dodea standard grant tcs 28 april 2015 .pdf

Department of Defense Education Activity (DoDEA) Grant

DIVISION I: AWARD COVER PAGES

Type of award & Award Action: Grant – New Award

Grant Number: (to be completed at the time of award)

Total Grant Amount: (to be completed at the time of award)

Obligation and Effective date: (to be completed at the time of award)

Period of performance (Term): (to be completed at the time of award)

DoD awarding office (Grantor): Department of Defense Education Activity (DoDEA)

Procurement Division

4800 Mark Center Drive

Alexandria, VA 22350-1400

Administrator: Dawn Franklin, (571) 372-1452, dawn.franklin@hq.dodea.edu

Program Point of Contact: Fatimah Pierce, (571) 372-5871 fatimah.pierce@hq.dodea.edu

Recipient (Grantee): (full name & address to be completed at the time of award)

(Note- must match address associated with Unique Entity

Identifier)

Administrator: (name & contact information to be completed at time of award)

Program Direction: (name & contact information to be completed at time of award)

Grantee Identification Numbers & Information:

Unique Entity Identifier (SAM): (to be completed at time of award)

CAGE: (to be completed at time of award)

Indirect Cost Rate: (to be completed at time of award, if applicable)

Accounting and Appropriation Data: (to be completed at the time of award)

Obligation Table: (to be completed at the time of award)

Federal funds

Corresponding non-Federal share

(if applicable)

Total amount

Obligated or deobligated this action

Cumulative obligations to date, including this and previous actions

Planned project costs in the currently approved budget through the end of the period of performance, to include any future incremental funding obligations

Potential amounts, with exercise of any options for which amounts were predetermined

Award Statutory Authorities: This grant is issued pursuant to the authority of § 574 (d) of

P.L. 109-364, as amended; 10 U.S.C. § 2192(b) and 10 U.S.C. § 2193a mailto:dawn.franklin@hq.dodea.edu mailto:fatimah.pierce@hq.dodea.edu

DIVISION I: AWARD COVER PAGES

Catalog of Federal Domestic Assistance (CFDA): 12.556- Support for Student

Achievement at Military Connected Schools/SPED

Brief program description: Military-Connected Local Educational Agencies for Academic and

Support Programs (MCASP), which aims to strengthen family-school-community relationships and enhance student achievement for military dependent students.

This program is not research and development (R&D).

This award includes:

(A) Recipient’s Project Narrative- (to be inserted at time of award)

(B) Approved budget- (to be inserted at time of award)

(C) Specific Terms and Conditions- Division II of this document

(D) General Terms and Conditions- Division III of this document

Order of Precedence: The general terms and conditions in this document will not take precedence over any Federal statute or Federal regulation published in the Code of Federal

Regulations (CFR). The order of precedence of sources of requirements, if applicable to your award, is as follows: Federal statutes; Federal regulations in the CFR; Office of Management and Budget (OMB) guidance in the CFR, at 2 CFR § Part 200; award-specific terms and conditions; and general terms and conditions.

Amendments/Modification: The only method by which this grant or agreement can be modified is by a formal written modification signed by a DoDEA Grants Officer. No other communications, whether oral or written, shall constitute a modification. The Government is authorized to issue the following types of modifications unilaterally:

(a) Administrative changes (such as changes in paying office, appropriation data, etc.)

(b) No-cost extensions, provided the recipient has complied with the requirements of

DIVISION III/Subdivision B/FMS Article IV, section C of these terms and conditions.

(c) Changes authorized by clauses in the Grant or Agreement schedule (incremental funding, exercise of options, etc.)

(d) Changes authorized by these terms and conditions (property, termination, etc.)

FOR GRANTEE: FOR The United States of America, Department of Defense Education Activity:

(Signature) Dawn Franklin

Grants Officer

_________________________________ Grants Management Office

Name, Title, Date

DIVISION II: SPECIFIC TERMS AND CONDITIONS

(to be completed at time of grant award)

DIVISION III: GENERAL TERMS AND CONDITIONS

Subdivision A- PREAMBLE

PREAMBLE ARTICLE I - - TABLE OF CONTENTS (DECEMBER 2014)

