~_, . , amountofc::atdlldftncesr~..w8Dd yeanfromthedate-oflnbmiSdonor~ ; . rtibiDecl m8XD!JSS of tbJee days. final expeI1ditare repOrt or, for awanis 18.4.52 '.FlMncfal~ ReCfpields dWlpt<h4du sbmt narrative . that 81'8 ftlIlswed qumedy orannually. . (a) The followiDg forms at aw.h othet explanations of Ild:iuBs taken In reduce · from the date ofthesubmissioil of the forms as:may be approved byOMB are thfl'8XC8SS. balances. :.: quarterly or animal fiaandal-report-. as.--' ' . - , ' :47.024, 'Federal- Register,I;, ..,.59;.No. 116 '/. Thesday, SePtember.l~r'" dQ4':..f- Rules...a"iId Regulations. . --- . - "aU!b.orized by JIUD..1he only - ..., - which a partiadar group of_COiStS is - fM.62' E'ftfon:emenL ' ' : exce/Jti~ ~the f~ .... chargeable (such u c:omput~~. (a) Bell1lidies for noncOmpliance.. II a . Jl . nanz:.:.c1aiDi;-or audit,1S chazgebackrates ~ c::om~te friDge : . mcipient mSteriallJ; fails to comply Wtth - . . started be expiration of the 3- benefit rates). . , , , ' th t ' ~ .ti f aM ~tbe.recOrdsshallbe ,,, (t)IfsubmittedforiJegoticilion.Iftl1e e ermsan con onso maw , ~ lmtll all-liti~ claimS or recipient submits to BUD or the . whethc:r stated in a F~ sta~te, d.it fiJ:Klings'b1 IVing th records sub' 'ant submits to th9 recip'enftlie ~tion, assurance, application,. or au YO eo: . reap! 1. noti!.:8 ofaward;BUDmay,in addition . . - have beeru8SC?1ved. and final action: proposal. p~ orother.~pUtation to - 'to imposing any of the special- . tab:tn. . form the basis for negotiation of the rate, , diti tlined' S 84 14 tal: (2) ~ (oneal propmt)' 8nd . then the 3~year retention period. for its con ons o~ ~'.' e one =-= lI':CqUired with Federal !uilds supporting records starts on the' date of ormors ~f~e tollo':flD8 actions. as be :retained tor 3 years after final such submission.' appropnate m the Cll'QJro'ltanc:es. . ~oa . - _ _.' (2) If not submitted for negotiation. If. ,(1) Temporarily withhold cash . (3) When recorda are transferred to or the recipient is not required to submit ~yments pending conection of the maintainedby'BUD, the 3-year .. . to HtJD or the subrecipieu.t is not eficlency by the recipient or more retention nquirement f.s not applicable nquired to submit to the recipient the.. severe enforcement action by,HUD. to the recipient. - - . ,proposal, Plan. or other computation C01" . (2) Disallow (that is. deny both use of . (4) IndiNct cost iateproposals. cost. negotiation purposes. then ~ 3-~ _ funds and any applicable matching . allocation 'plans, Gte. as specified. in - .retention period~ the ~ p~ ciedit fot) an or part of the cnst or ~e S 84.53(g}., '. or other-compUtation and its supporting activity or action not in compliance.- (c) Copies 'of original records may be records starts at the end of the fUcal ' substituted Cor the original records if year (or other accounting period) . (3). Who::r or partly ~nd or . . authorized 2',.fF' - covered by the proposal. plan, or other tenmnate e cunent aw . (d) BUD request transfer of computation. (4) Withhold further awards for UIe certain records to its custody from . . project or program. recipients when it determines that the Termmation and Eutorcement (5) Take th ed' th t be '. 0 errem les a may records possess long term reten~on 584.60 Purpose of temlfnation and legally available. value.. However. in order to aVOid . enforcement. (b) H' d peal In takin d Iicat - recordk . BUD eanngs an ap s. g an up e,' eepmg,.. may Sections 84.61 and 84.62 set forth enforcement acti~ BUD shall provide make ~ents for-l'8Clple~ts to uniform suspension. termination and the recipient an oppOd:uD.ity {or hearing. retain any:records that are continuously enforcement procedures. peal th dministrati . needed for joint use. . ap . ~ 0 er- a. . .v,,! _ (e) HOD. the Inspector General 584.61 TennInatJon. p~ to which the reaplent is. Comptroller General of the United., (a) Awuds maybe terminated in entif!ed under any ~tu~e or regulation States. or any of their duly authorized whole or in part only if paragraphs applicable to the action 1l1volved. representatives, have the r:fght of tim~ly , (a)(t), (a)(2) or (a)(3)-oC this section . ' (el Effects of suspension and _ and umestricted access tSBnY books. aprlrJ' - ' . termination. c.osts of a ~pient documents, papers, or other ~rdS of 1 By HUD; if a recipienrmaterially' resulting.fromoll@_~ by . ~ients that are pertineut t? the ", fails to comply with the terms and : ~ the redp~t ~uring .~on or aWards, in order to mab audits, .', conditionsoranawa.-d. -' -. . -. aftertermmation of an award are not . IlYAndnAtiOns, excerpts, ti8nscripts and (2) By HUD with ili-e consent of the aJJowable unless HUD expressly copies of such documents. This right'. recipient. in which case the two parties authorizes them in the notice of , also includes timely.and reasonable shaJJ agree upon the termination . suspension or termination or access to a recipient's personnel for the conditions.-includiDg the effecti~ c:late subsequently. Other recipient costs purpose-of iriterview and 1fj~imon and, in the case of partial termination, during suspension or after tennination related to such documents. The rights of the rErtion to be fArmin~ted. which are necessary and not rea~~bly 8CC8$S in this ~ph (e) are not' (3 By the JeCipient upon sending to avoidable are aUo\iiabWirparagrapbs limited to the requJJ:ed Jetention Period, - BUD written notification Setting Corth (e)(t) and (c)(2) of this section apply. ' bUt ~ last as long as ~ are the ~ for such termination. the . (t) The costs result fiom. obligations retained. . .: eff~ve.date, and. ~ the case oCpartial which were properly IDcwred by the (fJ Unless req~ hJ statute, ~ . t~tion. ~ portion to be ~pient before the efrective. date of shall ~ place.restrictions on reap1eJlts t~ted. However., if~. ~on or termination, are rlC)tin that J!mit p~Jie ICalSSto th8'~ _of ~ in the case of~ .' . antic!~on ott~"and Ih the,case ora reciplents that are pertinent to-an :, - . - termination that theredneed -or . -':', temWiatloiJ.. ale noncancellable. - : award. except when BUD can. .' modified portion "Ofthe-gnmt Will not . '- . - ' 'demoamate.that such teeords abaJIbe . accomplish the pmposes for which the. - (2) .~e ~ wp~d be allowable if - .kept c:ou1ideGdaI,8Jld wauld-haVe ~, grant was made. il-mq ~18 the. . the a~ard ~ n~ suspended or - .- ~from~pwSwmttO-..:- 'grantinitsentil'8tJnndereither' . ~. .: expiied.nmmallyatth8end.ofthe- - the Freedom.cillnf<<mation Act {:; -' ~phs (aXi) Vr (a)(2)-ofddt secticni funding ~od ~ which the t~ti9D . - U.s.e. 552)-lf the records'bad-belonged: '.' (b If costJ are al1owechmd~ an - _', ~ _effecL- '#. .'. - ..;.' . to-BUD., .' . - ", -: " award. the I'e$pC.'np"bi1ities of the (d) Relationship to debannent and (g) lnd.ited cost rate proposals, to6t - recipientrefened to in 584.71{a), _. $U$pension. The enfon:emenhemed1es allocotioa pltmS, tile Pa:ntgraC: (g)(t.). iaduding those - = identifi,ed.cin th1$ section. including . and (g)(2) oftbfs I8dlon app ,to the . management ~ app . shan be _' suspension and terminaI1~ do not fol1cn.Jing.tJpel of doc:umeritsi and their ~deied in the t_hUltton Qf the. . preClude. iecipient from being subject ; , A1pputiDg~ cost rate - award, and provisionaball be made for to d~t and suspension 'UDder' - . computatioDs orproposalst cost continuing.respcmsibilities of the E.O.s t2549 and 12689 and HUD'. . . allooatiorrplaDs. anc .,. sim.iJar recipient after termination. as - - implementing regulations at 24 aR part accounting ~ons of the rat~ at appropriate. 24!see S 84.13). '.' . . . FederalR~ I" ~ :;9, No. _176 I, TUesday.,Septe:mbet J.:'. Jtt.t-f Rules-,and ReguJalions' 4702S , SubpartD-AfteNhe-Award, (5) ReconisretentialusrequUedin ,therecipie.atwillreali.z8 no~ent 1tequirements, 584.53. ',_ abovallCtuM~. '_:: : '_ - _'j , . (b}AJtercloseou.tohnawmd.a. _- (bll~.nedl, '-,' ' S 84.70 'Purpose.. " relationship created tmderan award ' :- - - - , ' SeCtiOnStM.1i.thfough~~3.contain maybemodifiedorended~~or f~ Dd.U~loa,. .,,': '_ closeout,procedtireSand other. in part with the CODSe4t'ofHUD and the (a) A ~.1W11 award 1$ an,a,.,ani !or prOc:edureS fatsUbsequen~', _ recipient. provideclthe nspoDSl"bllities' a ~fIrII\m,-' ~t. ~ ~ fortb Ul _ disallowances and adjustments. of the recipient refenoed to in S84.73(a) , the,-ant~ wJi!<:h amount doa . . ' . . r-. · not W'II'f with the amOUDt of the . f 84.Jt' ao.outpnx:eclillf8L inclndiDg1hose ~ ~ ' - recipieDt'. actual iDcmred costs. Under (alRed'. ts sba1l-SuDmit, withiD.90 ~ a:d ;~;~ for ~ 9J?8 .ofawartL f:IDD does not pay calendar d:; abr the clabof contiuuIDg respoDSI"bllities of the the reapieD.t'" its iDaured costs but compledaa oftbeaward..n ~.., recipient. as ap............;..t.. ratherfOrd:lmplet\Ds ~ tWi~ performance. and etber reports as, r.-r.- events In the wnd::,. acbinemeat of requind bythetermsandCoaditioDsof, S&Ul CoaeeUooo(~due. someothen..ll-defiDedmflestoUe. the awa.rc1. BUD mayappl"O\"8 . , (a) Any funds paid to a recipient in Some of Ihe ways. in wbidl the grant- exteasioos when requested by the excess of the amount to which the ~ may be paid ,lint, llut are not ' .. t. .. is finall d . ed '- limited to: ret':l. pteIl ___.t.._ . reapleDt y etanntn to IICf (1) In _~ "':.04:.1 nonrrnan";' ..'--_ (b) Unless HUD tlV.WUllZ8S all entitled under-tbetelms and cenditioos ~ t-........ &-.I-:-,WIS extenAoa. a recipiem sbaIlliquidata.n oEtheawud ccostitutea debt to the amount of ~ ~ upon In ;&d~ obligations ~ under the award Fedenl Cavemmeot.1C not. paid within and the '"milestone ,~~ ~ggermg. , not later than 90 caIeDdar da~ aftfK the, a reasonable period after the- demaad fot the paymant also ~ upon. Ul , funding period or the date of " payment,. BUD IDa)' reduce the debt by adv.uce. and !el ~ HI. the ~ ' completion as specified in the-Iemls and paragraphs (a)(t), (a)(2) or (a)(3) of this ~t ~~~(:'buis.h Icjt a defin~ , conditions of the award. or in HUD secti um ot".......... as a ousm8 - instractfi:ms:. (t)o. an .dministrative offset ~ling uDiO..at a defined_Trice or (el mm shall male prompt payments .'nst other uesU for pnces. agreed to m advance 0 . to a redpient for aHowablereimbursable agaJ imbursem~ ' perimnance of the grant and set forth 111 - ..2._ th __...J S-:.,,'" _1_...1 re . the ~t; or: ' . - costs unum: e aWlUU ....LUlj ~ out. . (Z)W'llbhoIding advance payments (3) In '. tat' 1 (d)TherecipientsbaU~ptJy, ~duetotharecipienL' completiC::paymen. , gran refund any ~ of~~ted cash (3) Taking other,aclion permitted by (bJ The byc:iisunction between a ~ HUD ~ advanced or j.>ftid and that statute. _ ,lump sum and a cost. reimbwsemenl IS ~~ authorized to be ~.bythe lb) Except as otherwise provided by grant is the lack of a dhect relationship n;:apumt for use in otherprojectS. OMB law, HUD sbaIl chaIge interest on an between the costs inwrred by the Ci.rcuJar ~29~eldeU:~~hfs. overdue debt in accordance with 4 CfR recipient and the amount paid by mID {:~en authOli:d bythe_tenns and ~=:Federal Claims Collection' in the lump sum arraogemenL - . conditions of the-award. BUD shall S 84.82 ProvIsions apptlc;abIe ontv'to lump make a settlement for any upward or Subpart E-Ua of Lamp Sua Gcaats sum gnm.. _ ' downward adjustments totha Federal fsuO CoadIUoos for use of Lump Sum In addition to-the provisions of this sb~ of com after closeout reports ~ '(fixed price Of tIxad amovnQ pn1iS. subpart Eo subparts.A and B of this part recelved. . ; .. . . -, app!y to lump suz.n grants. . (Q The recipient shalI aa:oun.t tOr my (8) Head5 of a~ activi1i~ (a) Financial and progr.anl _ - - real and personal property ac::quited ~) shall detennine and publish ~e management. Paragtaphs (b) through (el witJiFederai funds or received frmri the ,funding ~~ ~ llward 'of this section presaihe standards for . Federal Govemmentin accordance with progr'll";!l m,vmg!1 pubJish~!r financial ~t'systems., methods 5384.31 through 84.37. ~. ~"~ofFun ":' formaking~budgetrerision (g) In: the eYeDt a final audit has not. ~~ty. For. otJ:. ~w~. - approvals, and maJd~ audirs.- been perfiwmM pri.orto the cIoseouI of . d.i.saetioalpay he.plOVlded to Grant.. . lb) Stlmdords JorJiliancioJ' _aWard. mm shaJIretain. fheriBfat to Offian todAtArm~n~ the ~ ~ent systems:. ' rec:ovU an appropriate amount after anangemeot DO a tJ'an~on basis. In (t) Records that identify ~e1.1 fully IYmsidering tharecOmmendations such cases..CJaDt ~ ~ . . , the soarat-and epplicatiOll oflimck fix' on disallowed costs resulting Uom the docu:men~ tha basafOr selec:tiQQ.~~, - federa}l~.amues ant ,.. final audit.. . , - ~ ammgemeutin the ru:tgOt12tlQD.. ~ 1hese records shall contain . . , ' ' recOrd: Appmpriaia rnn!litfM'UiCJCl, to intor:rDatioa. ~ to Feder8l f84.7Z Salta qltlnt.....MntsMd ,fixed amomit (hImpsumlll.\~arduh~n - -awards; a1d:horbati0DS"obIigatiOns. contIauJag 1'MpOnSibII..... . - ' . be ~ if ODe or men oCqsa ~ unobUgated balam:es. assets. outISJS. (a)1be doseont man award does not c:onditiouU8_present: " income 811d1Dtetest. . '. affactauyoftbefallowing. - '. , (l)'IbaUODfi,ntfingam01JDl& ,(2)Effec::tfveCODtrolOrerSnd_:,. , (t)The right of~mJ'Vto diSaI1~ costa, definitely less than ihe totalactual cost _ aa:owt~abmtifor an 6mds. pl'O'perty - and~...a.6mdSOIltheba:sisora later ,oftheproject.,,;;..;. -'.'- :: audotherassetsare~Redplentt .auditorodtermiew. ' ,'..' ,(2)TheBUOfimdingamomitdoesnot ,shalladequately~aJisudi. (2) '111e obJiga:tfou olthe-redpieut to . exceecf SiOo.ooo or tJM. su,mU I?~~ . ,asaetsad.assaie~ mt.-aSed-SoIeIy.. retUm-ayluDdsdneull'msult.oflater. thresh9ld1b:ed'at-4t:~.c.403 (11):': . . for-tnthorimdpm~ .:' _.. ; '., : ' rehmds.-COtl-.tions.orothsr", '.' whi~-fs.greater. ._' -'-.;, ..,'." ,(3JQJm~tsao:Ghu~wifhbadget transactions. "-. -: , ,-" (3):t'he~a:opeis:very~~' amOuma.foi.ei.ch.award_Is~' . (3)AudIlrequimneatsmfat.28.' . _ and~cost~orun:it,.; ;When~appropri.8t~finltniiltJ:.. ., (f)Property;1aanagement, ,'..' pric:fn&datak~to~-a' in!ormatiQa.shanId.be:re!alecfta.,; , requirement$ in sS 84.31" through 84.37., fixed amoUnt award with ~ th4tperfonnanp,and un:it coSt data. ,,~,'_ 470Z6 _ Federal,Register J VoL. No.,-176 I :Tuesday, September 13, 19l:J .L\.UU:;'" 'cu..a~ ..&"~6""'---- , (4) Where mID guarantees' or itiSt' financial expression otthe project or- the revision MSults from changes the repayment ot money borrowed t. program as approved during the award . Je scope or the obJective of the . the recipient. BUD, at.its disaetion, process. It may include either the ' 'project or p~ . . may'~ adequate bonding and Federal and non-Federal-.Jwe. or ooIy (ii) The n arises for additional_ - '. insuI'anOJ if the 60nding and inSurance the Federal share, dependiDg= mID Federal funds to complete the project. , ~ments of~e recipient are not requirements. It shall be rela to (7~ No other prior approval ' deemed adequate to protect the interest perComiance for program evaluation reqwrements for specific items may be of the Federal Govermnent., purposes whenever appropriate. imposed unless a deviation has been (5) HUn may requUe adequate fidelity (2) Recipients are required to report ap~roved. by OMB. - bond coverage where the recipient lacks deviations' from p~ plans. a>>d ' 8) When BUD makes an award that sufficient coverage to_protect the ' request prior approvals lor budget and ' 'provides support for both constnlction Federal Govemment's intel8St. '. program plan revisions, in accordan08 and nonconstruction work. mID may (6) Where bonds are iequired in the with this section. . require the reciplent to request prior , situations descn'bed above. the .bon~ ,(3) For nonconstmction awards, approval &om mID betore making any , shall. be o~ed from com~es recipients shall request prior approvals fund Of' bu~ transfets between the holding certifi~tes of authonf}' as from HUn for one or more oftbe two types 0 work su~e4. acceptable sureties. as prescri~ in ~1 following program or budget related' (e) Non-Federal au 'f$. (1) Recipients CFR part 223, ..Surety Compames Damg reasons.' and subrecipients that are institutions of Business with the United States." n Chan . th scope or th higher education or other non-profit (e) Payment. (t) The standard .1. ge m e e organizations shall be subject to the governing the use ofbanks and other ?bjective of the p~ject or program Je.ven audit requirements contained in OMB institutions as depositories of funds If th~l! is n~ assoc:-ated budget reVlSlon Circular A-133. "Audits of Institutions . adv8!lced under awards is, HUn shall req~tnng pnor wnt~en .approyaJ). of Higher Education and Other Non- not require separate depository accounts (u). The need for additional Federal Profit Institutions," as codified in 24 for funds provided to a recipient or Cundtng. CPR part 44_ establish any elilP.bility requirements for (Ui) Unless desaibed in the (2) State and local governments shall depositories for funds provided. to a application and funded ~ the approved be subject to the audit requirements recipient. However, recipients must be awards. the subaward, transf'er or contained in the Single Audit Act (31 able to account for the receipt, contracting out of any work under an U.5.c. 7S01-1) and BUD regulations obJi~ation and expenditure of funds. award. This provision does not apply to implementing OMS Circular A-128. (2 Consistent with the national goal, the purchase of supplies. material, "Audits of State and Local of expanding the *:rportunities for equipment or general support services. Govemments," at 24 CFR ~ 45. women-owned an minority-owned (4) No other prior approval - (3) Hospitals are cove by the audit business enterprises. recipients shall be requirements for specific items may be provisions ofO),m Circular A"'133, as encouraged to use women-owned and imposed unless a deviation has been codified in 24 aR. part 44. minority-owned banks (a bank which is approved by OMB.' (4) Commercial organizations shall be owned at least 50 percent by women or (5) Except for requirements listed in subject to the audit requirements of minority group members). paragraphs (d)(3)(i) and (d)(3)(ii) of this HUD or the prime recipient as (3) EXcept as not~ elsewhere in this section. HUD is authorized. at its" ,incorporated into the award document. part, only the folloWJng forms shall be option, to waive cOst-related and ' , authorized for the recipients in administrative prior written aplrovals S 84.83 ~ standalds. requesting payments. BUD shan not required by Circular A-no an OMB (a) Purpose of property standards. require more than an original and two Circulars A-Zt and A-122. Such, Paragraphs $b) through (g) of this ~on coRies at these forms. waivers may include authorizing set forth umform st:md~ govenung 1) SF-27D, Request for Advance or recipients to do anyone or more of the management and disposllion of property Reimbursement. HUn has adopted the following. ' . furnished. by the Federal Gove~ent SF-270 as a ~dard form for all (i) Initiate a one-time extension of the . whose cost was charged ~o ;a,ro1ect nonco~on programs when expiration date of the award of up to 12 supported. by a t:ec!eral aw BUD electrome pmds transfer or months unless one or more of the shall :dsU1l8 reCIpIents to observe these predetermtned advance methods ~ not following conditions 8pply~ For one- ~and ll!1der aw~ and shan not used. The SF"Z70 shall also be used for time extensions. the recipient must UUIX?S8 additio~ requuements. unless lump sum payment ~uests. !RID.. ' notify HOD in writing with the, speafi~ly required by Federal statute. however, has the ~gtion of usm, fh!s supporting reasons and revised' The reapient may use its o~erty form for co~on programs m lieu expiration date at least 10 days before mlml!~ement standards and p.. ures. of the SF-271. Outlay Report and the expiration date specified in the 'proV1 ed it observes the pro~ons of ~fs:~~entfor , ,award. Thisactionmay~~unless: ~~Phs,(b)throughCsJ..or.~" ", (ii) SF-Z71, Outlay Ileport and (A) The ten:" and cond!tions of;. (b) Insurance coft'roge: RedJielits'- ' Request for Reu,wursement for - , award promolt ~e ~on. '::' 'shall, at a minimum. provide e' . Construction l'rogrtun$. HUn has' (B) The exteD.Slon req~ a~ditional equivalent insurance coverage for real " adopted the SF-Z7t as the standard fonn ,Fedetal funds.. ~. -' ": property and equipment acquired with' to be used,for requesting reimbursemeIit (e) The extension mvol~ my" , ,.Federa1 funds as proVide(! to property . ... tor construction programs. However, , change in the a~proved objectives or 'owned by the recipient. Federally-" " ,,- HUn may substitute the SF-270 when scope of ~e project. '- ,-/. -owned pro-C need not be'lnsured HOD determines that it provides (6) For construction awards. ' - - ". :-'unless req 'by the terms and" ' '. ad~te information ~o meet HUD's recipients shall request prior written ; ~ conditions of the award. .' '.' , nee. approval promptly &om mm for budget -: (e) Real property. BUD presaibes the' (d) Revision of budget and program revisions whenever paragraphs (d)(6)(i):' following requirements for recipients' . plans. (1) The budget plan is the or (d)(6)(ii) of this section apply. ' . --- ' concerning the use and disposition'or . - , i Federat ~ .01. 59, No. 176 1 Tuesday, Septeni.lk t994 I Rules and Regulations ,: 4 - real propertyacqu.ired, in whole or in' Fedezal.funds and shall not encUmber current UtilizatiOlI, and continued ~ part under awards: .', tl1e equipment without approval of for the equipmenL (1) Titleto real property s~ vest in BUD. When the 'equiplr.'ent is no longer (iv) A control system shall be in e the recipient subject to the condition 'needed for the original project or to insure adequate safeguards to pre that the recipientshall use the real- . program. the recipient shall use the loss, damage, qr theft of the equipmt property'for-the autliorized purpose of equipment in connection with its other- Any loss. damage. or theft of equiprr. the project as long as it is needed and federally-sponsored activities. in the shall be inYeStigated and fully shall not encumber the property without following order of priority: . documented: if the equipment was ' ap~roval of f!UP. .. (i) Activities sponsored by HUn owned by the Federal Govemment, tl 2) The reCIpIent shall obtain wntten which funded the origii1al project; then recipient shall promptly notify HUn. approval !>y BUD for the use of real (ii) Activities sponsO~ by other (v) Adequate maintenance procedu property In other fed~y-sponso~ Federal awarding agenoi-.s. shan be implemented to keep the projeCts when tm: reaplent determmes (3) During the time that equipment is equipment in good. condition. that the property IS nfJ !onger ~eeded for ~ on the project or program for (5) BUD mal: reserve the right to !he purpose.of the ongm~ P~)ect. Use which it was ac:quired. the recipient transfer the tit e to the Federal 10 other projects shall be limited to shall make it available tOr use on other Government or to a third party named tho~ un~er federally-sponsored projects or programs if Stich other use by the FedEmll Government when such projects (1.8., ~) or Pl'OJP'M1s that will not interfere with the work on the third party is otherwise eligible under have P!>>'P0S8S CQDSlStent WIth th~ project or program for which the existing statutes: Such transfer sball be authonz8d for support by HUD. equipment was originally acquired. First subject to the follo\\ing standards. (d) Fedemlly-owned and exempt preference for such other use shall be' (i) The equipment shall be ' pro.r;[~y., (1) Federally-owned property. given to other projects or programs ~ppropriately identified in the award 01 " (l TItle to /ed:mI1y-ow;ed froperty sponsored by HLJD that financed the otherwise'made known to the recipient remaIns vested In the Fe era . d Ii h 11 be . . . Go\!: ment. Reci ients shall submit ~ulpment: ~n pre erence s a lD ~ting. . .' . . ell . venlory listing of given to projects or programs sponsored (11) BUD shalllSSue dispoSItion ~ua nY an lDed property in their by other Federal a~i.ng agencies. If instructions within 120 calendar days e ~~ ~:~. Upon completion of the equipment is owned by ~e f~deral after ~ipt of a final.inventory: The ~s ~ hen the property is no Government. use on other adlVlties not final Inventory sballlist all eqwpment e aw or w , .. shall sponsored by the Federal Government acquired with grant funds and federalIy- ~nger n~e:. ~ fu~~r affJort shall be permissible if authorized by owned equipmenL ItBUD Cails to issue e prope 0 HUn d' .ti instructi .thi th 20 tTzati 0. '. ISposl on ons Wl 0. e 1 '_ U hh If:Hun has no further need Cor the (4) Tbe recipient's property . calendar day period, the ~pi~nt shall property, it shall be declared excess and mlUU!8eme~t standards for eqwpment apply th.e ,standards of thIS section, as reported to the General Services acquired. Wlth Federal funds and appropnate. , Administration unless HUD-has federally-owned equipment shall Oii) When HUD exercises its right to statutory authority to dispose of the in<:;tude ~ of the following. take title, ~~ equipment shall be suhject property by alternative methods (e.g.. (!) Equipment records shall be . to ~e proVISions for federally-owned the authority provided by the Federal matntai11~ a~tely .and shallmclude eqwpment. . ' Technology Transfer Ad (15 U s.c. the folloWlng inConnation. '(0 IntangIble property. (1) The 3710 (I}) to donate research eqtrlpment (A) A descripti~ of~e equipment. ~pi?nt may cop~ght any work that to educational and non-profit (B) Manufacturer s senal number, IS subject to C9Pyng~t and was . organizations in accordance with &0. m~el number. Federal stock number. developed, or for which_ ownership was 12821, "Improving Mathematics and ~atio~al stfJCk number, or other purchased. under an award. HOD. Science Education in Support of the Identification number. _ ,reserves a royalty-free, nonexclUSIVe National Education Goals.") . (e) ~urce of the equipment, and ~vocable ri8!tt to reproduce. Appropriate instructions shall be issued mcluding the award number. publish. or otherwtse use the work for to the recipient by HUD. (0) Whether title vests in the recipient Federal purposes. and to authorize (2) Exempt property. When statutory or the Federal GovemmenL 'others to do so. authority exists HUD haS the option to (E) Acquisition date (or date received, (2) Recipients are subject to vest title to pro~ acquired with if the equipment was furnished by the applicable regulations governing patents Federal.funds in ihe recipient without Federal Government) and cosL and inventions. including government-- further obligation to the Federal (F) Location and condition of the wide regulations issued by the ' Government and pnder conditions BUD equipmen~ and the date the information 'Department of Commerce at 31 CFR part considers appropriate. Such propettyis was reported. " . 4Ot, "Rights to InYentions Made by "exempt property." Should HUn not (ii) Equipment owned by the Federal Nonprofit Orga.niz8tioilS anc:l Small f:'StabUsh conditions, titre to exempt Government shall be identified to Business Fums U~der Government. properly upon acquisition shall vest in in~~fe F~ o~~p. Grants, Contracts, and Cooperative .' tbe recipient without further obligation (w) A physical Inventory of Agreements."", ' to tbe Federal GovernmenL -. ' equipment shall be taken and the results (3) Unless waived by HUD. the . (e) Equipment. (1) TItle to equipment reconciled with the equipment records FederalGovemment has the right to acq~ a recipient with Federal at least once every two years. Any paragraphs (f)(3)(i)and (f){3){ii) of this funds s vest in the recipient. subject differences between quantities section. ' , ' , , to conditions of this section.. " determined by the physical inspection (i) Obtain. lettroduce,publish or (2) The recipient shall use the and those shown in'the acxounting - otherwise use e data first produced equipment in the project or Pf1?8l'8JI1 for records shall be investigated to under an award. .', , which it was acquired as long as determine the causes of the difference. (if) Authorize others to receive, . needed. whether or not the project or The recipient shall, in connection with reproduce, publish. or otherwise use program continues to be supported by the inventory; verify the existence. sudl data fo! Federal purposes. 47028 Federal Register' I Vol. No. 116 I Tuesday, September 13. 1~ Rules and Regulations - (4) Title to. intangible JhV)'VALy and Sucb a conBid woU)darise wheD thlf ~pients aYOid purchasing . debt instruments acquired UDder an employee, oftke:t, or agent. my member u.. ~ items. award or subaward vests upon . ofhis or her lmmediaIe family, hi. OJ' (ii) Where appropriate. an ana~ is ~ acquisition ill the recipient. The her =er, or lID ~ whldl made of Jeas8 and purehase altematives zecipient shall use that property for the emp or kabout to emplaJr ayof to d~jne which would be the most o=-authoriz.ed~l1!'J>OS8: . the ~ iDdicated hereiD.- b.u . _ econo::.1;:;U and pll1cti~ procurement property trust ationship> Real finllftt"l.' orotberiDterest fit tbe firm Corthe ~ent. _ . property. equi!:tent.. intangible selected for aD award. 1.'be cfficeIs, (iff} Solicitations for goods and property ana inst:nunen~ that are employees, and JgeDb oftbe recipient services p~vide for all of the fo~ acqUired or imI:iJed with Federal shaD neitbersolicit DOt accept- (A) ^ Clear-and ac:x:urate description furids shall be eld in tn1st by ~.. gratuities. favcn, <<anything or of the technical ~ents for ~e recipient as Uustee for the benefi,dan~ monetary value fn:a CllIDt:radCll'S, or material. product or sex"llCG to be of the project or program underwhich parties to suhagJ;eemeuts. However. pru.::w~ lD competitive procuremen~ the proPertY was acquired or improved. recipieuts may set ItaDdIIds far such a descricttion shaD not COfIhlin HtJD may require recipients to ~ situaticlOJ in which the fiNodaI intemt features whi unduly ~ liens or other appropriate notices oC is not substantial or the siA Is aD . comr;tition. record to indicate that personal or real unsolic:iteC:l item of -o-m-J vaIu&. The (B Requirements which the bidder! prom has been acquired or improved staDdards of conduct ahaU pIUride for ofrerormust fulfill and all,other factors wi Federal funds and that use aDd disciplbwy actions-tOo be ~lied for to be used in evaluating bids or disposition conditions apply to the violatioM of such staDdan:& . officers. prom ..' . property.' em~l~, or agents of the JeClpieDL . () ^ descn.!ction, ~benevc:r . ( ) petition.. All proc::unm1CIt practicabltJ. 0 technicaheqwr:ements In . 584.84 Procurement stand.... tmnsadioos shall be conclUded in. terms of functions to be performed or (a) Purpose of procure.ment ~daz:d$. manner to provide, to the maximum performance required. including the Paragraphs (b) through (1) of this section extent practical, open and free range of acceptable cba.racteristics or set forth sWldards (or use by recipients competition.. The recipient man be alert minimum accep.table standards. in establishing ~~ for the to organizatioual coDilids of interest as (0) 'lbe specr5c features ocubrand procurement of supplies ~d other wen as noncompetitive pI3diCes among name or equal" descriptions that expendable property, eqwpment. real contractoIS that may:reslrict or bidders are required.- to meet when such property and other services with Federal eliminAte competitioa. <<otheIwise items are included in the solicitation. funds. These standards are furnished to restrain trade. In order to ensure (EJ The accestance, to the extent ,ensure that such materials and services objective contractor perfonnance and practicable an economically feasl"hle. are obtained in an effective manner and elimjnllhi. unfair com~ve advantage. of products and services dimensioned in in compliance with the provisions o( contractoJ'$ that dav p ordraft the metric system or measurement. appli'?lble Federal statutes and specifications, xequiremeIlls,. stloltem4mt, (F) Preference. to the extent executive orders. No additional of work. invitatioos mr bitkandlor practicable and economically feasible. procurement standards or requirements_ requests for proposals shalI he excluded for products and services that conserve shall be imposed by HUD upon from competing Cor such procw:ements. natural resources and protect the recipients, unless specifically required Awards shan be made to the hidderor environment and are ene~ efficient.. by Fedeial statute or executive order or offeror whose bid or offer is responsive (2) Positive efforts ~1 made by aplbroved. by OMB. .. . . to the solicitation and is most ~pi!Bts to utilize small busines.sc;s. ) Recipient responsIbilities. 'The advantageous to the recipienC. price nunonty-owned ~ and women s standards contained in this section do quality and other fadors ccmsidered. business enterprises, whenever possible. not relieve the recipient of the The other factors shall. include the Recipients of Federal awards shalI take contractual responsibilities arising bidder's or offeror's compliance with all of th~ following stePs to Curther this under its contract(s). The recipient is Section 3 of the Housing and Urban ~L . . the responsible authority, without Development ACt oft968 (U U.s.c. (i) Ensure that small bV~~ recourse to HUD. regarding the 1701u}, hereafterreCened CO IS ..Section minority-owned firms, 8lld womAu', settlement and satisCaC!i011 ~ at} 3." Section 3 provides thar.1o the business enterprises are used to the contractual and administrative lSSUes greatest extent feasible. ad CODSistent runest extent ran:cabte. arisinS out of proarrements entered into with existing Federal, Srate. and lOcal (Ii) Make in , lion on forthcom~ in support of an award or other laws. and ~OM. economic opportunities available and arrange time ~ent. This includes disputes. . opportunities generated by certain BUD &ames (or purchases and contracts to claims. protests of aWard. soun:e financial assistance shall be directed to eac:ourage and facititste partidpation by evaluation or otheI' matters of a low- and very low-income pemms; small bUsfnesses. minority-owned firnu. contractual nature. Matters conc:eming SolldtatiODl shall d:bll set forth aU ,&lid women'. business enterprises. violation of statute am to be ntfaled to requirements that the bf der<<offeror (lliJ Omsfderin the coattod process such Federal. State CD'10cal authority as shall fulfill in order tor the bid or offer whether firms CC)~ lor larger may have pror:JuJisdiction.:- to be evaluated by the=C Any CODtnId.S Intend to Jubcimtract With (e) Codes 0 coitduct. The recipient and aD bids or offers may Iejeaed small businesses,. mlDority-owned firms. . shall mAl1)t"" written standards of when it Is iu the recipiellt's iDterest to met womeIl'. busfness enterprises. conduct governing the perfon:Dlmce of do so. . ., .... <. . (Iv) ~ CODtractlng with its employees engaged in l\e award and (e) Procurement plOcedUft$. (tlt\Jl coasortiums 0 small buSinesses. . administiatiOD of contracts. No. recipie:uts shall 8If8blish writtell. -' minorfty-owned firms and Women.s employee, officer, 01' agent shall pJ'OCUJeJDenI procedures. 1'hes4t." -' business enterpri.ses when. a contract is participate in the selection., award. or procedures stiall proride fOr, at. . too ~ for one of these firms to handle administration of. coDtrad supported minimum, that peragnlphc (eXl)(i)" indivi ua:g. _' by Federal funds if a real or ap~t (e)(1)(U) and (e){l}{iii) or this tedioD (vJ Use e services and assistance. as conflict of interest would be involved. apply. appropriate, of such o~izations as the - . Federal R.egister f .oJJ. '59, No. 176 1 Tuesday. September 1 ._..4 I Rules and Regulations 4702! .Small Business ~dmini!:tration and the than the ~ount of the small purchase paYment bondS'iiiiless the constrUction f Co ., Minority threshold. . contract or subcontract exceeds , De~e~l mm~ s in the (0 Cost and price analysis. SOme form $100,000. For those contracts or Busmes5 opmen geney f . - anal . shallbe made subcontracts exceeding $100 000 HUD Ii' ti d utilizati ohmall 0 cost or_ pnce ys:u. , " so ?ta on:n.ty o~ firms mid, and documented in the pmcw:ement may accept the bonding policy and . busmes;>85' . on -own, files in connection with every requirements of the recipient, provided womns busmf:nses. instmments I:erocurement action. Price analysis may -ffiJD has made a determination that the (3) e type 0 -p. g accom 1ished in various ways, Federal Government's interest is ~b~~CO:=:~ ~ers incluctmithe comparison ofprlce adequately protected. II such a- re. . e , · otations submitted. madcet C and determination has not been made, the and mcentive contracts) ~hall be ~mnAl'" di' together with' unts. minimum requirements sballbe as dete~ by the recil!ient but shall ~ Cost ~ysis ~ the review and follows:' appropnate Cor ~particuJar ling th best evaluation of each element of cost to (i) A bid guarantee from each bid~er procurement an if promo, e determine reasonableness. allocability equivalent to five percent of ~e bid interest of the p~ or project d all wabillty ,price. The "bid guarantee" sh8lI consist involved. The "cost-plus-e-perceD.ta;ge- an (g) ~e~t records.. Procurement of a firm commitment such as a bid of~" or;;s:r;::tage of.construction records and files for purchases in excess bond, certified check. or other. cost meth .of contracting sball not of the small purcbas8 threshold shall negotiable instrument ~m~ying a, _ be used. 'th include the following at a minimum: bid as assurance tpat the bid er shall, . (4) Co.ntracts shall be made OnlyWl (1) Basis for contractor selection: upon acceptance of his bid, execute respoo.sible ~tractors who possess the (2) Justification for lack of such contractual documents as may be potential ability to a;rfo~ ,successfully competition when competitive bids or ,uired within the time specified. under the terms an CODditio~ of ~e offers are not obtained: and iO A performance bond O11lhe part of proposed procurement. CoJ1SJderation (3) Basis for award cost or price. the contractor tor 100 percent of the shall be given to ~ matt~rs as . (h) Contract adm!nistration. A system contract price. A uperfonnance bond" is contractor integrity; compliance Wlth Cor contract adminiStration shall be one executed in connection with a public policy, including, where . maintained to ensure contractor contract to secure fulfillment of all the applicable, Section 3 of the Housmg and conformance with the terms, conditions contractor's obligations under such Urban Development Act of 1968 (12 and specifications of the contxact and to contract. U.s.c. 1701u); reco~ of past. ensure adequate and time~t!ftllow up of (iii) A payment bond on the part of performance: finan~..and technical all pwchases. Recipients evaluate the contractor for 100 percent of!!t~ l'eSOW'C8S or aCC8SS1bilityto ?ther contractor performance and document, contract price. A .'payment bond 1$ one necessary resources. In ,cert:nn , as appropriate, whether contractors executed in connection with a contract circumstances. contracts Wlth.certain have met the terms, conditions and to assure payment as required by statute parties are restricted by agenCIes' s~fications of the contract. of all persons supplying labor and implem~tation ofE.~.'s 12549 ~d .. (0 Contract provisions. The JeCipient material in the eXea1tion of the work 12689, "Debarment and Suspens1on, as shall include, in addition to provisions provided Cor in the contract. set forth at 24 CFR part 24,' to define a sound and complete (iv) Where bonds are required in the , (5) Recipients shall, on request. make agreement, the following provisions in situations descnDed herein. the bonds available for the Federal awarding all contracts. The following provisions shall be obtained from companies _ agency, pre-eward review and shall also be' apr:ed to subcontracts. holding certificates of authority as procurement documents, such as (1) Contracts excess of the small acceptable sureties pursuant to 31 CFR requests for proposals or invitations for pw:chase threshold shall cOntain part 223. "Surety Companies Doing bids, independent cost estimates, ete., contractual provWons or conditions Business with the United States. .. when any of the following conditions that allow for admini9Tative, _ (4) All negotiated contracts (except apply. contractual, or legal remedi8$ in . _ those for less than the small pwchase , (i) A recipient's procurement. instances in whicb:a contractor violates threshold) awarded by recipients shall piocedures or operation fails. to comply or breaches the contract terms. and _ include a provision to the effect that the with the procurement standalds in provide for such remedial actions as recipient, BUD. the Comptroller General HUn's implementation of Circular A- may be appropriate. of the United States, or any of their duly - tl0. (2) .All contracts in excess of the small authorized re~tatives, shall have (ii) The procurement is expected to p~ threshold shall contain access to any ks. documents. papets exceed $100,000 or the small purchase suitable provisions for termination by and records of the contractor wJ:dch a,re threshold.fixed at <It U.5.c. 403 (11), the recipient. inc1u~ the manner by directly pertinent to a specific program whichever is greater. and is to be which tMmination be eflected and for the pwpose of making audits. awarded without competition or only the basis for settJ~t. In addition, eYAmiruttions, excerpts and one bid or offer is received in response such contracts sbaU describe conditions ~tions.' . to II solicitation.. under which the ~ may be (5) contracts, including small (ibl The procurement, which is . telT1JinAfAd for default as weD as - purchases. awarded by recipients and _ expected to exx:eed the small purchase c::G.lditioas where the contract may be their contractors shall contain the. _ threshold, specifies a "brand name" . terminated, bec;ause of c::irBtmmnce$ .ptocurement provisions of Appendix A product. ~ond the control of ~e ~ctor. to this rule, as applicable. ' (Iv) ~ award over the 3) Extep~ as otherwise ~ by, ' small P threshold is to be statute. an, aw8.rd that reqw;es the '. f 84.85 Reports and rocotds. " awarded to other than the apparent low contracting (or subcontmcting) for (a) Pu~ of reports an~ records. bidder 1J11der a sealed bid procurement. construction or facllity ~pIOftD1ents Paragrap (b) and (e) of this ~on set . tv) A propoSed contract modification ~ providf! for the redp~ent to f~lIow forth f!1e proced~ f?r ~Onito~ and changes the sco~ of a contract or its_ own reqwrements relating to bid reporting on the ~pient s ~C1 increases the contract amount by more gu~tees. perfonnance bonds. and _ and program performance and the _ 47030 Federal. Register 1- V-ol( i,N(}. 116 1 Tuesday. Sep(P-l1lber '13. tS; i , . I Rules a.1i.d Reg"fatioDs . .,. oecessary standard reporting forms. (c) Reteution and access reCtuirementa '.' Jrd.:exr::ept when HOD'am ~ . - . They also set forth record retentiou for records. . ' . demoa.stnite thatsUcli rea:n:ds $hall be ro,ui.rements.(l) This paragraph{cJ sets fOdh . bpt Clll11fidentialmid-wOuId have been ) MonitDri1f8 and reporting program "~ for~retention and exempted from ~qsura ~to I({;~ _ - access to ftlCOrds for awards to the Fieedom:ofIntOima1imi Act, (s l)Rec:ipiettts are respoDSlole for ::;8ients. Federal awa:rdiIIg"ageodes Us.e. 552) i!the recOrds had belonged managing imd mODitoring eech project. not impose any odlerrecad 'to BUD. . program. snbaward, function or activity retention Gr_aa:ess requirements upon . .' supported by the award. Recipients red8ieuts. ,_ - 'flUS T..........enIon::ement. shall monitor SUbhrards to ensure (2 F"manciaJ record:s,:tiug _ ' . (a) Termination. (1) Awards may be subredpients hnemer the audit documents, slatistica11 and aD 'terminated in whole or in pelt only if ~ments as delineated in S 84.82(e). other ~pertiDeDt to an award paragraphs (a)(1)(0. (a)(tl(H), or , 2) 1be Federal a......&ag agency shall shaD b& I8tained lOr a period of three (a)(l)(iti) of this section apply. presc:ribethefrequenc:ywith which the years from thedateof~'''-''~mlOrthe (i) By HtJD.ifa recipieIltmateriaDy per:tOrmancereports Shall be submitted.. final expenditure report or, torawuds fails to comply with the terms and Except u prorided in paragraph (b)(6) that IIl'8 renewed ~ or ammaDy, cooditiaas of en award. . of this sectJmJ, periOrmmce reports from the date of the ~cm of the (ii) By BUD with the COIISBDt of the sbaD 0.01 be JeqUirecf JIJO.I'8 ~tIy quarter:ly or ammaIlinandal repent, as recipient. in which case the two partieS than quuteriy or less frequent Y than authori2:ed by BUD. The only sIIa1l agree upon the tenninatiOll annually. Annual reports shall be dUe exce~ons are the f~ . coaditioas. induding the effective date 90 calendar days after-the grant year; {O any litigation, ~ or audit is and. in the case of partial termination. quarterly or semi-tmnnal repotU shall be started before the expiration oCthe 3- - the ~on to be te,rmirode<J. - due 30 days after the ~g period. year period. the recards shaD be (ill) By ths recipient upon sending to The Federal awarding agency may mtained UDhl aIllitigalion. cIai:ms or BUD writleD notification.~ forth- require am:mal reports before the audit 6ndiDgs involving the JeCOrds the ~ f<< ~ termiDa:tion. the . anniversary dates of multiple year have been%eSOlved and final action eff~ve .date. and. ~ the case of partial awards in lieu of these requirements. taken. termination. the portiOn to be The fiDaI perfonnance reports are due Ci'!1 Records Co~ real I?roperty and te~tecL ,However. if HUD. 90 calendar days after the expiration C1r eqUIpment acquired Wlth Fedenl ~ds detemunes 10 the case of partial termination of the award. ' sbaIl be retaiiled b 3 years afta final ' tem1iDatic:m that the reduced C1r (3) If'iDapl'lUp.iate. 8 final technical ~tion. - modified portion of the grant will not- orperfOl'!D8J1Ce report ,shall not be (Iii} When iecords are traDsf'ened to or accomplish the purposes for which the ~d after completion oC the project. maiutained by the Federal awarding grant was made. it I'IJtfY terminate the of} Whm l'eq1Jired. performance agency. the :J.year retention requirement grant in its eDtirety undereitber reports shaD generally contain. (or each is not appllcabkto the recipient. paragraphs (a)(l}(i) or (a}tll(H) of this award, brief jnformation on each of the. . (3} Copies of original recciIds may be section. following: substituted for the originall'eCOJ:ds if (2) If costs are allowed under an (j) ^ comparison of actu~1 authorized by HUD. award. the responsibilities ot the accOmplishments with the goals and . (4) HOD s&all request transfer of recipient referred t~ in S84.87(a}(1). objectiYes established for the period. the certain records-to its custody from including those for property findings of the investigator, or both. recipients when it detennines that ~ management as applicable. shaI1 be When8YeT eppropriate and the output of 'records possess long term ~ention coosidered in the terminatiou of the programs or projects can be readily value. However. m.order to avoid ~ award. and provision shall be made for quantified. such quantitative data duplicate recordl::eeping, HOD may , continuing responsibilities of the should be related to cost data far make arrangem(mfs far recipients to recipient after termination, as . coffl)';tation or unit costs. - retain any records that ~ ~ously ap&ropria1e. _ " . '-, ,~ Iii Reasons why established goals Deeded for joint use. _ - 3) If costs ere allowed. tlle cost were not met, if acpropriate.. (5) HUn, the Inspector GdneraL principles in 584.27 apply, even though (5}Ret:ipients I all not be required to ComptrollerGeneral of.the United the award wasinade OIl a lump-sum submit more than the origioaland two _ States.. or any of their duly authorized basis. Altematively, a termination corJes or~formance reports. representatives,. haw the right of timely seu1ement may be teaehed by prorating ~) Kec:ipieDta shall immediately and unrestricted access to any books.. the grant amount against the,peIC8Utaae ~ HUD of developments thaC ,haw ~oaunenfsopapers. or other records of of completion of by,some other method a Slpifil'!Anl bnpact OIl the award. tedpients that ant ~ to tile 8$ detem1ined by the Grant Oflker..as supported ,adiv:ities. Abo, noti.fic:aUoD awards. ~ order to iDaI:a audfts, . long as the metbod used JeSWts in an shall be given in the case of problems. ~mfnllticms.. ~~ traDsclipts anti ~tablesettJement to ~ delays, Of adverse conditioas whim - copies of ~ doclWleDts. 11ds :itl lb) Enforcement.. (t) . for mateJialq ~ the ability to meet the . also indndes tfmeIJ ad 1'8111....,..,.' noncornplioPCe. If a recipient materiaIIy obiedi... G{1he award.. 1bis, ' access to a recipient's pssauneJ for the falls to comply with. the terms and notiJic:atiou shaD indud~,.a statement of pU1'pQS8 of int8rriew and d&cusslou. . conditioaao! an award., Whether-stated the action taken or contemplated. and related to IUCh ~'\J~I,*- "Iba rJghts of in a Federal statute, regulation. any .$$i~_nce Deeded to ftlSOfnt the access iIl.tIlts ~pIl (c}(sl me not em""'Y'<:e. application. or notic:e of situation., .. . _limited Co the required nfsnticm period. award. HOD may.. in addition to. . . ' (1) HOD ~y male SIte v~. as but shall Jastu lodI" rec:ards are. ~~ng any oCthe special amdilioos needec.l tetained., outIiJied in 5 84.1~,tab 0Da or mont or . (8) ~ shaD comply with deamJC8 (6) UnIea'requfred by statute, HOD the following acticms,. as appropriate in Nlluil~en:ts 015 CPR partt3'20when , sbaI1u(J( place restrfdioos OIl recipients the circumstances. " req~ performance data from tha! limit pub1fc.acassto the records of 6) Temporarily withboId cash reapumts. reapients_ that are pertintmt to an payments pending correction of the '. I Federal ~et:. .59. No. ,116-1. Tuesday, September '~ ...,,:14 '"Rules, mid" Regul8tions 4'703 defic:iencY by the recipient or more- .:_L (1) The~ut Glen.award does-not wage detenoinatiOn. The recipient shall .S8vere enforcement action by BUD. - -- affect a:Jftofthe- ~ - . _ . report aU suspected or reported violations to . (ii) Wholly or partly suspend O!' fi) A . requirements m ~8:f.26. . ~ CcnrtlUc:t wott H cmd Safrty terminate the current award. (01 Property managente:Qt - '4. 0fIrS fm WithI10ld further aWards for the '1uireme:nts in Sf 84.83 (b) throng}! {gl. Stondarr:Js.~ (40 U..S.C 327t1uough 3:J3J- J "') Records enti required . Where applkable. aU CXlDIr.actuwarded by , project or p~. Ut ref on as m .. ts . of $2000 kJr . teClplen m excess coasaucUon (iv) Take 0 errernedteS that may be . S 84.53. _ , contracts aud ia e::a:a:::s:sofS2S00forotber legally available. . (2J. A.fte1: closeout of an award. a . contm:::ts that iD:voIw the ~ of . (2) Hearings and appeals. In taking an relationship .created under:m awaM meclwric:s 01' laborers man iDcb1de a enforcement action. HUD shall praride ~y be ~fieci or ended m whole oc provisioD _mmpliaa with Sectioas 1oe_ the recipient an opportunity for beariDg. m part WIth the CODSeD1 of HUn and the and 101 of the Contract Wad: Hours and~ appeal. or other administra~v7. ~pient,. p~vided the r:esponsibilities Safety Standards Act {40 U.s.c. 327-333}. as proceeding to which the recIpIent IS of tile reaplent are considered and supple~ented by Department of Labor entitled under any statute or regulation provisions made for continuing regulations (29 CFR part 5). Under Section r hi t th cti " 1 d responsibilities of the recipient as 102 t;'f the Act, each contractorshall be ap&lca eo ea on.In\iove. . . requlfedtocomputethewagesofevery' 3) Effects of suspensIon and appropnate. mechanic and laborer on the basis of a termil!ation. Cost~ of! rec~pient Appendix A to Part M-Contrad Provisions standard workweek of 40 hours. Work in resultmg from obhgations Incurred by All tracts awarded by a tee" t excess of the standard workweek is h ., d' . con, lplen . 'bl 'd d tha th k' t e reclpl~nt . unng a suspensIon or including small purchases. shall contain the pennlssl e proVl e, t e wor er IS _ after tennmatIon of an award are not fo11o....;ng provisiollS as applicable: ~ri1pensated. at a rate of not less than 1 'h allowable unless HUD expressly 1. Equal EmploJ71Ient Opportunity-All hmes th~ basiC rate of pay for .aU hours authorizes them in the notice of contracts shall contain a provision requiring worked 10 ex~ of 40 hours In th? suspension or termination or compliance with E.O. 11246. "Equal wor':week. Section 107.ofthe Act IS . b 11 Qth .. t sts Employment Opportunitv " as amended by appbcable to construction work and provIdes su sequen y. er recIplen co . . th t 1 bo ha' h II be 'roo . . .. E.O 11375 .. Arnendin Executive Order a no a rer or mee nle s a reqUI - dunng suspensIon or after termmatIon . R I '. E f Em I to work in surroundings or under working h' h d t hI 11246 e atmg to qua p oyment . " . W IC are necessary an no reasona y 0 rt "ty" d I ted b condJtlons whIch are unsamtary hazardous . . ppo unl , an as supp emen y . ' aVOIdable are allowable If paragraphs regulalioQs at 41 CFR part 60 "Office of or dangerous. These requll"ements do not (b)(3)(i) and (b)(3){ii) of this section. Federal Contract Compliance' Programs. apply:o the pu~hases ~f su_pplies .or apply_ Equal Employment Opportunity, Department matenals or articles ordmanly available on (0 The costs result from obligations of Labor:' the open m.arket. or eon~c:ts for . . which were properly incurred by the 2. Copeland '"Anti-Kickback" Act (18 transportation or transnusslon of lDtelhgence_ recipient before the effective date of U.5.C. 874 and 40 U.5.C 276c}-AlI 5. Rights to Inventions Made Under a suspension or termination are not in contracts and subgrants in excess of 52000 Contract or ~ment--(;ontracts or .. . f . d' tb r for construction or repair awarded by agreements or the perfonnance of antiCIpatIon 0 It, an m e case 0 a .. ts db" h II' I d experimental developmental or research .. , II hI teClplen an su recipients s a me u e a ' - . . ter~matlon. are noncance a e.. provision for compliance with the Copeland work shall provide for the rights of the (11) The costs would be allowable If "Anti-Kickback" Act (18 U.5.C. 874) as Federal Government and the recipient in any the award were not suspended or supplemented by Department of La~r resulting. inven~ion in accordance with 37 expired normally at the end of the regulations (29 CFR part 3. "Contractors and CFR part 401, "Rights to Inventions Made by funding period in which the termination Subcontractors on Public Building or Public N_onprofit Organizations and Small Business takes effect. Work Financed in Whole or in Part bv Loans Finns Under Government Grants, Contracts (4) Relationship to debarment and or Gr:ants from the United States"). The. ~ct ~nd Goope~tive A~me~ts:' and any suspension. The enforcement remedies provtdes that each contractor or subreclplent lmplemenh~ regulahons ISSUed by HUD. 'd ffi d' tm secti . Id' shall be prohibited from inducing byany 6. CleonA,rAct(42U.S.C.7401 etseq.) I en I Ie 10 s on me u 109 . . d th Fed I W. I' -. . . ~ means. any persan employed In the an e era ater Po lulion Control Act suspensIon an? !ermmation,. do not. construction. completion, or repair of public (33 U.5.C. 1251 et seq.). as amended- preclude a recipient from ?emg subJect work. to give up any part of the Contracts and subgrants of amounts in excess to debarment and suspensIon under compensation to which he is otherwise of $100.000 shall contain a provision that E.Q.s 12549 and 12689 and HUD's entitled. The recipient shall rePort all requires the recipient to agree to comply with implementing regulations at 24 CFR part suspected or reported violations to HUD. all applicable standards. orders or regulations 24 (see S 84.13). 3. Davis-Bacon Act. as amended (40 U.s.C. issued pursuant to the Clean Air Ad (42 2760 to a-7}-When required by Federal U.s.c. 7401 et seq.) and the Federal Water S 84.87 Closeout procedures, subsequent program legislation, aU construction Pollution Control Act as amended (33 U.S.c. adjustments and continuing contracts awarded by the recipients and 1251 et seq.). Violations shall be reported to responsibilitIes. subrecipients of more than 52000 shall HUD and the Regional Office of the (a) Closeout procedures. include a provision for compliance with the Environmental Protection Agency (EPA). (1) Recipients shall submit. within 90 Davis-Bacon Ad (40 U.s.c. %76a to a-7) and 1. Byrd Anti-Lobbying Amendment (31 _ calendar days after the date of as sup~lemented by De~nt of Labor u.s.c. 1352)-Contractors who apply or bId I' f th . rd II fin . al regulations (29 CFR part 5, Labor Standar!:ls for an award of $100,000 or more sbaU file comp etlon-o e awa , a ane. Provisions Applicable to Contracts Governing the required certification. Each tier certifies perf~rmance. and other reports ~ ,Federally .rman~ and Assisted to the tier above that it will not and has not . reqUIred by the terms and condltions of Construction". Under this Act. contractors used Federal appropriated funds to pay any the award. HUD may approve - . shall be required to pIOi wages to laborers and person or organization for influencing or extensions when requested by the mechanics at a rate noc: less than the attempting to influence an officer or recipient. minim~ ~ specified in a wage employee of any agency.._ member of (2) The recipient shall account for any detennmatio~'~de by the Seaetary of Congress. officer or employee of Congress , or real and personal property acquIred ~. In addition, contractors shall be . an employee of a member of Congress in with Federal funds or received from the requinld to par ~es not less than once a connection with obtaining any Ftlderal Federal Govemmen't in accordance with week. The ~~llent shall p~.a ~py ?f the contract. grant or any other a",-ard covered by ~S 84 83(b) thro gh (g) current pnmullng wage detennmation ISSued 31 U.s.e. 1352. Each tier shall also disclose . u. . , by the Department ofl.abor in each- any lobbying with non-Federal funds that (b). S~uent a~Jr:sfI!lents and solicitation'and the award of acontrad shan takes place in connection with obtaining any continuIng respcnSJbll1tJes. be conditioned upon the acceptance or the Federal award. Such disclosures are . 47032 Federal Register I Vol. No. 176 I Tuesday, September .13, 199-_.0 Rules and Regulations forwarded from tier to tier up to-the by ~es. and amtracton declared" t' ~ will provide drug-free workplaC.es. recipient. ineligible under statutory or regulatory I:... . potential nlCipient must certify that it 8. Debarment and Suspension (E.O.s 12549 authority other th8D &0. 12549. Contractors" will comply with drug-free workplaaJ and 12689J-No contract shall be made to With awards that exceed the small purchase requirements in accordance with the Act \U1d - parties listed on the General Services threshold shall provide the requUect" with HtJD". rules at 24 CPR part 24, subpart Administration's Ust of Parties Excluded certification regarding its exclusion status F~ , from Federal Procurement oc and that of its priadpal employees. Dated: September 1, 1994. Non procurement Programs in accordaDce t:. Drug-F-ree Workplactt 1IequiremtmU- Henry Go Cisneros. with E.O.s 12549 and 12689, HDebarm,ent ll1ld TheDn1g-Free Workplace Act 0(1938 (4% Seaetmy. Suspension:' as set (orth at 24 CPR part 24. U.s.c. 701) requires grantees (including . This list coDtains the Dames of parties individuals) of federal ageDcies. as . prior (FR Doc. 94-22416 Filed 9-12'-94; 8:45 am I debarred, suspended, or otherwise excluded condition oCbeing awarded a grant, to certify lllLIJHQ COOE 4Z104Z-P - . . . - - Exhibit 6 OMB Circular A-I22 -16- /I<~. <1/ I..} . Circular A-I22, July ~980 Page 1 OFFICE OF MANAGEMENT ANO public c:omiDntl. The morea{pf!icant cosnfzant :c and the recipient to SUDGET change. to the ba.ie Circular Ud. aqoU.te w there it nO b.,is fOr Attachment A fnc1ude: .. determlniDa J.he fair market "alue or the ~ "'-122. -co.t PrfndpIH for . I. Puqrapb Z. "'Supe~lloa" wa. .meei readered. and to pennit fndireCI NonprOfit 0rganIzaU0na" added to th_ ba.lc Clrcular to make Jt ...... aUoca~ to donated MMca to ~ . AOf:MC1': Office orManalement and dear ,that.thl. ~ar ~nedn COtt chuaed to U qrHment or ued to meel B dl;(,L prindplee I..ued hI; individual ~de.. coet ahatiaa or matchfna ~tI. u. Z. Paragraph C 0 the baac QrCaIar .. Parqraph S1. EquiprM.nt end Ot.h AC'I1OfC: Fiaal Policy. .... been amended to make It c:learlhat. OzpItaI Expendituru. wu cha. eeL l!r the abtence or U adnnc:e ~t on ~ eqafpmallIaow de~.. 8UMMAIn': 1'hfa notice adviaea of a DeW any element of cost wm DOt In ftIelf "yfq u acquWtioJl cott ofSSOO and . OMU QrcuJar dealis18 With priDdples {or . affect the re.uoabJen... 01 aDocabIlity ..mIlffe of lION c&a.a two ,.... delen11fnin& cotlt 0I,ranta. CODtnctl. rjf that element. Alto. th1I ~ . s. Parqrapb zs. MtN/tinp. ud other qreemenu with aoa~nt wa. amended to maleelt ear t. ConfeteN:tl$. 11ae prior approval org.nfuticmL . where an Item. or cott ~airiDJ prior nqufrement (or cJwsfsaa meetfnra and The Circular.ls the product of an appnrvaJ 11 .Rtdfied In e buCfCet. coDtereDCel.. a ~ cost Wat InterqenCJ' review conducted O\'tr a appl'O\'al of the budset couaUbUt deleted. A HI'ltace 'Wa. added to make two-year period.llt purpose II to approval of the co.t. '. c:Iar.uc:b cot" were allowable provid, a aet or COlt prindplea to u.3. :e~ph 5 :~the,basJc ~b provided they meet the criterioa {or the replace exilUI2, principIa tuued by a en ange reJDOYe U7 u t alIowabtUtJ 01 cost thown in Indi\'idual_geades. nue IaaYe often a. to which aoaprofit arsufuUou Attac:hmeDt A- eontained vUJia8 ud confUcUna would DOt be eow=red bY the CIraaIar, .. Parqraph %1. OIrorUzodon eMu. requlremeDtt. ucI auted CODfualon How. Appendix C CO the CrcuIar... aD ... ameaded to pnMde th t dmiaIaUa IIdi exdaion.. . . a amoDa ~ a , ton. a tori, a:::wPuqraph I wu addecl to the baac Gl'lUfuUon COIlt may be anowable aDd, DO~fit oBid" '1'1ae new Qrculu at CO periDft Federal qeada to wbaa appnmd m WIiUDa by the ~ a anlform approach to Ibe from the awardins qenq. of det:::f COles. &ad request exceptiona . . ,,~ ::: _~ ~. requirement. of the Circular. . arqra ~ III Jl!OIDOCe eftidency beteer . L Parlsrapb E.z. wu a~ to l'to/enIt /oGtrtt:Ik. we. rniaed to undentaDdina between redplenta and Attachment A to cover tile aeaoUatioD provide that pase c:Jwwa may be . the Federal Covemmeat. aad appnwaJ of IDdirect COlt me.. ud anowahle. IPFEC1'tVE DAft: The Circular become. to ~de for CClIDfzance- ~ta. I. Paragrapb 31. PuhNc lnlcmntltUJn ef.f'ecti\"e OD I..ua~ more .fp!ficant chanse. to &rvlce CDIU. we. modified to malee fIOII PUK'I"HIA IWORMATIOII CONTACT: Attachment B to the CIrcuJar IDdude: public lnf'ormatioD cot" aJIowable .. Palmer A. Marcantonio. FiD..nd.1 1. Paragraph S. ~0It 101' dired coa.. with awardUlc qeacy Maugaleat Branch. 0fIice of hnonaJ SUyi'ca. w.. modified to: appnn-aL MaJUlgement and Budget. Wuhfastcm. . a. Permit Federal qeDda to accept. t. Parqraph 43.kntal CDs", wa. D.C. 2OS03. (%02) 39S-m'3. . IUbstitute ')'Item. Cor d~~ rewriuea to: ~AIIY IWOfIIIAnotC: Betore pe~onnel coata through mean. er .. Mue it dear that rental COlts the Circular becale 6aallbere we. .thaa penonnel.ctivity reports. ader lea... which create. material . extea.i"e ~idmatioa with the affected b. Clarity provf.iona covering the equity on the Ie..ed property art' DOGprout oraaaizationa. profes.ional aUowability 01 co.ti for unemplG)'meat .nowable oaIy to the amount that the , uioc:iation.. Federal .geacie. ud compeuaUon' or worbnea'. . cqaa(zaUon would ha"e been .Uowed othera. All illtaftted persona were compenaaUon. and co.1I 'ollDnrance laad they pardJued the properly; e.g.. pen an opport~lty to comment OD the poUdel on the Jivea of, tru.t.... officen.' depreciaUon or use aDowanee.. propos~ Circular tbroqb informal orother n:r.!.