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March 2005
GENERAL
TERMS AND CONDITIONS
FOR AWARDS TO ORGANIZATIONS
Introduction
The General Terms and Conditions for Awards to
Organizations apply to grants and cooperative agreements that
the National Endowment for the Humanities (NEH) issues to private
nonprofit organizations, institutions of higher education, and
state, local, and federally recognized Indian tribal governments.
These provisions also apply to subawards that are made by NEH award
recipients and subrecipients to the types of organizations listed
above.
Challenge Grants and general support grants to state humanities
councils are not subject to the General Terms and Conditions for
Awards to Organizations.
Should there be any inconsistency between the General Terms
and Conditions for Awards to Organizations and the specific
terms and conditions that are enumerated in the award document, the
latter will govern.
The General
Terms and Conditions for Awards to Organizations are based
on the established policies of the NEH, the administrative
requirements of the Office of Management and Budget Circular
A-110 and the Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local
Governments.
We call your attention to Article 2 of these general terms and
conditions. Successful applicants that currently do not have
a prior approval system in place are required to develop one within
30 days after receiving an NEH award. To assist
organizations in developing an acceptable prior approval system, the
NEH Office of Grant Management has produced a sample prior approval
form, which is included in the appendix of this publication.
TABLE OF CONTENTS
Glossary of
Terms
Basic Responsibilities
- Recipient
Responsibilities
- Organizational
Prior Approval System
- Acknowledgment
of Support and Disclaimer
Payment
- Payments,
Interest, and Refunds
Project Costs
- Allowable
Costs
- Pre-Award
Costs
- Equipment
- Supplies
- Travel
Costs
- Foreign
Travel
Changes
- Budget
Revisions
- Award
Period and Extensions
- Changes in
Key Project Personnel
- Changes
in Project Scope
Reporting and Recordkeeping
- Reporting
Requirements
- Program
Income
- Financial
Management Standards
- Cost
Sharing and Cost-Sharing Records
- Procurement
Standards
Audit
- Audit
Requirements
- Record
Retention
- CFDA
Numbers (Catalog of Federal Domestic Assistance)
Rights
- Intangible
Property
- Title to
Equipment
Government-wide Requirements
- Uniform
Administrative Requirements
- Nondiscrimination
- Lobbying
Activities
- Drug-Free
Workplace Requirements
- Debarment
and Suspension
- Labor
Standards
- Native
American Graves Protection and Repatriation Act of 1990
- National
Historic Preservation Act of 1966
NEH-Specific Requirements
- Dissemination
of Project Results
- Activities
Outside the United States
- Data
Collection
- Research
Misconduct
- Code of
Ethics for Projects Related to Native Americans
Suspension and Termination
- Suspension
and Termination
- Termination
Review Procedures
Appendix
- Procurement
Procedures
- Contract
Provisions
- Federal
Guidance
- Sample
Prior Approval Form
- Sample
Activity Report
Award |
A grant or cooperative agreement. |
Award Period |
The span of time established in the award during which NEH
activities and expenditures are to occur. Award periods begin
on the first day of the month and end on the last day of the
month. |
Cash Contributions |
The recipient's cash outlay for budgeted project
activities, including the outlay of money contributed to the
recipient by third parties. |
Cooperative Agreement |
An award of financial assistance that is used to enter
into the same kind of relationship as a grant, but that is
distinguished from a grant in that it provides for substantial
involvement between the federal agency and the recipient in
carrying out the activity contemplated by the award. |
Cost Sharing |
The portion of the costs of a project not charged to NEH
funds. This would include cash contributions (as defined
above) as well as the value of third-party in-kind
contributions. |
Debarment |
The ineligibility of a recipient to receive any assistance
or benefits from the federal government, either indefinitely
or for a specified period of time, based on legal proceedings
taken pursuant to agency regulations implementing Executive
Order 12549. |
Equipment |
Tangible, non-expendable personal property having a useful
life of more than one year and an acquisition cost of $5,000
or more per unit. |
Federally Recognized Indian Tribal Government |
The governing body or a governmental agency of any Indian
tribe, Indian band, nation, or other organized group or
community certified by the Secretary of the Interior as
eligible for the special programs and services provided
through the Bureau of Indian Affairs. |
Grant |
A legal instrument that provides financial assistance in
the form of money or property to an eligible recipient. The
term does not apply to technical assistance which provides
services instead of money, or other assistance in the form of
revenue sharing, loans, loan guarantees, interest subsidies,
insurance, or direct appropriations. The term does not include
fellowships or other lump sum awards, for which the recipient
is not required to provide a financial accounting. |
In-Kind Contributions |
The value of noncash contributions provided by
third parties. In-kind contributions may be
in the form of charges for real property and equipment or the
value of goods and services directly benefiting and
specifically identifiable to the project. |
Institutional Grant Administator |
The member of the recipient organization who has the
official responsibility for administering the award, e.g., for
negotiating budget revisions, overseeing the submission of
required reports, and ensuring compliance with the terms and
conditions of the award. |
Intangible Property |
Includes, but is not limited to, trademarks; copyrights;
patents and patent applications. |
Local Government |
A county, municipality, city, town, township, local public
authority, school district, special district, intrastate
district, council of government, any other regional or
interstate government entity, or any agency or instrumentality
of a local government. |
Obligation |
The amounts of orders placed, contracts and awards issued,
goods and services received, and similar transactions during
the award period that will require payment. |
Program Officer |
The NEH division staff member designated in the section of
the award entitled "Endowment Administration of the
Award." |
Program Income |
Money that is earned or received by a recipient or a
subrecipient from the activities supported by award funds or
from products resulting from award activities. It includes,
but is not limited to, income from fees for services performed
and from the sale of items fabricated under an award; usage or
rental fees for equipment or property acquired under an award;
admission fees; broadcast or distribution rights; and
royalties on patents and copyrights. |
Project Funds |
Both the federal and non-federal funds that are used to
cover the cost of budgeted project activities. |
Recipient |
The organization to which a grant or cooperative agreement
is awarded and which is accountable for the use of the funds
provided. |
Simplified Acquisition Threshold |
This term replaces "small purchase threshold," and the
threshold is currently set at $100,000 [41 U.S.C. 403
(11)]. |
State |
Any of the several states of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, any
territory or possession of the United States, or any agency or
instrumentality of a state exclusive of local governments,
institutions of higher education, and hospitals. |
Subaward |
An award of financial assistance in the form of money or
property, made under an award by a recipient to an eligible
subrecipient or by a subrecipient to a lower-tier
subrecipient. The term includes financial assistance which is
provided by any legal agreement, even if the agreement is
called a contract, but it does not include the procurement of
goods and services nor does it include any form of assistance
which is excluded from the definition of an "award." |
Subrecipient |
The legal entity to which a subaward is awarded and which
is accountable to the recipient for the use of the funds
provided. |
Supplies |
All personal property excluding equipment and intangible
property, as defined in this glossary. |
Suspension |
- The suspension of an award is the temporary withdrawal
of federal sponsorship. This includes the withdrawal of
authority to incur expenditures against award funds, pending
corrective action or a decision to terminate the award.
- The suspension of an individual or organization causes
that party to be temporarily ineligible to receive any
assistance and benefits from the federal government pending
completion of investigation and legal proceedings as
prescribed under agency regulations implementing Executive
Order 12549. Such actions may lead to debarment of the
recipient.
|
Termination |
Cancellation of federal sponsorship of a project,
including the withdrawal of authority to incur expenditures
against previously awarded funds before that authority would
otherwise expire. |
- Recipient Responsibilities
The recipient has full responsibility for the conduct of
project activities under the NEH award, for adherence to the award
conditions, and for informing the NEH during the course of the
award of any significant programmatic, administrative, or
financial problems that have arisen.
The recipient is responsible for notifying the NEH about any
allegation of research misconduct if the allegation involves NEH
funded research (or an application for NEH funding) and if the
recipient's inquiry into the allegation determines there is
sufficient evidence to proceed to an investigation in accordance
with the NEH
Research Misconduct Policy (see Article
36).
The requirements of this award are contained in these
General Terms and Conditions for Awards to Organizations,
the specific terms and conditions of the award, and the applicable
federal uniform administrative requirements (see Article
25). Should there be any inconsistency between the specific
terms and conditions of an award and the General Terms and
Conditions for Awards to Organizations or the federal uniform
administrative requirements, the specific terms and conditions
will govern.
