21-RFP 13 County Grants Policy.pdf

INCORPORATED COUNTY OF LOS ALAMOS

ADMINISTRATIVE PROCEDURE GUIDELINE

Index No. 0970 Effective: 07/01/2025

GRANTS POLICY

Index No. 0970 Grants Policy Effective: 07/01/2025

Table of Contents

I. PURPOSE 2

II. GENERAL RESPONSIBILITY 2

III. GRANTS MANAGEMENT RESPONSIBILITIES 3

IV. GRANT APPLICATIONS 5

V. GRANT AWARD AND ACCEPTANCE 8

VI. NON-FEDERAL GRANT COMPLIANCE 11

VII. FEDERAL GRANT COMPLIANCE 11

ALLOWABLE USE OF FUNDS

PAYMENT AND BILLING

PROCUREMENT

FINANCIAL MANAGEMENT SYSTEMS

COST SHARING AND MATCHING

PROGRAM INCOME

BUDGET REVISIONS

EQUIPMENT STANDARDS

RECORD RETENTION AND ACCESS

MONITORING AND REPORTING

SUBRECIPIENT MONITORING

GRANT CLOSEOUT

ANNUAL AUDIT

INTERNAL CONTROL OVER COMPLIANCE

VIII. RELATED DOCUMENTS 45

IX. DEFINITIONS 46

I. PURPOSE

The Incorporated County of Los Alamos (herein referred to as “the County”) strives to maintain a sound financial position by taking a fiscally conservative approach when assessing the viability of a grant application. In addition, the County strives to comply with all grant requirements by taking a disciplined and structured approach to managing grants by clearly defining department responsibilities and by establishing guidelines to ensure that compliance standards are met.

Therefore, the purpose of this policy is to serve as the framework to follow when applying for, accepting, and managing grants, to ensure the terms and conditions of the grant agreements are met, and to ensure the financial and administrative requirements for the County are met. This policy also serves as the framework to ensure compliance with Federal regulations and the terms of individual grant agreements, and to provide for adequate monitoring of grant activities.

II. GENERAL RESPONSIBILITY

The general responsibility for managing grants is shared by the following County Departments or Divisions:

A. The County Council (Council) has overall responsibility for budget policy decisions and budget approval. In accordance with the County’s Financial Policies, the Council shall review and approve application for and acceptance of significant, non-recurring grants during the fiscal year. The annual budget will recognize non-recurring grant revenues and expenditures only after Council acceptance of such grants.

B. The County Manager, or Utilities Manager, as applicable, has the ultimate responsibility for administrative program decisions and to ensure compliance with Federal and state requirements.

C. The Department Head (Department), or designee, has direct and primary responsibility for programmatic delivery, compliance with scope of work, tracking and reporting of financial and budget activity, and compliance with applicable Federal and state program requirements. This includes direct and primary responsibility for grant applications submitted and grants managed by external agencies on behalf of the County.

D. The Finance Division (Finance) has oversight responsibility for monitoring grant financial activity. In addition, Finance assists with financial review of grant awards and contracts, reviews the general ledger and other fiscal records to reflect accurate accounting and distribution of revenues and expenditures to appropriate accounts.

Finance is also responsible for preparing the Annual Comprehensive Financial Report (ACFR), which includes the presentation of a County-wide Schedule of Expenditures of Federal Awards (SEFA) and State Awards.

E. The Procurement Division has oversight responsibility for compliance with procurement requirements including Subrecipient agreements and vendor agreements.

The Procurement Division is responsible for coordinating with Finance required documentation for proper recording or disposition of equipment purchased by grant funds.

F. The Attorney’s Office has responsibility for reviewing grant agreements for legal compliance prior to acceptance and signature by the County Manager, or Utilities Manager, as applicable.

III. GRANTS MANAGEMENT RESPONSIBILITIES

A. Departments As required by this policy, primary grants management responsibility rests with the Department receiving the grant award. Consequently, Departments are responsible to perform the following:

1. Assess the feasibility of a proposed grant program or project which may include a cost-benefit analysis.

2. Management and overall compliance with grant requirements.

3. Maintain and retain files and documentation according to the grant and County requirements.

4. Prepare all grant reports, documents, reimbursement and pay requests on a timely basis, as required by the grant.

5. Develop budgets including necessary revisions and reallocations.

6. Monitor Program Income and matching and/or In-Kind contribution requirements.

7. Monitor revenue and expenditures to verify they are authorized and properly accounted for according to Federal and state regulations, legal requirements, underlying agreements, program objectives, County policy, and the terms and conditions of the grant award.

8. Inform the County Manager, or Utilities Manager, as appropriate, the Council, and Finance on any programmatic changes, and obtain any Resolutions required by the grant or grant application.

9. Ensure that grant expenditures are allowable and comply with scope of work activities;

do not exceed grant award amounts.