~ee..' IDaiateuace. taxa. Insurance. elc. consult.liGna .nd . notice In the Federal . Co Make owable any Increased b. aarify the criteria for maleMJ JtetPftar.1n relpODlt to our request. for coall or pen.lon plana caused by equity le..es. coczoment. we received about tOO leuers del.yed fundlns. to. Parqraph 51. Tiovel Costs. ,,'as from Feder&! _genae.. nonpront '. d. Delete. paragraph de.Una with amended to delete tbe prior approval oigan.i%llUona. .uociatioQt. ud othc=r review and approvat of compenaation of requirement for domestic travel In iIlterested l1lesnbera 01 the pubJic. These individual ezDlloyee.. . addition to the .bove. a number or comaU::lts ...-ere COJUidered In the final Z. Paragrap 6. Continsl!nciu. wa. editorial c:b&nses were made to the version of the Circu1M. Tbe....loDow. 8 cbansed to make It dearth.t the term oriainal document. summ.ry of the malor co~.. and the "contint(ency.relerY"" exduda feU. . 'CtiOD takm on ueb. . Inauranet' reterves or pen.ion Nnda. Suggt!$ttJd Changes Nat Considered In addition to the changes described. 3. Paragraph 10 w.. modified to NtJCfmOly, other chifngt!s have been made' to pravide that the ".Iue of donated CommtmL Several mpcmdent. impro\'e the clinity and readability of Hmce. aed in the performance of a qUf!stioned the provi.ion that. for ..tellS the Orallar. Tu the extent pollibJe.'we direct eo,t aclivU)' .han be aDocated a than arm'.lensth.. Je.se.. rental costs have tried to make the language of this ab"re of indirect cost only when (al the are llilowal1le only up to the . Jaunt that Qr:-uiar cansilltent witb that aC cost awegate "uiue of the eenice .. . would f:Ht GUowed had title to the prfnaplf!' Jor education.l wUlutioris m.terial. (h) lhe service. are ,uPpotll::d property bftn Vetted in tilP. gntn(~ (Circular ~\-21 '" ..nd State and joatl by 1iI. signiCiCllnt amount of the indirect OI1anizatiw. in their apimun this rule o~''':'''4"'nt!r.ts ,Circu!ltr 14-1). cost incurred by the organization. and will result hi unneullury CO$: to the S ' S' 'r' Ch Ie) th.. direct co.t activity i. not pursued Federal Q:.\vemmenl. cinct' it would um:.JCf)' Ct. 18nJ Jr.anl ar.gf's:' .., r th b fj f th Fed I ' . . . I pnman y or e ene It 0 e era encoura~ an org:1nlZutlon to lease NI (orth are cJlangcs thai ba\'e been CovtmmenL Provisions were .~ apaceon tbe commerdal :narktot at mflde in th~ final Circu~::r as a res'Jlt of added to this paragraph for the higher rale. ~ "., . Circular A-I22 Page 2 -- RN:pOll$o. The coat principles are - employer relation.bip in the individualasende. ror nonprofit . designed-to cov_llfmoal.ituaUont: ~agementl rot thl. ...latanee. nor are organization. . ",. n however. there are alwfI)'t exception. there (:ommfUee members normaOy 3. Applicability. e. 1'bese principle. 'i ---'-.. thaat mUlt be coMidered on . case-by. reimbursed ror .uch leMeet, Further. It .baU be Uled by all Federalagencie. in catoe b..i.. The Circular contains a wa. pointed out the coJJUZUUee mem~rs determlnlna the co.tI or work1::ormed ptOy~.ion rot Ft'deral agencies to request .pend II1I1IlY tIloUJande of hour. omide by nonprofit Oft!antution. un er ai-anti. .,1lf'X"flUon.. the orianiuUun'a prenU.et coAductma coupcrative agreement.. coat I :.t/IIQMttI, !;e:1ft:f..1 u-spmsc',:alll .n:seSM. reimbunement contradA. and other qeu!loaed _hylnterest II not an RapoMt:. n would Ippear that thia cotlu.ct1 in which costs are used In doWable COlt. tlm:e It II a otdia..,. fype of committee aia:aaaemeat would prlclq. l~traUOn. or MttlemenL aDd aec::uMrY. coat of dolq buline... DOt be couldered m the d.tmDlDatioD An of theM Juts IU'D.entl ~ hetetfter RapoM&.lt _ been. Joaptuding or ihe,orsaafzaUon.1 indUed COlt nte iererred to al awa. The prindplet do policy DOt tq IeCClfP1Ize intereat al a toll. - ~ed that Federal:=:a do not DOt Ipply to awarde ander whidl a However'. lid. policy hat recel.'dy ~ raft aareaaoaable of Indirect orpnb;atioa laDOt required to account rerited ror State and local pernments coal. However. the c:opfunt qency to the Covemment for IchIIl CO... in ClrcuIar. 74-4. with respect to the cost wf11 be respoftllbl. for evaluaUDI the lncwTed. ~r omc:e .pace. 'Ib_ teVision provide. allocation of IDdirect colt where there b. AU coat refmbunement .ubaward. ~ that "resltar rates for publicly owned . are c:ommittee-type aftansementl on il (subgranta. aubcoatractl. etc.) are buit~ may be ba.ed on aCtual co~ta. cue-by-cue ba.... ' .ubject to tho.e Federal cost prin~plet lnc1udina depredatloa. interest," . ConunenL One rapoacfent ~";~ted appUcable to the particular Oqanu:aUOCl operationaad IQaintenace COII~ and that wherever ponIble the........ - in ~ 'lbua.1f a aubeward II to a other aUowab!. cotta. 1'hfa reviSion w.. the FtHftJtaJ ~ent &!gut::::.. b. nonpmut OfIanizaticm. thia CIrcalar under ~~ ror lOme time. It ued for ncqlfOflt oqaafzaUoa.. .", thaIl,pply: if. aubawardll to. , was .tudied extea.fvely by Ot.ql. the .Ra~ nelupqe in the Federol c:ommerdal :L.aniuUon. the COtt CeraeraI Ac:coanIh\8 Office and olben. .'. Rtp/t' prlDciplq a~ ble to commadal . andc:ouidet'&ble auJrIla went Into ita 1'rrJcurelnent atiOM wu --1 . ClOIlCeI'ftl ab apply; If a aubawardla to fomudatioa. Suaettiou for exteadir.: Jt de.ipated primarily for commercial . a con. or unlvenlty. CIrcular A..zt to aoaprofit oqaalzatiOOl would have to ~ .11 DOt aeceaarily ~ IUlted abaU apply; If. ""ward It to. State. be "aml-d with equal care. Thli 1w to ncmproftt OCtiODl. ~ ~ locaL or federally rec:opJuctladiu not-ret beaa doae..nd we were nautiOll of General ~tIq tribal sovernmeat. QrcuIar 14-4 ahaIl reluctanlto furtber delay .Iuuance of omce. the nonprofit COlt principlea apply.' - tbII 0rcuIar. ' were wriUe1l to coaform.1 closely U 4. Deflnlt/Onl... -NonprafIt . C'ommenL Several respond=ta ' , pot.lbleto tbon ohduc:aUonal ~tion"meins aIlfcorporatJon. questioned wfsy public inConnaUoa costa ',iaJUtutioaa (Circular A-Zl). . State tNat. allOdaUoa. cooperaUYe. or other (-) were n~ .nowable .. an indJm:t COtL lad Ioc:aJ JO'ftl1UDeDta (CIrcular ,'''). o'laniu"oia which (1) II operated ,. ~ .. ~ Public lriformaUOIl co.ta ... J....... primarily for 1IClenUfic. educaUoDal. are ofteia direct ~ to a Ok/. F'iItonciaJ M~BrattcA., senice. charitable. or'tlmJIar ~ OI1aniutlOll'a other prosrama.11ley are . . in the public interest (2) II not . alloWable. however. II a direct ch&l1e (Qrc:aW No. A-UZJ organized primarily for profit ad (3) __ they are wltlWl the ICOpe of work 'UU r7. ueo .... ita net prjJceeda 10 aaaintafa. of a particular qreemeDL To Tne Headl of Executive Impnrw-e. asid/- expandlts operallou. QuruMnL One mpondent :!:3i.ted Depertm d bli bm For tbIa purpoee. the term "'DoDproftt that amaUer IfUtee. be exclude from eata an Eat. · ent. organization" excludu (I) coUep. and comptyiq with the Circular. Subject: Co.t princf~l" for nonproftt , univenlUea: (il) boapltaJa; (Iii) State. Raponu. SimJ1ar rutet for the SO O'1aafzationa. . . loaL and federdy recoplzed lDcUa Mtected ItemI or co.t would be needed ?w- Putp06lt. 1'bI. Orcutat e.tabli.he. tribal aovemmeate: and (Iv) tboae regardle.. of the .Ize of the srantee. To prindplel for detennJnJDa coati of' 1I0nprofit organlzationa which are tbe extent pollible. the Circular pnta. contractl and other asreementl exduded from coyerlp of this Qrcular provides limpUfied method! ~or amaDer with lIonprofit oflmlzationa.lt doe. not ia accordance wi~rasraph 5 below. patees. apply to coUelfl and tmiYenltlet which . b. "PriOl'appro "meant aecuring Comment One respondent .ald the are covered by CIrcular A-41: State. the awarding -sency', perm!ssion in requirements of the Cost Accounting locaL and federallY:::'lndJan advance to Incur co.t fOf thOle Jtenll Standarda Board .bould be applied to ,tribal sovemmentl ~iU are covered tMt are de.ignated II requirin&prior cover conltactl 'With nonprofit b~ CItcular 7..... ~r hospita". The approval by the Circular. Generally thI. organizatiOftl. pnn.ciplet are de.tped,to provide ~t penni..ion _ill be in writing. Where an RespotlH. It I. unlikely that the type the Federal Govemment bear Ita fear Item of co.t requiring prior approval" 01 sraateea covered by tbII Circular ' .here or co.tI except where rutricted or lpecifiecl in the bud8et of a award. would. have conuactllarp enough to be proJ1lblted by law. The prlncfpl.. do not approval of the budset consUtutea COY~ by the CASliln the event that attempt to prescribe the extent of co.t approval of that co.L _ tbey do. however, the reptations of the .b'rir28 or matchina on aranta. contract., S. Exclusion O/IDIM nonpropt CASB would apply. ' ' or other agreementa. However, such co.t organizatiON. Som.e no:r:!it CommenL One respondent ..id the .baring or matc:bJna .hall not be oraanizaUona. becau.e their.lu and allocation of Indirect coat to donated ~ccompU.bed ~ ubltrary nature of oPerations. caa be considered aervic:e. would pose a tremendoUl . limitations OIl individual co.t element. to be aimilat to commercfal CD:lcet'ftl for , dift&Culty to the oqanization. The ' , by Federal qencle.. Proviaion for profit purpose of applicabillty of coat orsanlzatlon relie. on a corp. of or other increment above co.t it outside principle.. Such nonprofit organiutiozu approximately a.ooo committee members the ICOpe of thl. Circular. .hall operate under Federal co.t to carry out obligation. In responae to ' 2. SuperSe..ion, Thl. Cfrcutar principle. applicable to commercial Government requests. Thenrb no &upenedes co.t princlples issued by concerns. ^ U..ting of the.e Circular A-1ZZ Page 3 ~ - < . . i Ii DS fa c:oata1ned io L Applicable CNditl lata, the public .t Ju&e. and the organ Z8 0 . . .. Ach,uce =d4tn~ ...;oYetlUDeDt. Auachmetlt C. OCher ~aa1z:a(jODS DUI)' . d. SipifWnt crm.tioM ~ the be added ~ ~ to tiaIe. B. Direct eo.ea atabllahed pracdca or ilk orIWzatioa ~ I e. RtnpaMibiliti., Aaeadee c. Indited eo.ea wbJda..., .,.tUiably encnoaee dM awvd re.~naibte for adminiatertnc programI . COle.. ~ . Ihat iilvolve award. 10 aoaprofit D. AJlocatJOA 0I1Dc:lired eo... and 4. AlJooolW ..III. . AniadOna ehaJ11mp1ement the Detena.iA&tJoo 01 fAdlted Colt Ratea .. A COlt II aUoc:.bIe to e,.ttic:uIu COlt ~::..."lona of the. CIn:vJat. Upon 1. Ceaa.1 ob~...1IIdt .. a ..... protect. MI'rfca. or ...:ciuuaL lmp'tnDlntlq futtvctiod .ball z. Simplified aUocatlon method 8thet ~, III aa:ordanc.-e- with &be ra.li\'e. a::' ~ ..hed to the 0fDce of s. ~ultlple aUocatioD baN method beDefJflj ncawd. A COlt II .aoc.bIe ro. g-c cl,U'D .baD 4. Direct aIIocatiotl method eo,cmtDaIt award If .. II trNled M~ ad szr-.. Aaendee · _ a. SpedallDdirlct COlt ",'a COD&IateDdrwitfa other..... faaIftecI lor the d~te a Ba1toD to aerve u ..... paIpOIM III Jib arc...taDCee ad If It: the _pnq npreteIlteUw.. mI<<en E. Nqoti&tIoG ad Apptcm.I ollDdinc:t Colt (1) ......... ~ for the award. . relatini to the bDp1emeatatioD of tbia Ratn (ZI Beaeata boda dae awud" odaer wort QrcuIar. The.... ad tlda of.neb - 1. DefiDiCioDS . . aad Cae be diItidMatlId .......We taUft Ihal1 be t'amllbed to the J. Nqotiatioaa ad apptOYaI of...... - .,.~ to Cbt beDe&ta NCeiwd. ~--:;u._._ ad Budget (CitcWar No. A-12%J (S) fa DKIII11J to the...O operatioca of . J . ---e...--' of'u the oqUl.lzaIioa. althouP a direct . ~thin 30 da,. of the date WI' -. AtUldJ!:III&Dt A telatklalhlp to lID)' puticWar COlt objecUYe Circular. " pia CUDOt be a&owD. 1.~ TIle pMdplee and Ga.raI PrtDcl . b. Attr COlt allocltble to a pertIcular....rd related policy Buldes are let forth fa the A. /Josie CD1vkJen:ItktM. or olber COlt obfectiw ander chae priadpIa foUowing Attachment.: L ~!1ii1n tJ/ IDIiII t:l>>1IL 'J'1Ie total COlt -y DOC be ~ to oaber Federal.warda to AttacbmeDt ~ PriDdptea 01 an awtnl .. the.. of the alJowable 0YCftl0IM 6IIId.iac defic:icadn.or to eYOicI Attac:luaat &-Selected ItemI 01 Colt clUed aDd aJJocable tDdfnct com.... ._ 1eI~ IIDpoNd by law or by dM tcnDc "'~""---'=' -, oflbeawud. Attacbmeat ..,.....__.........t appUcable credfta. a.~' IW tadillL ~aaJzalfODa Not Subject to 1'JWl L FtIt::ttm ttff<<:tinl olIDttobi/ily D/ t:l>>lII. ..:. appJIc:able credfea Jelen to CircuIu To be allowable ~dcr a award. CIOICa ID1IIt - .thOIe ncefa*, orrecfuctioa of ~ .. BiNI-- fDl'~ 1'be;Office meet the IoUowfAa ItfteraI aftafa: . wbidl open.. tooft'Ht or red.. aputee of~t aDd ~mI' ~t .. Be ruaoaable lor.. ~ of~ ltema daac an allocable to."'" u"dinct exceptloallO the~.. of thii aWtfa; ucI be aJIoc:a~1a daeteco CIder ~ or IDdJred COICa.1)picaI-~~ of nda CfrCuler whea periDbsible aDder If: = 10 lilnltatloaa oi> txdvIlonI .,.u.c:tioaI arc pard&ae ell.........., leba... ex1t~ law.~.mthe1ntere.t of MI rotth~e~..or"""aWud ~=:c.-===: of .~ JDaXfmum amtormfty, a. to t)'pH. Of amoa.t of ClOIt....... cwerparmeaea or atoaeOlII c:fwta. ':'0 Che ex.cepUoal wID be permltted.oaJ)' in Co Be ....Ieat willa poIidet ~ extent... eadI aedI.. ac:cnaInc or ftlCei\'ed . . hfahJY 1IInIftal drc:amataDcet. proced~Rn-:;:S:" lIIdIormIr to both .. by dMt ......UoA relate to allowable COlt ) 8. EfltICdW Da16. The proYSIfont.or fedetall, ad other ~ of 1M they...... be aedited to dae eo.eu~ . this arcuJar are eJfectift Immediafely. cq~tioa. either u . COlt l'edac:tioll or caiIa tdmd u ImplemDtatior shaD be pbuecl m by d. - aCQOCded coaalatent ereatment. appropriate. . fncorporatfJII else proYIIioat fato Dew . .._Be de'~ ill ~ wUb b.1II tome m.tuca. she ....ea received awards mlde after the Itert of the 1CDf.e,.JJyN' L~~~ac:c:oIlftUna principia.. I form dae FedetaI ~ to 60uce , fIacaI' Fi' ot - U1dudeu a. a COlt or..ect to mee cqanfutioulactMtia or eerric:e operaUoaa ~anfzalf~~ ~ or coat.fwiaa Or IDalcfWac raq4il~ea of U7 .bouJd be ereated.. applicable cftctie.. e~ _W-.nNI we ~ ee may other rederan, IiDuced ptOIfIID" eldlu she SpedtacaD" Che CODCep1 ofDettinlIUda be applied If u ~aNUtioD ud the. . c:urrml or. prior period. credit Iteraa a..bm related .~luna cognfza~ Federal qeDcr apee. Earlier .. Be acSequtely documealed. . thoUld.be appUcd by lite Cll'pQizi.IoD m implement.Clem. or a cHle, fa '. S. /Ua$onoble COIIIL A COlt Ie tea.~ble de.ermlnr the ...,n or .1JlOIIft1l1o be implementation of indi~uaI provi.lon. tl. in lea nat..... or amoaat.lt don DOt exceed orptdzatioD in deteniunina the ...ta or . fa allO permltted by =ataal agreement _thai wilJc:h_ WOt!IcI be Incumdby . pruden. . lUMoanll to be wqed to FederaI.warda between MIi orsanizatioll ud the perIOIl1lftc:ler the dtcwDItancn preYadlAl a~ for .enic:ft reacfered wheDewr the facWtf" , cognizaftt Federal a . the time the dec:ialoll w.. .ade to mew the or olber ruoun:es ued iIa proYIdiac .uch 10.' t. .. F~ormation COtts.11le queatkla or the I'UlOftab~ or eervicn have been fananced dlrectl)', iA . ~~tn~.. be ' .peeitlC cost. ..... be ec:n.rtitdIed with ",JWIe or Ie pan. by Federal ruad.. concemmg lb.. ~lar may. pllrtiClllar care In connection with . afe) For Met covcrm, proal" tncOCM Clblained by contading the rU1lnaal Ol'J.nizatfons or Hpef8te divilloM 1haeof' (i.e..I"'"' mcome eamfld from federall)' Management Brauch. Budiel Review ",hlch reaive the prepoftderance of their .upported acUvUie.) tee AUadunent D of Divi.ioD. Oftice of Mausement and .upport &om .warda 1M. by Federal OMR Circular A-11o. . BudgeL W..hinglOD. D.C. ~' qencie.. In detemJaffta the tea.onablmet. I. "eI'.once GIld understDndinp. Under any telephone (202) 395-4173. of a liven co.\. CGnIideraUOft .haD be ctven liveft awud Ihe realOMblena. and ..... 1: Wc.Ia.trN. Jt. to: . allocabilit)' of certain Iran. of COIl. IN, be ... .. WhetMr the cost Ie or. t)'pe ~ difrlCult to ~1enDtne. Tbl. partiallan, true io l1,tP.CtoI'. ncopfud a. on:Unat)' ud MClHuy for the c:oMeC:tioft with orsfzatiooa that receive a (Circular No. A-122J operatloa of the 0f'I.fti.ta1loD or the . prepollderuca of their.upport froaa Fede,,,l c:IuDal performaDCe or the award. agendn.1n order 10 aYOfd .ubaequent. Atta I A . b. The ....tram.. or requimDeDealmpoted eli..11owoce or di.,te ....MeI 011 GnnaI PriDcipIee . by .uch factOtlJ a. ~)' accepted .oucd unrealOftableDe.. or DOIIIUocabilily.lt .. 7l bk -' Omtml$ . buaineu practk:et. U'll'id Ieftath "-rs.lnfq. often clearable to I'eelt I written Isreemelll C7 "J . Federal.cd Seate IaWl .nd reraJation&. aDd willi the COIftiunl or award"" .gency Ir1 A. B&s~ Coaaiderationl tenu ami CODdJUOftI of the award. .dvance of 1M fncurnnce of lpeCiaJ or 1. Compo.ition oItotaJ COla Co Whether the ind1v1dua.. concemed acted IInUNI COlttl. The abtence of an Idv.nu 1. F.eton afledin8 aUowability 01 COlt. with prudence Ia the drcumItaDces. qJft1Mftt on an)' .lement of COlt will not. m s. Re.'onabla COltts ccnaidering their I'eIpOtUlbillties 10 the Itlelf. afleet the rellOll.blenn. or 4. Allocable COlts o'ilftiulioD. lea memben. employea. ad aUocabiUt)' of th.t alemeat. :Irrular A-122 Page 4 t nifl/t(:i Out. - fa like cfraunatance.. ua ~ .Nipad fIi .m.r. .....tJOa ... oat, 0Qc IUlor 1. OINlCt t'CIIIlS .. tholle aba. Cltllbe .. award .a I direct ,co<<. . func:tiOll ~ ..... a _bet of identified apec::iIlaU, wUh a pmfQdu fi,W :. BeceUH of the dlVeru ch.racter:wUca indMdul pcvfectl<< KdYi..... ... may be cost obiec:tiw: Le... ~ .ward. Ind .cco~tinc Jl!1IctiCft of ftOIlFOlit, ,ued..... eM .......Fedanl awada to lUl ,~ profect. Mrrice.<< odMr dIrttC:t Ictlvit)' of a ors1rdutioRl. it Ii not potlfbll to apedCr thl oraanL&aUOft II ........, aWL ' -, Ol'llDh.ltioG. Howner, . c:o.t ma, DOt be ~. of COlt wbJdl ma,be claaaUMd a. b. both 1M clfNct coall Utt the fDdWc:t ...!peel to a aWlI'd I' . dInc:t c:o.t iC aa, fAdired co.t fa aU .ftu.tlon. ffownw. typk:aI co.ta IhaU .- capital apead1twn aal! other COlt IN::urted f<< .... HIM purpote.fa CJL&~t" 01 fAdirect ~t Cot ~ aonpeofit an.Jlowable ooau. Haw,..._ UMUowable 'like drouanatllWC. ...Ileca .lloCated to all OtI.mutioM ml,lnchd. dflpl'lClatlola << co... wIUda '.... acUvi....1IWtt be .wad II ...Iacbnct COIL Coot kI_arted ...aUoWlftCII. on build.. ud ~Uipmenc.' fr&ducMd 1ft tba dInc:t COIta tIDCItr .... lpIdf"acaU, wida......,. dInta cait of.. .... ~f' of ~ ucllDlWltaIaUII coadUioaa ~ "!I ,.,..,... ILl. abcmt. awarda .DCfare.............. cIIrecd7 fadJitlea. ud tlCIadnIItnttoa ~ co:rM,dUtribIaUoa....., be loCal direct thento.CoIt Ideatifiad ~trida.... aenenJ ~ audl.. die M.Iariee &Del COtIl (~capIf.eI a:peadl--... . - fiiW COlt objecdfts of.... .......ao. .,. opeuea of CQQIttve ofticm. penoanal other dlltortJftc ...... auda ...... direct COlli 01... c:o.t obfec:tIWlt ad .r. admiaiatratioa. ad .CC'OUDtia(. ..~ Of........ dInc:t...... DOt 10 be ."""10 oW awarda cflr!tcdr Of D. AIIoct:ttioa of lntIirer::I cQ., cttd aracl...... Of odMr.... wWdI.......fa.. lSlditec:tJy. . Detl!t'lIUitotion 0/ /ndirct ec.t &In. -::U~~.:n- dIItriINticMa bue :. Nt, d1rfIct c:oIl or. adaor UIOIIId ..,. · -- parIidpaIlt IUpOl't be trelted .. .. fIldirec:t COllt oror NUOU of 1. ~llIU'fJL COI" u cWiaeClla........ a ol pracdc:aUty wheft dae accouIlt treatment 'Of .. ~ere . ~t orraa1utioft "-;. cmly, :AUlc::b.meal B. .uda coat II CCIGlIittaady.ppIIecI to aU filW . ODe InljOt function. or where III ita InllOt d. Except wheN. tpedaJ tate(l) II COlt oblecUwea. ' functioN benefit from it.1ndiract co... to requirecllft ac:conlucle .UIl ~~ D.S - S. The co.. ofcirtafa .ctI'ritI.. are tIOt .pproximatel, the tame cIepee. the below. 1M Inditact COlt tale cIeftIoped WIda' aDowable .. c:Jsarrn to Fedara1awant. (.... allocaUoo o! indirect COIta aDd die, the above priDdplea .. applicable 10 aU for example. fuacI raIIfD& COlItIIft ........ COlDputatfoa of ...Iadirec:t COlt tate ai' be awarda at the cqa1utioa.lf . .,... " %t of Attac;luMld B). Hownv.ewo IboaP - ac:compliahed thtouah .lmpliC'&ed allocadoa tale(.J II ftqaiNcI, epptOpriatelllOdi&caUoa. theM coitI are aaDow.W. I. pcpollet of 1lt'OCed- u deKribed . paqrapb J . ehalI be ... ......10 dewlap daelpedal coaaput\q~toFadtnJawuda.tbq below. ,..Ie(IJ. ' aoaethtt.... ..... M ....1Id .. dfNct COlI tar b. WMn .. cqaW:aUoa ... ...... ..for t Mu/tipk o&catloR ho.lltlIIAod. purpoaet of ~ IadIrecI COIItae.. fuac:trou wldcla beadlt from 'tallldlnct COItlI .. WII.w .. ocpaiutloa'. iDdiract o::MIta IDlIbe aJloca.... their..... of the JA ,,~ cfeariea. 'alJocatloe 0I1DcUrec;t , bee(it'ta ..for t.c:tIoaa fa YIl7llll deaNa. oralJdutioa'.1aIIIrict COIta tlf.f&eJ..praMDt c:o.tIalY requite the .~uI.tit?a of Mdt avda cotta aIaaIIM ecl:Ir:.IIl...... ......,.,.te .ctlvities whIda (I) tDdacIe die MImet 01 coa..lIlto HPIfllte COlt F.O'JPinP ~'... COlt ~ Eada"""" aIaalllfMa be ~ (%I 0CCIlqIJ ipactt. lad (3) betieftt are aUocated IDdJ,Yid~ to bae&tiaI . .lIocated a.diWlulli" bestefittac IwsctIoaa ftocis .... orpafIadoa'.1adJcect coet&. func:tIoaa bJ ..... Of. bue wtdda beat by ..... of a ..... wWda beet ....... die 4. n. coet. of ec;tI'ritIn paf...... 7 IfteUC'II tbe relattN depee of,baefSt. n. relative beMliu. prfmariIr u a ..... ......... cBeDta. or Ind1tect COlItI aUoc:atad to -eadl fwsc:tIoa are b.11aa pouplap..... be elttabllaW 10 .. .... pMraI ~wtaeD tfpU!lCUlt'" ' thea.~ to IadiYidtlll..Uda - 10 penalt die aDocatfoo of eada....... _ . IMCnIItf to........ISoo'.......... . otber.cavtUIIIDchaded, ..thet 4taac:doa ~ . die ~ of....... pcwIdad to tbe.... . be trutad .. dItec:t COIta whee or.. aeau of .. bIlnct COlt ..M(.J. fuDetIou. &KIa.........lIboaIcI CIOfUCI&ute a J .Dowable _ be aDocated an equitable , Co '[be cletarmfaatioa of what ooaatftafel.. - poOl of....... dial.,. of..... ~.... ' - e&an of IadiNc:t CICIIta. Some lalapl.'-of oraudaUoa....for ~ wtII dapimd 011 t.c.. ol tM fadioM Ibq baefit_fa theM tJpeI of Idtfttiee IDdude: ,.. parpoN fa bttq: 1M .". 01 ~ It teral,I of tile aUociu.. .... wIaic:fa beat .. Mailltealftcl of -=bInhIp roUt. - rea4erato the pobUc:.1ta dieota. aDd hi me.... tile nJattN beedlta pnMdcI to ucla nbac:rlptiou. pIIIIIk:atioaI. lad _tad DIeIIIIben: _ tbe ..oaaa of effod It dewCII 'lunc:tIoa. n..... of .,.,... ~ function&. -' . to IUda lIdhttlel u facI...... paWJc thoaIcI be .......... pm:tical...... takiac b. Ptmd1a,..... ad Issformatlolilo WonutlOll aM membcnhfp ac:tIridea. falo ~.. aM..CIriaIitr of Cbe lnemben.IepJatfw . aclmfDHtrattN d. Spedficmatbodt -rOC' alJocatiftC iDdlNct .ftIOCIII..lIwoI.... ad .... ..,... of pNCiaIoa bodiea. or aM pabIic. coata ud com~ IadirIct COlt..... aIoat detlred. Co ProcDodoa. ~ ud other farmt or with .. CODd1Uoa1 andel' wfaIda'eac:fa.ethod Co Actwal crxad(tioalI.-t be....1ato publlc.....tioa&. . aIaoald be .... en dMt:::ribtcl. puqrapba I ac:coat fa ......... the bate to be ued in cL Meetir&p cad coafereacel except 60M tbroach . below.' . , ' alJocatiftl tbe..... fa ucla ~ to held to CODdoct De poaraI admmIatratSoa of .. 1'ba baa pIdocIlor.... aDocatioll of, beftefitiltt Mac:tioaa. Wbea .. aUocati8a QID the cqamutloa. IIl.c:Unct coatIla .... period ill wtUda aada be IIUlda br IMipIDaat 01. COlt"""" J. MalAteuc:ne. pcotec:tioa. .ad bmtItmeDt co.ta .,.1DC:amd aad .cx:uauteel lot iIintc:tI, to aM ~ beaefttecl. .. - or.pedaI fundi_ ued ill opaatSoa of tbe - .UocaUoA twO worK pad~ 1ft daa',mod. .ttoc:aUOIl abaD... made ... thet-. Of'IanWIttoa. ,The ba.. period DOC'IDalI1I1louW coUIdd. Whea the npeun ill. pVupiac are &GIlt r. Ad.aUrsIItratba of polIp beDeft.. Oft with the orpAIzatioa'. 6acaJ par. but Ia .., aeneralla ....... .. aUoc:atioa IhouI4 be behelf of membaa 01 ~.. btduclkla Ute emt., .un be 10 NIected II to ."oid made tIaroqIa .. ... ol. ..a.ctetl bu. .nd hoIpta.lllslaruce. amsuitr <<nttraDant iaeqtddet fa .... al1oc:aticll 01 tbe o::MIta. _hicla prodv.cea _ul.. thet .... equitable 10 plana. &andaI aIcL ate. :. SilltphTJtK/ tIll<<x1titM 1M#hod.. ' . both .... Coti..-...clt .ad 1M orp"'''''tioL Ia C IndirlK:t CDa. .. Wh.re ... orpAiutioo'e ..jot II&DctIClIlIl tenereL 1ft, ClOIt --- or COlt ....ted ._ beaellt from 'Ia iDdltect coN 10 lact<< auodated with aM cquizaliM'. 1. Indirect colli.... chON that .... .... .pproxJma..t, the .... dqre. .. alJocaUoa work II potaaIIaJly.daptable for 11M .. .. Jncumd for commoa or joint obJac:tlYa .od of lndfnc:t oosta.., be eccomptlAed b7 (Q .noc:ation beM pro'rided (I) It cu radii, be Clnnot be Nadil1. JdentUied with. p.vtlcuIar MfMl'ltiftI tba cqtNzaUoo',total,COI" for expreued ill.... of doUara or odMr fi",,1 COlt oblect\ve. DiNct COlt or aWlicw the be.. period .. aith<< dirtd <<Iadired. quantitati.. _1UIft (total ditect COIta. .moun.. ma, be tre.ted .. indirect COlItI .,.ad (il) cItrit:ba d:w total aJIow.bte 1Sldirec:t direct ...Ia,. ud W1IIf11. .taIllaowt applittd. under the coaditionl deacribed fa puqraph', coa.. (oet or .ppUcabta c:redf"J by.. equ.re feet ....... bows.,......1nalber of B..z. above. Alter cIirec:t COIta ..... beeD , eqi.dtabla diatributioza beM. Tbt....wt or thII dOC'WDflfttl proc:eNIcI. popWat.loa Nl'\'td. ... detennlMd .ad IIIlped dIrecd, 10 .warda prOc:eee II a Iadiract COlt rail whidlla.... the like. ucI (Ii) It II COIUIClIl .. .. or other work .. appropriate. bldinJc:t COlla to diatribute Iadirec:t CIOItI to lDdiYidul beneGUn( fuDctioaa durialc the ba.. period. .re thOiN! muUll:q to be IUocated to awarda. The.... ahould'be expNINd .. the d. Except wMre . apedal illIdirect CIOIt benefitina coat obfect\'/'II. A COlt.., DOt be JMl"OlIft"" wlUdl dw total'lDOaIlt of rate{l. II I"IqIIIred ... accatduca wida. aUocated to.. aWVll .. ..l.aditltd o::MIt If .lIowlbLr 1SIdnc:t coN bMra to the bue p.regrapb D.s. below, &Mlepltall ~ any other cost lm:utNd IOC' tba NJDlt purpaH. 'Nlec:ted. nw lMtW Nca.ld akla be UMd ollDd.i.r.ct __ aUoc:ated to eec:It ..jot _..... ...._.......... ..... .....J-__ P abe 5 ~ l , Cw:IcdoD thaD be agreg.led and treated' ..eeL or'any combination thereof. When ....jot lona-4ftm.hift Its the dol1a: volume c;.otn.IftOD pool lor that fwlcUoa. 11M COlIII patticula.r Mpent 01 work Ja pedcmzsed i.Il G. 1M Federalawarda to the OIItU1.iz.1t1oA. An 1M ~ pool PaU tileD be dIItributad to ltIIYfroameDt wbic;h appean SO aencnte . conc:emed Federal qenda _aUt.. pven oM II\dIWliaalawara Iftduded III that fuDcCioa by , &lpi.ficaAdr delerent &eve! of 1&Ictre:t coata. . oppO.rluftitr to paltlc:ipate Ia the aecod.U~ uae ole tfnrJe Ja&ec:t COlt ..te. proviIlona ahould be made few alepUllte proceu. but after e rate bu been apoeed .. 11M di:...rilIutfoa bue Medin computfttc indirect coat pool appUc:able to nda woric. upon it wiJ1 be accepted br all Feder" . dte iDdi.red COlt .... for uch fuAc:tioa I118Y 1'be lNpa..te Indinid coat pool aboaJd be apndd. Wba a Federal qeoc:y us rea.on bo: lotal dineS COlla (exdadiq capital developed dunn, the CO\U'M of eM ..,war CO bellew that tpedaI operatffta factorS . "'_!"Indican:. aAd odw cU.cottinC IteIU .ucIa eJJoc:atJOQ proce... and the aepantelndinCt atrecdq'ta.warda DeClIIIitete apeci.l1 __ IfIllfcw aut."ntNdt aad "'biN'u.J. dirad C'lIMf rata reaulUnc thenfrom aIloafd be ued indince COlt rates fa ec:corduce with ..Caria and wacet. or ocher ... wlaic:h - pnmded fl.. deterJDlaed that (II the ..e. swecrapla D.lebcmr. it wilL prior to the time rnuIU fa .. .eal* cU.lribuUoa. n. . cI1ft'el"I.lip.Iftcutlr from thae wbIda would, the rat.. .... aeaoUatad. DOCUr tile cop1zut dialribuUoo baR thaI pa.en~.1de "ve beeA obtalDed UDCler pcrqnpla D.2. S. qeaq. puUc:.:fpUC npport COlla .. ill . and \I aboY.. ad (0) the .... 01 wort to _ b. A ooaproftl orpaIatloD whIda hac DOt ,..,..,... . AUac:IImat B. Ass fadiftc:t CllMI .wds -the rate woaJd appl7 .. ..teria1. prevIouaIJ atab&bed ... CDd1red CllMt rate rete I!IouJd be ~ fir .ach .,.,.Ic ,. . willa a Federal qeJICf eJaaII alter the Wirect cod pool deftJOped. n. rate ill ..dt E. Nf/gotJIlI1Otl ond AppmroJ of lMIiret:t&M1 ...Dizatioft Ie adYiHd daat .. award wdl be CJM should be _led .. .. pcrceafqe Rotn. ..de ud.1a DO ewcd. ..... tJaaa datee w"Jlcb- the ..... 01 dwt putk:uIar tDdfred 1. DermililJN.ltA 1IHd In tJa!a HCtfoa. Sae -=ths afeer the dtdift cia.. 01 tile awud. COil pool" 01.. diftibgUoll buc Idedlicd IoUowiDc tama have the IIWf"'" MC ~ Co OrsaaiuUou "'t ..... pmtfously - widl that pooI.. below: atabJiibed Iaditect COlt ntes mUllt .ubIDft a \I. Direct o/kt:oli..1IIIItIlto4. . .. "'Coanfullt ~ meaDS the Federal DeW fDdirect CllMt propoul to the copfzant .. Some OOIiptofit oralAfulillu. Iml all qeac:y reapouJblc for ueotiatiq aM . qency witbill.1a IIIOad&8 after die doae or coall al di.rect COIta upect aaenI .' approvfna1ftdirect COlIt rates for . eonprofit .ach fitcaJ year. adm&:ailtr&tioa and .... apaIIU. 11aeH . CltIaaiuCioll 011 Wha1I 01 aD FecIeraJ cL AopredeCamfDed .... .., be llesotiated oqaalAUou;aeiaDJ .......1beIr CllMU qe!ldea. . lor UN OIl awuda.... theN Ie reaoaable lato tbnt betic ca~ (Q CeftenI b. "'PNdetermfned ..te-IDe.... fDdirect aliunaca. baaed Oa put uperieftce and aclm.laJatntiolt ad caeNJ apeaaa. (OJ coat...te. appJic:able CO a epec:Uied ClIn'eftt or "liable profecdoo of the oqaaiutioA.. CllMCa. f\aDCI nlliq. ucI (WI ok direct faDctIoDt ,... period. ....u, the orpDIIatiosl'. &teal . that ~ .... .. Dot mw, to exceed a ..te (hIdvcfiac pcofeda Mri'onMd ~ F~ J'MI'. n. ..ee ..haaed 011... eadmaCe 01 tJae baaed OD the OIIaaiuCioa', actual cotta. awa.rd.t).1oIDt com. iuda .. depreda~ COIta to be Iacumd dmfn8 dwt period. A' . _ .. Fixed_ raIN -, be aqotialed WfteN rental COle.. ope:radoD ucIl11lfDtawIcI of predeteradaecI rata fa aot aabject to predetennlzled ..t.. .... Me coaeIcIered fadlfUet. eelepllaae cxpeaae&. ad tile like. . adiuat:meftt. apjnopriale. A Axed ..te. bowever. NaIl JlGt are prorated 1DdivIIualI, .. dited ClIMe to Co "'Fiuct rate" IMaM a CDd1red COle .... be Deaotiated If (i) all ar a .u.talllial porUoa each citesorY _10 .ada_anI. or other 'which haa the Nme duI..ceeriatica a. a oldie oquizatloD., aWlU'da are apectedlo activity aiac e baMIDOIt appiroprIate 10 the JII'edetermIDed rate. ~ tba... difference ex~ before .. curr-loI ward .djutmeft. pu1icuI.r COlt beiaa prorated. -. . .between the utfIaated coata ad the actual em be IUde: (If) the IIlIx 0( Govemment and b. ThiI method II acceptable ~ Mdt COlla Of 1M paiod t:oftI'ecI bJ the rate It ~ work .t the oraaal:uUoa Ie . Joint _II proraled'" a ~R wbIda camed forw.rd u u adfuatllltea(CO.... ..tc too en:aUc to ptrIDlt.. .tabJe ClIn'J" cccun"" 1IIeUCInIIlI.... beadte ,...meted to compatadoD ola ,ubMqaeDt period. forward adjuetmeat; or (WI the ocami&adoa.. e.ch ewud or ok ec:dYftJ, ~ baMlI.... . ~ "'f'bW rate"JDHftI u Iadirict COlt rete operatJoaa BUCIu.. ...lr~ &om rear to be at4lbHtW ill ac:ccinlaace .clla moaabla ~bIe to a epedfied pat period wfdc:Il.. rear. . aiteria. _ be npportecI br carreot dat&. bated oa the aChld coita Of the period. A I. Pnmaioaal ad &aI rata tha11 be Tbia 1IleIbod Ia ccmpetlble willa the &nar..ta fa DOt "'bled to adjustmeat. aegotialed wIaete DdtJaer pndclemWaed D<< StadudI 01 Acc:aut1dq ad rlllUdal . . .. "1'ivviafoaal ralc- ar bWina retelllUDl a fixed rates are .ppropria~ . Reportfq far VoIanta:)' HeaJdl ucI Well... tempcir'ary iftdfred COlt rate 8ppUcable to a I: The ~ulta Ot eaCh DeIOtiation shan-be OrsIftfAUou lulled fofAlIr bribe Natloaal lpedfIed period wbfch.. ued Cor fuadift8. lormalized 1ft. wriltal qreemeat betweeD He.hh CouDc:IL JDc..1be NaUoaal Auembly IDIerim reimbanemeac. ucI reporIIfta IDdirect the c:opfzat qeDCJ aad the acmproGt olVoJatary HeaJlIa and Sodal Wellare COlla OIl.warda peDdiIJe the ..tabli.blHftt 01 OI'I.niution. ~ copizanl qeacr than OrIlftfAtiou. and the Uidled Wa, of a .... for tJae period.' . d;ialribute copfa of the all'ftSHDl to .U Americ:.t. I. '1Adirect c:oet prOpoiar meanl the concerned F.deral qeacia. Co Uodcr dUe method. ~ COIta CODIId doc:umeD.taUoa prepared by .. oralJdzatioa ~ If a diapute ariHt Ia . aqotialJoD of aa edu.iwiy of pneraJ admiJdalralioa aDd -eo .ubecutiate Ita claim for the tadirect COlt rate betweea tbe coaniunt aenenI expeaaea.1D aU other mpectI. the reimbunemue or iadirect COlI'" Thi. aaenq and the aoaproftl oraaaiutfcll. the oqUliutioll.. fadJrect coat ..lea. Illal be propoaaJ Prorid.. die b.... far the review di.pute IbaUbe resolved ID ac::c:orda.z:ce with computed ID the ume IlnaMer al that' .nd nesotiaUoa Ie.d!na to the HtabUlhment the .p~.la procedurel or lIae COgniullt dflCribed la parasrsph D..% ,.bove. oI.n ora.DiuUon'.lndirect COlt rate. a,eney. S. Special indirect COIIrota.1D lOlDe .. "Coal objectiva" IDeM' a fuDc:tion. t. To the extent th.t problema are laltaJal. '1iDS1e IDditect COlt ..ta for aU OfllanlzatScmaJ tubdivltlOll. contract. Irat. or encountered amona the F.deral .pnc:ie. It& ac:tivfd.. or an ot'I....tion or lor each ..for ocher work we lor whidt COlt data are connectioa with lIae aqoU.tion aDd approval func:tiCltl of 1M Ol1aNutioa a, DOt be de.ired aDd for which proviIIOJI II lIlade to proce... the Ofrace or Manqement and appropriate. lirIce it would DOt tal:e mto accumulate and lIlea.ure die COIl of "Budgel wiD lead auiacance a. required 10 aexeune thoIe'dinemat factorl whidl.., procea.... projeCt.. Jobt and capitalized , reaolva nc:h problema ia e timet, muner. .ubttantiaU, aft'ect the mdIrec:t COIta projecta. - ICirc:uIar No. .\-12%1 .ppli<:able CO. puticuIar teplftl 01 work. 2. N.l1al1(J1f tltId appmwzl il! lOt,.. A chmaot B For dU. paIpOH. a patticuIu NIIHflI of .. UNen diffe.mae arnnpmala .... Ita worlt. For tb1a puIllOH. a pat1ic:ulat.....t qreed to by the aPAd.. ~ the SeJ.ctecl..... 01 Colt 01 work may be th.t pedon:aed aDder al1nale Pederal qenqr willa the I.rae.t doU.r value LJ. .w.rd or it may c=aUt of wort WK!et a of ewudf willa u oraufuUOQ wiD be Tau ft o!Coltanu pooup ot.w.rda performed m. comIIlOtl deafcnaled a. th. COIftizanI qcnc::y forth. 1. Advmt.irlc COIta envlro4'4eDt. Lhe I.Clore.., iDc:JUde the aqotiaUoa aDd approval of i.IldJm:t ~t %. Bad debt. physical JocatiOD oftJa. wort. tJae lewd of ..t.. and. wiwt..IIeCftMry, other ...tes .ach S. Bid and propoeal-COIta (1'lIIet'Yed) adminialrative .upport required. the ulaN of .. frinte benelU and computer charwe-oul 4. Bondina COlli the I.cilities or order ftlOW'Cel employed. the ...teL Onc;a an a,eney ia .ulptd coan1zance 5. Communication CllMt. . acientific di.ciplina or tedusicaJ.1dUa . lor. particular IlOftprofie Ol'I.nfzatlon, the 6. Colll~tuatioft for penoneJ service. Involved. lIa. orrl11lzaDouJ ~Ia auiplnenl wW Dol be dwlaed lIftJeu lIaere 7. Continpney pt'OViatOM . .' :1rc:ular A-122 I' :'t-:\' h .. - ..._- - .. . .. -- . . . . - . . . . l. Colltnllvtfon. . , . 'n p..ra"..'" 40; (111,tIM pwc:.,.m...t 01 flOOtla ....""'tlM. _....._,koft Itw -..t....-.... . .. Deptetiatlon.nd aM .110W8ftCe1 .nd .emcel: (lill tM dl'poMl of tarplue ~"'UlIlllC,,1I4 __ -dla. . CJ 10. Don.ttiona m.teri.l. .equff'e41D ~ perl'ormance ollh4t . couIdend ,.._bIe to aM .......t...... i. I. 11. EmplO)'H 1DOrtte. he.ldl.ocI welfant aw,1'd neept Whd Of'I'nWatlona .... ccmparable to ~t paid for .lmiJ... work.ft . ~-'- ' coati and c:redltl relmbilt'led for diapoulut . ~ the labor marketlla wblda tIa. oq.Diuflna U. Enlertalftlnellt c::oat. .mounl'ft Ilccord.nc:e with Attac:hmellt If of compet" fOC' eM Icisid 01 enaployea ift"'wd.; 13. EqwiplllCftl.ocI other capital expe1IdUurea OM! On::ulu A-UO: or {lvl tpedlic . d. $p<<:JaJ tx1tUidtN'OtitNtII in ftturninilll 14. Finn and peNtlttea .' . fequlrement. of the .ward. tzllowtz6ilitT. CerIaIA ccmdJtioaI req1dre 1!i. Frinae IJdIOftll 1. Bod tkbu. Bad debta. tndudfna foiHt .pedaI c:oniddmItJoa aadfOlafble limitationt 11. Idle 1.d1iliet an41d1e capadt, (whether 'cWalClf ..timated)...... froa in detet'ftl.... ClOI...... FedcnI.werda t7.ladependent raecrda aDd dnelopnsellt UIICOUectible .CCOtdIta an4 otbtt de.... ' where 'I!lOUIlte or ~ of c:oeapenUlioca (ft:lICtYed) reuted cODctioa COttI. aM .....ted lea" appear.......b AmonI aud& coaditioaa ta.1#nraJIce aocIladeranlfic:ItloIl co.t.. .... aaDow.ble. '....IM folJowiaF ' ' ,tt.lnterett. fund rail"'" aM laftltmast 3. Bidottd ~ com. (1'CHf'ftdJ (1' CompeaI&tioD to IHIftben oIloOC1prOfit ........ c:Osta 4./JondJ1II co... ' :;J.anfalioM. trustees. direcfon. .1IOCi..... ,20. Labor reJatJou COIta a. ~ c::oaluriM ... aM 0 acena._ dtttlaaecHate faaaIIia thereoI. Z1. Lot... oa other .wanSa Covmlllleftt requm ...uruce aplaet - Det~tiOll thouhl be ... that nd& 2.Z. MalDteftance ad repair c::oat. (m.ndalloss to Itself or ~ br rea.oa of cocnpenIItioa fa ,.I_ble foe the ec:tuI 23. Ma.erialt ad .appUa tile act or def.uIt of the OCIlftiuticm. 11aq ~ Hnicea rtftdeted nthet dwa . . U. MeetUlp. conIeftIlCN Idae lito to iftItanc:ea.wbent the:JufatlOft diatribudoa" eaminp fa exctlI. of ooata. :s. Meaabetthlps. aalMc:riptkma. .ad requires "au1u .....caee.lAdu .... .1Ida (:, AAr c:huce . 'D cqaalzatloa'. proleuloftal.ctMtr COlla bondt I' bid. penonuDCe. paym,eat. COIIlpeQMtioa polier ....uIUna tD a 24. OrtIllizaUoft c::oata '- .dVaDCe paymellt. ~ lad fideIItT lubatentiaJ IDem... the OIIlftlzatlolt'. ZI. 0w:I1ime. cxtN-per RIft. aaellllullilbfft bondt. . level or COtDpeaMtIon. putk:aJarf.v when It preaUlIIU b. Cotta of boacffq ~ ptII'IUat to w.. conc:uIrcat with _ fnc:na..1Il the ratio . .. Paae ..... proreaioul JOum,aJ. the lenu of the award an aIIowabtc. of~.t.--cd .... to other ac:tMtIa 01 .- 211 Pridpahuppoct coeta c.,Cotta olboadfDc Nqalred br die . the orpafzatioa _ UJcMftp" the . :so. PaCnt COIta Ot'I.n&atioa .. the cnaid CllIIcIIIct 01 Jta treatlfte!:d of dowabilitr of epedfic IJpet of n. Peutoa pIaaa OpuatiOM are anow.We to tile...' duat c:ompeaaaUOa due 10 dsaqa" Cicmmalat. U. PIaat MClIl'ttJ COlla auch boftdiq ilia IICCllX'daftICI .dalOUlld potiC)'. n. Preaward c::oata bu.1neu pncUce ancIthe ntel ad &1("" .. tJ'ntdk1wdk"".,.. CottI w1ddI.... St. Profaafoul tl'emct c::oala are reatoaable uacIer the citcw:illtaace&. anaIIowable acIer other parqrapht 01 thIa JS. Profita aDd Iouee OIl diapoeltioa of S. ~tioa ~ Cotla ~ for Attadmlerat... DOt be alltnrable ad_ IhIa depnc:f,able propertr or odaet ClIJIitat telepboM aerricea.1oca1 ad Ioclt diItucit perqnpb ...,... the ba_ that tbq .... telephone cau.. teIepuaI. ~ coastitate penOaaJ COIIIpCIIHtIoa. X. Public 1nf'0000000doa Mtrice COlla poa'-ce aad tbelib. .... .lIowable. . " t,.,..". bene/ittl. . 37. Publfc:atioa ad pdlttial c::oata" ~ lor peNJMt.mea.. (1) Friop beaefite""fonD ofniplu K. Re~ aad altentiOll COIta ../hfizt/tJoll. Coaapeualioa -penoaaI coaapaIAUaa palello emplorea ~ ,-) l .. Rec:oGveflfoa COIta aeMca IDdudet eJl (lIGlll_tibo paid perioda of aathorized .bMDcea Irata dae job. \. - 40. Rec:ndUna COIta . cumnd, or .ccned br the CqaDIzetioa for eada .. ftC&tioa Ie.... lick ..........., 41. Relocatloll cotta, ~ of....... nMerecI chriaa tbe .Ie........ tbellb. an allowable provided C1. Rata! c::oata pm~ of the .wud {except.. odIerwfM audl ~ are.bIorbed br aU OfJlllizadoa 43. ROJaIda ad other COlts fOC'... of provided .. parqrapb .. below). It Iaclac:Ie.. actn111a .. proportion 10 the reJaUft alllOUftt palata ad CClJI)'riptl but fa aoIliIIlJled to.laIariet. ...... C)f tilDe or effort actuall1 deYotecIlo eada. 44. SennlloClf par direc:toc'. aM auc:utiwe ClllaIINttee __"I (Z) FItaait beDefita fa tbe fonD of empIoJer , 45. 5pcdali%ed semce faci1ftin fe... fncefttfYe .warda. frfftp badita. . contributioal_ expeftHIlor toc:ial MeadtJ, 46. Tax.. ' perWOII pJan cOtta. IUoWaGCet for oIf-lite etnploJee inaunnc:e. workIIlen'. 47" TermlutlOa c::oai. taJ. fncefttive pa,.location aUowuca. 'compenuUoa 'nluraace. pelUlion pia COlli 4&. Tralll!ztl and education COIte ankhlp.paJ. alld COlt or Ii" cWrereati.r.. (.ee parqraph... below). ud lbe like..... 49. TnuaaportlUoa COItI b. A/k1wobi/ity. ~ .. od:IerwUe aUow.ble provided.a benefits are ....lIted so. TramCOlta .pec:I&aU, proYided In'" panllllPh thela acconWace with e.t.btiahed wriUea (Circala No. A-W] cotta .r euc:h c:ompeualioa are a1Iow1ll?l. to oraaftiaUaa policiet. Such beae1ita whether r . the extent that: tnt.1ed ..lndirect c:oatl or a. dUecl coat.. AltadaMat. (1' Total c:ompenaatloa to ladividuat shaD be diatributed to partic:uJu award. .nd Seledtocll of eo.t employee." ~'lOQable for tlae eemce. other .ctivlties In . maMet COftIittent widl , .... rendered and coNonna 10 tile .tebUshed t,he p.ttel'll of benefitl .ecndna to lbe I'1InlFlph. t throve" SO pI'O'rid. prIncIplH polic;y of the OfI.lliutioa COfIIlItad, indirid..... Of aroup or employee... whose to be .Jl9lied In e.t.bUth.lnc the aUow'blUlf .pplied to both Covemmast ud 00Il- talari" and wase' .nt charplble to such 01 eertaJa imu or c::oat. ....... JllindPla Covemmen. 'Actlvllies: and .w.rd. .nel otheractMlies. .pply wbethu a C!:I'It fa trailed .. cIinct or (11 as... iO .wudt whether tre.ted., (SK.' PnmaioM for. re.erve under . ..If. ind.ltect. 'aihate to eeatloa . patflc:ulat iteGl direct or 1Dd.irect cotll .... delennIMd and Insurance proanm for uaemplopsent 01 co.t II not iAtersded to Impl, tat It II ,upported II reqWred ill thf. ~ ' competlHUoa Of workmen", ::::"Uon unallowable: rather detenDiaalioa .. to, c. &o.OIttlbkMu. are .Uow.ble to 'the atast that aUowability in e.ch ca.. tbould bebuecl oa (1) Whee tile OtI...tlOIl ..~ad' pro,i'doM repreMftt reasoaable ..timaln 01 Ihe treatment Of prindplH proWled for e:lglpd Ia activttiu oiher thaa.thoaa the tiabilltl" for.iach c:oaapenIIUoG. aad tbe, .imilar or ~laled Iteaaa of COlt. _' .poneored br the Ccmrmmnt. coaapieMaUoa types or coven... at'Dt 01 cover.... aad 1. Adrmisillf cwlS. - .. for emplo;ea 011 eo.enUIl..t~ ratea .nd ~WftI would have bea L Adverti.ina COlt. mean the COIta of work will be conafdered rellOlllblelo the .Uow.ble d lAtunnc:e been putda.ted to media Mmen and ..IOdated co&la. MedIa . exteDt ~t it II CODIi.tent '!fth that..c:s for coYer the ri&b. However. provlllofta for MIf. advertilina include. 1Dacasmea. Dew.papers. .imllar work In the oqarduUoa'IO Insured aebUiII" widc:h do DOt beeoaMt radio and televlalOCl prosn.IIlI. dinct lIIoIil. acti\itfes., pay.ble f<< IDON than ODe pu after the exhibltl. aDd tile Iilte. . (1) Wbn ~ orpIIiutioa II pndOCl'linand, proviaSoa it IIlllde ahaD GOt uceed the b.; The only advertiaiq coati aDowable aN eNlsed fA Covenunenl..ponsored activilie. pntaenl vahae or the U.biUt)'. thOle which lie IOlely fot (i) the recruitment and In c.... where tht. kfIld of employees . (b) WheN a ora1DiutfoD foDo," . ' of pel'lONJel wiseD auuidared ill c:oajUDCticm required for the CovemmeDl activiU.a are c:onailtent poley or experWna ICtul with all other recruitment coati. II IM!t forth not found ID thl ol1aniutlon'. other Plymen.. to. or Oft behalf ot employees or . ' !i Circular A-122 Page 7 ;...~ tor ~ (ZI JtepatU rdJectitI& the cUaCrtbutJoa of 011 laud..)' be... darouah ... . ClOG't ..,u..- _...w..'. ~tfoa. ,ac:dvflr of... empIope aut be' ~.- depNc!auoa. Ho-...... C'XCe1 IUdl ~ .... aUoweble IIIl l:,u of ...mtaiaed lor aU .taft' JDCDbct'I .. p,cmdecI ':l:::r.:h t "low. . ,.JIIIISd wid& Cha ~aJ of (proteuloaala ad aoaprolatJoaalaJ whoM (lOMJ.I...tfoD die two aahocfa IDa, DOt be atoIudbIc qeacJ 'tber en &fIc!cated ~f:Ioille cfwpf. fa .... 01' fa p&l1. '1IMd fa ~Ioa wide allacle c:1Ua of to aU Ktl~" Of the.....Uoa. diNCtl)' Co awuda.1D addUiOII. fa ocdft Co Iud ...... (.....1MdIcIiaca. office ~ , (4) Coati oIlA1arUce 011 die u... of euppon dae aJkic:atioo olladhct COItl.1Uda OO'ID,.... eqaipmal. etc.). ...... oftk:en. at odaer tlDPtore- hoIdma nporca ~. be aWn~ lor ocher b. 11M COIIIpUtatiOll of ue eDowUlca or ~ oIsbDi1ar......llbWtr.... :~,... ~ work ~ two.-.ore .....UOD ehaD" IIued 011 tbe aDowatiIe oaIJ to 6. meat deat ~ 6aDdtou.- actfdtiel If a ~ ~ tbdr 'ecqalalUoecoat 01... ......lIwohed, The iDnnIDCI nprIIMIQta..sdltfoaal ClOIDpaNtfaa betweaa nc:Ia ~oaa or ~ 00It of_ UHt dooated to the ~ticD. ne coeta of RIdI tanrucI ac:ti~" II -...decI1II fM clelenl:dutioD of .......tIoe., a tIdtd pIl1J thall be ita faJz ,.. die 4qulzatfoo II........ .. CllpJdladoo'.1Dd!nct COlt laie(.J (..... aUbt.... ....... 01... 4aaatioa. hrMIlkUfJ............. .....pro,.....,.cI pat-tIZDt ID IDdIrect Co 'I1aa OOIIlpatatloa of.. aDowuca.- - l...... it CI>>I/I. '- ~ ~ aDd pat.UIDe fa a direct ....tSoa WiD exdade. )Cotta the orpDIradoo'. paaIoa plu 1uDctIoa).'1teporit ai:saIataiDeG., ........~t (t). COlt oflaDd: .... ...Iac:amd fa aor::ontuc:e wUb dM .....tklu to..tfIfr.... NqldnlDaltl IZ)"" partIoa 01 &be CNt orba~ aDd ....bIIIbed ~ of aM.....tiOD are aut.... the foDowfztc ~ -; ...... '*-.,.- tb:aaled" the aUowahIe. pivrided: (.) n. ftporta...nftect u ~ Federal ~~u~ IInfpedfw of wbete (.) Sada PoJid.. meet fM .... of {ot:t .......tfoa of the aCbIaI ectiYil7 of CftIe we. orfa:IaaJIr wsted .- where It ......b1aeu: ,...cIa employee. 8ucfcet ..time... (Le.. pNNDd)' ~ad (hI ne method.t 01 COlt aJIoc:atfoo are DOC e.tfmatea ~ Wore daC aemea .... (I)"" portioa oltbe co.t ofhlJdiap cd 6aiadllatGly: pa{GnMcQ do &lOt qaa1(ff ..1UppGIt tor IqdfpIDeDt ClOIItdbated br 01' f<< the (eI ne coet UIfc:necI to MCIa ~ J'NI' Ja cIi.upe to awarda. orcuf:utfoD ID ..tIIf.c:tioa. 01. ItaCUtot'J' detanDiaed fa ~ wftIa aaai!nDt (hJ r:..da:=.... accoat for dae taCal ..tdaIq NtkaMAt. e.oo-l"4~ffDI~"prac:ribed edhftJtGr 'ampIoJeeeare.. . cI. Wlaaedae...eDowucelMdloclr. ~A=-="o:,~' =C:'" ucI whI~r. NIlalNd ID foIJowad. ......ace l<<hiIdiap and PIabIk~ad ,oftbtlroblfPtIoaatotM ~Clu."~IaDdfm9s~haDC:Ata . . a.c.I '.....fioa. . . , RIdI.. pa~.......1alc:a. ad (~~==~.: ~nportaDllt be afped"" . IIkSewaJbJ beCCDpUtect.t........s ... . emplope..-., a ~ Ia" DOt exceecIIat... pen::at Of acquWtf.aa 1DCIdIIa........ - tlaatJ"lU. Hownw. ~ omdal..... em - CIOIt. . we aIIowlIACIloreqaiplKot triI1 ==~-=r;:..~~ bowWce oltbe actIYilles pm!XlDecl b1 &be M ClOIDpldecIat u UDUIJ NIe DOt ~to1l edIaadIl_..... ...efttr Mc:h amp"" dual dae cUatribatloo of~., . ad two-ddnfe .J*CIIId~doa COIL .......ofdle ,..rtowlddl RIdI ClOItIare Np.~ · ....eaaable.....te 01 tbe - . " Wbat ..... aDoWace Ie UMd lor ~ aN aaIIowaIM. KfultfGI't performed'" dleemploJee Wdfap....... ~-... be trMCed (%) PnaIoa pia tInIItMtIaD ....uca durfDc dae pGtoda ccmrecf"'" tipoN. II a.... aNt:"~. ~~tI paid to" = - (cI) 11ae.:r:: ID1IIt be}lftpued at Ieut le... phaablac .,........tiftc ud at r.=.~~., Act lW:'(Plab. -this' ~ cofDdcIe wide 0De.- JI!ON ClODdiUolWlc- etc.fcaaot be....1..t from L es.a) aNaDowaWt...... pIJIDeId""~ . the ==. 'I1ae two paaat cIsarps 011 RC:It ..-_... aDaDowabM. (a) QaiopI for IM..we.. ad..... 01 IIadtdoa. ... DOt ~ &0 t3JExdM tale ____teet fuDdinI' DODpI'Of'eftIoaaI ~ III eddltiOD to da.e eq.4peafwtdda Ie mem,. .- ~ ucI otJaerpaWtfet Impoted == doc:amtD..uoa detc:rtbed bI Iaa<<aed to the INIIcIIDa bat DOt c:::.tJy IIIIder tbe EmpIope RetftwaMDt IDcoma ~ ft) aDd (%J abcwe.mut alto Ixed to It ud .tdch 111IIed.. or &ecaritr Ad AN 8uBowable. be ~., recarda tDclIcatma the total .s.contSoaa.-1or z:i':: pwpoMa (e.... ..~ ~ IDceeUYe ..bit ollaourl worked ucla day · deDtlet daaJra _ tal1re.1IDat 1IDI.... oompmiatlOll to ~ baed 011 co.t ..mtalMd III ccmlOftZWlCI with Departzaeat CIOaIIteN. Jabcntol7 beac:hee boiled to tJM red<<doa. or ef'lidetlt eaCormUce. . oILabot' ftIUIatlona ImpJemmtittl die FaJr Ioor. cUahwuhen. oupefilll. etc.). Such ~ ..adI. c::wudi. etc.. are Labor StaDdatda Act (Z!t en Part Ita). For aqafpmftt wGI be coaaJdered.. DOt bdna allowable to the extat die CMn.I1 tbfa ~ d1c1enD ....oaprot...louJ pamallaSd)' Ixed to the bWIcfina If It CaD be ..peantiOD II ~ to Ml'IUOD&ble asp '.. eIaaD.... Cha .......utaa .. ~ tritboat tile DNcII<< ClOCtIy or ad RC:It cOtta ... paid or acc:naad pamut "DoDanIpC empIortc... ader the Fair Labor exteufft ......done .- repaIN to t'.be to a qreemaat _iawd 1DtD.. JOOd Ialth Studatda Act, . ~ tM eqafpmeat. Eq1dpaMllI thai . t.etw.a the .....tiOD ad tM ~ (4) Sa1aNI ad..... of empIorea ued ..... crlCeda .m be IUbj<<t to Cha cbt WON the Mt'ricet"..... raIdered. or . meetl.q co.t IIwtDa at ..tddq ud twcMhlrda pacad cquipmat UN pamaut to a'ntabJJlJaed pia foUowed ., ~.lDeDta OIllWarda mut be supported ill aDowUQI IIm1tatioA. the orp.a.Iz.aUoa 10 caaatataldr.. to imp." 1M Mmt JUDMt.. aaJana ad '"'" .. Wbere depndalSoD method s.IoUow.d. III elred. u ~ to..u MIda claimed . ~ from awarc1izla tM period of aMftal MfYk:e (uefuI Ji1'e) plflDCDL _ ~ ..tabU~ ill nda caN for..hIe capital &. 0ftrtirM. nttfI /lIlT IAI/l. tlIfd IlIUIt/d/ft ,. Qmtirtpncr pI'fWiI/oM. CoatrlbutJoaa to ...... -. .... .to CODIicSeratioa aucb ~ See ......... %1,' a coatlftcaq l'HItW 01' ay lbDdu fadorI..lJpe 01 oautructioa. utaft of the t~ ~ See"""" ff. - prcMIfoa..de lot I'mltl the -'CCWI'DCIl 01 equfpalCd ......ledIaIoIosfcaJ cIeYcJopaHntl Traininl tIdut:atioII elMl&." wlaJcIa CUDOI be forelold with certabI: u to ' fa the putScuIar~...... ad &be perqrapb 4L" time. bltdllty, or wide a atf1ftDCl Ibair mew" ad caseIlt poUdet IoUowed 1 Support 0( IGlarIes ad..... laappenina. AN uaUowabl.. The tenD lor aU the IDdlYiduaJ ',ema or cia.... 01 . ft) Qarpt to .warda lot Wades ad "caaffDceAcr .....l'Yt~ cxdudet tell. ....tI blwlwd. 11le aetMd 01 depredatfOD ..ae-. wharhr treated ai dlrect COtta or WUI'UCIlI NMn'tI (;:r;:craph "'.(3) ad ued Co ....,.. the co.t of III ....1 (or croUP IDdirect c::otta. wm be baed 011 doazmented 11.&.(1)(d)): p4tGC10Il (Me parqnph of ......) to ac:ccKUlUq period. t!saD rdlect payroDa approved br'. rnponaibW ofridaI(.) t.fa)): ad nserva for DOnUl ~ pc, &be pattem of COIIIumptioa OftM aMet of the OfIlrslutioa. ne dlatribatSOD of (tee plrapph 4C.(b)(1). dwina Ita uefull1f..1A the .btence 01 deu IIlariet and ..... to ewuda IIIOIt be .. ContributJDM. Coatributton. and mdenca bUcltiq that the expected lQPPOr1ed by pcNnnneJ .ctfvfty reporta .. donadoftl" the otIWzatiOD to otberl an COIIIWDptiOD of the "Ht wW be .lpificantlj Pf"Cribed 1D IUbplrqrapb (ZC::W. except =-Dow.b1c. Il'Ufer.-1eIM1' III the early portiOftl of ill when a .ubctitute I)'Ite1D Ilu approved 8. Deprw:lotlfNt and UH o/JOWGtICN. uelW lIf. dwa III Cha later portioca. the m writ1Dc by the the ClClII2fwlt qencr. (See L CompcaafiOll for the UN or buOdIDg.. Itrafiht.tme ~ than be pmwned to be puqrapb E.: of Attachmenl A) other ccplta1lmprovtmCDtI. ud equipment the .ppropriate method. Depreciation :1rcular A-I22 Page 8 Iedaoda 0DQt _eel eIaaU DOt be dsaqed nlmtn.a:-l wsdu the awanl<< uecllO.... (1) "Eq.....:=1Ilt'" IDftU a ~ of . :as. appt'O'ftd lIladvuce by the coplwst COlt ah&rlq OC' matcb1q nqafmDaotl; ~bIe ~ I*'IOa&I proop.rtr' ,.... 'edctsJ apnq. Whee dwt clepreciaUora , (5) The y.alae of... dOD&tea Nn'fc:a IDa)' ba'rinla ~ lIf, Of aon tbaa two ".,. "l). nethocu.. Introductd IOUpp&catfOA to ....ts be ueel to meafcost e!sa:tiq or matddq . ad .ucqaltlUoa COlt oUllOO or IIlON pet - J ;nnfouly IUbJtct to . OM aDowuc.. the nql.llmDaDts under CoDdluoaa cIftc::rlbM m uSt. AA OCI&DI&atloo .., ..Its Owa comblUtlcm 01... aDow.w::tt aU ' Attadimet Eo ONa CIrcuIat No. A-11G. d.fWtiocl pnMdId that It at ...It IadacIet an dcptodatiun applicable to _ ...... Iliu.t Whmt douted ..melt .... .....ted .. . coaupeDdable WIflbIe pmoa.aI PfOPatJ u _,u:..d the total acquftltioa COlt of die IDditect co.tt. Jadlrect c:oa rat.. wtU . cl&flMd hanriD. . ...ta. Wbaa the dcprec:iaUoa ..thod II a.ttd MpUlIte the value of the douUou 10 daat (%J -AcquflWoD COlt" - the Mt f<< ~. buiJdIDI',.n.., be . ~t wd1 DOt be macM. . InvoJct unit price 01 a.... 01 equfpaMAt. ,~ated from .adt.~ ~ . (eJ ralrtllUUbt... of clouted..... . lDdudJq the COlt 01.,., IDOdlftcaUOu, . (..... pI-1nc qI'" ..... uc:l.... . .un be computed .. foUowt: . ,ttadlmalts. &c:cIIIClrias. or t1llld1lay c:aaditioclli:ll'''-' etc.J &lid e.ch... - (.) R.GIH I<<~ ~ Rata. for 'pPVatu DaCe...,. to aab It...bIt t<< the depredabd OWI'ita ..um.ted .... We: or YOluateen ebaJl be _II"" widldaoM putpOM f<< whic:b It It acqrdncL AAcIJJarr the tIltfn~ufJdb2a (Le.. die IbtJI ~ aD ~ rata P.&id for I11rI1tat WCIC'k III olber da&taet. tw.:b a, taxa. dutJ. proteC:tive fit. C'lOIIIpOQCSIte) IH, be treated .. al&tlle aNt acditUet 01 alae cq...Uoa.Ia CUM wben ftDIit IDsurucI. fNfPt. _lDttaDaUoa ud 4ctpndateel OWI'. .... uefa1 III.. . the Idada ollldDt blYOlved aN GOt folIIId !A shIl be Iadladtd m or adudecl from . t Whtll the depredaUoia met.bod II a.ttd iIut other acdYiU.. of 1M orpJdutloa. tblt ~ ~t III accorduca wUk the lor. partIc:ular d... of....1I. DO ' ntet uecl abaD be c:ocWIteDt with daote pafcl ora&Dl&adGa . rquIar wriua &e:ICOUDUq depreciadoa.., be aDowed oa UJ tucb .for tJmI1uwork III the labor tllUUbtlll wh1c:b pracUc:ea. ...eta that..er paresrapll.. abcM. woaJcl the ora....Uoa COIDpetea for euda akJDa. (3' -Spadal purpoN eqtdpmeat" lDeua be Yiewed u fuDy depnd.lted.Howenr.. (b, s.iritw dontltM/ bToIMr ~ufpmat whic:b lI...ble =r for ntean:h. nltoC&bIlt OM aIJowuce may be aesou.tecl o~ ~ _ltIDP1OPt dooatn medicaL ldaatUlc:... tedI,. aethia... lot tucb aiM1a If W&mIlled.fter ~ Into the Mt'rion 01 a emptope. tUae 1trYIcIa. Eumplea of apedal parpotct ~uIpasaat coaaidenuoa the UIoCIUIlt 01 depreclaUllQ lUll b. ftl.. fit tM inDptoyft'a np1arnte ,iftchMle ~ x.,.,..dllDet. nrsfcal prnioadJ dltrIecI to the Covens.a:&alt. the of pay (~of frmce baMall act IDItnuData. ad 1pICtrOIDIten. iMUmatecf ueIuI W. nma!DIq.t Utu 01. iDdirIct coata) prcMded tM aemc.. aft fa ~.~:.,..~~~ JIeIOUatloG. die drect 01 Uf lDcreud . the M1H akJIllot wfdda tbe .,Jopt It ' WIIKiII - 0__ - ""'taa.ace cbirpa of dec:nuecI el'fidatcr DormaDr PuLIf the MI'YiC:a aN GOt III &be . reteUc:h. medleaL Idaadc:. or tacbDIc.t1 doe to.,.. ad UfotMr fac:torI ~t to IUMl U:lU r. WIaic:ta... ~ "'DOnDaJ1r .c:tIvSUa. wbatber or DOt apedaI a.daUoaolthe.lNtforthe~ paJd.faJra,abt.... abalIbC caaaPuted.1n =::: ~~~ ,.. of c:aafeasplatecL - ~ with labparqnpft(a) &bow. _I......... ----.Iadacle ofBP .. CIuu1ee for aM aDowuca<< . . .. Ct>>d6 tmd~ . .-- "'-r-:'" ~--- ce depredaUoo IDlIIt be npponacl b, edeqaate (1)DoutM aooc:ia: La.. expeadabSe ' ~1dpJ:DeDt ud ...,.... air coadfUollJq popatJ reConta aad phJwk:allllYaltocte. pUsouJ praperir/tupplJa. aDCI cSooated OM ~ npoduct.IoD acl prfDlIDI Il:a&It be tUaa at"" CIIICI"':rCl~'" . oIepace IDa, be fumlabtd to &II GCpDIzatioQ. d::=or~ acl atoaIatlc . (.ltatlallcal taaplialc.....1t Jto n. .aI_ 01.... aooa ad.,.ce It GOt II. (1) Capltal~ bteaenl tIlIUN that...... ei:lat....,....bIe aDCI nimbunable e1fh!1r.. a dinct or iDdInct - _ ~~ ..1ID&IJowaLle.. a 1 aeeded. WbtIl the depNdttlou:ledaocllt coat.' : ...-......., . IoUowed. adeqtaate depredaUoG recordI . (%) The value 01 the dooatloa..., 'be uecl :-:=~ --= the pdorapproyal of IIldIcaUaa the tIDOlIftt of deptedatloll takesI to JDHt coat eJwiaa or matchlaa abare (2) Cap! apacIltara for epecW parpclM ..ch period IDlIIt ~ be mamtliMd. nqalremeftll ancler tbe coadfUou deKzibed equfp.ot .. allowable .. dIrei::t ClOCJta 20.~ In Attachmimt Eo OMB (:IrcuJar No. A-lm. provided that It.. with allDlt cost 0111000 LSemt::et I'M>>lWId. n. yallle ol 1M doDaUou ebaJl be, 'bave the prior approval 01 the (1) Doaated <<wolUJlteer HI'ViceI.., be ~ fa eccorcIa.ace willa AttacIImeot ::::::. fu.raImed to U orp.1lfsa~1I br profea1onal Eo Wh.... dcioaUoaa aN ....atect..1Dditact Co c.pt.:t:;'tana for Iucl or and technJcaI pmol'IAeL COftIwta.rl1l. aM co.lI. ~ coat ra.... wiD tepante the bulJdinp .,. uaWJowable .. . direct co.t other tkJIl~ ad auJdlJeel Jabor. ne y'Ne !aJwt of the doaa~ 10 IMt ftimbuntmeot excepfwith the prior a~aI of the of thae Iler'rictIII DOt rehzlbarNbl. .ither u wm DOt be IDa. .' .wan1lq a dirtc:t or IDd1nc:t COlt. 1LEmpJI1YH IIttN01.. Mollh. ontl nlfiw. d. c.pi~ lor Impr . ,(tl 1'bt yalue of doDateel unic:a atil&ed CO$U lUJd awdil6. ne costa of*" . to Iud. buJ1c:lmp. or'; t ~wauerlla iii the perfOC'lZWlCe of a dJtec:t COlt sc:tIYiI1 pubUcatiOaa.lleallla Ilr &at..ul dIDka. udI maleridJ b2cnat d:Idr::: or...ful life WD be. COGIfdeted III the datenDinatioa of << 1Afirmari... recrutloDalac:tlYtU-. aN aaalIowable u . cf1Nd COlt except with the oquh:aUcm', lndJtec:t COlt fltef.) and. employeet. COUAIeJiq HtVicea, aDd other the prior approyal of th. aw&J'dina qaq. . ac:cordinaly. .haU be IUocated . 'xpenlellDc=rwd In accorc:laDce with the e. Equfpmtllt aDd oth.. capital JltOponionate share of Ipplicable IDdirec:t 011....11011.. ..tabliaMd practice << c:uatom expadJtatel .,. aaDOwable alDdJract cotl. w&ea the foUowinl dr'CUftlltaace. exi.t: fOC'the imptovtmellt of wodWIa coaditioDl. ,COIta. Howner. tee parap-apb . for (I) 111. aarqate yalue of the Ml'ric:et It ~Dlployer-employee reJatioas. employ". . .llowabl1llJ of aM .UOW&JlCel or . ...terial: liloraJe, Uld employee pedor'llWlCl aft depredlticm 011 lndldinp. capttal (b) n.. eemc:et .,. .upported bJ, a aUowablt. SadI co.ts will be equltabIJ tmptOYemalta, ud ~wpmt1lt. Alto. ... Ifpi&ant alftOUDt of the iDdirec:t c.oata .ppor1loned to allaetlvlU.. of the para,r.~ U for aUowabllit)' 01 taltal COlla Iacumd by the Clt'IWutJoa; oramlutioa. !Dcome aeaerated from In7 of for Iud. ~ &lid ~ufpmeat. (el The dJrect co.t activity II aot pumed theM aetlvltia will be c::redfted to the COlt tt. rma ond pmtllu... CoatI of fiDtt aU priIIIarily for the beD.ftt of the Federal thereof lUll... auch IDcome baa beG. penalUa tIIwtlq from YioJatiou of. << CoYemmecL Irrevocably Nt ow.. to employee welf.,. rli1ute of the "Iaiz&tloft to COlDply with (3) 1A thote bIItance. wbera the... it no Ol'i.aiz&tioat. FederaL State. ad local JaWl aDd reauJaliol1l "lit for detes'mlnfD8 the f~ awbt value of 1Z. Ert141't4in1:na1 COIl6. Coata of . are ua1Iow.ble acapt whal mazrnd u a the temc:et rendered. the ridpfeat &lid the &mll1emeat, dlYItIioa. aod&1acdvltia. retwt of COCIIpllece with aptdftc proytaiou COSDfunt qenc:y .haU nqotilte e ceremonial.. ad COIta retafiDI th....to; Iuch of a .ward or.lub'uc:tioM In wri"" from appropriate .IJocaUoa of lndirec:t co.t to the u tntlls,; lodain,. rentals. transportatiOQ. and the awardlq qenq. eenicet. . ptuilie. ant unaDowable (but Me 15. Frmg. b<<tefi~ s.. parapph I. t. (4' Where dcm.ted aemcet ditecdy benefit paraar1pha 11 asul2$J._ 11. /dJ. fociliu. end IdJlt DtZptlCity, a ~ I1IppOtted by .0 awutl. the indirect 13, EquiptrHUtt tutd Dtlwr ctlpill1l L Aa UMd In tbit parqraph the fcl1owtn, costa .Uocated to the u:mce. wiD be upenditurrn. tenns have dwt..aninp let forth below: con.ide~ a. . pert of dw'total coati of the L Aa nsed 1ft thlI parqrapb. the foUowiq (1) "FacWtiet.. meaulud Uld buiIdmp ~ proJect. Such lrulir.ct co.ta may be tmu bave the tne&I1il:Ip let foc1h below-. any porticm tf.IeNof. equlpmant IDdlvlduaUy . Circular A-122 Pa~e 9 . - --. " ) ~ ~".. or.tr odaer WtIfbJe ClIplt.al (.) TrPn .ftd lmat of on....,. ..... be n u..H'" otJwr~ A1:rr acWc'of .e.et. wherewr Ioc8ted. ud whether aWIMd ill lICCOI'd&DcI with eoad buiDeM pnCdce CIleta .,.... Wiome OIl UJ lIWUd It << ..-Md ~ ihe OIIuJzatfosa. cd the rate. ad pnt1:ll.fuma ..... be anaDowald. .. . CllMt 0( 1ft)' other .wud. (2) "'Idle ,.dUtfee.. Iftftftll COIftptetely re.lOMble tIlftder eM drc::wuCaDCN. TIsU fncl~ but "DOt IfmIted eo. the uauaecl r.c:Wti~ th.t 'N exc.1. to the ,(b) CoetlJ .1Jowed for baaneae ~ OI'Iuiatioll'. ~ pordaa .,. fMIoQ O!'I.nJutlOlS" aarmat oeeda. or odlc .amdar iIul1Irac:e IbaU be IIaHed to of eo.. lharizII........tI.. &ft)" f') '"Idle capa::.r;aeua the tIlftued uckMf. con".,. or~ -. ~n""""'._M dnuP DeIOtiatfoa orlatp capadtJ of parUa ued faciUtlK. nil ~ (eI Coer. or lullt&llCe or or.., pI'O'rItIoM eama lor. .. ceJUnp -.1DdiftCt ClOetL cfitrcNftCle beeve.a thet whJch . '-dUty for '1'MeI'Y' ClOYCr'iQr 11M rIIk ., ao.. or zz. ~ tIItd IrptIir c:wllr. CDsa ~ adtIcrft ader 100 per cmt .,.tinI cia.... to Co_w.m.n.t p.~ an fDcurred lor 1lIeCItN<<17.....teuace. Npatr. tIlDe Oft . oaHIdft batll _ optratiftl' .Dow.bIe oaI7 to the eateat Cbat die or apt., of buIIcffap uel eqsipemt IntetNPtfoall cauItfq from CflDe lost for orpnJutfOa .. Uable .. Ada.. ........ (iftc!:adiftC Ccmnuneac propcrfJ.... :c:-- ~ ~ ..ta'faJ.. ad (ell JltoriIIIGlu b -............ MIl.. - ~ ~ lor) tIIaidI ocfda.-8dcl1o o r deJa,.. ad the mat to which IDaaruce prclIr'Ia an aJJow.bIe to daot . the ~ .... oft&. pc.,m DOl' the radlfty... .t:tuao, Ued to meet ". exIeat Cbat tJpee oI4>>w4qt. edaC 01 . appm:iabIJ proIOftc Ita tDteaded lite. hi demands dariDa die ac:couatfDI peiiocI. A ~ -.. ad p.~ wocaJd IIaw best it fa ....eftideIat epentinC CI:lIDdidoa. an IDUItIthItt bufa.., be aect "" CIUl be ... a1Jowed...4 IDIarace bea....._ aIlow.bIe. Cact.1Dc:ufte..t f. Iuo~ ..lI'IIDeDfe ' shown tbat thII amoaDt of...,. could. to CIlmII' 1M riab. How, fa'. ~.. which add to tbe penuaesd nJue or Ibe oormaDy be expeded lor the t,ype of f.c::Wey bowa or ft!UODabf, estimated .....:-H INiJdinp ad eqtafpmat.. appredably" IavoJ'ftd. . IiabWtia. ..wda do DOC baoame parable far pro1oac dtdt fDtmdeci IIh dWl be tnated .. {(J"'Coctt 011& racmtrH _Idle Clp.citt" more dwa OM."'" aIW.. pnrrilioll.. 'caplt.1 expeadfturn (... paqnph 13). me.... CiOttI ndt.. ..JataaaDCe. t!tP&b'. ..de eha1I aot aoNd.. JlNtCDt.. 01 Z3. Materia/6 _ wpplia. 11M COI.. 01 ~ resd. aDd odl.er relaid coati: ..... the liability. ..tcriaIa and .appIiet DeCIIMaI'J to CUI)" oat propertJ taxes. blJfUlClo aDd d~tfoa (eJ CoatI oIlDn:rucI_......... of . u awad .. allowable. s..= QXflI Uo.Id be or 11M aJIGwucet. 0' ......... omca.. or odaar.,ao,.. WdIIIc c:tsarpd at dMjr ac:tu.II pdcft after d.do~ b. The emtl 01 JcIIe fad1ltla ere . poaidoaa 01 MJJar ~.... all cull dlecowu.. heM diacoa......... aaDowable except to 1M e.xtad that: allowable oaI)' to.... tIXtat that... ad aUowac:et f4ICIh.d br the ~ (S)n., an ~ Co meet Ir:IIan.Doe I'epftMDta ad4ftfood Withdraw'" froca..... at_ 0: tluctuUou tD worlJo&d: or ~ (.. parqNpIr I). ,... COlt 01 etocboocu IhouId be c:Iwtad et 0Nt__ (%1 AltbouP DOt uceea&I'J to meet ACIlIanraDc:le wINia the .......UGa Ie aDJ NCCJIIIltotd IDetbod 01 prIdzIa , a~ Ia wortJo&4. tbq ware JdadiI.ied.. the bawIciar7 Ie..DowehIe. cooaieteDdt -ppUe4.1Acoadnc traupcIrtdoa DeCHMI7-- acqufrecI aDd ..... flOW fdJ. PI Actual Jouet wItkIl ~......... a.,....., be a proper put oImateriaJ becauM Of ~ tD PfOINSIl nqu!reAwlta. c:cm:rad by ~ taww-.. (dI.roaah coat. Naceriels and nppIica cIsaI1ed... efrorW to _d&Iew DIN ~f.eJd dwI pan:hue 0I1anruc>> or. N1f~ ditl!'Ct ClOIt.bouJd IDdade onlJ the ..teriaJa operelloaa. tiIorpdzatloa. tAtn'.l:l!r&atfoa. or ProIr'am) are aaDewabIe ...... ~ .... ~ lICtlaaUJ tII'lJlt ,. .. . i other ClI... which ooaId DOt have bea proricSed lor tD the ...... ...,c: pmOl'llWlCe or the ClOIlfftd or.... _ .. iealOD&bIJ fort-. UaGe.r the axceptioa (.) ~ ~ IIecnM 01...... DOt c:Ndlt ahoa.ld be..... for.., CSCItW stated JD IIaIa ~ coar. of fdJ. c:awred adet iIoaWIaJ deductfbte........ ..tedala Of MppJiee ....faecL or l\;~W to rac:illtlH are &Dowable lor. .......bIe cloftrqe pn:wldecl1a ~da IOUrIcI ftSIdon. pcdoct of time. oN1DariJJ DOt to ue..4.0De - INiIDeM pnIctiCe an.... aMM/n.p. ~ . JUt. ~ 1IpOQ the iIaldatfw taka to . (bl ~ ..... DOC CllWIlNId bJ 1lUaruct. .. co.r. uaodatecl with the ClOIlId.ct of ....Ieuc. or c1itpoM or such fad1lU. (bUt .ucIa .~ apodqe.lnf.bte.ad' . . IIIfttinp. and conCetCt'ICtI. ud iDcNde the lee puqrapha 47.b. ad eLl.. diNppearuce ~ nppIift. wIdda occur f:D the coat of reQ~lftia. .ala. &peden' - c. TIle c:oeta 01 JdJ. capacity ..... 