In accepting an award, the recipient assumes the legal
responsibility of administering the award in accordance with these
requirements and of maintaining documentation, which is subject to
audit, of all actions/expenditures affecting the award. Failure to
comply with the requirements of this award could result in
suspension or termination of the award and the NEH's recovery of
award funds.
- Organizational Prior Approval
System
Recipients are required to have written procedures in place for
reviewing and approving in advance proposed administrative changes
such as:
- the expenditure of project funds for items that, under the
applicable cost principles, normally require prior agency
approval (Article
5);
- the one-time extension of an award period (Article
12);
- the incurring of project costs prior to the beginning date
of an award (Article
6); and
- budget revisions (see Article
11 for exceptions).
The procedures for approving such changes are sometimes
referred to as an "organizational prior approval system."
The purpose of such a system is to ensure that:
- all award actions and expenditures are consistent with the
terms and conditions of the award, as well as with the policies
of the NEH and the recipient;
- any changes that may be made do NOT constitute a change in
the scope of the project; and,
- any deviation from the budget approved by the NEH is
necessary and reasonable for the accomplishment of project
objectives and is allowable under the applicable federal cost
principles.
Although recipients are free to design a prior approval system
that suits their particular needs and circumstances, an acceptable
system must at a minimum include the following:
- the procedure for review of proposed changes must be
in writing;
- proposed changes must be reviewed at a level beyond the
project director; and
- whenever changes are approved, the recipient has to retain
documentation of the approval for three years following the
submission of the final financial report.
To assist organizations in developing an acceptable prior
approval system, the NEH Office of Grant Management has produced a
sample prior approval form, which is included in the appendix to
this publication.
- Acknowledgment of Support and
Disclaimer
Unless advised to the contrary, all materials publicizing or
resulting from award activities shall contain an acknowledgment of
NEH support. The acknowledgment shall also include the following
statement: "Any views, findings, conclusions or recommendations
expressed in this (publication) (program) (exhibition) (website)
do not necessarily represent those of the National Endowment for
the Humanities."
- Payments, Interest, and Refunds
For most awards, a detailed explanation of payment procedures
will be found in Enclosure 1 of the award. For some awards, the
payment procedures will be stated in the specific terms and
conditions of the award.
Recipients will be paid on an advance basis, unless otherwise
specified in the award, and payment will be effected through
electronic funds transfer. Whenever possible, advances should be
consolidated to cover the anticipated cash needs for all NEH
awards to the recipient and should be deposited and maintained in
insured accounts. Recipients are also encouraged to use
women-owned and minority-owned banks (banks that are owned at
least 50 percent by women or minority group members).
Requests for advance payment shall be limited to the
recipient's immediate cash needs and are not to exceed anticipated
expenditures for a 30-day period. Award funds that have been paid
to the recipient but are unspent at the end of the award period
must be promptly refunded to the NEH.
All recipients, except states (see definition), are required to
maintain advances of federal funds in interest-bearing accounts
unless the recipient receives less than $120,000 per year in
advances of award funds or the most reasonably available
interest-bearing account would not earn more than $250 per year on
the federal cash balance, or would entail bank services charges in
excess of the interest earned.
Interest in excess of $250 a year that is earned on advanced
payments shall be remitted annually to the Department of Health
and Human Services. If possible, interest should be remitted
through an electronic medium such as the Remittance Express (REX)
Deposit system. Recipients that do not have this capability should
make payment by check and mail it to the HHS Payment Management
System, P.O. Box 6021, Rockville, MD 20852.
- Allowable Costs
The allowability of costs and cost allocation methods for work
performed under an NEH award shall be determined in accordance
with the applicable federal cost principles and the terms and
conditions of the award. However, the NEH delegates to the
recipient the authority to approve costs that the applicable cost
principles state are allowable only with the prior approval of the
funding agency, unless specifically prohibited by other articles
in these general terms and conditions, or by the specific terms
and conditions of the award. Examples of such costs are foreign
travel, pre-award costs, and equipment purchases. This delegation
does not relieve the recipient of the responsibility to document
that such charges are reasonable, necessary, and allocable to the
project.
The following circulars set forth the federal cost principles
that apply to the various types of NEH award recipients:
- OMB
Circular A-21 (2 CFR Part 220)--public and private institutions of higher
education.
- OMB
Circular A-122 (2 CFR Part 230)--nonprofit organizations that are not
institutions of higher education.
- OMB
Circular A-87 (2 CFR Part 225)--state, local, and federally recognized Indian
tribal governments.
The NEH award will specify the cost principles that apply to
the award. Copies of the cost principles may be obtained from the
NEH website or by writing to the
NEH Office of Grant Management.
All requests for budget revisions requiring NEH review shall be
signed by the institutional grant administrator and submitted to
the NEH Office of Grant Management.
Within 30 calendar days from the date of receipt of the request
for budget revision, the NEH will review the request and notify
the recipient whether or not the budget revision has been
approved. If the budget revision is still under consideration at
the end of 30 calendar days, the NEH will inform the recipient in
writing of the date by which the recipient may expect a decision.
- Pre-Award Costs
Recipients may approve project costs incurred within the 90
calendar day period immediately preceding the beginning date of
the award. Requests for pre-award costs for periods exceeding 90
calendar days must be signed by the institutional grant
administrator and submitted to the NEH Office of Grant Management
for review and approval. Pre-award expenditures are made at the
recipient's risk and the recipient's authority to approve such
costs does not impose an obligation on the NEH in the event an
award is not made or is made for an amount that is less than the
recipient anticipated.
- Equipment
Equipment is defined as tangible, nonexpendable personal
property having a useful life of more than one year and an
acquisition cost of $5,000 or more per unit. The purchase of
equipment not included in the approved project budget is allowable
only if it is specifically approved beforehand by the recipient
and there is documentation to support that the purchase is
necessary and reasonable to carry out project activities.
Equipment records must be maintained that include the
description of the equipment, the serial number or other
identification number, the source of equipment, the title holder,
the acquisition date, the cost of the equipment, the location,
use, and condition of the equipment, and any ultimate disposition
data including the date of disposal and the sale price of the
equipment. A physical inventory of the equipment must be taken and
the results reconciled with the equipment records at least once
every two years.
- Supplies
Title to supplies and other expendable property shall vest in
the recipient upon acquisition. If there is a residual inventory
of unused supplies exceeding $5,000 in total aggregate value upon
termination or completion of the project and the supplies are not
needed for any other federally-sponsored project or program, the
recipient shall retain the supplies for use on non-federal
sponsored activities or sell them, but shall in either case
compensate the federal government for its share.
- Travel Costs
Travel costs are the expenses for transportation, lodging,
subsistence, and related items incurred by those who are on
official business attributable to work under an award.
Such costs may be charged on an actual basis, on a per diem or
mileage basis in lieu of actual costs, or on a combination of the
two, provided the method used results in charges consistent with
those normally allowed by the recipient in its regular operation,
Airfare costs in excess of the customary standard commercial
airfare (coach or equivalent), federal government contract airfare
(where authorized and available), or the lowest commercial
discount airfare are unallowable except when such accommodations
would: (a) require circuitous routing; (b) require travel during
unreasonable hours; (c) excessively prolong travel; (d) result in
additional costs that would offset the transportation savings; or
(e) offer accommodations not reasonably adequate for the
traveler's medical needs. All air travel that is paid in whole or
in part with NEH funds must be undertaken on U.S. flag air
carriers, unless one or more of the situations described under
foreign travel (Article
10) apply.
- Foreign Travel
For the purposes of these provisions, foreign travel is defined
as any travel outside the United States, its territories and
possessions, Canada, and Mexico.
For college and university recipients subject to OMB Circular
A-21, no specific approval is required for foreign travel.
For recipients subject to OMB Circulars A-122 or A-87, each
separate foreign trip requires prior approval. Unless specifically
mentioned otherwise, the NEH's approval of a project budget
includes approval of all foreign travel contained therein. Foreign
travel that is not included in the approved budget requires
specific prior approval, either by the recipient under its prior
approval authority or by the NEH for those institutions or awards
not on a prior approval system.
