|
 |
|
|
 |
|
||||||||||
TITLE 34--EDUCATION
PART 74_ADMINISTRATION OF GRANTS AND AGREEMENTS WITH INSTITUTIONS OF
HIGHER EDUCATION, HOSPITALS, AND OTHER NON-PROFIT ORGANIZATIONS
Subpart A_General
Sec.
74.1 Purpose.
74.2 Definitions.
74.3 Effect on other issuances.
74.4 Deviations.
74.5 Subawards.
Subpart B_Pre-Award Requirements
74.10 Purpose.
74.11 Pre-award policies.
74.12 Forms for applying for Federal assistance.
74.13 Debarment and suspension.
74.14 Special award conditions.
74.15 Metric system of measurement.
74.16 Resource Conservation and Recovery Act.
74.17 Certifications and representations.
Subpart C_Post-Award Requirements
Financial and Program Management
74.20 Purpose of financial and program management.
74.21 Standards for financial management systems.
74.22 Payment.
74.23 Cost sharing or matching.
74.24 Program income.
74.25 Revision of budget and program plans.
74.26 Non-Federal audits.
74.27 Allowable costs.
74.28 Period of availability of funds.
Property Standards
74.30 Purpose of property standards.
74.31 Insurance coverage.
74.32 Real property.
74.33 Federally-owned and exempt property.
74.34 Equipment.
74.35 Supplies and other expendable property.
74.36 Intangible property.
74.37 Property trust relationship.
Procurement Standards
74.40 Purpose of procurement standards.
74.41 Recipient responsibilities.
74.42 Codes of conduct.
74.43 Competition.
74.44 Procurement procedures.
74.45 Cost and price analysis.
74.46 Procurement records.
74.47 Contract administration.
74.48 Contract provisions.
Reports and Records
74.50 Purpose of reports and records.
74.51 Monitoring and reporting program performance.
74.52 Financial reporting.
74.53 Retention and access requirements for records.
Termination and Enforcement
74.60 Purpose of termination and enforcement.
74.61 Termination.
74.62 Enforcement.
Subpart D_After-the-Award Requirements
74.70 Purpose.
74.71 Closeout procedures.
74.72 Subsequent adjustments and continuing responsibilities.
74.73 Collection of amounts due.
Appendix A to Part 74--Contract Provisions
Authority: 20 U.S.C. 1221e-3 and 3474; OMB Circular A-110, unless
otherwise noted.
Source: 59 FR 34724, July 6, 1994, unless otherwise noted.
Subpart A_General
Sec. 74.1 Purpose.
(a) This part establishes uniform administrative requirements for
Federal grants and agreements awarded to institutions of higher
education, hospitals, and other non-profit organizations.
(b) The Secretary does not impose additional or inconsistent
requirements, except as provided in Sec. Sec. 74.4 and 74.14 or unless
specifically required by Federal statute or executive order.
(c) This part applies to all recipients other than State and local
governments and Indian tribal organizations. Uniform requirements for
State and local governments and tribal organizations are in 34 CFR Part
80--Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments.
(d) Non-profit organizations that implement Federal programs for the
States are also subject to State requirements.
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
Sec. 74.2 Definitions.
The following definitions apply to this part:
Accrued expenditures means the charges incurred by the recipient
during a given period requiring the provision of funds for--
(1) Goods and other tangible property received;
(2) Services performed by employees, contractors, subrecipients, and
other payees; and
(3) Other amounts becoming owed under programs for which no current
services or performance is required.
Accrued income means the sum of--
(1) Earnings during a given period from--
(i) Services performed by the recipient; and
(ii) Goods and other tangible property delivered to purchasers; and
(2) Amounts becoming owed to the recipient for which no current
services or performance is required by the recipient.
Acquisition cost of equipment means the net invoice price of the
equipment, including the cost of modifications, attachments,
accessories, or auxiliary apparatus necessary to make the property
usable for the purpose for which it was acquired. Other charges, such as
the cost of installation, transportation, taxes, duty, or protective in-
transit insurance, shall be included or excluded from the unit
acquisition cost in accordance with the recipient's regular accounting
practices.
Advance means a payment made by Treasury check or other appropriate
payment mechanism to a recipient upon its request either before outlays
are made by the recipient or through the use of predetermined payment
schedules.
Award means financial assistance that provides support or
stimulation to accomplish a public purpose. Awards include grants and
other agreements in the form of money or property, in lieu of money, by
the Federal Government to an eligible recipient. The term does not
include--
(1) Technical assistance, which provides services instead of money;
(2) Other assistance in the form of loans, loan guarantees, interest
subsidies, or insurance;
(3) Direct payments of any kind to individuals; and
(4) Contracts which are required to be entered into and administered
under procurement laws and regulations.
Cash contributions means the recipient's cash outlay, including the
outlay of money contributed to the recipient by third parties.
Closeout means the process by which the Secretary determines that
all applicable administrative actions and all required work of the award
have been completed by the recipient and Department of Education (ED).
Contract means a procurement contract under an award or subaward,
and a procurement subcontract under a recipient's or subrecipient's
contract.
Cost sharing or matching means that portion of project or program
costs not borne by the Federal Government.
Date of completion means the date on which all work under an award
is completed or the date on the award document, or any supplement or
amendment thereto, on which Federal sponsorship ends.