1IOI"ID81 ~ ClOUI'M of opentioaa. .... aDow.bN. fee.. aDd the . But lee parqraph U. COllI 01 dom, buJaen ud are alac:tor ill the It. '-"--fficatfoa tDducIea ~ theEnlltl1i:1i1ulN1ll COllI&, .net puqrapla :e. normal fbac:tuatiODa of..... or IDdirect coat OI'IWAtion ...met If.biliU. to thfnI Par1k:iptJnt IfIPport COllI$. . rat" from period to ,.nod.. Such COttl are penoa.a aDd aDJ odaer 10M or damase. not b. To the extent Chat then coati .re allowable. proWled &be ClIp.city ill COIIIpenMted bJ faaaranoa _~. The Jdeattftabt. with. pertlc:atar COlt obft'ctive. rel!lOCIoIbIy antldp.ted 10 be DeCeIMr)' or CcwmllMllt ill obliptecl to IAdezmdfr .... . they .h~ be ch'raed to daft obfec:tiw. (SH . WII orieln&D)' tlJUOUbJe aDd ill IRIbject to cqlDiAticm only to the e.xtat upret.aJy parqnpb B. 01 AU.c:fusaaIt A.) ne.e c:oetl miuctioa .. al.iIntutico by .ubletUna. ptOVfded fA dle .w.rd. .are allowable provided that they meet the ftftlilll- or..1e. ill acc:ordallce with lIOC1d 11. /n1Mnl. fund rrzUinI. and infWtmetrt. pnerel tear. of .Uow.We. abowD ill IM,JIM... ecocomka. or Hcurlty practice.. ~trt CWI$. Attac:luDat A to thI. Cin:uJ.r. Wideaprecd Idle cap.city tJuousboul .n .. CoIflIfACIItftd foe mWr'at Oft bocYowed Co CoetlJ of meetinc. ad conrft'el1ClN held entiJe ',ciJit)' or lUDOnI'lZ'OuP of .,aetl capital or klnporery UN of endowIIlent to conduct the pnereladminitlratWm of the flavine IUHtantia1ly the same function 1MY fuDdI. however repreaentecL an unallow.bIe. ora.nizaticm .... .Dowable.. be ~ r.cilitiet. . It. CoIta of OfI.niud fund "il1"" 15. Meltl6enAip.. lU16M:ripti". and 17./ndcpcndent reutzrr:h and derr:/opment 'ncludina fin.ncial campafcnl. endowment profn.i()lt(lJ actirity CIOIt.. (RHerwd1. driftS. eoUcitation 0I,uta aDd bequetta. and .. Coe~ of the OIIanization'. membership 1a.1Muro~ and Jndemnifit::t1tkm. . .imiler expenH8 incamd eGlel, to l'lIiM In c:iYic. bOllnl!'l" technical aDd proleuioDaJ ..1Narance f1dude. iDaurence WbJch the c:apitd or obtafA coatrlWtioaa are O1'1.nizatfona a,. aJJowab... . O11lnizalioa fa required to carry. or whkb. ill antUowable. b. Coati 01 the orpniuUoo'. nblCriptfoM .pptcmd. wader the terms of the .ward .nd c. Cotll 01 mveatmellt COUMeI .nd ltall to dvlc. buaine... pror...ioaaL and tec:bicaJ .ny other inluruce which the Ol'lu:zation .nc:l.imllar expenlft mcurred IOIeIy to periodicals .re .Uowcble. m.inteina In COft13ection with the If:Mt8I enhance incorr.e fn)m mveet1MDII are c. eolt. of .ttendaDce.t mK!in:-'1'd coaduct 01 ita operations. Tbia p.raP'ph analJow.ble. conlenmcea. apon~ by othon WMls ,be dGet QO( apply to fnlutuce wbicl\ reprelentl d. FlUId raillfnland inYeltlMftl .cthiti8 ' pt'lmlltry~, ill the diSlf!:1i:aafiOl'l or ~ fringe beufita rot' employees (let! para"..pb .11.11 be allocated ail appropri.te 'Mre of tl'chnfcal tnrO:!nAtioa.'M .Uow.ble. 111i. 1.1. .ad '....2)). indirect COIta under the condition. deec::rilw-d Include. coate of meal.. frfOMportation. al'd (1) Cotta of fnalll'llnce required or in paragrllph B of Attachment A. otber items Incidenl.J to auc:h .ltflltldcnce. 'ppnrted. and matntalMcl. pursuant to the 20. lAbor rw/atioM COlli. Colli incurred in '%ti. '017anizotion i:06u_ ~nd.tw'e&. tveb ''''In:t .~ .Uow.ble. . Ift.uuainins I.tisfactory relation. betwfl!1.\ _ .llnf'..,rporetionJeft. broken' rl'f'l. ren to (%1 CAlts of other insurance mllntalned by the nrgllnlutlon and ill employee.. inc.hadi"8 promot!!.... O1'1&"i%en or 1r..n.,elDt!flt tbe orgaJlWlliOl'l m connection wi:b the COIl. of Jabor Ift.na,emt:nt commi"t.,.. et>nsul:..nts. attomeys. ac:c:ountl.nt.. at' 8f'nenl conduct of ill operation. .re' employee publieationa. .nd other ",latd inve'lment coun,o:lof1. "~elher ar r:~t allowable .ubfect to the followi~ limitalloM, aethit;e. ere allowable. "mplu)"ecc of d.e orglll1iutin:1 in connecti.." "" - J , Circular 'A-I22 I'dp' I C) - - - - . . with ~~~~t or :utioa or all 33. Prrowcrrd t:t1StL Preawad ~ are ta which tbe depreciatioa .pplicable to aur.h "' or;aa!u.ioo. ate _Oowa. except with thON ~ prior to the .trectift date of ==r::' included. ne aIDOUIlt of the .() 1'1"'" appro",al or IIw awardlnl a,cae)'. the award direcd)' pamICIlt to the lala or 10 be fncluc:led a. a cndit w .' :::' O.."rtistte. tIX.ItO-poy slUfl. o..,jJ t "eJOUatioll aad 1ft &Iltidpatlcm of the ,Ward charp 10 the aP$ltOPflata COlt 1"Mlpinc(.1 m.:!!isltift ptUtiutnl.. Pnmiwu lot 0vet1lme. "'~ .w:f& COtte II DeCeNarf to cocnpl, with .bell be the dl~ betwf'tft the amGWlt eJtlta..pay alUtta. &IlCllllultiahilt WCR. are . tJw propoltd dellvety echedule Of period 01 ~aliud oa 1he propet'1J ~ the . .Uowable oaIy with die prior approval of the pu{ormaace. Such COtta ate aDowable ont, ~epredated baaJ. or the ptopeftJ. MWatdi:ll ~ except: tll the exteut that thq would hue beflt (%J ~QI and loa... em the dilpoaltioa or .. \\1ac:A ~ 10 cope wldl .,Oow.bl. If lnc:arred after the ute or the d~bIe pmperfJ'....U IlOt brl'eCOpiad ~ Iuda.. thole resultiDl6v1ll .ward and onl, with the wriueo ~I of a. a ~.. cndit or dwp udet the acddeDta. ucura1 dllaltetl. tnakdowat or the awatdl.ll, qeaq. rol1owflit coaditioftl. . equlplllalt. or oct..... operatiooal 34. Pro/fl#ionoJ HI'Yit:tI t:O$lI. (a) 11ae .. or _II ptOCeQed dlro.ach . bouIaecb or a ....cIic uture. a. CoIU Of ptvCe..toulaDd coanltellt depndatiOll ftIlIllmI accoat .. is nIJec:t.d .. Wbea empIoJea ate perfonainC bIdIrect ~ ~ wbo.... III the ~tIoD allowable IIDder . fur.cUona MIda .. adm1aiatratiOL Dlt!mben or II protaaioD ClC' ~ puqra .. mafAtnanc:L ClC' ~ a filedallkllL aad who .... DOC oUic:eft or (bJ ne pcoperty II ,rralra odlaae .. c.1ra d:e peftOl1BllDCe of en... laboratory employeea or the OII&1lfzatlon. ate allowable. pat of the ~ price or a timiJar Ittal proc.durea. or odIer IiiDI1ar operation. which IUbjec:t to b. c. ... d. of thII panirspla whas and the ,alra or .. II laba InIO accowst Ia are COQtfssaou III ulaN aad C&MOt ruecmcblelll reladcm to the ~ . ~ the depredaUoaCCNlt buia 0( the t:Uaoaabl, he lIlt.emlpted Of otherwite fttSdered lUSd ~ not coatlalcat 1Ipoa IleW ttean. . COtApleted. rec:overy of the coate from the Co'enltAent. (c, A IoN ..... from the railt&re to . d. Wbea Iowerowrall coat 10 the b.1a determine the aDow..bWtJ of COttIIa aatmUl petmi..."bIc Iaaumu:e. except a. Ccwemaat wfJl caul.. . pan.\cuJar call. QO einiJe ractor or lUST otherwfM provided III parqrapb 1&.&.(3). a. Poze.,.,.. ill P/OltlSSitJlttll joumfIl.. apedal c:oaablaatioa or I.don It DeCaIIl'IJ, (d) ~tIoa lor the UN of tha Pqe charaa lor proreuioaal Joumal de.enD1oaUYe. Howent. the foUowtq propert)' waf prowtded throa,h UN publicatiou .... alIOw.bIe .. . aec:eaaary IaClOrl are reIcvat: " aDowucee In fin 01 c:lepredatioa III part of NM&rda coati. whete: (t) ne utura lUKI aeope of the Mn1c:e acc:ordaace wft!a perqraph .. . .. The ntWda papas report W1d . reodered In reladoG to the Mtrica requlnd. (el CalM .. Jo..a WUIr boa _II or ~ bt Iha ConCDlDCllt aDd (1) The IleCeIIiI1 or coalnc:lina for the extrcorcbMrJ"1et. ~ta. or other b. n. ~....Iniecl haparda1l; oa aD ..me.. CODIJderiDc-the OtIanlutioa'a di.posUfODl ahaII he CODIidaed OIl. cae- teIeIl'da pepen publlabed h)' the foamaJ. C&JHlbiUty III the pertJcular araa. by-ca.. baaIa. .... . .Mether ClC'MC ~ Covea:lllleDt"poIlIOred ~ pattenl ohucb coata. " ~ ~ or or lIl1aatarUN:'" . .ctfMn. '. III the ,...... pri<< to Co,enunem ftoia the .... or eJCcbance of prop.:n., Zt. PtutkIpolflIUppOlt Ct1SII. PartidpaIlt awarda. " dws Iha ~ ~ fa paralfal/ll a. support coitI.... di:ect COttIloritema aucb (4)4be impact olCownuMat.... oa ::: .U eXchacW Ia ~ award .. aUpenU or.....~ alJowaaca.lnm the OI1aNutJoa'a ",me.. (..... wbt tIIW .. A1bIit:Inf<<fMtiiNI ~ ~ .lJowucetl. - .tradoD fees pafcf to ClC' probIaaa haw ariacII). a. Public lIlIoraatioa MrVIc:e COItIIDc:IuU > 011 beha1I of perUdpentl or traIaea (but aot (5' Wbetbet the ptOpOI'tloD orCo'~J_Dt the COlt" auodated with p&rIIpIdeta. DeWI , emplo)oeetJ Ia c:aazaectioIl with 1Ileetinp. won: to the ori~t1oa'~ total btIeiIlne .. rele..... _ other forma of WonoaUoa coaIereDCeS. qmpotla. or tralntna projec:tL . IUcb a. to laflueace ... oqanJIaUOIIIIl rnor terVtc:et. SadI coati .... DOnUD, iac:am:d to: 1'1aNe COIfa .... allowable with the prior of lacurrfna the COlt. partleaiufy where the (tJ laIocm otlllatnICt bKtiYtdua1a. posapt. ClC' approwal of the .watdiq aaencY. eemce. raderecI are DOt of . coatfauinC the reaeraI public. . PaIut C'I#t&. .aNnl - "va little "donaldp to work (2) ffttereat lIldMduaJa or JI'OGPI fa .. Coete ot:ro preparInc cIIacf~ ~, ~t,-fa ad coatracta. partidpatinc ir& a..mce ptoFlUD of the reporU. &Ild Otbu doetmteIltl required by the {.,. .N1aether lb. Mt"rIce ce~ .....dOIL award aDd or..-arc:hIna the crt to the extead " more ~1 bf dlracc t (3) DlIIemiMte the re.u1tt oflpClC&lOftd lleCn...ry to make 'lIch.ditcloaurn. (il) rather thu COfttracUftl. and DOnapcmlOred ac:UYitiee. p:epari:Ia ,documdtl aod UI other patent (7) n. qa.l1IicatlOlll of the fndtYldual or b. PubUc: lDforaatioa HtVfce coctI.... coate Ia c::oGMCtioCl with the mmr aod coaca'Il rndertnc the Hl"rice ud the allowable .. direct COttl with the prior ~tioIl 01. UJlited .late. pats CUltoma". r... c:haqed. npeda1ly on GOD- 'PproYaJ 01 the awardillc ~. Sucb coate .ppticadoa where title or royalty.treeUceDle Covemms awud.l. -..... aaallowable..1Ddftect coc... .. reqUited by the Covemmnt 10 he (') ~deqUlC)' of the contraetual qrenumt J7. PublictstJon end ptintJ CtMl6. coavqoed to the CovenuDent. .nd (lit1 amenI, for the Ieft'ic:e (..... dnc:riptioD of the tetrice. .. Public:atioa coati tAdud: the coati 01 COUl:IMUa,"let'Vicet retalina to patmt aGd ..tim.te of time required. rat. of printm, (lncludil'll the proc:e.... 01 c:onriIlhl1D&ttett. auc:h a. advice Oft palent COCIIpeftlltion. and termfDcUoa pnmIfOlUlJ. compotlUon. platHD&Jdna. preI' work. .nd aepyriabt IaWI. tqulaUcml. daua. cnd c.1n addition to the raeton In parqraph b blndifta, aDd the and productl produced by emp!.tyee _creemeatl .re .Uowable (but," .&ewe. retainer lea to the aDowable mll.t be .uch procetI...). diatribution. promotion. paragraph 341- .. . aupported by ntdence of bona fide Hnice. maUi"" and seneral haadJiq. b. Cott of prep.tU\I ilildo.UteI. reporb. llvallable or rendered. b. If theN COlt. are not ideAtifiabt. with . and other doc:ume:1te aftd.of ..archinl the art . d. Co.t ,r lfltaL aCCOUlltit:ll- .ad COftIu1cm, pank:uJ:ar cost obiecd,... 'her ahou1d he to the: "tent 1\f'CICSUt)' to make di.dOlUrel. Hnicn. and related COtte Iacuned In aUocated..u Indirect coat. to aD beIlefitina If'DOt required by the .ward. are con:teCtion with derate or antitrust .tI. actiriU.. or the OI'IaaizaltOll. a:W1owable. eo.lI ill connectioa with (I) a!:d the "pro.ecution of de_If.inet the c.PubUcatloa &Ild priAUna eottl are nllr., aad proMCaUac an1 romp patmt w\"emmeAt. ara an.nowahl<<. Cotris or ae,aL unallowable .. direct COSIs except with the .pplicatlon. or (II) any United Stat.. platent .c:counti1'll aDd conaultiq 1el'Yfea.. and prior approval or the awardiq 'pnc,. appUcatioA. .....lhe award UOeI Dot related costa. fncum:d In ccmnection with d.lhe coat or,.,. chuttt ill jouma1a Ie require.~ Uti. or a royalty-free' JHlt~4t iDfrinpuImt Ulfaltlon. orpaizatiOll adclreued puqraph 2&. lic:enae to h CovenuneJlt. are unallo)ltahle lU~d reorpDiuUOD. are unallowlblto 'InIflI' 3a. ~1M1t' t/.1Id alWCtiM Ct#1I. (alao Me ~ph 43). otherwiae pro.idtd rot Ia the aw.rd (bit... Cotta Incwred lor ordinary or lIonnal 31. hrwiJn plQl/& s.e panpapb e. .. parqrapb 47.). rea~t and alteraUon of I.emu. .... 3Z. Plant HatriIYeMU. Necessuy 3S. Profil6 tznd huH 0If d;,po.itJan "" .IIQwable. Speci<<l ~t and _ npeuea iacarred 10 comply with dqJ~abI. fJI'O~11T tit' oiMr capitol MUU. .lteraUOIl COtta bH:umcl.pec:UleaJJ, for the Govemmnt NelUtty requiremenll or rOt a. (1) Calnt ud .0.... Oft ..Ie. retirement. project are aUowabl. with the prior appro",al radliUet protec:tioo. lndudlna w..el.' or other dl.potitiem of depred.ble property of the awdlll qeGC)'. wUfonna. lAd eqll.lpmellt of petloll!lA!l..... .haD be lftduded in the year ill whfcb they 3a.R.econnniolf co.t.I. Coate Inc:umKllD allowab'" oc:cur I' cred.lt. or cbarsee 10 COltllfOUPin,(.} the I'ett01'lltloo or rehabiUtation of the . . i \ !(frcular A-122 Pe~e t ~ OtpsaJ-tIoA'. fadHUeI to .pp1'OXJmately the coatrol wfthba u ~tU after Il1re. the II' '1Il) II equal to 7$ pei" QlQt 01' more ell tame ClllodUioa afatiq ~taIt.:'r. Co ....Uoa ehaJI refuDd 01' crecUt the acoaomk life C!CdIe Ie=::r:t, ..... ~tofCOwnsmeilhw. ..fair .~lor"""""GltheCOlt.-. ~~=.. to~ we.,. ud lear .xcepted. are aDowabte. . . Ilowe.er.the.coeta of trawl to aD cmnea. uabIe.:Lr One or more aN!' '. 40. &:ctvi~ COttL 'The loUowiDa JacaUoD aha.D be CIllrWdered trn.l ~ III G. byvItielad ~ [or CIH cJ recndUna CCMtI a,.. alIow.ble: coat of "'help ~ with parqrapb SO aDd IIOt polenl1l end ~ . wanted'" advert1llnl- operatiq coati of aD reloCatloD catll for the parpllH of 1hIa .. JtaralUes llQ . patat llr' c:lllpJ I fPt << eISlploymat ofru:e. COIU of operetin& u parap.ph 11 ~ta are DOC .cr=Ued .t amqrUzatioa of.... COlt 01 ~ by educlUooalIelCilll JIf'OII1IIL 1rawt ex~. ,the IocaUoo '- an, NUOIl .nd costa do pun:ble a capJriaht. paCeftt. or rich" indudins food .nd Iodainc of empioJeef ftO( iIId..dc caell of tralllpOttlac ltouchoJd tt.ereto. DCCeINIJ for ... proper pcdomu while en.qed III recnaltiq penclCDCI. tn.vcl pocIa.., . ot the .ward.... allowable uJeN: . catta Gl.ppIicAaDtIlor laterricwt for - do The IoJIowfaa COtta .....ted to relocation . (lJ The eowCl1lllllCld !au . JiceaM ordH proepecdw emplopaeal. aad nlocatioD COttl .... ""UOW.bIe: Ifcht to he.. of Ibe pateat or ~t - iac:aITed iDcIdeat to rec:naltmc!Dt of IlCW II) F.... ad odler COItI uaoc:Sated .nth lZJ n. patad or ~ .... beets emploJeet (tee ,.,.lI1Iph etc). When~. ~...~ of bmer IIome. acI~tad 10 be fIM.Ud. or.... beat oca&ai&adc:io.... qsploJmad qeadet. (2J A . all die a. ~dftJr cIetenDfaed to be ill1raJid. ...... DOt fD exec.. of..udan:l ~l (S) Coat1....~ "= ad (SJThe.... orClOpJriabt.. {OftI~ nin for ndl Mnica are aJIowable. fDtarat ~ 011 a told. be IIDeId'on:iHbIe. . a.lW<<:otiDn COItL . (4J fDc:oawtaxel pdd"'... empIoJee (e) The patat or CllI'1riIh'" expired. .. ReIoc:Ition cot" are cos.. inddal 10 the ..l.ted to reJmbarMd reIoc:atioD coetL b. Sgedd care ahouJd be aen::iaed iD ~ chaDae of dllty .~t (for an cz. RtmIDl aMtL . de~ ...lOftableMaa -"ere the fDdeIinite period or lor .ataeed period of nlll eo Subfect to the IimflatioM deIc:ribed in lOpIUellDIJ ha". beeIl arrived at at . zoe, leA diu 12 IIIODtha) of... ~ employee =s:ha b. tiara. d. of tbIa perqraph. 01.... dIa ana'. Jeapb ~ ..,.: or aPe- rec:n&itmeat of a IlCW employee. feIlt coata ~ aUowat* to the exteIlI thai - (I) R.Dy..tiel paid to penona. ~ Iteloc:atioll costa aN allowable. aubfect to the t:le ...... are ........bIe IDIfIh. 0( IUCh corpmatloa. affWated wi.. .. cquiz.atil . limitation ducribed ID parqra"" b. Co ud d. faden a: natal COItI of ClOIIIpU'able (Z) R.DyalUca pad to anaftUiaCed pattiet. lleJow, poYfded that: ~~.II' any. auket CODdltiou ID the. IncIudfna corpintloaa. ader... qreemm (1) ne move is ror ... beDefit of the a!!C ~~tIYeI ~ble: aad the type. life atered Into ID CIOIl......UoIl dlat . toyer. npecalllq, Cllftdjtioa. ad "..... 01 the Covenlmeat .wad would be ..de. amp . JIIop.m, 1e.Nd. (Z) Reimbune:nent te the empIofee it ID e.:. ReataJ .... aacfer..te aad IaMbeck (3) RoyaItSa pafd IIDder aD qreemmt ICClXd&nce with ... eltab1iahed wriUa 8Ih......... ... alIow.bIe 0DIy up to ... entered Into after aD .ward Is made to U poIic:J c:onaiata:tIy followed br the employer.. "OU1cI be aUowecI !lad the ...llIatlaa. (3) The reuDhanemem doeI DOt exceed the amount tbat .. c.1D ..., cale fInoIWsc . pel" or . etap!oyee'. actual (or reuaaab17 atlmated) . ~-= c::= ::"7.:i:;r"" eopyriptlanDerty owDed br the 1 .xpasea. " Ie... .... allowable onl, ap to the amoun' orauiAUoa. the UllOaISt of rosaltJ ~ b. AIIow.hIe relocatioD COItI for c:urmat that would be allowed laecl title to the IhOuId DOC exceed the COlt wldch woaJd ~, j ..-sployeee are limflecl Co the lolIowfaa: prclpliI't)' wated fD the orpIIkatioa. For thia. beeta allow.cl had the OIIadaUaa ~ (I) ne COlla oIlraD1portaUoa!' the parpoae. a ~ leaN Ja one title thereto. e.=plope. memben or ilia IIIlmedi.ate famlly -1IDdet WbIda ciae party to 1M Ie 8creemat ... s.,,,~ /HIT- and Ida boUebotd. aDd penoaa1 ctfecta to the II able to caatroIor ..taati&Df bLOueDC:e .. Severaace pq..1Io ~...., reran< . DeW Jacatioa. the acUou of the atMr. Sucb 1e....1Ddude. to .. clI~.'" wqea. II . pa,... m (2) ne COItI of liDcliq . DeW home. nc:h '-al .... DOt Iim1ted to daoH betweas (I) addittoD to npIer taluies -...... by ...dyaDce tripe br empJo,ea aDd lpOUIeI ~ oIaaorpNadoa;(U) oraczUseti.ona =UOIII to warIcen whoM ~ to locate Ii~ qaerten nd ~oruy liDdet (~1IKlQ coatro1 throqIi ClOG1iDoD .. n ~ c:- or Ie'NftlDCt PC) JodciDI duriDa the ~ . 1Ip to . oDicaa. cIinctan. or IiIeiDben; uad (WJ aD area OWl ,., e1dat daat ID ..e:. maximum ~ or JO clara. fDdudi.,. .....Uoa aDd . dinctoJ', tn111ee. officer, . cue. it.. raq br (Q "w. (IQ emp1o)er. advance trip lime. or by employee of... oraanb:aUoa or JLiI a:nploree qreaaeat. (iiQ eslabliabe4 polic- (J' Cosine co.... neb ., brokerqe. Jesa1. iauDecliaee ludJy eidMr direc:d)" or tbtoqh .... coutU".... fD effect. ...Implied ...d appraisat feea.lDddent Co the dlapotitiOll carporat1oDl. tnllta. or a1mDar anuaemmta qreement. OIl the oqub:aUoG'. pert. or (iv i oJ the employee'.tormer home. ne.e COI", .. .tUch they,hold.. CIOIltroWna interftt. ~ or the particular employmen~ ~ther with thote deIa1becl in (4) below, do ReDtal CCM" uder Jealel which crute. b: Coata 01 MVel"lDCe papsesl1a are dmd are limited to . per cent or the II1ea price of material equicj In the ....ed propert)' are IDte two catqori.. ., foUowa: the employee', former home. aUowabl. OGIy up to the amounl that would (J) Actual DOnIlal tnmover IIeYtnDCe (4J Tbc conUDuJna COlli Illownmhip 01 be allowed had the oraanizatioa parchaaed paymeall .haJJ be .lJoca'ed to .u.ctivttie the v.c:aallormer bOIM .fter the aett1emcDt the property llQ the date the "lie apement 01'. where the oq.aizaUcm ~ for a or Ie... date of the employee',1lCW w.. executed: ..... clcpm:iaUOD or 11M ftlervt for normal Hvuanc:es such methoc penlIll2eDI home. auch .. m.lnleuace or aUoWlUICeS.lD&iDteAaDce. taxa. bar&nce will be acceptabJc II the c:harae to CWTent bufJdiDp 1IDc:l1J"OUDCfa Jexduaf.. of fWnc up _ but adudlDa IDIUdI expeue aM other operatJonalt reaaoaabJc In lfaht of pe)1ne; npeues). at1Iitie.. ta.x.et. and proper\)' ""UOw.bl. costa. For th1t purpoM. . actually ..de for DOI'Dlalle'ftrance. over lnaUhllce. ..tarial equity In the property ala.. Il the reprelentatl... pett period. aDd If amolUlta (5) Other aeceaW')' ud ...aoaabl. Ie.. Ira aoac:eDceJ.ble or Ja c:a.ocaIable ooIy ch&qed are allocated Co .n .c:tfvftl.. of th t ~ DOrman, inddea. to relocation. lIpoa ... 0CClII'NDCit of IOl:DI remote orpnlzaUoa. ndl a. the costa of c:anceUb3a an tmCXplred contblpD= baa ODe or more of the (1) AbDormaI or ma.. M'Vft1UICI pay It ' Ie..e. dilCOQDectinc ud reialtaWnc IoUowiq en.tIer. hCh. coafec:turaJ aeture thai me..umnet hou.ehold .ppli.IlCe" .nd purchuina (I) n. oqarJJzetioa ... the riJbt to of cost. by me.... of aD .c:cruel will DOt Insuraace .,.iDll loa of or dam'I" to C:=-" the prot::: for. price wblc:b at the achieve equil)' to both partin. Tbua. .cc::n pemmal property. The COlt 01 ~1Ji"l In i'll'iQ, or the e .~art to be . for thl. JlQl1lOM .re DOt aUow.ble. Hown' tlDexplred I.... Ja limited to three time:: ... 8UbetaatiaUy Ie.. than probable lait ~ Covem.IDeD. ~. Ita oblia.tion I monlhl, realaL JIWit.t value .1 the time it I. permitted to. partfdpete to the exUnt of ltelait .hare. lr Co Allowabl. ,..1ocatioA COItI for DeW ~ tht-property (c:ommoDl)' calJed . any tpec:Uic payment. ThUl. aUowabUity " . emp'oyeet are Umfted Co thOle c:lcac:ribed ID ... with . bartaln purcha.. optioD): be c:onaldered Oft a ca...by-ca.. ba.i. ill t (J) .nd (Z) of parqraph b. above. When (%J TItle Co the property pa.... to the nul or occurrence. relocation CCMtllncurred Inc:ideat to the oqanizaUoo It tome time cturtna or after the. 4S. ~oJiad '~rviC(' facilitiu. m:ruitlMnt of new .mploy", h... beeu Ie... period; .. The cost. of .enice. provided by hi&- allowed eIther .. a direct or indirect COlt and (3) The lerm or the lease (inltial term plu. complex or .peciallzed faciUtin openled the employee retiin' for ru.on. within hi. period. covered by b.trtaln renewal option.. the orsaniution. .uch a. electrOnic Circular A-122 - Page l.L . . '. computera ad wfnd tmuMfI. ant .UowabJ. ~ ~u canlinllin6 f1fte:r It!t'lIIiII<Jtion. If III .cth ....c pW.un.. CClftt.ata.td 1ft provided tha ~ for the Mnicet ...t . particular ca... ~..pit. aD reuoc.bIa - Attac. . ,,a. A. n. Inditect eJqleO" 110 , die condltJOM of either It. 01' Co of tbf. cf!oru by che cqaa1udoa;. catcJo CIOIta enoc.tecl ahaD axdude the ..1D4l ad .bllll.."" p-nCNpb ud. ill add.IUc& tab .10 etcount caMot,be cUlCOntfDud Immed.IateJ,..n., ... COtlI dafmed clirecfJr or- ~ .. . -(, ..n, lIenu of"nc:olDt ar FedenJ lhuulcillf'tfut . .trecdve elate of Wmlssatioa, rich CIOIta.,... MttIeIDeat expc.... qualJl)' a. .ppllcable credlta UAdet puqraph f:erc1J)' aUowable withfa the lImltetl4u Nt 4I.1'roin/nt tutd ClKJatiOtl ClIMe&. , '- ' A.5. of AU.c:hmect Ii. " orth In thfa Clrcu1ar. except that cr nch .. Com 01 ptep.U1Itioll aDd mabltawsce of b. The coata of ndI...nca. wfual COtta COft~ aftar tcmJDaUOIl due to 111. . Jlf'OP'dl of ~CtuctIoo Jadud1q bat Dot, material. marbe dwaeci dlndJy to Dqlfrent or . taflUN of the cqu.l.udoo JimJc.cI to on.tb.job. datII'oom. aa4 applicable awn ba.eel 00 ectuI anfe of to di.COfttfmM neb coate IhaU. be .ppmaUccC:: trafAfq. detf&ned to 1Dc:rus. the HMc:et 011 the bailie of a acMduJe 01 ..Uowable. - ' the YOCatf ~YeneN of empIoy"1. rat.. 01' eatib1iahecl.~ dsat (f) d~a ,Co LtJa D/ uufuI roJw. Lou of ueM ..Iae IDcIucUaC traiaJna matena'" texcboob. 1IOt~....... redetalJ)- tappOtted of tp<<la1 too~c:h!D.erJ ud.eqafp~ saWi.. or.qa of traIDNs (cxdudiai cetlYide. of ~ OIi~tIoG. tDdudiq ...... which ..... !lot 10 lite award.. . CJfttdme .compe.atlOlll wWda mfPt &riM by the 0I'Ju.l.u1ioa rar tuteruI par;ioae.. and capitalexpeDd1bft .. aeaeraIJJ aDowable Jf: ~). an4 (I) Mla.ria oltbe director of fd) It delflned to ftCOftf oaJy the qpq.te (1) Such .pedal tooliq. mac:l:&iJlerf, or traJDIq ad .d wIaa the traIssJD( PfOIrI..lIl cot.. of tha ..mce.. n. COIta or ..cb equipment IIlIGt re..oubly capable or uc iii .. coaduc:Ied br tile oqub:atlfla: ar (D) . aenice .haIl cocWIt DOI'IDlaIIy ofbotfa ItI the other 'WOdt 01 the OI'IutiaticD.. taJUoo and r... __ the irabWza .. ill aD , cf.lzect cotta ad Ita allocable ahanr of aD (2) The tDtaut or the CoYemmmt It fDatftllUoa DOt .....tad b, the cqu.l.utlOD, fndmtc:t eot.ta. Acfvuce qrecmenta pursuant protected by trarsafu or tide << by other are .uowabl.. to p.rssraph A.I. of Attachmalt A are me.na deemed apprapriete by die .wardfnc b. Coate or part-time edacatJoa. at a ' particularly impottallt III thie altuatlon. qency: IIDCIcr;raduata 01' I'OIflnduata coI1eac leveL Co WheN the coata iDcumKI rOl' a aervice cI. &nta/ CDIItII. Rata! COtta aader fndud1sla th&t pnmded at the orp,DhatiOD', are DOt materiaL the, ma, be a11oc:ated .. anexpfred le.teI are aaeraDy.no...ablc 0"11 facl1itia. are allow.ble cmiy wbeA the lac!irect COIta. when d.ufr.bcnw1a to haw bea coune:=; pwwuad II relatiw to the 41. TlUH. . n.ton.abl)' DeCaSU7 fOl' the peri'onuDCle or Geld III , the GDp10yee fa DOW worIt.ini ..fa pae.raL taea wlUc:b the orpnb:.atioll the tenDlDated ..&I'd Iaa the nstduaI yalue or- ma, nuoaahq b. u:pac:tad to wod. &Jld II required to pay ad wIIJc:b are paid or of IUcb lea.... II (I) eM UICMIIlt of nda NIItaI are Um.ited to: aCCNCd fa ac:cot'daDca widl teDU*Uy da1med dOH DOt ncetd tIM "MOablc UN (1) Tlablf.nc materiala. accepted aCCOUllUaa pdDc:IpI... aDd yalue of the propeny Ja.aed for the period of (2) Textboob. paymilsta made to local aovemmentl Us lieu the award and suda farthe period .. .., be (') Faa c:Iwps by the educational of taxes wIIJc:b are ~te wich the re.lODIb!e. ucl (U) the oquilatloa ra.au. IaIUtIdIaD. local joverIImeIlt MI"riOta NCliwcI ant all re.aoaabla doN to 6enItJacte. ..... (4) Tuftloa c:bcqed &, the ed&u:atlocaJ alJowable. except far (I) tuait hat wlUch aettJe. or ot.henriM ndacI tba COlt of auc:h IDltitaUoa. or ID baa of tuiUoa. fcetructOll' ~empUOftl .. ....sIabJe to the orpaiutiOD Ie.... nare alto mat' be IDc:luded .. coat of ..r.vte. aDd the nlated &!we of mdirect dlrectl, Or wIdch lift anJ1able 10 tbe alteratiou of nda IMMel ~. pnMcW COIta of date eda.catlcmalludtutloll to the cq&a1zatlOll bated 011 aa unnptIoa afforded eqch alteNtlooa were Meet..". for the , cxtmt tbat the ... Uaereof Ie !lOt III uccu of the Ci<m:nuDeDt Uld bl the'latter cue ...beD pmonDUlCII of tfaa .wvd. aDd 01 naOnabJe the tuftfoa wfa.Ic:b wouJd haw Ilea paid to the .the awardina qmq maka nal1abla,1be ftttoraUoa'iwqufncI br tile ~ of the partidpatlq educatloaaJ IDltitvtioc. () DeCeltal)' aemQ certrftcates. (U) tpeclel leaN. (S) SaI.....ucI nlated cona of iaaUuctora cueumasta 011 wIdda npraeat capital !L &!tt1arum1 cqxJt. II SettIaMat -wfIo aN aaploy... of d&e Grp&tizatlaa. - "'-- ImptolfaHDta. aDd (W)'edenI f:9coa:M tax... a:xp.eDHll ~I tile foUowiaa ant (e) s::'t-time ~..tfoa oI..ch II. ADr rdmd of taxa. 'ad.., paflDtllt to pnenUJ aDowable: , _ - emploJw ~ ~ attaDdiDa dt.ues the cquf:ratlon of Iataett thereoa. wlUch (1) ADooalltfDa.lepL dedcaL .. ctmUar cluriaa workbti hocart DOt III u:cea 01.154 ~ .uowed .. award COlt&. will be COI" s:eaaonabl, taeceshty = Iaoun,pet)'e&l ud cmIJ to the utat chat credited elk.. . coat NCluctioII ar calh (a) The_ prepuatloa aDd .....tatIoD to cftazmItuoes do DOt pamlt the openatioa or refimcI... .ppropriate. to the CownuDenL ewardina qmq' or ~ daUu ad daaeea or .tt.......~~ at duNe d.r n:plu . C. Tel'llliMtiOtl t:OIIIL TennJutloa of eupportinf elata wtdl racpect to the workIq hour&: otherwIac ..a ~MUoa <<w.nk seumrJIy Jive riM to th4t lDcurmlee terminated portioza of the .ward. aJeta the .. WUlDowable. of COtta. or the aeed for epedAll treatment 01 te.t'miMtfoo .. for def.ult. (See pa.rqrapb f.L Co CcNta of tufUcm. feet. trafnlna materiaIa. 'COttl. which would DOt ....llriMD had the 01 Attadsmat L OMS Qrcu1ar No. A-U~, ucl tlXtbookt (but Dot eubtlatancl. aalary, ar award DOt been terminated. Cott prindptea ad 'aJ other amolllSllCllta) ill c:oaDedioD with c:overin( these ltesna.te Nt forth below. (h) Tbe termhsatiOft ud..ttlaIIct of full-time education. illdudJq that provided at They ant 10 be ued In coafunc:tiocl...lth the eubawvcla. the OfIazUutioo'a 0W1I r.dJitiea. at. .other Pf'O\'fIlODl of thie Qn:ut.r III - (2) Re..onabl. c:oatlt for the Itorqe. r:t;raduata (but DOt IIIlderpdaateJ coUqe tmninatioa situaUona. tre.ponatioQ. protec:ttoa. aDd &positioa of eL lift anowable oalf wbcu the COUIM or .. (AtlltnoII ItelN, The COlt fIf ItnlI propel1y pnrridtd b)' chi Cown:u:Dat or dqree pursued .. rel.ted 10 the rMlId 1D ...hkh re"oMbly anbM oa the orpailtation'. other acqufnd or produced for the cwvcI: GOrpt the eaaployea .. ao.' worIdnc or.., work .haD DOt be aUowable unlet' thf' wheD l1am", ant reImburMcI fer c&.po..W reuoubl)' be expectad to won. aa4 oaJy OI"llIn1uUOIl nbmitl evideDc:e that It would at . predetermined amowst 1ft acc.on:la.1:lce .hers the COtta receiva the plio: approval or not ret.iD .uch ItetCI at COlt without . with Attac:hmeut N of OMB Cln:ulat A-na. the Iwatdina apney. SIICh COtta ..limited aaatalllf.nc a lot.. In decidina ......ther .w~ (3) Indirect COtta related to MI.n. ad to the COIta attributable to a total period ACt itema are realOn&bfy anble oa other wori or w'let iJIazmtd aa eettIeaMDt &xpeOMt ta to exceed oce lChoo1 )'.ar for ..ch ..plo)'ft the oraaailtaUcm. the .wud.iDt <<iencY .hould nbpansrapbt (1) and (ZJ of thIa parqnph. to traiDld.lilamuaWLI ca... 1M period ID&J . CClt'IIider the cqaaiAtioa'. plue ud ordel'll Nonn.lly. .1ICh indinct coati tbaIJ be JimitlK! be, extaded. , lor current ad ~uIed activity. to frinac baefita. OCC'IlpUICf COlt. ad cI. Co.ta of atteadaACle or up to 18...a. ContemporaJleOWl parch.teI of common immediate avpervl,lolI. > per ..plo1- per )'alat apvi.li~ad ' ltelftl by the OI"llaJliudOll ahaU be rq.rded t ClaimII undu .uJxzWOlfb. a...Ima lmcMr PI'OIJ'&IIlI apedficalJy dell&Ded to ca!wIoe a. evfi!eoc:e that such Itema are n.eon.bl, .ubawvcla.lDdudlnc the aDocable porticm 01 the afJectiV&DeU of CXlCUtiv.. or mmqel'll ....ble OIl the OI'1aniudoa.. other...ork. Any c1.imI whkh aN commoa to die award. aDd or to prepare empIo,... ror aoch poeitiona accept. nee or CC1llUnOft ItetCI .. allocable to to other work or the OI'IaniPUoa.. are allowable. Such COtta Iftdud. aarollio.e.ot the tenn.iJlated portioft of the .....a.rd .b.U be pneralJy &nowable. AJlapprvpnata ahuc of .feal. tralmn, ..tafaIa. tatboob &ad ,limited to the extmt chat the qua.ntitlel of chi otI.mz.tSoa'.tndirect expenN_N)' be nlaled c:Iuup&. a:ap:r...' taI.ta.Mt. .uch itemt Ol'l balld. 1ft tmul1. ad on order allocated to the aJDOUDt of ~tI wl.da .ubtittaDce. ud tra eo.ta aIlowab1a are In exee.. of the rea.enable quantitati~. .ubeol1tractor/,ubsnnteet; provided that the UIlder thIa pa.rqrapb do DOt fndude dlo.e lar reqt.tltemCllta of other work. eaaount allocated .. ocherwiM coaa1ateut ~ that ant put of. ~ted ~ - CirCular ^-122 : P.Aa.. 1":\ cumculwl'lt, which are allowllble only to thll aUorMUun on the bu.. of work or time perlod UnlvCt'lllties R_arch Auoc:iation. - extent lie-I fort.b in b. and Co above. bcnefj,ed when approprlllte. Advance InCOt'pOl'ated (National Aecelt:1'lltlon l..Ilbl. e< Maintenance expense. and nonnlll agreement. are particularly important. Naonne. mlnai. dep~latlon or Cair rental. or. Cac.ilitie. e. Dirflct charge. for foreign trovel coat. are Unlveraltie. Corporation for Altno~herlc owned or It~a.ed by the organiution for llilowable only when the travel has received Reaearcb. Bou1det. Colorado Cnin~ p~e. are allowable to the extent prior approval of the awardi", agency. Each Nonprofit lnturaael CompaDietl such as Blue II"t Corth in paragraph. 9. %2. and 42- II"parate foreign trip mUlt be approved. For Cron and Blue Shield OrganiutlolU r. Contritsutiana or don.ation. to purpose. of this pro\;.lon. foreign travel I, Other nonprofit orpnizationa at negotiated educational or training institutiOM. Including defined a. any travel outside of Canada and with .",areline ...end". tha donation of facilltie. or other properties. the United State. and its territories and (R Ooc..m:a PlW f-f-et L-fS !""l aad .clJolanh.lp. ot fellow.hip.. are poue1I.iana. However. fot an organization M.I.INQ COClll '1""" unallowable. located in foreign countries. the-term "foreign S. Training aad educ.ltion COlts In exce.. of travel" mean. travel outside that country. thoae otherwiM allowable under paragraphl b. and Co of thil paragraph may be allowed (Circular No. A-WJ with prior approval of the awardini agency. AUac::bmeDt C To be COntldered for approvaL the Ol"ganization must demonstrate that IUch Noapt'06t Orpalutioo. DOt Subject to this cos~ are coctiatently inCWTed punuant to aD Ci.n:u1ar efUtbUthed tnlhting and education program. Aero.pace Corporation. El Segwtdo. and that the coune or degree pU1"Sued I. California relative to the field in which the employee i. Argonne Univenitie. Alfodation. Chicago. now working 01' may reasonably be expected minois . to work. Associ~ted Universities. Incorporated. 49. Tro.l.portation costs. Tranlportation Washington. D.C. coat. Include frelgbt. expre8l. cartll8e. and Auociated Univenitie. for Re.earch and pulItage chargea relating either to goodt Astronomy. TuClon. Ari%ona pun:based.lt1 procell. or delivered. The.a Atomic Casualty Commiuion. Wuhington. coat. are allowable. When such COlt. can readily be Identdied "ith the items involved. D.C. Battelle Memorial Institute. Headquartered in they may be directl)' charged a. Columbus. Ohio transportation cost. or added to the coat of Brookhaven National Laboratory, Upton. Il1ch items (see paragraph %3). Where New York Ident1ficatlon with the material. received Center fat Energy and Environmental car.not readily be made. transportation costs may be carged to the appropriate Indirect Reaearch (CEER). (University of Puerto cost ar.counts if the organization follows a Rico) con.istent. equitable procedure in this . Commonwealth of Puerto Rico. Charle. Stark respect. Draper Laboratory. Incorporated 50. Travel costs. Cambridge. MlISsachusetls. Comparativa a. Trevel cosu are the' expenses for Animal Research Laboratory (CARL) 1ranaportation. ~ng. lubsistence. and (University of Tennenee). Oakridge. relllted Item. Incurred by employee. who are Ten.,euee in traYelltatua on official bUline.s of the - Environmental Lnetitute of Michigan. Ann organi%.ation. Travel. costs are .llowable Arbor. Michigan - lubje<:t to paragraph. b, throU8h e. below. HanIord Environmental Health Foundation. when they ~ d.'rei::tly attributable to .pecific Richland. W8Ihington work under an award or are incurred in the DT Reaearch Institute. Chicago, nUnoi. normal CC".trSf! of admini.tration oC the wtitute for Defense Analysi.. Arlington. organ.l:a tion. Virginia b. Such COIta may be charged on an actual Institute oC Cu Technology:Chlcego. minola basi.. on . per diem or mileage basis in Ueu Midwest Research Institute. Headquartered of actual co.ts incurred. or on I combination in Kaalas City. Miuouri of the two. provided the method used results Mitre Corporation. Bedford. Massachusett. kt chargel conli.tent with those normally Montana Energy Research and Development allowed by the organlution in its regular Institute. Inc.. (MERD1). Butte. Montana operations. National Radiological A.tronomy Co The difference in co.t between fl1'St-clul OblMlrvatory. Creen Bank. West Virginia air .ccommodations and less than firat.da.. Oakridge Auociated Universities, Oakridge. air accommodations i. unallowable except Tenneasee when leu than fint-elau air Project Management Corporation. Oalcrldge. accommodations .are not re8!lonably Tenneuee a\'allable to meet necenery miasion Rand Corporation. Santa Monicll. California requirements. .uch 81 where Ie.. than fU'lt. Research Triangle Instltute. Research c1as. accommodations would (I) require Triangle Park. North Carolina circuitoll' routing. (ii) require travel during Rh'erside Research Institute. New York. New unreasonable hours. (Iii) greatly increase the York duration of the flight, (Iv) reault in additional Sandia Corporation. Albuquerque. New cost. which would offset the transportation Mexico .a\'ings. or (v) oner accommodation. which Southern Research institute, Birmingham. an! not reasonably adequate for the medical Alabama needs of the traveler. Southwest Research Institute. San Antonio. d. Naocenary and reasonable costs of Texu family movemen18 and per.onnel movementJ SRlInternatlonal. Menlo Pan:. California uf a speelal or mass nature are allowable, Syracuse Research Corporation. Syracu~, pu.."liultnt ti) paragraphs 40 and 41. subject to New York ~- Exhibit 7 OMB Circular A-I33 -17- ""lIh . ~ ~ II i~~F]~'llllrh~ l~f:J~~J~r~hP~:J~J 'lllrl~FJI~~ [l~ll~fni'I'I~:III~rqDI II, 1.111.", IIh.... .. lbo....g .. 1~ll... , Ii In., I.. 1lb,,.,.dU puo" h....Jt III lb.....llll I.. . . , 4" lbll..",' . c(')z~ OJ S 0 -0 c..3: :J -'0 C s:u Co c.n:Jc. :J:J (1) C ';:;: C D) =I:: :=I.. (1)c. ., - 1::J (I) wAl AI ., a.:::J-. 0"00 (') - wO'< S:~~"'tl (Q D) - ,OJlo~ CD (Q CD - -4 CD ::0 ~ cO a ..... CD 0 CD ...., (1) AI (1) <-:J(I) 3 CD' :J _. w ..., ~ 0' ~ r- w. 3 - 0 I CD -'0 I ZAlg~1 :::J g,:::t(l) ..... -. 0 G> O:JAlo (1):J D) (I) (') C. ~ go3/ :::J (1)s:3 0- n. OJ (1) , -. :J, o _I :J (I) I w w ~I (;1 N -l -l ~-'~'-'-~,- 35278 Federal R ,Ler I Vol. 62. No. 125 I Monday. Jw O. .1997 I Notices OFFICE OF MANAGEMENT AND except as otherwise specified in comments on either a 3.5 or 5.25 inch BUDGET 9_AOO(a). diskette in either WordPerfect 5-lor 6.0. The standards set forth in this WordPerfect for Windows. or ASCII Audits of States, Local Governments, Circular which Federal agencies shall format. When a diskette cannot be and Non-Profit Organizations apply to non-Federal entities shall apply provided. it would be helpful if the to audits of fiscal years beginning after comments were printed in pica or an AGENCY: Office of Management and June 30. 1996. with the exception that equivalent 10 characters per inch type Budget. 9 _' 305 (b) applies to audits of fiscal on white paper so the document can be ACTION: Final revision of OMB Circular years beginning after June 30. 1998. The easily scanned into a computer format. No. A-133. final rescission ofOMB requirements of Circular A-128. FOR FURTHER INFORMAnON CONTACT: Circular No. A-128. and notice of although the Circular is rescinded. and Recipients should contact their document availability of the Provisional the 1990 version of Circular A-133 cognizant or oversight agency for audit. Circular A-133 Compliance continue to apply for audits of fiscal or Federal awarding agency. as may be Supplement. years beginning on or before June 30. appropriate in the circumstances_ 1996. Subredpients should contact their pass- SUMMARY: This revision of Office of All comments on the provisional through entity, Federal agencies should Management and Budget (OMB) "Circular A-133 Compliance contact Sheila O. Conley. Office of Circular No. A-133. re-titled "Audits of Supplement" should be in writing. and Management and Budget. Office of States. Local Governments. and Non- must be received by November 30. 2997. Federal Financial Management. Profit Organizations." establishes Late comments will be considered co the Financial Standards and Reporting uniform audit requirements for non- extent practicable. Branch. telephone (202) 395-3993. Federal entities that administer Federal ADDRESSES: A copy of the Circular may SUPPLEMENTARY INFORMA nON: awards and implements the Single be obtained from the OMB fax Audit Act Amendments of 1996. which information line. 202-395-9068. A. Background were signed into law on July 5. 1996 document number 1133: OMB home The Office of Management and Budget (public Law 104-156). OMB Circular page on the Internet which is currently (OMB) received approximately 80 letters No. A-128. "Audits of States and Local located at http://www.whitehouse.gov/ providing approximately 600 individual Governments," issued in 1985. is WH/EOP/omb, under the captions comments in response to its Federal rescinded. as a result of the "OMB Documents," and then "Grants Register proposal of November 5. 1996 consolidation of audit requirements Management;" or by writing or calling (61 FR 57232-57249). Letters came from under Circular A-133. the Office of Administration. Federal agencies (including Offices of One of the more significant revisions Publications Office. room 2200. New Inspectors General). State governments is that the threshold for wren an entity Executive Office Building, Washington, (including State auditors). certified is required to have an audit is raised DC 20503. telephone (202) 395-7332. A public accountants (CPAs). internal from $25.000 to $300.000. This will single copy of the provisional "Circular auditors. non-profit organizations significantly reduce audit costs for A-133 Compliance Supplement" may (including colleges and universities). many small entities. Other significant be obtained from EOP Publications. professional organizations. and others_ changes are: a report submission due Office of Administration. 2200 NEOB. All comments were considered in date which is shortened from 13 to 9 Washington. DC 20503 (telephone 202- developing this final revision. months and a report submission process 395-7332). The provisional "Circular The November 5. 1996, Federal that includes a data collection form and A-133 Compliance Supplement" is also Register notice, requested public streamlined filing requirements available from the OMB home page. comment on ttfe proposed revision and (!!i_.320): a new risk-based approach Comments on the provisional retitling of Circular A-133. "Audits of for major program determination "Circular A-133 Compliance States, Local Governments, and Non- . (9 _.520): and. additional guidance Supplement" should be mailed to the Profit Organizations," and proposed for program-specific audits (3 _.235). Office of Management and Budget. rescission of Circular A-128. "Audits of audit findings (3 _.510). and audit Office of Federal Financial States and Local Governments." Section findings follow-up (!!i _______..315). Management. Financial Standards and B presents a summary of the major This Notice also offers interested Reponing Branch. Room 6025. New public comments grouped by subject parties an opportunity to comment on Executive Office Building. Washington. and a response to each comment. Other the provisional "Circular A-133 DC 20503. Where possible. comments technical amendments were made to Compliance Supplement," provided as should reference the applicable page conform to professional auditing Appendix B to Circular A-133. numbers. When comments offlve pages standards and to increase clarity and However. due to its length. the or less are sent in by facsimile (fax), readability. provisional "Circular A-133 they should be faxed to (202) 395-4915. The November 5. 1996. Federal Compliance Supplement" is not Electronic mail comments may be Register notice also requested comment included in this Norice. See ADDRESSES submitted via the Internet to RAMSEY- on two proposed information collection for information about how to obtain a TIlM1.EOP.GOY. Please include the full requirements contained in the proposed copy. body of electronic mail comments in the revision to Circular A-133. A summary OATES: The revised Circular is effective text of the message and not as an of the comments received relating to the July 30. 1997. Federal agencies shall attachment. Please include the name. proposed information collection adopt the standards set forth in this title. organization, postal address. and requirements and response to each revised Circular in codified regulations E-mail address in the text of the comment is published in a companion not later than August 29. 1997. message. Notice in this Part in today's Federal The standards set forth in 9 _ .400, To facilitate conversion of the Register. which apply directly to Federal comments into a computer format for Interested parties may wish to refer to agencies. shall apply to audits of fiscal analysis. it would be helpful if this Notice for a detailed discussion of years beginning after June 30. 1996. respondents would sel1d a copy of the following information collection J ister / Vol. 62. No. 125 / Monday. J\ .30. 1997 / Notices 35: Federal' matters: estimates of reporting burden; commenters supported these significant applies to audits of State and local neeessity of the data collection form: revisions. many commenters expressed governments for fiscal years beginnin data collection form duplicates other concern about other proposals included after June 30, ]996. reported information; data elements in in the proposed revision, on which Comment the data collection form: suggested OMB specifically requested public additional data elements for inclusion comment, such as the audit coverage for In light of the proposed rescission 0 in the form; who should sign the data the allowability of charges to cost pools. Circular A-128. several commenters collection form for the auditee; level of and whether the auditor should prepare requested that the title of Circular A- form's specificity provided in the and sign the data collection form_ Circular and supplemental forms; data Response: The most significant 133 be expanded to also include India; collection form sent only to the Federal provisions included in the proposed tribal governments. clearinghouse; applicability of Freedom revision to Circular A-] 33 that Response: No change was made as a ofInformation Act and other Federal commenters strongly supported are result of these comments. For single laws; report copies: report submission included in the final revision to Circular audit purposes, Indian tribal and distribution: Federal clearinghouse A-] 33. Several proposals, such as the governments are included under the responsibilities: requirement for the audit threshold of $300.000. are based definition of "State" in Circular A-133 auditor to prepare and sign the data in the 1996 Amendments and. therefore. based on the statutory definition of collection form: increased costs for are adopted in the final Circular. Each "State" in the Single Audit Act of 1984 auditors to prepare and sign form; of the proposals on which OMB and the 1996 Amendments. retention of audit workpapers; schedule requested public comment are Effective Date of expenditures of Federal awards: addressed in the following sections or summary schedule of prior audit accompanying Notice. Some of the Comment findings; summary of the auditor's comments resulted in changes to the results; auditor's schedule of findings final revision. Several Federal agencies questioned and questioned costs; report due date: Consolidation of Circular A-128 Into which audit requirements are effective and effective date for the data collection form requirement. Circular A-l33 prior to codification of the revised Circular in a Federal agency's Readers of this Notice should Comment regulations. Paragraph ten of the especially note the discussion of the requirement for the auditor to prepare All but one commenter strongly proposed revision states that the and sign the data collection form due to supported the proposal to consolidate standards set forth in the revised its impact on the text of the Circular. Circular A-128 into Circular A-133. and Circular shall be adopted by Federal Other matters addressed in the rescind Circular A-128, Reasons cited agencies in codified regulations not later accompanying Notice also resulted in include less confusion for auditees and than six months after publication "in revisions to the text of the Circu lar but auditors. uniformity of audit the Federal Register. so that they apply are not repeated in this Notice. requirements for non-Federal entities to audits of fiscal years beginning after that administer Federal awards. and June 3D, 1996 * * * In the interim B. Public Comments and Responses consistency with concepts included in period, until the standards in this Overall Reaction to {he Proposed the 1996 Amendments. One Federal Circular are adopted and become Revision to Circular A-l33 agency that oversees Indian tribal applicable. the audit provisions of Comment governments expressed concern about Circular A-128. issued April 12. 1985, rescinding Circular A-128 because and Circular A-133. issued April 22. Most commenters overwhelmingly many Indian tribal governments have 1996. shall continue in effect." Several supported the proposed revisions and not yet submitted audit reports required Federal agencies also requested believe that the revisions will greatly by Circular A-12ft for audits of fiscal increase the efficiency and effectiveness years beginning on or before June 30. clarification about how the of the single audit process. Several State 1996. requirements of Circular A-133 should auditors commented that the proposed Response: Pursuant to the 1996 be codified in Federal agency revision to Circular A-133 was similar Amendnl!'n[s. which establish uniform regulations. to what they expected. particularly in audit requirements for non-Federal Response: The sentence regarding the light of the changes included in the entities that administer Federal awards, interim period was removed from the Single Audit Act Amendments of 1996 the final revision to Circular A-133 revised Circular. The 1996 Amendments (1996 Amendments). which were signed extends its coveragp to include State (31 V.S.C. 7505(a)) require that "each into law on July 5. 1996 (Public Law and local governments_ In response to Federal agency shall promulgate such 104-156). Many commenters were the Federal agency's concern about amendments to its regulations as may be pleased with some of the most Indian tribal governments. it should be necessary to conform such regulations significant changes. such as: (a) the noted that States. including Indian tribal to the requirements of this chapter and increased threshold that triggers an governments for purposes of the of such guidance {provided by the audit requirement from $25.000 to Circular. andlocal governments are Director of OMB to implement the 1996 $300.000: (b) the risk-based approach to subject to the requirements of Circular Amendments]." Federal agencies shall determining major programs: (c) the A-128, issued April 12. 1985, for audits uniformity of audit requirements for of fiscal years beginning on or before adopt the provisions of the revised States. local governments. and non- June 30. 1996. Sanctions are provided in Circular not later than 60 days after profit organizations: and. (d) the Circular A-128 and are available for use publication of the revised Circular in removal of the current requirement to by Federal agencies. as considered the Federal Register. OMB is report virtually all audit findings and necessary, in instances of continued coordinating an effort to facilitate questioned costs. A few commenters inability or unwillingness to comply Federal agency compliance with this requested that the audit threshold with the requ irements of Circular A- adoption requirement. remain at $25,000_ Although most 128. The rescission of Circular A-128 35280 Federal r ~r I Vol. 62. No. 125 I Monday. Juri '. 1997 I Notices - Limited Scope Audits for SubrecJpienrs expending under $300.000 in Federal OMB believes that this approach to With Federal Awards Expended ofLess awards could result in a return to grant- designing subrecipient monitoring Than $300.000 Annually bYlrant auditing of such entities. procedures should result in cost- Comment esponse: The 1996 Amendments (31 effective monitoring and minimize the U.S.C. 7502(1)(2)(B)) require pass- return to grant-by-grant auditing. This is Many commenters requested that through entities to monitor a a matter of particular importance to further guidance be provided in the subrecipient's use of Federal awards OMB and small recipients of Federal Circular to assist in determining what through site visits. limited scope audits, awards. Over the next few years. OMS types of procedures would qualify as or other means. In light of the increased and Federal agencies will review "limited scope audits to monitor threshold that triggers an audit implementation of subrecipient subrecipients. " requirement under the Circular to monitoring procedures bypass-through Response: The 1996 Amendments (31 $300.000 or more in Federal awards entities to determine whether additional U.s.C. 7505 (b)(l)(A)(ii)) prohibit a non- expended per year. pass-through entities guidance or subsequent revisions to the Federal entity from charging to a will need to make appropriate changes Circular is warranted in this area Federal award the cost of a Circular A- in their agreements with subrecipients Audit Coverage for the Allowability of 133 audit when the amount of Federal to reflect that Circular A-133 audits will awards expended is less than $300.000 no longer be required for non-Federal Charges to Cost Pools per year. except that OMB may allow entities with total Federal awards Comment: the cost of limited scope audits to expended of less than $300.000 Several Federal auditors and Federal monitor subrecipients. A sentence was annually. agencies supported the proposed added to the final revision of Circular Since pass-through entities are held A-133 (9 _.230(b)(2)) which defines accountable for Federal awards treatment of costs charged to cost pools limited scope audits to include only administered by their subrecipients, used to support an indirect cost rate or allocated through a State/local-wide agreed-upon procedures engagements they will also need to review their central service cost allocation plan conducted in accordance with either the overall subrecipient monitoring process. American Institute of Certified Public and decide what. if any. additional (CAP). Most State auditors. State agencies. CPAs. and college and Accountants' (AICPA) generally monitoring procedures may be university commenters strongly accepted auditing standards (GAAS) or necessary to ensure subrecipient opposed the proposal stating that the attestation standards. that are paid for compliance. Monitoring procedures. proposed revision appears to: (1) elevate and arranged by a pass-through entity such as on-site visits. reviews of and only address one or more of the documentation supporting requests for coverage of indirect costs and CAPs to following types of compliance reimbursement. and limited scope major program status. which would requirements: activities allowed or audits (e,g.. agreed-upon procedures exceed the requirements of the 1996 unallowed: allowable costs/cost performed over eligibility Amendments: (2) require coverage principles: eligibility: matching. level of determinations made by subrecipients). regardless of materiality: (3) violate the effort. earmarking: and. reporting, can be more targeted and less costly risk-based approach to determining For subrecipients that expend less than a full Circular A-133 audit_ OMB major programs; and. (4) single out than $300.000 in Federal awards expects pass-through entities to indirect costs for extensive coverage annually. the cost of any audits or consider various risk factors in beyond other elements of cost charged attestation engagements. other than developing subrecipient monitoring to Federal awards. Some commenters limited scope audits described in the procedures. such as the relative size and noted logistical difficulties that may previous paragraph. are not allowable complexity of the Federal awards result from the timing ditTerences costs and. therefore. cannot be charged administered by subrecipients. prior between when-costs are charged to to any Federal award. This provision experience with each subrecipient. and pools used to support an indirect cost would prohibit the cost of a financial the cost-effectiveness of various rate or CAP; when the plans are statement audit conducted in monitoring procedures. submitted and negotiated; and when accordance with GAAS or generally For example. if a pass-through entity indirect costs are actually charged to accepted government auditing standards provides a large percentage of the only Federal awards. Several college and Federal award it expends to 10 university commenters opposed any (GAGAS) issued by the Comptroller subrecipients that each expend less than additional requirements in this area General of the United States from being $300.000 in Federal awards annually, because they believe that Federal cost charged (by ('i1!l('r a pass-through entity then the pass through entity should negotiators perform some sort of audit of or subrecipient) to Federal awards for a carefully consider the most cost- costs charged to cost pools under subrecipient that expends less than effective method of monitoring these Circular A-21. "Cost Principles for $300.000 in Federal awards annually_ Federal awards. Perhaps the majority of Educational Institutions." Most Subrecipienr Monitoring this Federal award is provided to two commenters requested that additional Comment subrecipients. The pass-through entity guidance. either in the Circular or the might consider conducting site visits at compliance supplement. be provided to One State agency recommended that these two subrecipients and simply assist auditors in this area. pass-through entities no longer be reviewing the documentation Response: The proposed revision required to monitor subrecipients supporting requests for reimbursement included certain phrases that were expending less than $300,000 in Federal from the other eight subrecipients. intended to clarify the auditor's awards. Some pass-through entities Conversely. if a small percentage of a responsibility for testing and reporting expressed concern that they might be Federal award is provided to on the allowability of costs charged to expected to perform audit procedures subrecipients that each expend less than cost pools: (1) used to support an for each of their subrecipients not $300,000 in Federal awards, the risk to Indirect cost rate. or (2) allocated covered by Circular A-133. Some the pass-through entIty is most likely through a State/local-wide central subrecipients stated concern that the low and. therefore. the,monitoring service CAP (as fully described in requirement to monitor subrecipients procedures could be minimal. Appendix C of Circular A-87, "Cost ~~ Federal" ister j Vol. 62. No. 125 / Monday. 1,. 30. 1997 j- Notices 35. Principles for State. Local and Indian In this situation. the auditor is strongly Response: The primary reason for Tr'ibal Governments," issued May 4, encouraged to test actual costs charged revising the approach to determTning 1995 (60 FR 26484)). The suggested to cost pools during 1997 as part of the audit cognizance is to provide a language was included in the proposed 1997 audit. since 1997 is the base year. straightforward method that can be u: revision to address the timing of when or as part of the 1998 audit. since 1998 by the majority of auditees without th costs charged to cost pools used to is the year when the proposal will be involvement of OMB. The previous support an indirect cost rate or allocated finalized. submitted. and negotiated. If policy whereby OMB was responsible through a CAP should be audited. This the auditor tests-the actual costs charged for assigning audit cognizance did nor area presents unique timing to the cost pools as part of either the work well, particularly for non-profit considerations due to the manner in ] 997 or ] 998 audit (or can appropriately organizations. The proposed revision which indirect cost rates and CAPs are rely on the work performed by other includes an approach whereby the developed. Indirect cost rates are auditors in these years). then the auditee could readily determine its usually based on costs incurred in a auditor's responsibility in 1999 will cognizant or oversight agency for audit base period and applied prospectively_ relate primarily to determining whether based on which Federal agency Costs allocated through a CAP are the appropriate rate was applied in provided the predominance of funding typically based on the actual costs 1999. However, if no prior audit work However. several commenters noted incurred in the current year and also was done relating to the actual costs that the proposal may have unintended previous years. charged to cost pools used to support consequences on some State and local OMB did not intend for costs charged the rate used to charge a major program governments that, under Circular A- to cost pools used to support an indirect in 1999. then the auditor conducting the 128. were previously assigned cognizan cost rate or allocated through a CAP to 1999 audit would be expected to test agencies for audit by OMB in 1986 and be audited every year as a major such costs. in addition to determining have developed strong working program regardless of materiality, As a whether the appropriate rate was relationships with their cognizant result of the comments received. the applied in 1999. agencies. suggested language relating to the This area is of particular concern to In response to the comments received. treatment of indirect costs and costs the Circular was modified to reflect that allocated through a CAP was removed OMB and Federal cost negotiators. current cognizant agency assignments from 9 _.500. 9 _,50S. and Contrary to the views expressed by shall continue in effect for States 9_ .510 of the final revision of several commenters. Federal cost (Including Indian tribal governments) Circular A-133_ negotiators do not typically audit costs and local governments that expend Although specific mention of indirect charged to cost pools used to support an more than $25 million a year in Federal costs and costs allocated through a CAP indirect cost rate or allocated through a awards until fiscal years beginning after was removed from the Circular. this CAP. In the next few years. OMB and June 30. 2000. Thereafter. the method removal does not diminish the auditor's Federal agencies will monitor the prescribed in S 400(a) shall be used by responsibility for such costs. coverage of indirect cases under Circular State and local governments for Accordingly. when indirect costs or A-133 audits to determine whether determining audit cognizance. This allocated costs have a direct and additional guidance or subsequent delay should provide sufficient time to material effect on any major program. revisions to the Circular are warranted. smoothly transition from one Federal the auditor is responsible for OMS may also consider if the coverage agency to another. or to request that determining the propriety of costs of indirect costs should be addressed OMB designate a specific cognizant charged to cost pools that are used to separately from Circular A-133 audits agency for audit assignment. as calculate an indirect cost rate or in the future. possibly as separate circumstances warrant. However. for allocated through a CAP in the year in engagements using the AICPA's State and local governments that expend which the charges affect a major attestation standa~ds. more than $25 million a year in Federal program. Because it may not be practical Audit Cognizance awards but do not have a currently to perform such tests retroactively (e,g_. assigned cognizant agency for audit. when there is a change in auditors), Comment S _AOO(a) shall be used to determine OMB encourages the auditor to perform One Federal auditor requested that audit cognizance upon the effective date tests of costs charged to cost pools of the Circular. during the period when the actual costs OMB delay the effective date for the OMB expects to designate specific were incurred or during the period new method of determining the audit cognizance assignments for only a when the proposal or plan is finalized, cognizant agency for audit for State and limited number of entities. However, if rather than waiting until the period local governments because guidance a change in audit cognizance is desired. when the rate was applied or in which relating to changing from one cognizant then auditees are expected to first work the costs were allocated. Further agency to another has not yet been through their Federal awarding agencies guidance relating to audit coverage of provided. Another Federal auditor to obtain a reassignment. If the request indirect costs is provided ili the requested that the Circular name that cannot be adequately resolved among provisional "Circular A-133 agency as the cognizant agency for audit the Federal agencies. then the Federal Compliance Supplement," for every State based on the large agencies may contact OMB to resolve To illustrate the unique timing amount of Federal funding provided by the matter. In response to several considerations relating to indirect costs that Federal agency to States. Another commenters, this process will permit and the impact on the audit process, Federal auditor opposed having one auditees to be involved in future assume that the actual costs charged to Federal agency responsible for audit changes in audit cognizance. cost pools for 1997 form the basis for the cognizance for all States. Several State The proposal indicates that. in indirect cost proposal to be submitted in auditors and State agencies requested instances in which OMB makes a 1998. and the final negotiated indirect that they be permitted to retain their specific cognizant agency for audit cost rate that will be applied in 1999. current cognizant agency for audit. and assignment. the assignment would be Also. assume that indirect costs charged that they have input into future changes, published in the Federal Register. OMB to a major program in 1999 are material. if any, in audit cognizance. reconsidered the necessity of 35282 Federal P r / Vol. 62. No. 125 / Monday. jup-{ . 