CAAB(LEGAL) - STATE AND FEDERAL REVENUE SOURCES: FEDERAL

Perkins Grants

Retirement Contributions

Requests for Federal Financial Assistance

  1. A request for federal financial assistance; or
  2. An agreement, assurance of compliance, requirement, or enforcement action relating to the request.

Administration of Federal Awards

Financial Management

  1. Identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. Federal program and federal award identification must include, as applicable, the Assistance Listings title and number, federal award identification number and year, name of the federal agency, and name of the pass-through entity, if any.
  2. Accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements set forth in 2 C.F.R. 200.328 and 200.329. If a federal awarding agency requires reporting on an accrual basis from a recipient that maintains its records on other than an accrual basis, the recipient must not be required to establish an accrual accounting system. This recipient may develop accrual data for its reports on the basis of an analysis of the documentation on hand. Similarly, a pass-through entity must not require a subrecipient to establish an accrual accounting system and must allow the subrecipient to develop accrual data for its reports on the basis of an analysis of the documentation on hand.
  3. Records that identify adequately the source and application of funds for federally funded activities. These records must contain information pertaining to federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income, and interest and be supported by source documentation.
  4. Effective control over, and accountability for, all funds, property, and other assets. The non-federal entity must adequately safeguard all assets and assure that they are used solely for authorized purposes. See 2 C.F.R. 200.303.
  5. Comparison of expenditures with budget amounts for each federal award.
  6. Written procedures to implement the requirements of 2 C.F.R. 200.305.
  7. Written procedures for determining the allowability of costs in accordance with 2 C.F.R. Part 200, Subpart E and the terms and conditions of the federal award.

Internal Controls

  1. Establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework," issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
  2. Comply with the U.S. Constitution, federal statutes, regulations, and the terms and conditions of the federal awards.
  3. Evaluate and monitor the non-federal entity's compliance with statutes, regulations, and the terms and conditions of federal awards.
  4. Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings.
  5. Take reasonable measures to safeguard protected personally identifiable information and other information the federal awarding agency or pass-through entity designates as sensitive or the non-federal entity considers sensitive consistent with applicable federal, state, local, and tribal laws regarding privacy and responsibility over confidentiality.

Advanced Payment

  1. The federal awarding agency and pass-through entity must not require separate depository accounts for funds provided to a non-federal entity or establish any eligibility requirements for depositories for funds provided to the non-federal entity. However, the non-federal entity must be able to account for funds received, obligated, and expended.
  2. Advance payments of federal funds must be deposited and maintained in insured accounts whenever possible.
  1. The non-federal entity receives less than $250,000 in federal awards per year.
  2. The best reasonably available interest-bearing account would not be expected to earn interest in excess of $500 per year on federal cash balances.
  3. The depository would require an average or minimum balance so high that it would not be feasible within the expected federal and non-federal cash resources.
  4. A foreign government or banking system prohibits or precludes interest-bearing accounts.