United States Flag Air Carriers
All air transportation of persons or property that is paid in
whole or in part with NEH funds must be performed on a U.S. flag
air carrier unless any of the circumstances listed below applies:
- no U.S. flag air carrier provides service on a particular
leg of the route;
- a U.S. flag air carrier involuntarily reroutes the traveler
on a foreign air carrier;
- a foreign air carrier operates under a "code-share"
arrangement with a U.S. flag air carrier and the ticket, or
documentation for an electronic ticket, identifies the U.S. flag
air carrier's designator code and flight numbers;
- service on a foreign air carrier would be three hours or
less, and use of the U.S. flag air carrier service would at
least double the en route travel time;
- when flying between the United States and another country:
- the use of nonstop or direct U.S. flag air carrier service
would extend a person's travel time, including a delay at
origin, by 24 hours or more; or
- where U.S. nonstop or direct service is not available, the
use of a U.S. flag air carrier on every portion of the route
where it provides service would, when compared to using a
foreign air carrier:
- increase the number of aircraft changes a person would
have to make outside the U.S. by 2 or more; or
- extend travel time by 6 hours or more; or
- require a connecting time of 4 hours or more at an
overseas interchange point.
- when flying outside the United States, the use of a U.S.
flag air carrier would result in any of the situations described
in e.2. above.
Lower cost, convenience, or traveler preferences are
NOT acceptable reasons for using a foreign air carrier.
- Budget Revisions
The project budget is the schedule of anticipated project
expenditures that is approved by the NEH for carrying out the
purposes of the award. When recipients or third parties support a
portion of the project costs, the project budget includes the
nonfederal as well as the federal share of project expenses.
The NEH delegates to the recipient the authority to approve ALL
budget revisions EXCEPT for the following, which require prior
written approval from the NEH:
- the transfer to a third party (by subawarding, contracting,
or other means) of any work under an award (NEH approval is not
required for third-party transfers that were described in the
approved project plan, or for the purchase of supplies,
materials, or general support services);
- the addition of costs that are specifically disallowed by
the terms and conditions of the award;
- the transfer of funds from stipends or training allowances
to other budget categories; or
- revisions resulting from changes in the scope or objectives
of the project (see Article
14).
- Award Period and Extensions
The award period is the span of time designated in the award,
or an amendment thereto, during which the recipient has the
authority to obligate award funds and undertake project
activities. However, when the recipient determines that it is
necessary, project costs may be incurred in the 90-day period
prior to the beginning date of the award period (see Article
6).
The NEH has delegated to recipients the authority to approve a
one-time extension of the expiration date established in the
initial award if additional time is required to complete the
original scope of the project with the funds already made
available. A single extension that shall not exceed 12 months may
be made for this purpose, provided it is made prior to the
original expiration date. The institutional grant administrator
must inform the NEH Office of Grant Management in writing of the
new expiration date at least 10 days before the award is scheduled
to expire and must provide justification for the new extension
period. The recipient's authority to extend an award may not be
exercised merely for using the unliquidated balance of project
funds.
If a recipient wishes to extend an award for more than a
12-month period or determines that a second extension is
necessary, a written extension request must be submitted to the
NEH Office of Grant Management for review and approval prior to
the end of the award period. The request shall be signed by the
institutional grant administrator and shall include a detailed
justification for the extension, an estimate of the unexpended
award funds, and a plan of work for the activities that will be
undertaken during the requested extension period.
Recipients that have been offered federal matching funds by the
NEH should note that authority to extend offers of NEH funding is
not delegated to the recipient. Requests for
offer extensions must be submitted in writing to the NEH Office of
Grant Management for review and approval.
- Changes in Key Project Personnel
The replacement of the project director or the co-director or a
substantial reduction in the level of that individual's effort,
e.g., an unanticipated absence for more than three months, or a 25
percent reduction in the time devoted to the project, requires
prior written approval from the NEH. When it is required in the
specific terms and conditions of an award, written approval will
also be needed for the replacement or the substantial reduction in
the level of effort of other personnel whose work is deemed by the
NEH to be critical to the project's successful completion.
All requests for approval of changes in key project personnel
shall be signed by the institutional grant administrator and
submitted to the appropriate NEH program officer for review and
approval. Evidence of the qualifications for replacement personnel
(such as a résumé) shall be included.
- Changes in Project Scope
Any project that is carried out under an award must be
consistent with the scope of the proposal that is approved for
funding by the NEH. The scope of a project encompasses the purpose
for which the award is undertaken, the subject matter, the
treatment of the subject matter, the historical time frame of the
project, the volume of material that will be studied/treated, and
the products that are expected to result from award activities.
No changes may be made in the scope of a project without
written approval from the NEH.
All requests for a change in the scope of an award
shall be signed by the institutional grant administrator and
submitted to the appropriate NEH program officer for review and
approval.
- Reporting Requirements
A schedule of due dates for interim and final reports will be
found on the last page of the award.
A final performance report and a final Financial Status Report
shall be submitted to the NEH Office of Grant Management within
90 days after the completion date of the award
period.
Should the recipient discover an error in the Final Financial
Status Report after it has been submitted to the NEH, a revised
report must be submitted promptly. NEH shall then make any
additional payment due the recipient, or request an additional
refund, as appropriate.
Recipients that are authorized to be paid on an advance basis
are required to submit a Federal Cash Transactions Report within
30 days of the end of each calendar quarter.
Failure to submit reports on a timely basis may result in
delayed payments and the suspension of action on pending
applications from the recipient.
Detailed information on the financial and performance reporting
requirements will be found in the publications entitled
Enclosure 1, Financial Reporting Requirements and Financial
Reporting Forms and Enclosure 2,
Performance Reporting Requirements.
- Program Income
Program income is money that is earned or received by a
recipient or a subrecipient from the activities supported by award
funds or from products resulting from award activities. It
includes, but is not limited to, income from fees for services
performed and from the sale of items fabricated under an award;
usage or rental fees for equipment or property acquired under an
award; admission fees; broadcast or distribution rights; and
license fees and royalties on patents and copyrights. The federal
share of program income is determined by the percentage of total
project costs that are supported by the NEH.
- Income Earned During the Award Period
The federal share of program income earned during the award
period shall be retained by the recipient and, unless the award
specifies how such income will be used, the recipient must use
it in one or more of the following ways:
- It may be added to the existing project funding to cover
increased costs of the project or it may be used to support
other projects in the humanities;
- It may be used to finance the non-federal share of the
project; or
- It may be used to finance the federal share of the project
costs, which would result in an equivalent reduction in the
amount of the NEH award.
A report of program income earned during the award period
must be submitted with the final Financial Status Report
whenever program income is actually earned during the award
period or when the terms and conditions of the award
specifically require such a report. The report shall indicate
the total amount of program income that was earned and how it
was used.
- Income Earned After the Award Period
When the NEH's funding of a project amounts to $50,000 or
more and the total program income earned after the award period
exceeds $50,000, the NEH reserves the right to make a claim to
or restrict the use of the federal share of income earned during
the seven years following the award period. Due dates for the
submission of program income reports may be listed in the award.
However, even if the NEH does not specifically require the
submission of program income reports after the award period, it
is the recipient's responsibility to submit a report as soon as
the cumulative amount of program income earned during the seven
years after the award period exceeds $50,000.
In reporting program income earned after the award period,
the recipient shall indicate the amount and sources of the gross
income it has earned and the percentage of funding provided to
the project by the NEH. The federal share of program income will
be determined by (1) deducting the first $50,000 in gross income
from total gross income, (2) deducting 5 percent of the balance
of gross income to cover possible recipient costs, and (3)
multiplying the balance of gross income by half the percentage
of funding provided to the project by the NEH. For example if
the NEH's award of $250,000 covered 60 percent of a project's
costs and the project earned $200,000 in program income during
the seven-year reporting period, the federal share of that
income would be $42,750 ($200,000 minus $50,000 minus 5% x 30%).
Once the federal share of income equals the amount of funding
provided by the NEH, the NEH's claim to additional income will
be reduced by half.
If income is to be returned to the NEH, a check made payable
to the National Endowment for the Humanities and identified as
program income must be submitted with the report.
- Financial Management Standards
The financial management systems of recipients and their
subrecipients must meet the following standards:
- Accounting System. Recipients and
their subrecipients must have an accounting system that provides
accurate, current, and complete disclosure of all financial
transactions related to each federally sponsored project.