10. Communicate immediately with Finance regarding grants with a negative balance (un-reimbursable expenses). In conjunction with Finance, the Department must develop a corrective action plan to resolve any deficits.

11. Obtain Finance approval of any Indirect Cost budget and provide a complete copy of the budget with all supporting documents to Finance on a timely basis.

12. Reconcile and close expired grants within 120 days of the grant end date.

13. Ensure that department staff who are managing grants possess the necessary skills and knowledge and/or are appropriately trained as such.

B. Finance While each Department has staff assigned to manage and report the financial activities of grants, Finance will provide general and technical oversight and monitoring of all grant funds, which include, but are not limited, to the following:

1. Provide assistance to Departments, as needed, with financial aspects of grant management.

2. Provide assistance, as requested or necessary, to identify and coordinate trainings related to grant management and compliance.

3. Conduct a final review and approval of all reimbursement and pay requests prior to submission by the Department to the Grantor Agency.

4. Review pre-grant application information to ensure compliance with this policy.

5. Review grant budgets and make recommendations as necessary.

6. Establish an accounting structure for a Council-approved grant on the County’s financial system once all supporting documentation is provided.

7. Monitor grant expenditures and ensure they do not exceed grant awards (primary budget responsibility rests with the Department).

8. Assist Departments with resolving any budget deficit issues.

9. Review individual grant balances, at minimum, on a quarterly basis to identify

Departments that are not requesting reimbursement from the Grantor Agency on a timely basis. Departments that are not regularly claiming reimbursements will be contacted by Finance.

10. Provide Departments with a copy of the current Cost Allocation Plan, if needed, and provide support, guidance and direction to Departments to assist them with the preparation of their Indirect Cost budgets.

11. Review and recommend action necessary to correct any deficit in grant budgets.

12. Review and recommend action necessary to minimize lost interest earnings to the

General Fund due to negative cash positions in grant funds.

13. Review and recommend action necessary regarding departmental Indirect Cost rate plans. Ensure maximum reimbursement of all allowable Indirect Costs.

14. Consistent with Council policy, review Department spending to ensure that grant funds are used as a first source of funding if expenditures are allowable.

15. Review and recommend a corrective action plan when Departments are not in full compliance with this Grant Policy.

16. Administer and prepare the County’s Cost Allocation Plan.

17. Maintain and renew the County’s registration with the System for Award Management

(SAM). In order for the County to receive a Federal grant, it must be registered within SAM.

SAM is a government-wide registry for vendors doing business with the Federal government, and SAM registration requires annual renewal. SAM centralizes information about grant recipients and also provides a central location for grant recipients to change entity information.

IV. GRANT APPLICATIONS

Funding Opportunity Review and Approval Prior to a grant application being submitted, an analysis must be completed by the Department to determine if the funding opportunity aligns with the mission and vision of the County as presented in the annual budget and strategic plan. An analysis must also be completed by the Department to assess resources that will be needed and applicable compliance requirements to determine if the funding opportunity should be pursued.

Grant programs are most effective when they are developed to address real needs and are consistent with the County’s mission. Priority and approval are given to projects that support:

1. Resources and equipment for projects to which the County is already committed;

2. Other elements of projects to which the County is already committed;

3. New projects that enhance specific aspects of the County’s missions and current priorities and are self-supporting for their duration;

4. New initiatives that may not be self-supporting but would enhance specific areas of the County’s missions or current priorities.

The funding opportunity analysis shall be prepared and approved by appropriate staff prior to application submission. Referenced herein is Appendix A, Grant Analysis and Financial Matrix Form, and illustrated in Appendix A-1, Pre-Grant Application Approval Process.

Proposed Grant Budgets An appropriate and anticipated grant budget shall be developed by the Department. Grant budgets are the financial reflection of the County’s programmatic plans and describe the costs to be incurred by the grant project. Grant budgets provide a framework for achieving the goals of the project given the resources available and serve as a means to communicate that framework consistently to all appropriate staff. Accurate budgeting and adherence to grant budgets results in more efficient operations and increases the probability of achieving project results while still maintaining compliance with funding agency regulations.

Whenever possible, grant budget planning should be conducted with a focus on maximizing efficiency and coordination of available resources.

Grant budgets must:

1. Accurately reflect project objectives;

2. Identify all required matching, earmarking or set-aside requirements;

3. Consider and incorporate any expected sources of Program Income or funding support;

4. Be correctly allocated according to all applicable rules and guidelines;

5. Cover all direct and indirect project costs and any forecasted salary, benefit, service, or supply rate increases;

6. Comply with all grant-imposed guidelines and regulations;

7. Be prepared and submitted according to prescribed deadlines;

8. Be reviewed and approved by the granting agency, if required;

If the Department determines that the Grant Amount cannot be absorbed in current appropriations, a budget revision will need to be approved by Council if awarded.