1997 / Notices performing this procedure and removed Response: No change was made as a It has been a longstanding Federal this provision from the final Circular. result of these comments. The Circular ' policy that the recipient of Federal However. when specific assignments are states that the predominant amount of funds is required to establlsh'a system made by OMB, OMB will inform the direct funding shall be based upon of internal control to provide reasonable parties involved (e.g.. the audItee and direct "Federal awards expended" in assurance that It is managing Federal the Federal agencies involved) of the the recipient's fiscal year. ~ _.205 of funds in compliance with applicable assignment. the final revision addresses the basis for laws and regulations. Also. the 1996 Comment determining the amount of Federal Amendments (31 U_S.C. 7502(e)(3)) awards expended and specifically require the auditor to test controls Several Federal agencies and discusses the treatment of loans and unless they are deemed to be ineffective_ numerous college and university loan guarantees. S _.205 shall also be Therefore. it is reasonable to require the commenters expressed strong concern followed for purposes of determining auditor to plan the audit consistent with that the cognizant agency determination the cognizant agency for audit. the level of internal control which the included in Circular A-133 is not Required Level of Internal Control recipient of Federal funds is required to consistent with Circular A-21. "Cost maintain. Also. the Circular permits the Principles for Educational Institutions:' Testing auditor to not test internal controls and could result in an entity having one Comment which are inadequate and. instead. cognizant agency for audit purposes and Four State auditors and one CPA disclose a reportable condition another for indirect cost negotiation. Response: No change was made as a commenter opposed the proposed (including whether any such_condition result of these comments. Under requirement for the auditor to plan the is a material weakness) and perform CirCular A-21. cost negotiation testing of internal control over major additional tests of compliance as cognizance for the majority of colleges programs to support a low assessed necessary in the audItor'sjudgment. and universities is currently assigned to level of control risk. One commenter Compliance Supplement either the Department of Health and stated that the Circular assumes that Comment Human Services (HHS) or the Office of control risk is always either low or high Naval Research (ONR) in the and that it "does not recognize that Several State auditors and CPA Department of Defense. OMB believes control risk may be anywhere on a commenters stated that. while that it is unnecessary to require these continuum from low to high (with significant progress was made to two Federal agencies to also assume "high" indicating ineffective control). improve the single audit process. it is responsibility for audit cognizance for When an auditor gains an critically important for OMB to move each of the colleges and universities for understanding of an entity's internal swiftly to issue a revised compliance which they serve as cost negotiation control and determines that the controls supplement. which is needed to cognizance. This additional are not ineffective, but are also not conduct single audits, They emphasized responsibility for audit cognizance may sufficient to support a low assessed the importance of finalizing and impede HHS' or ONR's ability to fulfill level of control risk. then no amount of publishing this document as quickly as their cost negotiation duties. Cost planning or testing will support a low possible to facilitate audits of fiscal negotiation cognizance requires a high assessed level of control risk." Two years beginning after June 30. 1996 (i.e_. degree of specialized skills. However, commenters-recommended that OMB the first audits to be conducted using any Federal agency is capable of allow the assessment of control risk at the revised Circular). performing audit cognizance duties, The a moderate level. unless internal control Response: OMB agrees that the responsibilities for audit cognizance is determined to be ineffective. compliance supplement is vital to (S _.400(a)) and indirect cost Response: No change was made as a successful implementation. In response negotiation are different and. therefore. result of these cOlTlmerts. Many Federal to these comments. OMB is including a the same Federal agency need not be agencies are concerned that not enough provisional compliance supplement as cognizant for both. While OMB expects testing of internal control over miUor Appendix B to the final revision to that the Federal agency responsible for programs is performed as part of single Circular A-133. It is being issued at this audit cognizance and cost negotiation audits. The President's Council on time in provisional form so that it can cognizance will be the same in many Integrity and Efficiency's (PCIE) "Study be used as part of the first audits instances. when they are different. the on Improving Ihe Single Audit Process:' conducted in accordance with the Federal agencies involved will be issued in September 1993. highlighted revised Circular A-133. However. the expected to coordinate their efforts to the disparity between Federal agencies' provisional status also provides avoid duplication and disruption to the expectations relating to the extent of interested parties with the opportunity auditee_ internal control testing and the actual to comment on the document and Comment testing of internal control performed by permits OMB to include additional auditors. The study identified the lack Federal programs in the document in Clarification was requested by many of clear requirements as a cause for this the coming months. commenters on how 10 determine the deficiency_ The study recommended The provisional "Circular A-133 predominant amount of direct funding that the Circular "Require the auditor to Compliance Supplement" is effective for purposes of determining the plan the internal control testing to for audits of fiscal years beginning after cognizant agency for audit. One Federal perform sufficient tests to support an June 30. 1996, and supersedes the auditor questioned whether loans and assessed level of control risk of low for previously issued compliance loan guarantees shouid be considered in each program tested as major." OMB supplements entitled "Compliance the calculation. Several college and believes that the Circular clearly Supplement for Single Audits of State university commenters expressed describes the Federal Government's and Local Governments:' issued in concern that the term "direct funding" expectations relating to the coverage of 1990, and "Compliance Supplement for could be misinterpreted to mean the interna!:ontrol under single audits, in Audits of Institutions of Higher amount of "awards:' rather than termino;ogy that is consistent with Learning and Other Non-Profit "expenditures_ .. professional auditing standards. Institutions." issued in 1991. The Federal I, ister I Vol. 62. No. 125 I Monday. 30. 1997 I Notices 35: definition of the term "compliance 133. issued March 8. 1990. or Circular 9_.520(e)(2) provides two options supplement" in 9 _.1 05 of the final A-128. issued April 12. 1985. and identifying high-risk Type B program revision was revised to reflect the otherwise met the requirements in Under Option I. the auditor would compliance supplement included as 9 _.520(c} to be considered as low- expected to perform risk assessments Appendix B to this revised Circular. risk. Similar inquiries were received all Type B programs that exceed the Comment regarding whether single audits amount specified in 9_.520(d}(2}. performed in accordance with the prior and audit at least one half of these hig Several State auditors and one CPA Circular A-133 or Circular A-128 risk Type B programs as major. unless requested removal of the requirement would satisfy the requirements of this number exceeds the number of 10\ for the auditor to determine the current 9 _.530 for an auditee to qualify as a risk Type A programs identified under compliance requirements when changes low-risk auditee. 9_.520(c) (i.e.. the "cap"). fn this were made to the compliance Response: The reference in case. the auditor would be required to requirements and the changes are not 9 _.520(c} (1) to the two most recent audit as major the same number of higr yet reflected in the compliance audit periods includes audit periods in risk Type B programs as the cap. For supplement. which the audit was performed under example. a State has ten low-risk Type Response: No change was made asa either Circular A-128 or the 1990 A programs. and 50 Type B programs result of these comments. However. version of Circular A-I 33. Therefore. a above the amount specified in minor modifications were made to Type A program which meets the s_.520(d)(2). Under Option 1. the 9 _.500(d) to conform the language criteria for low-risk under auditor would be required to perform used in the Circular to the compliance 9_.520(c)(l). based on the results of risk assessments of the 50 Type B supplement. an audit performed under Circular A- programs. Assume that the auditor The requirement in 9 _.500(d}(3) 128 or the 1990 version of Circular A- determines that there are 25 high-risk for auditors to consider whether 133. may be considered low-risk. Type B programs. One half of the 25 changes were made in the compliance Similarly, the requirement in 3_.530 high-risk Type B programs is 12.5. or 13. requirements included in the that an auditee meet specified criteria programs. Under Option I. the auditor compliance supplement reflects current for the preceding two years to be would audit 13 of the high-risk Type B practice. which is based on two considered a low-risk auditee applies to programs as major; however. the cap in documents: (I) the PCTE's Position audits performed under Circular A-128 this example is ten (i.e.. the number of Statement No.6. titled "Questions and or the 1990 version of Circular A-133. low-risk Type A programs); therefore. Answers on Circular A-I 33," and (2) Also. to provide a transition into the the auditor is only required to audit as the AI CPA's Audit and Accounting risk-based approach. the provision for major 10 high-risk Type B programs. Guide. entitled. "Audits of State and deviation from use of risk criteria Under Option 2. the auditor is only Local Governmental Units." dated May provided in S _.5200) applies to the required to audit as major one high-risk 1. 1995. first year this revision is applicable and Type B program for each Type A The PCIE document includes a permits auditors to defer program identified as low-risk under statement that "If there have been implementation of the risk,based 9_.520(c). Under this option. the changes [to the compliance approach for one year. auditor would not be required to requirements included in the Risk-Based Approach to Determining perform risk assessments for any Type compliance supplementj. then the Major Programs B programs when there are no low-risk auditor should follow the provisions of Type A programs (i.e.. the cap is zero). the compliance supplements as Comment Continuing with the previous example. modified by the changes" (page 14). The Several State auditors and one State under Option 2. the auditor would AICPA's Accounting and Auditing agency requested clarification of the perform risk assessments of Type B Guide (paragraph ::3_:]7} alerts auditors requirements for performing risk programs until ten high-risk Type B to the fact that compliance requirements assessments of Type B programs under programs are identified. The auditor may change over time and that this S~.520(d) and 9_.520(e)(2). Many would be required to audit ten high-risk should be considered in planning tests commenters questioned if the Circular Type B programs as major in this of compliance. The provisional requires the auditor to perform annual example. Depending on the order in "Circular A-133 Compliance risk assessments of each Type B which risk assessments on Type B Supplement'. provides guidance to program (above an amount specified in programs are performed. the auditor auditors regarding the Federal the Circular) and expressed concern that might only need to perform risk Government's expectations for auditors such a requirement would significantly assessments of ten Type B programs to perform reasonable procedures (e.g.. increase audit costs. determined to be high-risk. or the inquiry of auditee management. review Response: Minor modifications were auditor may need to perform risk of applicable contract and grant made to the Circular. Reference to the assessments uneil ten high-risk agreements) to determine currency of percentage of coverage rule was programs are identified. the compliance requirements included removed from s__520(d)(2) of the The auditor may choose either Option in the compliance supplement. final revision because. as two I or 2. There is no requirement to justify Transitional Guidance to Implementing commenters noted. program risk is not the reasons for selecting either option. ~he Risk-Based Approach to a consideration in selectirlg programs to The results under Options 1 and 2 may Determining Major Programs meet the percentage of coverage rule vary significantly, depending on the Comment described in 9_.520(f). Also, number of low-risk Type A programs editorial changes were made to and high-risk Type B programs. The OMB received several inquiries about 9 _.520(d) (2) to emphasize when risk auditor is encouraged to use an whether a Type A program may be assessments should be performed. approach which provides an considered low-risk when it was The final revision (9 _.520(d}) opportunity for different high-risk Type audited as a major program in requires the auditor to identify Type B B programs to be audited as major over accordance with the prior Circular A- programs that are high-risk and a period of time. '. 35284 Federal r er I Vol. 62. No. 125 I Monday. J, 1997 ;" Notices Comment made to 9 _.4 00 (a) of the final Response: The proposed revision of OMB received several inquiries about revision to add this responsibility to the Circular A-133 included a requir-ement whether large loan and loan guarantee list of cognizant agency for audit for the auditor to communicate. programs (that affect the determination responsibilities. preferably in writing. to the auditee of other Type A programs under Comment which Federal awarding agencies and 9 _.520(b)(3)) audited as major One commenter inquired about the pass-through entities are required to programs may be used for purposes of receive a copy of the reporting package_ meeting the percentage of coverage rule effective date of the Circular for biennial This requirement was removed. This (9 _.520(t)). periods. separate communication is unnecessary Response: The amount of Federal Response: The 1996 Amendments do because the final Circular awards expended under such loan and not specifically address the effective (3_.320(b)(3)) requires the auditor to loan guarantee programs that are dates for biennial audits. OMB prepare and sign the portion of the data audited as major may bf:: used for interprets the 1996 Amendments to be collection form that identifies which purposes of meeting the percentage of effective for any biennial periods which Federal agencies are required to receive coverage rule. In a related matter. begin after June 30.1996. As with a copy of the reporting package, programs audited as major under annual audits. the previously applicable 9_.215(c). in which a Federal agency Circulars are in effect until this final Basis of Accounting or pass-through entity requests and pays revision is effective. Therefore. an Comment for a program to be audited as major. auditee that conducts biennial audits may also be used for purposes of and has a biennial period beginning on One State auditor requested that meeting the percentage of coverage rule or before June 30. 1996. should apply 9_.31O(a) and 9_.500(b) of the (3_.520(0). the provisions of Circular A-128 (for a Circular be revised to include a Comment State or local government) or Circular statement, similar to a provision A-133. issued March 8. 1990 (for a non- Several commenters questioned the profit organization). as applicable. The (paragraph 2.4 (a)) included in GAGAS. difference in the number of days of requirements of this Circular apply to that "Financial statement audits also advance notice a Federal agency shall any biennial periods beginning after include audits of financial statements provide an auditee when a particular lune 30. 1996. prepared in conformity with any of program: (1) cannot be considered a Credit Union Loans several other bases of accounting low-risk Type A program (at least 120 discussed in the auditing standards days prior to the auditee's fiscal year Comment issued by the AICPA." One Federal end under 9 _.520(c)(2)). and (2) OMB received inquiries about auditor requested that the Circular must be audited as major Jat least 180 require the auditee to use the same basis days prior to the auditee's fiscal year whether loans provided by the National of accounting in preparing the schedule end under 9_.215(c)). Credit Union Administration (NCUA) of expenditures of Federal awards that Response: For consistency, a change should be considered Federal awards is used to prepare the auditee's financial was made to 3 __520(c)(2) of the final subject to the requirements of Circular statements. and noted that this omission revision to require a Federal agency to A-133. has resulted in significant unreconciled inform an auditee at least 180 days prior Response:- A new paragraph differences on the schedule of to the auditee's fiscal year end when a (9 __2050)) was added to the Circular expenditures of Federal awards. Federal program cannot be considered a to address certain loans provided by the Response: No changes were made as low-risk Type A program. NCUA. Specifically. loans made from the National Credit Union Share a result ofthes'e comments. Circular A- Biennial Audits Insurance Fund artd the Central 133 does not prescribe the basis of Comment Liquidity Facility are funded by accounting that must be used by All State auditors that commented on contributions from insured institutions auditees to prepare their financial and are not considered Federal awards statements and schedule of the proposal relating to biennial audits expended under Circular A-133. expenditures of Federal awards. strongly opposed the provision included in 9 _.530(a) of the proposed revision However. the NCUA provides loans However. auditees are required to that prohibits non-Federal entities that under other programs. such as the disclose the basis of accounting and have biennial audits from qualifying as Community Development Revolving significant accounting policies used in low-risk auditees. Commenters stated Loan Programs for Credit Unions. which preparing the financial statements and that this prohibition was, not included are considered Federal awards for schedule of expenditures of Federal in the 1996 Amendments and that the purpose" -; applying Circular A-133, awards. The auditor Is required to report frequency of the audit has no bearing on Audita:- _L ,71munication Regarding (S _' 500 (b)} whether the financial the administration of Federal awards. Report DIStribution statements are prepared in accordance One commenter suggested that. at a Comment with generally accepted accounting minimum. the cognizant or oversight principles (GAAP). and whether the agency for audit be authorized to Several commenters stated that. if the schedule of expenditures of Federal permit. on a case-by-case basis, non. auditor prepares the data collection awards is presented fairly in aU material Federal entities that conduct biennial form. then the communication required respects in relation to the auditee's audits to qualify as low-risk auditees. by S _.500(f) of the proposed financial statements taken as a whole. Response: A change was made to revision. whereby the auditor is The auditee must be able to reconcile 9 _.530(a) to permit non-Federal required to notify the auditee of which amounts presented in the financial entities to qualify. on a case.by-case Federal agencies and pass-through statements to related amounts included basis. as low-risk auditees with the entities are required to receive a copy of in the schedule of expenditures of approval of the cognizant or oversight the reporting package. will no longer be Federal awards. agency for audit. A change was also necessary. f \0. 1997 I Notices 352 Federal I Vol. 62. No. 125 I Monday. jU. Financial Statements this would result in additional audit A-133. in response to specific , costs and complicate the audit process. comments received. as describectin th Comment Response: .9_.31 o (a) was revised to following sections. Several CP As commented that clarify OMB's expectations in this area. Comment S _.31 O(a) of the Circular should be The revised Circular provides non- Several CP As and one State auditor modified to recognize that financial Federal entities an option to meet the statements should reflect the results of audit requirements of the Circular commented that the Circular requires operations Dr changes in net assets. through a series of audits that cover the the auditor to be responsible for Financial statements prepared in non-Federal entity's departments. determining major programs and the accordance with GAAP for certain types agencies. and other organizational units threshold used to distinguish between of non-Federal entities reflect changes which expended or otherwise Type A and Type B programs. However in net assets rather than results of administered Federal awards during these items are required to be presentee operations. The, commenters suggested such fiscal year. If a non-Federal entity in the schedule of expenditures of that some auditees and auditors may elects this option. then separate Federal awards prepared by the auditee interpret this section as imposing a financial statements and a schedule of and this requirement may blur the requirement that is not consistent with expenditures of Federal awards shall be distinction between information that is GAAP. prepared for each such depanment. the responsibility of the auditor versus Response: The Circular (.9 _.31 o (a)) agency. or other organizational unit. In the auditee. was revised to state that financial these circumstances. a non-Federal Response:The proposed requiremen~ statements should reflect either the entity's organization-wide financial for the schedule of expenditures of results of operations or changes in net statements may also include Federal awards to identify m'tior assets. departments. agencies. or other programs and identify the threshold to Comment organizational units that have separate distinguish between Type A and Type B Several CP As commented that the audits and prepare separate financial programs (9_.310 (b)(3) and (b)(4) of statements. the proposed revision) were removed. requirement included in 9 _.31O(a) of In the example provided by the However. the requirement to report this the Circular that the financial commenter. it would be acceptable for information was added to 9_.505(d) statements shall be for the same the local government's financial so that this information is now required organizational unit that is chosen to statements to include the school to be included in the auditor's report(s). meet the requirements of the Circular. districts. even though the school While not required. some auditees may considered in conjunction with districts were not included in the local find it useful to present this information 9__500(a). could be problematic for government's Circular A-133 audit in the schedule of expenditures of certain auditees and may have Federal awards. unintended consequences: The because a separate Circular A-133 audit commenters interpreted the Circular as is conducted of the school districts_ Comment requiring a direct match between the However. if separate financial Several CPAs recommended that the reporting entity included in the statements were not prepared for the value of non-cash assistance. insurance financial statements and the reporting school districrs. it would be in effect. and loans and loans guarantees entity covered by the Circular A-133 unacceptable for a separate Circular A- outstanding be required to be included audit. The commenters questioned 133 audit to be conducted of the school in the schedule of expenditures of whether an auditee. that chooses to districts (i.e" the local government's Federal awards. They stated that the meet the Circular's requirements organization-wide financial statements option to present this information in a through a series of audits that cover could not be used as a substitute for note to the schedule should be separate departments. agencies. and separate financial statements for the eliminated and that the consistency other organizational units which school districts). achieved will improve the usefulness of expended Federal awards. would be Schedule of Expenditures of Federal the schedule and facilitate OMB's data required to issue non-GAAP financial A wards collection efforts. One college and statements that omitted the portions of Comment university commenter stated that the the reporting entity which were requirement to provide this information separately audited. One commenter One Stale auditor and one State (either in a note or in the schedule) was requested guidance in a situation where manager commented that the Circular excessive. and that the same a local government has its school should not prescribe requirements for information could be obtained from districts separately audited. If the local the schedule of expenditures of Federal existing Federal data banks. government's financial statements awards beyond the current guidance. Response: A change was made to exclude the school distriCts (which is Response: The "current guidance" for S_.310(b)(6) as a result of these what the commenters believe the presenting the schedule of expenditures comments. The Circular permits the Circular requires). then the auditor may of Federal awards information was option of presenting this information need to issue a qualified or adverse developed and promulgated by the either in the schedule of expenditures of opinion on the local government's AICPA. and was not specifically Federal awards or in a note to the financial s'.atements. which could raise prescribed in Circulars A-128 and A- schedule; however. an additional unnecessary red flags and prohibit the 133 (I 990 original issuance). OMB sentence was included indicating that it auditee from qualifying as a low-risk believes that the minimum requirements is preferable to present this information auditee (9_.530). One State manager for the schedule should be specified in in the schedule. It is important to note noted that considerably more public the Circular (9 _.310(b)). Most that. regardless of whether this entities are included in that State's respondents to the April 1996 revision information is presented in a note or in financial statement audit than in its of Circular A-133 supported the level of the schedule. this information must be state-wide single audit. and that. if the detail reflected in that revision. A few included in the data collection form. Circular requires such entities to be modifications of the requirements were While the requirement to provide such included in the state-wide single audit. made in this final revision of Circular ,information is not new. the Federal 35286 Federal Re~l t' / Vol. 62. No. 125 / Monday. June! ''', 1997 I Notices Government does not currently collect The lack of a management decision require the auditor to "'" * * determine' and account for this information in a for a prior audit finding may provide a whether the financial statements are systematic manner or data bank (i.e.. basis for the auditee to indicate in the presented fairly in all material respects some Federal agencies track this summary schedule of prior audit in conformity with generally accepted information and others do not). A minor findings thi::t the finding is no longer accounting principles:' However. it addition was made to S _.31 O(b) (6) to valid or does not warrant further action should be noted that neither the 1996 clarify that the amount of insurance in (provided the two other conditions Amendments nor Circular A-133 effect during the year should be previously listed are met). However. the prescribe the basis of accounting that disclosed. lack of a management decision does not must be used by auditees to prepare Report Due Date change the scope of audit work or the their financial statements and schedule auditor's reporting requirements. As an of expenditures of Federal awards (i.e.. Comment example. if the same deficiency that non-GAAP statements are acceptable). Two Federal auditors commented that resulted in a prior audit finding (for Comment the requirement included in the 1996 which a management decision was not Two CPAs indicated that the Amendments to submit the reporting issued) is discovered by the auditor in package to the Federal clearinghouse the current period. the auditor would be reference to S _.505 (d)(2) and (3) that "within the earlier of: 30 days after required to determine whether the was included in S _.505(d)(3){ii) of receipt of the auditor's report(s). or matter met the criteria provided in the proposed revision is confusing * * ." is not clearly specified in the S _.51O(a) for reporting an audit because it refers to certain schedules proposed revision. finding in the auditor's schedule of that are supposed to be included as part Response: S _.235 (c) and findings and questioned costs. of the schedu Ie of findi ngs and S _.320(a) were modified to For the first year a non-Federal entity questioned costs. incorporate the report due date is audited under this revised Circular. Response: A change was made to requirements specified in the 1996 the prior year report may not have s_.505(d)(3)(ii) to reflect that the Amendments. included the equivalent of a summary schedule offindings and questioned Summary Schedule of Prior Audit schedule of prior audit findings. In costs is comprised of several sections. these cases. the auditee may exercise rather than multiple schedules. Findings judgment and only include. to the Audit Findings Comment extent practical. audit findings -from Several State auditors requested before the prior year. Also. the auditee Comment guidance on the auditor's responsibility is not expected to include prior findings Several Federal auditors. State for deficiencies noted in prior audit that would not have been reported auditors, and CP As commented on the findings for which a man~gement under the criteria provided in requirement included in s_.51O(a) decision was not issued and which the 9_.510(a). (1) and (2) of the proposed revision that. auditee believes is no longer valid_ Auditor's Schedule of Findings and for reporting purposes. audit findings Specifically. the commenters asked Quesrioned Costs must be evaluated in relation to a "type whether the lack of a timely Comment of compliance requirement"" for a major management decision is evidence that program or an audit objective identified the Federal awarding agency or pass. Several State auditors and CPA in the compliance supplement. Some through entily is not concerned about commenters noted that GAGAS does not commenters opposed requiring the the finding and whether future audits use the term "findings and questioned evaluation of an a4dit finding in may exclude coverage of the deficiency costs." and the concept of questioned relation to an a"udit objective because that resulted in an audit finding_ One costs is not discussed In GAGAS. they believe this to be a more State auditor also commented that Commenters requested that OMB clarity constrictive requirement than the auditees should not be given the the requirement included in currently-used measurement standard. authority to determine when an audit 3 __505(d) (2) of the proposed and others requested clarification of the finding is no longer valid or does not revision_ requirement. Two commenters warrant further action. ResponsE': A change was made to suggested that OMB revise this Response: 9 __3l5(b) permits an 3 __505 (d)(2) to replace the term requirement to allow the auditor to auditee to determine whether a prior "findings and questioned costs" with make the determination of reportable audit finding is no longer valid or does "findings" so that the final revision conditions and material noncompliance not warrant further action. A valid requires thE-' auditor's schedule of based on the significance of the reason for such a determination is that findings and questioned costs to include compliance requirement and the effect all of the following have occurred: (I) a section that reports any findings on the program as a whole. two years have passed since the audit relating to the financial statements Response: No change was made as a report in which the finding occurred which are required to be reported in result of these comments. The scope of was submitted to the Federal accordance wilh GAGAS. the auditor's work described in clearinghouse. (2) the Federal agency or Comment 9 _.500 (c) and (d) is required at the pass-through entity is not currently major program level. However. for audit following up with the audit~e on the One State auditor requested that reporting purposes. the results of the audit finding, and (3) a management 9 _.505(a) of the proposed revision be auditor's work must be evaluated decision was not issued. OMS believes reVised to permit unqualified opinions against a lower measure. Specifically. that it is appropriate for the auditee to on financial statements prepared in the revised Circular requires the auditor make this determination. In addition. accordance with an other to consider an audit finding in relation the auditor is required by 9 __500(e) comprehensive basis of accounting. to a type of compliance requirement for of the Circular to assess the fairness of Response: No change was made as a a m~or program or an audit objective management's representations in the result of this comment. The 1996 identified in the compliance schedule. Amendments (31 U.S.C~ 7502(e)(I)) supplement. The types of compliance Federal '~ter / Vol. 62. No. 125 / Monday. ,30. 1997 / Notices 352 requirements and related audit requirement (which is eligibility in this an audit finding when the auditor's objectives are included in the case). the auditor would be expected to extrapolation of these likely questione provisional "Circular A-133 report these questioned costs of $1 8,000 costs is greater than $10.000. In Compliance Supplement." The auditor as an audit finding. The auditor would reporting likely questioned costs, it is is expected to determine the types of also be expected to consider the impact important that the. auditor follows the compliance requirements that could of these instances of noncompliance requirements of S _.51 O(b) and have a direct and material effect on each when reporting on compliance on each provides appropriate information for major program. and to design and major program. judging the prevalence and conduct tests necessary to render an Comment consequences of the finding. The use 0 opinion on compliance with respect to Some Federal agencies strongly object statistical means of determining likely each major program_ Clearly. auditor questioned costs may be beneficial for judgment must be used in determining to not requiring known questioned costs auditors but it is not required. During the na:ure. timing. and extent of audit of $10.000 or less to be reported. the next few years. OMB expects work to be performed. and in evaluating Conversely. one State auditor Federal agencies to monitor auditor the audit results. The purpose of the commented that the requirement to compliance in this area to assist OMB if requirement included in 3_.510(a) report known questioned costs greater determining whether an expansion of (1) and (2) is to advise the auditor of the than $10.000 could result in auditors' these reporting requirements is criteria against which to measure or reporting matters that are minimal in necessary in subsequent revisions. evaluate the impact of findings for relation to the size of a particular Comment re~orting purposes. Federal program (e.g.. a very large State t is important to note that. under the program in which questioned costs of Two CPA commenters requested existing requirements of Circular A-128. $11.000 is considered immaterial). guidance regarding the treatment of the auditor is required to report all . Response: No change was made as a audit findings that cannot be quantified. instances of noncompliance and. under result of these comments. OMB believes The commenters cited as an example a the 1990 version of Circular A-133. the that the $10.000 threshold for reporting situation where an auditor discovers auditor is required to report all but questioned costs provides an that a pass-through entity consistently nonmaterial instances of appropriate balance between reporting failed to provide its subrecipients with noncompliance. The requirements for all questioned costs (which was Federal award information. including reporting audit findings included in the previously required for State and local applicable compliance requirements. revised Circular are less burdensome governments) and only reporting The commenters stated that than the existing requirements with substantial questioned costs. 9 _.51O(a)(3) could be read to respect to instances of noncompliance. Comment indicate that such nonmonetary findings Comment One Federal auditor requested that would not need to be reported_ Response: No change was made as a Several commenters requested OMB require auditors to report an result of these comments. In the clarification of the requirement in estimate of likely questioned costs when example provided by the commenters, .9 _.51 0(a)(3) of the proposed revision a known or likely questioned cost this noncompliance would be required to report as an audit finding known exceeds $10.000. The commenter stated to be reported as an audit finding. The questioned costs which are greater than that capturing the amount of likely auditor must consider a finding in $10.000 for a type of compliance questioned costs should better enable relation to the type of compliance requirement. particularly with respect to Federal agencies to assess the nature requirement (subrecipient monitoring. determining the impact of multiple and magnitude of questioned costs on in this case) or an audit objective instances of noncompliance relating to a particular Federal awards and assist in identified in the compliance type of compliance requirement. prioritizing the resolution of audit supplement. The pertinent audit Response: No change was made as a findings. The commenter also suggested objective included in the provisional result of these comments. However, the that OMB encourage auditors to use "Circular A-133 Compliance following example is provided to statistical means to determine likely Supplement" relating to this example is illustrate the requirements of this questioned costs, for the auditor to "determine whether provision. Suppose an auditor: (1) Response: No change was made as a the pass-through entity identifies determines that eligibility (which is one result of this comment. 9 _.51 0(a)(3) of the types of compliance requirements requires the auditor to report known Federal award information and listed in the compliance supplement) questioned costs which are greater than compliance requirements to the could have a direct and material effect $10.000, and known questioned costs subrecipient" Because the pass-through on a major program: (2) designs and when likely questioned costs are greater entity failed to provide Federal award conducts tests over eligibility relative to than $10.000. for a type of compliance information to its subrecipients. this this major program: and. (3) discovers requirement. GAAS require the auditor noncompliance is material in relation to two separate instances of to project the amount of known the audit objective and. therefore. must noncompliance. in the amount of $9000 questioned costs identified in a sample be reported as an audit finding. In each. relating to eligibility. The findings to the items in the major program and addition. the auditor must consider involve two different auoit objectives to consider the best estimate of total whether reportable conditions (and relating to eligibility (which are listed in questioned costs (both known and possibly material weaknesses in internal the compliance supplement): one likely) in determining an opinion on control) exist and require reporting with finding relates to an individual compliance. The auditor is required to respect to subrecipient monitoring. participant's eligibility. and the other document this consideration in the Audit Follow-up finding relates to the eligibility of a audit working papers. Comment subrecipient. Since 9 _.51 0(a)(3) The revised Circular does not require requires the auditor to report known the auditor to report an exact amount or Several commenters requested questioned costs which are greater than statistical projection of likely guidance on whether the auditor is $10.000 for a type of compliance questioned costs. but rather to include required to follow up on all prior l 35288 Federal P r I Vol. 62. No. 125 / Monday. Jupp ( 1997 I Notices findings. particularly immaterial both performed the audit and prepared were not low-risk, it would have been amounts that were previously required the indirect cost proposal or audited as a major program undeqhe to be reported. Two commenters CAP. The $1 million threshold was risk-based approach. Therefore. this opposed the requirement for audit chosen to limit this restriction to a provision will not reduce the number of follow-up on prior audit findings. even relatively small number of entities. high-risk Type B programs audited as when a finding is unrelated to a m~or while still protecting the Federal major. Also. programs audited as m;:uor program in the current year. interest. under this process count towards Response: In the first year audited The implementation date for this meeting the percentage of coverage rule under the revised Circular. the auditor provision is delayed two years until provided in S _.520{f). should use judgment in deciding which audits of fiscal years beginning after Management Decisions previously reported findings require June 30. 1998. to minimize any effect follow-up in the current year. Auditors this provision could have on existing Comment are not expected to follow up on prior contracts for audit services. In the Several State auditors expressed year findings that are immaterial. The future. OMB and Federal agencies will concern about the provision permitting auditor should consider the criteria for monitor this area to determine whether Federal agencies and pass-through reporting audit findings. provided in additional guidance or further revision entities. prior to issuing a management s_.51O{a). in determining which to the Circular is necessary. decision. to request additional prior audit findings require follow-up. Federal A warding Agency information or documentation from an No change was made to 9_.500(e), Responsibilities auditee. including a request that the which requires the auditor to perform Comment documentation be audited. as a way of follow-up procedures regardless of mitigating disallowed costs. Two CP As whether a prior audit finding relates to . A commenter noted that the Circular requested that the term "audit" be a major program in the current year. does not list as a responsibility of replaced by "auditor assurance" for This requirement is consistent with the Federal awarding agencies the clarity. requirement for management to report requirement included in the 1996 Response: A minor change was made on the status of prior findings in the Amendments (31 U.S.C. 7502(f)(l)(A)) to S _.405 (a) to clarify that the summary schedule of prior audit to inform recipients of the Federal request is for auditor assurance relating findings. requirements imposed on them by to the specified documentation. OMB Auditor Selection Federal laws. regulations. and the also expects Federal agencies and pass- provisions of contracts or grant through entities to use this provision Comment agreements. judiciously. Two State auditors requested a change Response: A change was made to add Comment to recognize that some auclitees (e,g.. this responsibility to the list included in One State auditor commented that it State and local governments) do not ~ _.400(c) of the revised Circuiar. would be beneficial if auditors could have the constitutional or legal Request for a Program to be Audited as obtain copies of management decisions authority to arrange for audit services. a Major Program and suggested that the Federal Response: A clarification was made to 9 _.305(a} to indicate that. in Comment Government establish a centralized - contact from which auditors could procuring (rather than arranging for) Two State auditors opposed the re~uest copies. audit services. auditees shall follow the provision included in 9_.215(c) in provisions described in 9 _.305(a). If which a Federal agency or pass-through esponse: In the next few years, OMB will consider this and other suggestions an auditee is not authorized to procure entity may request for a program to be to improve the aissemination of audit services (e.g.. State law may audited as a major program. Reasons management decision information. require that a State auditor perform all cited include: (1) that Federal agencies required audits for that State). then the might use this provision excessively. Audit Working Papers provisions of 9 _,305(a) do not apply. and (2) that specifying programs to be Comment Comment audited as major is contrary to the risk- Several auditors requested that the based approach to determining m~or One State agency and one CPA programs. Circular reflect the wording included in commenter did not support the Response: No changes were made to the 1996 Amendments (31 U.S.C. restriction on auditors that perform the Circu lar as a result of these 7503(0) that indicates the purpose for Circular A-133 audits and also prepare comments. This process does not which access to working papers is indirect cost proposal or CAPs. These significantly change the authority intended. commenters stated that the AICPA's Federal agencies and pass-through Response: A change was made to professional standards adequately entities now have to perform additional S _.5 15(b) to reflect wording similar address auditor independence. audits as long as they pay for them. to the 1996 Amendments relating to this Response: No change was made as a These audits may be incorporated matter. result of these comments. 9_.305(b) within the framework of the single audit Additional OMB Guidance precludes the same auditor from and thereby eliminate duplicative audit Comment preparing 'theindtrect cost proposal or planning and reporting. Since the CAP when indirect costs exceeded $1 Federal agency or pass-through entity Several commenters requested million in the prior year. This must still pay the full Incremental audIt additional Information about various restriction was developed based on cost. OMB does not expect a significant provisions in the proposed revision and comments relating to April 1996 increase in major programs from this asked whether OMB will publIsh a revision of Circular A-133, in which all provision. "questions and answers" document as Federal agencies that responded cited at It should be pointed out that any Type imftlementation issues arise. least an appearance of a lack of A program selected to bl'! audited under esponse: Interested parties may wish independence when the same auditor this provision must be low-risk. If'lt to refer to the April 30. 1996 (61 FR " Federal ,iter / Vol. 62, No. 125 / Monday, ~O, 1997 / Notices 35~ ]9]34) and November 5.1996 (61 FR awards received either directly as a PART_-AUDITS OF STATE_S, 57232) Federal Register for discussion recipient or indirectly as a subrecipient LOCAL GOVERNMENTS, AND NON- of various provisions included in the 5, Definitions. The definitions of key PROFIT ORGANIZATIONS Circular. Useful information is provided terms used in this Circular are Subpart A-General in these Notices that is not necessarily contained in S_.105 in the repeated in this Notice. In the future. if Attachinent to this Circular. Sec. there are significant questions 6. Required Action. The specific _,100 Purpose. concerning the revised Circular A-133. requirements and responsibilities of _.105 Definitions. OMB will consider issuing a "questions and answers" document relating to the Federal agencies and non-Federal Subpart B-Audits revised Circular. entities are set forth in the Attachment to thisCircular. Federal agencies _,200 Audit requirements. Franklin D. Raines. makin..; awards to non-Federal entities. _.205 Basis for determining Federal Director. either d.irectly or indirectly, shall adopt awards expended, 1.0MB rescinds Circular A-128 July the language in the Circular in codified _.210 Subrecipient and vendor determinations, 30, 1997. regulations as provided in Section 10 _.215 Relation to other audit 2. OMB revises Circular A-133 to read (below). unless different provisions are requirements. as follows: required by Federal statute or are _.220 Frequency of audits. [Circular No, A-133 ReVised) approved by the Office of Management _.225 Sanctions, and Budget (OMB). _,230 Audit costs. To the Heads of Executive Departments 7. OMS Responsibilities. OMB will _.235 Program.specific audits. and Establishments Subject: Audits of States. Local review Federal agency regulations and Subpart C-Auditees implementation of this Circular. and Governments. and Non-Profit will provide interpretations of policy _.300 Auditee responsibilities. Organizations. requirements and assistance to ensure _,305 Auditor selection. 1. Purpose. This Circular is issued uniform. effective and efficient _,310' Financial statements, _.315 ~udit findings follow-up, pursuant to the Single Audit Act of implementation. _,320 Report submission. 1984. P.L. 98-502. and the Single Audit 8. Information Contact. Further Act Amendments of 1996, P.L. 104-156. information concerning Circular A-133 Subpart D-Federal Agencies and It sets forth standards for obtaining may be obtained by contacting the Pass-Through Entities consistency and uniformity among Financial Standards and Reporting _.400 Responsibilities. Federal agencies for the audit of States. Branch. Office of Federal Financial _.405 Management decision. local governments. and non-profit Management. Office of Management and organizations expending Federal Budget. Washington. DC 20503, Subpart E-Auditors awards. telephone (202) 395-3993. 2. Authority. Circular A-133 is issued _,SOD Scope of audit, under the authority of sections 503. 9. Review Date. This Circular will _,50S Audit reporting. 1111. and 7501 et seq. of title 31. United have a policy review three years from _,510 Audit findings. States Code. and Executive Orders 8248 the date of issuance. _.515 Audit working papers, and 1154 L 10. Effective Dates. The standards set _,520 Major program determination. _,525 Crtteria for Federal program risk, 3. Rescission and Supersession. This forth in 9_ .400 of the Attachment to _,530 Crtteria for a low.risk auditee, Circular rescinds Circular A-128. this Circular, which apply directly to "Audits of State and Local Federal agencies. shall be effective July Appendix A to Part_ -Data Collection Governments:' issued April 12. 1985. 1. 1996. and shaIrapply to audits of Fonn (Form SF-5AC) and supersedes the prior Circular A- fiscal years beginning after June 30, Appendix B to Part_ -Circular A-133 133. .. Audits of Institutions of Higher 1996, except as othervvise specified in Compliance Supplement Education and Other Non-Profit 9_.400(a). Subpart A-General Institutions:' issued April 22. 1996. For The standards set forth in this effective dates, see paragraph 1 D. Circular that Federal agencies shall ~- .100 Purpose. 4. Policy. Except as provided herein, apply to non-Federal entities shall be This part sets forth standards for the standards set forth in this Circular shall be applied by all Federal agencies. adopted by Federal agencies in codified obtaining consistency and uniformity regulations not later than 60 days after among Federal agencies for the audit of If any statute specifically prescribes publication of this final revision in the non-Federal entities expending Federal policies or specific requirements that Federal Register. so that they will apply awards. differ from the standards provided herein. the provisions of the subsequent to audits of fiscal years beginning after ~_.105 Definitions. June 30. 1996. with the exception that statute shall govern. S _.305(b) of the Attachment applies Auditee means any non-Federal entity Federal agencies shall apply the to audits of fiscal years beginning after that expends Federal awards which provisions of the sections of this June 30. 1998. The requirements of must be audited unfJer this part Circular to non-Federal entities, Circular A-128. although the Circular is Auditor means an auditor. that is a whether they are recipients expending rescinded. and the 1990 version of public accountant or a Federal. State or Federal awards received directly from Circular A-133 remain in effect for local government audit organization, Federal awarding agencies, or are audits of fiscal years beginning on or which meets the general standards subrecipients expending Federal awards before June 30. 1996. specified in generally accepted received from a pass-through entity (a Franklin D, Raines. government auditing standards recipient or another subrecipiem). (GAGAS). The term auditor does not This Circular does not apply to non- Direcror, include internal auditors of non-profit U:S. based entities expending Federal Attachment organizations, t' L ,",~er / Vol. 62, No. 125 I Monday, Jurr\ 35290 Federal P J, 1997 / Notices Audit finding means deficiencies terms and conditions of the contract. (2) Reliability of financial reporting: which the auditor is required by Contracts to operate Federal ' and - 9_.51O(a) to report in the schedule of Government owned. contractor operated (3) Compliance with applicable laws findings and questioned costs, facilities (GOCOs) are excluded from the and regulations. CFDA number means the number re~uirements of this part. Internal control pertaining to the assigned to a Federal program in the ederal awarding agency means the compliance requirements for Federal Catalog of Federal Domestic Assistance Federal agency that provides an award programs (Internal control over Federal (CFDA). directly to the recipient. programs) means a process-effected by Cluster of programs means a grouping Federal financial assistance means an entity's management and other of closely related programs that share assistance that non-Federal e:',tities personnel-designed to provide common compliance requirements. The receive or administer in the form of reasonable assurance regarding the types of clusters of programs are grants, loans, loan guarantees, property achievement of the following objectives research and development (R&D), (including donated surplus property), for Federal programs: student financial aid (SFA), and other cooperative agreements. interest (1) Transactions are properly recorded clusters. "Other clusters" are as defined subsidies. insurance, food commodities, and accounted for :0: by the Office of Management and direct appropriations. and other (1) Permit the preparation of reliable Budget (OMB) in the compliance assistance. but does not inch:de financial statements and Federal supplement or as designated by a State amounts received as reimbur-sement for reports: for Federal awards the State provides to services rendered to individuals as (li) Maintain accountability over its subrecipients that meet the definition described in 9 _.205(h) and assets: and of a cluster of programs. When 9_.205(1). (iii) Demonstrate compliance with designating an "other cluster:' a State Federal program means: laws. regulations, and other compliance shall identify the Federal awards (1) All Federal awards to a non- requirements: included in the cluster and advise the Federal entity assigned a single number (2) Transactions are executed in subrecipients of compliance in the CFDA. compliance with: requirements applicable to the cluster. (2) When no CFDA number is (i) Laws, regulations. and the consistent with 9 _.400(d)(1) and assigned. all Federal awards from the provisions of contracts or grant 9 _.4 00 (d)(2). respectively. A cluster same agency made for the same purpose agreements that could have a direct and of programs shall be considered as one should be combined and considered one material effect on a Federal program: program for determining major pro~ram. and programs. as described in 9 _.520. (31 Notwithstanding paragraphs (1) (il) Any other laws and regulations and. with the exception of R&D as and of this definition. a cluster of programs. The types of clusters of that are identified in the compliance described in S_.200(c). whether a supplement: and program-specific audit may be elected. programs are: (3) Funds. property. and other assets Cognizant agency for audit means the (i) Research and development (R&D); are safeguarded against loss from Federal agency designated to carry out (ii) Student financial aid (SF A): and unauthorized use or disposition. the responsibilities described in (iii) "Other clusters:' as described in the definition of cluster of programs in Loan means a Federal loan or loan S _.400(a). guarantee received or administered by a Compliance supplement refers to the this section. - Circular A-133 Compliance GAGAS means generally accepted non-Federal entity. Supplement. included as Appendix B to government auditing standards issued Local government means any unit of Circular A-133. or such documents as by the Comptroller Genera! ~'f the local government within a State. OMB or its designee may issue to United States. which are applicable to including a county. borough. replace it. financial audits. municipality. city, town, township. This document is available from the Generally accepted accounting parish. local public authority, special Government Printing Office. principles has the meaning specified in district. school district. intrastate Superintendent of Documents. generally accepted auditing standards district. council of governments. and Washington. DC 20402-9325. issued by the American Institute of any other instrumentaiity of local Corrective action means action taken Certified Public Accountants (AICPA). government. by the auditee that: Indian tribe means any Indian tribe. Major program means a Federal (I) Corrects identified deficiencies: band. nation. or other organized group program determined by the auditor to be (2) Produces recommended or community, including any Alaskan a major program in accordance with i~rovements: or Native village or regional or village 9 _.520 or a program identified as a 3) Demonstrates that audit findings corporation (as defined in. or major program by a Federal agency or are either invalid or do not warrant established under. the Alaskan Native pass-through entity in accordance with auditee action. Claims Settlement Act) that is 9_.215(c). Federal agency has the same meaning recognized by the United Staies as Management decision means the as the term agency in Section 551 (l) of eligible for the special programs and evaluation by the Federal awarding title 5. United States Code. services provided by the United States agency or pass-through entity of the Federal award means Federal to Indians because of their status as audit findings and corrective action financial assistance and Federal cost- Indians. plan and the Issuance of a written reimbursement contracts that non- Internal control means a process. decision as to what corrective action is Federal entities receive directly from effected by an entity's management and necessary, Federal awarding agencies or indirectly other personnel. designed to provide Non-Federal entity means a State, from pass-through entities. It does not reasonable assurance regarding the local government. or non-profit include procurement contracts, under achievement of objectives in the organization. grants or contracts. used to buy goods or following categories: Non-profit organization means: services from vendors. Any audits of (1) Effectiveness and efficiency of (1) any corporation, trust. association, such vendors shall be covered by the operations: cooperative, or other organization that: Ii Federal 'Jter / Vol. 62. No. 125 / Monday. io '~O. 1997 / Notices 35l (1) Is operated primarily for scientific. understanding gained from research single or program-specific audit educational. service. charitable. or directed toward the production of useful conducted for that year in accoraanC€ similar purposes in the public interest; materials. devices. systems. or methods, with the provisions of this part. (ii) Is not organized primarily for including design and development of Guidance on determining Federal profit: and prototypes and processes. awards expended is provided in (Hi) Uses its net proceeds to maintain. Single audit means an audit which S .205. imrzrove. or expand its operations: and includes both the entity's financial (b) Single audit. Non-Federal entitie 2) The term non-profit organization statements and the Federal awards as that expend $300.000 or more in a yea includes non-profit institutions of described in S _.500. in Federal awards shall have a single higher education and hospitals. State means any State of the United audit conducted in accordance With OMB means the Executive Office of States. the District of Columbia. the 9 _.500 except when they elect to the President. Office of Management Commonwealth of Puerto Rico, the have a program-specific audit and Budget. . Virgin Islands. Guam. American Samoa. conducted in accordance with Oversight agency for audit means the the Commonwealth of the Northern paragraph (c) of this section. Federal awarding agency that provides Mariana Islands. and the Trust Territory (c) Program-specific audit election. the predominant amount of direct of the Pacific Islands. any When an auditee expends Federal funding to a recipient not assigned a instrumentality thereof. any multi-State. awards under only one Federal progran cognizant agency for audit. When there regional. or interstate entity which has (excluding R&D) and the Federal is no direct funding. the Federal agency governmental functions. and any Indian program's laws. regulations. or grant with the predominant indirect funding tribe as defined in this section. agreements do not require a financial shall assume the oversight Student Financial Aid (SF A) includes statement audit of the auditee. the responsibilities. The duties of the those programs of general student auditee may elect to have a program- oversight agency for audit are described assistance, such as those authorized by specific audit conducted in accordance in S _.400(b). Title IV of the Higher Education Act of with S _.235. A program-specific Pass-through entity means a non- 1965. as amended. (20 V.S.C. 1070 et audit may not be elected for R&D unless Federal entity that provides a Federal seq.) which is administered by the U.S. all of the Federal awards expended were award to a subrecipient to carry out a Department of Education. and similar received from the same Federal agency. Federal program. programs provided by other Federal or the same Federal agency and the Program-specific audit means an agencies. It does not include programs same pass-through entity. and that audit of one Federal program as which provide fellowships or similar Federal agency. or pass-through entity provided for in 9 _.200(c) and Federal awards to students on a in the case of a subrecipient. approves S _.235. competitive basis. or for specified in advance a program-s~ecific audit. Questioned cost means a cost that is studies or research. (d) Exemption when ederal awards questioned by the auditor because of an Subrecipienc means a non-Federal expended are less than $300,000. Non- audit finding: . entity that expends Federal awards Federal entities that expend less than (1) Which resulted from a violation or received from a pass-through entity to $300.000 a year in Federal awards are possible violation of a provision of a carry out a Federal program. but does exempt from Federal audit requirements law, regulation. contract. grant. not include an individual that is a for that year. except as noted in cooperative agreement. or other beneficiary of such a program. A 9 _.215(a), but records must be agreement or document governing the subrecipiem may also be a recipiem of available for review or audit by use of Federal funds, including funds other Federal awards directly from a appropriate officials of the Federal used to match Federal funds: Federal awarding agency. Guidance on agency. pass-through entity. and (2) Where the costs. at the time of the distinguishing between a subrecipient General Accounting Office (GAO), audit. are not supported by adequate and a vendor is prpvided in S_.210. (e) Federally Funded Research and documentation: or 'Types of compliance requirements Development Centers (FFRDC). (3) Where the costs incurred appear refers to the types of compliance Management of an auditee that owns or unreasonable and do not reflect the requiremC'nts listed in the compliance operates a FFRDC may elect to treat the actions a prudent person would take in supplement. Examples include: FFRDC as a separate entity for purposes the circumstances, activities allowed or unallowed: of this part. Recipient means a non-Federal entity allowable costs/cost principles: cash Basis for detennining Federal that expends Federal awards received management: eligibility: matching. level ~ _.205 directly from a Federal awarding agency of effort. earmarking: and. reporting. awards expended. to carry out a Federal program. Vendor means a dealer. distributor. (a) Determining Federal awards Research and development (R&D) merchant. or other seller providing expended. The determination of when means all research activities, both basic goods or services that are required for an award is expended should be based and applied. and all development the conduct of a Federal program. These on when the activity related to the activities that are performed by a non. goods or services may be for an award occurs. Generally. the activity Federal entity. Research is defined as a organization's own use or for the use of pertains to events that require the non- systematic study directed toward fuller beneficiaries of the Federal program. Federal entity to comply with laws. scientific knowledge or understanding Additi:mal guidance on distinguishing regulations, and the provisions r f of the subject studied. The term research between a subrecipient and a vendor is contracts or grant agreements, such as: also includes activities involving the provided ins_.2IO. expenditure/expense transactions training of indiViduals in research associated with grants. cost- techniques where such activities utilize Subpart B-Audits reimbursement contracts, -cooperative the same facilities as other research and agreements. and direct appropriations: development activities and where such 9_ .200 Audit requirements. the disbursement of funds passed activities are not included in the (a) Audit required. Non-Federal through to subrecipients: the use of loan instruction function. Development is the entities that expend $300.000 or more in proceeds under loan and loan guarantee systematic use of knowledge and a year in Federal awards shall have a programs; the receipt of property: the ,/ ~r I Vol. 62. No. 125 I Monday. Jupd 35292 Federal p-..