SUBDIVISION B- ADMINISTRATIVE REQUIREMENTS

1. FINANCIAL AND PROGRAM MANAGEMENT (FMS ARTICLES)

FMS ARTICLE I- FINANCIAL MANAGEMENT SYSTEM STANDARDS (DECEMBER 2014)………………7

FMS ARTICLE II - - PAYMENTS (DECEMBER 2014)………………………………………………….8

FMS ARTICLE III - - ALLOWABLE COSTS, PERIOD OF AVAILABILITY OF FUNDS, AND FEE OR PROFIT

(DECEMBER 2014)………………………………………………………………………………...11

FMS ARTICLE IV - - REVISION OF BUDGET AND PROGRAM PLANS (DECEMBER 2014)………………13

FMS ARTICLE V - - NON-FEDERAL AUDITS (DECEMBER 2014)……………………………………..15

FMS ARTICLE VI - - [RESERVED]…………………………………………………………………...15

FMNS ARTICLE VII - - PROGRAM INCOME (DECEMBER 2014)………………………………………15

2. PROPERTY ADMINISTRATION (PROP ARTICLES)

PROP ARTICLE I - - TITLE TO PROPERTY (DECEMBER 2014)………………………………………..16

PROP ARTICLE II - - PROPERTY MANAGEMENT SYSTEM (DECEMBER 2014)………………………...18

PROP ARTICLE III - - USE AND DISPOSITION OF REAL PROPERTY (DECEMBER 2014)………………..19

PROP ARTICLE IV - - USE AND DISPOSITION OF EQUIPMENT AND SUPPLIES (DECEMBER 2014)……..20

PROP ARTICLE V - - [RESERVED]…………………………………………………………………..23

PROP ARTICLE VI - - INTANGIBLE PROPERTY (DECEMBER 2014)…………………………………..23

3. RECIPIENT PROCUREMENT PROCEDURES (PROC ARTICLES)

PROC ARTICLE I - - PROCUREMENT STANDARDS FOR STATES (DECEMBER 2014)…………………..24

PROC ARTICLE II - - PROCUREMENT STANDARDS FOR AN INSTITUTION OF HIGHER EDUCATION, NONPROFIT ORGANIZATION, LOCAL GOVERNMENT, OR INDIAN TRIBE (DECEMBER 2014)…………24

PROC ARTICLE III - - CONTRACT PROVISIONS FOR RECIPIENT PROCUREMENTS (DECEMBER 2014)…26

4. REPORTING (REP ARTICLES)

REP ARTICLE I - - PERFORMANCE REPORTING (DECEMBER 2014)………………………………….29

REP ARTICLE II - - FINANCIAL REPORTING (DECEMBER 2014)……………………………………..30

REP ARTICLE III - - REPORTING ON PROPERTY (DECEMBER 2014)………………………………….31

REP ARTICLE IV - - REPORTING ON SUBAWARDS AND EXECUTIVE COMPENSATION (DECEMBER

2014)……………………………………………………………………………………………..33

5. OTHER ADMINISTRATIVE REQUIREMENTS (AOR ARTICLES)

AOR ARTICLE I - - MAINTAINING RECIPIENT INFORMATION (DECEMBER 2014)…………………….33

AOR ARTICLE II - - RECORDS RETENTION AND ACCESS (DECEMBER 2014)…………………………34

AOR ARTICLE III - - REMEDIES AND TERMINATION (DECEMBER 2014)…………………………….36

AOR ARTICLE IV - - CLAIMS, DISPUTES AND APPEALS (DECEMBER 2014)………………………….38

AOR ARTICLE V - - COLLECTION OF AMOUNTS DUE (DECEMBER 2014)……………………………40

AOR ARTICLE VI - - CLOSEOUT (DECEMBER 2014)………………………………………………...41

AOR ARTICLE VII - - POST-CLOSEOUT ADJUSTMENTS AND CONTINUING RESPONSIBILITIES

(DECEMBER 2014)………………………………………………………………………………...41

5. REQUIREMENTS RELATED TO SUBAWARDS (SUB ARTICLES)

SUB ARTICLE I - -DISTINGUISHING SUBAWARDS AND PROCUREMENTS (DECEMBER 2014)………...42

SUB ARTICLE II - - PRE-AWARD AND TIME OF AWARD RESPONSIBILITIES (DECEMBER 2014)……

SUB ARTICLE III - - INFORMATIONAL CONTENT OF SUBAWARDS (DECEMBER 2014)……………….45

SUB ARTICLE IV- - FINANCIAL AND PROGRAM MANAGEMENT REQUIREMENTS FOR SUBAWARDS

(DECEMBER 2014)………………………………………………………………………………...46

SUB ARTICLE V - - PROPERTY REQUIREMENTS FOR SUBAWARDS (DECEMBER 2014)………………50

SUB ARTICLE VI - - PROCUREMENT PROCEDURES TO INCLUDE IN SUBAWARDS (DECEMBER 2014)...53

SUB ARTICLE VII - - FINANCIAL, PROGRAMMATIC, AND PROPERTY REPORTING REQUIREMENTS FOR

SUBAWARDS (DECEMBER 2014)…………………………………………………………………..54

SUB ARTICLE VIII - - OTHER ADMINISTRATIVE REQUIREMENTS FOR SUBAWARDS (DECEMBER

2014)……………………………………………………………………………………………..55

SUB ARTICLE IX - - NATIONAL POLICY REQUIREMENTS FOR SUBAWARDS (DECEMBER 2014)……...57

SUB ARTICLE X - - SUBRECIPIENT MONITORING AND OTHER POST-AWARD ADMINISTRATION

(DECEMBER 2014)………………………………………………………………………………...58

SUB ARTICLE XI - - REQUIREMENTS CONCERNING SUBRECIPIENTS’ LOWER-TIER SUBAWARDS

(DECEMBER

2014)……………………………………………………………………………………………..60

SUBDIVISION C- NATIONAL POLICY REQUIREMENTS (NP ARTICLES)

NP ARTICLE I - - NONDISCRIMINATION NATIONAL POLICY REQUIREMENTS (DECEMBER 2014)……66

NP ARTICLE II - - ENVIRONMENTAL NATIONAL POLICY REQUIREMENTS (DECEMBER 2014)……….66

NP ARTICLE III - - NATIONAL POLICY REQUIREMENTS CONCERNING LIVE ORGANISMS (DECEMBER

2014)……………………………………………………………………………………………..67

NP ARTICLE IV - - OTHER NATIONAL POLICY REQUIREMENTS (DECEMBER 2014)………………….68

SUBDIVISION D- PROGRAMMATIC REQUIREMENTS (PROG ARTICLES)

PROG ARTICLE I - - ACKNOWLEDGEMENT (APRIL 2014)…………………………………………..72

PROG ARTICLE II - - LIMITED RELEASE OF SENSITIVE BUSINESS INFORMATION (APRIL 2014)…….72

PREAMBLE ARTICLE II - - SCOPE (DECEMBER 2014)

These terms and conditions apply to all DoDEA grant awards made to an institution of higher education, nonprofit organization, State, local government, or Indian tribal government. These

Terms and Conditions are not applicable if the recipient is a for-profit entity. These general terms and conditions are designed to conform to OMB guidance, “Uniform Administrative

Requirements, Cost Principles, and Audit Requirements for Federal Awards,” published at 2

CFR Part 200 and implemented by DoD at 2 CFR Part 1103.