Accounting records must contain information pertaining to
federal awards, authorizations, obligations, unobligated
balances, assets, outlays, and income. These records must be
maintained on a current basis and balanced at least quarterly.
Cash contributions to the project from third parties must be
accounted for in the general ledger with other award funds.
Third-party in-kind (non-cash) contributions are not required to
be recorded in the general ledger, but must be under accounting
control, possibly through the use of a memorandum ledger.
- Source Documentation. Accounting
records must be supported by such source documentation as
canceled checks, bank statements, invoices, paid bills, donor
letters, time and attendance records, activity reports, travel
reports, contractual and consultant agreements, and subaward
documentation. All supporting documentation should be clearly
identified with the award and general ledger accounts which are
to be charged or credited.
The documentation required for salary charges to
awards is prescribed in detail by the cost principles applicable
to the recipient (see Article
5). The following is a very brief summary of the
requirements. Recipients must comply with all the requirements
for documentation of salary charges spelled out in the
applicable OMB Circular.
- For recipients subject to OMB Circular A-21 (educational
institutions), documentation for salary charges shall be based
on either a system of monitored workload or a system of
personnel activity reports for professional or professorial
staff. Nonprofessional employees must keep personnel activity
reports.
- For recipients subject to OMB Circular A-122 (nonprofit
organizations), documentation for all salary charges shall be
based on a system of personnel activity reports.
- For recipients subject to OMB Circular A-87 (state and
local governments), documentation for salary charges shall be
based on a system of personnel activity reports unless an
employee is working solely on a single federal award. In this
case, the charge for salary will be supported by a
certification signed by the employee or the
supervisor.
Personnel activity reports shall account on an after-the-fact
basis for one hundred percent of the employee's actual time,
separately indicating the time spent on the NEH award, other
awards or projects, vacation or sick leave, and administrative
time, if applicable. The reports must be signed by the employee,
approved by the appropriate official, be prepared at least
monthly, and coincide with a pay period. These time records
should be used to record the distribution of salary costs to the
appropriate accounts no less frequently than quarterly. (See
Appendix for Sample Activity Report.)
Formal agreements with independent contractors, such as
consultants, must include a description of the services to be
performed, the period of performance, the fee and method of
payment, an itemization of travel and other costs which are
chargeable to the agreement, and the signatures of both the
contractor and an appropriate official of the recipient
organization.
For awards that contain an offer of federal matching funds,
recipients are required to maintain:
- documentation that supports the eligibility of the gifts
certified to release federal matching dollars, and
- a record that contains the name of the donor, the donor
category as defined in the NEH
Federal Matching Fund Guidelines, the amount of the gift,
the designation of the gift as either restricted to the
project or unrestricted, the date the gift is certified to the
NEH, and the amount of federal matching funds awarded by the
NEH as a result of the certification.
If third-party in-kind (non-cash) contributions are used on a
project, the valuation of these contributions must be supported
with adequate documentation (see Article
18).
- Internal Control. Effective
control and accountability must be maintained for all cash, real
and personal property, and other assets. Recipients must
adequately safeguard all such property and must provide
assurance that it is used solely for authorized purposes.
Recipients must also have systems in place that ensure
compliance with the terms and conditions of each award.
- Budget Control. Records of
expenditures must be maintained for each project by the cost
categories of the approved budget (including indirect costs that
are charged to the project), and actual expenditures are to be
compared with budgeted amounts no less frequently than
quarterly. The NEH's approval is required for certain budget
revisions (see Article
11).
- Allowable Costs. The applicable
OMB cost principles, the General Terms and Conditions for Awards
to Organizations, and the specific terms and conditions of the
award shall be followed in determining the reasonableness,
allowability, and allocability of costs.
- Cash Management. Recipients must
also have written procedures to minimize the time elapsing
between the receipt and the disbursement of award funds to avoid
having excessive federal funds on hand. Requests for advance
payment shall be limited to the recipient's immediate cash needs
and are not to exceed anticipated expenditures for a 30-day
period.
Recipients must insure that all award funds are obligated
during the award period and paid no later than 90 days after the
end of the award period.
- Cost Sharing and Cost-Sharing
Records
Recipients are expected to share in project expenses at the
level indicated in the approved project budget. They must also
maintain auditable records of all project costs whether they are
charged to award funds or supported by cost-sharing contributions.
All cash and in-kind contributions to a project that are
provided by the recipient or by a third party are acceptable as
the recipient's cost sharing when such contributions meet the
following criteria:
- Are verifiable from the recipient's records;
- Are not included as contributions for any other
federally-assisted program;
- Are necessary and reasonable for the proper and efficient
accomplishment of project objectives;
- Are types of charges that would be allowable under the
applicable cost principles;
- Are used to support activities that are included in the
approved project workplan; and
- Are incurred during the award period.
Contributions, such as property, space, or services that are
donated to a project by the recipient are to be
valued in accordance with the applicable federal cost principles
and not on the basis of what would normally be charged for the use
of these items or services.
When the recipient's cost sharing includes third-party
in-kind contributions, the basis for determining the
valuation of volunteer services and donated property or space must
be documented and must conform to the principles set out below.
- Volunteer services that are provided to the recipient by
professional and technical personnel, consultants, and other
skilled and unskilled labor may be counted as cost sharing if
the service is an integral and necessary part of an approved
project or program. Volunteer services shall be valued at rates
consistent with those ordinarily paid for similar work within
the recipient organization. If the recipient does not have
employees performing similar work, the rates will be consistent
with those ordinarily paid by other employers for similar work
in the same labor market. In either case, a reasonable amount of
fringe benefits may be included in the valuation.
- When an employer furnishes the services of an employee,
these services shall be valued at the employee's regular rate of
pay (plus an amount of fringe benefits that is reasonable),
provided these services involve the same skills for which the
employee is normally paid.
- The value of donated equipment shall not exceed the fair
market value of equipment of the same age and condition at the
time of donation, and the value of loaned equipment shall not
exceed its fair rental value.
- The value of donated space shall not exceed the fair rental
value of comparable space, as established by an independent
appraisal of comparable space and facilities in a
privately-owned building in the same locality.
- The value assigned to donated supplies or other expendable
property should be reasonable and should not exceed the fair
market value of the property at the time of donation.
- Procurement Standards
NOTE: The standards contained in this section do not
relieve the recipient of the contractual responsibilities arising
under its contracts. The recipient is the responsible authority,
without recourse to the NEH, regarding the settlement and
satisfaction of all contractual and administrative issues arising
out of procurements entered into in support of an award or other
agreement. Matters concerning the violation of a statute are to be
referred to such federal, state, or local authority as may have
proper jurisdiction.
When procuring property or services under an award, the
recipient's procurement policies must adhere to the standards set
forth below. Subrecipients of award funds are subject to
the same policies and procedures as the recipient.
- The recipient will maintain a system for contract
administration that ensures that contractors perform in
accordance with the terms, conditions, and specifications of
their contracts or purchase orders. Recipients shall evaluate
contractor performance and document, as appropriate, whether or
not contractors have met the terms, conditions, and
specifications of the contract.
- A written standard of conduct for awarding and administering
contracts shall be maintained by the recipient. No employee,
officer, or agent of the recipient shall participate in the
selection, or in the awarding or administration of a contract
supported by federal funds if a real or apparent conflict of
interest would be involved. Such a conflict would arise when any
of the following has a financial or other interest in the firm
selected for a contract: the employee, officer, or agent; any
member of his or her immediate family; his or her partner; or an
organization which employs or is about to employ any of the
preceding.
The officers, employees, and agents of the recipient will
neither solicit nor accept gratuities, favors, or anything of
monetary value from contractors, or parties to subagreements.
However, the recipient may set standards governing when the
financial interest is not substantial or the gift is an
unsolicited item of nominal value. The standards of conduct
shall provide for disciplinary actions to be applied for
violations of such standards by officers, employees, or agents
of the recipient.