The County shall not apply for grants that, either create new staff positions or support existing positions, either permanent or limited term, unless specifically approved by the

Council, on a case-by-case basis at the recommendation of the County Manager or Utilities Manager, as appropriate.

Authority To Approve Grant Application and Proposals/Approving Authority In accordance with existing procurement policies and guidelines, the Department Head is the approving authority for one-time grant applications that are $20,000 or less, inclusive of the required match amount. The County Manager is the approving authority for one-time grant applications over $20,000, but less than $300,000, inclusive of the required match amount. The Council is the approving authority for one-time grant applications that are over $300,000, inclusive of the required match amount.

The Grant Applicant is always the Incorporated County of Los Alamos. Any grant applications by outside or external agencies on behalf of the County shall follow the same policies and guidelines contained herein.

Grant Application Review and Approval All grant applications (including renewals) must be reviewed and approved by the Department prior to the submission deadline to ensure that proposed programs are consistent with the County’s priorities as outlined in the annual budget and strategic plan and that they have the administrative and program capacity required for success. In addition to the grant application, the following information must be reviewed and approved by the Department:

1. Program budgets and/or budget narratives;

2. Information that commits the County to terms and conditions, if available;

3. Program subject matter and contents;

4. Matching requirements that obligate the County.

For Ongoing or Recurring Grant applications, Departments are required to request approval from the Council of their intent to apply for all recurring grants, and the anticipated amount of grant funding. This information must be included in the Schedule of Recurring Grants section of the annual budget. Departments are required to obtain the approval of the Council prior to submitting an application for grant funding for any type of deviation from this policy. The information provided to the Council for consideration must be clear and describe the nature of the deviation(s).

Any Ongoing Program Costs, which Departments wish to continue once the grant funding has been depleted, must be identified and submitted to the approving authority for approval.

The Department must present analysis and information, as required in Appendix A, Grant Analysis and Financial Matrix Form, to assist the approving authority in deciding whether the County should fund expenses for the project or program from other County funds following the depletion of the grant funds.

Capital Outlay Legislative Appropriations Capital outlay legislative appropriations shall be approved by the Council through the Infrastructure Capital Improvement Plan (ICIP) prior to acceptance. Notification of legislative appropriation shall be provided by the Department to the Finance Division, the Procurement Division, the Attorney’s Office, and County Manager’s Office immediately after it is known that an appropriation was made by the State of New Mexico by means of Appendix B, Notice of Legislative Appropriation (NOLA) Form.

V. GRANT AWARD AND ACCEPTANCE

Grant Award Procedures After a grant award has been made, the following steps shall be taken in a timely manner by the Department:

1. Review the terms and conditions, performance period, award amounts, and budgets associated with the award. All compliance requirements, including reporting requirements under the grant agreement shall be reviewed and understood.

2. Negotiate terms of the grant agreement with the granting agency to meet County goals and policies.

3. Notify Finance that an award has been made and provide a copy of the award and/or unsigned grant agreement.

4. Notify the County Attorney’s Office that an award has been made and provide a copy of the award and/or unsigned grant agreement for legal review.

5. For Federally funded grants, ensure that an Assistance Listing Number (ALN) is provided by the funding agency for each award.

6. Make a request to Finance to create a new general ledger or project accounting code that is unique for the grant. New accounting codes shall be established for the receipt and expenditure categories in line with the grant or contract budget.

7. An electronic file shall be established for each grant and saved and shared with Finance, Procurement Division, Attorney’s Office, and the County Manager’s Office, in a location designated by Finance and acceptable to Records Information Management (RIM). The file must contain the proposal, all correspondence regarding the grant, the final signed award document and all reports submitted to the funding sources.

8. If a grant is accepted by the County and the Department determines that the Grant Amount cannot be absorbed in current appropriations, a budget revision must be approved by Council. However, if the grant is listed on the Schedule of Recurring Grants in the Approved Budget Book, the grant will not require Council approval.

Grant Acceptance Procedures For all grant awards, the following procedures shall apply prior to any grant acceptance:

1. Departments may seek approval and signature from the County Manager, Utilities

Manger, or Council Chair, as required, for grant award and acceptance provided that the following has occurred first:

a. A copy of the grant application, grant award, and grant agreement have been provided to the Finance Grants Manager.

b. The grant agreement has been reviewed by the County Attorney. The grant agreement must be in a form that is acceptable to the County Attorney prior to requesting signature from the County Manager, or the Utilities Manager, as appropriate.

c. Confirm that all terms of the grant are in compliance with this policy and the information presented in the Matrix Form during the grant application stage is consistent with the grant award.

