NGB Cooperative Agreement GT&C October 2023.pdf

DOD COMPONENT (NGB) COOPERATIVE AGEEEMENT GENERAL TERMS

AND CONDITIONS

October 2023

SUBDIVISION A- Preamble

Part 1: Table of Contents

DOD COMPONENT (NGB) COOPERATIVE AGEEEMENT GENERAL TERMS AND

CONDITIONS

SUBDIVISION A- Preamble

Part 1: Table of Contents

Part 2: Scope

Section A. Introduction

Section B. Applicability

Section C. Order of Precedence

Section D. Award Acceptance

Part 3: English Language

Part 4: Plain Language

Part 5: Reserved Provisions

Part 6: Feedback on the Terms and Conditions

Part 7: Definitions

Section A. Purpose of this Part

Section B. Precedence of Definitions of Terms in National Policy Requirements

Section C. Definitions of Terms Used in The Federal Governmentwide Cost Principles or Single Audit Requirements

Section D. Definitions

SUBDIVISION B - General Terms and Conditions for Administrative Requirements

Part 1: Financial and Program Management (Articles from this part are designated with “FMS” in the article title)

FMS Article I. Financial Management System Standards

Section A. System standard for States

Section B. System Standards for all Recipients

Section C. Internal Controls

FMS Article II. Payments

Section A. Awards to States

Section B. Awards to Institutions of Higher Education, Nonprofit Organizations, Local Governments, Indian Tribes, and For-profit entities

Section C. Electronic Funds Transfer and other Payment Procedural Instructions or Information

FMS Article III. Allowable Costs, Period of Availability of Funds, and Fee or Profit

Section A. Allowable Costs

Section B. Clarifications Concerning Charges for Professional Journal Publications.

RESERVED – Not Applicable

Section C. Period of Availability of Funds

Section D. Fee or Profit

FMS Article IV. Revision of Budget and Program Plans

Section A. Approved Budget

Section B. Revisions Requiring Prior Approval

Section C. Pre-Award Costs

Section D. Procedures

FMS Article V. Non-Federal Audits

Section A. Requirements for Entities Subject to the Single Audit Act

Section B. Requirements for For-Profit Entities

FMS Article VI. Cost Sharing or Matching

Section A. Required Cost Sharing or Matching

Section B. Allowability as Cost Sharing or Matching

Section C. Allowability of Unrecovered Indirect Costs as Cost Sharing or Matching. Not currently applicable to NGB - See CPP Guidance in Subdivision D of this document

Section D. Allowability of Program Income as Cost Sharing or Matching

Section E. Valuation of Services or Property That You or Subrecipients Contribute or Donate

Section F. Valuation of Third-Party In-Kind Contributions

FMS Article VII. Program Income

Section A. Definition. The term “program income” as used in NGB CA awards:

Section B. Encouragement to Earn Program Income

Section C. Costs of Generating Program Income

Section D. License Fees and Royalties

Section E. Use of Program Income

Section F. Duration of Accountability for Program Income

Part 2: Property Administration (Articles from this part are designated with “PROP” in the article title)

PROP Article I. Title to Property

Section A. Title to Property Acquired under NGB CA Awards

Section B. Property Trust Relationship

Section C. Federally Owned Property

Section D. Federal Interest in Donated Real Property or Equipment

Section E. Federal Interest in Property Improved under the Award

PROP Article II. Property Management System

Section A. Insurance Coverage for Real Property and Equipment

Section B. Other Management System Standards for a State

Section C. Other Management System Standards for an Institution of Higher Education, Nonprofit Organization, Local Government, Indian Tribe, For-profit entity

PROP Article III. Use and Disposition of Real Property

Section A. Use of Real Property

Section B. Disposition of Real Property

PROP Article IV. Use and Disposition of Equipment and Supplies

Section A. Property Subject to This Article

Section B. Requirements for a State’s Use and Disposition of Equipment

Section C. Use of Equipment by an Institution of Higher Education, Nonprofit Organization, Local Government, Indian Tribe, or For-profit Entity

Section D. Disposition of Equipment by an Institution of Higher Education, Nonprofit Organization, Local Government, Indian Tribe, or For-profit Entity

Section E. Use and Disposition of Supplies Acquired under NGB CA Awards

PROP Article V. Use and Disposition of Federally Owned Property

Section A. Use

Section B. Disposition

PROP Article VI. Intangible Property

Section A. Assertion of Copyright

Section B. Inventions Developed under the Award

Section C. Data Produced under the Award

Section D. Use and Disposition of Intangible Property Acquired, but not Developed or Produced, under the Award

