2026 Canada Grant Admin Standards FINAL April 2026.pdf

Summary of Changes

• These Standards were updated to reflect revisions to 2 CFR 200. Recipients should review 2 CFR 200 in its entirety to ensure full compliance with all applicable regulations.

o The de minimis rate for indirect costs was increased from 10% to 15% of Modified Total Direct Costs.

o Subaward exclusion from Modified Total Direct Costs increased to $50,000.

o Higher limits for equipment ($10,000) and supplies ($10,000).

o The Single Audit threshold was raised from $750,000 to $1,000,000.

o Closeout costs were added as an eligible activity.

• The NAWCA Grant Program has been modified to more closely align with the North American Wetlands Conservation Act and to ensure consistency with current regulations and policies.

o Requirements for real property acquisition have been updated to include a Notice of Federal

Participation, a purchase agreement / fair market value disclosure, and, if applicable, a signed bargain sale statement.

o Appraisal valuation dates must be within twelve months of the date the price was set with a contractual commitment or the actual property transfer date.

o Requirements for the SF-429A and associated tract table and the SF-429B and associated tract table have been updated, including when real property documentation associated with each should be submitted.

o Reporting requirements have been updated. Example reporting tables are provided in an Appendix.

o Proposals and reports must distinguish between new acres and non-add acres (acres previously reported to NAWCA or acres where NAWCA grant or match has previously been used).

• The eligibility of old match has been included, if requested and pre-approved through pre-award costs.

• Guidance on carbon credits, compatible uses, and required risk assessments has been added.

• Additional information has been provided on disposal procedures and requirements.

• Guidance on the inclusion of non-match in proposals and reports has been added.

• NAWCA Canada Eligibility Criteria have been issued as a standalone document.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200?toc=1 https://www.fws.gov/service/north-american-wetlands-conservation-act-nawca-canada-grants

NAWCA CANADA PROGRAM

GRANT ADMINISTRATION

STANDARDS

North American Wetlands Conservation Act

March 2026

Table of Contents

SECTION A: APPLICABILITY AND AUTHORITIES

1. Overview of Standards

2. NAWCA Authorities

3. Applicability

SECTION B: GRANT AGREEMENT

1. Grant Agreement Overview

2. Binding Grant Agreement

3. Termination

4. Subrecipients

SECTION C: ELIGIBILITY

1. Eligibility Criteria

2. Business Registration

3. Financial Assistance Representation and Certification

4. GrantSolutions

(a) Principal Investigator / Program Director (PI/PD)

(b) Administrative Official / Authorized Representative (ADO/GAO)

5. Risk Assessment

6. Financial Management System

SECTION D: FINANCIAL ADMINISTRATION

1. Allowable Costs

2. Period of Performance

3. Pre-Award Costs

4. Matching Funds

(a) Match:

(b) Old Match:

(c) Non-Match:

(d) Accounting and Records:

5. Indirect Costs

6. Program Income

7. Interest (refer to 2 CFR 200.305)

8. Returning Funds

9. Record Retention

10. Using Non-Match Funds

11. Currency Exchange Rates

12. Payment Requests

SECTION E: EQUIPMENT AND SUPPLIES

1. Purchasing and Management

2. Inventory

3. Disposal of Equipment and Supplies

SECTION F: REAL PROPERTY ACQUISITION

1. Prior Approvals

2. Incurring Costs of Acquiring Real Property

3. Conservation Easements

4. Leases

5. Appraisals

6. Market Value

7. Mineral Rights

8. Water Rights

9. Value of Timber

10. Carbon

11. Recording Documents

(a) Evidence of Valuation

(b) Purchase Agreement / Fair Market Value Disclosure

(c) Signed Bargain Sale Statement (if applicable)

(d) Proof of Payment

(e) Proof of Recorded Real Property Interest

(f) Notice of Federal Participation

(g) Real Property Report

SECTION G: MODIFICATIONS

1. Approvals

2. Period of Performance Extensions

3. Closing

SECTION H: REPORTING REQUIREMENTS

1. Evaluating Recipient Performance

2. Annual Reports

(a) Written Narrative

(b) Modification Documentation

(c) Map

(d) Budget Table

(e) Match Table

(f) Narrative Budget

(g) Accomplishment Activity Table

(h) SF-429A

(i) Other Requirements

3. Semi-Annual or Quarterly Reports

4. Final Reports

(a) Accomplishment Activity Table

(b) GIS Shapefiles

(c) Real Property Documentation

(d) Final SF-429A

(e) Equipment Inventory

(f) Unused Supply Inventory

5. Property Documentation Submission

6. Extending Report Deadlines

SECTION I: PROPERTY MANAGEMENT

1. Continuing Obligations

(a) Project Purpose / Benefits:

(b) Perpetual Real Property Reporting:

2. Disposals

3. Compatible Uses

SECTION J: NONCOMPLIANCE

1. Evaluation

2. Consequences

3. Grounds for Specific Conditions

4. Specific Conditions

5. Suspension and Debarment

SECTION L: AUDITS AND MONITORING

1. Audit Requirements

2. Right to Access

3. Right to Monitor and Audit

SECTION A: Applicability and Authorities

The NAWCA Grant Program in Canada promotes partnerships between public agencies and organizations committed to conserving wetland ecosystems. The program focuses on: a) protecting, enhancing, restoring, and managing an appropriate distribution and diversity of wetland ecosystems and other habitats associated with wetland ecosystems and other fish and wildlife in North America; b) maintaining current or improving distributions of wetlands-associated migratory bird populations; and c) sustaining an abundance of waterfowl (ducks, geese, and swans) and other populations of wetlands-associated migratory birds consistent with the objectives of the North American Waterfowl Management Plan, U.S.

Shorebird Conservation Plan, Waterbird Conservation Plan for the Americas, Partners in Flight Bird Conservation Plan, and other international obligations contained in the treaties and migratory bird conventions and other agreements with Canada, Mexico, and other countries.

Proposals should demonstrate how their activities will support long-term conservation of wetland-dependent migratory birds and their habitats. NAWCA funds wetlands conservation projects that include one or more of the following: a) the obtaining of a real property interest in lands or waters, including water rights, of a wetland ecosystem and associated habitat if the obtaining of such interest is subject to terms and conditions that will ensure that the real property will be administered for the long-term conservation of such lands and waters and the migratory birds and other fish and wildlife dependent thereon; (b) the restoration, management, or enhancement of wetland ecosystems and associated habitat for migratory birds and other fish and wildlife species if such restoration, management, or enhancement is conducted on lands and waters that are administered for the long-term conservation of such lands and waters and the migratory birds and other fish and wildlife dependent thereon.

Under NAWCA, “Migratory Birds” includes all wild, native North American bird species North America that are protected under the Migratory Bird Treaty Act. The definition also covers species listed under the Endangered Species Act and nongame species defined under the Fish and Wildlife Conservation Act of 1980.

Property acquired with NAWCA funds must consist of wetlands and / or associated habitats. Likewise, all restoration, management, or enhancement activities must occur within wetland ecosystems and their associated habitats. While other habitat types may be included, wetlands remain the primary focus of the program.

1. Overview of Standards

These Standards apply to any project that:

• is granted Federal financial assistance approved under the authority of the North American Wetlands Conservation Act (NAWCA); and

• occurs on lands or waters under the jurisdiction of Canada.

The term “Federal” throughout these Standards is used to refer the United States Federal Government.

The term “FWS Program Office” for the purposes of these Standards refers to the U.S Fish and Wildlife Service Division of Bird Habitat Conservation in the Migratory Birds Program (FWS). When directed to contact the FWS for an awarded grant, recipients should contact the FWS Project Officer. For proposals, pre-award issues or closed grants, contact the FWS staff.

2. NAWCA Authorities

The authority of the North American Wetlands Conservation Act (NAWCA) grant program is 16 USC 4401 et seq., as amended. General provisions applicable to grants awarded by agencies of the U.S.

Department of the Interior, including definitions of terms used in this document, are in Title 2, Part 200, of the Code of Federal Regulations (CFR).

The Grant Administration Standards ensure that FWS clearly communicates expected outcomes (such as outputs, service performance, or public impacts of any of these), indicators, targets, baseline data, or data collections that the recipient is responsible for measuring and reporting per 2 CFR 200.301.

The laws, regulations, and policies governing NAWCA and Federal financial assistance take precedence over any summaries, interpretations, or guidance provided in this document. It is the responsibility of each applicant and recipient to remain informed of, and comply with, all applicable Federal financial assistance requirements established by statute, regulation and policy, including the cost principles and requirements outline in 2 CFR 200.400.

3. Applicability

These standards apply to NAWCA awards issued after the date of publication. Requirements may change mid-award as the statutes, regulations, and policy that the standards are based on may be revised or updated over time.

Section B: Grant Agreement

1. Grant Agreement Overview

The Grant Agreement consists of a Notice of Award (NOA) which incorporates these Standards, the Proposal and any approved modifications, and the recipient’s signed Standard Form 424 (SF-424), including required Financial Assistance Representation and Certification.

2. Binding Grant Agreement

Recipients accept their award by starting work, drawing down funds, or accept the award electronically.

Once an award is accepted, recipients are responsible for understanding and complying with all terms and conditions. Recipients must also ensure that any subrecipients or contractors involved in the project are aware of, and comply with, all relevant statutes, regulations, and award conditions. Award terms and conditions may change during the project period due to updated regulations, audits, or policy changes.

FWS will notify recipients of any changes, including a written description of the change and the date it becomes effective.