2. If the information presented on the Matrix Form during the initial grant application is not consistent with the actual grant award, the following must occur first before seeking approval and signature from the County Manager, Utilities Manager, as appropriate, or Council Chair, as required:

a. Departments shall complete and resubmit the Matrix Form to Finance to reflect the actual terms of the grant award. Departments shall comply with the authorization process described in this Policy.

b. Approvals on the Matrix Form must be obtained prior to acceptance of grant award, and a copy must be provided to the Finance Grants Manager.

c. The grant agreement must be in a form that has been approved by the County Attorney.

Referenced and included herein is Appendix A-2, Grant Award and Acceptance Flow Chart.

Authority to Execute Grant Agreements Unless otherwise required by the granting agency, the County Manager is solely authorized to execute grant agreements on behalf of the County, or the Utilities Manager for Utility agreements only. The grant agreement must be fully executed prior to any funds being obligated or expended.

Compliance with Laws, Regulations and Provisions of Awards The County recognizes that as a recipient of grant funds, it is responsible for compliance with all applicable laws, regulations, and provisions of contracts and grants. To ensure that the County meets this responsibility, the following policies apply with respect to every grant or contract received directly or indirectly:

1. The County is responsible for ensuring compliance with Federal funding agency requirements, including, as applicable, ensuring compliance with 2 CFR Part 200, and managing budgetary aspects.

2. The County shall take all reasonable steps necessary to identify applicable changes in laws, regulations, and provisions of contracts and grants. Steps taken in this regard shall include, but not be limited to, reviewing subsequent grant renewals, reviewing revisions to the 2 CFR Part 200 Federal Office of Management and Budget, Uniform Grant Guidance and related Compliance Supplements, and communications with awarding agency personnel.

3. The County shall cooperate with the Independent Auditors by informing the Independent Auditor(s) as to applicable laws, regulations, and provisions of grants and communicating known instances of noncompliance with laws, regulations, and provisions of grants to the Independent Auditor(s).

Mandatory Disclosure for Federal Grants In accordance 2 CFR §200.113, the County must promptly disclose whenever, in connection with a Federal grant award (including any activities or subawards thereunder), it has credible evidence of the commission of a violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations found in Title 18 of the United States Code or a violation of the civil False Claims Act (31 U.S.C. 3729–3733) and Appendix XII to 2 CFR Part

200. The disclosure must be made in writing to the Federal agency, the agency’s Office of the Inspector General, and pass-through entity, if applicable.

VI. NON-FEDERAL GRANT COMPLIANCE

All non-federal grants are subject to individual grant agreement terms and conditions for allowable use of funds and any other reporting and compliance requirements, including all applicable laws and County policies.

It is the policy of the County that only costs that are reasonable, allowable and allocable to a non-Federal grant award shall be charged to that grant award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger to ensure that unallowable costs are not charged to non-Federal grant awards.

VII. FEDERAL GRANT COMPLIANCE

A. ALLOWABLE USE OF FUNDS

It is the policy of the County that only costs that are reasonable, allowable and allocable to a Federal grant award shall be charged to that grant award directly or indirectly. All unallowable costs shall be appropriately segregated from allowable costs in the general ledger to ensure that unallowable costs are not charged to Federal grant awards.

Segregating Unallowable Costs From Allowable Costs The following steps shall be taken to identify and segregate costs that are allowable and unallowable with respect to each Federal grant award:

1. The budget and grant or contract for each grant award shall be reviewed for allowable or unallowable costs.

2. The Department Grant Manager shall be familiar with the allowability of costs provisions of 2 CFR Part 200 Subpart E—Cost Principles, particularly:

a. The list of specific unallowable costs, such as alcoholic beverages, bad debts, contributions, fines and penalties, lobbying, etc.

b. Those costs requiring advance approval from Federal agencies to be allowable in accordance with 2 CFR §200.407 Prior written approval.

3. No costs shall be charged directly to any Federal grant award until the cost has been determined to be allowable under the terms of the award and/or 2 CFR Part 200 Subpart E—Cost Principles.

4. For each Federal grant award, an appropriate set of general ledger accounts and project codes shall be established in the chart of accounts to reflect the categories of allowable costs identified in the grant award or the award budget.

5. All items of miscellaneous Program Income or credits, including the subsequent write-offs of uncashed checks, rebates, refunds, and similar items, shall be reflected for grant accounting purposes as reductions in allowable expenditures if the credit relates to charges that were originally charged to a Federal grant award or to an activity associated with a Federal grant award. The reduction in expenditures shall be reflected in the year in which the credit is received (i.e. if the purchase that results in the credit took place in a prior period, the prior period shall not be amended for the credit.)

6. Any significant variances between actual and budgeted expenditures noted must be discussed and resolved by the Department Grant Manager prior to requesting payment.

Criteria for Allowable Costs It is the policy of the County that all costs must meet the following criteria to be treated as allowable direct or Indirect Costs under a Federal grant award:

1. The cost must be “necessary” to the overall operation of the County, and is assignable in part to the Federal grant award in accordance with the principles of 2 CFR Part 200 and any other applicable awarding agency regulations.