Part 3: Procurement (Articles from this part are designated with “PROC” in the article title) 49

PROC Article I. Procurement Standards for States

Section A. Use of State Procurement System

Section B. Procurement of Recovered Materials

Section C. Debarment and Suspension

Section D. Contract Provisions

PROC Article II. Procurement Standards for Institutions of Higher Education, Nonprofit Organizations, Local Governments, Indian Tribes, and For-profit Entities

Section A. General Procurement Standards

Section B. Competition

Section C. Procurement Methods

Section D. Contracting with Small and Minority Businesses, Women’s Business Enterprises, and Labor Surplus Area Firms

Section E. Contract Cost and Price

Section F. Contract Provisions

Section G. Procurement of Recovered Materials

Section H. Review of Procurement Documents

Section I. Domestic Preferences for Procurements

Section J. Bonding Requirements. RESERVED - Only applicable if provided in award-specific terms and conditions

PROC Article III. Contract Provisions for Recipient Procurements

Section A. Contract Provisions for Administrative Requirements

Section B. Contract Provisions for National Policy Requirements

Part 4: Reporting (Articles from this part are designated with “REP” in the article title)

REP Article I. Performance Management, Monitoring, And Reporting

Section A. Required Reporting Form, Format, or Data Elements for Interim and Final Performance Reports. RESERVED - Language in award-specific terms and conditions. 55

Section B. Frequency, Reporting Periods, and Due Dates for Interim Performance Reports. RESERVED - Language in award-specific terms and conditions

Section C. Due Date and Reporting Period for Final Performance Report

Section D. Extensions of Due Dates

Section E. Reporting Significant Developments

Section F. Performance Reporting Procedures. RESERVED - Language in award-specific terms and conditions

Section G. Site Visits

REP Article II. Financial Reporting

Section A. Required Reporting Form, Format, or Data Elements for Interim and Final Financial Reports. RESERVED - Language in award-specific terms and conditions

Section B. Interim Financial Reports: Frequency, Reporting Periods, and Due Dates.

RESERVED - Language in award-specific terms and conditions

Section C. Final Financial Report

Section D. Extensions of Due Dates

Section E. Where and How to Submit Financial Reports. RESERVED - Language in award-specific terms and conditions

REP Article III. Reporting on Property

Section A. Real Property

Section B. Equipment and Supplies

Section C. Federally Owned Property

Section D. Intangible Property

REP Article IV. Reporting on Subawards and Executive Compensation

Part 5: Other Administrative Requirements (Articles from this part are designated with “OAR” in the article title)

OAR Article I. Submitting and Maintaining Recipient Information

Section A. System for Award Management

Section B. Reporting of Performance and Integrity Information

Section C. Disclosure of Evidence of Integrity-Related Issues

OAR Article II. Records Retention and Access

Section A. Records Retention Period

Section B. Extensions of Retention Period Due to Litigation, Claim, or Audit

Section C. Records for Program Income Earned After the End of the Performance Period

Section D. Records for Joint or Long-term Use

Section E. Methods for Collecting, Transmitting, and Storing Information

Section F. Access to Records

OAR Article III. Remedies and Termination

Section A. Noncompliance with Award Terms and Conditions

Section B. Remedies for Noncompliance

Section C. Termination

Section D. Effects of Suspension or Termination of the Award on Allowability of Costs. 68

OAR Article IV. Claims, Disputes, and Appeals

Section A. Definitions

Section B. Submission of Claims

Section C. Alternative Dispute Resolution

Section D. Grants Officer Decisions for Claims you Submit

Section E. Formal Administrative Appeals

Section F. Representation

Section G. Non-exclusivity of Remedies

Section H. Effect of Grant Appeal Authority’s Decision

OAR Article V. Collection of Amounts Due

Section A. Establishing a Debt

Section B. Debt Delinquency and Appeals

Section C. Demand Letter, Interest, and Debt Collection

OAR Article VI. Closeout

Section A. Liquidation of Financial Obligations

Section B. Refunds of Unobligated Balances

Section C. Final Reports

Section D. Accounting for Property

Section E. Delinquent Final Reports and Timeframe for Closeout

OAR Article VII. Post-Closeout Adjustments and Continuing Responsibilities

Section A. Adjustments

Section B. Continuing Responsibilities

Part 6: Subawards (Articles from this part are designated with “SUB” in the article title)