\. . 1997 I Notices receipt of surplus property: the receipt care services to Medicare eligible (5) Is not subject to compliance or use of program income: the individuals are not considered Federal re(,uirements of the Federal program. distribution or consumption offood awards expended under this part. d) Use of judgment in making commodities: the disbursement of (1) Medicaid. Medicaid payments to a determination. There may be unusual amounts entitling the non-Federal entity subrecipient for providing patient care circumstances or exceptions to the to an interest subsidy: and. the period services to Medicaid eligible individuals listed characteristics. In making the when insurance is in force. are not considered Federal awards determination of whether a subrecipient (b) Loan and loan guarantees (loans). expended under this part unless a State or vendor relationship exists. the Since the Federal Government is at risk requires the funds to be treated as substance of the relationship is more for loans until the debt is repaid. the Federal awards expended because important than the form of the following guidelines shall be used to reimbursement Is on a cost- agreement. It is not expected that all of calculate the value of Federal awards reimbursement basis. the characteristics will be present and expended under loan programs. except 0) Certain loans provided by the judgment should be used in determining as noted in paragraphs (c) and (d) of this National Credit Union Administration. whether an entity is a subrecipient or section: For purposes of this part. loans made vendor. (1) Value of new loans made or from the National Credit Union Share (e) For-profit subrecipient. Since this received during the fiscal year: plus Insurance Fund and the Central part does not apply to for-profit (2) Balance of loans from previous Liquidity Facility that are funded by subrecipients. the pass-through entity is years for which the Federal Government contributions from insured institutions responsible for establishing imposes continuing compliance are not considered Federal awards requirements, as necessary. to ensure re(uirements: plus expended. compliance by for-profit subrecipients. 3) Any interest subsidy, cash. or The contract with the for-profit administrative cost allowance received. 5_.210 Subrecipient and vendor subrecipient should describe applicable (c) Loan and loan guarantees (loans) determinations. compliance requirements and the for- at institutions of higher education. (a) General. An auditee may be a profit subrecipient's compliance When loans are made to students of an recipient. a subrecipient. and a vendor. responsibility. Methods to ensure institution of higher education but the Federal awards expended as a recipient compliance for Federal awards made to institution does not make the loans, or a subrecipient would be subject to for-profit subrecipients may include then only the value of loans made audit under this part. The payments pre-award audits. monitoring during the during the year shall be considered received for goods or services provided contract. and post-award audits. Federal awards expended in that year. as a vendor would not be considered (1) Compliance responsibility for The balance of loans for previous years Federal awards. The guidance in vendors. In most cases. the auditee's is not included as Federal awards paragraphs (b) and (c) of this section compliance responsibility for vendors is expended because the lenGer accounts should be considered in determining only to ensure that the procurement. for the prior balances. whether payments constitute a Federal receipt. and payment for goods and (d) Prior Joan and loan guaranrees award or a payment for goods and services comply with laws. regulations. (loans). Loans. the proceeds of which services, and the provisions of contracts or grant were received and expended in prior- (b) Federal award. Characteristics agreements. Program compliance years. are not considered Federal indicative of -a Federal award received requirements normally do not pass awards expended under this part when by a subrecipient are when the through to vendors. However. the the laws. regulations. and the provisions organization: auditee is responsible for ensuring of contracts or gram agreements (I) Determines who is eligible to compliance for vendor transactions pertaining to such loans impose no receive what Federal financial which are structured such that the continuing compliance requirements assistance: . vendor is responsible for program other than to repay the loans. (2) Has Its performance measured compliance or the vendor's records (e) Endowment funds. The cumulative against whether the objectives of the must be reviewed to determine program balance of FedE'ral awards for Federal program are met: compliance. Also. when these vendor endowmen! funds which are federally (3) Has responsibility for transactions relate to a major program. restricted are considered awards programmatic decision making: the scope of the audit shall include expended in each year in which the (4) Has responsibility for adherence to determining whether these transactions funds are still restricted. applicable Federal program compliance are in compliance with laws. (1) Free ren!. Free rent received by requirements: and regulations. and the provisions of itself is not considered a Federal award (5) Uses the Federal funds to carry out contracts or grant agreements, expended under this part. However, free a program of the organization as rent received as part of an award to compared to providing goods or services S _.215 Relation to other audit carry out a Federal program shall be for a program of the pass-through entity. requirements. included in determining Federal awards (c) Paymenr for goods and services. (a) Audit under this part in lieu of expended and subject to audit under Characteristics indicative of a payment other audits. An audit made in th is part. for goods and services received by a accordance with this part shall be in (g) Valuing non.cash assistance. vendor are when the organization: lieu of any financial audit required Federal non-cash assistance. such as (I) Provides the goods and services under individual Federal awards. To the free rent. food stamps. food within normal business operations: extent this audit meets a Federal commodities. donated property. or (2) Provides similar goods or services agency's needs. it shall rely upon and donated surplus property. shall be to many different purchasers: use such audits. The provisions of this valued at fair market value at the time (3) Operates in a competitive part neither limit the authority of of receipt or the assessed value provided environment: Federal agencies. Including their by the Federal attncy. (4) Provides goods or services that are Inspectors General. or GAO to conduct (h) Medicare. edicare payments to a ancillary to the operation of the Federal or arrange for additional audits (e.g.. non-Federal entity for providing patient program: and financial audits. performance audits. Federal ister / Vol. 62. No. 125 / Monday. 30. 1997 /. Notices 35 " evaluations. inspections. or reviews) nor this part have not been made or have compliance requirements. suggested authorize any auditee to constrain been made but not in accordance with audit procedures. and audit reportinl Federal agencies from carrying out this part. In cases of continued inability requirements. The auditor should additional audits. Any additional audits or unwillingness to have an audit contact the Office of Inspector Gener; shall be planned and performed in such conducted in accordance with this part. of the Federal agency to determine a way as to build upon work performed Federal agencies and pass-through whether such a guide is available. WI by other auditors. . entities shall take appropriate action a current program-specific audit guid (b) Federal agency to pay for using sanctions such as: available. the auditor shall follow additional audits. A Federal agency that (a) Withholding a percentage of GAGAS and the guide when performi conducts or contracts for additional Federal awards until the audit is a program-specific audit. audits shall. consistent with other completed satisfactorily: (b) Program-specific audit guide nOI applicable laws and regulations. arrange (b) Withholding or disallowing available. (1) When a program-specific for funding the full cost of such overhead costs: audit guide is not available. the audite additional audits. (c) Suspending Federal awards until and auditor shall have basically the (c) Request for a program to be the audit is conducted: or same responsibilities for the Federal audited as a major program. A Federal (d) Terminating the Federal award. program as they would have for an auc agency may request an auditee to have S_ .230 Audit costs. of a m~or program in a single audit. a particular Federal program audited as (2) T e auditee shall prepare the a major program in lieu of the Federal (a) Allowable costs. Unless prohibited financial statement(s) for the Federal agency conducting or arranging for the by law. the cost of audits made in program that includes. at a minimum. c additional audits. To allow for planning. accordance with the provisions of this schedule of expenditures of Federal such requests should be made at least part are allowable charges to Federal awards for the program and notes that 180 days prior to the end of the fiscal awards. The charges may be considered describe the significant accounting year to be audited. The auditee. after adirect cost or an allocated indirect policies used in preparing the schedule consultation with its auditor. should cost. as determined in accordance with a summary schedule of prior audit promptly respond to such request by the provisions of applicable OMB cost findings consistent with the informing the Federal agency whether principles circulars. the Federal requirements of~_.315(b). and a the program would otherwise be audited Acquisition Regulation (FAR) (48 CFR corrective action plan consistent with as a major program using the risk-based parts 30 and 31). or other applicable the reluirements ofS_.315(c). audit approach described in 3 _.520 cost principles or regulations. (3) he auditor shall: and. if not. the estimated incremental (b) Unallowable costs. A non-Federal (i) Perform an audit of the financial cost. The Federal agency shall then entity shall not charge the following to statement(s) for the Federal program in promptly confirm to the auditee a Federal award: accordance with GAG AS: whether it wants the program audited as (1) The cost of any audit under the (ii) Obtain an understanding of a major program. If the program is to be Single Audit Act Amendments of 1996 internal control and perform tests of audited as a major program based upon (31 U.s.C. 7501 et seq.) not conducted internal control over the Federal this Federal agency request, and the in accordance with this part. program consistent with the Federal agency agrees to pay the full (2) The cost of auditing a non-Federal requirements of ~ _.500(c) for a major incremental costs, then the auditee shall entity whicb has Federal awards program: have the program audited as a major expended of less than $300.000 per year (iii) Perform procedures to determine program. A pass-through entity may use and is thereby exempted under whether the auditee has complied with the provisions of this paragraph for a 9 _,200(d) from having an audit laws. regulations, and the provisions of subrecipient. conducted under this part. However, contracts or grant agreements that could this does not prohibit a pass-through have a direct and material effect on the ~ _.220 Frequency of audits. entity from charg{ng Federal awards for Federal program consistent with the Except for the provisions for biennial the cost of limited scope audits to requirements of 9 _.500(d) for a major audits provided in paragraphs (a) and monitor its subrecipients in accordance program: and (b) of this section. audits required by with 9_.400(d)(3). provided the (iv) Follow up on prior audit findings, this part shall be performed annually. subrecipient does not have a single perform procedures to assess the Any biennial audit shall cover both audit. For purposes of this part. limited reasonableness of the summary years within the biennial period. scope audits only include agreed-upon schedule of prior audit findings (a) A State or local government that is procedures engagements conducted in prepared by the auditee. and report. as required by constitution or statute, in accordance with either the AICPA's a current year audit finding. when the effect on January 1. 1987, to undergo its generally accepted auditing standards or auditor concludes that the summary audits less frequently thim annually, is attestation standards. that are paid for schedule of prior audit findings permitted to undergo its audits pursuant and arranged by a pass-through entity materially misrepresents the status of to this part biennially. This requirement and address only one or more of the any prior audit finding in accordance must still be in' effect for the biennial following types of compliance with the requirements of 9 _.500(e). period under audit. requirements: activities allowed or (4) The auditor's report(s) may be in (b) Any non-profit organization that unallowed: allowable costs/cost the form of either combined or separate had biennial audits for all biennial principles: eligibility: matching, level of reports and may be organized differently periods ending between July 1. 1992. effort. earmarking: and. reporting. from the manner presented in this and January 1. 1995. is permitted to ~ _.235 Program-specific audits. section. The auditor's report(s) shall undergo its audits pursuant to this part state that the audit was conducted in biennially. (a) Program-specific audit guide accordance with this part and include S _,225 Sanctions. available. In many cases. a program- the following: specific audit guide will be available to (1) An opinion (or disclaimer of No audit costs may be charged to provide specific guidance to the auditor opinion) as to whether the financial Federal awards when audits required by with respect to internal control. statement(s) of the Federal program is 35294 Federal Rpc! ;r I Vol. 62. No. 125 I Monday. Jun~ . 1997 I Notices ..'- presented fairly in aU material respects section. and the audltor's report(s) agreements related to each of Its Federal in conformity with the stated described in paragraph (b)(4) of this pro~rams. _ accounting policies; section. The data collection form (d Prepare appropriate finimcial (ii) A report on Internal control prepared In accordance with statements. including the schedule of related to the Federal program. which S_.320(b). as applicable to a expenditures of Federal awards In shall describe the scope of testing of program-specific audit. and one copy of accordance with S _.31 O. internal control and the results of the this reporting package shall be (e) Ensu,'e that the audits required by tests; submitted to the Federal clearinghouse this part are properly performed and (iil) A report on compliance which designated by OMB to be retained as an submitted when due. When extensions includes an opinion (or disclaimer of archival copy, Also, when the schedule to the report submission due date opinion) as to whether .he auditee of findings and questioned costs required by S _.320(a) are granted by complied with laws. regulations. and disclosed audit findings or the summary the cognizant or oversight agency for the provisions of contracts or grant schedule of prior audit findings audit. promptly notify the Federal agreements which could have a direct reported the status of any audit findings. clearinghouse designated by OMB and and material effect on the Federal the auditee shall submit one copy of the each pass-through entity providing program; and reporting package to the Federal Federal awards of the extension. (iv) A schedule of findings and clearinghouse on behalf of the Federal (1) Follow up and take corrective questioned costs for the Federal awarding agency. or directly to the pass- action on audit findings. including program that includes a summary of the through entity in the case of a preparation of a summary schedule of auditor's results relative to the Federal subrecipient. Instead of submitting the prior audit findings and a corrective program in a format consistent with reporting package to the pass-through action plan in accordance with 9 _.505(d)(l) and findings and entity. when a subrecipient is not ~_.3I5(b) and 9_.315(c). questioned costs consistent with the required to submit a reporting package respectively. re(,uirements of 9 _.505(d)(3). c) Report submission for program- to the pass-through entity. the 1_.305 Auditor selection. specific audirs. (l) The audit shall be subrecipient shall provide written (a) Auditor procurement. In procuring completed and the reporting required by notification to the pass-through entity. audit services. auditees shall follow the paragraph (c)(2) or (c)(3) of this section consistent with the requirements of procurement standards prescribed by submitted within the earlier of 30 days 9_.320(e} (2), A subrecipient may the Grants Management Common Rule after receipt of the auditor's report(s}, or submit a copy of the reporting package (hereinafter referred to as the" A-I 02 nine months after the end of the audit to the pass-through entity to comply Common Rule") published March 11. period. unless a longer period is agreed with this notification requirement. 1988 and amended April 19. 1995 to in advance by the Federal agency that (d) Other sections of this part may (insert appropriate CFR citation!, provided the funding or a.dlfferent apply. Program-specific audits are Circular A-I 10. "Uniform period is specified in a program-specific subject to S _.1 00 through Administrative Requirements for Grants audit guide, (However. for fiscal years 3_.215(b). 3_.220 through and Agreements with Institutions of beginning on or before June 30. 1998. 9 _.230. 9 _.300 through Higher Education. Hospitals and Other the audit shall be completed and the 3_.305.9_.315.9_.320(0 Non-Profit Organizations:' or the FAR required reporting shall be submitted through 3_,3200). 9_.400 through (48 CFR part 42). as applicable (OMB within the earlier of 30 days after 3 _.405. S __51 0 through Circulars are available from the Office of receipt of the auditor's report(s). or 13 3_.515. and other referenced Administration. Publications Office. months after the end of the audit period. provisions of this part unless contrary to room 2200. New Executive Office unless a different period is specified in the provisions of this section, a Building. Was!:lington. DC 20503). a program-specific audit guide_) Unless program-specific audit guide. or Whenever possible. auditees shall make restricted by law or regulation. the prbgram laws and regulations. positive efforts to utilize small auditee shall make report copies Subpart C-Auditees businesses. minority-owned firms. and available for public inspection. women's business enterprises. in (2) When a program-specific audit ~ _.300 Auditee responsibilities. procuring audit services as stated in the guide is available. the auditee shall The auditee shall: A-I02 Common Rule. OMB Circular A- submit to the Federal clearinghouse (a) Identify. in its accounts. all 110. orthe FAR (48 CFR part 42). as designated by OMB the data collection applicable. In requesting proposals for form prepared in accordance with Federal awards received and expended audit services. the objectives and scope s_.320(b}. as applicable to a and the Federal programs under which of the audit should be made clear. program-specific audit. and the they were received. Federal program Factors to be considered in evaluating reporting required by the program- and award identification shall Include. each proposal for audit services include specific audit guide to be retained as an as applicable. the CFDA title and the responsiveness to the request for archival copy. Also. the audltee shall number, award number and year. name proposal. relevant experience. submit to the Federal awarding agency of the Federal agency. and name of the availability of staff with professional or pass-through entity the reporting pass-through entity. qualifications and technical abilities, required by the program-specific audit (b) Maintain internal control over the results of external quality control guide. Federal programs that provides reviews, and price. (3) When a program-specific audit reasonable assurance that the auditee is (b) Restriction on auditor preparing guide is not available, the reporting managing Federal awards in compliance indirect cost proposals. An auditor who package for a program-specific audit with laws. regulations. and the prepares the indirect cost proposal or shall consist of the financial provisions of contracts or grant cost allocation plan may not also be statement(s) of the Federal program, a agreements that could have a material selected to perform the audit required summary schedule of prior audit effect on each of its Federal programs. by this part when the indirect costs findings, and a corrective action plan as (c) Comply with laws. regulations. recovered by the audltee during the described in paragraph (b)(2) of this and the provisions of contracts or grant prior year exceeded $1 million. This Federal T ,ster / Vol. 62. No. 125 / Monday. 60. 1997 / Notices 35, J restriction applies to the base year used identifying number when the CFDA (4) When the auditee believeuhe in the preparation ofthe indirect cost information is not avaiiable. . audit findings are no longer valid or c proposal or cost allocation plan and any (4) Include notes that describe the not warrant further action. the reason: subsequent years in which the resulting significant accounting policies used in for this position shall be described in indirect cost agreement or cost preparing the schedule. the summary schedule. A valid reasor allocation plan is used to recover costs. (5) To the extent practical. pass- for considering an audit finding as not To minimize any disruption in existing through entities should identify in the warranting further action is that all of contracts for audit services. this schedule the totaI amount provided to the following have occurred: paragraph applies to audits offiscal subrecipients from each Federal (i) Two years have passed since the years beginning after June 30. 1998. pro~ram. audit report in which the finding (c) Use of Federal auditors. Federal (6 Include. in either the schedule or occurred was submi.tted to the Federal auditors may perform all or pan of the a note to the schedule. the value of the cIearinthouse: ' work required under this part if they Federal awards expended in the form of (ii) T e Federal agsncy or pass- comply fully with the requireme.nts of non-cash assistance. the amount of through entity is not currently followir insurance in effect during the year. and up with the auditee on the audit this part. loans or loan guarantees outstanding at finding: and S_.310 Financial statements. year end. While not required. it is (iii) A management decision was not (a) Financial statements. The auditee preferable to present this information in issued. shall prepare financial statements that the schedule. (c) Corrective action plan. At the reflect its financial position. results of S_.31S Audit findings follow-up. completion of the audit. the auditee operations or changes in net assets. and. shall prepare a corrective action plan to (a) General. The auditee is responsible address each audit finding included in where appropriate. cash flows for the for follow-up and corrective action on the current year auditor's reports. The fiscal year audited. The financial all audit findings. As part of this corrective action plan shall provide the statements shall be for the same responsibility. the auditee shall prepare name(s) of the contact person(s) organizational unit and fiscal year that a summary schedule of prior audit responsible for corrective action. the is chosen to meet the requirements of findings, The auditee shall also prepare corrective action planned. and the this part. However. organization-wide a corrective action plan for current year anticipated completion date. If the financial statements may also include audit findings. The summary schedule auditee does not agree with the audit departments, agencies, and other of prior audit findings and the findings or believes corrective action is organizational units that have separate corrective action plan shall include the not required. then the corrective action audits in accordance with 9_.500(a) reference numbers the auditor assigns to plan shall include an explanation and and prepare separate financial audit findings under 9_.51O(c}. Since specific reasons. statements. the summary schedule may include (b) Schedule of expenditures of audit findings from multiple years. it ~_.320 Report submission. Federal awards. The auditee shall also shall include the fiscal year in which (a) General. The audit shall be prepare a schedule of expenditures of the finding initially occurred. completed and the data collection form Federal awards for the period covered (b) Summary schedule of prior audit described in paragraph (b) of this by the auditee's financial statements, findings. The summary schedule of section and reporting package described While not required. the auditee may prior audit findings shall report the in paragraph (c) of this section shall be choose to provide information requested status of all audit findings included in submitted within the earlier of 30 days by Federal awarding agencies and pass- the prior audit's schedule of findings after receipt of the auditor's report(s), or through entities to make the schedule and questioned costs relative to Federal nine months after the end of the audit easier to use. For example. when a awards. The suml1)ary schedule shall period. unless a longer period is agreed Federal program has multiple award also include audit findings reported in to in advance by the cognizant or years. the auditee may list the amount the prior audit's summary schedule of oversight agency for audit. (However, of Federal awards expended for each prior audit findings except audit for fiscal years beginning on or before award year separately. At a minimum. findings listed as corrected in June 30. 1998. the audit shall be the schedule shall: accordance with paragraph (b)(I) of this completed and the data collection form (1) List individual Federai programs section, or no longer valid or not and reporting package shall be by Federal agency. For Federal programs warranting further action in accordance submitted within the earlier of 30 days included in a cluster of programs. list with wagraph (b)(4) of this section. after receipt of the auditor's report(s), or individual Federal programs within a (1) 'hen audit findings were fully 13 months after the end of the audit cluster of programs. For R&D. total corrected. the summary schedule need period,) Unless restricted by law or Federal awards expended shall be only list the audit findings and state that regulation; the auditee shall make shown either by individual award or by corrective action was taken. cOFties available for public inspection. Federal agency and major subdivision (2) When audit findings were not b) Data Collection. (1) The auditee within the Federal agency. For example, corrected or were only partially shall submit a data collection form the National Institutes of Health is a corrected, the summary schedule shall which states whether the audit was major ~ubdivision in the Department of describe the planned corrective action completed in accordance with this part Health and Human Services. as well as any partial corrective action and provides information about the (2) For Federal awards received as a taken. auditee. its Federal programs. and the subrecipient. the name of the pass- (3) When corrective action taken is results of the audit. The form shall be through entity and identifying number significantly different from corrective approved by OMB, available from the assigned by the pass-through entity action previously reported in a Federal clearinghouse designated by shall be included. corrective action plan or in the Federal OMB. and include data elements similar (3) Provide total Federal awards agency's or pass-through entity's to those presented in this paragraph. A expended for each individual Federal management decision, the summary senior level representative of the auditee program and the CFDA number or other schedule shall provide an explanation. (e.g.. State controller. director of 35296 Federal R! ,ter / Vol. 62. No. 125 / Monday. Jut 30. 1997 j' Notices <" 4 finance. chief executive officer. or chief (B) Allowable costs/cost principle". questioned costs disclosed audit financial officer) shall sign a statement (C) Cash management. findings relating to Federa! awards that to be included as part of the form (0) Davis-Bacon Act. the Federal awarding agency provided certifying that: the auditee complied (E) Eligibility. directly or the summary schedule of with the requirements of this part. the (F) Equipment and real property prior audit findings reported the status form was prepared in accordance with manattment. of any audit findings relating to Federal this part (and the instructions (G) atching. level of effort. awards that the Federal awarding accompanying the fonn), and the earmarking. agency provided directly. information included in the fonn. in its (H) Period ofilvailability of Federal (e) Additional submission by entirety. are accurate and complete. funds. subrecipients. (I) In addition to the (I) Procurement and suspension and (2) The data collection fonn shall debarment. requirements discussed in paragraph (d) include the following data elements: ill Program income. of this section. auditees that are also (1) The type of report the auditor (K) Real property acquisition and subrecipients shall submit to each pass- issued on the financial statements of the relocation assistance, through entity one copy of the reporting auditee (i.e., unqualified opinion. (L) Reporting. package described in paragraph (c) of qualified opinion. adverse opinion. or (M) Subrecipient monitoring. this section for each pass-through entity disclaimer of opinion). (N) Special tests and provisions. when the schedule of findings and (ii) Where applicable. a statement that (xiii) Audltee Name. Employer questioned costs disclosed audit reportable conditions in internal control Identification Number(s). Name and findings relating to Federal awards that were disclosed by the audit of the Title of Certifying Official. Telephone the pass-through entity provided or the financial statements and whether any Number. Signature. and Date. summary schedule of prior audit such conditions were material (xiv) Auditor Name. Name and Title findings reported the status of any audit weaknesses. of Contact Person. Auditor Address. findings relating to Federal awards that (iii) A statement as to whether the Auditor Telephone Number. Signature. the pass-through entity provided. audit disclosed any noncompliance and Date. (2) Instead of submitting the reporting which is material to the financial (xv) Whether the auditee has ~ither a package to a pass-through entity, when statements of the auditee. cOr,nizant or oversight agency for audit. a subrecipient Is not required to submit (iv) Where applicable. a statement xvi) The name of the cognizant or a reporting package to a pass-through that reportable conditions in internal oversight agency for audit determined in entity pursuant to paragraph (e) (1) of control over major programs were accordance with S _.400(a) and this section. the subrecipient shall disclosed by the audit and whether any S _.400(b), respectively. provide written notification to the pass- such conditions were material (3) Using the information included in through entity that: an audit of the weaknesses. the reporting package described in subrecipient was conducted in (v) The type of report the auditor paragraph (c) of this section. the auditor accordance with this part (including the issued on compliance for major shall complete the applicable sections of period covered by the audit and the programs (i.e., unqualified opinion. the form. The auditor shall sign a name. amount. and CFDA number of the qualified opinion. adverse opinion. or statement to be included as part of the Federal award(s) provided by the pass- disclaimer of opinion). data collection form that indicates. at a through entity); the schedule of findings (vi) A list of the Federal awarding minimum. the source of the information and questioned costs disclosed no audit agencies which will receive a copy of included in the form, the auditor's findings relating to the Federal award(s) the reporting package pursuant to responsibility for the information. that that the pass-through entity provided; 9 _.320(d)(2). the fonn is not a substitute for the and. the summary schedule of prior (vii) A yes or no statement as to reporting package described in audit findings did not report on the whether the auditee qualified as a low- paragraph (c) of this section, and that status of any audit findings relating to risk auditee under 3_ .530, the content of the form is limited to the the Federal award(s) that the pass- (viii) The dollar threshold used to data elements prescribed by OMB. through entity provided. A subrecipient distinguish between Type A and Type B (c) Reporting package. The reporting may submit a copy of the reporting programs as defined in 9_.S20{b). packa~e shall include the: package described in paragraph (c) of (ix) The Catalog of Federal Domestic (I) inancial statements and schedule this section to a pass-through entity to Assistance (CFDA) number for each of expenditures of Federal awards comply with this notification Federal program. as applicable. discussed in 9_.310(a) and requirement. (x) The name of each Federal program s_.310(b), respectively: (f) Requests for report copies. In and identification of each major (2) Summary schedule of prior audit program. Individual programs within a findings discussed In 9 _.315(b); response to requests by a Federal agency cluster of programs should be listed in (3) Auditor's report(s) discussed in or pass-through entity. auditees shall the same level of detail as they are listed 9 _.505: and submit the appropriate copies of the in the schedule of expenditures of (4) Corrective action plan discussed in reporting package described in Federal awards. 9_.315(c). paragraph (c) of this section and. if (xi) The amount of expenditures in (d) Submission to clearinghouse. All requested. a copy of any management the schedule of expenditures of Federal auditees shall submit to the Federal letters issued by the auditor. awards associated with each Federal clearinghouse designated by OMB the (g) Report retention requirements. program. data collection form described in Auditees shall keep one copy of the date (xii) For each Federal program. a yes paragraph (b) of this section and one collection form described in paragraph or no statement as to whether there are copy of the reporting package described (b) of this section and one- copy of the audit findings in each of the following in 8aragraPh (c) of this section for: reporting package described In types of compliance requirements and 1) The Federal clearinghouse to paragraph (c) of this section on file for the total amount of any questioned retain as an archival copy: and three years from the date of submission costs: (2) Each Federal awarding agency to the Federal clearinghouse designated (A) Activities allowed or unallowed. when the schedule of findings and by OMB. Pass-through entities shall Federal i<ii~~ter / Vol. 62. No. 125 / Monday. 1997 / Notices 352 . ke~p subrecipients' submissions on file reassignment. both the old and the new (I) Shall provide technical advice t( for three years from date of receipt. cognizant agency for audit shall notify auditees and auditors as requested. (h) Clearinghouse responsibilities. the auditee. and. if known. the auditor (2) May assume all or some of the The Federal clearinghouse designated of the reassignment. The cognizant responsibilities normally performed b: by OMB shall distribute the reporting agency for audit shall: a cognizant agency for audit. packages received in accordance with (1) Provide technical audit advice and (c) Federal awarding agency paragraph (d)(2) of this section and liaison to auditees and auditors. responsibilities. The Federal awarding ~ _.235(c)(3) to applicable Federal (2) Consider auditee requests for agency shall perform the following for awarding agencies. maintain a data base extensions to the report submission due the Federal awards it makes: of completed audits. provide date required by S _.320(a). The (1) Identify Federal awards made by appropriate information to Federal cognizant agency for audit may grant informing each recipient of the CFDA aq~ncies. and follow up with known extensions for good cause. title and number. award name and a;'fitees which have not submitted the (3) Obtain or conduct quality caltrol number. award year. and if the award i~ re,,'1ired data collection forms and reviews of selected audits made by non- for R&D. When some ofthisinformatiOl reporting packages. Federal auditors. and provide the is not available. the Federal agency shal (1) Clearinghouse address. The results. when appropriate, to other provide information necessary to clearl: address of the Federal clearinghouse interested organizations. describe the Federal award. currently designated by OMB is Federal (4) Promptly inform other affected (2) Advise recipients of requirements Audit Clearinghouse. Bureau of the Federal agencies and appropriate imposed on them by Federal laws. Census. 1201 E. 10th Street. Federal law enforcement officials of any regulations. and the provisions of Jeffersonville. IN 47132. direct reporting by the auditee or its contracts or grant agreements. 0) Electronic filing. Nothing in this auditor of irregularities or illegal acts. as (3) Ensure that audits are completed part shall preclude electronic required by GAGAS or laws and and reports are received in a timely submissions to the Federal regulations. manner and in accordance with the clearinghouse in such manner as may be (5) Advise the auditor and. where requirements of this part. approved by OMB. With OMB approval. appropriate, the auditee of any (4) Provide technical advice and the Federal clearinghouse may pilot test deficiencies found in the audits when counsel to auditees and auditors as methods of electronic submissions. the deficiencies require corrective requested. Subpart D-Federal Agencies and action by the auditor. When advised of (5) Issue a management decision on Pass-Through Entities deficiencies. the auditee shall work with audit findings within six months after the auditor to take corrective action. If receipt of the audit report and ensure S_ .400 Responsibilities. corrective action is not taken, the that the recipient takes appropriate and (a) Cognizanc agency for audit cognizant agency for audit shall notify timely corrective action. responsibilities. Recipien~s expending the auditor. the auditee. and applicable (6) Assign a person responsible for more than $25 million a year in Federal Federal awarding agencies and pass- providing annual updates of the awards shall have a cognizant agency through entities of the facts and make compliance supplement to OMB. for audit. The designated cognizant recommendations for follow-up action. (d) Pass-through encity agency for audit shall be the Federal Major inadequacies or repetitive responsibilities. A pass-through entity awarding agency that provides the substandard performance by auditors shall perform the following for the predominant amount of direct funding shall be referred to appropriate State Federal awards it makes: to a recipient unless OMB makes a licensing agencies and professional (1) Identify Federal awards made by specific cognizant agency for audit bodies for disciplinary action. informing each subrecipient ofCFDA assignment. To provide for continuity of (6) Coordinate. to the extent practical. title and number. award name and cognizance. the determination of the audits or reviews made by or for Federal number. award year, if the award is predominant amount of direct funding agencies that are in addition to the R&D. and name of Federal agency. shall be based upon direct Federal audits made pursuant to this part. so When some of this information is not awards expended in the recipient's that the additional audits or reviews available. the pass-through entity shail fiscal years ending in 1995. 2000. 2005, build upon i1udits performed in provide the best information available to and eveI)' fifth year thereafter. For accordance with this part. describe the Federal award. example. audit cognizance for periods (7) Coordinate a management decision (2) Advise subreclpients of ending in 1997 through 2000 will be for audit findings that affect the Federal requirements imposed on them by determined based on Federal awards programs of morE' than one agency. Federal laws. regulations. and the expended in 1995. (However. for States (8) Coordinate the audit work and provisions of contracts or grant and local governments that expend reporting responsibilities among agreements as well as any supplemental more than $25 million a year in Federal auditors to achieve the most cost- requirements imposed by the pass- awards and have previously assigned effective audit. through entity. cognizant agencies for audit. the (9) For biennial audits permitted (3) Monitor the activities of requirements of this paragraph are not under 9 _.220, consider auditee subrecipients as necessary to ensure that effective until fiscal years beginning requests to qualify as a low-risk auditee Federal awards are used for authorized after June 30. 2000) Notwithstanding under 9_.530(a). p'Jrposes in compliance with laws. the manner in which audit cognizance (b) Oversight agency for audit regulations. and the provisions of is determined. a Federal awarding responsibilities. An auditee which does contracts or grant agreements and that agency with cognizance for an auditee not have a designated cognizant agency performance goals are achieved. may reassign cognizance to another for audit will be under the general (4) Ensure that subreciplents Federal awarding agency which oversight of the Federal agency expending $300,000 or more in Federal provides substantial direct funding and determined in accordance with awards during the subrecipient's fiscal agrees to be the cognizant agency for S _.1 05. The oversight agency for year have met the audit requirements of audit. Within 30 days after any audit: this part for that fiscal year. 35298 Federal Rp,.!,,\ ..:r / Vol. 62. No. 125 / Monday. June( . 1997 / Notices .' (5) Issue a management decision on Subpart E-Auditors (d) Compliance. (I) In addition to the . , audit findings within siX months after 1_.500 Scope of audit requirements of GAGAS. the auditor receipt of the subrecipient's audit report shall determine whether the auditee has and ensure that the subrecipient takes (a) General. The audit shan be complied with laws. regulations, and appropriate and timely corrective conducted in accordance with GAGAS. the provisions of contracts or grant action. The audit shall cover the entire agreements that may have a direct and (6) Consider whether subrecipient operations of the auditee: or. at the material effect on each of its major audits necessitate adjustment of the option of the auditee. such audit shall pro~rams. pass-through entity's own records. include a series of audits that cover (2 The principal compliance (7) Require each subrecipient to departments, ag';ncies, and other requirements applicable to most Federal permit the pass-through entity and organizational U;i1tS which expended or programs and the compliance auditors to have access to the records otherwise administered Federal awards requirements of the largest Federal and financial statements as necessary during such fiscal year. provided that programs are included in the for the paSs-through entity to comply' each such audit shall encompass the compliance supplemenL with this part. financial statements and schedule of (3) For the compliance requirements 1_.405 Management decision. expenditures of Federal awards for each related to Federal programs contained in such department. agency. and other the compliance supplement. an audit of (a) General. The management decision organizational unit. which shall be these compliance requirements will shall clearly state whether or not the considered to be a non-Federal entity. meet the requirements of this pan. audit finding is sustained. the reasons The financial statements and schedule Where there have been changes to the for the decision, and the expected of expenditures of Federal awards shall compliance requirements and the auditee action to repay disallowed costs, be for the same fiscal year. changes are not reflected in the make financial adjustments. or take (b) Financial statements. The auditor compliance supplement. the auditor other action. If the auditee has not shall determine whether the financial shall determine the current compliance completed corrective action. a timetable statements of the auditee are presented requirements and modify the audit for follow-up should be given. Prior to fairly in all material respects in procedures accordingly. For those issuing the management decision. the conformity with generally accepted Federal programs not covered in the Federal agency or pass-through entity accounting principles. The auditor shall compliance supplement. the auditor may request additional information or also determine whether the schedule of should use the types of compliance documentation from the auditee. expenditures of Federal awards is requirements contained in the including a request for auditor presented fairly in all material respects compliance supplement as guidance for assurance related to the documentation. in relation to the auditee's financial identifying the types of compliance as a way of mitigating disallowed costs. statements taken as a whole. requirements to test. and determine the The management decision'should (c) Internal concrol. (1) In addition to requirements governing the Federal describe any appeal process available to the requirements of GAGAS. the auditor program by reviewing the provisions of the auditee. shall perform procedures to obtain an contracts and grant agreements and the (b) Federal agency. As provided in understanding of internal control over laws and regulations referred to in such 3_, 400(a)(7). the cognizant agency Federal programs sufficient to plan the contracts and grant agreements. for audit shall be responsible for audit to support a low assessed level of (4) The compliance testing shall coordinating a management decision for control risk for major programs. include tests of transactions and such audit findings that alTect the programs (2) Except as provided in paragraph other auditing procedures necessary to of more than one Federal agency. As (c) (3) of this section, the auditor shall: provide the auditor sufficient evidence provided in 9 _' 400(c)(5), a Federal (0 Plan the testing of internal conerol to support an opinion on compliance. awarding agency is responsible for over major programs to support a low (e) Audit [allow-up, The auditor shall issuing a management decision for assessed level of control risk for the follow-up on prior audit findings. findings that relate to Federal awards it asSertions relevant to the compliance perform procedures to assess the makes to recipients. Alternate requirements for each major program: reasonableness of the summary arrangements may be made on a case- and schedule of prior audit findings by-case basis by agreement among the (Ii) Perform testing of internal control prepared by the auditee in accordance Federal agencies concerned. as planned in paragraph (c)(2)(i)of this with S_o 315(b). and report, as a (c) Pass, through entity. As provided section. current year audit finding. when the in 9 _" 400(d)(5). the pass. through (3) When imernal control over some auditor concludes that the summary entity shall be responsible for making or all of the compliance requirements schedule of prior audit findings the management decision for audit for a major program are likely to be materially misrepresents the status of findings that relate to Federal awards it ineffective in preventing or detecting any prior audit finding. The auditor makes to subrecipients. noncompliance. the planning and shall perform audit follow-up (d) Time requirements. The entity performing of testing described in procedures regardless of whether a prior responsible for making the management paragraph (c)(2) of this section are not audit finding relates to a major program decision shall do so within six months required for those compliance in the current year. of receipt of the audit report. Corrective requirements. However. the auditor (1) Data Collection Form. As required in ~_. 320(b)(3), the auditor shall action should be initiated within six shall report a reportable condition complete and sign specified sections of months after receipt of the audit report (including whether any such condition the data collection form. and proceed as rapidly as possible. is a material weakness) in accordance (e) Reference numbers. Management with 9 _' 510. assess the related S _.505 Audit reporting. decisions shall include the reference control risk at the maximum. and The auditor's report(s) may be in the numbers the auditor assigned to each consider whether additional compliance form of either combined or separate audit finding in accordance with tests are required because of ineffective reports and may be organized differently 9_. SIO(c), internal control. from the manner presented in this ~.. Federal ltt ;~,\~er I Vol. 62. No. 125 / Monday. 10. 1997 / Notices 35. , requirement for a major program or a sectJon. The auditor's report(s) shall qualified opinion. adverse opinion. or state that the audit was conducted in disclaimer of opinion); audit objective identified in the- accordance with this part and include (vi) A statement as to whether the compliance supplement. the following: audit disclosed any audit findings (3) Known questioned costs which (a) An opinion (or disclaimer of which the auditor is required to report greater than $10.000 for a type of opinion) as to whether the financial under S_. 510(a); compliance requirement for a major statements are presented fairly in all (vii) An identification of major program. Known questioned costs are material respects in conformity with programs; those specifically identified by the generally accepted accounting (viii) The dollar threshold used to auditor. In evaluating the effect of principles and an opinion (or disclaimer distinguish between Type A and Type B questioned costs on the opinion on of opinion) as to whether the schedule programs. as described in 9 _' 520(b); compliance. the auditor considers the of expenditures of Federal awards is and best estimate of total costs questioned presented fairly in all material respects {ix) A statement as to whether the (likely questioned costs). not just ,the in relation to the financial statements audltee qualified as a low-risk auditee questioned costs specifically identified taken as a whole. under 9_ .530. (known questioned costs). The auditor (b) A report on internal control related (2) Findings relating to the financial shall also report known questioned to the financial statements and major statements which are required to be costs when likely questioned costs are programs. This report shall describe the reported in accordance with GAGAS. greater than $10.000 for a type of scope of testing of internal control and (3) Findings and questioned costs for compliance requirement for a major the results of the tests. and. where Federal awards which shall include program. In reporting questioned costs. applicable. refer to the separate audit findings as defined in 9 _' the auditor shall include information to schedule of findings and questioned 510(a). provide proper perspective for judging costs described in paragraph (d) of this (i) Audit findings (e.g.. internal the prevalence and consequences of the section. control findings. compliance findings. questioned costs. (c) A report on compliance with laws. questioned costs, or fraud) which relate (4) Known questioned costs which are regulations, and the provisions of to the same issue should be presented greater than $10,000 for a Federal contracts or grant agreements. as a single audit finding. Where program which is not audited as a major noncompliance with which could have practical. audit findings should be program. Except for audit follow-up. the a material effect on the financial organized by Federal agency or. pass- auditor is not required under this part statements. This report shall also through entity, to perform audit procedures for such a include an opinion (or disclaimer of (ii) Audit findings which relate to Federal program; therefore. the auditor both the financial statements and opinion) as to whether the auditee Federal awards, as reported under will normally not find questioned costs complied with laws. regulations. and paragraphs (d)(2) and (d)(3) of this for a program which is not audited as the provisions of contracts or grant a major program. However. if the agreements which could nave a direct section. respectively, should be reported auditor does become aware of and material effect on each major in both sections of the schedule. questioned costs for a Federal program program. and, where applicable. refer to However. the reporting in one section of which is not audited as a major program the separate schedule of findings and the schedule may be in summary form (e.g.. as part of audit follow-up or other questioned costs described in paragraph with a reference to a detailed reporting audit procedures) and the known (d) of this section. in the other section of the schedule. questioned costs are greater than (d) A schedule of findings and ~ _.510 Audit findings. $10.000. then the auditor shall report questioned costs which shall include (a) Audit findings reported. The this as an audit finding. the following three components: (1) A summary of the auditor's results auditor shall report the following as (5) The circumstances concerning which shall include: audit findings in a.schedule of findings why the auditor's report on compliance (1) The type of report the auditor and questioned costs: for major programs is other than an issued on the financial statements of the (1) Reportable conditions in internal unqualified opinion. unless such auditee (i.e.. unqualified opinion. control over major programs. The circumstances are otherwise reported as qualified opinion, adverse opinion. or auditor's determination of whether a audit findings in the schedule of disclaimer of opinion): deficiency in internal control is a findings and questioned costs for (ii) Where applicable. a statement that reportable condition for the purpose of Federal awards. reportable conditions in internal control reporting an audit finding is in relation (6) Known fraud affecting a Federal were disclosed by the audit of the to a type of compliance requirement for award. unless such fraud is otherwise financial statements and whether any a major program or an audit objective reported as an audit finding in the such conditions were material identified in the compliance schedule of findings and questioned weaknesses: supplement. The auditor shall identify costs for Federal awards. This paragraph (Hi) A statement as to whether the reportable conditions which are does not require the auditor to make an audit disclosed any noncompliance individually or cumulatively material additional reporting when the auditor which is material to the financial weaknesses. confirms that the fraud was reported statements of the auditee; (2) Material noncompliance with the outside of the auditor's reports under (iv) Where applicable. a stc,ement provisions of laws. regulations, the direct reporting requirements of that reportable conditions in internal contracts, or grant agreements related to GAGAS. control over major programs were a major program. The auditor's (7) Instances where the results of disclosed by the audit and whether any determination of whether a audit follow-up procedures disclosed such conditions were material noncompliance with the provisions of that the summary schedule of prior weaknesses; laws. regulations, contracts. or grant audit findings prepared by the auditee (v) The type of report the auditor agreements is material for the purpose in accordance with 9_.31 5 (b) issued on compliance for major of reporting an audit finding is in materially misrepresents the status of programs (i.e.. unqualified opinion, relation to a type of compliance any prior audit finding. 35300 Federal p-'TjSit~r / Vol. 62. No. 125 / Monday, June\ /. 1997 / Notices (b) Audit finding detail. Audit cognizant agency for audit. oversight programs. the auditor shall consider this findings shall be presented in sufficient agency for audit. or pass-through entity . Federal program as a Type A,progr.am detail for the auditee to prepare a to extend the retention period. When and exclude its values in determining corrective action plan and take the auditor is aware that the Federal other Type A programs. corrective action and for Federal awarding agency. pass-through entity. or (4) For biennial audits permitted agencies and pass-through entities to auditee is contesting an audit finding. under 3 _.220. the determination of arrive at a management decision. The the auditor shall contact the parties Type A and Type B programs shall be foHowing specific information shall be contesting the audit finding for based upon the Federal awards included. as applicable. in audit guidance prior to destruction of the eXfcended during the two-year period. findings: working papers and reports. c) Step 2. (1) The auditor shall {1) Federal program and specific (b) Access to working papers. Audit identify Type A programs which are Fe,jeral award identification including working papers shall be made avaIlable low-risk. For a Type A program to be theCFDA title and number. Federal upon request to the cognizant or considered low-risk. it shall have been award number and year. name of oversight agency for audit or its audited as a m;:yor program in at least Federal agency. and name of the designee. a Federal agency providing one of the two most recent audit periods applicable pass-through entity. When direct or indirect funding. or GAO at the (in the most recent audit period in the information. such as the CFDA title and completion of the audit. as part of a case of a biennial audit). and. in the number or Federal award number. is not quality review. to resolve audit findings. most recent audit period. it shall have available. the auditor shall provide the or to carry out oversight responsibilities had no audit findings under best information available to describe consistent with the purposes of this S _,51 o (a) . However. the auditor may the Federal award. part. Access to working papers includes use judgment and consider that audit (2) The criteria or specific the right of Federal agencies to obtain findings from questioned costs under requirement upon which the audit copies of working papers. as is 3_.510(a)(3) and 3_.510(a)(4). finding is based. including statutory, reasonable and necessary. fraud under 3 _.51 o (a) (6), and audit regulatory. or other citation. ~ _.520 Major program determination. follow-up for the summary schedule of (3) The condition found. including prior audit findings under facts that support the deficiency (a) General. The auditor shall use a 3_.510(a)(7) do not preclude the identified in the audit finding. risk-based approach to determine which Type A program from being low-risk. (4) Identification of questioned costs Federal programs are major programs. The auditor shall consider: the criteria and how they were computed. This risk-based approach shall include in 3_.525(c). 