PREAMBLE ARTICLE III - - EFFECTIVE DATE (DECEMBER 2014)

The effective date of these terms and conditions is 28 April 2015.

PREAMBLE ARTICLE IV- - ENGLISH LANGUAGE (DECEMBER 2014)

All award information and correspondence must be in the English Language.

(1) You must translate any of the award content (including attachments to it and any material incorporated by reference) into another language to the extent that your compliance with the award’s terms and conditions depends upon a significant number of your employees who are not fluent in English being able to read and comprehend that content.

(2) If you do translate any award content into another language, either as required by paragraph (1) above or at your own initiative, the original award content in the

English language will take precedence in the event of an inconsistency between the award requirements in the English and translated versions.

PREAMBLE ARTICLE V - - PLAIN LANGUAGE (DECEMBER 2014)

This document uses plain language to communicate requirements, including personal pronouns

“you” to denote the recipient and “we” or “us” to denote DoDEA or another DoD Component.

PREAMBLE ARTICLE VI - - DEFINITIONS (DECEMBER 2014)

When these terms and conditions use a word or term that is defined 2 CFR part 200 subpart A

“Acronyms and Definitions”, the word or term has the same meaning as the definition provided in 2 CFR part 200 subpart A “Acronyms and Definitions” in effect on the effective date listed in

PREAMBLE ARTICLE – II “Effective Date” of this document. These definitions may be found at:

http://www.ecfr.gov/cgi-bin/text-idx?SID=7d2fe500c3cabfa5a0e16015844bb7d0&mc=true&node=sp2.1.200.a&rgn=div6 http://www.ecfr.gov/cgi-bin/text-idx?SID=7d2fe500c3cabfa5a0e16015844bb7d0&mc=true&node=sp2.1.200.a&rgn=div6 http://www.ecfr.gov/cgi-bin/text-idx?SID=7d2fe500c3cabfa5a0e16015844bb7d0&mc=true&node=sp2.1.200.a&rgn=div6

Subdivision B- ADMINISTRATIVE REQUIREMENTS

This subdivision includes all post-award and after-the-award requirements for recipients (with the exception of national policy requirements (which are in subdivision C) and specific program requirements (which are in subdivision D)) and is categorized by subject matter areas, as follows.

1. FINANCIAL AND PROGRAM MANAGEMENT (FMS ARTICLES)

FMS ARTICLE I - - FINANCIAL MANAGEMENT SYSTEM STANDARDS

(DECEMBER 2014)

Section A. System standard for States. As a State, you must expend and account for funds under this award in accordance with:

1. Applicable State laws; and

2. To the extent they comply with the requirements of Section B of this Article, your procedures for expending and accounting for your own State funds.

Section B. System standards for all recipients. Your financial management system must provide for:

1. Inclusion, in your accounts, of the following information about each DoD grant or cooperative agreement that you receive:

a. That you received it from the Department of Defense;

b. The number and title listed in the Catalog of Federal Domestic Assistance for the DoD program under which the award was made;

c. The DoD award number;

d. The year (your fiscal year) in which you received the award;

2. Accurate, current, and complete disclosure of the financial results of the award needed to comply with financial and programmatic reporting requirements that are specified in REP

Articles I and II of these general terms and conditions, as supplemented by any award-specific terms and conditions of this award concerning reporting requirements. If you are asked at any time under this award to report financial information on an accrual basis, you:

a. Need not establish an accrual accounting system if you maintain your records on a different basis; and

b. May develop the accrual data based on an analysis of the data you have on hand.

3. Records that identify adequately the sources of funds for all activities funded by DoD awards, including any required cost sharing or matching, and the application of those funds. This includes funding authorizations; your obligations and expenditures of the funds; unobligated balances; property and other assets under the award; program income; and interest.

4. Effective control over, and accountability for, all funds, property, and other assets under this award. You must adequately safeguard all assets and assure they are used solely for authorized purposes (see Section C of this article for additional requirements concerning internal controls).

5. Comparison of expenditures under this award for project or program purposes with amounts in the approved budget for those purposes.

6. [Reserved].

7. Written procedures:

a. To implement requirements specified in FMS Article II, “Payments;”

b. For determining the allowability of costs, which for this award are determined in accordance with FMS Article III, “Allowable costs, period of availability of funds, and fee or profit,” of these general terms and conditions, as supplemented by any award-specific terms and conditions of this award that relate to allowability of costs.

Section C. Internal controls. Your system of internal controls must conform to OMB guidance in

2 CFR § 200.303. With respect to paragraph (e) of 2 CFR § 200.303, your internal control system must include measures to safeguard any information that Federal statute, Executive order, or regulation requires to be protected (e.g., personally identifiable or export controlled information), whether generated under the award or provided to you and identified as being subject to protection.