3. Termination

FWS may terminate the award, in whole or in part, if the recipient materially fails to comply with the terms and conditions of an award. FWS may also terminate this award with the recipient’s consent. In such cases, both parties must agree on the termination conditions, including effective date and, for partial termination, the specific portion of the award to be terminated. The recipient may terminate the award by providing written notice to FWS that explains the reason for such termination, effective date and, if only part of the award is being terminated, the specific portion to be terminated.

However, if the recipient requests a partial termination and FWS determines that the remaining portion of the award cannot achieve the original purpose of the award, FWS may terminate the entire award. In all cases involving partial terminations, FWS must consider the recipient’s responsibilities related to property management (if applicable) and the submission of required financial, performance, and other reports.

4. Subrecipients

If grant funds are subawarded to a subrecipient, the subrecipient is responsible for adhering to the Federal program requirements specified in the Federal award, including these Standards, the NAWCA Canada Eligibility Criteria, and CFR. For the purposes of this document, subrecipient and recipient are synonymous, and subrecipients have the same responsibilities as the recipients.

Section C: Eligibility

1. Eligibility Criteria

Eligible activities and costs for NAWCA awards are outlined in the NAWCA Canada Eligibility Criteria document. It is the responsibility of the applicant or recipient to ensure all proposed costs and activities are eligible.

2. Business Registration

To receive funds, the recipient must be registered to do business with the U.S. government and have a Unique Entity ID (UEI). Recipients can complete the registration process at https://www.sam.gov.

Registrations must be maintained annually.

3. Financial Assistance Representation and Certification

All recipients are required to read and agree to the representations and certifications in SAM accessed via https://www.sam.gov as a part of required registration.

Registrants are required to review and update the representations and certifications submitted to SAM as necessary, but at least annually, to ensure they are kept current, accurate, and complete. The representations and certifications are effective until one year from date of submission or update to SAM.

4. GrantSolutions

GrantSolutions (https://www.grantsolutions.gov/) is a Federally shared service for grant and management programs to support Federal agencies throughout the entire grant lifecycle. All applicants or recipients are required to be registered in and use GrantSolutions to implement the Federal award.

Applicants must properly set up a GrantSolutions account and obtain the correct user roles within the system. Recipients must have the following roles:

(a) Principal Investigator / Program Director (PI/PD)

• Views, initiated edits, and submits applications and amendments.

• Enters Federal Financial Report (FFR) data and submits FFR.

• Adds and views application and grant correspondence notes and uploads related files.

• Has access to grants assigned to as a PI or PD.

• A grant can have more than one PI/PD assigned to it, however the person listed on the application is considered key personnel.

(b) Administrative Official / Authorized Representative (ADO/GAO)

• Listed as the Authorizing Official on the NOA.

• Enters and submits FFR.

• Views, initiates, edits, and submits applications and amendments.

• Signs the SF-424 and authorizes the organization’s commitment to the Federal award.

• Adds and views application and grant correspondence notes and uploads related files.

• Has access to grants for the organization.

• This person must have their organization’s authority to have this role.

5. Risk Assessment

FWS must review the applicant’s responsibility and qualification records in SAM.gov before making an award (2 CFR 200.206). This is completed as part of a risk assessment that evaluates the organization’s financial stability, management systems and standards, history of performance, audit reports and findings, and the ability to effectively implement the requirements. The assessment will also include elements such as the quality of the application, award amount, risk associated with the program, and fraud risks.

https://www.sam.gov/ https://www.sam.gov/ https://www.grantsolutions.gov/

FWS must consider whether an applicant is qualified to receive an award if finding a reported termination for material failure to comply (2 CFR 200.341). A determination that an applicant is not qualified to receive an award based on the applicant’s prior record of performance or integrity or business ethics must be reported in SAM.gov (2 CFR 200.213).

The Federal agency may adjust specific conditions in the award based on an analysis of the recipient’s risk or the recipient’s history of compliance with the terms and conditions of prior awards (2 CFR 200.208). Specific conditions may include withholding authority to proceed to the next phase, requiring additional or more detailed financial reports, requiring additional project monitoring, or establishing additional prior approvals.

6. Financial Management System

A recipient must have a financial management system that complies with the Federal CFR and provides the following:

• Identification, in its accounts, of all Federal awards received and expended. Federal award identification must include the Assistance Listings title and number, Federal award identification number and year, and name of the pass-through entity, if any.

• Accurate, current, and complete disclosure of the financial results of each Federal award.

• Records that identify adequately the amount, source and expenditure of funds for Federal awards including all grant and match-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation.

• 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.

• Comparison of expenditures with budget amounts for each Federal award.

• Written procedures for determining the allowability of costs.

All recipient and subrecipient financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by the terms and conditions; and tracking expenditures to establish that funds have been used in accordance with Federal statutes, regulations, and the terms and conditions of the Federal award.

Section D: Financial Administration

1. Allowable Costs

Grant and match funds may be used to cover costs necessary to carry out the purpose of the award as described in the Scope of Work section of the NOA if the costs are allowable, reasonable, and allocable as described in 2 CFR 200, Subpart E, as well eligible per the NAWCA Canada Eligibility Criteria and these Standards.