SUB Article I. Distinguishing Subawards and Procurements

Section A. Required Recipient Determination

Section B. Considerations in Making the Determination

Section C. Effect of the Determination on the Next-Tier Transaction

SUB Article II. Pre-award and Time of Award Responsibilities

Section A. Requirements for Unique Entity Identifiers

Section B. Pre-award Risk Assessment

Section C. Subaward Content

Section D. Subaward and Executive Compensation Reporting

SUB Article III. Informational Content of Subawards

Section A. Informational Content in General

Section B. Federal Award Identification Number and Award Date

Section C. Amount of Federal Funds Obligated

Section D. Total Amount Obligated to the Subrecipient

Section E. Total Amount of the Federal Award

Section F. Federal Awarding Agency, Pass-Through Entity, and Awarding Official

Section G. Indirect Cost Rate. RESERVED – Not currently applicable to NGB - See Subdivision D of this document

SUB Article IV. Financial and Program Management Requirements for Subawards

Section A. Purposes of this Article in Relation to other Articles

Section B. Financial Management System Standards

Section C. Payments

Section D. Allowable Costs, Period of Availability of Funds, and Fee and Profit

Section E. Revision of budget and program plans

Section F. Non-Federal audits

Section G. Cost sharing or matching requirements

Section H. Program Income

SUB Article V. Property Requirements for Subawards

Section A. Purposes of this Article in Relation to other Articles

Section B. Title to Property

Section C. Property Management System

Section D. Use and Disposition of Real Property

Section E. Use and Disposition of Equipment and Supplies

Section F. Use and Disposition of Federally Owned Property

Section G. Intangible Property

SUB Article VI. Procurement Procedures to Include in Subawards

Section A. Purposes of this Article in Relation to other Articles

Section B. Subaward to a State

Section C. Subaward to an Institution of Higher Education, Nonprofit Organization, Local Government, Indian Tribe, or For-profit Entity

SUB Article VII. Financial, Programmatic, And Property Reporting Requirements for Subawards

Section A. Purposes of this Article in Relation to other Articles

Section B. Performance Reporting

Section C. Financial Reporting

Section D. Reporting on Property

SUB Article VIII. Other Administrative Requirements for Subawards

Section A. Purposes of this Article in Relation to other Articles

Section B. Submission and Maintenance of Subrecipient Information

Section C. Records Retention and Access

Section D. Remedies and Termination

Section E. Disputes, Hearings, and Appeals

Section F. Collection of Amounts Due

Section G. Closeout

Section H. Post-Closeout Adjustments and Continuing Responsibilities

SUB Article IX. National Policy Requirements for Subawards

Section A. General

Section B. Nondiscrimination National Policy Requirements

Section C. Environmental National Policy Requirements

Section D. National Policy Requirements Concerning Live Organisms. RESERVED –Not applicable

Section E. Other National Policy Requirements

SUB Article X. Subrecipient Monitoring and other Post-Award Administration

Section A. General Requirement for Subrecipient Monitoring

Section B. Subrecipient Monitoring Actions

Section C. Remedies and Subaward Suspension or Termination

Section D. Subaward Closeout

SUB Article XI. Requirements Concerning Subrecipients’ Lower-tier Subawards

Section A. Purpose

Section B. Requirements for Lower-tier Subawards

SUB Article XII. Fixed Amount Subawards

Section A. Limitations on Use

Section B. Fixed Amount Subawards that do not Require Prior Approval

Section C. Informational Content of Fixed Amount Subawards

Section D. Terms and Conditions Addressing Administrative Requirements

Section E. National Policy Requirements for Fixed Amount Subawards

Section F. Subrecipient Monitoring and Other Post-Award Administration

Section G. Fixed amount subawards at Lower Tiers

SUBDIVSION C - General Terms and Conditions for National Policy Requirements

Part 1: National Policy Requirements (Articles from this part are designated with “NP” in the article title)

NP Article I. Nondiscrimination National Policy Requirements

Section A. Cross-Cutting Nondiscrimination Requirements

Section B. Other Nondiscrimination Requirements. RESERVED - Only applicable if provided in award-specific terms and conditions

NP Article II. Environmental National Policy Requirements

Section A. Cross-Cutting Environmental Requirements

Section B. Other Environmental Requirements. RESERVED - Only applicable if provided in award-specific terms and conditions

NP Article III. National Policy Requirements Concerning Live Organisms. RESERVED – Not Applicable

NP Article IV. Other National Policy Requirements

Section A. Cross-Cutting Requirements

Section B. Additional Requirements

SUBDIVISION D - General Terms and Conditions for Programmatic Requirements

Part 1: Authorities

Section A. General Authority

Section B. Other Specific Authorities

Part 2: NGB Definitions

Section A. Airport Authority

Section B. Air National Guard

Section C. Army National Guard

Section D. Army National Guard and Air National Guard Cooperative Agreement Award.