FMS ARTICLE II - - PAYMENTS (DECEMBER 2014)

Section A. Awards to States. If the award-specific terms and conditions of this award do not identify it as an award subject to Subpart A of 31 CFR part 205 (Department of the Treasury regulations implementing the Cash Management Improvement Act), then this award is subject to

Subpart B of that part. Consistent with Subpart B of 31 CFR part 205:

1. Payment method, timing, and amounts. You must:

a. Minimize the time between your receipt of a payment under this award and your disbursement of those funds for program purposes.

b. Limit the amount of each advance payment request to the minimum amount you need to meet your actual, immediate cash requirements for carrying out the program or project.

c. Submit each advance payment request approximately 10 days before you anticipate disbursing the requested amount for program purposes, so that your receipt of the funds will be as close in time as is administratively feasible to your actual cash outlay for direct program or project costs and the proportionate share of any allowable indirect costs.

2. Interest. Unlike awards subject to Subpart A of 31 CFR part 205, neither you nor we will incur any interest liability due to a difference in timing between your receipt of payments under this award and your disbursement of those funds for program purposes.

Section B. Awards to institutions of higher education, nonprofit organizations, local governments, and Indian tribes.

1. Payment method. Unless the award-specific terms and conditions of this award provide otherwise, you are authorized to request advance payments under this award. That authorization is contingent on your continuing to maintain, or demonstrating the willingness to maintain, written procedures that minimize the time elapsing between your receipt of each payment and your disbursement of the funds for program purposes.

2. Amounts requested. You must:

a. Limit the amount of any advance payment request to the minimum amount needed to meet your actual, immediate cash requirements for carrying out the purpose of the approved program or project, including direct program or project costs and a proportionate share of any allowable indirect costs.

b. Exclude from any payment request amounts you are withholding from payments to contractors to assure satisfactory completion of the work. You may request those amounts when you make the payments to the contractors or to escrow accounts established to assure satisfactory completion of the work.

c. Exclude from any payment request amounts from any of the following sources that are available to you for program purposes under this award: program income, including repayments to a revolving fund; rebates; refunds; contract settlements; audit recoveries; and interest earned on any of those funds. You must disburse those funds for program purposes before requesting additional funds from us.

3. Timing of requests. For any advance payment you request, you should submit the request approximately 10 days before you anticipate disbursing the requested amount for program purposes. With time for agency processing of the request, that should result in payment as close as is administratively feasible to your actual disbursements for program or project purposes.

4. Frequency of requests. You may request payments as often as you wish unless you have been granted a waiver from requirements to receive payments by electronic funds transfer (EFT). If you have been granted a waiver from EFT requirements, the award-specific terms and conditions of this award specify the frequency with which you may submit payment requests.

5. Withholding of payments. We will withhold payments for allowable costs under the award at any time during the period of performance only if one or more of the following applies:

a. We suspend either payments or the award, or disallow otherwise allowable costs, as a remedy under OAR Article III due to your material failure to comply with Federal statutes, regulations, or the terms and conditions of this award. If we suspend payments and not the award, we will release withheld payments upon your subsequent compliance. If we suspend the award, then amounts of payments are subject to adjustment in accordance with the terms and conditions of

OAR Article III.

b. You are delinquent in a debt to the United States as defined in OMB Circular A-129, “Policies for Federal Credit Programs and Non-Tax Receivables,” in which case we may, after reasonable notice, inform you that we will not make any further payments for costs you incurred after a specified date until you correct the conditions or liquidate the indebtedness to the Federal

Government.

c. The award-specific terms and conditions include additional requirements that provide for withholding of payments based on conditions identified during our pre-award risk evaluation, in which case you should have been notified about the nature of those conditions and the actions needed to remove the additional requirements.

6. Depository requirements.

a. There are no eligibility requirements for depositories you use for funds you receive under this award.

b. You are not required to deposit funds you receive under this award in a depository account separate from accounts in which you deposit other funds. However, FMS Article I requires that you be able to account for the receipt, obligation, and expenditure of all funds under this award.

c. You must deposit any advance payments of funds you receive under this award in insured accounts whenever possible and, unless any of the following apply, you must deposit them in interest-bearing accounts:

i. You receive a total of less than $120,000 per year under Federal grants and cooperative agreements.

ii. You would not expect the best reasonably available interest-bearing account to earn interest in excess of $500 per year on your cash balances of advance payments under Federal grants and cooperative agreements.

iii. The best reasonably available interest-bearing account would require you to maintain an average or minimum balance higher than it would be feasible for you to do within your expected Federal and non-Federal cash balances.

iv. A foreign government or banking system precludes your use of interest-bearing accounts.

d. You may retain for administrative expenses up to $500 per year of interest that you earn in the aggregate on advance payments you receive under this award and other Federal grants and cooperative agreements. You must remit annually the rest of the interest to the Department of

Health and Human Services, Payment Management System, using the procedures set forth in

OMB guidance in 2 CFR § 200.305(b)(9).

Section C. Electronic funds transfer and other payment procedural instructions or information.

1. Electronic funds transfer. Unless the award-specific terms and conditions of this award provide otherwise, you will receive payments under this award by electronic funds transfer.

