[Code of Federal Regulations]
[Title 24, Volume 3]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR570.502]

[Page 132-133]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
  CHAPTER V--OFFICE OF ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND 
        DEVELOPMENT, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 570_COMMUNITY DEVELOPMENT BLOCK GRANTS--Table of Contents
 
                     Subpart J_Grant Administration
 
Sec. 570.502  Applicability of uniform administrative requirements.

    (a) Recipients and subrecipients that are governmental entities 
(including public agencies) shall comply with the requirements and 
standards of OMB Circular No. A-87, ``Cost Principles for State, Local, 
and Indian Tribal Governments''; OMB Circular A-128, ``Audits of State 
and Local Governments'' (implemented at 24 CFR part 44); and with the 
following sections of 24 CFR part 85 ``Uniform Administrative 
Requirements for Grants and Cooperative Agreements to State and Local 
Governments'' or the related CDBG provision, as specified in this 
paragraph:
    (1) Section 85.3, ``Definitions'';
    (2) Section 85.6, ``Exceptions'';
    (3) Section 85.12, ``Special grant or subgrant conditions for `high-
risk' grantees'';
    (4) Section 85.20, ``Standards for financial management systems,'' 
except paragraph (a);
    (5) Section 85.21, ``Payment,'' except as modified by Sec. 570.513;
    (6) Section 85.22, ``Allowable costs'';
    (7) Section 85.26, ``Non-federal audits'';
    (8) Section 85.32, ``Equipment,'' except in all cases in which the 
equipment is sold, the proceeds shall be program income;
    (9) Section 85.33, ``Supplies'';
    (10) Section 85.34, ``Copyrights'';
    (11) Section 85.35, ``Subawards to debarred and suspended parties'';
    (12) Section 85.36, ``Procurement,'' except paragraph (a);
    (13) Section 85.37, ``Subgrants'';
    (14) Section 85.40, ``Monitoring and reporting program 
performance,'' except paragraphs (b) through (d) and paragraph (f);
    (15) Section 85.41, ``Financial reporting,'' except paragraphs (a), 
(b), and (e);
    (16) Section 85.42, ``Retention and access requirements for 
records,'' except that the period shall be four years;
    (17) Section 85.43, ``Enforcement'';
    (18) Section 85.44, ``Termination for convenience'';
    (19) Section 85.51 ``Later disallowances and adjustments'' and
    (20) Section 85.52, ``Collection of amounts due.''
    (b) Subrecipients, except subrecipients that are governmental 
entities, shall comply with the requirements and standards of OMB 
Circular No. A-122, ``Cost Principles for Non-profit Organizations,'' or 
OMB Circular No. A-21, ``Cost Principles for Educational Institutions,'' 
as applicable, and OMB Circular A-133, ``Audits of Institutions of 
Higher Education and Other Nonprofit Institutions'' (as set forth in 24 
CFR part 45). Audits shall be conducted annually. Such subrecipients 
shall also comply with the following provisions of the Uniform 
Administrative requirements of OMB Circular A-110 (implemented at 24 CFR 
part 84, ``Uniform Administrative Requirements for Grants and Agreements 
With Institutions of Higher Education, Hospitals and Other Non-Profit 
Organizations'') or the related CDBG provision, as specified in this 
paragraph:
    (1) Subpart A--``General'';
    (2) Subpart B--``Pre-Award Requirements,'' except for Sec. 84.12, 
``Forms for Applying for Federal Assistance'';
    (3) Subpart C--``Post-Award Requirements,'' except for:
    (i) Section 84.22, ``Payment Requirements.'' Grantees shall follow 
the standards of Sec. Sec. 85.20(b)(7) and 85.21 in making payments to 
subrecipients;

[[Page 133]]

    (ii) Section 84.23, ``Cost Sharing and Matching'';
    (iii) Section 84.24, ``Program Income.'' In lieu of Sec. 84.24, 
CDBG subrecipients shall follow Sec. 570.504;
    (iv) Section 84.25, ``Revision of Budget and Program Plans'';
    (v) Section 84.32, ``Real Property.'' In lieu of Sec. 84.32, CDBG 
subrecipients shall follow Sec. 570.505;
    (vi) Section 84.34(g), ``Equipment.'' In lieu of the disposition 
provisions of Sec. 84.34(g), the following applies:
    (A) In all cases in which equipment is sold, the proceeds shall be 
program income (prorated to reflect the extent to which CDBG funds were 
used to acquire the equipment); and
    (B) Equipment not needed by the subrecipient for CDBG activities 
shall be transferred to the recipient for the CDBG program or shall be 
retained after compensating the recipient;
    (vii) Section 84.51 (b), (c), (d), (e), (f), (g), and (h), 
``Monitoring and Reporting Program Performance'';
    (viii) Section 84.52, ``Financial Reporting'';
    (ix) Section 84.53(b), ``Retention and access requirements for 
records.'' Section 84.53(b) applies with the following exceptions:
    (A) The retention period referenced in Sec. 84.53(b) pertaining to 
individual CDBG activities shall be four years; and
    (B) The retention period starts from the date of submission of the 
annual performance and evaluation report, as prescribed in 24 CFR 
91.520, in which the specific activity is reported on for the final time 
rather than from the date of submission of the final expenditure report 
for the award;
    (x) Section 84.61, ``Termination.'' In lieu of the provisions of 
Sec. 84.61, CDBG subrecipients shall comply with Sec. 570.503(b)(7); 
and
    (4) Subpart D--``After-the-Award Requirements,'' except for Sec. 
84.71, ``Closeout Procedures.''

[53 FR 8058, Mar. 11, 1988, as amended at 60 FR 1916, Jan. 5, 1995; 60 
FR 56915, Nov. 9, 1995]