2. The cost must be "reasonable" for the performance of the award, considering the following factors:

a. Whether the cost is of a type that is generally considered as being necessary for the operation of the County or the performance of the award;

b. Restraints or requirements imposed by such factors as sound business practices, arm's length transactions, Federal, state, local laws and regulations, and the terms and conditions of the award;

c. Whether the individuals concerned acted with prudence in the circumstances considering their responsibilities to the County, its employees, where applicable its students or membership, the public at large, and the Federal Government;

d. Consistency with established policies and procedures of the County;

deviations from which could unjustifiably increase the costs of the Federal award.

3. The cost must be "allocable" to a grant award by meeting one of the following criteria:

a. The cost is incurred specifically for a Federal grant award; or

b. The cost benefits both the Federal grant award and other work of the County, and can be distributed in proportions that may be approximated using reasonable methods.

4. The cost must conform to any limitations or exclusions of 2 CFR Part 200 or the Federal grant award.

5. Treatment of costs must be consistent with policies and procedures that apply uniformly to both Federally-funded and other activities of the County.

6. Costs must be accorded consistent treatment; a cost may not be assigned to a Federal grant award as a direct cost if any other cost incurred for the same purpose in like circumstances has been allocated to the Federal grant award as an Indirect Cost.

7. The cost must be determined in accordance with generally accepted accounting principles (GAAP).

8. Costs may not be included as a cost or used to meet cost sharing or matching requirements of any other Federally-funded program in either the current or a prior period.

9. The cost must be adequately documented to demonstrate that the cost is reasonable, necessary, and properly allocated.

10. If a cost is reimbursable to an employee, an itemized receipt must be included with support documentation.

11. Administrative closeout costs may be incurred until the due date of the final report(s). If incurred, these costs must be liquidated prior to the due date of the final report(s) and charged to the final budget period of the grant award unless otherwise specified by the Federal agency. All other costs must be incurred during the approved budget period.

It is the policy of the County to only charge costs that have been determined to be allowable per grant agreements and 2 CFR Part 200, Subpart E. Referenced and included herein is Appendix C, Cost Allowability Matrix.

Direct Costs Direct costs are allocable to a particular Federal grant award or other cost objective if the goods or services involved are chargeable or assignable to that Federal grant award or cost objective in accordance with relative benefits received. This standard is met if the cost:

1. Is incurred specifically for the Federal grant award.

2. Benefits both the Federal grant award and other work of the County and can be distributed in proportions that may be approximated using reasonable methods.

3. Is necessary to the overall operation of the County and is assignable in part to the Federal grant award in accordance with the principles herein.

Each invoice shall be coded with the appropriate account number reflecting which program received direct benefit from the expenditure. Invoices are submitted by the Department Grant Manager, reviewed and approved by the Department Head.

Salaries and Wages Charges to Federal grant awards for salaries and wages will be based on records that accurately reflect the work performed. These records:

1. Are supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;

2. Are incorporated into the official records of the County;

3. Reasonably reflect the total activity for which the employee is compensated, not exceeding 100% of compensated activities;

4. Encompass both Federally assisted and all other activities compensated by the County;

5. Comply with other established accounting policies and practices of the

County;

6. Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal grant award; and

7. May reflect categories of activities expressed as a percentage distribution of total activities.

Time sheets or personnel activity reports shall also be submitted on a regular basis reflecting employees' work and which programs directly benefited from their effort.

For those grants that support all activities of the employee, an applicable percentage will be charged to each funding source to ensure that the salary is only getting reimbursed by one granting agency. The appropriate Supervisor, or designee, shall be responsible for approving all timesheets.

Fringe Benefits Fringe benefits are allowances and services provided by the County to its employees as compensation in addition to regular salaries and wages. Fringe benefits include, but are not limited to, the costs of leave (annual, sick, or military, etc.), employee insurance, pensions, and unemployment benefit plans. Except as provided elsewhere in this Policy, the costs of fringe benefits are allowable provided that the benefits are reasonable and are required by law, agreement, or an established policy of County.

The cost of fringe benefits in the form of regular compensation paid to employees during periods of authorized absences from the job, such as annual leave, sick leave, holidays, court leave, military leave, administrative leave, and other similar benefits, are allowable if all of the following criteria are met:

1. They are provided under established written leave policies;

2. The costs are equitably allocated to all related activities, including Federal grant awards; and,

3. The accounting basis (cash or accrual) selected for costing each type of leave is consistently followed by the County or specified grouping of employees.