Grant and match funds may not be used for recurrent payments to landowners or other costs described as ineligible in the CFR, the NAWCA Canada Eligibility Criteria, these Standards, or other documents incorporated into the NOA.

Unless a grant or match cost is explicitly allowed, the cost should be assumed to be ineligible unless otherwise informed in writing by the FWS.

2. Period of Performance

The Period of Performance is defined as the time interval for conducting the approved work under the Federal award. The period of performance will be designated in the NOA and will be determined by the https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E length of time needed to complete the award as described in the proposal. FWS guidance states that awards should have a one- to two- year period of performance, however it is recognized some projects may require longer period of performance, not to exceed five years. The terms “project period”, “funding period” and “performance period” are considered synonyms for period of performance.

Grant and match funds must be obligated during the period of performance, except for any eligible pre-award costs (See Sections D-3: Pre-Award Costs and D-4: Matching Funds), which may be obligated prior to the funding period. A recipient obligates funds (i.e., incurs costs) by placing an order, signing a contract, or receiving goods or services. All obligations must be paid in full within 120 days of the period of performance end date. For real property acquisitions, funds are considered obligated at the time of closing or when title is taken.

3. Pre-Award Costs

Pre-award costs (2 CFR 200.458) are expenses, whether charged to the grant or used as match, that are incurred before the official start date of the Federal award. These costs must be directly related to negotiating or preparing for the NOA and must be necessary for the efficient and timely completion of the award. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the NOA and only with the written approval of the FWS. All pre-award activities must comply with all laws, regulations, and policies applicable to NAWCA. If approved, pre-award costs must be charged to the first year of the award.

To qualify for reimbursement, recipients must show in their proposals that pre-award activities are necessary and reasonable for achieving the project’s objectives and would have been approved if they had occurred during the period of performance. Proposals must clearly state whether pre-award costs are being requested. A detailed description of the proposed costs and an explanation of why pre-award costs are necessary must be included in the proposal.

FWS will authorize pre-award costs only if they:

• Do not exceed the amount of the grant funds awarded.

• Are necessary to complete the project within the period of performance.

• For grant-funded pre-award costs, were not incurred before the date FWS received the proposal

(see Section F-2 for real property acquisition).

• For match-funded pre-award costs, were not incurred before January 1 of the calendar year two years prior to the date FWS received the proposal (see Section F-2 for real property acquisition);

and

• Would have been allowed if incurred during the period of performance.

Pre-award costs are incurred before an NOA is issued, and therefore they are incurred at the applicant’s risk.

FWS will not reimburse the recipient for acquiring real property interests if the property is purchased before FWS receives the proposal. However, at their own risk, a recipient may enter into a contractual commitment to acquire the property before FWS receives the proposal, purchase the property after the proposal has been submitted, and then receive reimbursement once the NOA is issued. All approved pre-award activities must comply with the real property acquisition requirements.

4. Matching Funds

(a) Match:

NAWCA requires at least a 1:1 match, with at least 50% of that match coming from U.S. sources.

Match funds must be used to accomplish the purposes of the project and cannot have been previously used as match for any other Federally funded award. By the end of award’s period of performance, the total amount of U.S. non-Federal and Canadian match must equal the amount committed in the https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRed1f39f9b3d4e72/section-200.458 proposal and must meet the source requirements described above.

All match costs must be:

• Tied to an eligible activity.

• Allowable, reasonable, and allocable under 2 CFR 200, (Subpart E).

• Verifiable in the recipient’s or subrecipient’s records.

• Not included as contributions for any other Federal award.

• Provided in the approved budget period.

Unless otherwise stated in these Standards, both grant and match contributions are treated as part of the award and are subject to the same requirements.

Any match activity that lacks adequate supporting documentation may be disallowed by the FWS.

(b) Old Match:

If pre-award costs are requested in the proposal and approved in advance, in-kind match providers may acquire real property, supplies, or services, or contribute their own personnel time, for the proposed award dating back to January 1 of the calendar year two years before the year in which FWS receives the Proposal. The contributions are treated as “old match” and must meet all pre-award requirements.

(c) Non-Match:

Non-match funds, sometimes also referred to as overmatch, are excess Canadian-sourced funds that exceed the 50% threshold of the total required matching contribution and therefore cannot be counted as match. The use of non-match must be described in the proposal and documented in annual and final reports. SF-429 tract tables must report grant, match and non-match funds.

Non-match funds may only be included if they are related to the award objectives and are directly integrated with grant or match funds. It is imperative to estimate and disclose the amounts and use of non-match funds in the proposal, so that it is transparent how these funds are related to and will be integrated with grant and match funds.