2. The Recipient shall use Wide Area Work Flow – Receipt and Acceptance (WAWF-RA) system when submitting requests for payment (invoices) under this Grant. The Recipient shall

(i) ensure an Electronic Business Point of Contact is designated in the System for Award

Management (SAM) database at https://www.sam.gov and (ii) register to use WAWF-RA at https://www.sam.gov/ https://wawf.eb.mil, within ten (10) days after award of the Grant. The Recipient must ONLY

REGISTER AS A VENDOR.

The Recipient shall submit Standard Form (SF) 270 – “Request for Advance or

Reimbursement”, found at www.whitehouse.gov/omb/grants/sf270.pdf, as an attachment/upload to each WAWF-RA payment submission. More than one SF270 may be uploaded with a single invoice. When entering the invoice into WAWF-RA, the Recipient shall enter the following Department of Defense Activity Address Codes (DODAAC):

OFFICE DODAAC

Administrative Office HE1254

Payment Office HQ0347

Issued By Office HE1254

Grant Approving

Office (Service

Acceptor Code)

HE1254

System for Award Management Registration (SAM) information (for Electronic Funds Transfer

(EFT)):

(table to be completed at the time of contract award)

UNIQUE

ENTITY

IDENTIFIER

TIN/EIN CAGE

CODE

FMS ARTICLE III - - ALLOWABLE COSTS, PERIOD OF AVAILABILITY OF

FUNDS, AND FEE OR PROFIT (DECEMBER 2014)

Section A. Allowable costs. This section, with the clarification provided in Section B, specifies which Federal cost principles must be used in determining the allowability of costs charged to this award, a subrecipient’s costs charged to any cost-type subaward that you make under this award, and a contractor’s costs charged to any cost-type procurement contract into which you enter under this award. These cost principles also govern the allowable costs that you or a subrecipient of a subaward at any tier below this award may consider when establishing the amount of any fixed amount subaward or fixed price procurement contract at the next lower tier.

The set of cost principles to be used in each case depends on the type of entity incurring the cost under the award, subaward, or contract.

1. General case. If you, your subrecipient, or your contractor is:

https://wawf.eb.mil/ http://www.whitehouse.gov/omb/grants/sf270.pdf

a. An institution of higher education, the allowability of costs must be determined in accordance with provisions of Subpart E of OMB guidance in 2 CFR part 200 other than 2 CFR §

200.400(g), supplemented by Appendix III to that part.

b. A hospital, the allowability of costs must be determined in accordance with provisions of

Appendix IX to 2 CFR part 200, which currently specifies the cost principles in Appendix IX to

45 CFR part 75 as the applicable cost principles.

c. A nonprofit organization other than a hospital or institution of higher education, the allowability of costs must be determined in accordance with provisions of Subpart E of OMB guidance in 2 CFR part 200 other than 2 CFR § 200.400(g), supplemented by Appendices IV and

VIII to that part. In accordance with guidance in 2 CFR § 200.401(c), a nonprofit organization listed in Appendix VIII to 2 CFR part 200 is subject to the cost principles for for-profit entities specified in paragraph 1.e of this section.

d. A State, local government, or Indian tribe, the allowability of costs must be determined in accordance with applicable provisions of Subpart E of OMB guidance in 2 CFR part 200 other than 2 CFR § 200.400(g), supplemented by Appendices V through VII to that part.

e. A for-profit entity (other than a hospital) or a nonprofit organization listed in Appendix VIII to 2 CFR part 200, the allowability of costs must be determined in accordance with:

i. The cost principles for commercial organizations in the Federal

Acquisition Regulation at subpart 31.2 of 48 CFR part 31, as supplemented by provisions of the

Defense Federal Acquisition Regulation Supplement at subpart 231.2 of 48 CFR part 231; and

ii. The additional provisions on allowability of audit costs, in 32 CFR §

34.16(f).

2. Exception. You may use your own cost principles in determining the allowability of a contractor’s costs charged to a cost-type procurement contract under this award--or in pricing for a fixed-price contract based on estimated costs--as long as your cost principles comply with the

Federal cost principles that paragraph A.1 of this section identifies as applicable to the contractor.

Section B. Clarifications concerning charges for professional journal publications. For an entity that Section A of this article makes subject to the cost principles in Subpart E of 2 CFR part 200:

1. Costs of publishing in professional journals are allowable under 2 CFR § 200.461(b) only if they are consistently applied across the organization. An organization may not charge costs of journal publications as direct costs to this award if it charges any of the same type of costs for other journal publications as indirect costs.

2. “Costs of publication or sharing of research results” in 2 CFR § 200.461(b)(3) are the “charges for professional journal publications” described in 2 CFR § 200.461(b) and subject to the conditions of 2 CFR § 200.461(b)(1) and (2).

Section C. Period of availability of funds. You may charge to this award only:

1. Allowable costs incurred during the period of performance specified in this award, including any subsequent amendments to it;

2. Any pre-award costs that you are authorized (by either the terms and conditions of FMS

Article IV or the DoD awarding official) to incur prior to the start of the period of performance, at your own risk, for purposes of the program or project under this award; and

3. Costs of publishing in professional journals incurred after the period of performance, as permitted under 2 CFR § 200.461(b)(3), if:

a. We receive the request for payment for such costs no later than the date on which you are required to submit the final financial report to us; and

b. Your reported expenditures on the final financial report include the amount you disbursed for those costs.

Section D. Fee or profit.

1. You may not receive any fee or profit under this award.

2. You may not use funds available to you under this award to pay fee or profit for an entity of any type to which you make a subaward.