Section E. Chief, National Guard Bureau

Section F. Centralized Personnel Plan

Section G. Federal Fiscal Year

Section H. Grant Appeal Authority

Section I. In-Kind Assistance

Section J. In-Kind Contribution

Section K. Military Equipment

Section L. National Guard Bureau

Section M. Principal Investigator

Section N. Renewal Award

Section O. State

Section P. The Adjutant General

Section Q. United States Property and Fiscal Officer

Part 3: NGB General Provisions

Section A. Successors and Assigns

Section B. Entire Agreement

Section C. Severability

Section D. Waiver of Breach

Section E. Notices

Section F. Liabilities and Indemnity

Section G. Government Furnished Equipment (GFE)

Part 4: Legal Authorities

Section A. Legal Authority

Section B. Opinion of Counsel

Part 5: Responsibilities of Parties

Section A. National Guard Bureau (NGB) Responsibilities

Section B. Recipient Responsibilities and Compliance with Federal Requirements

Part 6: Period of Performance of Cooperative Agreement Awards (Articles from this part are designated with “POP” in the article title)

POP Article I. Period of Performance

Section A. Opening of a new NGB Cooperative Agreement Award

Section B. Duration of the Period of Performance (PoP)

Section C. Period of Performance Exceptions

POP Article II. Use of Renewal Awards

Part 7: Payments

Payment Method, Timing, and Amounts

Part 8: Authorized Charges

Personnel

Part 9: Centralized Personnel Plan (CPP)

Section A. CPP

Section B. Responsibilities

Section C. State Central Services Cost Allocation Plan (CSCAP)

Part 10: Program Income

Part 2: Scope

Section A. Introduction.

NGB CA awards are subject to the following Department of Defense (DoD) General Terms and Conditions These general terms and conditions implement Office of Management and Budget (OMB) guidance, “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards,” published in the Code of Federal Regulations (CFR) at 2 CFR part 200 and implemented by the DoD at 2 CFR part 1104, “Interim Grants and Cooperative Agreements Implementation of Guidance in 2 CFR part 200” (79 FR 76047, December 19, 2014, as amended at 85 FR 49506, August 13, 2020).

Section B. Applicability.

1. These general terms and conditions apply to the National Guard Bureau (NGB), a DoD Component, cooperative agreements with institutions of higher education, nonprofit organizations, states, local governments, Indian tribes, and for-profit entities. They also apply when incorporated into NGB cooperative agreements subcontracts and sub awards with foreign organizations or foreign public entities (as defined in 2 CFR 1108).

These general terms and conditions do not apply to NGB grants and cooperative agreements made directly to individuals. Certain provisions within these general terms and conditions may indicate that they apply to certain types of recipients only. An example of this is FMS Article V for non-federal audits.

2. Certain provisions within these general terms and conditions may indicate that they apply to certain types of recipients only. An example of this is FMS Article V for non-federal audits.

Organization Type Applicable Administrative Requirements

Domestic Non-federal entity (including state, local government, Indian tribe, institution of higher education (IHE), or nonprofit organization)

• 2 CFR 200: Subparts A through F

• 2 CFR 600 & 601

Foreign Non-Profit Organization • 2 CFR 200: Subparts A through E

• 2 CFR 600 & 601

Domestic & Foreign For-Profit Organization • 2 CFR 200: Subparts A through D

• 2 CFR 600 & 601

• 48 CFR Part 30 & 31

Individuals • None

Foreign Public Entities (Includes Public International Orgs)

• None

Section C. Order of Precedence.

Any inconsistencies in the requirements of a NGB CA awards will be resolved in the following order:

a. Federal statutes.

b. Federal regulations* not otherwise referenced herein.

c. Cooperative Agreement Award-specific terms and conditions.

d. General Terms and Conditions, which includes the DoD Component (NGB)’s

Addendum to this document (Subdivision D).

Section D. Award Acceptance.

If you receive an unsigned award from NGB, that means that you are required to sign the award to indicate acceptance of the award, including the terms and conditions, prior to initiating performance. The grants officer will sign the award upon receipt of your signature.