All activities included in the NAWCA award must have a NAWCA Interest (grant or match). If the FWS determines that an activity does not have sufficient grant or match investment, the associated costs may be disallowed. The proposed NAWCA interest must be achieved. Excess non-match beyond the proposed amounts may also be disallowed if these costs are deemed unrelated or if they alter how the grant and match funds are intended to be used in the project. NAWCA budgets may not be modified to repurpose cost savings for other uses than what was proposed and approved by Council and MBCC.

(d) Accounting and Records:

The recipient must maintain thorough records, including supporting documentation, for every grant and match expenditure. Annual and final reports must include enough detail to clearly document how all grant, match and non-match funds were used.

For in-kind match, accounting records must show how the value was calculated (for example, the number of volunteer hours contributed, and the rate applied, or the number of personnel hours donated and the rate used).

If requested by FWS, the recipient must make all such records available for review.

5. Indirect Costs https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E

Indirect costs are allowable for both grant and match funds. These costs must be calculated using an approved method, such as an approved negotiated indirect cost rate or the 15% de minimis rate. (2 CFR 200.414).

Recipients with a negotiated indirect cost rate must provide a copy of their negotiated rate agreement(s) to the FWS Project Officer or the point of contact identified in the NOA. If the period of performance extends beyond the expiration date of the current rate agreement, the recipient may need to submit additional agreements during the award period.

If a recipient does not establish an approved rate and provide the required documentation during the award period, all costs that would otherwise be treated as indirect become unallowable. Requirements for developing and submitting indirect cost rate proposals are outlined in Appendix IV of 2 CFR Part 200 (for nonprofit organizations).

Recipients and subrecipients without a current Federal negotiated indirect cost rate may elect to use a de minimis rate of up to 15% of modified total direct costs (MTDC). The de minimis rate does not require supporting documentation and may be used indefinitely. Once elected, it must be applied to all Federal awards until the organization chooses to negotiate a rate.

All costs must be charged consistently as either direct or indirect and may not be double charged.

6. Program Income

Program income is the gross income earned by a recipient that is directly generated by a supported activity or earned as a result of the Federal award during the period of performance (2 CFR 200.307).

Because program income requires prior written approval (2 CFR200.407), recipients must describe any anticipated program income in their proposal.

Program income must be used for the original purpose of the Federal award. Income earned during the period of performance may only be used for eligible costs incurred during that period or for allowable closeout costs. Unless otherwise specified, recipients must use the additive method, meaning program income is added to the funds committed to the NOA. Program income may not be used to meet cost-sharing or matching requirements, and recipients may not deduct the cost of generating program income.

Any income generated outside the period of performance is retained by the recipient. FWS encourages recipients to use such income to support wetland conservation efforts consistent with the NAWCA program.

7. Interest (refer to 2 CFR 200.305)

8. Returning Funds

If funds are to be returned to FWS, contact FWS for instructions. Unless otherwise established in a Treasury-State agreement, contract, repayment agreement, or by statute, FWS will charge a penalty, pursuant to 31 USC 3717(e)(2), not to exceed six percent a year on the amount due on a debt that is delinquent for more than 90 days. This charge will accrue from the date of delinquency, which will generally be 30 days from the date that the demand letter is emailed, mailed, or hand delivered.

9. Record Retention

Financial records, supporting documents, and all other records related to the award must be retained for three years from the date the final financial report is submitted, in accordance with 2 CFR 200.334.

Records for real property and equipment must be kept for three years after their final disposition. The Federal awarding agency, Inspector General, the Comptroller General of the United States, and the pass-through entity, or any of their authorized representatives, must have the right of access to any documents, https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455/section-200.414 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRd93f2a98b1f6455/section-200.414 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/section-200.307 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-E/subject-group-ECFRea20080eff2ea53/section-200.407 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR4acc10e7e3b676f/section-200.334 papers, or other records of the non-Federal entity that are pertinent to the Federal award, to make audits, examination excerpts, and transcripts. The right also includes timely and reasonable access to the non- Federal entity’s personnel for the purpose of interview and discussion related to such documents.

Records pertaining to the acquisition of real property interests must be retained for the entire duration of real property interest.

10. Using Non-Match Funds

Grant and match dollars may be combined with non-match funds as long as the funds are eligible and necessary to meet the award objectives. All activities must have a NAWCA interest, meaning they must involve the use of grant or match funds. Grant or match funds in a project must be tied to acres delivered under the award. NAWCA will hold an interest in all accomplishments.

For reporting purposes, the use of non-match funds must be clearly documented by reporting the amount of grant, match and non-match used at the tract level.

When NAWCA match and grant funds are utilized with non-match funds to acquire real property interest, the non-match funding provider must be notified that NAWCA will hold an interest in the accomplishments. The FWS Program Office must provide written approval before the acquisition occurs or the non-match is incorporated into the project. Activities must be carried out consistently with the NAWCA interest documented in approved proposals. In these cases, NAWCA’s percentage interest in an acquisition must be documented in the real property records and reviewed and approved by the FWS.

Applicants should direct all questions to FWS.