- All procurement transactions will be conducted in a manner
to provide, to the maximum extent practical, open and free
competition. The recipient should be alert to organizational
conflicts of interest or noncompetitive practices among
contractors that may restrict or eliminate competition or
otherwise restrain trade. In order to insure objective
contractor performance and eliminate unfair competitive
advantage, contractors that develop or draft specifications,
requirements, statements of work, invitations for bids and/or
requests for proposals should be excluded from competing for
such procurements. Awards shall be made to the bidder/offeror
whose bid/offer is responsive to the solicitation and is most
advantageous to the recipient, price, quality, and other factors
considered. Solicitations shall clearly set forth all
requirements that the bidder/offeror must fulfill in order for
the bid/offer to be evaluated by the recipient. When it is in
the recipient's interest to do so, any bid/offer may be
rejected.
- All recipients shall establish written procurement
procedures that meet the requirements set forth in the Appendix
to these general terms and conditions.
The Appendix also contains the provisions that must be
included in procurement contracts when applicable.
- Audit Requirements
Recipients and subrecipients that are subject to these general
terms and conditions shall have audits performed that meet the
requirements of OMB
Circular A-133. (Copies of this circular may be obtained from
the NEH website or by writing to
the NEH Office of Grant Management.)
Awards included in an A-133 audit are identified by the federal
Catalog of Federal Domestic Assistance (CFDA) number assigned to
the particular funding opportunity. With each notification of
funding, NEH provides the relevant CFDA number to the recipient.
This number appears at the bottom of the "Remarks" section of the
"Official Notice of Action" for each new award or amendment.
- Record Retention
Financial records, supporting documentation, statistical
records, and all other records pertinent to the award shall be
retained by the recipient for three years from the date of
submission of the final Financial Status Report. When the
conditions of an award require the recipient to report program
income, records relating to program income shall be retained for
three years from the date of submission of the last required
income report.
If the three-year retention period is extended because of
audits, appeals, litigation, or the settlement of claims arising
out of the performance of the project, the records shall be
retained until such audits, appeals, litigation, or claims are
resolved. Unless court action or audit proceedings have been
initiated, the recipient may substitute microfilm copies of
original records.
The NEH, the Comptroller General of the United States, and any
of their duly authorized representatives, shall have access to any
pertinent books, documents, papers, and records of the recipient
and its subrecipients to make audits, examinations, excerpts,
transcripts, and copies. Further, any contract in excess of the
simplified acquisition threshold (currently $100,000) that is
negotiated by the recipient for the purposes of carrying out the
project shall include a provision to the effect that the
recipient, the NEH, the Comptroller General, or any of their duly
authorized representatives shall have access for similar purposes
to any records of the contractor that are directly pertinent to
the project.
- CFDA Numbers (Catalog of Federal Domestic
Assistance)
The Catalog of Federal Domestic Assistance (CFDA) profiles all
federal award programs, projects, services and activities which
provide assistance or benefits to the American public and assigns
each a specific number. The CFDA is jointly issued by the Office
of Management and Budget and the General Services Administration.
The CFDA number is important for tracking purposes and is also
used by recipients and their auditors to identify the sources of
federal awards covered by an A-133 audit. With each notification
of funding, the NEH provides the relevant CFDA number to the
recipient. The number appears at the bottom of the "Remarks"
section of the "Official Notice of Action" for each new award or
amendment.
- Intangible Property
- The recipient may copyright any work that is subject to
copyright and was developed, or for which ownership was
purchased, under the award. The NEH reserves a royalty-free,
nonexclusive, and irrevocable right to reproduce, publish or
otherwise use these materials for federal purposes and to
authorize others to do so (see §__36. Intangible Property, OMB
Circular A-110).
"Federal purposes" include the use of award products in
activities or programs undertaken by the federal government, in
response to a governmental request, or as otherwise required by
federal law. However, the federal government's use of
copyrighted materials is not intended to interfere with or
disadvantage the recipient or assignee in the sale and
distribution of the award product.
The NEH may request copies of an award product for non-profit
use by the state humanities councils if the product forms an
integral part of a council-conducted program. These copies will
be provided to the councils at the cost of reproduction and
shipping, and no royalties or other fees will be charged.
- Recipients that are awarded funds for experimental,
developmental, or research work are subject to the regulations
governing patents and inventions, including government-wide
regulations issued by the Department of Commerce at 37 CFR Part
401, "Rights to Inventions made by Nonprofit Organizations and
Small Business Firms Under Government Awards, Contracts and
Cooperative Agreements."
- The NEH has the right to:
- obtain, reproduce, publish or otherwise use the data first
produced under an award; and
- authorize others to receive, reproduce, publish, or
otherwise use such data for federal purposes.
- In addition, in response to a Freedom of Information Act
(FOIA) request for research data relating to published research
findings produced under an award that were used by the federal
government in developing an agency action that has the force and
effect of law, the NEH shall request, and the recipient shall
provide within a reasonable time, the research data so that they
can be made available to the public through the procedures
established under the FOIA. If the NEH obtains the research data
solely in response to a FOIa request, the NEH may charge the
requester a reasonable fee equaling the full incremental cost of
obtaining the research data. This fee should reflect costs
incurred by the agency, the recipient, and applicable
subrecipients. This fee is in addition to any fees the agency
may assess under the FOIA (5 U.S.C. 552(a)(4)(A)). For
additional information and definition of terms, please see OMB
Circular A-110, Section §__36(d).
- Title to intangible property acquired under an award or
subaward vests upon acquisition in the recipient. The recipient
shall use that property for the originally authorized purpose
and shall not encumber the property without the NEH's approval.
The NEH reserves the right to determine the disposition of the
intangible property when it is no longer needed for the
originally authorized purpose.
- Title to Equipment
Title to equipment purchased or fabricated with NEH funds shall
be vested in the recipient organization with the understanding
that the equipment will be used for the project for which it was
obtained but without further obligation to the federal government.
The NEH may reserve the right to request the transfer of title to
the federal government or to a third party when the current per
unit fair market value of the equipment is $5,000 or more and the
equipment is no longer needed to carry out the purposes of the
project or other projects funded by government agencies.
- Uniform Administrative Requirements
Awards issued to state, local, and federally recognized Indian
tribal governments are subject to the Uniform Administrative
Requirements for Awards and Cooperative Agreements to State and
Local Governments (45 CFR Part 1174). Awards to institutions of higher
education, hospitals, and other nonprofit organizations are
subject to the uniform administrative requirements of OMB Circular
A-110 (2 CFR Part 215). The standards set forth herein and in NEH Enclosure 1
(Financial Reporting Requirements) and Enclosure 2
(Performance Reporting Requirements) are consistent with these
administrative requirements.
- Nondiscrimination
Recipients and subrecipients must execute projects,
productions, workshops, and programs in accordance with the
following laws, where applicable.
- Title VI of the Civil Rights Act of 1964,
as amended, provides that no person in the United States shall,
on the grounds of race, color, or national origin, be excluded
from participation in, be denied the benefits of, or be subject
to discrimination under any program or activity receiving
federal financial assistance. Title VI also extends protection
to persons with limited English proficiency. (42 U.S.C. 2000d et
seq.)
- Title IX of the Education Amendments of
1972 provides that no person in the United States
shall, on the basis of sex, be excluded from participation in,
be denied benefits of, or be subject to discrimination under any
education program or activity receiving federal financial
assistance. (20 U.S.C. 1681 et seq.)
- The Age Discrimination Act of 1975 provides
that no person in the United States shall, on the basis of age,
be excluded from participation in, be denied benefits of, or be
subject to discrimination under any program or activity
receiving federal financial assistance. (42 U.S.C. 6101 et seq.)
- Section 504 of the Rehabilitation Act of
1973 provides that no otherwise qualified individual
with a disability in the United States, shall, solely by reason
of his/her disability, be excluded from participation in, be
denied benefits of, or be subject to discrimination under any
program or activity receiving federal financial assistance. (29
U.S.C. 794)
- The Americans with Disabilities Act of 1990 ("ADA")
prohibits discrimination on the basis of disability in
employment (Title I), state and local government services (Title
II), places of public accommodation and commercial facilities
(Title III). (42 U.S.C. 12101-12213)
- Lobbying Activities
The Byrd Anti-Lobbying Amendment, 31 U.S.C. 1352, prohibits
recipients of federal contracts, awards, cooperative agreements,
and loans from using appropriated funds to influence the Executive
or Legislative Branches of the federal government in connection
with a specific contract, award, cooperative agreement, loan, or
any other award covered by §1352. 18 U.S.C. 1913 makes it a crime
to use funds appropriated by Congress to influence members of
Congress regarding congressional legislation or appropriations.