3_.525(d}(I}. (5) Information to provide proper consideration of: Current and prior S---,-.525(d)(2). and S_.525(d)(3); perspective for judging the prevalence audit experience. oversight by Federal the results of audit follow-up; whether and consequences of the audit findings. agencies and pass-through entities. and any changes in personnel or systems such as whether the audit findings the inherent risk of the Federal program. affecting a Type A program have represent an isolated instance or a The process in paragraphs (b) through significantly increased risk: and apply systemic problem. Where appropriate. (i) of this section shall be followed. professional judgment in determining instances identified shall be related to (b) Step 1. (1) The auditor shall whether a Type A program is low-risk. the universe and the number of cases identify the larger Federal programs, (2) Notwithstanding paragraph (c)(I) examined and be quantified in terms of which shall be labeled Type A of this section. OMS may approve a dollar value. programs. Type A programs are defined Federal awarding agency's request that (6) The possible asserted effect to as Federal programs with Federal a Type A program at certain recipients provide sufficient information to the awards expended during the audit may not be considered low-risk. For auditee and Federal agency. or pass- period exceeding the larger of: example. it may be necessary for a iarge through entity in the case of a (1) $300,000 or three percent (.03) of Type A program to be audited as major subrecipient. to permit them to total Federal awardS expended in the each year at particular recipients to determi ne the cause and effect to case of an auditee for which total allow the Federal agency to comply facilitate prompt and proper corrective Federal awards expended equal or with the Government Management action. exceed $300.000 but are less than or Reform Act of 1994 (31 U.S.C. 3515). (7) Recommendations to prevent equal to S100 million. The Federal agency shall notify the future occurrences of the deficiency (ii) S3 million or three-tenths of one recipient and. if known. the auditor at identified in the audit finding. percent (.003) of total Federal awards least 180 days prior to the end of the (8) Views of responsible officials of expended in the case of an auditee for fiscal year to be audited of OMB's the auditee when there is disagreement which total Federal awards expended apfcroval. with the audit findings. to the extent exceed S100 million but are less than or d} Step 3. (l) The auditor shall practical. ' equal to $10 billion. identify Type B programs which are (c) Reference numbers. Each audit (Hi) $30 million or 15 hundredths of high-risk using professional judgment finding in the schedule of findings and one percent (.0015) of total Federal and the criteria in S _.525. However. questioned costs shall include a awards expended in the case of an should the auditor select Option 2 reference number to allow for easy auditee for which total Federal awards under Step 4 (paragraph (e)(2)(i) (B) of referencing of the audit findings during expended exceed $10 billion. this section). the auditor is not required follow-up. (2) Federal programs not labeled Type to identify more high-risk Type B S_.515 Audit working papers. A under paragraph (b)(1) of this section programs than the number of low-risk shall be labeled Type B programs. Type A programs. Except for known (a) Retention of working papers. The (3) The inclusion of large loan and reportable conditions in internal contra auditor shall retain working papers and loan guarantees (loans) should not result or compliance problems as discussed lr reports for a minimum of three years in the exclusion of other programs as 3_.525(b)(1). S_.525(b)(2). and after the date of issuance of the auditor's Type A programs. When a Federal 3_.525(c)(1}. a single criteria in report(s) to the auditee. unless the program providing loans significantly 3 _.525 would seldom cause a Type auditor is notified in writing by the affects the number or size of Type A B program to be considered high-risk. t oj Federal Rr '<:~er / Vol. 62. No. 125 / Monday, Jui~ ~O. 1997 / Notices 3531 ~ . (2) The auditor is not expected to the risk analysis process used in (I) A Federal program administered perform risk assessments on relatively determining major programs. under multiple internal control - small Federal programs. Therefore. the (h) Auditor'sjudgment. When the structures may have higher risk. When auditor is only required to perform risk major program determination was assessing risk in a large single audit. th assessments on Type B programs that performed and documented in auditor shall consider whether exceed the larger of: accordance with this part. the auditor's weaknesses are isolated in a single (I) $100.000 or three-tenths of one judgment in applying the risk-based operating unit (e.g.. one college campw percent (.003) of total Federal awards approach to determine major programs or {t:ervasive throughout the entity. expended when the auditee has less shall be presumed correct. Challenges ii) When significant parts of a Feder< than or equal to $100 million in total by Federal agencies and pass-through program are passed through (J Federal awards expended. entities shall only be for clearly subrecipients. a weak system for (ii) $300.000 or three-hundredths of impro~r use of the guidance in this monitoring subrecipients would one percent (.0003) of total Federal part, H(jwever. Federal agencies and indicate higher risk. awards expended when the auditee has pass-through entities may provide (iii) The extent to which computer more than $100 million in total Federal auditors guidance about the risk of a processing is used to administer F edera awards expended. partiCular Federal program and the programs. as well as the complexity of (e) Step 4. At a minimum. the auditor auditor shall consider this guidance in that processing. should be considered shall audit all of the following as major determining major programs in audits by the auditor in assessing risk. New pro~rams: not yet completed. and recently modified computer (1 All Type A programs. except the (iJ Deviation from use of risk criteria. systems may also indicate risk. auditor may exclude any Type A For first-year audits. the auditor may (2) Prior audit findings would programs identified as low-risk under elect to determine major programs as all indicate higher risk. particularly when Step 2 (paragraph (cHI) of this section). Type A programs plus any Type B the situations identified in the audit (2) (i) High-risk Type B programs as programs as necessary to meet the findings could have a significant impact identified under either of the following percentage of coverage rule discussed in on a Federal program or have not been two options: ' paragraph (0 of this section. Under this corrected. (A) Option 1. At least one half of the option. the auditor would not be (3) Feder?11 programs not recently Type B programs identified as high-risk required to perform the procedures audited as major programs may be of under Step 3 (paragraph (d) of this discussed in paragraphs (c). (d). and (e) higher risk than Federal programs section), except this paragraph of this section. recently audited as major programs (e)(2)(i)(A) does not require the auditor (I) A first-year audit is the first year without audit findings. to audit more high-risk Type B programs the entity is audited under this part or (c) Oversight exercised by Federal than the number of low-risk Type A the first year of a change of auditors. agencies and pass-through entities. (1) programs identified as low-risk under (2) To ensure that a frequent change Oversight exercised by Federal agencies Step 2. . of auditors would not preclude audit of or pass-through entities could indicate (B) Option 2. One high-risk Type B high-risk Type B programs, this election risk. For example. recent monitoring or program for each Type A program for first-year audits may not be used by other reviews performed by an oversight identified as low-risk under Step 2. an auditee more than once in every entity which disclosed no significant (ii) When identifying which high-risk three years. problems would indicate lower risk. Type B programs to audit as major However. monitoring which disclosed under either Option 1 or 2 in paragraph ~_,525 Criteria for Federal program significant problems would indicate (e)(2) (i)(A) or (B) of this section, the risk. hi~her risk. auditor is encouraged to use an (a) General. The auditor's 2) Federal agencies. with the approach which provides an determination should be based on an concurrence ofOMB, may identify opportunity for different high-risk Type overall evaluation of the risk of Federal programs which are higher risk. B programs to be audited as major over noncompliance occurring which could OMB plans to provide this identification a period of time. be material to the Federal program. The in the compliance s~plement. (3) Such additional programs as may auditor shall use auditor judgment and (d) Inherent risk 0 the Federal be necessary to comply with the consider criteria. such as described in program. (1) The nature of a Federal percentage or coverage rule discussed in paragraphs (b), (c), and (d) of this program may indicate risk. paragraph (0 of this section. This section, to identify risk in Federal Consideration should be given to the paragraph (e)(3) may require the auditor programs. Also. as part of the risk complexity of the program and the to audit more programs as major than analysis. the auditor may wish to extent to which the Federal program the number of Type A programs. discuss a particular Federal program contracts for goods and services. For (1) Percenrage of coverage rule. The with auditee management and the example. Federal programs that disburse auditor shall audit as major programs Federal agency or pass-through entity. funds through third party contracts or Federal programs with Federal awards (b) Current and prior audit have eligibility criteria may be of higher expended that. in the aggregate, experience. (1) Weaknesses in internal risk. Federal programs primarily encompass at least 50 percent of total control over Federal programs would involving staff payroll costs may have a Federal awards expended. If the auditee indicate higher risk. Consideration high-risk for time and effort reporting, meets the criteria in 9_.530 for a shruld be given to the control but otherwise be at low-risk. low-risk auditee, the auditor need only environment over Federal programs and (2) The phase of a Federal program in audit as mcUor programs Federal such factors as the expectation of its life cycle at the Federal agency may programs With Federal awards management's adherence to applicable indicate risk. For example, a new expended that. in the aggregate, laws and regulations and the provisions Federal program with new or interim encompass at least 25 percent of total or contracts and grant agreements and regulations may have higher risk than Federal awards expended. the competence and experience of an established program with time.tested (g) Documentation of risk. The auditor personnel who administer the Federal regulations. Also, significant changes in shall dOcument in the working papers programs. Federal programs. laws, regulations, or 35302 Federal/Vol. 62. No. 125 / Monday. J. 1991 / Notices . . -,-> . '( '''/....-'- the provisions of contracts or grant Appendix S to Part _ -Ci~ular A- the'November 5. j 99~. Fed~al Register agreements may increase risk. 133 Compliance Supplement . are available elec~omcallY on thru~1B (3) The phase of a Federal program in . . home p~e at http.l/ '!ifi I t the auditee may indicate Note: ProVlSlonal OMB Circ~ar A-l33 www.whItehouse.gov/WH/EOP/omb. Its Fe eyc e a I d . th fi t d Compliance Supplement is available from the under the caption "Federal Register risk. or examp e. u~ng e. rs an Office of Administration. P":>Iications Office. Submissions." last years that an auditee partIcipates in room 2200. New Executiw:mce Building. a Federal program. the risk may be Washington. DC 20S03. SUPPLEMENTARY INFORMAll0N: higher due to ~t.art-up or closeout of IFR Doc, 97-16965 Filed 6-27-97; 8:45 am] A. Background program actiVities and staff. (4) Type B programs with larger Blll"~ CODE 3110..01-P As part of the Single Audit Act Federal awards expended would be of -~ Amendments of 1996 (l9?6 higher risk than programs with OFfl"E OF MANAGEMENT AND Amendments). Congress mtended to substantially smaller Federal awards Bur:i::ET improve the usefulness and expended. .,. ~ effectiveness of single audit reporting .. ' . . OMS Circular A-133 Information with respect to information provided by S .530 Cntena for a low-nsk auditee. C II . U d OMS R . "oth auditors and auditees In its report - 0 ectlon n er eVlew.' . An auditee which meets all of the, on the 1996 Amendments, the House following conditions for each of the AGENCY: Office of Management and Committee on Government Reform and preceding two years (or. In the case of Budget. Oversight stated that "the complexity of biennial audits. preceding two audit ACl10N: Notice. the reports makes it difficult for the periods) shall qualify as a low-risk . average reader to understand what has auditee and be eligible for reduced audit SUMMARY: In accordance WIth the been audited and reported" .. .. A coverage in accordance with 9_.520: Paperwork Reduction Act of 1980. as summary of the audit results would (a) Single audits were performed on am:nded (44 U.S.C. 3501 :t seq.). ~hiS highlight important information and an annual basis in accordance with the ' notIce ~nnounces that an lOf?rmatIon thus enable users to quickly discern the provisions of this part. A non-Federal collectIon request was submItted t.o the overall results of an audit'" (H.R. Report entity that has biennial audits does not Office of Management an? Budget s 104-607. page 18). qualify as a low~risk auditee. unless (OMB) Office o~ InformatIon ~nd The revised information collection agreed to in advance by the cognizant or Regulatory AffaIrs for processmg un?er requirements included in the proposed oversight agency for audit. 5 CFR I ~20.1 O. The first notice of thIS revision of Office of Management and (b) The auditor's opinions on the informatIOn collection request. as . Budget (OMB) Circular A-133. re-titled financial statements and the schedule of required by the Paperwork ReductIon "Audits of States. Local Governments. expenditures of Federal a~ards were Act., was published in the Federal and Non-Profit Organizations," unqualified. However. the cognizant or RegISter on November 5. 1996 (61 ~~ published in the November 5. 1996. oversight agency for audit may judge 57232). as. part of the propos:d reVISIOn Federal Register notice (61 FR 57232). that an opinion qualification does not of OMB Circular A-133. re-tltled are intended to improve both the affect the management of Federal .. Audits of States. Loc.al ~over,x;ments. content of single audit reports and the awards and provide a waiver. and N~n.Profh ~rgamzatl?ns. dissemination of information included (c) There were no deficiencies in The mformatlon coll~ctlon re~uest . therein to various report users (e.g.. internal control which were identified involv:s two proposed Informat1?~i. Congress. Federal program managers. as material weaknesses under the collections from two,types of en~ltles. pass-through entities). As indicated in requirements of GAGAS. However. the (1) Repo.rts fron: auditors to a~dltee~ the November 5, 1996, Federal Register cognizant or oversight agency for audit concerning audit results. audit findmgs. notice. OMB believes that the revised may judge that any identified material and qves~ioned cdsts: and. (2) reports information collection requirements weaknesses do not affect the from audltees to the Fe~eral. included in the proposed revision of management of Federal awards and Government ~roviding informatIOn Circular A-133 would result in provide a waiver. abo~t ~he audltees, the awards they significantly improved single audit (d) None of the Federal programs had admlOlster. an~ t~e audit ~esults.. reporting and governmentwide data audit findings from any of the following Circ~lar A-133 s information collectlOn collection. in either of the preceding two years (or. requirements will apply to Circular A-133's information in the case of biennial audits, preceding approximately 25,000 States, local collection requirements will apply to two audit periods) in which they were governm~nts. and non-profit approximately 25.000 States, local classified as Type A programs: organizations on an annual basis. governments. and non-profit (1) Internal control deficiencies which DATES: Written comments must be organizations on an annual basis. OMB's were identified as material weaknesses: received by July 30. 1997. estimate of the total annual reporting (2) Noncompliance with the ADDRESSES: Written comments should and record keeping burden that will provisions of laws. regulations. be sent to: Edward Springer, Office of result from this information collection is contracts. or grant agreements which Information and Regulatory Affairs. presented in Table 1. have a material effect on the Type A OMB. Room 10236. New Executive B P bli d R program: or Office Building. Washington. DC 20503. . u c Comments an esponses (3) Known or likely questioned costs Electronic mail comments may be Pursuant to the November 5, 1996. that exceed five percent of the total submitted via the Internet to Federal Register notice. OMB received Federal awards expended for a Type A SPRINGER_E@A1.EOP.GOV. approximately 150 comments relating to program during the year. FOR FURTHER INFORMAll0N CONTACT: For this proposed information collection. . further information. contact Sheila Letters came from Federal agencies Appen~lx A to Part _-Data Conley. Office of Federal Financial (including Offices of Inspectors Collection Form (Form SF-5AC) Management. OMB (telephone: 202- General). State gove.rnments (~ncluding !insert SF-SAC after finalized} 395-3993). The text of this Notice and State auditors), certified public - AMENDMENT B 875330 Page: 18 of 35 04/27/2004 03:53P Teak J Simonton Eagle, CO 121 R 0,00 o 0,00 COLORADO DIVISION OF HOUSING 1 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR 2004 EXHIBIT B HUD R~lease Date: January 28, 2004 MAXIMUM RENTS INCOME LIMIT S County j : 0 BnRM 1 BnRM 2 BDRM 3 BDRM 4 BDRM : 1. PERSON 2 PERSON 3 PERSON 4 PER~ON 5 PERSON 61'ERSON 7 PERSON 8 PERSON I I " I --------------...- : --------: ----------...- ...-----..---....--.. ---...--------- ------------- ----------: --------------- ...---...----.....---- -....---......-------- --------..-~---..... _.....-....------- ---------------- ----...-..........-.. ---_.......---_...----..--- 1 I I ' : 120%: $1,467.00 $1,572.00 $1,887.00 $2,181.00 $2,433.00: $58,680 $67,080 $75,480 $83,~80 $90,600 $97,320 $104,040 $1l0,760 I I I i : 100%: $1,222.00 $1,310.00 $1,572.00 $1,817.00 $2,027.00: $48,900 $55,900 $62,900 $69,900 $75,500 $81,100 $86,700 $92,300 Adams: 80% I $978.00 $1,048.00 $1,258.00 $1,453.00 $1,621.00: $39,150 $44,750 $50,350 $55,~00 $60,400 $64,850 $69,350 $73,800 I I I ! 65% $794.00 $851.00 $1,022.00 $1,181.00 $1,317.00! $31,785 $36,335 $40,885 $45,435 $49,075 $52,715 $56,355 $59,995 ! 60% $733.00 $786.00 $943.00 $1,090.00 $1,216.00! $29,340 $33,540 $37,740 $41,940 $45,300 $48,660 $52,020 $55,380 I I ' : 55% $672.00 $720.00 $864.00 $999.00 $1,1l5.00: $26,895 $30,745 $34,595 $38,445 $41,525 $44,605 $47,685 $50,765 1 I : : 50% $611.00 $655.00 $786.00 $908.00 $1,013.00: $24,450 $27,950 $31,450 $34,950 $37,750 $40,550 $43,350 $46,150 t I i : 45% I $550.00 $589.00 $707.00 $817.00 $912.00: $22,005 $25,155 $28,305 $31,455 $33,975 $36,495 $39,015 $41,535 : 40%! $489.00 $524.00 $629.00 $727.00 $811.00! $19,560 $22,360 $25,160 $27,~60 $30,200 $32,440 $34,680 $36,920 : 30%! $367.00 $393.00 $471.00 $545.00 $608.00! $14,700 $16,800 $18,850 $20,~50 $22,650 $24,350 $26,000 $27,700 ----..---..--..--,-----;r-----------------------------------------------------,--------------------------------------------r--------------------------------------------------------- : 120%: $1,467.00 $1,572.00 $1,887.00 $2,181.00 $2,433.00: $58,680 $67,080 $75,480 $83,$80 $90,600 $97,320 $104,040 $110,760 I I I i ! 100%: $1,222.00 $1,310.00 $1,572.00 $1,817.00 $2,027.00! $48,900 $55,900 $62,900 $69,900 $75,500 $81,100 $86,700 $92,300 Arapahoe: 80%: $978.00 $1,048.00 $1,258.00 $1,453.00 $1,621.00: $39,150 $44,750 $50,350 $55,~00 $60,400 $64,850 $69,350 $73,800 ! 65%! $794.00 $851.00 $1,022.00 $1,181.00 $1,317.00! $31,785 $36,335 $40,885 $45,435 $49,075 $52,715 $56,355 $59,995 I I I I : 60%: $733.00 $786.00 $943.00 $1,090.00 $1,216.00: $29,340 $33,540 $37,740 $41,940 $45,300 $48,660 $52,020 $55,380 1 I . I \ : 55%: $672.00 $720.00 $864.00 $999.00 $1,1l5.00: $26,895 $30,745 $34,595 $38, ]45 $41,525 $44,605 $47,685 $50,765 t . I '1 : 50%: $611.00 $655.00 $786.00 $908.00 $1,013.00! $24,450 $27,950 $31,450 $34,~50 $37,750 $40,550 $43,350 $46,150 ! 45%! $550.00 $589.00 $707.00 $817.00 $912.00! $22,005 $25,155 $28,305 $31,155 $33,975 $36,495 $39,015 $41,535 I I I : 40%: $489.00 $524.00 $629.00 $727.00 $811.00: $19,560 $22,360 $25,160 $27,'./60 $30,200 $32,440 $34,680 $36,920 I . I ; : 30%: $367.00 $393.00 $471.00 $545.00 $608.00: $14,700 $16,800 $18,850 $20,950 $22,650 $24,350 $26,000 $27,700 --------------,-----~-----------------------------------------------------,--------------------------------------------~--------------------------------------------------------- ! 120%: $1,827.00 $1,957.00 $2,349.00 $2,715.00 $3,027.00! $73,080 $83,520 $93,960 $104,~00 $Il2,800 $121,080 $129,480 $137,760 ! 100%: $1,522.00 $1,631.00 $1,957.00 $2,262.00 $2,522.00! $60,900 $69,600 $78,300 $870400 $94,000 $100,900 $107,900 $114,800 Boulder: 80% : $1,006.00 $1,078.00 $1,293.00 $1,495.00 $1,667.00: $40,250 $46,000 $51,750 $57,~00 $62,100 $66,700 $71,300 $75,900 : 65%: $989.00 $1,060.00 $1,272.00 $1,470.00 $1,639.00: $39,585 $45,240 $50,895 $56,$50 $61,100 $65,585 $70,135 $74,620 . I . , ! 60%: $913.00 $978.00 $1,174.00 $1,357.00 $1,513.00 i $36,540 $41,760 $46,980 $52,iOO $56,400 $60,540 $64,740 $68,880 I I I I ! 55%! $837.00 $897.00 $1,076.00 $1,244.00 $1,387.00! $33,495 $38,280 $43,065 $47,,!50 $51,700 $55,495 $59,345 $63,140 ! 50%! $761.00 $815.00 $978.00 $1,131.00 $1,261.00! $30,450 $34,800 $39,150 $43,$00 $47,000 $50,450 $53,950 $57,400 I I I J : 45%: $685.00 $734.00 $880.00 $1,018.00 $1,135.00: $27,405 $31,320 $35,235 $39,150 $42,300 $45,405 $48,555 $51,660 , I I 1 : 40%: $609.00 $652.00 $783.00 $905.00 $1,009.00: $24,360 $27,840 $31,320 $34,400 $37,600 $40,360 $43,160 $45,920 I I t J : 30%: $456.00 $489.00 $587.00 $678.00 $757.00 I $18,250 $20,900 $23,500 $26,,00 $28,200 $30,300 $32,350 $34,450 --------------I-----~---------------------------------____________________~____________________________________________~------------------------------------------_______________ 875330 I Page: 19 of 35 12 04/27/2004 03:53P 1 R 0.00 D 0.00 COLORADO DIVISION OF HOUSING 2 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR 2004 EXHIBIT B HUD Rl,'lease Date: January 28, 2004 MAXIMlJM RENTS INCOME LIMIT S; County: : 0 BDRM 1 BDRM 2 BDRM 3 BDRM 4 BDRM : 1 I'ERSON 2 PERSON 3 PERSON 4 PER~ON 5 PERSON 6 PERSON 7 PERSON 8 PEHSON ------------------- : --------: --------- ..----..------- ---------..- -..-.._--.._--- ...-----..--------: --.._----------- ------------ ..--------------- ---------~--_..._.. -------------- ---..-------...---- --------------- ---..----------..------ I I J ) : 120%: $1,086,00 $1,164.00 $1,395.00 $1,612.00 $1,800.00: $43,440 $49,680 $55,800 $62,040 $66,960 $72,000 $76,920 $81,840 I I I I : 100%: $905.00 $970,00 $1,162.00 $1,343.00 $1,500,00: $36,200 $41,400 $46,500 $51,~00 $55,800 $60,000 $64,100 $68,200 Cheyenne: 80%: $723.00 $775.00 $930.00 $1,075.00 $1,200.00: $28,950 $33,100 $37,200 $41,3,50 $44,650 $48,000 $51,300 $54,600 I J I t : 65%: $588.00 $630.00 $755.00 $873,00 $975.00: $23,530 $26,910 $30,225 $33,605 $36,270 $39,000 $41,665 $44,330 t t , \ : 60% i $543.00 $582,00 $697,00 $806.00 $900.00: $21,720 $24,840 $27,900 $31,020 $33,480 $36,000 $38,460 $40,920 I I I I : 55%: $497.00 $533.00 $639,00 $739.00 $825.00: $19,910 $22,770 $25,575 $28,135 $30,690 $33,000 $35,255 $37,510 I I t \ : 50%: $452.00 $485.00 $581.00 $671.00 $750.00: $18,100 $20,700 $23,250 $25,$50 $27,900 $30,000 $32,050 $34,100 I I I I : 45%: $407.00 $436.00 $523.00 $604.00 $675.00: $16,290 $18,630 $20,925 $23,265 $25,110 $27,000 $28,845 $30,690 I I I I : 40%: $362.00 $388,00 $465.00 $537.00 $600.00! $14,480 $16,560 $18,600 $20,q80 $22,320 $24,000 $25,640 $27,280 J I I I : 30% 1 $271.00 $290.00 $348.00 $403.00 $450.00: $10,850 $12,400 $13,950 $15,~00 $16,750 $18,000 $19,250 $20,450 -.-..---------,----~._------~----------------------------------------------,--------------------------------------------r-------------------------------------------------------~- ! 120%1 $1,362.00 $1,458,00 $1,749.00 $2,022.00 $2,256.00! $54,480 $62,160 $69,960 $77'160 $84,000 $90,240 $96,480 $102,600 : 100%: $1,135.00 $1,215,00 $1,457,00 $1,685.00 $1,880.00: $45,400 $51,800 $58,300 $64,800 $70,000 $75,200 $80,400 $85,500 I I I I Clear Creek: 80%! $907.00 $971.00 $1,166.00 $1,348.00 $1,503.00 l $36,300 $41,450 $46,650 $51,~50 $56,000 $60,150 $64,300 $68,450 : 65%: $737.00 $789.00 $947.00 $1,095.00 $1,222.00! $29,510 $33,670 $37,895 $42,~20 $45,500 $48,880 $52,260 $55,575 ! 60%! $681.00 $729.00 $874.00 $1,011.00 $1,128.00! $27,240 $31,080 $34,980 $38,~80 $42,000 $45,120 $48,240 $51,300 , t 1 1 : 55%: $624.00 $668.00 $801.00 $926.00 $1,034.00: $24,970 $28,490 $32,065 $35,640 $38,500 $41,360 $44,220 $47,025 I I I I : 50%: $567.00 $607.00 $728,00 $842.00 $940.00: $22,700 $25,900 $29,150 $32,400 $35,000 $37,600 $40,200 $42,750 I I . I ! 45%! $510.00 $546.00 $655.00 $758.00 $846.00: $20,430 $23,310 $26,235 $29,160 $31,500 $33,840 $36,180 $38,475 I I I I : 40%: $454.00 $486.00 $583,00 $674.00 $752.00: $18,160 $20,720 $23,320 $25,~20 $28,000 $30,080 $32,160 $34,200 I I I : : 30%: $340.00 $364,00 $437.00 $505.00 $563.00: $13,600 $15,550 $17,500 $19,450 $21,000 $22,550 $24,100 $25,650 .--.--.--.----!ii-o-~:r$i~-6i.oo---$i:5~i.oo---$i:887~-O--$2~i8i.oo---$i:433~-ol---$58,68(i-----$67~080-----$7-s:480------$83:880-----~~~O,600------$97:3-2()-----$i04~40-----~;iio,76-0--- l.' I I : 100%: $1,222.00 $1,310.00 $1,572.00 $1,817.00 $2,027.00: $48,900 $55,900 $62,900 $69,900 $75,500 $81,100 $86,700 $92,300 I I I l Denver 180% 1 $978.00 $1,048.00 $1,258.00 $1,453.00 $1,621.00 1 $39,150 $44,750 $50,350 $55,~00 $60,400 $64,850 $69,350 $73,800 : 65%: $794.00 $851.00 $1,022.00 $1,181.00 $1,317,00: $31,785 $36,335 $40,885 $45,435 $49,075 $52,715 $56,355 $59,995 . . i . : 60%: $733.00 $786.00 $943.00 $1,090.00 $1,216.00: $29,340 $33,540 $37,740 $41,~40 $45,300 $48,660 $52,020 $55,380 I , I I : 55%: $672.00 $720.00 $864.00 $999.00 $1,115.00: $26,895 $30,745 $34,595 $38,145 $41,525 $44,605 $47,685 $50,765 I I . I ! 50%! $611.00 $655.00 $786.00 $908.00 $1,013.00! $24,450 $27,950 $31,450 $34,~50 $37,750 $40,550 $43,350 $46,150 ! 45%! $550.00 $589.00 $707.00 $817.00 $912.00! $22,005 $25,155 $28,305 $31,455 $33,975 $36,495 $39,015 $41,535 I I I I : 40%: $489.00 $524,00 $629.00 $727.00 $811.00: $19,560 $22,360 $25,160 $27,~60 $30,200 $32,440 $34,680 $36,920 ! 30%: $367.00 $393.00 $471.00 $545.00 $608.00 i $14,700 $16,800 $18,850 $20,~50 $22,650 $24,350 $26,000 $27,700 ~-------------I-----~---------------------------------____________________~______________________________________________________________________________________________________ 875330 Page: 20 of 35 04/27/2004 03:53P I R 0,00 0 0.00 COLORADO DIVISION OF HOUSING 3 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR 2004 EXHIBIT B lIUn R~lease Date: January 28, 2004 MAXIMUM RENTS INCOME LIMIT Sf County! i 0 BDRM 1 nDRM 2 BDRM 3 BDRM 4 BDRM : 1 Pl.<:RSON 2 PERSON 3 PERSON 4 PERf ON 5 PERSON 6 PERSON 7PERSON 8 PERSON ----------..-..----- : .....-----..: -------.. --------..----.... ..-..----..-..-..- --.................-...- ...-..-------..----: ..-..-..-..----....-- ..-...-..-..-......----- ----..--...-------- ....-..--1.......... -------------..-..- ----..-......---... ----------..-..- ---------.....---- : 120%: $1,467.00 $1,572.00 $1,887.00 $2,181.00 $2,433,00 i $58,680 $67,080 $75,480 $83,~80 $90,600 $97,320 $104,040 $110,760 I I I i : 100%: $1,222.00 $1,310.00 $1,572.00 $1,817.00 $2,027.00: $48,900 $55,900 $62,900 $69,~00 $75,500 $81,100 $86,700 $92,300 I I I ' Donglas: 80%: $978,00 $1,048,00 $1,258,00 $1,453,00 $1,621.00: $39,150 $44,750 $50,350 $55,900 $60,400 $64,850 $69,350 $73,800 J . I ! :65%: $794.00 $851.00 $1,022.00 $1,181.00 $1,317.00! $31,785 $36,335 $40,885 $45,135 $49,075 $52,715 $56,355 $59,995 ! 60%! $733.00 $786.00 $943.00 $1,090.00 $1,216.00! $29,340 $33,540 $37,740 $41,~40 $45,300 $48,660 $52,020 $55,380 ! 55%! $672.00 $720,00 $864.00 $999.00 $1,115.00! $26,895 $30,745 $34,595 $38,445 $41,525 $44,605 $47,685 $50,765 I I I ! : 50%: $611.00 $655.00 $786.00 $908.00 $1,013.00: $24,450 $27,950 $31,450 $34,~50 $37,750 $40,550 $43,350 $46,150 t I I 1 : 45%: $550.00 $589.00 $707.00 $817.00 $912.00: $22,005 $25,155 $28,305 $31,'f55 $33,975 $36,495 $39,015 $41,535 I I I ! ! 40%! $489.00 $524,00 $629.00 $727.00 $811.00! $19,560 $22,360 $25,160 $27,~60 $30,200 $32,440 $34,680 $36,920 I I I I : 30%: $367.00 $393.00 $471.00 $545.00 $608.00: $14,700 $16,800 $18,850 $20,,-/50 $22,650 $24,350 $26,000 $27,700 --------------,-~---ii----------------~------------------------------------,--------------------------------------------i--------------------------------------------------------- : 120%: $1,611.00 $1,726.00 $2,070.00 $2,392.00 $2,670.00: $64,440 $73,680 $82,800 $92,040 $99,360 $106,800 $114,120 $121,440 I I J I : 100%: $1,342.00 $1,438.00 $1,725.00 $1,993.00 $2,225.00: $53,700 $61,400 $69,000 $76,7100 $82,800 $89,000 $95,100 $101,200 I , , Eagle: 80% : $1,006.00 $1,078.00 $1,293.00 $1,495.00 $1,667.00: $40,250 $46,000 $51,750 $57,500 $62,100 $66,700 $71,300 $75,900 : : : ) , : 65%: $872.00 $935,00 $1,121.00 $1,295.00 $1,446.00: $34,905 $39,910 $44,850 $49,855 $53,820 $57,850 $61,815 $65,780 I I t j : 60%: $805.00 $863.00 $1,035.00 $1,196.00 $1,335.00: $32,220 $36,840 $41,400 $46,Q20 $49,680 $53,400 $57,060 $60,720 I I , ! 55%: $738.00 $791.00 $948.00 $1,096.00 $1,223.00 l $29,535 $33,770 $37,950 $42,~85 $45,540 $48,950 $52,305 $55,660 : 50%: $671.00 $719.00 $862.00 $996.00 $1,112.00: $26,850 $30,700 $34,500 $38,350 $41,400 $44,500 $47,550 $50,600 I t I I ! 45%: $604.00 $647.00 $776.00 $897.00 $1,001.00! $24,165 $27,630 $31,050 $34,$15 $37,260 $40,050 $42,795 $45,540 I I I: : 40%: $537.00 $575.00 $690.00 $797.00 $890.00: $21,480 $24,560 $27,600 $30,680 $33,120 $35,600 $38,040 $40,480 . . . I : 30%: $402.00 $431.00 $517.00 $598.00 $667.00: $16,100 $18,400 $20,700 $23,QOO $24,850 $26,700 $28,550 $30,350 -...----.-----i------~-----------------------------.------------------------i------------------------------------------------------------.-------------.--------------------------- ! 120%: $1,305.00 $1,398.00 $1,677.00 $1,938.00 $2,160.00! $52,200 $59,640 $67,080 $74,~20 $80,520 $86,400 $92,400 $98,400 ! 100%: $1,087.00 $1,165.00 $1,397.00 $1,615.00 $1,800.00! $43,500 $49,700 $55,900 $62,~00 $67,100 $72,000 $77,000 $82,000 t I I , El Paso: 80%: $870.00 $931.00 $1,117.00 $1,291.00 $1,441.00 I $34,800 $39,750 $44,700 $49,700 $53,650 $57,650 $61,600 $65,600 , I I I : 65%: $706.00 $757.00 $908.00 $1,049.00 $1,170.00: $28,275 $32,305 $36,335 $40,365 $43,615 $46,800 $50,050 $53,300 f I f I : 60%: $652.00 $699.00 $838.00 $969.00 $1,080.00: $26,100 $29,820 $33,540 $37,260 $40,260 $43,200 $46,200 $49,200 f I I I : 55%: $598.00 $640.00 $768.00 $888.00 $990.00: $23,925 $27,335 $30,745 $34,t55 $36,905 $39,600 $42,350 $45,100 I I I I ! 50%! $543.00 $582.00 $698.00 $807.00 $900,OO! $21,750 $24,850 $27,950 $31,q50 $33,550 $36,000 $38,500 $41,000 I t I i : 45%: $489.00 $524.00 $628.00 $726.00 $810.00: $19,575 $22,365 $25,155 $27,945 $30,195 $32,400 $34,650 $36,900 I I 11 I 40%: $435.00 $466.00 $559.00 $646.00 $720.00: $17,400 $19,880 $22,360 $24,1l40 $26,840 $28,800 $30,800 $32,800 I , t l I 30%: $326.00 $349,00 $418.00 $484.00 $540.00: $13,050 $14,900 $16,750 $18,1150 $20,100 $21,600 $23,100 $24,600 --------------.-----~-----------------------------------------------------~--------------------------------------------~--------------------------------------------------------- 875330 age: 21 of 35 I 04/27/2004 03:53P Teak J Simonton Eagle, CO 121 R 0,00 0 0.00 COLORADO DIVISION OF HOUSING 4 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR 2004 EXHIBIT B HUD R~lease Date: Janual'Y 28, 2004 MAXIMUM RENTS INCOME LIMIT S County! ! 0 BDRM 1 BDRM 2 BDRM 3 BDRM 4 BDRM : 1 PERSON 2 PERSON 3 }'ERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8}'ERSON \ \ . _________..___..._..._~ 1------.., ..______..._..___ ___..._..____..._.._... ______...___.._.._ __...._....______ ..-..--------...1...--_......--------- _____________.._.._ _.._..._______ _______..._'!"__....__ --------.........--- ..------------.. ----------------- -...-------...--------- I I . 11200/01 $1,746.00 $1,870.00 $2,244.00 $2,592.00 $2,892.00 1 $69,840 $79,800 $89,760 $99,720 $107,640 $115,680 $123,600 $131,640 . . . POO%l $1,455.00 $1,558.00 $1,870.00 $2,160.00 $2,410.00! $58,200 $66,500$74,800 $83,~00 $89,700 $96,400 $103,000 $109,700 Elbert: 80% : $1,006.00 $1,078.00 $1,293.00 $1,495.00 $1,667.00: $40,250 $46,000 $51,750 $57,500 $62,100 $66,700 $71,300 $75,900 : 65%: $945.00 $1,013.00 $1,215.00 $1,404.00 $1,566.00: $37,830 $43,225 $48,620 $54,QI5 $58,305 $62,660 $66,950 $71,305 : 60%: $873.00 $935.00 $1,122.00 $1,296.00 $1,446.00! $34,920 $39,900 $44,880 $49,860 $53,820 $57,840 $61,800 $65,820 I . . I 55% I $800.00 $857.00 $1,028.00 $1,188.00 $1,325.00 I $32,010 $36,575 $41,140 $45,~05 $49,335 $53,020 $56,650 $60,335 I I I : 50%: $727.00 $779.00 $935.00 $1,080.00 $1,205.00 I $29,100 $33,250 $37,400 $41,550 $44,850 $48,200 $51,500 $54,850 I . . : 45%: $654.00 $701.00 $841.00 $972.00 $1,084.00: $26,190 $29,925 $33,660 $37,:395 $40,365 $43,380 $46,350 $49,365 I I I ! 40%! $582.00 $623.00 $748.00 $864.00 $964.00! $23,280 $26,600 $29,920 $33,~40 $35,880 $38,560 $41,200 $43,880 ! 30%! $436.00 $467.00 $561.00 $648.00 $722.00: $17,450 $19,950 $22,450 $24,~50 $26,900 $28,900 $30,900 $32,900 ~---_._-----...-i-----~-----------------------------------------------------,--------------------------------------------r--------------------------------------------------------- ! 120%: $1,272.00 $1,363.00 $1,635.00 $1,890.00 $2,109.00 1 $50,880 $58,200 $65,400 $72,120 $78,480 $84,360 $90,120 $96,000 : 100%: $1,060.00 $1,136.00 $1,362.00 $1,575.00 $1,757.00: $42,400 $48,500 $54,500 $60,600 $65,400 $70,300 $75,100 $80,000 I I , J ' I. . , Garfield. 80% I $848.00 $909.00 $1,091.00 $1,260.00 $1,406.00 I $33,950 $38,800 $43,650 $48,00 $52,350 $56,250 $60,100 $64,000 I : I I . I 65% I $689.00 $738.00 $885.00 $1,023.00 $1,142.00: $27,560 $31,525 $35,425 $39,~90 $42,510 $45,695 $48,815 $52,000 I I I .J : 60%: $636.00 $681.00 $817.00 $.945.00 $1,054.00: $25,440 $29,100 $32,700 $36,,,60 $39,240 $42,180 $45,060 $48,000 I I I I ! 55%! $583.00 $624.00 $749.00 $866.00 $966.00! $23,320 $26,675 $29,975 $33,~30 $35,970 $38,665 $41,305 $44,000 I : 50%: $530.00 $568.00 $681.00 $787.00 $878.00: $21,200 $24,250 $27,250 $30,300 $32,700 $35,150 $37,550 $40,000 . t I I : 45%! $477.00 $511.00 $613.00 $708.00 $790.00! $19,080 $21,825 $24,525 $27,:Z70 $29,430 $31,635 $33,795 $36,000 I I I _ ! : 40'%: $424.00 $454.00 $545.00 $630.00 $703.00: $16,960 $19,400 $21,800 $24,240 $26,160 $28,120 $30,040 $32,000 . . . I : 30%: $318.00 $341.00 $408.00 $473.00 $527.00; $12,750 $14,550 $16,350 $18,400 $19,650 $21,100 $22,550 $24,000 -----.--------l------~----------------.-------------------------------------.----------------------------------------------------------------------------------.------------------- : 120oio! $1,716.00 $1,839.00 $2,205.00 $2,548.00 $2,844.00! $68,640 $78,480 $88,200 $98,Q40 $105,840 $113,760 $121,560 $129,360 :100%: $1,430.00 $1,532.00 $1,837.00 $2,123.00 $2,370.00: $57,200 $65,400 $73,500 $81,71'00 $88,200 $94,800 $101,300 $107,800 I I. J Gilpin: 80% : $1,006.00 $1,078.00 $1,293.00 $1,495.00 $1,667.00: $40,250 $46,000 $51,750 $57,~00 $62,100 $66,700 $71,300 $75,900 I I I I : 65%: $929.00 $996.00 $1,194.00 $1,380.00 $1,540.00 I $37,180 $42,510 $47,775 $53,~05 $57,330 $61,620 $65,845 $70,070 . . I , ! 60%! $858.00 $919.00 $1,102.00 $1,274.00 $1,422.00! $34,320 $39,240 $44,100 $49,Q20 $52,920 $56,880 $60,780 $64,680 : 55%: $786.00 $842.00 $1,010.00 $1,168.00 $1,303.00: $31,460 $35,970 $40,425 $44,935 $48,510 $52,140 $55,715 $59,290 . . . I ! 50%! $715.00 $766.00 $918.00 $1,061.00 $1,185.00! $28,600 $32,700 $36,750 $40,~50 $44,100 $47,400 $50,650 $53,900 . , ., j : 45%: $643.00 $689.00 $826.00 $955.00 $1,066.00 I $25,740 $29,430 $33,075 $36,,\65 $39,690 $42,660 $45,585 $48,510 I I . \ I 40% I $572.00 $613.00 $735.00 $849.00 $948.00 I $22,880 $26,160 $29,400 $32,~80 $35,280 $37,920 $40,520 $43,120 ~ 30%: $428.00 $459.00 $551.00 $636.00 $711.00 ~ $17,150 $19,600 $22,050 $24,~00 $26,450 $28,450 $30,400 $32,350 .---------.---------~------.-------------------------------------------------------------------------------------------i--------------------------------------------------------- 875330 iN Page: 22 of 35 . .' 04/27/2004 03: 53P R 0.00 0 0.00 Teak J COLORADO DIVISION OF HOUSING 5 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR 2004 EXnIBIT B nun Release Date: January 28,2004 MAXIMUM RENTS INCOME LIMIT S Couuty: i 0 BORM 1 BORM 2 BORM 3 BDRM 4 BDRM : 1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON ____...____________ ~..______:___________..._ ------...--------.. ---........------.. --------------- ...-------------:--------------- --..-..---------...-- -----..-----........ -..-..-----1...---- -------------- ------------ ---------------- ------------..--- I I . ! 120%: $1,314.00 $1,408.00 $1,689.00 $1,953.00 $2,178.00: $52,560 $60,120 $67,560 $75,E20 $81,120 $87,120 $93,120 $99,120 I I I 1100%1 $1,095.00 $1,173.00 $1,407.00 $1,627.00 $1,815.00 I $43,800 $50,100 $56,300 $62,<100 $67,600 $72,600 $77,600 $82,600 Grand: 80%! $876.00 $938.00 $1,126.00 $1,302.00 $1,452.00: $35,050 $40,050 $45,050 $50,~00 $54,100 $58,100 $62,100 $66,100 I I I ! 65%! $711.00 $762.00 $914.00 $1,057.00 $1,179.00! $28,470 $32,565 $36,595 $40,690 $43,940 $47,190 $50,440 $53,690 ! 60%! $657.00 $704.00 $844.00 $976.00 $1,089.00! $26,280 $30,060 $33,780 $37,560 $40,560 $43,560 $46,560 $49,560 I I I I 55%: $602.00 $645.00 $774.00 $895.00 $998.00 I $24,090 $27,555 $30,965 $34,430 $37,180 $39,930 $42,680 $45,430 I I I : 50%: $547.00 $586.00 $703.00 $813.00 $907.00: $21,900 $25,050 $28,150 $31,300 $33,800 $36,300 $38,800 $41,300 I I I ! 45%! $492.00 $528.00 $633.00 $732.00 $816.00! $19,710 $22,545 $25,335 $28,~70 $30,420 $32,670 $34,920 $37,170 ! 40% I $438.00 $469.00 $563.00 $651.00 $726.00 i $17,520 $20,040 $22,520 $25,q40 $27,040 $29,040 $31,040 $33,040 : 30%: $328.00 $351.00 $422.00 $488.00 $545.00: $13,150 $15,000 $16,900 $18,~00 $20,300 $21,800 $23,300 $24,800 ..-------------.------c..-----------------------------------------------------,--------------------------------------------~-------------...-..----~~-.----.-~-..-----.-~-..--.-.--~-..- : 120%: $1,230.00 $1,318.00 $1,581.00 $1,828.00 $2,040.00: $49,200 $56,280 $63,240 $70,~20 $75,960 $81,600 $87,240 $92,880 I t I I i 100%! $1,025.00 $1,098.00 $1,317.00 $1,523.00 $1,700.00! $41,000 $46,900 $52,700 $58,~00 $63,300 $68,000 $72,700 $77,400 Gunnison: 80% I $820.00 $878.00 $1,055.00 $1,219.00 $1,360.00: $32,800 $37,500 $42,200 $46,900 $50,650 $54,400 $58,150 $61,900 I t I , ! 65%! $666.00 $714.00 $856.00 $990.00 $1,105.00! $26,650 $30,485 $34,255 $38,Q90 $41,145 $44,200 $47,255 $50,310 ! 60%! $615.00 $659.00 $790.00 $914.00 $1,020.00! $24,600 $28,140 $31,620 $35,Mo $37,980 $40,800 $43,620 $46,440 I I I j : 55%: $563.00 $604.00 $724.00 $838.00 $935.00: $22,550 $25,795 $28,985 $32,230 $34,815 $37,400 $39,985 $42,570 ! 50'Yo I $512.00 $549.00 $658.00 $761.00 $850.00 I $20,500 $23,450 $26,350 $29,~OO $31,650 $34,000 $36,350 $38,700 ! 45%! $461.00 $494.00 $592.00 $685.00 $765.00! $18,450 $21,105 $23,715 $26,~70 $28,485 $30,600 $32,715 $34,830 I I I ! 40%! $410.00 $439.00 $527.00 $609.00 $680.00! $16,400 $18,760 $21,Q80 $23,140 $25,320 $27,200 $29,080 $30,960 : 30%: $307.00 $329.00 $395.00 $457.00 $510.00: $12,300 $14,050 $15,800 $17,600 $19,000 $20,400 $21,800 $23,200 ._------------~-----~.....................................................~....................-......._....-.-..-.....,................-....-....................""""""-" !I20%! $1,467.00 $1,572.00 $1,887.00 $2,181.00 $2,433.00! $58,680 $67,080 $75,480 $83,~80 $90,600 $97,320 $104,040 $110,760 : 100%: $1,222.00 $1,310.00 $1,572.00 $1,817.00 $2,027.00: $48,900 $55,900 $62,900 $69,900 $75,500 $81,100 $86,700 $92,300 I I I f Jefferson: 80%! $978.00 $1,048.00 $1,258.00 $1,453.00 $1,621.00! $39,150 $44,750 $50,350 $55,~00 $60,400 $64,850 $69,350 $73,800 I I I ) : 65%: $794.00 $851.00 $1,022.00 $1,181.00 $1,317.00: $31,785 $36,335 $40,885 $45,435 $49,075 $52,715 $56,355 $59,995 . I I I : 60%: $733.00 $786.00 $943.00 $1,090.00 $1,216.00 I $29,340 $33,540 $37,740 $4d40 $45,300 $48,660 $52,020 $55,380 I . I . i : 55%: $672.00 $720.00 $864.00 $999.00 $1,115.00: $26,895 $30,745 $34,595 $38,445 $41,525 $44,605 $47,685 $50,765 1 I I I ! 50%! $611.00 $655.00 $786.00 $908.00 $1,013.00! $24,450 $27,950 $31,450 $34,~50 $37,750 $40,550 $43,350 $46,150 I I I I : 45% I $550.00 $589.00 $707.00 $817.00 $912.00: $22,005 $25,155 $28,305 $31,455 $33,975 $36,495 $39,015 $41,535 I I I i I 40%: $489.00 $524.00 $629.00 $727.00 $811.00: $19,560 $22,360 $25,160 $27,960 $30,200 $32,440 $34,680 $36,920 I I I ) : 30%: $367.00 $393.00 $471.00 $545.00 $608.00: $14,700 $16,800 $18,850 $20,~50 $22,650 $24,350 $26,000 $27,700 ---._--_._----~-----~-----------------------------------------------------~--------------------------------------------+--------------------------------------------------------- ImmtC875330 1\1011" "."R000 ::~;;~~~0~:0;\3P Teak J Simonton Eagle, CO 1 COLORADO DIVISION OF HOUSING 6 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR2004 EXHIBIT B HUD Release Date: January 28, 2004 MAXIMUM RENTS INCOME LIMIT S County: : 0 BDRM 1 BDRM 2 BDRM 3 BDRM 4 BDRM : 1 I'ERSON 2 PERSON 3 PERSON 4 PER$ON 5 PERSON 6I'ERSON 7 !'ERSON 8 PERSON I I . ' _____....___..____..__ 1-------1------------- ___________.._ ____________ ______..____...... ______.;.___ 1_______________ ...___.._.._________ __...____..__..____ _________.,.______ ______________ __...._..__________ ___..____..__.._....___ _...__..______________ I I . : 120%: $1,086.00 $1,164.00 $1,395.00 $1,612.00 $1,800.00: $43,440 $49,680 $55,800 $62,040 $66,960 $72,000 $76,920 $81,840 I , I : 100%: $905.00 $970.00 $.1,]62.00 $],343.00 $],500.00: $36,200 $4],400 $46,500 $51,~00 $55,800 $60,000 $64,]00 $68,200 I . I t Kiowa: 80%: $723.00 $775.00 $930.00 $1,075.00 $],200.00: $28,950 $33,100 $37,200 $4],~50 $44,650 $48,000 $51,300 $54,600 : 65%: $588.00 $630.00 $755.00 $873.00 $975.00 1 $23,530 $26,910 $30,225 $33,~05 $36,270 $39,000 $4],665 $44,330 I I I ! 60%! $543.00 $582.00 $697.00 $806.00 $900.00! $21,720 $24,840 $27,900 $3],<\20 $33,480 $36,000 $38,460 $40,920 I I I : 55%: $497.00 $533.00 $639.00 $739.00 $825.00: $]9,9]0 $22,770 $25,575 $28,435 $30,690 $33,000 $35,255 $37,510 I I I ! 50%! $452.00 $485.00 $581.00 $671.00 $750.00! $18,100 $20,700 $23,250 $25,850 $27,900 $30,000 $32,050 $34,100 : 45%: $407.00 $436.00 $523.00 $604.00 $675.00: $16,290 $]8,630 $20,925 $23,~65 $25,110 $27,000 $28,845 $30,690 I I I , _ : 40%: $362.00 $388.00 $465.00 $537.00 $600.00: $]4,480 $]6,560 $18,600 $20,680 $22,320 $24,000 $25,640 $27,280 I I I . , I I . . i : 30%: $271.00 $290.00 $348.00 $403.00 $450.00: $]0,850 $12,400 $13,950 $]5,~00 $]6,750 $18,000 $19,250 $20,450 _________w____I_____~-----------------------------------------------------,----------------------------------__________~------------------------------------------_______________ : 120%: $1,]91.00 $1,276.00 $],530.00 $1,768.00 $1,974.00: $47,640 $54,480 $61,200 $68,040 $73,440 $78,960 $84,360 $89,760 I I I < ! 1000;'.: $992.00 $1,063.00 $1,275.00 $1,473.00 $1,645.00! $39,700 $45,400 $51,000 $56,~00 $6],200 $65,800 $70,300 $74,800 , I I : La Plata: 80%: $793.00 $850.00 $1,020.00 $1,179.00 $1,315.00: $31,750 $36,300 $40,800 $45,~50 $49,000 $52,600 $56,250 $59,900 I I t \ : 65%: $645.00 $691.00 $828.00 $957.00 $1,069.00: $25,805 $29,510 $33,150 $36,855 $39,780 $42,770 $45,695 $48,620 I I I : 60%: $595.00 $638.00 $765.00 $884.00 $987.00: $23,820 $27,240 $30,600 $34,Q20 $36,720 $39,480 $42,180 $44,880 I I I ' ! 55%: $545.00 $585.00 $701.00 $810.00 $904.00! $21,835 $24,970 $28,050 $31,1185 $33,660 $36,190 $38,665 $41,140 ! 50%! $496.00 $531.00 $637.00 $736.00 $822.00! $]9,850 $22,700 $25,500 $28,~50 $30,600 $32,900 $35,150 $37,400 I I I : 45%: $446.00 $478.00 $573.00 $663.00 $740.00: $]7,865 $20,430 $22,950 $25,5]5 $27,540 $29,610 $31,635 $33,660 : 40%! $397.00 $425.00 $510.00 $589.00 $658.00! $]5,880 $]8,]60 $20,400 $22,680 $24,480 $26,320 $28,120 $29,920 . . .' , : 30%: $297.00 $318.00 $382.00 $441.00 $493.00: $11,900 $13,600 $15,300 $17,~00 $18,350 $19,750 $2],]00 $22,450 ,_____________4________~~~___~___~_M~______________~_~__~__________.________.___~~_______________~__________.__~________~_'___.___________._____~____~_________~____~________~__~_~~ : 120%: $1,398.00 $1,497.00 $1,797.00 $2,074.00 $2,313.00! $55,920 $63,840 $71,880 $79,800 $86,160 $92,520 $99,000 $105,360 . " I i : 100%: $1,165.00 $1,247.00 $1,497.00 $1,728.00 $1,927.00: $46,600 $53,200 $59,900 $66,~00 $71,800 $77,100 $82,500 $87,800 I I I ' Lar-imerl 80%: $931.00 $997.00 $1,197.00 $],383.00 $1,542.00: $37,250 $42,550 $47,900 $53,~00 $57,450 $61,700 $65,950 $70,200 I I I : 65%: $757.00 $810.00 $973.00 $],123.00 $1,252.00: $30,290 $34,580 $38,935 $43,225 $46,670 $50,115 $53,625 $57,070 I I , I : 60%! $699.00 $748.00 $898.00 $1,037.00 $],156.00! $27,960 $31,920 $35,940 $39,~00 $43,080 $46,260 $49,500 $52,680 I I . J : 55% I $640.00 $686.00 $823.00 $950.00 $1,060.00: $25,630 $29,260 $32,945 $36,575 $39,490 $42,405 $45,375 $48,290 I I I I : 50%: $582.00 $623.00 $748.00 $864.00 $963.00: $23,300 $26,600 $29,950 $33,~50 $35,900 $38,550 $41,250 $43,900 I I . J : 45%: $524.00 $561.00 $673.00 $777.00 $867.00: $20,970 $23,940 $26,955 $29,~25 $32,310 $34,695 $37,125 $39,510 I I . I : 40%: $466.00 $499.00 $599.00 $691.00 $771.00: $18,640 $21,280 $23,960 $26,6,00 $28,720 $30,840 $33,000 $35,120 : 30%: $348.00 $373.00 $448.00 $5]8.00 $578.00: $13,950 $15,950 $17,950 $19,~50 $21,550 $23,150 $24,750 $26,350 ---------~---------~-----------------------------------------------------~--------------------------------------------i--------------------------------------------------------- ~4tu~."m~lli~.um~ ~~~;~~ 35 i \\11\\\ .\1111111\1111111111111111111111111111111111111. 04/27/2004 03:53P Teak J Simonton Eagle, CO 121 R 0.00 0 0.00 COLORADO DIVISION OF HOUSING 7 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR 2004 EXIIlBIT B HUD R*lease Date: January 28, 2004 MAXIMIJM RENTS INCOME LIMITS: County i : 0 Bi:>RM 1 BDRM 2 BDRM 3 BDRM 4 BDRM : 1 PERSON 2 PERSON 3 PERSON 4 PER$ON 5 PERSON 6 PERSON 7 PERSON 8 PERSON I I I I ------------------- i --------i -..-...-...-...--..-.. --...---------- ------------..- -...--...----..-..-.. ---..---------; ------------..-...- -..---------- ..---..------------ ---------1--..... ---.......----..----- --------...----- -..--------- ------------------- : 120%: $1,086.00 $1,164.00 $1,395.00 $1,612.00 $1,800.00: $43,440 $49,680 $55,800 $62,Q40 $66,960 $72,000 $76,920 $81,840 I I I ] 1100%: $905.00 $970.00 $1,162.00 $1,343.00 $1,500.00: $36,200 $41,400 $46,500 $sqoo $55,800 $60,000 $64,100 $68,200 I I I I Mesa: 80%: $723.00 $775.00 $930.00 $1,075.00 $1,200.00: $28,950 $33,100 $37,200 $4]'i50 $44,650 $48,000 $5],300 $54,600 ! 65%! $588.00 $630.00 $755.00 $873.00 $975.00! $23,530 $26,910 $30,225 $33,605 $36,270 $39,000 $41,665 $44,330 I I I I : 60%! $543.00 $582.00 $697.00 $806.00 $900.00! $21,720 $24,840 $27,900 $31,Q20 $33,480 $36,000 $38,460 $40,920 , , I \ : 55%: $497.00 $533.00 $639.00 $739.00 $825.00: $19,9]0 $22,770 $25,575 $28,435 $30,690 $33,000 $35,255 $37,510 , , ) I : 50%: $452.00 $485.00 $581.00 $671.00 $750.00: $18,100 $20,700 $23,250 $25,~50 $27,900 $30,000 $32,050 $34,100 , I I ; : 45%: $407.00 $436.00 $523.00 $604.00 $675.00: $16,290 $18,630 $20,925 $23'165 $25,110 $27,000 $28,845 $30,690 140% 1 $362.00 $388.00 $465.00 $537.00 $600.00 1 $14,480 $16,560 $]8,600 $20,680 $22,320 $24,000 $25,640 $27,280 I ! 30%! $271.00 $290.00 $348.00 $403.00 $450.00 I $10,850 $12,400 $13,950 $15,500 $16,750 $18,000 $19,250 $20,450 .._------------,-----,------------------------------------------------------,-------------------------------~------------t--------------------------------------------------------- : 120%: $1,086.00 $1,164.00 $1,395.00 $1,612.00 $1,800.00: $43,440 $49,680 $55,800 $62,q40 $66,960 $72,000 $76,920 $81,840 J I t I ! 100%: $905.00 $970.00 $1,162.00 $1,343.00 $1,500.00! $36,200 $41,400 $46,500 $51,j00 $55,800 $60,000 $64,100 $68,200 Moffad 80%: $723.00 $775.00 $930.00 $1,075.00 $1,200.00: $28,950 $33,100 $37,200 $41,350 $44,650 $48,000 $51,300 :j;54,600 I I I 1 : 65%! $588.00 $630.00 $755.00 $873.00 $975.00: $23,530 $26,910 $30,225 $33,05 $36,270 $39,000 $41,665 $44,330 I I I : 60% I $543.00 $582.00 $697.00 $806.00 $900.00: $2],720 $24,840 $27,900 $31,020 $33,480 $36,000 $38,460 $40,920 I , I I : 55%: $497.00 $533.00 $639.00 $739.00 $825.00: $19,910 $22,770 $25,575 $28,435 $30,690 $33,000 $35,255 $37,510 I , I' I : 50% I $452.00 $485.00 $581.00 $671.00 $750.00: $18,100 $20,700 $23,250 $25,850 $27,900 $30,000 $32,050 $34,100 I I I I : 45%! $407.00 $436.00 $523.00 $604.00 $675.00 I $16,290 $18,630 $20,925 $23,265 $25,110 $27,000 $28,845 $30,690 1 i I i : 40%: $362.00 $388.00 $465.00 $537.00 $600.00: $14,480 $16,560 $18,600 $20,680 $22,320 $24,000 $25,640 $27,280 . . . I ; 30%: $271.00 $290.00 $348.00 $403.00 $450.00; $10,850 $12,400 $13,950 $15,~00 $16,750 $18,000 $19,250 $20,450 ~~~-~-~~*-----,------~----------------------------------------~-~-------~---I--------------------------------------------i---*-------*--------~------------------------------------ 1120%: $1,086.00 $],164.00 $1,395.00 $1,612.00 $1,800.00: $43,440 $49,680 $55,800 $62,040 $66,960 $72,000 $76,920 $81,840 I I I I :]00%1 $905.00 $970.00 $1,162.00 $],343.00 $1,500.00: $36,200 $4],400 $46,500 $51,\00 $55,800 $60,000 $64,100 $68,200 : : : \ Morgan: 80% I $723,00 $775.00 $930,00 $1,075.00 $1,200.00: $28,950 $33,100 $37,200 $4Q50 $44,650 $48,000 $51,300 $54,600 I I I . \ : 65%: $588.00 $630.00 $755.00 $873.00 $975.00: $23,530 $26,9]0 $30,225 $33,~05 $36,270 $39,000 $41,665 $44,330 t . 1 ) : 60% I $543.00 $582.00 $697.00 $806.00 $900.00: $21,720 $24,840 $27,900 $31,020 $33,480 $36,000 $38,460 $40,920 I t I 1 : 55%: $497.00 $533.00 $639.00 $739.00 $825.00 I $19,910 $22,770 $25,575 $28,435 $30,690 $33,000 $35,255 $37,510 1 1 I l : 50%! $452.00 $485.00 $581.00 $671.00 $750.00! $18,100 $20,700 $23,250 $25,850 $27,900 $30,000 $32,050 $34,100 1 It! : 45%: $407.00 $436.00 $523.00 $604.00 $675.00: $16,290 $18,630 $20,925 $23,265 $25,110 $27,000 $28,845 $30,690 I I. I. I ! 40%! $362.00 $388.00 $465.00 $537.00 $600.00! $14,480 $16,560 $]8,600 $20,~80 $22,320 $24,000 $25,640 $27,280 : 30%: $271.00 $290.00 $348.00 $403.00 $450.00: $10,850 $12,400 $13,950 $15,~00 $16,750 $18,000 $19,250 $20,450 ______________f______~_______________________________________________*______.______________~______________~______________~----------------------------------------_________________ HI~lti~HHmi 875330 Page: 25 of 35-. ..' ... .. 04/27/2004 03: 53P Teak J Simonton Eagle, CO 121 R 0.00 0 0.00 COLORADO DIVISION OF HOUSING 8 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR 2004 EXHIBIT B HUD R~lease Date: January 28, 2004 MAXIMUM RENTS INCOME LIMITS! County i i 0 BDRM 1 BDRM 2 BDRM 3 BDRM 4 BDRM : 1 PERSON 2 PERSON 3 PERSON 4 PER~ON 5 PERSON 6 PERSON 7 PERSON 8 PERSON ..----------------- i ..------: -_.._-...------- --------------...- -----..------ ..._--------..- --...---------..--: --------------- ----...-..---------- -------..------ ---------r------ -..---------..-...--.. ..----------- ----....--------- ------------------ : 120%: $1,221.00 $1,309.00 $1,572.00 $1,816.00 $2,025.00: $48,840 $55,920 $62,880 $69,~40 $75,480 $81,000 $86,640 $92,160 i i i I : 100%: $1,017.00 $1,091.00 $1,310.00 $1,513.00 $1,687.00: $40,700 $46,600 $52,400 $58,200 $62,900 $67,500 $72,200 $76,800 , I t 1 Ourav: 80%: $815.00 $873.00 $1,047.00 $1,210.00 $1,350.00: $32,600 $37,250 $41,900 $46,550 $50,300 $54,000 $57,750 $61,450 J I I , i ! 65'10! $661.00 $709.00 $851.00 $983.00 $1,096.00! $26,455 $30,290 $34,060 $37,~30 $40,885 $43,875 $46,930 $49,920 ! 60%! $610.00 $654.00 $786.00 $908.00 $1,012.00! $24,420 $27,960 $31,440 $34,920 $37,740 $40,500 $43,320 $46,080 I l I I : 55%: $559.00 $600.00 $720.00 $832.00 $928.00: $22,385 $25,630 $28,820 $32,010 $34,595 $37,125 $39,710 $42,240 :50%! $508.00 $545.00 $655.00 $756.00 $843.00: $20,350 $23,300 $26,200 $29)00 $31,450 $33,750 $36,100 $38,400 I I I i : 45%: $457.00 $491.00 $589.00 $681.00 $759.00: $18,315 $20,970 $23,580 $26,190 $28,305 $30,375 $32,490 $34,560 I I I 1 : 40%! $407.00 $436.00 $524.00 $605.00 $675.00: $16,280 $18,640 $20,960 $23,280 $25,160 $27,000 $28,880 $30,720 ~ 30%: $305.00 $326.00 $392.00 $453.00 $506.00 ~ $12,200 $13,950 $15,700 $17A50 $18,850 $20,250 $21,650 $23,050 --------------.------r----------------------------..---.......------..------------,----------------.....-------------------------i-------------"'------"'-"'-------"'----~-..--..-.-------------- :120%: $1,353.00 $1,449.00 $1,740.00 $2,010.00 $2,241.00: $54,120 $61,800 $69,600 $77,280 $83,520 $89,640 $95,880 $102,000 I I I 1 pOO%: $1,127.00 $],207.00 $1,450.00 $1,675.00 $1,867.00! $45,100 $51,500 $58,000 $64,100 $69,600 $74,700 $79,900 $85,000 t . t " Park: 80%: $901.00 $965.00 $1,158.00 $1,339.00 $1,493.00: $36,050 $41,200 $46,350 $51,~00 $55,650 $59,750 $63,900 $68,000 : 65%! $732.00 $784.00 $942.00 $1,088.00 $1,213.00: $29,315 $33,475 $37,700 $41,~60 $45,240 $48,555 $51,935 $55,250 I I I ) : 60%: $676.00 $724.00 $870.00 $1,005.00 $1,120.00: $27,060 $30,900 $34,800 $38,640 $41,760 $44,820 $47,940 $51,000 I I I . ~ : 55%: $620.00 $664.00 $797.00 $921.00 $1,027.00: $24,805 $28,325 $31,900 $35,420 $38,280 $41,085 $43,945 $46,750 I I I I : 50%: $563.00 $603.00 $725.00 $837.00 $933.00: $22,550 $25,750 $29,000 $32,200 $34,800 $37,350 $39,950 $42,500 I I I ! ! 45%! $507.00 $543.00 $652.00 $753.00 $840.00! $20,295 $23,175 $26,100 $28,~80 $31,320 $33,615 $35,955 $38,250 I I . I 1 : 40%: $451.00 $483.00 $580.00 $670.00 $747.00: $18,040 $20,600 $23,200 $25,760 $27,840 $29,880 $31,960 $34,000 . . . ) : 30%: $337.00 $361.00 $435.00 $501.00 $560.00: $13,500 $15,450 $17,400 $19,300 $20,850 $22,400 $23,950 $25,500 ...... - -... - -.......... -i"'........ -i"............ -............................... "'...... -.................. ...................... -............ -i"'.. '" -.......... ......--................ -.. - ............ -....................... ..-1.......... "'............................................ ..-...................... - ................................. : 120%: $1,932.00 $2,070.00 $2,484.00 $2,871.00 $3,201.00: $77,280 $88,320 $99,360 $110J.400 $119,280 $128,040 $136,920 $145,680 I I I ! ]00%: $],610.00 $1,725.00 $2,070.00 $2,392.00 $2,667.00! $64,400 $73,600 $82,800 $92, ,00 $99,400 $106,700 $114,100 $12],400 Pitkin: 80% : $1,006.00 $1,078.00 $],293.00 $1,495.00 $1,667.00! $40,250 $46,000 $51,750 $57,500 $62,100 $66,700 $71,300 $75,900 I I I I : 60%: $966.00 $],035.00 $1,242.00 $1,435.00 $],600.00: $38,640 $44,160 $49,680 $55,200 $59,640 $64,020 $68,460 $72,840 J . .) I : 55%: $885.00 $948.00 $1,]38.00 $1,315,00 $1,467.00: $35,420 $40,480 $45,540 $50,~00 $54,670 $58,685 $62,755 $66,770 I I I I : 50%: $805.00 $862.00 $],035.00 $1,196.00 $1,333.00! $32,200 $36,800 $41,400 $46,QOO $49,700 $53,350 $57,050 $60,700 ! 45%! $724.00 $776.00 $931.00 $1,076.00 $1,200.00! $28,980 $33,120 $37,260 $41'100 $44,730 $48,015 $51,345 $54,630 ! 40%! $644.00 $690.00 $828.00 $957.00 $1,067.00! $25,760 $29,440 $33,120 $36,800 $39,760 $42,680 $45,640 $48,560 ........ _... _.L ~~yu.~. ~~~~:~~... .~~!? :~(~ _.. _ ~~~}:~~ _.. _ ~?! ?;~~.... ~~~~:~~..L. _~~~,.3.0.~... __~~~!~~~. __., _~~~,~.?!l_ _.... ~~7A~~.. _.. _~~~,_8_0.~ _ _ _. _ ~~~!~~~..... .~~~~~!l. m. _ .;S.3_6..'~?~. _ _. i. ~Z5;':~35 Slmonton Easle, co 04/27/2004 03 '53P R 0. 00 - . . COLORADO DIVISION OF HOUSING 9 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR 2004 EXnmIT B IIUD R~lease Date: January 28, 2004 MAXIMUM RENTS INCOME LIMIT S County i i 0 BDRM 1 BDRM 2 BDRM 3 BDRM 4 BDRM : I PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON ...--------------- i --------1 ---------..--- -----..----..---..- ..----------- -------------- -------------: -------..----- -------..-------...- --....................----- --..-...-..-~----- ------------ -..--..---..----- --------------- ---------------- : 120%: $1,086.00 $1,164.00 $1,395.00 $1,612.00 $1,800.00 l $43,440 $49,680 $55,800 $62,040 $66,960 $72,000 $76,920 $81,840 , , , : 100%: $905.00 $970.00 $1,162.00 $1,343.00 $1,500.00: $36,200 $41,400 $46,500 $51,'700 $55,800 $60,000 $64,100 $68,200 , , , Pueblo: 80%: $723.00 $775.00 $930.00 $1,075.00 $1,200.00: $28,950 $33,100 $37,200 $41,3,50 $44,650 $48,000 $51,300 $54,600 J I I \ : 65%: $588.00 $630.00 $755.00 $873.00 $975.00: $23,530 $26,910 $30,225 $33,1\05 $36,270 $39,000 $41,6(i5 $44,330 I I , I 60%: $543.00 $582.00 $697.00 $806.00 $900.00 ',' $21,720 $24,840 $27,900 $31,1120 $33,480 $36,000 $38,460 $40,920 , I ! 55%! $497.00 $533.00 $639.00 $739.00 $825.00! $19,910 $22,770 $25,575 $28,435 $30,690 $33,000 $35,255 $37,510 J I I : : 50%: $452.00 $485.00 $581.00 $671.00 $750.00: $18,100 $20,700 $23,250 $25,~50 $27,900 $30,000 $32,050 $34,100 ! 45%: $407.00 $436.00 $523.00 $604.00 $675.00! $16,290 $18,630 $20,925 $23,i65 $25,110 $27,000 $28,845 $30,690 t t I I ! 40%! $362.00 $388.00 $465.00 $537.00 $600.00! $14,480 $16,560 $18,600 $20,~80 $22,320 $24,000 $25,640 $27,280 : 30%: $271.00 $290.00 $348.00 $403.00 $450.00: $10,850 $12,400 $13,950 $15,~00 $16,750 $18,000 $19,250 $20,450 --------------1-----,------------------------------------------------------,--------------------------------------------~--------------------------------------------------------- : 120%: $1,086.00 $1,164.00 $1,395.00 $1,612.00 $1,800.00: $43,440 $49,680 $55,800 $62,q40 $66,960 $72,000 $76,920 $81,840 I I . ' : 100%: $905.00 $970.00 $1,162.00 $1,343.00 $1,500.00: $36,200 $41,400 $46,500 $5qOO $55,800 $60,000 $64,100 $68,200 Rio Blanco: 80%! $723.00 $775.00 $930.00 $1,075.00 $1,200.00! $28,950 $33,100 $37,200 $41,~50 $44,650 $48,000 $51,300 $54,600 J I I ' , ! 65%! $588.00 $630.00 $755.00 $873.00 $975.00! $23,530 $26,910 $30,225 $33,605 $36,270 $39,000 $41,665 $44,330 I I I, l : 60%: $543.00 $582.00 $697.00 $806.00 $900.00: $21,720 $24,840 $27,900 $31,~20 $33,480 $36,000 $38,460 $40,920 I I I j ! 55%! $497.00 $533.00 $639.00 $739.00 $825.00! $19,910 $22,770 $25,575 $28,~35 $30,690 $33,000 $35,255 $37,510 : 50%: $452.00 $485.00 $581.00 $671.00 $750.00: $18,100 $20,700 $23,250 $25,850 $27,900 $30,000 $32,050 $34,100 I I I ' ! 45%! $407.00 $436.00 $523.00 $604.00 $675.00! $16,290 $18,630 $20,925 $23,:Z65 $25,110 $27,000 $28,845 $30,690 I I I ! : 40%: $362.00 $388.00 $465.00 $537.00 $600.00: $14,480 $16,560 $18,600 $20,680 $22,320 $24,000 $25,640 $27,280 . . . I ; 30%: $271.00 $290.00 $348.00 $403.00 $450.00; $10,850 $12,400 $13,950 $15,~00 $16,750 $18,000 $19,250 $20,450 ..-------------,--..---~----------..-------...--..---~-.---.-------------.----~-.---.---.--------.-----.------------------J----------------------------------~---------------------- ! 120%: $1,416.00 $1,516.00 $1,821.00 $2,103.00 $2,346.00! $56,640 $64,680 $72,840 $80,~80 $87,360 $93,840 $100,320 $106,800 :100%: $1,180.00 $1,263.00 $1,517.00 $1,752.00 $1,955.00: $47,200 $53,900 $60,700 $67,400 $72,800 $78,200 $83,600 $89,000 : :' : 1 Routt: 80%: $943.00 $1,011.00 $1,213.00 $1,401.00 $1,563.00: $37,750 $43,150 $48,550 $53,~00 $58,250 $62,550 $66,850 $71,150 I I . I : 65%: $767.00 $821.00 $986.00 $1,139.00 $1,270.00: $30,680 $35,035 $39,455 $43,~10 $47,320 $50,830 $54,340 $57,850 I I I ' : 60%: $708.00 $758.00 $910.00 $1,051.00 $1,173.00: $28,320 $32,340 $36,420 $40,440 $43,680 $46,920 $50,160 $53,400 . . , I : 55%: $649.00 $695.00 $834.00 $963.00 $1,075.00: $25,960 $29,645 $33,385 $37,~70 $40,040 $43,010 $45,980 $48,950 It. I ' : 50%: $590.00 $631.00 $758.00 $876.00 $977.00: $23,600 $26,950 $30,350 $33,~00 $36,400 $39,100 $41,800 $44,500 : : : 1 : 45%: $531.00 $568.00 $682.00 $788.00 $879.00: $21,240 $24,255 $27,315 $30,~30 $32,760 $35,190 $37,620 $40,050 I I I J ! 40%! $472.00 $505.00 $607.00 $701.00 $782.00! $18,880 $21,560 $24,280 $26,'},60 $29,120 $31,280 $33,440 $35,600 . _ _. _ _. _. __.. .:. ~~~-::o.~. ~~~~:~~ _. __~~??:~~. _ __ ~~??:~~ _. _ _ ~~~?:~~ _ _ _ _ ~?~?:~~__L __~~~,.1.s_~ _ _ _ _ _ ~!?~~~~ _ _. _ _ .~~~,~~~_ _ _ _ _ _ ~~~A~~ _ _ _ _ _ _~~~,!l_5_~__ __ _ ~~~~~~~ _ _ _. _ _$_1:s.,~?~_ _ _ _ _.. ~:!.6;> ?~~_. __ 875330 I Page: 27 of 35 04/27/2004 03:53P R 0.00 0 ~ ~~ COLORADO DIVISION OF HOUSING 10 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR 2004 EXHIBIT B HUD R~lease Date: January 28, 2004 MAXIMUM RENTS INCOME LIMIT S County i : 0 BDRM 1 BDRM 2 BDRM 3 BDRM 4 BDRM : 1 PERSON 2I'ERSON 3 PERSON 4 PER$ON 5 PERSON 6 PERSON 7 PERSON 8 PERSON ------..---------- ~ -...-----: ------------- ------------ ------ ..---------- ---------: ......--------- --..------- -------...- -...-----4---- ------...- ---------...--- ----_.....------ -----------..--- : ; I \ : 120%: $1,497.00 $1,603.00 $1,926.00 $2,224.00 $2,481.00: $59,880 $68,400 $77,040 $85,$60 $92,400 $99,240 $106,080 $112,920 ! 