Budgets and Program Plans

Cost Principles

  1. Arrangements under which federal financing is in the form of loans, scholarships, fellowships, traineeships, or other fixed amounts based on such items as education allowance or published tuition rates and fees.
  2. For institutions of higher education, capitation awards, which are awards based on case counts or number of beneficiaries according to the terms and conditions of the federal award.
  3. Fixed amount awards. See also 2 C.F.R. 200.1 Definitions and 200.201.
  4. Federal awards to hospitals (see Appendix IX to 2 C.F.R. Part 200).
  5. Other awards under which the non-federal entity is not required to account to the federal government for actual costs incurred.
  1. The non-federal entity is responsible for the efficient and effective administration of the federal award through the application of sound management practices.
  2. The non-federal entity assumes responsibility for administering federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the federal award.
  3. The non-federal entity, in recognition of its own unique combination of staff, facilities, and experience, has the primary responsibility for employing whatever form of sound organization and management techniques may be necessary in order to assure proper and efficient administration of the federal award.
  4. The application of these cost principles should require no significant changes in the internal accounting policies and practices of the non-federal entity. However, the accounting practices of the non-federal entity must be consistent with these cost principles and support the accumulation of costs as required by the principles and must provide for adequate documentation to support costs charged to the federal award.
  5. In reviewing, negotiating, and approving cost allocation plans or indirect cost proposals, the cognizant agency for indirect costs should generally assure that the non-federal entity is applying these cost accounting principles on a consistent basis during their review and negotiation of indirect cost proposals. Where wide variations exist in the treatment of a given cost item by the non-federal entity, the reasonableness and equity of such treatments should be fully considered. See the definition of indirect (facilities & administrative (F&A)) costs in 2 C.F.R. 200.1.
  6. For non-federal entities that educate and engage students in research, the dual role of students as both trainees and employees, including pre- and post-doctoral staff, contributing to the completion of federal awards for research must be recognized in the application of these principles.
  7. The non-federal entity may not earn or keep any profit resulting from federal financial assistance, unless explicitly authorized by the terms and conditions of the federal award. See also 2 C.F.R. 200.307.

Cost Sharing

Program Income

Period of Performance

Conflict of Interest

Procurement

Restricted Contracts

Property Standards

Real Property

  1. Retain title after compensating the federal awarding agency as described by 2 C.F.R. 200.311(c)(1).
  2. Sell the property and compensate the federal awarding agency as described by 2 C.F.R. 200.311(c)(2).
  3. Transfer title to the federal awarding agency or to a third party designated/approved by the federal awarding agency. The non-federal entity is entitled to be paid as described by 2 C.F.R. 200.311(c)(3).

Equipment

  1. Use the equipment for the authorized purposes of the project during the period of performance, or until the property is no longer needed for the purposes of the project.
  2. Not encumber the property without approval of the federal awarding agency or pass-through entity.
  3. Use and dispose of the property in accordance with 2 C.F.R. 200.313(b), (c), and (e).

Supplies

Federally Owned Property

Intangible Property

Property Trust Relationship

Insurance Coverage

Procurement

Generally

Eligible Contractors

Contracting with Certain Businesses

Competition

Methods of Procurement

Informal Procurement Methods
  1. Micro-purchases: The acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold. To the maximum extent practicable, the non-federal entity should distribute micro-purchases equitably among qualified suppliers. Micro-purchases may be awarded without soliciting competitive price or rate quotations if the non-federal entity considers the price to be reasonable based on research, experience, purchase history, or other information and documents it files accordingly. Purchase cards can be used for micro-purchases if procedures are documented and approved by the non-federal entity. The micro-purchase method is subject to the requirements of 2 C.F.R. 200.320(a)(1).
  2. Small purchases: The acquisition of property or services, the aggregate dollar amount of which is higher than the micro-purchase threshold but does not exceed the simplified acquisition threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources as determined appropriate by the non-federal entity. The small purchases method is subject to the requirements of 2 C.F.R. 200.320(a)(2).
Formal Procurement Methods
  1. Sealed bids: A procurement method in which bids are publicly solicited and a firm fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bids method is the preferred method for procuring construction, if the conditions. The sealed bid method is subject to the requirements of 2 C.F.R. 200.320(b)(1).
  2. Proposals: A procurement method in which either a fixed price or cost-reimbursement type contract is awarded. Proposals are generally used when conditions are not appropriate for the use of sealed bids. Proposals are awarded in accordance with the requirements described by 2 C.F.R. 200.320(b)(2).
Noncompetitive Procurement
  1. The acquisition of property or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold;
  2. The item is available only from a single source;
  3. The public exigency or emergency for the requirement will not permit a delay resulting from publicizing a competitive solicitation;
  4. The federal awarding agency or pass-through entity expressly authorizes a noncompetitive procurement in response to a written request from the non-federal entity; or
  5. After solicitation of a number of sources, competition is determined inadequate.