Finally, Attachment B25 of Office of Management and Budget
Circular A-122 designates the following as unallowable charges to
award funds or cost sharing: certain electioneering activities,
financial support for political parties, attempts to influence
federal or state legislation either directly or through
grass-roots lobbying, and some legislative liaison activities.
The NEH is required by the provisions of its appropriations act
to include the text of 18 U.S.C. 1913 in all of its award,
cooperative agreement, and contract documents.
Text of 18 U.S.C. 1913:
No part of the money appropriated by any enactment
of Congress shall, in the absence of express authorization by
Congress, be used directly or indirectly to pay for any personal
service, advertisement, telegram, telephone, letter, printed or
written matter, or other device, intended or designed to
influence in any manner a Member of Congress, a jurisdiction, or
an official of any government, to favor, adopt, or oppose, by
vote or otherwise, any legislation, law, ratification, policy,
or appropriation, whether before or after the introduction of
any bill, measure, or resolution proposing such legislation,
law, ratification, policy, or appropriation; but this shall not
prevent officers or employees of the United States or of its
departments or agencies from communicating to any such Member or
official, at his request, or to Congress or such official,
through the proper official channels, requests for any
legislation, law, ratification, policy, or appropriations which
they deem necessary for the efficient conduct of the public
business, or from making any communication whose prohibition by
this section might, in the opinion of the Attorney General,
violate the Constitution or interfere with the conduct of
foreign policy, counter-intelligence, intelligence, or national
security activities. Violations of this section shall constitute
violations of section 1352(a) of title 31.
- Drug-Free Workplace Requirements
Recipients are required to maintain a drug-free workplace. The
Drug-Free Workplace Act of 1988, 41 U.S.C. 701, and the NEH
regulations at Subpart B of 45 CFR Part 1173, "Governmentwide
Requirements for Drug-Free Workplace (Financial Assistance)"
require recipients to:
- have an on-going drug-free awareness program;
- publish a drug-free workplace statement notifying employees
that the unlawful manufacture, distribution, dispensing,
possession, or use of a controlled substance is prohibited in
the recipient's workplace;
- maintain evidence that this statement was given to each
employee engaged in the performance of the award;
- take actions concerning employees who are convicted of
violating drug statutes in the workplace; and
- identify in documents kept on file in its office all known
workplace(s) where award activities will be carried out.
Further details on the drug-free workplace requirements are
contained in the NEH regulations referenced above and are
available on the NEH website
(35-page PDF).
- Debarment and Suspension
Federal agencies and recipients are prohibited from doing
business with any organization or person (as a recipient,
subrecipient, contractor, or key employee) if they have been
debarred or suspended by any federal department or agency.
The OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement) contained in 2 CFR Parts 180 and 3369 apply to this award. The recipient must comply, and must require subrecipients (e.g., contractors receiving $25,000 or more, regrantees,
and seminar participants) to comply with these regulations, which are available here.
In the event of suspension or debarment, the information is
made publicly available through the Excluded Parties List
System, maintained by the U.S. General Services
Administration.
- Labor Standards
- Employment of Professional Performers
Recipients that employ professional performers and related or
supporting professional personnel under an award (including but
not limited to scriptwriters, actors, extras, musicians, stage
hands, scenery designers, technicians, electricians,
cinematographers) are subject to the labor standards set forth
in 29 CFR Part 505, "Labor Standards on Projects or Productions
Assisted by Awards from the National Endowments for the Arts and
Humanities." Recipients are required to provide written
assurance that
- these employees will be paid, without subsequent deduction
or rebate on any account, not less than the minimum
compensation as determined in accordance with 29 CFR 505.3 to
be the prevailing minimum compensation for persons employed on
similar activities (e.g., union or guild rates), and
- no part of any project or production which is financed in
whole or in part under an award will be performed or engaged
in under working conditions which are unsanitary or hazardous
or dangerous to the health and safety of the employee engaged
in such project or production.
These regulations apply to faculty and staff employed by
educational institutions only if such employees are hired
primarily to engage in or to assist in performance activities.
Regular faculty or staff hired primarily to teach are excluded
even though their teaching activities may include performing or
assisting in a performance.
Award funds will not be released until the NEH has received
the signed form ESA-38, "Assurances as to Labor Standards...."
This form and the applicable Department of Labor regulations may
be obtained from the NEH Office of Grant Management.
- Employment of Laborers and Mechanics under
Construction Contracts
Construction or renovation projects funded by federal funds,
in whole or in part, are subject in their entirety to the
Davis-Bacon Act as amended, (40 USC 276a through 276a-5). Award
recipients are required by law to furnish assurances to the
Secretary of Labor that all laborers and mechanics employed by
contractors or subcontractors on NEH-supported construction
projects shall be paid wages at rates that are not less than
those prevailing on similar construction in the locality, as
determined by the Secretary of Labor.
Additional information is available by contacting the U.S.
Department of Labor, Wage and Hour Division, Division of
Contract Standards and Operations, 200 Constitution Avenue, NW,
Washington DC 20210, or from the "Davis-Bacon
and Related Acts Home Page."
- Native American Graves Protection and
Repatriation Act of 1990 (25 U.S.C. 3001 et seq, and 43 CFR Part
10)
The Native American Graves Protection and Repatriation Act of
1990 (NAGPRA) provides protection of Native American graves and
items, i.e., human remains, funerary objects, and sacred objects.
NAGPRA applies to any organization which controls or possesses
Native American human remains and associated funerary objects and
which receives federal funding, even for a purpose unrelated to
the Act. More information may be found on the National Park Service
website.
- National Historic Preservation Act of 1966 (16
U.S.C. 470 et seq)
Recipients are required to identify to the NEH all property
listed or eligible for listing on the National Register of
Historic Places that will be affected by the NEH award, and to
provide any information we may need with respect to the NEH award,
to comply with Section 106 of the National Historic Preservation
Act of 1966.
Awards supporting the construction of a free-standing
structure, building renovations, or additions to buildings of any
age are required to consult with their state historic preservation
officer to determine whether a property or site is listed, or is
eligible for listing, in the National Register of Historic Places.
The preservation officer's eligibility determination must be
submitted to the NEH.
If a property is eligible for or listed in the National
Register, the recipient must obtain the state historic
preservation officer's written comments as to the effect of the
project on the building or site, in accordance with the guidelines
set forth in the Secretary of the Interior's "Standards for
Rehabilitation and Guidelines for Rehabilitating Historic
Buildings." This letter must be provided to the NEH before
federal funds are released.
- Dissemination of Project
Results
Recipients are expected to publish or otherwise make publicly
available the results of work conducted under an award. Unless
otherwise specified in the award documents, two copies of any
published material resulting from award activities should be
forwarded to the appropriate NEH program officer as soon as it
becomes available. This material should be labeled with the
identifying NEH award ID number.
All publication and distribution agreements shall include
provisions giving the government a royalty-free, nonexclusive and
irrevocable right to reproduce, publish or otherwise use the
material for federal purposes and requiring the acknowledgment of
NEH support. The publication shall also include the disclaimer
contained in Article 3
of these General Terms and Conditions for Awards to
Organizations.
- Activities Outside the United
States
Prior to undertaking activities outside the United States,
recipients shall ensure that all project staff secure the
necessary passports, visas or other required documents for entry
into foreign countries. Recipients shall also obtain the
appropriate licenses, permits, or approvals. The recipient must
notify the NEH if a permit is denied or revoked after an award has
been issued, or if an unforeseen circumstance, such as a natural
disaster or political turmoil, threatens or prevents the recipient
from carrying out project activities. These situations are
considered on a case by case basis to determine whether the award
should be suspended or if a revised plan of work is feasible.
Arrangements for liability and medical insurance for staff and
foreign workers engaged on project activities are the
responsibility of the recipient.
The NEH does not assume responsibility for recipient compliance
with the laws and regulations of the country in which work is to
be conducted.
Recipients should consult the updated travel advisories and
warnings issued by the State Department through the American
Citizens Services at 202-647-5225 or fax service 202-647-3000 or
at the State
Department's website.