3. You may pay fee or profit to an entity with which you enter into a procurement transaction to purchase goods or general support services for your use in carrying out the project or program under the award.

FMS ARTICLE IV - - REVISION OF BUDGET AND PROGRAM PLANS (DECEMBER

2014)

Section A. Approved budget. The approved budget of this award:

1. Is the most recent version of the budget that you submitted and we approved (either at the time of the initial award or a more recent amendment), to summarize planned expenditures for the project or program.

2. Includes all Federal funding that we make available to you under this award to use for program or project purposes and any cost sharing or matching that you are required to provide under this award for those same purposes.

Section B. Revisions requiring prior approval.

1. Non-construction activities. You must request prior approval from us for any of the following program or budget revisions in non-construction activities:

a. A change in the scope or objective of the project or program under this award, even if there is no associated budget revision that requires our prior approval.

b. A change in a key person identified in the award front section.

c. The approved principal investigator’s or project director’s disengagement from the project for more than three months, or a 25 percent reduction in his or her time devoted to the project.

d. The inclusion of direct costs that require prior approval in accordance with the applicable cost principles, as identified in FMS Article III.

e. The transfer to other categories of expense of funds included in the approved budget for participant support costs, as defined at 2 CFR § 200.75.

f. A subaward to another entity under which it will perform a portion of the substantive project or program under the award, if it was not included in the approved budget. This does not apply to your contracts for acquisition of supplies, equipment, or general support services you need to carry out the program.

g. Any change in the cost sharing or matching you provide under the award, as included in the approved budget, for which FMS Article VI requires prior approval.

h. A transfer of funds among direct cost categories or programs, functions, and activities, if the total anticipated amount of Federal funding of your award exceeds the simplified acquisition threshold and the cumulative amount of the transfers exceeds or is expected to exceed 10 percent of the approved budget.

i. The need arises for additional Federal funds to complete the project or program.

2. Construction activities. You must request prior approval from us for any of the following program or budget revisions in construction activities:

a. A change in the scope or objective of the project or program under this award, even if there is no associated budget revision that requires our prior approval.

b. The need arises for additional Federal funds to complete the project.

c. The inclusion of direct costs that require prior approval in accordance with the applicable cost principles, as identified in FMS Article III.

3. Funding transfers between construction and non-construction activities. [Reserved.]

Section C. Pre-award costs, carry forward of unobligated balances, and one-time no-cost extensions. You are authorized, without requesting prior approval from us, to:

1. Charge to this award after you receive it pre-award costs that you incurred, at your own risk, up to 90 calendar days before the date of award, as long as they are costs that would be allowable charges to the project or program under the terms and conditions of FMS Article III if they were incurred during the period of performance.

2. Carry forward an unobligated balance to a subsequent period of performance under this award.

3. For grants with a project period of 4 years or less, initiate a one-time extension of the period of performance by up to 12 months, as long as:

a. You notify us in writing with the supporting reasons and revised end date of the period of performance at least 10 calendar days before the current end date.

b. The extension does not require any additional Federal funding.

c. The extension does not involve any change in the scope or objectives of the project or program.

Section D. Procedures.

1. We will review each request you submit for prior approval for a budget or program change and, within 30 calendar days of our receipt of your request, we will write or e-mail you to either:

a. Notify you whether your request is approved; or

b. Inform you that we still are considering the request, in which case we will let you know when you may expect our decision.

2. Requests for budget revisions shall be submitted in the same format used for the budget information in your original application or proposal and shall show the requested revision and final proposed price in a “From-By-To” format.

FMS ARTICLE V - - NON-FEDERAL AUDITS (DECEMBER 2014)

Section A. Requirements for entities subject to the Single Audit Act. You and each subrecipient under this award that is an institution of higher education, nonprofit organization, State, local government, or Indian tribe must comply with the audit requirements specified in Subpart F of 2

CFR part 200, which is the OMB implementation of the Single Audit Act, as amended (31

U.S.C. chapter 75).

Section B. Requirements for for-profit entities. Any for-profit entity that receives a subaward from you under this award is subject to the audit requirements specified in 32 CFR § 34.16, with the following differences:

1. Rather than having the subrecipient provide the audit reports to a DoD Component, as specified in 32 CFR § 34.16(c), your subaward terms and conditions will require the subrecipient to provide the reports to you. If the for-profit entity is unwilling to agree to provide the auditor’s report to you, contact the grants officer for this award to discuss an alternative approach for carrying out audit oversight of the subaward.

2. You—rather than the Defense Contract Management Agency as provided in 32 CFR §

34.16(d)(2)(ii)—will be responsible for resolution of audit findings that pertain to your subaward.

FMS ARTICLE VI - - [RESERVED]

FMS ARTICLE VII - - PROGRAM INCOME (DECEMBER 2014)

Section A. [Reserved]

Section B. Encouragement to earn program income. You are encouraged to earn program income under this award when doing so does not interfere with the program or project the award supports.

Section C. Costs of generating program income. You may deduct costs incidental to the generation of program income from the amount that you use in accordance with Section E of this

Article, as long as those costs are not charged to this award (which includes their being counted toward any cost sharing or matching you are required to provide).

Section D. License fees and royalties. You have no obligations to the Federal Government with respect to program income earned under this award from license fees and royalties for patents or patent applications, copyrights, trademarks, or inventions developed or produced under the

Section E. Use of program income

1. You must use any program income that you earn during the period of performance under this award to increase the amount of the award (the sum of the Federal share and any cost sharing or matching you are required to provide), thereby increasing the amount budgeted for the project.