Domestic Preference

Contract Provisions

Time and Materials Contracts

  1. The actual cost of materials; and
  2. Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.

Contract Cost and Price

Cost Effectiveness

Procurement of Certain Services and Equipment

Procurement of Recovered Materials

Bonding Requirements

Oversight

By Non-Federal Entities
By Other Governmental Entities
  1. The non-federal entity's procurement procedures or operation fails to comply with the procurement standards in 2 C.F.R. Part 200;
  2. The procurement is expected to exceed the Simplified Acquisition Threshold and is to be awarded without competition or only one bid or offer is received in response to a solicitation;
  3. The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a "brand name" product;
  4. The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or
  5. A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold.

Settlement of Contractual and Administrative Issues

Travel Costs

Records

Records Retention

Generally
Procurement

Methods for Collection, Transmission, and Storage of Information

Access to Records

By Governmental Entities
By the Public

Performance Reports

Monitoring Required

Reporting Generally

Nonconstruction Performance Reports

  1. A comparison of actual accomplishments to the objectives of the federal award established for the period. Where the accomplishments of the federal award can be quantified, a computation of the cost (for example, related to units of accomplishment) may be required if that information will be useful. Where performance trend data and analysis would be informative to the federal awarding agency program, the federal awarding agency should include this as a performance reporting requirement.
  2. The reasons why established goals were not met, if appropriate.
  3. Additional pertinent information including, when appropriate, analysis and explanation of cost overruns or high unit costs.

Construction Performance Reports

Significant Developments

  1. Problems, delays, or adverse conditions which will materially impair the ability to meet the objective of the federal award. This disclosure must include a statement of the action taken, or contemplated, and any assistance needed to resolve the situation.
  2. Favorable developments which enable meeting time schedules and objectives sooner or at less cost than anticipated or producing more or different beneficial results than originally planned.

Site Visits

Waiver

Real Property Reports

Audits

Collection of Amounts Due

  1. Making an administrative offset against other requests for reimbursements;
  2. Withholding advance payments otherwise due to the non-federal entity; or
  3. Other action permitted by federal statute.

Mandatory Disclosure

Noncompliance

  1. Temporarily withhold cash payments pending correction of the deficiency by the non-federal entity or more severe enforcement action by the federal awarding agency or pass-through entity.
  2. Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of the cost of the activity or action not in compliance.
  3. Wholly or partly suspend or terminate the federal award.
  4. Initiate suspension or debarment proceedings as authorized under 2 C.F.R. Part 180 and federal awarding agency regulations, or in the case of a pass-through entity, recommend such a proceeding be initiated by a federal awarding agency.
  5. Withhold further federal awards for the project or program.
  6. Take other remedies that may be legally available.

Opportunities to Object

Suspension and Debarment

Termination of Federal Award

  1. By the federal awarding agency or pass-through entity, if a non-federal entity fails to comply with the terms and conditions of a federal award;
  2. By the federal awarding agency or pass-through entity, to the greatest extent authorized by law, if an award no longer effectuates the program goals or agency priorities;
  3. By the federal awarding agency or pass-through entity with the consent of the non-federal entity, in which case the two parties must agree upon the termination conditions, including the effective date and, in the case of partial termination, the portion to be terminated;
  4. By the non-federal entity upon sending to the federal awarding agency or pass-through entity written notification setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated. However, if the federal awarding agency or pass-through entity determines in the case of partial termination that the reduced or modified portion of the federal award or subaward will not accomplish the purposes for which the federal award was made, the federal awarding agency or pass-through entity may terminate the federal award in its entirety; or
  5. By the federal awarding agency or pass-through entity pursuant to termination provisions included in the federal award.

U.S. Education Department General Administrative Regulations

Direct Grant Programs

State-administered Programs

General Education Provision Act

U.S. Department of Agriculture

U.S. Department of Health and Human Services

U.S. Department of Justice

U.S. Department of Labor

Weatherford College

CAAB(LEGAL)-LJC

UPDATE 40

DATE ISSUED: 11/23/2020