- Data Collection
Data collection activities performed under an award are the
responsibility of the recipient, and NEH support of the project
does not constitute approval of the survey design, questionnaire
content, or data collection procedures. The recipient shall not
represent to respondents that such data are being collected for,
or in association with, the NEH or any other government agency
without the specific written approval of the data collection plan
or device by the NEH. However, this requirement is not intended to
preclude mention of NEH support of the project in response to an
inquiry or the acknowledgment of such support in any publication
of this data.
The federal government has the right to obtain, reproduce,
publish or otherwise use the data first produced under an award
and authorize others to do so for government purposes.
- Research Misconduct
The NEH will take appropriate action against individuals or
organizations upon a determination that misconduct has occurred in
proposing, performing, or reviewing research or in reporting
results from research activities funded by the NEH in accordance
with the NEH Research Misconduct Policy. The NEH may also
take interim action during an investigation.
Research misconduct is defined as fabrication, falsification,
or plagiarism in proposing, performing, or reviewing research, or
in reporting research results.
The recipient bears primary responsibility for prevention and
detection of research misconduct and for the inquiry,
investigation, and adjudication of research misconduct alleged to
have occurred in association with its own institution.
The NEH Inspector General in most cases will refer an
allegation of research misconduct made directly to the NEH to the
appropriate recipient and will rely on the recipient to make the
initial response. Circumstances in which the NEH may elect not to
defer to the recipient include, but are not limited to, the
following: the agency determines the recipient is not prepared to
handle the allegation in a manner consistent with this policy;
agency involvement is needed to protect the public interest; or
the allegation involves an entity of sufficiently small size that
it cannot reasonably conduct the investigation itself. At any
time, however, the NEH may proceed with its own inquiry or
investigation. If the allegation of research misconduct is first
made to the recipient, the recipient will notify the NEH if the
allegation meets the definition of research misconduct given
above, and if the recipient's inquiry into the allegation
determines there is sufficient evidence to proceed to an
investigation.
At any time during an inquiry or investigation, the recipient
will immediately notify the NEH if NEH resources or interests are
threatened; if public health or safety is at risk; if research
activities should be suspended; if there is reasonable indication
of possible violations of civil or criminal law; if federal action
is required to protect the interests of those involved in the
investigation; if the recipient believes the inquiry or
investigation may be made public prematurely so that appropriate
steps can be taken to safeguard evidence and protect the rights of
those involved; or if the research community or public should be
informed.
The NEH will make a finding of misconduct or take action on
such a finding only after careful inquiry and investigation by a
recipient, by another federal agency or by the NEH. In the event
of a finding of research misconduct, the NEH will determine what
administrative actions are appropriate.
Administrative actions available include, but are not limited
to, appropriate steps to correct the research record; letters of
reprimand; the imposition of special certification or assurance
requirements to ensure compliance with applicable regulations or
terms of an award; suspension or termination of an active award;
or suspension and debarment in accordance with applicable NEH and
government-wide rules on suspension and debarment. In the event of
suspension or debarment, the information is made publicly
available through the Excluded Parties List System at
http://www.epls.gov, maintained by the U.S. General Services
Administration. If the NEH Inspector General believes that
criminal or civil fraud violations may have occurred, the
Inspector General shall promptly inform the Department of Justice.
The text of the NEH
Research Misconduct Policy is available online. Possible
misconduct in activities funded by the NEH should be reported to
the NEH Office of the Inspector General, 1100 Pennsylvania Avenue,
NW, Washington, DC 20506, 202-606-8350.
- Code of Ethics for Projects Related to
Native Americans
Recipients have the responsibility of ensuring that researchers
and scholars working on NEH-sponsored projects related to Native
Americans, Aleut, Eskimo, or Native Hawaiian peoples will adhere
to certain provisions protecting the rights of native communities
and peoples as detailed in the Code of Ethics for Projects Related
to Native Americans. The code is available on the NEH website.
- Suspension and Termination
Awards may be terminated in whole or in part:
- by the NEH, if a recipient materially fails to comply with
the terms and conditions of an award;
- by the NEH when the NEH has other reasonable cause;
- by the NEH, when ordered under the NEH Research Misconduct
Policy;
- by the NEH with the consent of the recipient, in which case
the two parties shall agree upon the termination conditions,
including the effective date and, in the case of partial
termination, the portion of the project to be terminated; or
- by the recipient upon sending to the NEH written
notification setting forth the reasons for such termination, the
effective date, and, in the case of partial termination, the
portion of the project to be terminated. However, if the NEH
determines that the reduced or modified portion of the award
will not accomplish the purposes for which the award was made,
it may terminate the award in its entirety either unilaterally
or with the consent of the recipient.
When the NEH determines that a recipient has failed to comply
with the terms and conditions of the award, the NEH may suspend or
terminate the award for cause. Normally, this action will be taken
only after the recipient has been notified of the deficiency and
given sufficient time to correct it, but this does not preclude
immediate suspension or termination when such action is required
to protect the interests of the government.
In the event that an award is suspended and corrective action
is not taken within 90 days of the effective date, the NEH may
issue a notice of termination. No costs that are incurred during
the suspension period or after the effective date of termination
will be allowable except those that are specifically authorized by
the suspension or termination notice or those that, in the opinion
of the NEH, could not have been reasonably avoided.
Within 30 days of the termination date, the recipient shall
furnish to the NEH a summary of progress achieved under the award,
an itemized accounting of charges incurred against award funds and
cost sharing prior to the effective date of the suspension or
termination, and a separate accounting and justification for any
costs that may have been incurred after this date.
- Termination Review Procedures
A recipient who has received a notice of termination may
request the NEH's review of the termination action. The request
must be postmarked no later than 30 days after the date of the
termination notice and should be addressed to the Deputy Chairman,
National Endowment for the Humanities, 1100 Pennsylvania Avenue,
NW, Washington, D.C. 20506.
The request for review must contain a full statement of the
recipient's position and the pertinent facts and reasons that
support such a position. The Deputy Chairman will promptly
acknowledge the request for review and appoint a review committee
of at least three staff members. Pending the resolution of the
review, the notice of termination will remain in effect.
None of the review committee members may be from the NEH
program or the section of the Office of Grant Management that
recommended termination or was responsible for monitoring the
programmatic or administrative aspects of the award. The committee
will have full access to all relevant NEH background materials.
The committee may also request the submission of additional
information from the recipient or the NEH staff and, at its
discretion, may meet with representatives of both groups to
discuss the pertinent issues. All review activities will be fully
documented by the committee. Based on its review, the committee
will present its written recommendation to the Deputy Chairman,
who will advise the parties concerned of the final
decision.
Appendix
- Procurement
Procedures
All recipients shall establish written procurement procedures
that provide for, at a minimum, the following procedural
requirements:
- Recipients must ensure that all parties with whom they
contract for goods or services are not debarred or suspended
from doing business with the federal government when (1) the
amount of the contract is $25,000 or more, or (2) the contract
requires NEH consent, or (3) the contract is for
federally-required audit services.
Recipients may do this in one of three ways:
- by checking the Excluded
Parties List System;
- by obtaining a certification from the contractor
(available on the NEH website under "Grant Management"); or
- by adding the following clause to the contract or
agreement: "By signing this contract, you certify that you are
not presently debarred, suspended, proposed for debarment,
declared ineligible, or voluntarily excluded from
participation in this transaction by any federal department or
agency."
- Proposed procurements are to be reviewed to avoid the
purchase of unnecessary or duplicative items. Where appropriate,
an analysis shall be made of lease and purchase alternatives to
determine which would be the most economical, practical
procurement.
- Solicitations for goods and services shall provide the
following:
- A clear and accurate description of the technical
requirements for the material, product, or service to be
procured. In competitive procurements, such a description
shall not contain features which unduly restrict competition.
- Requirements which the bidder/offeror must fulfill and all
other factors to be used in evaluating bids or proposals.
- Whenever practicable, a description of technical
requirements in terms of the functions to be performed or the
performance required, including the range of acceptable
characteristics or minimum acceptable standards.
- The specific features of "brand name or equal"
descriptions that bidders are required to meet when such items
are included in the solicitation.
- Preference, to the extent practical and economically
feasible, for products and services that conserve natural
resources, protect the environment, and are energy
efficient.