Supplies and Equipment Supplies means all tangible personal property other than those meeting the definition of equipment. Equipment is all tangible personal property (including information technology systems) having a useful life of more than one (1) year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the County for financial statement purposes, or $10,000. A computing device is a supply if the acquisition cost is less than the lesser of the capitalization level established by the County for financial statement purposes or $10,000, regardless of the length of its useful life. Equipment purchased for exclusive use on a Federal grant award and reimbursed by a Federal agency shall be accounted for as a direct cost of that award and the full amount will be included as a Federal expenditure.

Travel Travel costs are the expenses for transportation, lodging, subsistence, and related items incurred by employees who are in travel status on official business of the County. Such costs may be charged on an actual cost basis, on a per diem or mileage basis, or on a combination of the two, provided the method used is in accordance with the County’s Travel Policy.

If travel costs are charged directly to the Federal grant award, documentation must justify that participation of the individual is necessary to the Federal grant award; and the costs are reasonable and consistent with the County’s established Travel Policy.

The County will comply with the requirements of the Fly America Act (49 U.S.C.

40118) which generally provides that foreign air travel funded by Federal grants funds may only be conducted on U.S. flag air carriers and under applicable Open Skies Agreements. (see information on Fly America Act on the GSA website at https://www.gsa.gov/policy-regulations/policy/travel-management-policy/fly-america-act).

Conference Costs A conference is defined as a meeting, retreat, seminar, symposium, workshop, or event whose primary purpose is the dissemination of technical information and is necessary and reasonable for successful performance under the Federal grant award. Allowable conference costs paid by the County as a sponsor or host of the conference may include rental of facilities, speakers' fees, costs of meals and refreshments, local transportation, and other items incidental to such conferences unless further restricted by the terms and conditions of the Federal grant award. As needed, the costs of identifying, but not providing, locally available dependent-care resources are allowable. Conference hosts/sponsors must exercise discretion and judgment in ensuring that conference costs are appropriate, necessary, and managed in a manner that minimizes costs to the Federal grant award.

Participants Participant generally means an individual participating in or attending program activities under a Federal grant award, such as trainings or conferences, but who is not responsible for implementation of the Federal grant award. Individuals committing effort to the development or delivery of program activities under a Federal grant award (such as consultants, project personnel, or staff members for a https://lacnm.sharepoint.com/sites/Finance/Travel/Forms/AllItems.aspx?id=%2Fsites%2FFinance%2FTravel%2F0910%20%2D%2D%20Travel%20Policy%5FRevised%207%2D1%2D24%2Epdf&parent=%2Fsites%2FFinance%2FTravel https://www.gsa.gov/policy-regulations/policy/travel-management-policy/fly-america-act https://www.gsa.gov/policy-regulations/policy/travel-management-policy/fly-america-act recipient or Subrecipient) are not participants. Examples of participants may include community members participating in a community outreach program, members of the public whose perspectives or input are sought as part of a program, students, or conference attendees. Participant support costs mean direct costs that support participants and their involvement in a Federal grant award, such as stipends, subsistence allowances, travel allowances, registration fees, temporary dependent care, and per diem paid directly to or on behalf of participants.

Indirect Costs Indirect Costs are those costs that either benefit more than one award (overhead costs), or non-Federal function, or that are necessary for the overall operation of the County (management and general costs).

The County maintains an annual Indirect Cost budget that is prepared and submitted to the Cognizant or Oversight Agency by the Chief Financial Officer of the County. An extension may be requested to the Cognizant or Oversight Agency and may deemed appropriate if the activities of the County have not altered significantly from the previously approved Indirect Cost rate. If the automatic extension is not chosen or cannot be used, a new Indirect Cost budget is prepared and submitted to the Cognizant or Oversight Agency for approval. The Indirect Cost rate approved is used when determining the overhead applied to the modified direct costs of each Federal grant award for which Indirect Costs are approved.

In some instances, as allowed by the Federal grant, and at the discretion of the County, it may choose to use the de minimus rate of 15% on its Federal grant awards rather than negotiate an approved Indirect Cost rate.

B. PAYMENT AND BILLING

It is the policy of the County to maintain written payment and billing procedures.

Payment methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the County, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means.

The following policies shall apply to the preparation and submission of payments and billings to Federal awarding agencies under grant awards made to the County:

Advance Payments

1. Advance payments will be requested in accordance with the terms and conditions of the Federal grant award.

2. To the extent available, the County must disburse funds available from Program

Income (including repayments to a revolving fund), rebates, refunds, contract settlements, audit recoveries, and interest earned on such funds before requesting additional cash payments.

3. The funding agency must not require separate depository accounts for funds provided to the County or establish any eligibility requirements for depositories for funds provided. However, the County must be able to account for funds received, obligated, and expended.

4. Advance payments of Federal grant funds must be deposited and maintained in insured accounts whenever possible.

5. The County must maintain advance payments of Federal grant awards in interest-bearing accounts, unless the following apply:

a. The County receives less than $250,000 in Federal grant awards per year.

b. The best reasonably available interest-bearing account would not be expected to earn interest in excess of $500 per year on Federal cash balances.

c. 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.