Part 3: English Language

You must translate any of the award content (including attachments to it and any material incorporated into the award by reference) into another language only 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. If you translate any award content into another language, 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.

Part 4: Plain Language

These general terms and conditions use plain language, with use of personal pronouns such as “you” to denote the recipient and “we” to mean the Federal Government (Government). Use of personal pronouns is a recognized means to help a reader understand to whom the language is addressed and assist in determining responsibilities.

Part 5: Reserved Provisions

If the words “RESERVED – Not Applicable” are used at the section or section level of an article without additional explanation, it means that this particular section or section does not apply in any manner to NGB CA awards. If the word “RESERVED” is used with additional explanation (in bold red colored font), it will describe whether the particular provisions either will or may be included in a DoD Component (NGB) addendum (Subdivision D) to these terms and conditions.

Part 6: Feedback on the Terms and Conditions

As you gain operating experience with these general terms and conditions, you may find areas requiring clarification or correction. Alerting us to potential issues will help us improve both these general terms and conditions and NGB’s regulatory implementation of the OMB guidance at 2 CFR part 200.

Part 7: Definitions

Section A. Purpose of this Part.

This part provides definitions of terms used in the DoD Component (NGB) General Terms and Conditions.

Section B. Precedence of Definitions of Terms in National Policy Requirements.

Part 7 of these general terms and conditions may use a term in relation to compliance with a national policy requirement in a statute, Executive order, or other source that defines the term differently than it is defined in Section D of this part. For purposes of that particular national policy requirement, the definition of a term provided by the source of the requirement and any regulation specifically implementing it takes precedence over the definition in this part.

Section C. Definitions of Terms Used in The Federal Governmentwide Cost Principles or Single Audit Requirements.

1. Some award provisions state that you must comply with single audit or cost principles requirements in a governmentwide issuance and include the requirements by reference to the issuance without restating them. For any term defined in one of those issuances, this part includes the definition only if the term is used in these general terms and conditions.

2. Otherwise, this part does not include a definition and a user of these terms and conditions should consult definitions in the pertinent Governmentwide source, as follows:

a. The requirements for audits of recipients and subrecipients that are in Subpart F of OMB guidance in 2 CFR part 200, which implements the Single Audit Act.

b. The governmentwide cost principles for institutions of higher education, nonprofit organizations, states, local governments, and Indian tribes that are contained in Subpart E of OMB guidance in 2 CFR part 200.

c. The cost principles for for-profit entities at Subpart 31.2 of the Federal Acquisition

Regulation (48 CFR part 31), as supplemented by provisions of the Defense Federal Acquisition Regulation Supplement at Subpart 231.2 of 48 CFR part 231.

Section D. Definitions.

1. Acquire. See 2 CFR 1108.10.

2. Acquisition. See 2 CFR 1108.15.

3. Acquisition Cost. See 2 CFR 1108.20.

4. Administrative Offset. See 2 CFR 1108.25.

5. Advance Payment. See 2 CFR 1108.30.

6. Advanced Research. RESERVED – Not Applicable.

7. Applied Research. RESERVED – Not Applicable.

8. Approved Budget. See 2 CFR 1108.50.

9. Assistance. See 2 CFR 1108.55.

10. Award. See 2 CFR 1108.60.

11. Award Administration Office. See 2 CFR 1108.65.

12. Basic Research. RESERVED – Not Applicable.

13. Budget Period. See 2 CFR 200.1.

14. Capital Asset.

a. Tangible or intangible assets used in operations having a useful life of more than one year which are capitalized in accordance with Generally Accepted Accounting Principles (GAAP). Capital assets include. See also 2 CFR 1108.75:

(1) Land, buildings (facilities), equipment, and intellectual property (including software) whether acquired by purchase, construction, manufacture, exchange, or through a lease accounted for as financed purchase under Government

Accounting Standards Board (GASB) standards or a finance lease under Financial Accounting Standards Board (FASB) standards; and

(2) Additions, improvements, modifications, replacements, rearrangements, reinstallations, renovations, or alterations to capital assets that materially increase their value or useful life (not ordinary repairs and maintenance).

b. For purpose of this Part, capital assets do not include intangible right-to-use assets

(per GASB) and right-to-use operating lease assets (per FASB). For example, assets capitalized that recognize a lessee’s right to control the use of property and/or equipment for a time under a lease contract. See also §200.465.