- The recipient shall make positive efforts to assure that
small businesses, minority-owned firms, and women's business
enterprises are used whenever possible. Organizations receiving
federal awards shall take all the steps outlined below to
further this goal. This shall include:
- placing qualified small, minority-owned, and women's
business enterprises on solicitation lists;
- assuring that these businesses are solicited whenever they
are potential sources;
- contracting with consortiums of small, minority-owned, or
women's business enterprises, when a contract is too large for
one of these firms to handle individually;
- using the services and assistance, as appropriate, of such
organizations as the Small Business Administration and the
Department of Commerce's Minority Business Development Agency;
and
- considering in the contract process whether firms
competing for larger contracts intend to subcontract with
small businesses, minority-owned firms, and women's business
enterprises.
- The type of procurement instrument used, e.g., fixed price
contracts, cost reimbursable contracts, incentive contracts,
purchase orders, will be determined by the recipient, but must
be appropriate for the particular procurement and for promoting
the best interests of the program involved. The
"cost-plus-a-percentage-of-cost" or "percentage of construction
cost" methods shall not be used.
- Contracts will be made only with responsible contractors who
possess the potential ability to perform successfully under the
terms and conditions of a proposed procurement. Consideration
should be given to such matters as contractor integrity, the
record of past performance, financial and technical resources or
accessibility to other necessary resources.
- Some form of price or cost analysis should be made in
connection with every procurement action. Price analysis may be
accomplished in various ways, including the comparison of price
quotations submitted, market prices and similar indicia,
together with discounts. Cost analysis is the review and
evaluation of each element of cost to determine reasonableness,
allocability, and allowability.
- Procurement records and files for purchases in excess of the
simplified acquisition threshold (currently $100,000) shall
include the basis for contractor selection, justification for
lack of competition when competitive bids or offers are not
obtained, and the basis for award cost or price.
- Contract Provisions
- Recipient contracts in excess of the simplified acquisition
threshold (currently $100,000) must provide for:
- Administrative, contractual, or legal remedies in
instances where contractors violate or breach contract terms,
and such remedial actions as may be appropriate.
- Termination for cause and for convenience by the
recipient, including the manner by which it will be effected
and the basis for settlement. In addition, these contracts
shall also contain a description of the conditions under which
the contract may be terminated for default as well as
conditions where the contract may be terminated because of
circumstances beyond the control of the contractor.
- Access by the recipient, the NEH, the Comptroller General
of the United States, or any other duly authorized
representatives to any books, documents, papers, and records
of the contractor which are directly pertinent to that
specific contract for the purpose of making audit,
examination, excerpts, and transcriptions.
- All contracts, including small purchases, shall contain the
following provisions as applicable:
- Equal Employment Opportunity
All contracts awarded by recipients and their contractors
and subrecipients having a value of more than $10,000 must
contain a provision requiring compliance with Executive Order
11246, entitled "Equal Employment Opportunity" as amended by
Executive Order 11375, and as supplemented in Department of
Labor regulations (41 CFR, Part 60).
- Copeland "Anti-Kick Back" Act (18 U.S.C. 874)
All contracts and subawards in excess of $2,000 for
construction or repair awarded by recipients and subrecipients
shall include a provision for compliance with the Copeland
"Anti-Kick Back" Act as supplemented in Department of Labor
regulations (29 CFR, Part 3). The Act provides that each
contractor or subrecipient shall be prohibited from inducing,
by any means, any person employed in the construction,
completion, or repair of public work, to give up any part of
the compensation to which he is otherwise entitled. The
recipient shall report all suspected or reported violations to
the federal awarding agency.
- Davis-Bacon Act (40 U.S.C. 276a to a-5)
All construction contracts awarded by the recipient and
subrecipients of more than $2,000 shall include a provision
for compliance with the Davis-Bacon Act and as supplemented by
Department of Labor regulations (29 CFR Part 5). Under this
Act, contractors shall be required to pay wages to laborers
and mechanics at a rate not less than the minimum wages
specified in a wage determination made by the Secretary of
Labor. In addition, contractors shall be required to pay wages
not less than once a week. The recipient shall place a copy of
the current prevailing wage determination issued by the
Department of Labor in each solicitation and the award of a
contract shall be conditioned upon the acceptance of the wage
determination. The recipient shall report all suspected or
reported violations to the federal sponsoring agency.
- Preservation of Open Competition and Government Neutrality
Towards Government Contractors' Labor Relations on Federal and
Federally-Funded Construction Projects (Executive Orders 13202
and 13208)
Effective February 18, 2001, recipients and subrecipients
awarding new construction contracts shall ensure that neither
the bid specifications, project agreements, nor other
controlling documents for construction contracts shall:
- Require or prohibit bidders, offerors, contractors, or
subcontractors to enter into or adhere to agreements with
one or more labor organizations, on the same or other
related construction project(s); or
- Otherwise discriminate against bidders, offerors,
contractors, or subcontractors for becoming or refusing to
become or remain signatories or otherwise to adhere to
agreements with one or more labor organizations, on the same
or other related construction project(s).
- Contract Work Hours and Safety Standards Act (40 U.S.C.
327-330)
Where applicable, all contracts awarded by recipients in
excess of $100,000 for construction contracts and other
contracts that involve the employment of mechanics or
laborers, shall include a provision for compliance with
sections 102 and 107 of the Contract Work Hours and Safety
Standards Act as supplemented by Department of Labor
regulations (29 CFR Part 5). Under section 102 of the Act,
each contractor shall be required to compute the wages of
every mechanic and laborer on the basis of a standard work day
of 8 hours and a standard work week of 40 hours. Work in
excess of the standard workday or workweek is permissible
provided that the worker is compensated at a rate of not less
than 1½ times the basic rate of pay for all hours worked in
excess of 8 hours in any calendar day or 40 hours in the
workweek.
Section 107 of the Act is applicable to construction work
and provides that no laborer or mechanic shall be required to
work in surroundings or under working conditions which are
unsanitary, hazardous, or dangerous to his/her health and
safety and health standards promulgated by the Secretary of
Labor. These requirements do not apply to the purchases of
supplies or materials or articles ordinarily available on the
open market, or contracts for transportation or transmission
of intelligence.
- Rights to Inventions and Materials Generated Under a
Contract or Agreement
Contracts or agreements for the performance of
experimental, developmental, or research work shall provide
for the rights of the government and the recipient in any
resulting invention in accordance with 37 CFR Part 401 and any
implementing regulations issued by the awarding agency.
- Clean Air Act of 1970 (42 U.S.C. 7401 et seq.) and the
Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.)
as amended
Contracts and subawards of amounts in excess of $100,000
shall contain a provision that requires the recipient to agree
to comply with all applicable standards, orders or regulations
issued pursuant to the Clean Air Act of 1970 and the Federal
Water Pollution Control Act as amended. Violations shall be
reported to the federal sponsoring agency and the Regional
Office of the Environmental Protection Agency (EPA).
- Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)
Contractors who apply or bid for an award of $100,000 or
more must file a certification with the recipient stating that
they will not and have not used federal appropriated funds to
pay any person or organization for influencing or attempting
to influence an officer or employee of any agency, a member of
Congress, officer or employee of Congress, or an employee of a
member of Congress in connection with obtaining any federal
contract, award, cooperative agreement, loan, or any other
award covered by 31 U.S.C. 1352. Such contractors must also
disclose to the recipient any lobbying that takes place in
connection with obtaining any federal
award.
- Federal Guidance
- Buy American Act
Consistent with the Buy American Act, 41 U.S.C. 10a-c and
Public Law 105-277, recipients and subrecipients who purchase
equipment and products with award funds should purchase only
American-made equipment and products.
- Welfare-to-Work Initiative
To supplement the welfare-to-work initiative, recipients and
their subrecipients are encouraged, whenever possible, to hire
welfare recipients and to provide additional needed training
and/or mentoring.
- Seat Belt Usage
Executive Order 13043 of April 16, 1997 requires each federal
agency to encourage contractors, subcontractors and recipients
to adopt and enforce on-the-job seat belt policies and programs
for their employees when operating company-owned, rented, or
personally owned vehicles.
- Sample Prior Approval
Form
Sample
Prior Approval Form (2-page PDF)
- Sample Activity
Report
Sample
Activity Report (1-page PDF)
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