6. Interest earned amounts up to $500 per year may be retained by the County for administrative expense. Any additional interest earned on Federal advance payments deposited in interest-bearing accounts must be remitted annually to the Federal Awarding Agency through an electronic medium using either Automated Clearing House (ACH) network or a Fedwire Funds Service payment.

7. Advance funds will be recorded into the general ledger as cash and unearned revenue. Funds will be considered earned and recognized as revenue when corresponding allowable costs are incurred.

Reimbursement or Pay Requests Reimbursement is the preferred method of the County unless grant documents require advance payment. The following policies shall apply to payments that are made by reimbursement request for Federal grant awards:

1. The County will request reimbursement after expenditures have been incurred when the grant award specifies this method.

2. Each grant award normally specifies a particular billing cycle; Therefore, a schedule is established for each grant to ensure that reimbursement is made on a timely basis along with any other reporting that is required.

3. Requests for reimbursement of grant award expenditures will use the actual amounts as posted to the general ledger as the source for all invoice amounts.

4. At the time payments (reimbursement) are received, revenue shall be recorded.

At the County’s fiscal year end, outstanding reimbursements shall be recorded as earned revenue on an accrual basis on June 30.

5. Reimbursement requests are prepared by the Department Grant Manager and submitted to the Finance Grants Manager for review. Reimbursement requests are submitted in the format preferred and required by the funding agency.

Report Adjustments To the extent the County identifies adjustments to amounts previously reported to Federal agencies, revised reports shall be prepared and filed in accordance with the terms of each Federal grant award.

Improper Payment In accordance with 2 CFR §200.53 improper payment means any payment that should not have been made or that was made in an incorrect amount (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements, and includes any payment to an ineligible party, any payment for an ineligible good or service, any duplicate payment, any payment for a good or service not received (except for such payments where authorized by law), any payment that does not account for credit for applicable discounts, and any payment where insufficient or lack of documentation prevents a reviewer from discerning whether a payment was proper.

Proper review of grant expenditures will be made prior to seeking payment to identify any unallowable costs. However, when errors or corrections are needed, the County will take prompt and appropriate actions to correct with the appropriate funding agency so that the total amount charged to the Federal grant is accurate, allowable, and properly allocated. The County will track improper payments to ensure that the risk associated with the discovery of an improper payment is not repeated, and to ensure that the risk is mitigated. An After-Action Review (AAR) will be performed by the Department, with assistance from Finance, to address the following:

• Why did the error occur?

• What is the remedy to correct the error?

• How will this error and correction be documented?

• What is the process for reallocating funds?

The County will implement effective corrective actions based on the root cause analysis.

C. PROCUREMENT

The County procurement policy is documented at:

https://lacnm.sharepoint.com/SitePages/Procurement-for-Employees.aspx.

It provides policy and guidance for day-to-day compliance with the Procurement Code, which is Chapter 31. “Procurement” of the Incorporated County of Los Alamos Municipal Code, at:

https://library.municode.com/nm/los_alamos_county/codes/code_of_ordinances?

nodeId=PTIICOOR_CH31PR

The Procurement Code governs all purchasing transactions of the County. It includes the following: “When a procurement requires the expenditure of Federal assistance or contract funds, the procurement is conducted in accordance with any mandatory applicable Federal laws or regulations. In the event of any inconsistency between the terms and conditions of this article and those of the Federal contract, the latter will govern.”

The County also has a Code of Conduct, which is included in Chapter 30. “Personnel and Labor Relations” of the Incorporated County of Los Alamos Municipal Code, at:

https://library.municode.com/nm/los_alamos_county/codes/code_of_ordinances?

nodeId=PTIICOOR_CH30PELARE

D. FINANCIAL MANAGEMENT SYSTEMS

It is the policy of the County to maintain a financial management system that provides for the following:

https://lacnm.sharepoint.com/SitePages/Procurement-for-Employees.aspx https://library.municode.com/nm/los_alamos_county/codes/code_of_ordinances?nodeId=PTIICOOR_CH31PR https://library.municode.com/nm/los_alamos_county/codes/code_of_ordinances?nodeId=PTIICOOR_CH31PR https://library.municode.com/nm/los_alamos_county/codes/code_of_ordinances?nodeId=PTIICOOR_CH30PELARE https://library.municode.com/nm/los_alamos_county/codes/code_of_ordinances?nodeId=PTIICOOR_CH30PELARE

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 includes 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 CFR §200.328 and §200.329 and reporting program performance. (See Monitoring and Reporting section below)

3. Maintaining records that sufficiently identify the amount, source and expenditures of Federal funds for Federal awards. These records must contain information necessary to identify Federal awards, authorizations, financial obligations, unobligated balances, as well as assets, expenditures, income and interest and shall be supported by source documentation.