15. Claim. See 2 CFR 1108.80.

16. Cognizant Agency for Indirect Costs. - RESERVED

17. Contract. See 2 CFR 1108.90.

18. Contractor. See 2 CFR 1108.105.

19. Cooperative Agreement. See 2 CFR 1108.110.

20. Co-Principal Investigator. RESERVED – Not Applicable.

21. Cost Allocation Plan. See 2 CFR 1108.120.

22. Cost Sharing or Matching. See 2 CFR 1108.125.

23. Cost-Type Contract. See 2 CFR 1108.130.

24. Cost-Type Subaward. See 2 CFR 1108.35.

25. Debarment. See 2 CFR 1108.140.

26. Debt. See 2 CFR 1108.145.

27. Delinquent Debt. See 2 CFR 1108.150.

28. Development. RESERVED – Not Applicable.

29. Direct Costs. See 2 CFR 1108.160.

30. DoD Components. See 2 CFR 1108.165.

The Office of the Secretary of Defense; the Military Departments; the National Guard Bureau; and all Defense Agencies, DoD Field Activities, and other organizational entities within the DoD that are authorized to award or administer grants, cooperative agreements, and other non-procurement instruments.

31. Equipment. See 2 CFR 1108.170, See also 2 CFR 200.313.

32. Exempt Property. See 2 CFR 1108.175.

33. Expenditures. See 2 CFR 1108.180.

34. Federal Interest.

Federal Interest means, in relation to real property, equipment, or supplies acquired or improved under an award or subaward, the dollar amount that is the product of the:

(1) Federal share of total project costs.

(2) The percentage of federal participation in the total costs of the real property, equipment, or supplies.

(3) Current fair market value of the property, improvements, or both, to the extent the costs of acquiring or improving the property were included as project costs.

35. Federal Share. See 2 CFR 1108.190.

36. Fixed Amount Subaward. See 2 CFR 1108.200.

37. Foreign Organization. See 2 CFR 1108.205.

38. Foreign Public Entity. See 2 CFR 1108.210.

39. Grant. See 2 CFR 1108.215.

40. Grants Officer. See 2 CFR 1108.220.

41. Indian Tribe. See 2 CFR 1108.225.

42. Indirect Costs (also known as “Facilities and Administrative,” or F&A, costs).

RESERVED – Not currently applicable to NGB - See CPP Guidance in Subdivision D of this document.

43. Institution Of Higher Education. See 2 CFR 1108.235.

44. Intangible Property. See 2 CFR 1108.240.

45. Local Government. See 2 CFR 1108.245.

46. Management Decision. See 2 CFR 1108.250.

47. Nonprocurement Instrument. See 2 CFR 1108.255.

48. Nonprofit Organization. See 2 CFR 1108.260.

49. Obligation. See 2 CFR 1108.265.

50. Office Of Management and Budget. See 2 CFR 1108.270.

51. Outlays. See 2 CFR 1108.275.

52. Participant Support Costs. See 2 CFR 1108.280.

53. Period Of Performance. See 2 CFR 1108.285, See also Subdivision D.

54. Personal Property. See 2 CFR 1108.290.

Property other than real property. It may be tangible, having physical existence, or intangible, such as copyrights, patents, and securities.

55. Principal Investigator. See 2 CFR 1108.295, Also See Subdivision D.

56. Prior Approval. See 2 CFR 1108.298

57. Procurement Contract. See 2 CFR 1108.300.

Legal instrument which, consistent with 31 U.S.C. 6303, reflects a relationship between the Federal Government and a state, a local government, or other recipient when the principal purpose of the instrument is to acquire property or services for the direct benefit or use of the Federal Government. A procurement contract is a prime-tier transaction and therefore distinct from a recipient’s or subrecipient’s “procurement transaction” or “contract” as defined in this part.

58. Procurement Transaction. See 2 CFR 1108.2305.

Legal instrument by which a recipient or subrecipient purchases property or services it needs to carry out the project or program under its award or subaward, respectively. A procurement transaction is distinct both from “subaward” and “procurement contract,” as those terms are defined in this part.

59. Program Income. See 2 CFR 1108.310.

60. Project Costs. See 2 CFR 1108.315.

61. Property. See 2 CFR 1108.320.

62. Real Property. See 2 CFR 1108.325.

63. Recipient. See 2 CFR 1108.330.

An entity that receives an award directly from NGB. The term does not include subrecipients.