The program income must be used for the purposes and under the terms and conditions of the

2. Your use of the additional funding is subject to the terms and conditions of this award, including:

a. FMS Article II concerning your use of balances of program income before you request additional funds from us; and

b. FMS Article III concerning allowability of costs for which the funds may be used.

3. You must report on each Federal Financial Report (SF-425) that you submit in accordance with REP Article II the program income that you earn and any that you use during the reporting period covered by that SF-425.

Section F. Duration of accountability for program income.

The requirements concerning disposition of program income in Section E of this Article apply only to program income you earn during the period of performance. There are no requirements under this award applicable to program income you earn after the end of the period of performance.

2. PROPERTY ADMINISTRATION (PROP ARTICLES)

PROP ARTICLE I - - TITLE TO PROPERTY (DECEMBER 2014)

Section A. Title to property acquired under this award.

1. General. Other than any property identified in paragraph A.2 of this section as excepted property:

a. Title to real property, equipment, and supplies that you acquire (whether by purchase, construction or fabrication, development, or otherwise) and charge as direct project costs under this award vests in you, the recipient. Title to intangible property that you acquire (other than by developing or producing it) under this award also vests in you.

b. That title is a conditional title, subject to the terms and conditions in PROP Articles II-IV, Section D of PROP Article VI, and REP Article III of this award.

c. There is a Federal interest in the property, other than intangible property that you develop or produce under the award. For real property, equipment, and intangible property, we retain this

Federal interest until final disposition of the property under PROP Article III (for real property), PROP Article IV (for equipment), or Section D of PROP Article VI (for intangible property that is acquired, other than by developing or producing it), a period that in some cases may extend beyond closeout of this award.

2. Excepted property. [Reserved].

Section B. Property trust relationship.

1. Basic requirement. Other than intangible property that you develop or produce under the award, you hold any real property, equipment, or intangible property that you acquire or improve under this award in trust for the beneficiaries of the project or program that you are carrying out

2. Notices of record. [Reserved].

Section C. Federally owned property. [Reserved]

Section D. Federal interest in donated real property or equipment. [Reserved]

Section E. Federal interest in property improved under the award.

1. The Government has an interest in improvements (as distinct from ordinary repairs and maintenance) you make to an item of real property or equipment if you charge the costs of the improvements as direct costs to this award.

2. We thereby acquire an interest in the property if the Government did not previously have one.

If the Government already had an interest in the property, the value of that Federal interest in the property increases by the amount of the Federal interest in the improvements.

3. The property is subject to Section B of this article and the terms and conditions of PROP

Articles II-IV and REP Article III that are applicable to real property or equipment acquired

4. The Federal interest must be addressed at the time of property disposition.

PROP ARTICLE II - - PROPERTY MANAGEMENT SYSTEM (DECEMBER 2014)

Section A. Insurance coverage for real property and equipment. You must, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired or improved under this award as you provide for real property and equipment that you own.

Section B. Other management system standards for a State.

1. Equipment. Your property management system for equipment acquired or improved in whole or in part under this award must be in accordance with your State laws and procedures.

2. Federally owned property. You may use your own property management system for any federally owned property for which you are accountable, as long as it meets the following minimum standards:

a. Records. Your records must include for each item of federally owned property:

i. A description of the item.

ii. The location of the item.

iii. The serial or other identification number.

iv. Which Federal agency holds title.

v. The date you received the item.

vi. Any data on the ultimate disposition of the item, such as the date of disposal.

vii. The Federal award identification number of the award under which you are accountable for the item.

b. Inventory. You must take a physical inventory of federally owned property at least biennially and reconcile the results with your records.

c. Control system. You must:

i. Maintain an internal property control system with adequate safeguards to prevent loss, damage, or theft of federally owned property.

ii. Investigate any loss, damage, or theft of federally owned property and promptly notify the award administration office.

d. Maintenance. You must maintain the property in good condition.

Section C. Other management system standards for an institution of higher education, nonprofit organization, local government, or Indian tribe. Your procedures for managing equipment

(including replacement equipment) acquired or improved in whole or in part under this award and any federally owned property for which you are accountable under this award must, as a minimum, meet the requirements in this section.

1. Records. You must maintain records that include for each item of equipment or federally owned property:

a. A description of the item.

b. The serial or other identification number.

c. Who holds title (e.g., you or the Government and, if the latter, which Federal agency).

d. The source of funding for the equipment, including the award number, or the source of the federally owned property, including the award number of the award under which you are accountable for the property.

e. The acquisition date and cost of the equipment (or improvement to the equipment) or the date you received the federally owned property.

f. The location, use, and condition of the equipment or federally owned property.

g. Information from which one can calculate the amount of the Federal interest in the acquisition or improvement of the item (this amount is zero after you compensate us for the

Federal interest in the item or improvement).

h. Any data on the ultimate disposition of the item including the date of disposal and sale price.

2. Labelling. You must ensure that property owned by the Federal Government is labeled to identify it as federally owned property.

3. Inventory. You must take a physical inventory of equipment in which there is a Federal interest and reconcile the results with your records at least once every 2 years.

4. Control system. You must:

a. Maintain an internal property control system with adequate safeguards to prevent loss, damage, or theft of equipment and federally owned property.

b. Investigate any loss, damage, or theft and notify the award administration office if it involved equipment in which there is a Federal interest under the award or federally owned property.