11. Currency Exchange Rates

Any potential gains from fluctuations in exchange rates may be used to further conservation objectives of the funded award. Otherwise, these funds must be returned to FWS. These funds may not be used on other Federal awards.

Project objectives should be achieved despite exchange rate fluctuations. If the ability to achieve objectives is compromised by fluctuations in exchange rates, recipients must contact the FWS.

Exchange rate gains or losses must be documented in annual and final reports.

12. Payment Requests

The process for requesting funds depends on the location of the bank where the electronically transferred funds will be directly deposited by the U.S. Treasury. Foreign recipients with a U.S. bank must enter their banking account information in SAM.gov. This will populate the banking data in FWS systems. Foreign recipients with foreign bank accounts must leave blank the account information in SAM.gov.

The following forms must be encrypted and emailed to the FWS to request a payment:

• A SF-270 Request for Advance or Reimbursement;

• An International Treasury Service (ITS) Payment Package Cover Sheet;

• A budget table for each NAWCA activity comparing the current amount requested, proposed budget, and total funds spent to date; and

• A brief description of the work associated with the payment request, organized by NAWCA activity, and if applicable, a list of real property acquisitions associated with the payment request.

Recipients should maintain documentation associated with each payment request. FWS may at any time request a list of all costs associated with a reimbursement request.

Payment methods must minimize the time elapsing between the transfer of funds from the Federal agency or the pass-through entity and the disbursement of funds by the recipient. Payments to a recipient must be limited to the minimum amounts needed and be timed with actual, immediate cash requirements of the recipient in carrying out the purpose of the approved project. The recipient must make timely payments to contractors in accordance with the contract provisions.

The following forms of funds must be spent before drawing down grant funds: rebates, contract settlements, audit recoveries and interest earned on such funds.

Section E: Equipment and Supplies

1. Purchasing and Management

A recipient may purchase and manage equipment or supplies in accordance with the applicable cost principles.

Equipment is tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost that equals or exceeds the lesser of the capitalization level established by the recipient for financial statement purposes, or $10,000. Equipment costs must be requested in the proposal and require pre-approval.

Title to all equipment acquired for the award will vest in the recipient. Equipment must be used for the award for as long as needed, regardless of whether Federal funding continues. Equipment must also be made available for use on other NAWCA-supported awards, provided such use does not interfere with the work for which the equipment was originally acquired. The recipient must maintain the equipment in good condition, consistent with the requirements of 2 CFR 200.313.

Equipment costs must relate directly to eligible project activities and must be obtained using the most cost-effective and feasible method:

• If equipment will be rented or leased solely for the award, use the cost of renting or leasing.

• If equipment will be used solely for the award is purchased within the project period, use the full purchase price.

• If equipment will be used on ineligible activities or outside of the award, calculate and use the cost relative to NAWCA only.

All proposed equipment costs (purchases, rentals, and leases) should be included in the proposal.

2. Inventory

Property records must be maintained and must include:

• A description of the property;

• A serial number or other identification number;

• The source of funding for the property;

• The entity holding title;

• The acquisition date and cost;

• Percentage of Federal participation in the project costs under which the property was acquired;

• The location, use, and condition of the property; and

• Final disposition information, including the date of disposal and sale price.

A physical inventory of the property must be conducted at least once every two years, and the results must be reconciled with the property records. A control system must be in place to ensure adequate safeguards against loss, damage, or theft, and any such incidents must be investigated. The recipient must also maintain the property in good condition through appropriate maintenance procedures.

If the recipient is authorized or required to sell the property, proper sales procedures must be used to ensure the highest possible return.

Records related to the acquisition of property must be retained for the full duration of the property.

3. Disposal of Equipment and Supplies

When equipment or supplies purchased with grant funds are no longer needed for the original purposes of the award, or for other activities currently or previously supported by NAWCA, the following disposition rules apply:

• Equipment or unused supplies with a current market value under $10,000 may be retained, sold, or otherwise disposed of with no further obligation to FWS.

• Equipment or unused supplies with a current market value over $10,000 may be retained or sold.

If sold, FWS is entitled to a share of the proceeds, calculated by multiplying the current market value (or sale proceeds) by the FWS percentage of participation in the original acquisition cost.

FWS may allow recipient to deduct and keep $1,000 from FWS’s share of the proceeds.

If the recipient does not take the required disposition actions, FWS may direct the recipient on how to proceed. FWS also reserves the right to transfer title to an eligible third party of its choosing when appropriate.

Section F: Real Property Acquisition

1. Prior Approvals

On August 30, 2019, the Department of Interior implemented the Financial Assistance Interior Regulation (FAIR) (2 CFR Part 1402) to meet the administrative requirements, cost principles, and audit requirements for Federal awards. Under these requirements, grant and match funds may not be used to acquire real property interests until the FWS has reviewed and approved the appraisal (or other approved valuation method), the SF-429B, and draft real property documentation.