64. Research. RESERVED – Not Applicable.

65. Simplified Acquisition Threshold. See 2 CFR 1108.340.

66. State. 2 CFR 1108.350, See also Subdivision D.

State for purposes of applying the administrative requirements in these regulations, means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any agency or instrumentality thereof exclusive of local governments.

67. Subaward. 2 CFR 1108.355.

Legal instrument by which a recipient or subrecipient at any tier, transfers--for performance by an entity at the next lower tier--a portion of the substantive program for which the DoD Component (NGB) made an award.

68. Subrecipient. 2 CFR 1108.360.

An entity that receives a subaward.

69. Supplies. 2 CFR 1108.365.

70. Suspension. 2 CFR 1108.370.

Suspension means either:

(1) When used in the context of a specific award or subaward, the temporary withdrawal of authority for the recipient or subrecipient to obligate funds under the award or subaward, pending it is taking corrective action or a decision to terminate the award or subaward.

(2) When used in the context of an entity, an action by a DoD Component

(NGB)’s suspending official under 2 CFR part 1125, DoD (NGB)’s regulation implementing OMB guidance on nonprocurement debarment and suspension in 2 CFR part 180, to immediately exclude the entity from participating in covered Federal Government transactions, pending completion of an investigation and any legal or debarment proceedings that ensue.

71. Termination. 2 CFR 1108.380.

The ending of an award or subaward, in whole or in part, at any time prior to the planned end of the period of performance. A lack of available funds is not a termination.

72. Third-Party In-Kind Contribution. 2 CFR 1108.385.

The value of a non-cash contribution (i.e., property or services) that:

(1) A non-federal third party contributes, without charge, either to a recipient or subrecipient at any tier under NGB’s award.

(2) Is identified and included in the approved budget of NGB’s award, as a contribution being used toward meeting the award’s cost sharing or matching requirement (which includes voluntary committed, but not voluntary uncommitted, contributions).

73. Total Value. 2 CFR 1108.390.

74. Unique Entity Identifier. 2 CFR 1108.395.

The identifier required for System for Award Management registration to uniquely identify entities with which the Federal Government does business (formerly the Dun and Bradstreet Data Universal Numbering System, or DUNS number).

75. Unobligated Balance. 2 CFR 1108.400.

76. Voluntary (Committed or Uncommitted) Cost Sharing. 2 CFR 1108.405.

77. Working Capital Advance. 2 CFR 1108.410.

A payment method under which funds are advanced to a recipient or subrecipient to cover its estimated disbursement needs for a given initial period, after which payment is made by way of reimbursement.

SUBDIVISION B - General Terms and Conditions for Administrative Requirements

Part 1: Financial and Program Management (Articles from this part are designated with “FMS” in the article title)

FMS Article I. Financial Management System Standards.

Section A. System standard for States.

As a State, you must expend and account for funds under NGB CA awards in accordance with:

a. Applicable State laws.

b. 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.

1. Your financial management system must provide for:

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

(1) That you received the award from NGB.

(2) The number and title listed in the Assistance for NGB program under which the award was made.

(3) NGB CA award number.

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

b. 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 an NGB CA award concerning reporting requirements. If you are asked at any time under an award to report financial information on an accrual basis, you:

(1) Need not establish an accrual accounting system if you maintain your records on a different basis.

(2) May develop the accrual data based on an analysis of the data you have on hand.

2. Records that identify adequately the sources of funds for all activities funded by an

NGB CA award, including any required cost sharing or matching, and the application of those funds. This includes funding authorizations; your financial obligations and expenditures of the funds; unobligated balances; property and other assets under the award; program income; and interest.

3. Effective control over, and accountability for, all funds, property, and other assets under NGB CA awards. 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).

4. Comparison of expenditures under NGB CA awards for project or program purposes with amounts in the approved budget for those purposes.

5. RESERVED – Not Applicable.

6. Written procedures:

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

b. For determining the allowability of costs, which for an NGB CA 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 an NGB CA 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.

Section A. Awards to States.

1. If the award-specific terms and conditions of an NGB CA 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 a NGB CA award is subject to Subpart B of that part. Consistent with Subpart B of 31 CFR part 205.

2. Payment Method, Timing, and Amounts (see also Subdivision D). You must:

a. Minimize the time between your receipt of a payment under an NGB CA award and your disbursement of those funds for project or program purposes.

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

c. Submit each advance payment request approximately 10 days before you anticipate disbursing the requested amount for project or 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 project or program costs and the proportionate share of any allowable indirect costs.

3. 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 an NGB CA award and your disbursement of those funds for project or program purposes.