100%: $1,247.00 $1,336.00 $1,605.00 $1,853.00 $2,067.00! $49,900 $57,000 $64,200 $71,~00 $77,000 $82,700 $88,400 $94,100 , i I : San Miguel: 80%: $998.00 $1,070.00 $1,283.00 $1,483.00 $1,653.00: $39,950 $45,650 $51,350 $57,(\50 $61,600 $66,150 $70,750 $75,300 , , , i 65%! $810.00 $868.00 $1,043.00 $1,204.00 $1,343.00 i $32,435 $37,050 $41,730 $46,},45 $50,050 $53,755 $57,460 $61,165 : 60% i $748.00 $801.00 $963.00 $1,112.00 $1,240.00: $29,.940 $34,200 $38,520 $42,~80 $46,200 $49,620 $53,040 $56,460 I I I : 55%: $686.00 $734.00 $882.00 $1,019.00 $1,137.00: $27,445 $31,350 $35,310 $39,:H5 $42,350 $45,485 $48,620 $51,755 I I I I 50%: $623.00 $668.00 $802.00 $926.00 $1,033.00: $24,950 $28,500 $32,100 $35,~50 $38,500 $41,350 $44,200 $47,050 I I I ! 45%: $561.00 $601.00 $722.00 $834.00 $930.00! $22,455 $25,650 $28,890 $32,Q85 $34,650 $37,215 $39,780 $42,345 : 40%! $499.00 $534.00 $642.00 $741.00 $827.00! $19,960 $22,800 $25,680 $28,~20 $30,800 $33,080 $35,360 $37,640 : 30%: $373.00 $400.00 $481.00 $556.00 $620.00: $14,950 $17,100 $19,250 $21,~00 $23,100 $24,800 $26,500 $28,250 .-........-...,......r...............-........-..-...................-..-..-r.-..-....-........-........-..-..-.....-.-.J-..-..-..................-..-.......-.-............---.-. : 120%: $1,599.00 $1,713.00 $2,055.00 $2,374.00 $2,649.00 I $63,960 $73,080 $82,200 $91,320 $98,640 $105,960 $113,280 $120,600 , I I I :100%: $1,332.00 $1,427.00 $1,712.00 $1,978.00 $2,207.00 i $53,300 $60,900 $68,500 $76,~00 $82,200 $88,300 $94,400 $100,500 Summit: 80% : $1,006.00 $1,078.00 $1,293.00 $1,495.00 $1,667.00: $40,250 $46,000 $51,750 $57,~00 $62,100 $66,700 $71,300 $75,900 I I I ' , ! 65% i $866.00 $927.00 $1,113.00 $1,286.00 $1,434.00: $34,645 $39,585 $44,525 $49,~65 $53,430 $57,395 $61,360 $65,325 ! 60%! $799.00 $856.00 $1,027.00 $1,187.00 $1,324.00! $31,980 $36,540 $41,100 $45,~60 $49,320 $52,980 $56,640 $60,300 I J I, ! i 55%! $732.00 $785.00 $941.00 $1,088.00 $1,214.00! $29,315 $33,495 $37,675 $41,~55 $45,210 $48,565 $51,920 $55,275 : 50%: $666.00 $713.00 $856.00 $989.00 $1,103.00: $26,650 $30,450 $34,250 $38,050 $41,100 $44,150 $47,200 $50,250 I I I t ! 45%! $599.00 $642.00 $770.00 $890.00 $993.00! $23,985 $27,405 $30,825 $34'145 $36,990 $39,735 $42,480 $45,225 ! 40%! $533.00 $571.00 $685.00 $791.00 $883.00! $21,320 $24,360 $27,400 $30,440 $32,880 $35,320 $37,760 $40,200 . . . i : 30%: $400.00 $428.00 $513.00 $593.00 $662.00: $16,000 $18,250 $20,550 $22,&50 $24,650 $26,500$28,300 $30,150 --------------~-...--..~-..-------------------------_----______________________~_--_..-___-__--_-------w--w------_________________________________.___________________________________ : 120%: $1,404.00 $1,504.00 $1,806.00 $2,088.00 $2,328.00: $56,160 $64,200 $72,240 $80,~80 $86,760 $93,120 $99,600 $105,960 I I , 1100%: $1,170.00 $1,253.00 $1,505.00 $1,740.00 $1,940.00: $46,800 $53,500 $60,200 $66,~00 $72,300 $77,600 $83,000 $88,300 I I I I I I ! Teller: 80%: $936.00 $1,003.00 $1,203.00 $1,391.00 $1,552,00: $37,450 $42,800 $48,150 $53,500 $57,800 $62,100 $66,350 $70,650 I I I i : 65%: $760.00 $814.00 $978.00 $1,131.00 $1,261.00: $30,420 $34,775 $39,130 $43,485 $46,995 $50,440 $53,950 $57,395 I I I t ! 60%! $702.00 $752.00 $903.00 $1,044.00 $1,164.00! $28,080 $32,100 $36,120 $40,~40 $43,380 $46,560 $49,800 $52,980 : 55%: $643.00 $689.00 $827.00 $957.00 $1,067.00: $25,740 $29,425 $33,110 $36,~95 $39,765 $42,680 $45,650 $48,565 : 50%: $585.00 $626.00 $752,00 $870.00 $970.00 i $23,400 $26,750 $30,100 $33,J50 $36,150 $38,800 $41,500 $44,150 : : ~ .. I : 45%: $526.00 $564.00 $677.00 $783.00 $873.00: $21,060 $24,075 $27,090 $30,1!05 $32,535 $34,920 $37,350 $39,735 , t . I j : 40%: $468.00 $501.00 $602.00 $696.00 $776.00: $18,720 $21,400 $24,080 $26,760 $28,920 $31,040 $33,200 $35,320 . . . ! ..............:. ~~~'.t. ~~?!:~~.._ .~~?~:~~... _ ~~?};~~.... ~?~~;~~ ....~?~};~~..:.. _~~~,!>.5.~.... _~!~~~~~..... .~1.~,~?~...... ~~~;~?~..... _~~~'.?~~.... _ ~~~~~~~..... ~.2.4.'?~~. _..... ~~.6!?~~.... \ Teak COLORADO DIVISION OF HOUSING 11 INCOME & RENT TABLES FOR 30%-120% OF MEDIAN INCOME FOR COLORADO COUNTIES FOR 2004 EXHIBIT n HUD R~[ease Date: January 28, 2004 MAXIJ\lUM RENTS INCOME LIMIT S, Couuty: j 0 Bl)RM 1 Bl)RM 2 Bl)RM 3 Bl)RM 4 Bl)RM : 1 PERSON 2 PERSON 3 PERSON 4 PER~ON 5 PERSON 6 PERSON 7 PERSON 8 PERSON ----...-------------- i -------: -----...------- -------------... -------------- ------------ ---------: --------- -------..-.. -------------- -------r----- --------------- -----------..-- ------------ ------------------- : 120%: $1,164.00 $1,246.00 $1,497.00 $1,728.00 $1,929.00: $46,56G $53,160 $59,880 $66,480 $71,760 $77,160 $82,440 $87,720 : 100%: $970.00 $1,038.00 $1,247.00 $1,440.00 $1,607.00: $38,800 $44,300 $49,900 $55,400 $59,800 $64,300 $68,700 $73,100 , I I I Weld: 80%: $775.00 $830.00 $997.00 $1,151.00 $1,285.00: $31,000 $35,450 $39,900 $44,300 $47,850 $51,400 $54,950 $58,500 : 65%: $630.00 $675.00 $810.00 $936.00 $1,044.00: $25,220 $28,795 $32,435 $36,d1O $38,870 $41,795 $44,655 $47,515 I I I i : 60%: $582.00 $623.00 $748.00 $864.00 $964.00: $23,280 $26,580 $29,940 ~~3,i40 $35,880 $38,580 $41,220 $43,860 I I I ! : 55%: $533.00 $571.00 $686.00 $792.00 $884.00: $21,340 $24,365 $27,445 $30,470 $32,890 $35,365 $37,785 $40,205 I J I I : 50%: $485.00 $519.00 $623.00 $720.00 $803.00: $19,400 $22,150 $24,950 $27,'100 $29,900 $32,150 $34,350 $36,550 : 45%! $436.00 $467.00 $561.00 $648.00 $723.00: $17,460 $19,935 $22,455 $24,~30 $26,910 $28,935 $30,915 $32,895 I , f i : 40%: $388.00 $415.00 $499.00 $576.00 $643.00: $15,520 $17,720 $19,960 $22,~60 $23,920 $25,720 $27,480 $29,240 I I I ! : 30%: $291.00 $311.00 $373.00 $431.00 $482.00 I $11,650 $13,300 $14,950 $16,(j00 $17,950 $19,300 $20,600 $21,950 --------------,-----,------------------------------------------------------i--------------------------------------------,--------------------------------------------------------- : 120%: $1,086.00 $1,164.00 $1,395.00 $1,612.00 $1,800.00: $43,440 $49,680 $55,800 $62,Q40 $66,960 $72,000 $76,920 $81,840 I I I \ hel' Non-Metro!100%! $905.00 $970.00 $1,162.00 $1,343.00 $1,500.00! $36,200 $41,400 $46,500 $51,'tOO $55,800 $60,000 $64,100 $68,200 1 . I , ( Counties: 80%: $723.00 $775.00 $930.00 $1,075.00 $1,200.00: $28,950 $33,100 $37,200 $41,350 $44,650 $48,000 $51,300 $54,600 I I I I (See Below): 65%: $588.00 $630.00 $755.00 $873.00 $975.00: $23,530 $26,910 $30,225 $33,~05 $36,270 $39,000 $41,665 $44,330 I I I ) : 60%: $543.00 $582.00 $697.00 $806,00 $900.00: $21,720 $24,840 $27,900 $31,Q20 $33,480 $36,000 $38,460 $40,920 I I I ' : 55%: $497.00 $533.00 $639.00 $739.00 $825.00: $19,910 $22,770 $25,575 $28,435 $30,690 $33,000 $35,255 $37,510 I I I " : 50%: $452.00 $485.00 $581.00 $671.00 $750.00: $18,100 $20,700 $23,250 $25A50 $27,900 $30,000 $32,050 $34,100 ! 45%! $407.00 $436.00 $523.00 $604.00 $675.00! $16,290 $18,630 $20,925 $23,~65 $25,110 $27,000 $28,845 $30,690 t I I I : 40%: $362.00 $388.00 $465.00 $537.00 $600.00: $14,480 $16,560 $18,600 $20,(j80 $22,320 $24,000 $25,640 $27,280 . I I I : 30%: $271.00 $290.00 $348.00 $403.00 $450.00! $10,850 $12,400 $13,950 $15,~00 $16,750 $18,000 $19,250 $20,450 . . . . . . ..._____.___M_._._._M~____...__.__._________.._._MM.....__._.___.._________.~__._.____..___________..__.____.___.____._.~________..___._________.__._____________.________________ *Other non-metro counties include: Alamosa, Archuleta, Baca, Bent, Chaffee, Conejos,! Costilla, Crowley, Custer, Delta, Dolores, Fremont, Hinsdale, Huerfano, Jackson, Kit Carson, Lfke, Las Animas, Lincoln, Logan, Mineral, Montezuma, Montrose, Otero, Phillips, Prowers, Rio Grande, Saguach~, San Juan, Sedgwick, Washington, Yuma ' These income and rent limits are calculated using the HUD income limits. kun income limit areas are also used, including the HOD Metropolitan Statistical Areas (MSAs) and Primary ~etropolitan Statistical Areas I (PMSAs) for the larger metro areas. 875330 Page: 29 of 35 04/27/2004 03:53P R 0,00 0 0.00 AMENDMENT C 875330 Page: 30 of 35 04/27/2004 03:53P Teak J Simonton Eagle, CO 121 R 0.00 D 0.00 EXHIBIT C1 Contract Routing # Encumbrance # Vendor # I (for Remit Address) APPR GBL CFDA# 14.228 Amendment # Between Colorado De State Executed Contract Modifications A. Modifications to Contract Boilerplate Responsible Administrator: Delete old Administrator's name and insert in lieu thereof new "Responsible Administrator". 0- M Modifications to Exhibit A, Scope of Service. 10 10 ., MM S...GlGl Time of Performance: 'Time of Performance is modified by deleting "Date" and inserting Moq-Gl Gl' in lieu thereof" Date ". M"-<GlGl MN 1.0..;:::0 Remit Address: Delete current "Remit Address" and in insert in lieu thereof new "Remit ,..... <II N 01' Address". CO III q- O-Gl l$) l$) Payment Schedule: Delete current "Payment Schedule" and insert in lieu thereof new l$) "Payment Schedule". 0:: N All of the terms and conditions of the Original Contract remain unchanged except for those terms and conditions modified by this Amendment # and all previous amendments. Both parties also expressly understand that thIS Amendment # is 0 incorporated into the Original Contract. u . QJ 01 Department of Local Affairs .. UJ C 0 C 0 E (/) ..., (Pre-approved Form Contract Reviewer MIchael L. Beasley, Executive Director -'" .. QJ t- ALL CONTRACTS MUST BE APPROVED BY THE STATE CONTROLLER CRS 24-30-202 requires that the State Controller approve all state contracts. This contract is not valid until the State Controller, or such assistant as he may delegate, has s~ned it. The contractor is not authorized to begin performance until the contract is signe and dated below. If performance begins prior to the date below, the State of Colorado may not be obligated to pay for the goods and/or services provided. STATE CONTROLLER: Arthur L. Barnhart By Rose Marie Auten, Controller Department of Local Affairs Date: Page 1 of 1 EXHIBIT C2 Contract Routing # ~ Encumbrance # Vendor # (for Remit Address) APPR GBL CFDA# 14.228 State and Contractor Executed Modifications A. Modifications to Contract Boilerplate Compensation and Method of Payment: "Compensation and Method of Payment" in the Original Contract is modified by deleting" Amount" and inserting in lieu there of" Amount ". Responsible Administrator: Delete old Administrator's name and insert in lieu thereof new "Responsible Administrator". Compliance with Applicable Laws: Paragraph #20, "Compliance with Applicable Laws" in the Original Contract is modified as follows: Include existing language "is revised to read" and the revised language. B. Modifications to E}(hibit A,_Scope of Services. Project Descri~tion, Objectives and Requirements: "Project Description, Objectives, and Requirements, ubsection A." is modified as follows: Include existing language "is revised to read" and the revised language, National Objective: "National Objective" is modified by deleting current National Objective and inserting new National Objective. Time of Perfo..rmance: "Time of Performance" is modified by deleting current Date and inserting new Date. - Budget: "Budget" is modified by deleting the current Budget and inserting new Budget. Remit Address: "Remit Address" is modified by deleting the current Remit Address and inserting new Remit Address. Padment Schedule: "Payment Schedule" is modified by deleting current Payment Schedule an inserting new Payment Schedule, Contract Monitorin~: "Contract Monitoring" is modified by deleting current Contract Monitoring and inse ing new Contract Monrtoring. Reporting Schedule: "Reporting Schedule is modified by deleting current Reporting Schedule and inserting new Reporting Schedule, All of the terms and conditions of the Original Contract remain unchanged except for those terms and conditions modified by this Amendment # _ and all previous amendments, Both Rarties also expressly understand that this Amendment # . is incorporated into the Original Contract. 875330 Page: 32 of 35 04/27/2004 03:53P R 0.00 o 0.00 Page 1 of 2 THE PARTIES HERETO HAVE EXECUTED THIS CONTRACT ,~ CONTRACTOR: STATE OF COLORADO: BILL OWENS, GOVERNOR By Legal Name of Contracting Entity Michael L. Beasley, Executive Director Department of Local Affairs Social Security Number or FEIN Signature of Authorized Officer PRE-APPROVED FORM CONTRACT REVIEWER: Print Name & Title of Authorized Officer ' CORPORATIONS: (A corporate seal or attestation is required.) Attest (Seal) By (Corporate Secretary or Equivalent, or Town/City/County Clerk) ALL CONTRACTS MUST BE APPROVED BY THE STATE CONTROLLER CRS 24-30-202 requires that the State Controller approve all state contracts. This contract is not valid until the State Controller, or such assistant as he may delegate, has signed it. The contractor is not authorized to begin performance until the contract is signed and dated below. If performance begins prior to the date below, the State of Colorado may not be obligated to pay for the goods and I or services provided. STATE CONTROLLER: Arthur L. Barnhart By Rose Marie Auten, Controller Department of Local Affairs Date 875330 Page: 33 of 35 04/27/2004 03:53P Teak J Simonton Eagle, CO 121 R 0.00 D 0.00 Page 2 of 2 - AMENDMENT D 875330 Page: 34 of 35 04/27/2004 03:53P Teak J Simonton Eagle, CO 121 R 0.00 o 0.00 .__.e EXHIBIT D PROJECT PERFORMANCE PLAN ____0.. ~ Eagle County Down Payment Assistance Program Monitoring Level - Fre Pro'ect #03-048G TARGET: Grantee will complete a total of 12 DPA loans during the contract period. Dev~-=-!?ill Whaley Asset Manager- Autumn Gold MILESTONES CAP ACITY STATE ROLE DPA Program and Board- Grantee has had with DOH State staff will respond to approved lending guidelines contract in the past and needs proposed guidelines within 5 and submit to DOH before any to revise guidelines tailored to days of receipt. funds can be drawn down. DOH standard guidelines to s ecific needs. Receive and Review DOH DOH will provide forms to Monitoring Documents within 30 Grantee within 30 days of da s of receivin them. contract execution. Obtain Finding of Exemption of Grantee has been provided State staff will work with Categorically Excluded CDBG Forms. grantee and Eric Bergman Activities per CDBG guidebook to ensure completion prior to before any funds can be drawn funds being released. down. Develop marketing plan to This is a continuation of an State will review and make ensure all potential markets are existing program. suggestions to marketing plan met and submit to DOH if within 5 days of receipt. needed. Provide a minimum of 12 Grantee is a certified CHFA, homeownership classes. FHLBB and HUD homeownershi rovider. By the end of each quarter have Grantee will have DOH State staff will review closed 3 loans for a total of at approved plan in place. quarterly performance and least 12 closed loans during the make recommendations if term of the contract. performance goals are not met Submit CDBG Citizen DOH Staff will provide 1.Participation Plan technical assistance. 2. Community Development Plan before any funds can be drawn HI~ 875330 down. Page: 35 of 35 04/27/2004 03:53 Teak J Simonton Eagle, CO 121 R 0,00 o 0.00 .- Exhibit 3 Program Guidelines and Revolving Loan Policies -13- ~ Iff,,'. /'~)!. ..< ',' "~'." < '.':'~ $11) .r. >r'~;. .. ... Ei\GLE CbUNff Eagle County Fund Revolving Loan Policies PREFACE The purpose of this document is to provide a framework for managing the Eagle County Down Payment Assistance program, a revolving loan fund. The EAGLE COUNTY loan program provides equal opportunity for all qualified participants, where factors of race, color, religion, gender, handicap, family status or national origin are expressly prohibited from consideration in the analysis of loan applications. As written herein, "policies and procedures" should be interpreted as a framework for decision-making, creating a standard for lending functions of the organization. Policy statements are an expression of the Board of County Commissioners, serving as clear directive to EAGLE County's management, Staff and loan servicing agent who are, in turn, charged with developing operating guidelines and procedures consistent with those stated directions. It is the intent and expectation of the Board of County Corrunissioners that the following policies and procedures may be altered, added to, or deleted to reflect the changing needs of the organization. EAGLE COUNTY Staff acknowledges that these policies are not designed to be inflexible rules to which all cases are expected to conform. Rather, they represent standards to which most cases are expected to conform, but from which deviation is permitted if good reasons exist for such deviation. If a borrower should disagree with a decision made by EAGLE COUNTY or its representative, borrower may appeal the decision following the process outlined in Section V. Eagle County's interest in developing standards of efficiency dictate the use of lending policies, but EAGLE COUNTY recognizes the inherent limitations. With the exception of specific policy parameters which state that deviation is not allowed (i.e. "must"), the policies contained herein should not be applied rigidly. In all cases, policies and procedures shall not be used as a substitute for sound credit judgment. Finally, this document shall be reviewed periodically to reflect changes in EAGLE County's lending activities, portfolio growth, and other factors that may affect the nature and assessment of risk. F:\My Documents\DP A \Eagle County Fund RLP .doc - 1 - .- I. ROLE OF STAFF Al~D LOAi~ SERVICING AGENT 1. Management and Staff -The Director of Housing and all other employed Staff of Eagle County I shall be collectively referred to as "Staff', A third party Loan Servicing Agent (LSA) will be engaged to implement and service lending activities on behalf of EAGLE COUNTY. As stipulated in the governing documents of the organization, EAGLE COUNTY Board of County Commissioners shall retain ultimate authority and oversight of all lending activities; a. Within Eagle County and its surrounds, reputable mortgage and other real estate professionals will be engaged to originate loan applications on behalf of EAGLE COUNTY and homebuyers who meet established income thresholds and other pertinent criteria under program guidelines. b. Oversee implementation of adopted Policies and Procedures and conduct periodic reviews of LSA activities and performance according to established goals. Make appropriate recommendations to LSA for further action, if necessary. c. After receipt of loan application and supporting documentation listed in Section II., LSA shall review documentation provided, verify Borrower's eligibility under program guidelines and forward to Eagle County Staff a loan summary sheet demonstrating that the borrower has met all program guidelines and / or detailing policy exceptions. Eagle County Staff will approve or deny the loan based on LSA's analysis of the borrower's eligibility tmder program guidelines. After review by Staff, LSA shall then issue a loan commitment letter, decline the application, request further information, or forward a recommendation to Staff as identified in Section II. d. Receive LSA recommendations and supporting analysis of any loan request outside policy parameters, as set forth in Section II. EAGLE COUNTY Staff and/or the Home Buyer's Assistance Committee will provide an underwriting decision and set terms accordingly. e. Monthly review of Loan Activity Report, or more frequently in situations where delinquency, loss, or loan activity warrant Staff input. f. Establish priorities related to lending activity and consistency of such activity to the mission of Eagle County. 2. Loan Servicing Agent (LSA) - The LSA will function as an agent of EAGLE COUNTY and implement lending programs according to established policies and procedures. Under no circumstances shall LSA operate outside its stated authority, nor obligate EAGLE COUNTY to any transactions that compromise the integrity of the organization or its loan programs without the duly authorized written consent of EAGLE COUNTY. LSA shall not engage in any practice that unduly favors itself or other outside parties to the detriment of EAGLE COUNTY or its loan portfolio without duly authorized written consent of EAGLE COUNTY. LSA shall implement all lending activity, including: a. Review and recommend modifications of the EAGLE COLJ'NTY Loan Policies and Procedures to Staff for consideration and approval as deemed appropriate. Staff will provide valuable input in this process. b. Referral sources will collect and review applicant data for qualification under the program, assist borrower in completing all undernTiting and funding requirements, facilitate the purchase transaction, and provide any post-closing assistance necessary to maintain portfolio integrity. Completed loan applications shall be sent directly to Loan Servicing Agent for underwriting. c. After receipt ofloan application and supporting documentation listed in Section II., LSA shall review documentation provided and verify Borrower's eligibility under program guidelines. LSA shall determine the appropriate loan program to be used based on borrower eligibility and program availability. Programs designated for low income households (i.e. CDOH and/or H20) must be utilized first for qualifying households. F:'Il\1y Documents\DP A \Eagle County Fund RLP .doc 2 d. LSA shall forward to Eagle County Staff a loan summary sheet demonstrating that the borrower has met all program guidelines and / or detailing policy exceptions. Eagle County Staff will approve or deny the loan based on LSA's analysis of the borrower's eligibility under program guidelines. After review by Staff, LSA shall then issue a loan commitment letter, decline the application, request further information, or forward a recommendation to Staff as identified in Section II. e. Within a reasonable time period following an underwriting decision, LSA will advise the borrower, through the referral source, of the action. If approved, the notification will include all terms, conditions and supporting documentation necessary to fulfill the loan commitment. The commitment shall be extended for a period equal to the time commitment of the primary loan. If the loan is declined, applicant will be advised of the reasons for the decision and any recommendations for further consideration, if appropriate. Applicant will also be advised of dispute and appeal procedures as stated in Section V. e. Based upon a favorable underwriting decision, a loan file must contain satisfactory documentation detailed in Section II prior to funding the loan. LSA will coordinate with all parties to the transaction to facilitate timely execution of the transaction. f. LSA will prepare and review all loan documents, including settlement statement, for accuracy, as well as setup wire transfer or obtain certified funds in the exact amount of the approved loan. All loan closing fees shall be a charge to borrower at the time of settlement. Cf A mortgage banker or lender of the referral source, or their representative, shall attend closing and O' present fmal loan documents. LSA may elect to provide alternative arrangements for loan presentation at its discretion. The closing agent to the transaction will be engaged to notarize and record the Deed of Trust with the appropriate agency, and collect any documentation required from borrower or referral source to complete the loan file, according to the Closing Instruction form provided with the loan package. The agency shall be instructed to return the recorded instrument to LSA. Closing agent shall be instructed to return the executed loan package to LSA within 48 hours of final settlement. h. LSA shall maintain all executed documents in a secure manner, where the Promissory Note is stored in Safe Deposit with a financial institution deemed most appropriate by LSA. LSA will follow-up with the agency if the original recorded document is not received within a reasonable period of time. All executed loan documents will be stored electronically or similar method, to achieve redundancy. 1. Within 15 business days of closing, LSA will conduct a post-closing audit of loan files to verify accuracy and presence of all necessary documentation. Immediate action will be taken to correct any findings. J- LSA will monitor compliance with all loan provisions and advise Borrower in writing and/or by telephone of any non-compliance issues. If, in the opinion of LSA, non-compliance is of a material nature, Staff will be advised of the situation in a manner deemed most appropriate. LSA will provide sufficient detail and recommend a course of action for consideration by Staff. k. LSA will assess and advise Staff of any outstanding loans that are at risk of non-performance, with all appropriate action pursued. L vVhen a request for loan payoff is received, LSA will complete and deliver a Payoff Statement within a reasonable time period. Particular care will be given to the completeness and accuracy of all figures. m. LSA shall invoice for and accept all monthly loan payments, and all loan payoffs, from borrowers according to the terms and conditions of the Note. Within 15 days of the close of each calendar F:u\1y Documents\DP A \Eagle County Fund RLP.doc 3 - month, LSA shall forward proceeds of such payments to EAGLE COtJNTY or a financial institution authorized by EAGLE COUNTY to receive such payments, Such payments shall include a detailed accounting of principal, interest and other charges received by LSA and corresponding application to borrower accounts. n. Acceptable forms of payment from the borrower will include certified funds, money order or personal check. Any other form must have prior agreement from Staff. Borrowers' account will be credited as of the date of receipt of payment. In cases of returned items, LSA shall process a reverse entry of the affected borrower payment, assess the appropriate late payment charge and returned item charge equal to the charge imposed by LSA's fmancial institution and re-invoice the borrower with appropriate advisement of the loan status and itemized detail of charges included. o. Within a reasonable period of time, not to exceed 90 days, of receipt of acceptable final payment of the loan obligation, LSA will prepare, execute and deliver a Release of Deed of Trust to the appropriate agency. The original recorded Release shall be returned to LSA and retained in a secure manner. Copies of all documents shall be retained in the Borrowers' permanent file, with original note marked as "Paid", initialed and dated by a LSA representative and forwarded to the Borrower, or Public Trustee as appropriate. p. LSA will follow-up with the appropriate agency(s) if the recorded Release document is not received within a reasonable period of time. 3. ROLE OF HOMEBUYER'S ASSISTAc~CE COMMITTEE\ The Homebuyer's Assistance Committee (HBAC) was formed by the EAGLE COUNTY Board of County Commissioners to provide recommendations to the Board on mortgage assistance policies and procedures. The HBAC will schedule meetings at least every other month, or more frequently as dictated by loan activity and membership availability. To accommodate urgent responses, items may be considered by the committee via fax, telephone, and/or emaiL Such alternate polling is subject to the provisions identified below. HBAC will be comprised of a mlIllmum of ten members appointed by the Board of County Commissioners for specific terms. The HBAC will include members from all parts of Eagle County, The members will represent diversified interests and expertise within Eagle County. Membership will include, but not be limited to, members representing the banking and mortgage group, the real estate group, citizen advocacy groups, as well as low/moderate income citizens group, A simple majority of the membership shall be present at meetings to constitute a quorum for formal action. Such action shall include recommendations on loan decisions, remands or other recommendations to the Board of County Commissioners for further consideration. The Director of Housing and Staff will oversee LSA lending activity through the advisement of the HBAC including: a. Review and recommend modifications of loan policies and procedures to the Board of County Commissioners for approval as deemed appropriate. Staff will participate in this process. b, Approval of solutions for problem loans, c. Approval of Staff decisions regarding exceptions to established policies, d. In the case of appeal or dispute resolution, a sub-committee of HBAC members will serve as Hearing Officers. At a minimum, the HBAC will review annually the Staff decisions made regarding applicant selection, loan terms, problem loans and foreclosures, F:\t\1y Documents\DP A \Eagle County Fund RLP,doc 4 - II. DOCUlVIENTATION AND UNDERWRITmG CRITERIA 1. Documentation Requirements - Loan applicants shall be required to provide sufficient documentation that verifies their eligibility under EAGLE COUNTY program guidelines, capacity to assume the mortgage liability and a formal introduction to the responsibilities of home ownership through home buyer education. Delivery of loan documents and loan funding shall be the responsibility of LSA, subject to timely submission of required application documentation and capacity of LSA resources. LSA shall review documentation submitted by the referral source and either approve the application, request further information, forward a recommendation to Staff, or decline the application. LSA shall issue a [mal determination in writing to the borrower within a reasonable period of time, specifying the approved loan amount and any documentation requirements prior to loan funding. For expediency, the letter may be faxed to the referral source and shared with the borrower. A complete loan file must include: a. Application-Borrower shall complete, sign and date the LSA loan application and submit other required documents with the understanding that LSA retains the right to verify the accuracy of all information provided. b. Income Verification - Borrower shall provide payroll statements for the most recent thirty (30) day period and signed federal tax returns for the most recent tax year. If borrower shows income from a business not listed on ScheduleC of the return, the complete and signed copy of the business return will be required for the corresponding period. Borrowers who are self-employed, or an employee receiving commission income, tax returns for the most recent two-year period and a year-to-date profit & loss statement (P&L), signed and dated by borrower, shall be required. A P&L form may be produced with assistance of the referral source, based upon information provided by borrower. (Note: if borrower filed an extension of the most recent years' return, a year-end profit and loss statement, copy of the extension and the two previous years' returns shall be required.) If payroll statements are unavailable, referral source shall provide a written statement from the borrower's supervisor or human resource manager that specifies borrower's wage scale, number of regularly scheduled hours, additional income (overtime, holiday pay, etc.) and the likelihood of its continuance, as well as any relevant changes to the borrower's employment status. EAGLE COl.JNTY reserves the right to require a minimum number of hours worked by all, or at least one, borrower within EAGLE COUNTY loan service areas. Additionally, EAGLE COUNTY may establish a minimum threshold for length of employment within said service areas and/or number of hours worked over a set time period in order to qualify under this loan program. c. Qualification Letter - Borrower shall be required to obtain loan approval for the l5t mortgage from a reputable lender and authorize the lender to issue an approval letter that specifies the terms and conditions of the mortgage, though there shall be no requirement to use any particular lender. Staff shall be cognizant of lender terms and conditions that may indicate unfair business practices or terms, which may create unreasonable financial burden to the borrower. A listing of all qualified and reputable lenders/mortgage brokers shall be compiled by LSA and made available to Staff. d. Home Ownership Training - Borrower shall be required to attend and complete a qualified training program, approved by Eagle County, which introduces the fundamental responsibilities of home ownership, personal finance, and other concepts frequently encountered by homebuyers. Satisfactory service providers shall include those agencies approved by EAGLE COlJNTY. e. Purchase Contract - Borrower, or their agent, shall provide a copy of the executed purchase contract and all amendments to verify purchase price, property description, and all applicable performance dates. Referral source and/or borrower shall be notified immediately if LSA is unable to meet any specified performance dates. F:\i\i1y Documents\DP A \Eagle County Fund RLP .doc 5 - f. Felony Investigation - EAGLE COUNTY reserves the right to require felony, identity verification or other background screening qualifications as a precondition of funding. LSA shall obtain required authorizations and order such reports prior to loan approvaL g. Title Connnitment - LSA shall request a copy of the Title Connnitment issued by the closing agent engaged by the property seller. Such connnitment shall identify all liens, encumbrances, easements and exceptions to the title coverage. LSA shall verify the EAGLE COUNTY security interest will not be compromised by such limitations, or that adequate endorsements will be issued to protect the interest. LSA shall also verify the correct legal description of the subject property when preparing the loan documents. Leasehold purchases shall be considered according to specific terms of the individual application, whereby LSA shall forward a recommendation to Staff for final determination. h. Good Faith Estimate - LSA shall obtain a copy of the lenders' Good Faith Estimate of Settlement Costs to verify borrower funds needed to close and provide greater comfort for the type and terms of the 151 mortgage. The estimate shall reflect the correct purchase price for the subject property. LSA shall advise the referral source if the mortgage type is incompatible with the EAGLE COUNTY program or if the terms indicate predatory lending practices or terms that create unreasonable financial burden to the borrower. 2. Underwriting Analysis - Qualification for the program shall be evaluated against minimum debt capacity standards and target market thresholds, and incorporating credit and property risk factors. Exceptions to these standards may only be allowed as noted below, according to LSA or Staff assessment of verified hardship conditions of the borrower and subject to all other program limitations. Hardships may include, but are not limited to, medical conditions or related expenses, financial support of minors or other related individuals, availability of suitable housing, and extraordinary work-related expenses. EAGLE COUNTY is an equal opportunity lender and shall not permit factors of race, color, religion, gender, handicap, family status or national origin as criteria for underwriting purposes. UndenvTiting and funding the program will entaiL a. Eligibility Requirements The borrower must intend to use the unit as his/her primary residence and maintain it as his/her primary residence in the future. The borrower must be employed at a business located within Eagle County, working an average of 30 hours each week on an annual basis OR the borrower must demonstrate that at least 75% of his/her income and earnings are earned by working in Eagle County. A retired individual, sixty years or older, who has worked a minimum of five years in Eagle County for an average of thirty hours per week on an annual basis may also satisfy employment requirements. b. Income Qualification - Borrower's gross annual income must be at, or below, 100% of A1\1I as established by HUD annually for the number of household members. Income shall be calculated according to the method described below. Income from other sources may be used if it is court-ordered, or documented by an award letter from the source (i.e. Social Security, pension, insurance, etc.) and likely to continue for a period not less than 24 months from the date of closing. . For W2 employees, income shall be calculated from the most recent pay stub, dividing the year-to- date regular income amount by the number of pay periods reflected. The resulting figure shall be multiplied by the number of pay periods per month to determine monthly income. Overtime, bonuses, holiday pay, etc. shall not be used unless borrower has received such pay for at least 2 years from the current employer, can be supported by tax return income amounts and has been verified in 'Writing from the employer of its strong likelihood to continue. . Non-taxable income sources (Social Security, etc.) shall be adjusted to reflect an approximate gross wage equivalent, or "grossed up" by 1.3% to demonstrate effective income of such source. . For self-employed borrowers and employees receiving connnission income, income verification using two years' tax returns shall be calculated using Net Profit from Schedule C, then adding back any claims for depreciation, depletion or business use of home. This adjusted profit figure shall be added to the Net Profit figure shown on the year-to-date P&L and divided by the number of months F:\1\ily Documents\DP A\Eagle County Fund RLP.doc 6 - included in the calculation to determine monthly income. (i.e. two years' return, plus six months' P&L, equal thirty months total.) . If the borrower owns a business not shown on Schedule C, income shall be determined using tax returns for the business and year-to-date P&L. Income shall be calculated using any distributions to owners (pro rata if not otherwise specified), plus retained earnings (pro rata) and divided by the number of months reflected (as above). c. Debt Ratio - As a result of the proposed mortgage, borrower's total contractual or court-ordered debts, initial principal, interest, property taxes, hazard insurance, mortgage insurance and homeowner association dues shall not exceed 50% of gross monthly income. If a borrower's debt ratio exceeds 50% and the borrower or borrower's representative seeks an exception to this policy, LSA may request the credit score used by the first mortgage lender. If the borrower's credit score exceeds 680, then Staff may grant an exception. Payroll deductions for taxes, local employment assessments, social security, Medicare, insurance, retirement, or other benefit-related deductions shall not be counted against borrower's income. Contractual obligations shall include credit card illlllimum monthly payment (3% of account balance if not verified by current statement or credit report), bank: loans or lines of credit, consumer finance loans, deferred payment accounts (same-as-cash contract payment estimated at 3% of account balance unless otherwise documented), personal property rental contracts, student loans, loans against employer retirement account, payments for income taxes owed, or other installment obligations. Court-ordered payments shall include garnishment of wages, child support, separate maintenance, alimony, bankruptcy or civil judgment. Monthly obligations may not be considered if it is an installment loan or court-ordered obligation with less than ten (10) regularly scheduled payments remaining for settlement in full. Revolving or open credit with an outstanding balance shall always be counted. Other discretionary obligations (auto insurance, utilities, rent, etc.) shall not be considered contractual obligations. d. Collateral - Program loans are to be secured by a Deed of Trust on the property to be purchased, not to exceed 105% of the appraised market value or purchase price, whichever is less. Subordinations after loan closing shall not be permitted. e. Purchase Price - Maximum purchase price limitations shall be based upon the most recently published FHA maximum loan amount for EAGLE COUNTY. f. Loan Amount - Maximum loan amount shall be equal to 5% of the contractual purchase price of the home, or $10,000, whichever is less, or as otherwise limited by conditions of the primary mortgage loan, or as amended. (] Borrower - All parties taking ownership interest in the subject property must be obligated on the "" EAGLE COUNTY Promissory Note and Deed of Trust and constitute natural individuals. Legal entities are not eligible under this program. All borrowers must be of legal age and provide a valid Social Security Number. h. Minimum Investment - Borrower shall be required to invest a minimum of $3,000 of their own funds in the purchase of the new home. Earnest Money deposit and pre-paid expenses to the lender to obtain fmancing shall be counted toward this requirement. Closing cost credits obtained through premium pricing of the 151 mortgage, or seller concessions shall not satisfy this requirement. 1.. Although asset verification is not required, borrower must demonstrate within the loan application detail that the current value of all assets held does not exceed 150% of household income. Retirements accounts totaling less than $100,000 will not be considered as a household asset. F: 1.J.\1 y Documents\D P A \Eagle County Fund RLP .doc 7 Under no circumstance shall the borrower receive cash back at closing regardless of other prepaid expenses or deposits made to other parties. J. Consistency - All documentation used to underwrite a loan file shall be accurate and consistent with all other documentation within the file. 3. Loan Approval- LSA shall have authorization to approve applications that meet EAGLE COlJNTY program objectives and target market definitions, limited by loan amounts noted below and not otherwise limited by geographic constraints of EAGLE COUNTY service areas. LSA shall request a formal underwriting decision from Staff if an application does not meet all such criteria. Loan applications that are declined or withdrawn shall be retained on file for period of two (2) years from the application date. a. Loan amount not to exceed $ 10,000 or as amended. b. Assistance not to exceed 5% of purchase price or as amended. 4. Loan Funding - At such point that all undenvTiting conditions have been satisfied and in accordance with timing requirements of performance contracts, LSA will provide to borrower, through the referral source, a written detail of any conditions or documents necessary prior to executing the promissory note. To the extent possible, referral source shall be provided copies of all documents to be executed at loan closing in advance for their review with borrower. The agent presenting the final loan documents shall assume responsibility for satisfying such requirements prior to issuing loan funds to any party. All multi-page documents shall bear the initial( s) of all borrowers at the bottom of each page of the document, except where signature( s) are required, All persons taking title to the property, as listed on the Warranty Deed, must also be obligated on the Promissory Note and pledge their interest in the security through the Deed of Trust. The loan package must include the following: a. HUD 1 Settlement Statement - Prepared by the closing agent engaged by the parties, LSA shall request a copy in advance of closing to review for completeness and accuracy of all entries. EAGLE COUNTY /LSA shall be listed as subordinate lender for the correct loan amount, with all applicable loan fees listed by category. The file copy shall have signatures of all parties to the transaction. b. Promissory Note LSA shall prepare and review for accuracy a Promissory Note to be executed by borrower at loan closing. The terms of the approved loan shall be accurately reflected on the appropriate Note form. c. Deed of Trust - LSA shall prepare and review for accuracy a Deed of Trust that shows terms as an exact match of the Promissory Note. The closing agent engaged by parties to the transaction shall be employed to notarize and record the executed document with the appropriate agency. If applicable, all necessary riders to the Deed of Trust will be prepared and executed in a similar manner. d Federal Truth In Lending Notice - LSA shall prepare applicable disclosures of EAGLE COT..JNTY loan terms and sample calculations, submitted as part of the final loan package. e. Loan Proceeds Prior to the scheduled loan closing, LSA shall set up a wire transfer to the bank ac;count of the closing agent engaged by parties to the transaction equal to the loan amount EAGLE COUNTY shall retain the right to verify all such transfers prior to execution of the order. f. When loans are made from the Eagle County Fund, EAGLE COUNTY may require LSA to request payment from the Eagle County Housing Department This request may be made at the time of commitment accompanied by a copy of the commitment letter or LSA may choose to request payment after closing by submitting a copy of the Deed of Trust 5. Post Closing Procedures - Within a reasonable time period of loan closing, LSA must conduct a complete review of the loan file to insure all documents are correct, complete, and secured in the permanent loan file. The live note shall be placed in safe deposit with a fmancial institution, while the F:\My Documents\DP A \Eagle County Fund RLP .doc 8 - recorded Deed of Trust shall be securely maintained in the file. LSA shall forward to EAGLE COUNTY a copy of the Deed of Trust. Additionally, LSA will assume responsibility for monitoring: a. Receipt of recorded documents - Within 90 days of loan closing, LSA should be in receipt of all recorded documents. If not received, LSA will contact the appropriate public office to determine if the instrument has been received, recorded, or subject to processing delays. If recording has been delayed, an appropriate follow up period will be established. If recorded more than 15 business days prior, LSA shall request the agency perform a document search and report their findings within lO days of such request. If not received within such time, LSA shall request a certified copy of the document and forwarded by registered delivery from recording agency. If the document has not been received by the public agency within 60 days, LSA shall contact the closing agent to request a document search. Closing agent shall be instructed to provide gap coverage under the title insurance policy, obtain new signatures on replacement documents, if necessary, and record the document at the earliest possibility. b. Loan Registration - Upon execution of the loan, LSA shall enter tlle new loan into the tracking system and establish follow-up dates for annual review, hazard insurance renewal and maturity notification. c. Loan Servicing - LSA shall maintain accurate and complete records of all payments and charges associated with each loan file and correctly invoice for all outstanding loans on a monthly basis. As borrower payments are received, payment shall be applied to accrued interest first, any late fees or returned item charges, then principal reduction of the loan. To the extent possible all borrower invoices shall include detail of the most recently applied payment and subsequent affect to the principal balance. LSA reserves the right to retain all late fees, returned item charges and collection fees recovered from borrower to offset resulting service costs. III. PROGRA..1VI PARAMETERS & UNDER\\1UTING MATRIX 1. Program Parameters - Exceptions to program descriptions may be allowed according to Undenvriting Matrix Description Target Market Borrower Households earning 100%, or less, of the AMI as established by HUD annually and adjusted for family size, Loan Amount Up to $10,000 or 5% of purchase price, whichever is less, or as amended. Use of Funds Down payment, closing costs and prepaid items directly attributed to the primary mortgage. Service Areas Eagle County plus three miles Term Option A: 30 years; fully-amortizing payments to include principal and interest. The loan will become immediately due upon sale, transfer, refinance, when the house is no longer the primary residence or upon the death of the buyer. Option B: 30 years. The loan will become immediately due upon sale, transfer, refinance, when the house is no longer the primary residence or upon the death of the buver Loan Fees As negotiated with LSA F:\My Documents\DPA\Eagle County Fund RLP.doc 9 .- Collateral Real Property; junior lien Cost Recovery Third party service fees to be paid by borrower Fees Rates Option A: Fixed at 2.5% or as amended. Option B: Variable:!" two years fixed at 3%, adjusts according to appreciation thereafter. (see Section IV, paragraph 3). IV. PORTFOLIO MANAGEJ\lENT 1. Reporting, Risk and Compliance Review - LSA shall conduct ongoing review of outstanding loans to establish compliance with loan provisions. LSA shall prepare and present to Staff the following monthly reports a. Comprehensive Report - A complete accounting of all outstanding loans which details borrower name, family size, 1\1\111 percentage, loan amount, parental status, date of the loan, ethnicity, property address, and occupation. Total loans funded and available capital, if appropriate, shall also appear. b. Summary Report - A composite accounting of total program capital, funds invested, principal and interest recapture, loan loss, and aggregate loan characteristics 2. Risk Rating and Loan Loss Reserves - According to the assigned risk rating, EAGLE COlJNTY may elect to maintain a loss reserve (expressed as a percentage of the loan amount) against available loan capital that reflects a reasonable assumption of loss. Reserve provisions may be re-evaluated from time to time to reflect the overall portfolio quality, historical losses and delinquency rates.. 2. Loan Repayment - -Wnen loan application is made, borrowers will have a choice of loan repayment plans. Option A - Monthly Payments: Borrowers shall make monthly payments of principal and interest to fully amortize the outstanding loan within the established loan term. LSA shall be allowed to assess late charges against any payment that is received more than 15 days after the due date, not to exceed $10 per incident If it is determined that borrower is not in compliance with any of terms or conditions of the Note or Deed of Trust, borrower shall be instructed in writing to submit payment in full of outstanding principal and interest within thirty (30) days of the notice. There is no prepayment penalty Option B- Property Appreciation Model: Borrowers shall not be required to make interim payments of principal or interest, deferring all such payments to loan maturity or early payment in fulL There is no prepayment penalty. The first two years of the loan, interest shall be fixed at 3% simple interest. Thereafter, the applied simple interest rate will be based on the appreciation of the home. Appreciation will be computed using the number of days the loan is outstanding. The applied simple interest rate is calculated as follows: New Value of Home - Original Purchase Price (OP) = Accrued Appreciation (AA) AA / OP = Gross Appreciation (GA) GA / Days Loan Outstanding = Daily Appreciation (DA) DA X 365 = Average Annual Appreciation (AAA) AAA = Applied Simple Interest Rate, subject to rate caps. F:\ivIy Documents\DP N~agle County Fund RLP.doc 10 The amount owed is best explained by example: Example: A family purchases a $100,000 home. They borrow $5,000 from this program to cover the down payment. Assume they want to sell the home in 4 years, and at that time it appraises for $120,000. By signing the contract for this loan, the borrower will be obligated to repay according to the calculations below. 1. Principal or Loan Amount: $5,000 2. Percent Appreciation: 20% 3. Avg. Annual Appreciation or Adjustable Interest Rate: 5% (20% appreciation on 4 yr. or 1,460 day loan) 4. Interest Due: a. Fixed Interest in Years 1 & 2: $ 300 $5,000 X 3% X 2 years (2 years =730 days / 365 days) b. Adjustable Interest in Years 3 & 4: $ 500 $5,000 X 5% X 2 years (2 years =730 days / 365 days) 5. Repayment: a. Principal $5,000 b. Fixed Interest in Years 1 & 2 300 c. Adjustable Interest in Years 3 & 4 + 500 $5,800 Total Repayment Maximum and Minimum Loan Rate for Option B: The interest rate will never be less than a simple interest rate of 3% or more than 11.5%. In the event that a triggering event occurs (i.e., sale, refinance, transfer, or the house is no longer used as the primary residence) and there is no appreciation in the property or the property depreciates, the minimum loan rate will apply. 4. Delinquency - In all cases, payment of principal and interest are due no later than the close of business on the date specified within the loan documents, or by the date shown on the demand for payment noted in Part 3 above. Borrower shall be given a grace period of 15 days to make payment without penalty for regularly scheduled monthly payments. After such time, the loan shall be considered in default, with appropriate action taken to remedy the loan. Until the point when payment is sixty (60) days past due, LSA shall retain the ability to make all satisfactory arrangements for payment, including waiver of any penalties where appropriate. The following procedures shall be taken in cases of default: a. 30 days past due - A late payment notice is mailed to the borrower, reflecting the amount due, date of default and request for immediate payment. b. 45 days past due - A second notice shall be mailed to borrower advising of past due status and possible corrective actions available to lender. c. 60 days past due - Delinquent Notice is mailed, followed by phone contact with the borrower to make payment arrangements and address any outstanding concems. d. 75 days past due LSA shall complete a full report that details the nature of all contact with borrower, any outstanding concerns of the borrower, and results of all discussions with borrower, its representatives and/or counsel. The report shall be submitted to Staff. e. 90 days past due LSA shall consult Staff and its legal representation of collection options, which may include, but not limited to, issuance of Notice of Right to Cure. Staff shall make recommendations prior to further action. F: \My Documents\DP A \Eagle County Fund RLP .doc 11 - f. 120 days past due - Staff shall recommend further action strategy to LSA, which may include form and tone of further communication with borrower and/or its legal counsel, loan restructure, sale of the loan or foreclosure on security interest. 5. Foreclosure - As the recourse of last resort, Staff shall direct all further collection activity. Prior to any formal action, a Notice of Right to Cure, an attorney demand letter for payment and personal meeting with borrower and their legal counsel, if applicable, shall be complete and documented in the bon-ower's file. OccasionaIIy, a deed-in-lieu oftoreclosure may be accepted. In some instances, foreclosure may be a better option. a. Where foreclosure, or deed-in-lieu of, becomes a formal action, every effort shall be pursued to factor the mortgage and security interest to a third party. It is not within the scope of either LSA or EAGLE COUNTY nor in the best interest of public relations to take a property to sale or assume oW1lership of loan collateral. b. If LSA is in receipt of a Notice to Foreclose through the action of the prior lien holder, or Notice of Tax Sale initiated by the County Treasurer's office, Staff shall conduct a fuII review of the loan file for completeness and accuracy, noting any deficiencies that may affect ability to recover losses. To the extent possible, remedies shaII be implemented and documented in the file. Recognizing that, in many cases, EAGLE COUNTY loans have limited security and provide little financial incentive to redeem listed deficiencies to preserve the EAGLE COUNTY security interest. LSA shall monitor such situations and report status to Staff as dictated by such developments. c. LSA shall retain authority to take appropriate action and request input from Staff to possibly allow redemption while preserving deed restrictions. 6. Bankruptcy - Upon receipt of a notice of bankruptcy petition, all direct collection efforts with the borrower wiII cease, with EAGLE COUNTY legal counsel engaged to direct further procedure. LSA shall collect and review all relevant documentation and advise Staff of possible action to preserve the security interest of EAGLE COlJNTY. V. Dispute Resolution Process Informal Hearing The loan applicant wiII have the right to an informal hearing at the loan applicant's request to resolve any disputes or appeals concerning the program. The procedure for dispute resolution will be provided to each loan applicant as outlined in Section I, Part 2 (d). The loan applicant may request a hearing for dispute resolution by contacting the Eagle County Housing Department. The Director of Housing will select three members of the HBAC to function as Hearing Officers and hear any disputes or appeals. The Hearing Officers will have a good understanding of the basics of the Down Payment Assistance Program and will have no bias, personal or professional interest concerning the dispute. Staff will be present at the hearing. Hearing Officers The Hearing Officers wiII be responsible for conducting the hearing in accordance with the following guidelines: . The loan applicant or the loan applicant's representative will first be given an opportunity to present his/her issues regarding the dispute. The loan applicant may present evidence or question witnesses at this time. . The housing organization's representative wiII then have an opportunity to explain their decision or point of view regarding the issue at hand. The representative may present F:\My Documents\DP A'cEagle County Fund RLP.doc 12 - evidence and question witnesses. The loan applicant 'Nill have the opportunity to question any agency witnesses at this time also. . The Hearing Officers will issue a mitten decision within 10 business days of the Informal Hearing. Factual decisions related to the individual circumstances of the loan application will be based on the evidence presented at the hearing. A copy of the hearing decision will be sent certified mail to the loan applicant. The 'NTitten decision will contain a summary of the decision and the reasons for the decision. Loan Applicant Has the Right To: . Examine and copy (at the homeowner's expense) relevant documents before the Informal Hearing . Present any or all information pertinent to the issue of the Informal Hearing Housing Organization Has the Right To: . Present evidence and all or any information pertinent to the issue of the Informal Hearing; . Examine relevant homeo'Nner documents before the Informal Hearing . Be notified if the homeowner intends to be represented by legal counselor another party . Have its attorney present; and . Have the staff person familiar with the case present. F:uvIy Documents\DPA\Eagle County Fund RLP.doc 13 Eagle County COOH Revolving Loan Policies PREFACE The purpose of this document is to provide a framework for managing a revolving loan fund created with a grant through the Colorado Division of Housing to EAGLE COlJNTY. The EAGLE COUNTY loan program provides equal opportunity for all qualified participants, where factors of race, color, religion, gender, handicap, family status or national origin are expressly prohibited from consideration in the analysis of loan applications. As written herein, "policies and procedures" should be interpreted as a framework for decision-making, creating a standard for lending functions of the organization. Policy statements are an expression of the Board of County Commissioners, serving as clear directive to EAGLE COUNTY's management, Staffand loan servicing agent who are, in turn, charged with developing operating guidelines and procedures consistent with those stated directions. It is the intent and expectation of the Board of County Commissioners that the following policies and procedures may be altered, added to, or deleted to reflect the changing needs of the organization. EAGLE COUNTY Staff acknowledges that these policies are not designed to be inflexible rules to which all cases are expected to conform. Rather, they represent standards to which most cases are expected to conform, but from which deviation is permitted if good reasons exist for such deviation. If a borrower should disagree with a decision made by EAGLE COUNTY or its representative, borrower may appeal the decision following the process outlined in Section V. Eagle County's interest in developing standards of efficiency dictate the use of lending policies, but EAGLE COT:JNTY recognizes the inherent limitations. With the exception of specific policy parameters which state that deviation is not allowed (i.e. "must"), the policies contained herein should not be applied rigidly. In all cases, policies and procedures shall not be used as a substitute for sound credit judgment. Finally, this document shall be reviewed periodically to reflect changes in EAGLE COIJNTY's lending activities, portfolio growth, and other factors that may affect the nature and assessment of risk. F:\ivIy Documents\DOH\CDOH Revolving Loan Policies. doc - 1 - - I. ROLE OF STAFF AL~D LOAL~ SER\-'lCING AGENT 1. Management and Staff -The Director of Housing and all other employed Staff of Eagle County shall be collectively referred to as "Staff'. A third party Loan Servicing Agent (LSA) will be engaged to implement and service lending activities on behalf of EAGLE COlJNTY. As stipulated in the governing documents of the organization, EAGLE COUNTY Board of County Commissioners shall retain ultimate authority and oversight of all lending activities: a. Within Eagle County and its surrounds, reputable mortgage and other real estate professionals will be engaged to originate loan applications on behalf of EAGLE COUNTY and homebuyers who meet established income thresholds and other pertinent criteria under program guidelines. b. Oversee implementation of adopted Policies and Procedures and conduct periodic reviews of LSA activities and performance according to established goals. Make appropriate recommendations to LSA for further action, if necessary. c. After receipt of loan application and supporting documentation listed in Section II., LSA shall review documentation provided, verify Borrower's eligibility under program guidelines and forward to Eagle County Staff a loan summary sheet demonstrating that the borrower has met all program guidelines and / or detailing policy exceptions. Eagle County Staff will approve or deny the loan based on LSA's analysis of the borrower's eligibility under program guidelines. After review by Staff, LSA shall then issue a loan commitment letter, decline the application, request further information, or forward a recommendation to Staff as identified in Section II. d. Receive LSA recommendations and supporting analysis of any loan request outside policy parameters, as set forth in Section II. EAGLE C01JNTY Staff and/or the Horne Buyer's Assistance Committee will provide an underwriting decision and set terms accordingly. e. Monthly review of Loan Activity Report, or more frequently in situations where delinquency, loss, or loan activity warrant Staff input. f. Establish priorities related to lending activity and consistency of such activity to the mission of Eagle County. 