5. Maintenance. You must maintain equipment acquired or improved in whole or in part under the award and federally owned property in good condition.

PROP ARTICLE III - - USE AND DISPOSITION OF REAL PROPERTY (DECEMBER

Section A. Use of real property.

1. You must use real property acquired or improved under this award for the originally authorized purpose as long as needed for that purpose. During that time, you may not:

a. Dispose of the property except to acquire replacement property under this award, in which case you may use the proceeds from the disposition as an offset to the cost of the replacement property; or

b. Encumber the title or other interests in the property without the approval of the award administration office identified in this award.

2. During the time that the real property is used for the originally authorized purpose, you may make the property available for use on other projects or programs, but only if that use will not interfere with the property’s use as needed for its originally authorized purpose.

a. First preference must be given to other projects or programs supported by DoD Components and second preference to those supported by other Federal agencies.

b. Third preference is for other projects or programs not currently supported by the Federal

Government. You should charge user fees for use of the property in those cases, if it is at all practicable.

3. When the real property is no longer needed for the originally authorized purpose, with the written approval of the award administration office, you may delay final disposition of the property to use it on other federally sponsored projects or programs. A condition for the award administration office’s approval is that the other projects or programs have purposes consistent with those authorized for support by the DoD Component that made the award under which the property was acquired or improved.

Section B. Disposition of real property. When you no longer need real property for the originally authorized purpose, you must obtain disposition instructions from the award administration office except as provided in paragraph A.3 of this article. Those instructions will provide for one of the following three alternatives, which are that you:

1. Retain title after compensating us for the Federal interest in the property, which is to be computed as specified in the definition of “Federal interest.”

2. Sell the property and compensate us for the Federal interest in the property, as described in 2

CFR § 200.311(c)(2).

3. Transfer title to us or a third party we designate, as described in 2 CFR § 200.311(c)(3).

PROP ARTICLE IV - - USE AND DISPOSITION OF EQUIPMENT AND SUPPLIES

(DECEMBER 2014)

Section A. Property subject to this article. This article specifies requirements for use and disposition of equipment and supplies. If a provision of PROP Article I or an award-specific term or condition of this award identifies any equipment or supplies as excepted property, requirements of this Article apply to that excepted property only to the extent specified in that provision of PROP Article I or the award-specific term or condition. The types of non-excepted property to which this article applies are:

1. Supplies that you acquire either by purchase or by donation as cost sharing or matching under this award; and

2. Equipment for which title is vested conditionally in you, pending resolution of a Federal interest in the equipment. That includes equipment with a conditional title resulting from your having, either under this award or under a previous award from which you transferred accountability for the equipment to this award:

a. Directly charged as project costs, in whole or in part, the acquisition (by purchase, construction or fabrication, or development) of equipment;

b. Donated the equipment to the project or program by counting the value of the remaining life of the property recorded in your accounting records or the fair market value toward any cost sharing or matching requirements under the award, rather than charging depreciation (see PROP

Article I, Section D); or

c. Directly charged as project costs improvements to the equipment that meet the criteria given in paragraph E.1 of PROP Article I.

Section B. Requirements for a State’s use and disposition of equipment. You:

1. Must use the equipment for the authorized purposes of the project or program during the period of performance, or until the property is no longer needed for those purposes.

2. May not encumber the property without the prior written approval of the award administration office.

3. Must use and dispose of the equipment in accordance with your State laws and procedures, subject to the following condition. For any item of equipment that is no longer needed for the originally authorized purpose and has a current fair market value greater than $5,000, the disposition process must include either your:

a. Payment of compensation to us in the amount of the Federal interest in the equipment; or

b. Contacting the award administration office to work out a mutually agreeable alternative that takes into account the Federal and State interests in that item of equipment. Examples of alternatives, subject to the agreement of the award administration office, include:

i. Deferring final disposition to allow continued use of the equipment on other federally supported projects or programs, as described in 2 CFR § 200.313(c)(1);

ii. Agreeing to transfer title to the Federal Government or a third party, with compensation to you for the State interest in the equipment, as described in 2 CFR §

200.313(e)(3).

Section C. Use of equipment by an institution of higher education, nonprofit organization, local government, or Indian tribe. You:

1. Must use the equipment for the authorized purposes of the project or program under this award until the equipment is no longer needed for those purposes, whether or not the project or program continues to be supported by this award.

2. May not encumber the equipment without the prior written approval of the award administration office.

3. During the time that the equipment is used for the project or program under this award:

a. You must make the equipment available for use on other projects or programs but only if that use will not interfere with the equipment’s use as needed for the project or program supported by this award.

i. First preference must be given to other projects or programs supported or previously supported by DoD Components and second preference to those supported or previously supported by other Federal agencies.

ii. Third preference is for other projects or programs not supported by the

Federal Government. You should charge user fees for use of the equipment in those cases, if it is at all practicable.

b. You may use the equipment, if you need to acquire replacement equipment, as a trade-in or sell it (using sales procedures designed to ensure the highest possible return) and use the proceeds from the sale to offset the cost of the replacement equipment.

4. When the equipment is no longer needed for the project or program under this award, you may defer final disposition of the equipment and continue to use it on other federally sponsored projects or programs. You must give first priority to other projects or programs supported by

DoD Components.

5. Notwithstanding the encouragement in FMS Article VII to earn program income, you may not use equipment in which there…