Section B. Awards to Institutions of Higher Education, Nonprofit Organizations, Local

Governments, Indian Tribes, and For-profit entities.

1. Payment method. RESERVED – Standard payment for NGB grants and cooperative agreements is by reimbursement. Advance allowable as per policy as described in Subdivision D of this document.

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 project or program, including direct 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 project or program purposes under an NGB CA 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 project or 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 project or 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 project or program 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 an NGB CA 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 failure to comply with federal statutes, regulations, or the terms and conditions of an NGB CA 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 B.

b. You are delinquent in a debt to the United States, 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 NGB CA awards.

b. You are not required to deposit funds you receive under NGB CA awards 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 NGB CA awards.

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

(1) You receive a total of less than $250,000 per year under federal grants and cooperative agreements.

(2) 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.

(3) 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.

(4) 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 NGB CA awards and other federal grants and cooperative agreements. You must remit annually the rest of the interest to the Department of Health and Human Services, 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 NGB CA awards provide otherwise, you will receive payments under NGB CA awards by electronic funds transfer.

2. RESERVED – Not Applicable.

FMS Article III. Allowable Costs, Period of Availability of Funds, and Fee or Profit.

Section A. Allowable Costs.

1. 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 NGB CA awards, a subrecipient’s costs charged to any cost-type subaward that you make under NGB CA awards, and a contractor’s costs charged to any cost-type procurement transaction into which you enter under NGB CA awards. These cost principles also govern the allowable costs that you or a subrecipient of a subaward at any tier below NGB CA awards may consider when establishing the amount of any fixed-amount subaward or fixed-price procurement transaction 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.

2. General Case. If you, your subrecipient, or your contractor is:

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:

(1) The allowability of costs must be determined in accordance with:

(a) The cost principles for commercial organizations in the Federal Acquisition Regulation (FAR) at Subpart 31.2 of 48 CFR part 31, as supplemented by provisions of the Defense Federal Acquisition Regulation Supplement (DFARS) at Subpart 231.2 of 48 CFR part 231.

(b) For a for-profit entity, the additional provisions on allowability of audit costs, in 32 CFR 34.16(f).

(2) The indirect cost rate to use in that determination is:

(a) The for-profit entity’s federally negotiated indirect cost rate if it has one.

(b) Subject to negotiation between you and the for-profit entity if it does not have a federally negotiated indirect cost rate. The rate that you negotiate may provide for reimbursement only of costs that are allowable in accordance with the cost principles specified in paragraph A.1.e.(1) of this article.

3. Exception. You may use your own cost principles in determining the allowability of a contractor’s costs charged to a cost-type procurement transaction under NGB CA awards—or in pricing for a fixed-price contract based on estimated costs if 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.

RESERVED – Not Applicable.

Section C. Period of Availability of Funds.

1. You may charge to NGB CA awards only:

a. Allowable costs incurred during the period of performance specified in NGB CA awards, including any subsequent modifications to it.

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

FMS Article IV or NGB awarding official) to incur prior to the start of the period of performance, at your own risk, for purposes of the project or program under NGB CA awards.

2. 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 REP Article II requires you to submit the final financial report to us (or, if we grant your request for an extension of the due date, that later date on which the report is due).

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 NGB CA awards.

2. You may not use funds available to you under NGB CA awards 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.

Section A. Approved Budget.

The approved budget of NGB CA awards:

a. 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 modification), to summarize planned expenditures for the project or program.

b. Includes all federal funding that we make available to you under NGB CA awards to use for project or program purposes and any cost sharing or matching that you are required to provide under NGB CA awards 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 NGB CA awards, even if there is no associated budget revision that requires our prior approval.

b. A change in a key person identified in the award cover pages.

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. RESERVED – Only applicable if provided in DoD Component addendum to these terms and conditions.

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. RESERVED – Not Applicable.

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 NGB CA awards, 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. Only applicable if provided in DoD Component addendum to these terms and conditions.

Section C. Pre-Award Costs.

1. You are authorized, without requesting prior approval from us, to:

Charge to NGB CA awards after you receive it, pre-award costs that you incurred, at your own risk, up to 90 calendar days before the start date of the period of performance, if 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. Expenses more than 90 calendar days pre-award require prior approval of the Federal awarding agency.

2. RESERVED – RESERVED - Only applicable if provided in award-specific terms and conditions.

3. RESERVED – RESERVED - Only applicable if provided in award-specific terms and conditions.

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 respond to you in writing 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…