2. Loan Servicing Agent (LSA) - The LSA will function as an agent of EAGLE COUNTY and implement lending programs according to established policies and procedures. Under no circumstances shall LSA operate outside its stated authority, nor obligate EAGLE COUNTY to any transactions that compromise the integrity of the organization or its loan programs without the duly authorized written consent of EAGLE COUNTY. LSA shall not engage in any practice that unduly favors itself or other outside parties to the detriment of EAGLE COUNTY or its loan portfolio without duly authorized written consent of EAGLE COUNTY. LSA shall implement all lending activity, including: a. Review and recommend modifications of the EAGLE COUNTY Loan Policies and Procedures to Staff for consideration and approval as deemed appropriate. Staff will provide valuable input in this process. b. Referral sources will collect and review applicant data for qualification under the program, assist borrower in completing all underwriting and funding requirements, facilitate the purchase transaction, and provide any post-closing assistance necessary to maintain portfolio integrity. Completed loan applications shall be sent directly to Loan Servicing Agent for underwriting. c. After receipt of loan application and supporting documentation listed in Section II., LSA shall review documentation provided, verify Borrower's eligibility under program guidelines and forward to Eagle County Staff a loan summary sheet demonstrating that the borrower has met all program guidelines and / or detailing policy exceptions. Eagle County Staff will approve or deny the loan based on LSA's analysis of the borrower's eligibility under program guidelines. After review by Staff, LSA shall then issue a loan commitment letter, decline the application, request further information, or forward a recommendation to Staff as identified in Section II. F:uvfy Documents\DOH\CDOH Revolving Loan Policies. doc 2 d. Within a reasonable time period folloVv1ng an underwriting decision, LSA will advise the borrower, through the referral source, of the action. If approved, the notification will include all terms, conditions and supporting documentation necessary to fulfill the loan commitment. The commitment shall be extended for a period equal to the time commitment of the primary loan. If the loan is declined, applicant will be advised of the reasons for the decision and any recommendations for further consideration, if appropriate. Applicant will also be advised of dispute and appeal procedures as stated in Section V. e. Based upon a favorable underwTiting decision, a loan file must contain satisfactory documentation detailed in Section II prior to funding the loan. LSA will coordinate with all parties to the transaction to facilitate timely execution of the transaction. f. LSA will prepare and review all loan documents, including settlement statement, for accuracy, as well as setup wire transfer or obtain certified funds in the exact amount of the approved loan. All loan closing fees shall be a charge to borrower at the time of settlement. g. A mortgage banker or lender of the referral source, or their representative, shall attend closing and present final loan documents. LSA may elect to provide alternative arrangements for loan presentation at its discretion. The closing agent to the transaction will be engaged to notarize and record the Deed of Trust with the appropriate agency, and collect any documentation required from borrower or referral source to complete the loan file, according to the Closing Instruction form provided with the loan package. The agency shall be instructed to return the recorded instrument to LSA. Closing agent shall be instructed to return the executed loan package to LSA within 48 hours of final settlement. h. LSA shall maintain all executed documents in a secure manner, where the Promissory Note is stored in Safe Deposit with a financial institution deemed most appropriate by LSA. LSA will follow-up with the agency if the original recorded document is not received within a reasonable period of time. All executed loan documents will be stored electronically or similar method, to achieve redundancy. 1- Within 15 business days of closing, LSA will conduct a post-closing audit of loan files to verify accuracy and presence of all necessary documentation. Immediate action will be taken to correct any findings. J. LSA will monitor compliance with all loan provisions and advise Borrower in writing and/or by telephone of any non-compliance issues. If, in the opinion of LSA, non-compliance is of a material nature, Staff will be advised of the situation in a manner deemed most appropriate. LSA will provide sufficient detail and recommend a course of action for consideration by Staff. k. LSA will assess and advise Staff of any outstanding loans that are at risk of non-performance, with all appropriate action pursued. 1. When a request for loan payoff is received, LSA will complete and deliver a Payoff Statement within a reasonable time period. Particular care will be given to the completeness and accuracy of all figures. m. LSA shall invoice for and accept all monthly loan payments from borrowers according to the terms and conditions of the Note. Within 15 days of the close of each calendar month, LSA shall forward proceeds of such payments as well as proceeds from loan payoffs, to EAGLE COUNTY or a financial institution authorized by EAGLE COlJNTY to receive such payments. Such payments shall include a detailed accounting of principal, interest and other charges received by LSA and corresponding application to bOlTower accounts. n. Acceptable forms of payment from the bOlTower will include certified funds, money order or personal check. Any other form must have prior agreement from Staff. BOlTowers' account will be F:\My Documents\DOH\CDOH Revolving Loan Policies.doc 3 credited as of the date of receipt of payment. In cases of returned items, LSA shall process a reverse entry of the affected borrower payment, assess the appropriate late payment charge and returned item charge equal to the charge imposed by LSA's financial institution and re-invoice the borrower with appropriate advisement of the loan status and itemized detail of charges included. o. Within a reasonable period of time, not to exceed 90 days, of receipt of acceptable final payment of the loan obligation, LSA will prepare, execute and deliver a Release of Deed of Trust to the appropriate jurisdiction agency. The original recorded Release shall be returned to LSA and retained in a secure marmer. Copies of all documents shall be retained in the Borrowers' permanent file, with original note marked as "Paid", initialed and dated by a LSA representative and forwarded to the Borrower, or Public Trustee as appropriate. p. LSA will follow-up with the appropriate agency(s) if the recorded Release document is not received within a reasonable period of time. 2. ROLE OF HOMEBUYER'S ASSISTA1~CE COJ\11\IITTEE\ The Homebuyer's Assistance Committee (HBAC) was formed by the EAGLE COUNTY Board of County Commissioners to provide recommendations to the Board on mortgage assistance policies and procedures. The HBAC will schedule meetings at least every other month, or more frequently as dictated by loan activity and membership availability. To accommodate urgent responses, items may be considered by the committee via fax, telephone, and/or emaiL Such alternate polling is subject to the provisions identified below. HBAC will be comprised of a l11l111mUm of ten members appointed by the Board of County Commissioners for specific terms. The HBAC will include members from all parts of Eagle County. The members will represent diversified interests and expertise within Eagle County. Membership will include, but not be limited to, members representing the banking and mortgage group, the real estate group, citizen advocacy groups, as well as low/moderate income citizens group. A simple majority of the membership shall be present at meetings to constitute a quorum for formal action. Such action shall include recommendations on loan decisions, remands or other recommendations to the Board of County Commissioners for further consideration. The Director of Housing and Staff will oversee LSA lending activity through the advisement of the HBAC including: a. Review and recommend modifications of loan policies and procedures to the Board of County Commissioners for approval as deemed appropriate. Staff will participate in this process. b. Review and approval of all loan applications. c. Determination of loan terms. for each proposed loan. d. Approval of solutions for problem loans. e. Decisions regarding exceptions to established policies. f. In the case of appeal or dispute resolution, a sub-committee of HBAC members will serve as Hearing Officers. At a minimum, the HBAC will review annually the Staff decisions made regarding applicant selection, loan terms, problem loans and foreclosures. II. DOCUMENTATION AND UNDERWRITING CRITERIA 1. Documentation Requirements - Loan applicants shall be required to provide sufficient documentation that verifies their eligibility under EAGLE COUNTY program guidelines, capacity to assume the mortgage liability and a formal introduction to the responsibilities of home ownership through home buyer education. F:\i\1y Documents\DOH\CDOH Revolving Loan Policies. doc 4 - Delivery of loan documents and loan funding shall be the responsibility of LSA, subject to timely submission of required application documentation and capacity of LSA resources. LSA shall review documentation submitted by the referral source and either approve the application, request further information, forward a recommendation to Staft~ or decline the application. LSA shall issue a final detennination in writing to the bOlTower within a reasonable period of time, specifying the approved loan amount and any documentation requirements prior to loan funding. For expediency, the letter may be faxed to the referral source and shared with the borrower. A complete loan file must include: a. Application Borrower shall complete, sign and date the LSA loan application and submit other required documents with the understanding that LSA retains the right to verify the accuracy of all information provided. b. Income Verification - Borrower shall provide payroll statements for the most recent thirty (30) day period and signed federal tax returns for the most recent tax year. If borrower shows income from a business not listed on Schedule C of the return, the complete and signed copy of the business return will be required for the corresponding period. Borrowers who are self-employed, or an employee receiving commission income, tax returns for the most recent two-year period and a year-to-date profit & loss statement (P&L), signed and dated by borrower, shall be required. A P&L form may be produced with assistance of the referral source, based upon information provided by borrower. (Note: if borrower filed an extension of the most recent years' return, a year-end profit and loss statement, copy of the extension and the two previous years' returns shall be required.) If payToll statements are unavailable, referral source shall provide a written statement from the borrower's supervisor or human resource manager that specifies borrower's wage scale, number of regularly scheduled hours, additional income (overtime, holiday pay, etc.) and the likelihood of its continuance, as well as any relevant changes to the borrower's employment status. EAGLE COUNTY reserves the right to require a minimum number of hours worked by all, or at least one, borrower within EAGLE COUNTY loan service areas. Additionally, EAGLE COUNTY may establish a minimum threshold for length of employment within said service areas and/or number of hours worked over a set time period in order to qualify under this loan program. c. Qualification Letter - Borrower shall be required to obtain loan approval for the l5t mortgage from a reputable lender and authorize the lender to issue an approval letter that specifies the terms and conditions of the mortgage, though there shall be no requirement to use any particular lender. Staff shall be cognizant of lender terms and conditions that may indicate unfair business practices or terms, which may create unreasonable financial burden to the borrower. A listing of all qualified and reputable lenders/mortgage brokers shall be compiled by LSA and made available to Staff. d. Home Ownership Training - Borrower shall be required to attend and complete a qualified training program that introduces the fundamental responsibilities of home ownership, personal finance, and other concepts frequently encountered by home buyers. Satisfactory service providers shall include those agencies approved by EAGLE COlTNTY. e. Purchase Contract - Borrower, or their agent, shall provide a copy of the executed purchase contract and all amendments to verify purchase price, property description, and all applicable performance dates. Referral source and/or borrower shall be notified immediately if LSA is unable to meet any specified performance dates. f. Felony Investigation - EAGLE COUNTY reserves the right to require felony, identity verification or other background screening qualifications as a precondition of funding. LSA shall obtain required authorizations and order such reports prior to loan approval. g. Title Commitment - LSA shall request a copy of the Title Commitment issued by the closing agent engaged by the property seller. Such commitment shall identify all liens, encumbrances, easements and F:\My Documents\DOH\CDOH Revolving Loan Policies. doc 5 ~ exceptions to the title coverage. LSA shall verify the EAGLE COlJNTY security interest will not be compromised by such limitations, or that adequate endorsements will be issued to protect the interest. LSA shall also verify the correct legal description of the subject property when preparing the loan documents. Leasehold purchases shall be considered according to specific terms of the individual application, whereby LSA shall forward a recommendation to Staff for final determination. h. Good Faith Estimate - LSA shall obtain a copy of the lenders' Good Faith Estimate of Settlement Costs to verify borrower funds needed to close and provide greater comfort for the type and terms of the 15t mortgage. The estimate shall reflect the correct purchase price for the subject property. LSA shall advise the referral source if the mortgage type is incompatible with the EAGLE C01JNTY program or if the terms indicate predatory lending practices or terms that create unreasonable financial burden to the borrower. 2. Underwriting Analysis - Qualification for the program shall be evaluated against minimum debt capacity standards and target market thresholds, and incorporating credit and property risk factors. Exceptions to these standards may only be allowed as noted below, according to LSA or Staff assessment of verified hardship conditions of the borrower and subject to all other geographic program limitations. Hardships may include, but are not limited to, medical conditions or related expenses, financial support of minors or other related individuals, availability of suitable housing, and extraordinary work-related expenses. EAGLE COUNTY is an equal opportunity lender and shall not permit factors of race, color, religion, gender, handicap, family status or national origin as criteria for under"WTiting purposes. Underwriting and funding the program will entail. a. Eligibility Requirements - The borrower must intend to use the unit as his/her primary residence and maintain it as his/her primary residence in the future. The borrower must be employed at a business located within Eagle County, working an average of 30 hours each week on an annual basis OR the borrower must demonstrate that at least 75% of his/her income and earnings are earned by working in Eagle County. A retired individual, sixty years or older, who has worked a minimum of five years in Eagle County for an average of thirty hours per week on an annual basis may also satisfy employment requirements. b. Income Qualification - Borrower's gross annual income must be at, or below, 80% of AMI as established by BUD annually for the number of household members or as specified in the CDOB contract. Income shall be calculated according to the method described below. Income from other sources may be used ifit is court-ordered, or documented by an award letter from the source (i.e. Social Security, pension, insurance, etc.) and likely to continue for a period not less than 24 months from the date of closing. . For W2 employees, income shall be calculated from the most recent pay stub, dividing the year-to- date regular income amount by the number of pay periods reflected. The resulting figure shall be multiplied by the number of pay periods per month to determine monthly income. Overtime, bonuses, holiday pay, etc. shall not be used unless borrower has received such pay for at least 2 years from the current employer, can be supported by tax return income amounts and has been verified in writing from the employer of its strong likelihood to continue. . Non-taxable income sources (Social Security, etc.) shall be adjusted to reflect an approximate gross wage equivalent, or "grossed up" by 1.3% to demonstrate effective income of such source. . For self-employed borrowers and employees receiving commission income, income verification using two years' tax returns shall be calculated using Net Profit from Schedule C, then adding back any claims for depreciation, depletion or business use of home. This adjusted profit figure shall be added to the Net Profit figure shown on the year-to-date P&L and divided by the number of months included in the calculation to determine monthly income. (i.e. two years' return, plus six months' P&L, equal thirty months total.) . If the borrower owns a business not sho"Wn on Schedule C, income shall be determined using tax returns for the business and year-to-date P&L. Income shall be calculated using any distributions to o\vners (pro rata if not otherwise specified), plus retained earnings (pro rata) and divided by the number of months reflected (as above). F:\1\1y Documents\DOH\CDOH Revolving Loan Policies.doc 6 -- c.. Debt Ratio - If the borrower's credit score is below 680, and as a result of the proposed mortgage, borrower's total contractual or court-ordered debts, initial principal, interest, property taxes, hazard insurance, mortgage insurance and homeo\Vner association dues shall not exceed 50% of gross monthly income. If a borrower's credit score exceeds 680, then no debt ratio will apply. Payroll deductions for taxes, local employment assessments, social security, Medicare, insurance, retirement, or other benefit-related deductions shall not be counted against borrower's income. Contractual obligations shall include credit card minimum monthly payment (3% of account balance if not verified by current statement or credit report), bank loans or lines of credit, consumer finance loans, deferred payment accounts (same-as-cash contract payment estimated at 3% of account balance unless otherwise documented), personal property rental contracts, student loans, loans against employer retirement account, payments for income taxes owed, or other installment obligations. Court-ordered payments shall include garnishment of wages, child support, separate maintenance, alimony, bankruptcy or civil judgment. Monthly obligations may not be considered if it is an installment loan or court-ordered obligation with less than ten (10) regularly scheduled payments remaining for settlement in full. Revolving or open credit with an outstanding balance shall always be counted. Other discretionary obligations (auto insurance, utilities, rent, etc.) shall not be considered contractual obligations. d. Collateral - Program loans are to be secured by a Deed of Trust on the property to be purchased, not to exceed 105% of the appraised market value or purchase price, whichever is less. Subordinations after loan closing shall not be permitted. e. Purchase Price - Maximum purchase price limitations shall be based upon the most recently published FHA maximum loan amount for EAGLE COUNTY. f. Loan Amount - Maximum loan amount shall be equal to 4.5% of the contractual purchase price of the home, or $11,700, whichever is less, or as otherwise limited by conditions of the primary mortgage loan or as amended. 0- Borrower - All parties taking ownership interest in the subject property must be obligated on the O' EAGLE COUNTY Promissory Note and Deed of Trust and constitute natural individuals. Legal entities are not eligible under this program. All borrowers must be of legal age and provide a valid Social Security Number. h. Minimum Investment - Borrower shall be required to invest a minimum of $1,000 of their own funds in the purchase of the new home. Earnest Money deposit and pre-paid expenses to the lender to obtain fmancing shall be counted toward this requirement. Closing cost credits obtained through premium pricing of the 1 st mortgage, or seller concessions shall not satisfy this requirement. 1.. Although asset verification is not required, borrower must demonstrate within the loan application detail that the current value of all assets held does not exceed 150% of household income. Retirements accounts totaling less than $100,000 will not be considered as a household asset. Under no circumstance shall the borrower receive cash back at closing regardless of other prepaid expenses or deposits made to other parties. J. First Time Home Buyer - The borrower or any member of the household will not have ov<med a residence within the previous three years. k. Consistency - All documentation used to underwrite a loan file shall be accurate and consistent with all other documentation within the file. F:\1'vIy Documents\DOH\CDOH Revolving Loan Policies. doc 7 3. Loan Approval- LSA shall have authorization to approve applications that meet EAGLE COl.JNTY program objectives and target market definitions, limited by loan amounts noted below and not otherwise limited by geographic constraints of EAGLE COUNTY service areas. LSA shall request a formal underwriting decision from Staff if an application does not meet all such criteria. Loan applications that are declined or withdrawn shall be retained on file for period of two (2) years from the application date. a. Loan amount not to exceed $ 11)00 or as amended. b. Assistance not to exceed 4.5% of purchase price or as amended. 4. Loan Funding - At such point that all underwriting conditions have been satisfied and in accordance with timing requirements of performance contracts, LSA will provide to borrower, through the referral source, a wTitten detail of any conditions or documents necessary prior to executing the promissory note. To the extent possible, refenal source shall be provided copies of all documents to be executed at loan closing in advance for their review with bonower. The agent presenting the final loan documents shall assume responsibility for satisfying such requirements prior to issuing loan funds to any party. All multi-page docwnents shall bear the initial( s) of all bonowers at the bottom of each page of the document, except where signature( s) are required. All persons taking title to the property, as listed on the Warranty Deed, must also be obligated on the Promissory Note and pledge their interest in the security through the Deed of Trust. The loan package must include the following: a. HUDl Settlement Statement - Prepared by the closing agent engaged by the parties, LSA shall request a copy in advance of closing to review for completeness and accuracy of all entries. EAGLE COlJNTY /LSA shall be listed as subordinate lender for the conect loan amount, with all applicable loan fees listed by category. The file copy shall have signatures of all parties to the transaction. b. Promissory Note - LSA shall prepare and review for accuracy a Promissory Note to be executed by borrower at loan closing. The terms of the approved loan shall be accurately reflected on the appropriate Note form. c. Deed of Trust - LSA shall prepare and review for accuracy a Deed of Trust that shows temlS as an exact match of the Promissory Note. The closing agent engaged by parties to the transaction shall be employed to notarize and record the executed document with the appropriate agency. If applicable, all necessary riders to the Deed of Trust will be prepared and executed in a similar manner. d. Federal Truth In Lending Notice - LSA shall prepare applicable disclosures of EAGLE COUNTY loan terms and samp Ie calculations, submitted as part of the final loan package. e. Loan Proceeds - Prior to the scheduled loan closing, LSA shall set up a wire transfer to the bank account of the closing agent engaged by parties to the transaction equal to the loan amount. EAGLE COUNTY shall retain the right to verify all such transfers prior to execution of the order 5. Post Closing Procedures - Within a reasonable time period of loan closing, LSA must conduct a complete review of the loan file to insure all documents are conect, complete, and secured in the permanent loan file. The live note shall be placed in safe deposit with a financial institution, while the recorded Deed of Trust shall be securely maintained in the file. LSA shall forward to EAGLE COlJNTY a copy of the Deed of Trust. Additionally, LSA will assume responsibility for monitoring: a. Receipt of recorded documents - Within 90 days of loan closing, LSA should be in receipt of all recorded documents. If not received, LSA will contact the appropriate public office to determine if the instrument has been received, recorded, or subject to processing delays. If recording has been delayed, an appropriate follow up period will be established. If recorded more than 15 business days prior, LSA shall request the agency perform a document search and report their findings within 10 days of such request. If not received within such time, LSA shall request a certified copy of the document and forwarded by registered delivery from recording agency. If the document has not been received by the public agency within 60 days, LSA shall contact the closing agent to request a document search. Closing agent shall be instructed to provide gap coverage under the title insurance policy, obtain new signatures on replacement documents, if necessary, and record the document at the earliest possibility. F:\Nly Documents\DOH\CDOH Revolving Loan Policies. doc 8 b. Loan Registration Upon execution of the loan, LSA shall enter the new loan into the tracking system and establish follow-up dates for annual review, hazard insurance renewal and maturity notification. c. Loan Servicing - LSA shall maintain accurate and complete records of all payments and charges associated with each loan file and correctly invoice for all outstanding loans on a monthly basis. As borrower payments are received, payment shall be applied to accrued interest first, any late fees or returned item charges, then principal reduction of the loan. To the extent possible all borrower invoices shall include detail of the most recently applied payment and subsequent affect to the principal balance. LSA reserves the right to retain all late fees, returned item charges and collection fees recovered from borrower to offset resulting service costs. III. PROGRAlVI PARAL\iIETERS & UNDERWRITING MATRIX 1. Program Parameters - Exceptions to program descriptions may be allowed according to Underwriting Matrix Description Target Market Borrower Households earning 80%, or less, of the .iluvII as established by HUD annually and adjusted for family size or as stated in the CDOH contract. Loan Amount Up to $11,700 or 4.5% of purchase price, whichever is less, or as amended. Use of Funds Down payment, closing costs and prepaid items directly attributed to the primary mortgage. Service Areas Eagle County plus three miles Term 30 years; fully-amortizing payments to include principal and interest. The loan will become immediately due upon sale, transfer, refinance, when the house is no longer the primary residence or upon the death of the buyer. Loan Fees As negotiated with LSA Collateral Real Property; junior lien Cost Recovery Third party service fees to be paid by borrower Fees Rates Fixed at 2.5% or as amended IV. PORTFOLIO MAL'iAGElVIENT F:\l\rIy Documents\DOH\CDOH Revolving Loan Policies. doc 9 1. Reporting, Risk and Compliance Review - LSA shall conduct ongoing review of outstanding loans to establish compliance with loan provisions. LSA shall prepare and present to Staff the following monthly reports a. Comprehensive Report - A complete accounting of all outstanding loans which details borrower name, family size, A!.\lII percentage, loan amount, parental status, date of the loan, ethnicity, property address, and occupation. Total loans funded and available capital, if appropriate, shall also appear. b. Summary Report - A composite accounting of total program capital, funds invested, principal and interest recapture, loan loss, and aggregate loan characteristics 2. Risk Rating and Loan Loss Reserves According to the assigned risk rating, EAGLE COUNTY may elect to maintain a loss reserve (expressed as a percentage of the loan amount) against available loan capital that reflects a reasonable assumption of loss. Reserve provisions may be re-evaluated from time to time to reflect the overall portfolio quality, historical losses and delinquency rates.. 3. Loan Repayment - Under the design of this program, borrowers shall make monthly payments of principal and interest to fully amortize the outstanding loan within the established loan term. LSA shall be allowed to assess late charges. against any payment that is received more than 15 days after the due date, not to exceed $10 per incident. If it is determined that borrower is not in compliance with any of terms or conditions of the Note or Deed of Trust, borrower shall be instructed in writing to submit payment in full of outstanding principal and interest within thirty (30) days of the notice. There is no pre-payment penalty. 4. Delinquency - In all cases, payment of principal and interest are due no later than the close of business on the date specified within the loan documents, or by the date shown on the demand for payment noted in Part 3 above. Borrower shall be given a grace period of 15 days to make payment without penalty for regularly scheduled monthly payments. After such time, the loan shall be considered in default, with appropriate action taken to remedy the loan. Until the point when payment is sixty (60) days past due, LSA shall retain the ability to make all satisfactory arrangements for payment, including waiver of any penalties where appropriate. The following procedures shall be taken in cases of default: a. 30 days past due - A late payment notice is mailed to the borrower, reflecting the amount due, date of default and request for immediate payment. b. 45 days past due - A second notice shall be mailed to borrower advising of past due status and possible corrective actions available to lender. c. 60 days past due - Delinquent Notice is mailed, followed by phone contact with the borrower to make payment arrangements and address any outstanding concerns. d. 75 days past due - LSA shall complete a full report that details the nature of all contact with borrower, any outstanding concerns of the borrower, and results of all discussions with borrower, its representatives and/or counsel. The report shall be submitted to Staff. e. 90 days past due - LSA shall consult Staff and its legal representation of collection options, which may include, but not limited to, issuance of Notice of Right to Cure. Staff shall make recommendations prior to further action. f. 120 days past due - Staff shall recommend further action strategy to LSA, which may include form and tone of further communication with borrower and/or its legal counsel, loan restructure, sale of the loan or foreclosure on security interest. 5. Foreclosure - As the recourse of last resort, Staff shall direct all further collection activity. Prior to any formal action, a Notice of Right to Cure, an attorney demand letter for payment and personal meeting with borrower and their legal counsel, if applicable, shall be complete and documented in the borrower's F:\My Documents\DOH\CDOH Revolving Loan Policies. doc 10 file. Occasionally, a deed-in-lieu of foreclosure may be accepted. In some instances, foreclosure may be a better option. a. Wnere foreclosure, or deed-in-lieu of, becomes a formal action, every effort shall be pursued to factor the mortgage and security interest to a third party. It is not within the scope of either LSA or EAGLE COUNTY nor in the best interest of public relations to take a property to sale or assume ownership of loan collateral. b. If LSA is in receipt of a Notice to Foreclose through the action of the prior lien holder, or Notice of Tax Sale initiated by the County Treasurer's office, Staff shall conduct a full review of the loan file for completeness and accuracy, noting any deficiencies that may affect ability to recover losses. To the extent possible, remedies shall be implemented and documented in the file. Recognizing that, in many cases, EAGLE COUNTY loans have limited security and provide little financial incentive to redeem listed deficiencies to preserve the EAGLE COUNTY security interest. LSA shall monitor such situations and report status to Staff as dictated by such developments. c. LSA shall retain authority to take appropriate action and request input from Staff to possibly allow redemption while preserving deed restrictions. 6. Bankruptcy - Upon receipt of a notice of bankruptcy petition, all direct collection efforts with the borrower will cease, with EAGLE COI.JNTY legal counsel engaged to direct further procedure. LSA shall collect and review all relevant documentation and advise Staff of possible action to preserve the security interest of EAGLE COUNTY. V. Dispute Resolution Process Informal Hearing The loan applicant will have the right to an informal hearing at the loan applicant's request to resolve any disputes or appeals concerning the program. The procedure for dispute resolution will be provided to each loan applicant as outlined in Section I, Part 2 (d). The loan applicant may request a hearing for dispute resolution by contacting the Eagle County Housing Department. The Director of Housing will select three members of the HBAC to function as Hearing Officers and hear any disputes or appeals. The Hearing Officers will have a good understanding of the basics of the Down Payment Assistance Program and will have no bias, personal or professional interest concerning the dispute. Staff will be present at the hearing. Hearing Oft1cers The Hearing Officers will be responsible for conducting the hearing in accordance with the following guidelines: . The loan applicant or the loan applicant's representative will first be given an oppOlwnity to present his/her issues regarding the dispute. The homeowner may present evidence or question witnesses at this time. . The housing organization's representative will then have an opportunity to explain their decision or point of view regarding the issue at hand. The representative may present evidence and question witnesses. The loan applicant will have the opportunity to question any agency witnesses at this time also. . The Hearing Officers will issue a wTitten decision within lO business days of the Informal Hearing. Factual decisions related to the individual circumstances of the loan application will be based on the evidence presented at the hearing. A copy of the hearing decision will be sent certified mail to the loan applicant. The written decision will contain a summary of the decision and the reasons for the decision. F:\1vIy Documents\DOH\CDOH Revolving Loan Policies.doc 11 Loan Applicant Has the Right To: . Examine and copy (at the homeowner's expense) relevant documents before the Infornlal Hearing . Present any or all information pertinent to the issue of the Informal Hearing Housing Organization Has the Right To: . Present evidence and all or any information pertinent to the issue of the Informal Hearing; . Examine relevant homeowner documents before the Informal Hearing . Be notified if the homeowner intends to be represented by legal counselor another party . Have its attorney present; and . Have the staff person familiar with the case present. F:\i\1y DocumentslDOH\CDOH Revolving Loan Policies.doc 12 - Exhibit 4 Federal and County Statutory and Regulatory Provisions -14- - - . FEDERAL AND COUNTY STATUTORY AND REGULATORY PROVISIONS PURPOSE: The work to be performed under this Agreement is on an activity funded all or in part with federal Community Development Block Grant (CnBG) funds and is subject to applicable federal laws and regulations. This Exhibit contains applicable federa1laws and regulations. This Exhibit is made a part of the Agreement In the event of any conflict in the provisions of this Exhibit and any other provision not found in this Exhibit, without specific statement or supersedure, the provisions of this Exhibit shall apply. 1. ACTIVITY RECORDS. a. Records to be Maintained. The SUB GRANTEE shall maintain all records required by the federal regulations specified in 24 eFR Section 570.506 and that arc pertinent to the activities to be funded under this Agreement Such records shall include but not be limited to: 1) Records providing a full description of each activity undertaken; 2) Records demonstrating that each activity undertaken meets one of the National Objectives of the CnBG program; 3) Records required to determine the eligibility of activities; 4) Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CnBG assistance; . 5) Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; 6) Financial records as required by 24 CFR Section 570.502 and OMB Circular A-IIO as qualified by 24 CFR Section 570.502. 7) Fair housing and equal opportunity records; and 8) Other records necessary to document compliance with Subpart K of24 CFR Part 570. b. Retention. The SUBGRANTEE shall retain alt,records pertinent to expenditures incurred under this Agreement for a period offour\(4) years after the termination of . \ \ March 27, 1997 \ i M:\GROUPS\COMMDEV\97CDBG\AGREE\E.."XH5SUBS.WPD \ \ \ , all activities funded under this Agreement, after any litigation pursuant to this - - Agreement, or after the resolution of all Federal audit :findings, whichever occurs later. Records for non-expendable property acquired with funds under this Agreement shaD be retained for four (4) years after final disposition of such property. Records for any displaced person must be kept for four (4) years after he!she has received final payment. . c. Client Data. The SUBGRANTEE shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to COUNTY monitors or their designees for review upon request. Client data pertaininp; to loans generating program income will also be transferred, along with the assets securing the loan, to the COUNTY upon project closeout. d. Disclosure. The SUBGRANTEE understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the admini!rtration of the COUNTY's or SUBGRANTEEts responsibilities with respect to services provided under this contract, is prohibited unless written consent is obtained from such persons receiving the service and, in the case ~f a minor, that of a responsible parent/guardian, or unless disclosure is required by the Public Records Law. e. Property Records. The SUBGRANTEE shall maintain real property inventory records which clearly identify properties purchased., improved or sold. Properties purchased with these CDBG funds and retained by the SUBGRANTEE shall continue to meet eligibility criteria and shall conform with the "changes in use" restrictions specified in 24 CFR Section 570.503(b )(8). f. Source Documentation. All SUBGRANTEE costs, expenditures and obligations hereunder must be supported by such source documentation as canceled checks, paid bills, payrolls, time and attendance records, contract and subgrant award documents or other documents showing in detail the nature of such costs and obligations. g. Record Accessibility. Any pertinent books, documents, papers, or other records pertaining in whole or in part to this Agreement shall be clearly identified and be made readily accessible to the COUNTY~ HUD, and. Comptroller General of the U.S., or any of their duly authorized representatives, upon request, for the purpose of making :;n' its, examinations, excerpts and transcriptions. At such times and in such form as may be required, the SUBGRANTEE shall furnish to the COUNTY, HUD, or the Comptroller General of the U.S., any of the records, reports, data, information or other documents enumerated in this paragraph at no cost to the March 27, 1997 M:\GROUPS\COMMDEV\97CDBG\AGREE\EXH5SUBS. WPD -2- - . requesting agency, unless the volume requested would place a hardship upon the SUB GRANTEE. 2. . ACCOUNTING AND FINANCIAL MANAGEMENT. a. Bonding Requirements. The SUB GRANTEE shall follow its own bonding requirements for bid guarantees, performance bonds, and payment bonds. For all agreements involving construction work exceeding $100,000, in addition to the SUBGRANIEE's requirements, the folloWing items shall be required as a minimum to be submitted by the SUBGRAN1EE to the COUNTY as a condition of the execution of this Agreement: a bid guarantee equivalent to 5% of the bid price, a performance bond for 100% of the Agreement Price, and a payment bond for 100% of the Agreement Price. b. Independent Audits. Where work: performed tmder this Agreement is tmdertaken by a SUBGRANTEE, an audit shall be conducted and submitted to the Cotmty in accordance with the applicable requirements of OMB Circular A-I33 entitled, "Aqdits of Institutions of Higher Education and Other Nonprofit Institutions" and as implemented by HUD at 24 CFR Part 45. If an audit is not required in accordance with OMB Circular 133, the SUB RECIPIENT shall providea year-end financial statement for each fiscal year in which the SUBGRANTEE has received funding from the COUNTI for this project c. Indirect Costs Prohibition. All costs to be reimbursed by the COUNTY to the SUBGRANTEE shall be direct costs. Such direct costs shall be identified in the Activity Budget spelling out in detail the specific sources and 'uses of any funds to be expended tmder this Agreement No indirect costs (activities that are incurred for a common or joint purpose benefiting more than one cost objective and not readily assignable to the cost objectives specifically benefited, without effort disproportionate to the results achieved) shall be eligible for reimbursement unless the SUBGRANTEE already has a cost allocation plan meeting the Office of Management and Budget Circular A-I22 requirements, attached hereto and incorporated herein by reference, and written documentation that the plan has been approved by HUD and by the COUNTY which shall also be incorporated herein by reference. d. Administrative Requirements and Cost Principles. SUBGR.AJ.~TEE shall comply with the requirements and standards.ofOMB Circular No. A-I22, "Cost Principles for Non Profit Organizations" or 48 CFR Part 31 for for-profit organizations, and with the attachments to OMB Circular No. A-II 0, as applicable. . March 27, 1997 M:\GROUPS\COMMDEV\97CDBG'lAGREE\E..XH5SlJBS.WPD " -j- e. Program Income. The SUBGRANTEE shall comply with program income - requirements set forth in 24 CFR Sections 570.500(a) and 570.504, incorporated herein by reference. Program in.:ome on hand at the time of closeout shall continue to be subject to the eligibility requirements and all other applicable federal regulations until it is remitted to COUNTY. f. Travel. SUBGRANIEE shall obtain written approval from COUNTY for any travel outside the metropolitan area with funds provided under this Agreement. 3. COPYRIGHTS. The COUNTY and HUD reserve a royalty-free, nonexclusive, and irrevocable license to reproduce, publish or otherwise use, and to authorize others to use, for COUNTY or Federal government purposes, the copyright in any work developed pursuant to this Agreement or subagreements, or which SUBGRANTEE purchases with funds under this Agreement pursuant to 24 CFR Section 85.34, incorporated herein by this reference. 4. POLmCAL ACTIVITY AND LOBBYING. a The SUBGRANTEE shall not use any CDBG funds to finance the use of facilities or equipment for political purposes or to engage in partisan political activities. b. Th~ SuBGRANTEE certifies by execution of this Agreement that, to the best of its knowledge and belief: 1) No federally appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federallo~ the entering into of any cooperative agreement, and the extension, continuation, renewaL amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. 2) If any funds other than Federally appropriated funds have been paid or will be paid to any person for influencing or attempting to intluence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement (Agreement), the undersigned shall complete and submit Standa.rd FDrm-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions and which is available from the COUNITs Representative. 3) The undersigned shall require that the language of this certification be included in the award documents for all sub awards at all tiers (including March 27, 1997 M:\GROUPS\COMMDEV\97CDBG\AGREE\EXH5SUBS.WPD -4- subcontracts, subgrants, and contracts under grants, loans, and cooperative :::- agreements) and that the SUBGRANIEE and all subawardees shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this t:ransaction was made or entered into. Submission of this certification is a prerequisite for m:tlcing or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 5. CONFLICT OF INTEREST. The SUB GRANTEE and its employees, agent, consultant, officer, or appointed officer (except for the use of CDBG funds to pay salaries and other related administrative or personnel costs) who exercise or have exercised any functions or responsibilities with respect to the COUNIYs CDBG activities or who are in a position to participate in a decision making process or gain inside information with regard to such activities, may not obtain a financial interest in or benefit from this Agreement, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter. Exceptions may only be made with written approval from the COUNTY and HUD pursuant to 24 CFR Section 570.611 incorporated herein by this reference. 6. ENVIRONMENTAL AND HEAL THISAFETY CONDITIONS. a. The SUBGRANTEE agrees to comply with the Clean Water Act, 42 U.S.C. 1857 ~. and the Federal Water Pollution Control Act, 33 U.S.C. 1251 ~ ~., as amended. . b. Complying with Acts specified herein does not release the SUBGRANTEE from complying with other federal environmental laws and regulations, that were previously unknown or become applicable after the effective date of this Agreement. c. National Flood Insurance Program. No funds shall be expended under this Agreement for the purpose of either acquisition or construction activities within a designated area having special flood hazards unless flood insurance has been obtained in accordance with section 102(a) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001) as amended. d. Lead-Based Paint. Federal regulations at 24 CFR Section 570.608 issued pursuant to the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821 et seq.) prohibit the use of lead-based paint and establish procedures to eliminate as far as practicable the hazards due to the presence of paint which may contain lead on applicable surf~ces of residential structures constructed March 27, 1997 M:\GROUPS\CO~fMDEV\97CDBG\AGREE\EXH5SUBS. WPD -5- or rehabilitated with federal assistance. For properties constructed prior to ::::: 1978, applicants for rehabilitation assistance shall be notified of the hazards oflead-based paint using the "Notification" or equivalent as issued by HUn in Notice CPD 90-03 and incorporated herein by reference, available from the COt.JNTI""S representative upon request Copies of the notification shall be retained for three years. The SUB GRANTEE shall be responsible for inspecting and any required testing of any residential stIUcture constructed prior to 1978 to be rehabilitated, modernized, or improved under this Agreement to determine whether or not a need for abatement actions exists, and to eliminate any lead-based paint hazards as required under 24 CFR Section 570.608( c), incorporated herein. by this reference. e. Asbestos. The SUB GRANTEE where undertaking renovation, rehabilitation, or demolition actions shall follow the notification and strict work practices for asbestos handling, removal, storage and transport as required under 40 CFR Part 61, Subpart M and 40 CFR Part 763 as well as for worker protection standards and exposures as required under 29 CFR 1910.1001 (non-construction), 1926.58 (construction), 40 CFR Part 763, Subpart G, and any applicable local and Ei!gl.~!.. County Health Department regulations. f. Energy Efficiency. The SUBGRANTEE shall comply with the 1989 Model Energy Code, incorporated herein by this reference, for all new buildings constructed under this Agreement to address federal energy efficiency requirements found at 24 CFR S~on 8536(i)(13) incorporated herein by this reference. g. Clean Air and Water Standards. Where the toW amount of this Agreement is greater than $100.,000, the SUBGRANTEE shall comply with all applicable standards, orders, or requirements issued under section 306 of the Clear Air Act (42 U.S.C. 1857(h)), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR Part 15) which "shall be incorporated herein by reference. The SUBGRANTEE shall report all violations oftbis subparagraph to the. COUNTY and applicable federal agencies responsible for the administration of the provisions above. h. Fire Prevention. SUBGRANTEE will comply with the provisions of the Fire Administration Authorization Act of 1992 (Pub. L. 102-522) where applicable. Said Act requires rJlultifamily properties constructed after October 26, 1992 for which housing assistance is used to be equipped during construction with automatic sprinklers and hard-wired smoke detectors; multifamily property rebuilt after October 1, 1994 for which housing assistance is used must comply with the Life Safety Code; any other dwelling March 27,1997 M:\GROUPS\COMMDEV\97CDBG\AGREE\EXH5StJBS.WPD -6- ". unit for which housing assistance is provided must be equipped with a - - hard-wired or battery-operated smoke detector installed in accordance with NFPAS 74. 7. PROHIBmON AGAINST DrSCRIMINA nON PROVISIONS. The SUBGRAN1EE shall ensure that no person in the United States shall on the ground of race, color, religion (in instances of fair housing), sex, national origin, disability (with respect to qualified individuals with disabilities), or familial status, be excluded from participation ~ be denied the benefits of, or be subjected to ~on in any program or activity conducted under this Agreement The SUBGRANTEE is subject to the discrimination prohibition requirements under the following laws and authorities which are incorporated herein by reference: a. Title VI of the Civil Rights Act of 1964 (pub. L.88-352) and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In addition, in sale, lease or other transfer of land acquired, cleared or improved under this Agreement, the SUBGRANTEE shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer requiring compliance with applicable provisions of Title VI. b. Section 109 of the Housing and Community Development Act of 1974, as amended, and 24 CFR Section 570.602. c. Age Discrimination Act of 1975 and the implementing regulations found at 24 CFR Part 146, but with the exceptions permitted therein. d. Section 504 of the Rehabilitation Act of 1973, as amended, and as implemented by 24 CFR Part 8, and the Americans with Disabilities Act, codified at 42 U.S.C. Section 12131. In addition, the:SUBGRAN1EE is subject to the requirements of the Architectural Barriers Act of 1968, and implementing regulations, incorporated herein by reference, with respect to accommodations for the physically disabled. Design, construction, and alteration of public facilities shall be made in such manner so as to ensure that physically disabled persons will have ready access to and use of such buildings pursuant to the "Uniform Federal Accessibility Standards" as amended, which is incorporated herein by this reference. e. Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing AmendmentS Act of 1988 (Fair Housing Act, 42 U.S.C. 3600-3620) and Executive Order 11063, as amended by Executive Order 12259 and the implementing regulations in 24 CFR Part 107. 8. SEP ARA nON OF CHURCH AND STATE PROHIBmONS. The SUB GRANTEE shall March 27, 1997 M;\GROUPS\COMMDEV\97CDBG\AGREE\EXH5SUBS.WPD -7- not obligate nor expend any funds under this Agreement that will be used for religious .- activities or provided to primarily religious entities for any activities, including secular activitieS, unless a written request is submitted to the Director of Community Development and written approval is obtained from the COUNTY pursuant to 24 CPR Section 570.200 G) which shall be incorporated herein by.reference. 9. E.O. 11246 EQUAL EMPLOYMENT OPPORTUNITY CLAUSE. During the perfor- mance of this agreement, where construction costs sball exceed $10,000, the SUBGRANTEE agrees as follows: a. The SUB GRANTEE will not discrimin::tte against any employee or applicant for employment because of race, color, religion, sex, or national origin. The SUBGRANTEE will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising; layoff or termination; rates of payor other forms of compensation; and selection for training, including apprenticeship. The SUBGRANTEE agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. b. The SUBGRANTEE will, in all solicitations or advertisements for employees placed by or on behalf of the SUB GRANTEE, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, or national origin. c. The SUBGRANTEE wi)l send to each labor union or representative of workers with which the SUBGRANTEE has a cOllective bargaining agreement or other contract or understanding, a notice advising the labor union or workers' representative of the SUBGRANIEE's commitments under Section 202 of Executive Order 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. d. The SUBGRA1WEE will comply. with all provisions of Executive Order 11246 of September 24, 1965 as amended by Executive Orders 11375, 11478, 12086, and 12107, and of the rules, regulations, and relevant orders of the Secretary of Labor. e. The SUBGRAt~E will furnish all information and reports required by March 27, 1997 M:\GROUPS\COll-fMDEV\97CDBG\AGREE\E..'XH5StJBS. WPD -8.. Executive Order 11246 of September 24,1965, and by the rules, regulations, - - and orders of the Secretary of Labor, or pursuant thereto, and will permit access to the SUBGRAN1EE's books, records, and accounts by the Department and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders. f. In the event of the SUB GRANTEE's noncompliance with the nondiscrimination clauses of this Agreement or with any of such rules, regulations, or orders, this Agreement may be canceled, terminated or suspended in whole or in part and the SUBGRANTEE may be declared ineligible for further Government contracts in accordance with procedures authorized in Executive Order 11246 of September 24,1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. g. The SUBGRANTEE will include the provisions of paragraphs (a) through (g) in every subagreement or purchase order unless excepted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that each provision will be binding upon each subcontractor or vendor. The SUBGRANfEE will take such action with respect to any subagreement or purchase order as the Department may direct as a means of enforcing such provisions including sanctions for noncompliance; provided, however, that in the event the SUBGRANTEE becomes involved in or is threatened with litigation with a subcontractor or vendor as a result of such direction by the Department, the SUBGRANTEE may request the United States to enter into such litigation to protect the interests of the United States. . h. The SUBGRANTEE further agrees to complete and submit to the COUNIY, with its final invoice employment iriformation during the performance period of this Agreement which covers the entire Period of Performance of this Agreement or from the beginning effective date to the successful completion of ail activities under the Activity/Scope of Work of this Agreement, whichever length oftime is shorter. 10. SECTION 3 CLAUSE. The SUBGRANTEE shall incorporate, or cause to be incorporated, in all contracts for work in connection with a Section 3 covered project, as defined in 24 CFR Section 135.5(m), Z:ad sh1l1 be directly bound by the following clause (refern"~ to as a Section 3 clause): a. The work to be performed under this Agreement is on an activity assisted March 27, 1997 M:\GROUPS\COMMDEV'97CDBGlAGREE\EXH5SUBS.WPD -9- . under a program providing direct Federal financial assistance from the - ,- Department of Housing and Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Implemented at 24 CFR Part 135). Section 3 requires that to the greatest extent feasible opportunities for training and employment be given lower income residents of the Section 3 covered area and contracts for work in connection with the activity be awarded to business concerns which are located in, or owned in substantial part by persons . residing in the Section 3 covered area. b. The parties to this Agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of Housing and Urban Development set forth in 24 CFR Part 135 and all applicable rules and ordet'S of the Department issued thereunder prior to the execution of this Agreement. The parties to this Agreement certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. c. The contractor will send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract . or understanding, if any, a notice advising the said labor organization or workers' representative of its commitments, under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. d. The contractor will include this Section 3 clause in every subcontract for work in connection With the activity and will, at the direction of the applicant for or recipient of Federal financial assistance, take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR Part 135. The contractor will not subcontract with any subcontractor where it has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. e. Compliance with the provisions of Section 3 and the regulations set forth in 24 CFR Part 135 of the Department issued thereunder prior to the execution ('lfthe Agreement, shall be a condition of the Federal assistanee provided to the activity, binding upon the applicant or recipient for such assistance, its successors, and assigns. Failure to fulfill these requirements shall subject the applicant or recipient, its successors, and assigns to those sanctions specified March 27, 1997. M:\GROUPS\COMMDEV\97CDBG\AGREE\EXHSSUBS.WPD -10- by the grant or loan agreement or contract through which Federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 135. - - f. In carrying out these provisions, the SUBGRANTEE shall provide to the COUNTY evidence that it has made a good faith effort to comply with the requirements of Section 3, including the evidence set forth in 24 CFR Sections 135.50, 135.60, 135.70, or 135.75, as applicable. 11. ~ORITY AND WOMEN BUSINESS ENTERPRISES. In complying with HUD instructions made pursuant to E.O. 11625, 12432 and 12138, incorporated herein by reference, to foster and promote minority and women's business enteIprises and with 24 CPR Section 85.36(e) to award a fair share of contracts to small and minority and women's businesses, the SUBGRANTEE shall maintain documentation of its efforts to assure small and minority and women's businesses are considered and used where possible as provided :-0: under 24 CFR Section 85.36(e) which is incorporated herein by reference. 12. ALIENS. The SUBGRANTEE shall not provide direct benefits under this Agreement to newly legalized resident aliens as set forth in 24 CFR Section 570.613 which shall be incorporated herein by this reference. 13. RELOCA TION AND REAL PROPERTY ACQUISmON. Where the SUBGRANTEE uses funds under this Agreement to relocate or acquire.real property, the SUBGRANTEE shall be subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (pub. L. 91-646, 84 Stat. 1894, 42 U.S.C. 4601), as amended by the Surface Transportation and Uniform Relocation Assistance Act of 1987 (fitle IV of Pub. L. 100-17, 101 Stat. 246-255, 42 U.S.C. 4601 note) and as set forth in 49 CFR Part 24, which provisions shall be incoIporated herein by reference. The SUBGRANTEE shall. also follow the requirements set forth in 24 CFR Section 570.606. . 14. DEBARRED OR SUSPENDED CONTRACTOR/SUB RECIPIENT. The SUBGRANTEE shall not directly or indirectly use CDBG funds to employ, award contracts to, or otherwise engage the services of, or fund any contractor or subrecipient during any period of debarment, suspension, or placement in ineligibility status under the provisions of24 CFR Section 85.35 or E.O.12549, incorporated herein by reference. The SUBGRANTEE shall submit to the COUNTY Contractor ownership information and shall submit to the COUNTY from any and all subcontractors subcontractor ownership information within five (5) working days after an agreement or understanding bas been executed or reached between the SUBGRANfEE and subcontractor. 15. EQBEIGN COUNTRY RESTRICTIONS. Contractor shall comply with the requirements of Section 109 of Public Law 100-202 which prohibits the awarding of certain contracts or subcontracts to contractors or subcontractors from foreign countries listed by the United States Trade Representative. 16. FEDERAL LABOR STANDARDS. Where the .SUBGRANTEE shall perform work or March 27, 1997 M:\GROUPS\COM1vIDEV\97CDBG\AGREE\EXH5SUBS.WPD -11- . subcontract work, as part of its performance under Agreement, which entails construction work in excess of$2,000 (and involves eight or more units where residential construction is involved), the SUBGRAN1EE shall comply with and have incorporated into .- .- any and all such subcontracts the "FEDERAL LABOR STANDARDS PROVISIONS" (HUD-40 1 0). The SUBGRANTEE agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act, the Safe'y Standards Act, the Copeland "Anti-Kickback" Act (40 U.S.C. 276, 327-333) and all other applicable federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. 17. PROCUREMENT REQUIREMENTS. SUBGRANTEE agrees to conform to all procurement requirements set forth in 24 CFR Section 85.36, including the requirement to maintain procurement records, limitations on time and materials contracts, and the requirement that its bid process be full and open and not restrict competition. The following procurement methods are required: 1. For purchases of less than $10,000, the SUBGRAN1EE may obtain either oral or written price quotations. . The SUBGRANTEE must docwnent the receipt of an adequate number of price or n:te quotations from qualified sources. 2. For purchases of $10,000 or more but less than $25,000, written price quotations must be obtained. The SUBGRANTEE must document the receipt of an adequate number of. price or rate quotations from qualified sources. 3. For purchases of$25,000 or more, competitive sealed bids as set forth in 24 CFR Section 85.36(d)(2) shall be obtained unless SUBGRAN1EE receives prior approval from the COUNTY to use competitive proposals based on 24 CFR Section 85.36(d)(3) or non-competitiveJsole source procurement based on 24 CFR Section 85.36 (0)(4). 18. DRUG-FREE WORK PLACE ACT. SUBGRAN1EE shall comply with the Drug Free Work Place Act of 1988, as amend~ and regulations promulgated thereunder. March 27, 1997 M;\GROUPS\COMMDEV\97CDBG\AGREE\EXH5SUBS. \VPD -12- .- Exhibit 5 OMB Circular A-II0 -15-