4. Effective control over, and accountability for, all funds, property, and other assets.

The County will adequately safeguard all assets and assure that they are used solely for authorized purposes.

5. Ability to compare expenditures with budget amounts for each award to ensure total costs do not exceed the amounts budgeted for the grant period.

6. Written procedures to implement the requirements of 2 CFR §200.305 (See Payment and Billing section below).

7. Written procedures for determining the allowability of costs in accordance with 2 CFR Part 200 subpart E and the terms and conditions of the Federal award. (Refer to Allowable Use of Funds section herein).

E. COST SHARING AND MATCHING

For all Federal awards, the County will only claim cost sharing funds (including cash and third-party in-kind contributions, and also including funds committed by the County, or third parties) that meet the following requirements:

1. Are verifiable from the records of the County.

2. Are not included as contributions for any other Federal award.

3. Are necessary and reasonable for achieving the objectives of the Federal award.

4. Are allowable under 2 CFR Part 200 Subpart E – Cost Principles.

5. Are not paid by the Federal Government under another Federal award, except where the program’s Federal authorizing statute specifically provides that Federal funds made available for the program can be applied to cost sharing requirements of other Federal programs.

6. Are provided for in the approved budget when required by the Federal awarding agency.

7. Conform to all other provisions 2 CFR Part 200.

It is the policy of the County to value contributed services and property that are to be used to meet a cost sharing or matching requirement at their fair market values at the time of contribution, unless award documents or Federal agency regulations identify specific values to be used.

If a Federal awarding agency authorizes the County to donate buildings or land for construction or facilities acquisition projects or long-term use, the value of the donated property for cost sharing or matching must be the lesser of:

1. The value of the remaining life of the property recorded in the County’s accounting records at the time of donation.

2. The current fair market value. However, when there is sufficient justification, the Federal awarding agency may approve the use of the current fair market value of the donated property, even if it exceeds the value described above at the time of donation.

Contributed volunteer services furnished by third-party professional and technical personnel, consultants, and other skilled and unskilled labor used for cost sharing or matching purposes shall be valued at rates consistent with those rates paid for similar work in the organization. In cases in which the required skills are not found in the organization, rates used shall be consistent with those paid for similar work in the labor market. It is the policy of the County to require volunteers to document and account for their contributed time.

When a third-party organization furnishes the services of their employee, the County will value these services at the employee's regular rate of pay that is reasonable, necessary, allocable, and otherwise allowable, provided these services employ the same skill(s) for which the employee is normally paid by the third-party organization.

Unrecovered Indirect Costs, including Indirect Costs on cost sharing or matching may be included as part of cost sharing or matching only if prior approval of the Federal awarding agency is obtained.

F. PROGRAM INCOME

Program Income means gross income earned by the County that is directly generated by a supported activity or earned as a result of the Federal award during the period of performance. Program Income includes but is not limited to income from fees for services performed, the use or rental or real or personal property acquired under Federal awards, the sale of commodities or items fabricated under a Federal award, license fees and royalties on patents and copyrights, and principal and interest on loans made with Federal award funds. Program Income can also include contribution made by recipients of service and interest on such contributions.

Interest earned on advances of Federal funds is not Program Income. Except as otherwise provided in Federal statutes, regulations, or the terms and conditions of the Federal award, Program Income does not include rebates, credits, discounts, and interest earned on any of them.

Program Income earned during the project period shall be retained by the County and, in accordance with Federal awarding agency regulations or the terms and conditions of the award, shall be used in one or more ways:

1. Added to funds committed to the project by the Federal awarding agency and recipient and used to further eligible project or program objectives.

2. With prior approval of the Federal awarding agency, used to finance the cost sharing or matching requirement of the project or program.

3. Deducted from the total project or program allowable cost in determining the net allowable costs on which the Federal share of costs is based. (when an agency authorizes the disposition of Program Income as in paragraphs 1 or 2 above, Program Income in excess of any limits stipulated shall be used this way).

If the Federal awarding agency does not specify in its regulations or the terms and conditions of the award how Program Income is to be used, paragraph 3 above shall apply automatically to all projects or programs.

There are no requirements governing the disposition of Program Income earned after the end of the period of performance of the Federal award unless stipulated in the Federal agency regulations or the terms and conditions of the Federal award. The Federal agency may negotiate agreements with the County regarding appropriate uses of income earned after the end of the period of performance as part of the closeout process.

If authorized by Federal awarding agency regulations or the terms and conditions of the award, costs incident to the generation of Program Income may be deducted from gross income to determine Program Income, provided these costs have not been charged to the award.

G. BUDGET REVISIONS

It is the policy of the County to report deviations from budget or project scope or objective. It is also the policy of the County to request prior approval from Federal awarding agencies…