The following documents must be submitted and approved in advance of any acquisition using grant or match funds:

• SF-429B, including an associated tract table if multiple tracts are being acquired; and

• An appraisal establishing the fair market value (FMV) of the specific NAWCA interest being acquired.

The SF-429B tract table must include the following for the NAWCA interest:

• Tract ID;

• Real property ownership type;

• Duration / period of interest;

• Wetland acres;

• Upland acres;

• Location (latitude / longitude);

• Proposed title holder;

• Fair market value;

• Proposed grant funds;

• Proposed match funds; and

• Proposed non-match funds.

An example SF-429B tract table is provided in Appendix III.

Before completing an acquisition or accessing grant or match funds, recipients are strongly encouraged to obtain FWS review and approval of:

• Draft purchase agreement;

• Notice to landowner / letter of just compensation;

• Bargain sale letter (if applicable); and

• Draft notice of Federal participation.

https://www.ecfr.gov/current/title-2/subtitle-B/chapter-XIV/part-1402/subpart-D/section-1402.329

2. Incurring Costs of Acquiring Real Property

Federal grant or matching funds may be used to pay for the following costs associated with acquiring real property:

• Fair market value of the real property interest;

• Real property valuation;

• Title insurance, provided the type and extent of coverage follow sound business practices and the rates are reasonable;

• Recording fees and similar costs, including transfer taxes, documentary stamps, evidence of title, boundary surveys, legal descriptions, and other expenses necessary to convey the property to the recipient. However, grant or match funds may not be used to pay costs incurred to perfect the owner’s title;

• Penalty costs and other charges for prepayment of any preexisting recorded mortgage entered in good faith; and

• The pro-rata real property taxes due at closing, but only for the period after the recipient obtains title effective possession (whichever occurs first). Taxes for which exemptions are available are unallowable.

Costs are considered incurred at the time title transfers. A contractual obligation to purchase property (e.g., purchase agreement) does not constitute an incurred cost. A purchase agreement may be executed at any time, and if title transfers after FWS receives the proposal, the associated costs may be reimbursed with grant funds. If the title transfers before FWS receives the proposal, the costs may only be used as match and cannot be reimbursed. Any obligation to purchase property before Federal funds are obligated is made at the recipient’s risk. All acquisitions must comply with Federal regulations.

3. Conservation Easements

The FWS must review and provide written approval of conservation easement language before grant or match funds may be used for the purchase. Any changes to previously approved easement language also require FWS approval. Easements lacking FWS approval may be disallowed as grant or match activities.

Easements must meet all real property requirements (see Section F: Real Property Acquisition) including identification of the specific acres in which NAWCA is receiving an interest. Easement terms, such as durations, retained landowner rights, and habitat protections, must align with the information provided in the proposal and valuation documents.

4. Leases

Leases must meet all real property requirements under 49 CFR.10, 2 CFR 200, 2 CFR Part 1402, and the Canadian Grant Administration Standards. An incentive payment cannot be classified as a lease, as landowner incentive payments are ineligible.

5. Appraisals

Real property interests must be appraised consistent with federal regulations in the FAIR (2 CFR 1402).

The appraisal must determine the value of the specific real property interests that NAWCA will acquire under the award. FMV must be based solely on vacant land value; no land improvement of any kind may be included in the valuation.

If an appraisal includes land or acreage that will not to be part of the NAWCA-funded real property interest, the recipient may not calculate a per-acre value and apply it to a subset of acres. Instead, any excluded portion must be identified and appraised separately so that it can be clearly removed from the overall valuation.

The acres included in the appraisal must match the acres in the performance reports and on all SF-429 forms. For acquisitions occurring after proposal submission, the appraisal must also designate FWS as an Intended User at the time of assignment.

The FWS may require additional documentation if the valuation appears insufficient or inconsistent with the appraisal’s analysis and conclusions.

The appraisal’s valuation date must be within one year of the date the purchase price was established through a contractual commitment (e.g., purchase agreement, exercised option) or statement of just compensation. If no such documents exist, the valuation date must be within 12 months of the actual property transfer.

For conservation easements, the appraisal must identify the FMV of the real property interest to be acquired in the easement.

To claim the difference between the sale price and market value as match, the seller must explicitly donate that value to the NAWCA grant or partner.

6. Market Value

The recipient may not use grant or match funds to pay more than FMV for any real property interest.

7. Mineral Rights

FWS can approve the acquisition of a fee title, lease, or conservation easement on properties where a third party will hold the mineral rights if:

• The likelihood of mineral extraction is extremely low; or

• The risk of mineral extraction interfering with the purpose of the acquisition is negligible.

If FWS is uncertain about the likelihood of mineral extraction, or whether potential extraction could interfere with the purpose of the acquisition, it may require the recipient or applicant to submit a supplemental Mineral Assessment Report as a condition of the award. The recipient must obtain written approval from FWS before using grant funds to obtain a Mineral Assessment Report.

An appraisal may include mineral interest only when mining or other forms of extraction are not occurring on or near the property. If an appraiser cannot competently evaluate mineral interests, they must obtain the services of specialized consultants. A separate or additional mineral appraisal may not be used.

8. Water Rights

The acquisition of water rights, whether alone or in conjunction with land acquisition, may be approved only when the rights provide a direct benefit to wetlands. Official documentation from the government agency responsible for water appropriation, such as an Application for Water Rights, Application to Appropriate Water, or an equivalent document, must be submitted with the first annual performance report.

9. Value of Timber

An appraisal may include timber value. If an appraiser cannot competently assess timber, they must obtain specialized consultation. A separate or additional timber appraisal may not be used.

The value of timber may be included only when there is no intent to commercially harvest the timber.

This restriction does not apply to timber removed as part of habitat management under a written management plan approved by the FWS. Timber harvested during the period of performance may qualify as program income.

10. Carbon

Before initiating a carbon credit program, recipients must ensure the program is consistent with the conservation objectives of the NAWCA protections on the property. The value of any carbon credits generated:

• Must not include the value of protection funded by the NAWCA award;

• May include only the value of any improvements made outside the NAWCA award that contribute to carbon sequestration; and

• Cannot be used as match toward a NAWCA award or other Federal programs.

Income generated during the period of performance must be identified as program income and added to the project using the additive method, to support eligible award activities.

11. Recording Documents

The recipient must submit the following documents for each real property interest acquired under the award:

(a) Evidence of Valuation

• If an appraisal is used, include the full appraisal and the appraiser’s signed certification and credentials.

• If an approved alternative valuation method is used, provide a detailed explanation of the methodology.

(b) Purchase Agreement / Fair Market Value Disclosure A signed and dated notice that includes:

• A legal description of the property;

• An offer to buy the real property;

• The fair market value;

• Amount offered as just compensation (if different from FMV); and

• A statement informing the seller that the buyer will be unable to acquire the property in the event negotiations fail to result in an amicable agreement.

(c) Signed Bargain Sale Statement (if applicable) If the donated land value is used as in-kind match, provide a signed statement from the seller confirming the donation of the difference between FMV and the sale price. The statement must include:

• Landowner’s name and signature;

• Date;

• Property description;

• Fair market value;

• Sale price; and

• Donated amount (FMV minus sale price).

(d) Proof of Payment Provide a signed closing statement (settlement or adjustment sheet) or other evidence showing that funds were transferred.

(e) Proof of Recorded Real Property Interest Submit a copy of the final, recorded deed, easement, or other real property document. Documents must show evidence they were signed and recorded in the appropriate lands record office.

(f) Notice of Federal Participation

A Notice of Federal Participation (NOFP) must be recorded for all real property interests acquired with grant or match funds, unless equivalent language is already included in the deed, easement, or other instrument. The NOFP runs with the land and alerts future parties that the property carries a U.S. Federal interest. The recipient must obtain prior written approval from FWS before the NAWCA interest is converted, sold, conveyed, or otherwise encumbered. Transactions that do not change the recorded real property interest do not need prior written approval.

The NOFP must include the following elements:

• Identification of the legal interest being encumbered;

• Name and address of the recipient, subrecipient, or other authorized title holder obtaining the interest in the real property;

• Reference to the NAWCA project title, NOA number, and the address(es) where the agreement is kept on file;

• The purpose of the project as described in the proposal or NOA;

• A statement that the recipient, subrecipient, or other authorized title holder obtaining the real property interest confirms its obligations to manage the real property interest pursuant to the NOA, the incorporated project proposal, and the purpose of the project;

• A statement that the recipient, subrecipient or other authorized title holder obtaining the interest in the real property hereby agrees to be bound by the terms of the NOA as they relate to the Property, including the obligation to ensure the long-term conservation of the property and to obtain the prior written approval of the U.S. Fish and Wildlife Service, Division of Bird Habitat Conservation, prior to the sale, conveyance, or encumbrance of the NAWCA acquired interest. If the NAWCA interest in converted, sold, conveyed, written off, or otherwise encumbered, an attributable share may be due to the FWS;

• A statement that the terms of the notice shall run with the property interest and be binding upon any designees and successors; and

• If the real property interest is in a province or municipality where encumbrances (e.g., easements) on real property automatically expire after a certain period, the NOFP must include a provision requiring re-recording of the encumbrance and / or the NOFP before the project property interests expire.

A sample NOFP is included in Appendix I.

(g) Real Property Report

A Real Property Status Report (SF-429A) with cover page must be completed for all grant and match acquisitions (fee and easements). Only one SF-429A is required per grant. If multiple tracts were acquired, the recipient may attach a tract table to the SF-429A. The tract table should be updated throughout the life of the award and submitted with annual reports. A final SF-429A tract table covering all acquisitions during the entire period of performance must be submitted no later than with the final report.

At a…