Disallowed costs means those charges to an award that the Secretary
determines to be unallowable, in accordance with the applicable Federal
cost principles or other terms and conditions contained in the award.
Equipment means tangible nonexpendable personal property including
exempt property charged directly to the award having a useful life of
more than one year and an acquisition cost of $5,000 or more per unit.
However, consistent with recipient policy, lower limits may be
established.
Excess property means property under the control of ED that is no
longer required for its needs or the discharge of its responsibilities.
Exempt property means tangible personal property acquired in whole
or in part with Federal funds, where the Secretary has statutory
authority to vest title in the recipient without further obligation to
the Federal Government. An example of exempt property authority is
contained in the Federal Grant and Cooperative Agreement Act (31 U.S.C.
6306) for property acquired under an award to conduct basic or applied
research by a non-profit institution of higher education or non-profit
organization whose principal purpose is conducting scientific research.
Federal awarding agency means the Federal agency that provides an
award to the recipient.
Federal funds authorized means the total amount of Federal funds
obligated by the Federal Government for use by the recipient. This
amount may include any authorized carryover of unobligated funds from
prior funding periods when permitted by ED regulations or ED
implementing instructions.
Federal share of real property, equipment, or supplies means that
percentage of the property's acquisition costs and any improvement
expenditures paid with Federal funds.
Funding period means the period of time when Federal funding is
available for obligation by the recipient.
Intangible property and debt instruments means, but is not limited
to, trademarks, copyrights, patents and patent applications and such
property as loans, notes and other debt instruments, lease agreements,
stock, and other instruments of property ownership, whether considered
tangible or intangible.
Obligations means the amounts of orders placed, contracts and grants
awarded, services received, and similar transactions during a given
period that require payment by the recipient during the same or a future
period.
Outlays or expenditures means charges made to the project or
program. They may be reported on a cash or accrual basis. For reports
prepared on a cash basis, outlays are the sum of cash disbursements for
direct charges for goods and services, the amount of indirect expense
charged, the value of third party in-kind contributions applied, and the
amount of cash advances and payments made to subrecipients. For reports
prepared on an accrual basis, outlays are the sum of cash disbursements
for direct charges for goods and services, the amount of indirect
expense incurred, the value of in-kind contributions applied, and the
net increase (or decrease) in the amounts owed by the recipient for
goods and other property received, for services performed by employees,
contractors, subrecipients and other payees, and other amounts becoming
owed under programs for which no current services or performance are
required.
Personal property means property of any kind except real property.
It may be tangible, having physical existence, or intangible, having no
physical existence, such as copyrights, patents, or securities.
Prior approval means written approval by an authorized official
evidencing prior consent.
Program income means gross income earned by the recipient that is
directly generated by a supported activity or earned as a result of the
award (see exclusions in Sec. 74.24(e) and (h)). Program income
includes, but is not limited to, income from fees for services
performed, the use or rental of real or personal property acquired under
federally-funded projects, the sale of commodities or items fabricated
under an award, license fees and royalties on patents and copyrights,
and interest on loans made with award funds. Interest earned on advances
of Federal funds is not program income. Except as otherwise provided in
ED regulations or the terms and conditions of the award, program income
does not include the receipt of principal on loans, rebates, credits,
discounts, etc., or interest earned on any of them.
Project costs means all allowable costs, as established in the
applicable Federal cost principles, incurred by a recipient and the
value of the contributions made by third parties in accomplishing the
objectives of the award during the project period.
Project period means the period established in the award document
during which Federal sponsorship begins and ends.
Property means, unless otherwise stated, real property, equipment,
intangible property and debt instruments.
Real property means land, including land improvements, structures
and appurtenances thereto, but excludes movable machinery and equipment.
Recipient means an organization receiving financial assistance
directly from ED to carry out a project or program. The term includes
public and private institutions of higher education, public and private
hospitals, and other quasi-public and private non-profit organizations
such as, but not limited to, community action agencies, research
institutes, educational associations, and health centers. The term may
include commercial organizations, foreign or international organizations
(such as agencies of the United Nations) which are recipients,
subrecipients, or contractors or subcontractors of recipients or
subrecipients at the discretion of the Secretary. The term does not
include government-owned contractor-operated facilities or research
centers providing continued support for mission-oriented, large-scale
programs that are government-owned or controlled, or are designated as
federally-funded research and development centers.
Research and development means all research activities, both basic
and applied, and all development activities that are supported at
universities, colleges, and other non-profit institutions. ``Research''
is defined as a systematic study directed toward fuller scientific
knowledge or understanding of the subject studied. ``Development'' is
the systematic use of knowledge and understanding gained from research
directed toward the production of useful materials, devices, systems, or
methods, including design and development of prototypes and processes.
The term ``research'' also includes activities involving the training of
individuals in research techniques where these activities utilize the
same facilities as other pesearch and development activities and where
these activities are not included in the instruction function.
Small awards means a grant or cooperative agreement not exceeding
the small purchase threshold fixed at 41 U.S.C. 403(11) (currently
$25,000).
Subaward means an award of financial assistance in the form of
money, or property in lieu of money, 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 when provided by
any legal agreement, even if the agreement is called a contract, but
does not include procurement of goods and services nor does it include
any form of assistance which is excluded from the definition of
``award'' as defined in this section.
Subrecipient means the legal entity to which a subaward is made and
which is accountable to the recipient for the use of the funds provided.
The term may include foreign or international organizations (such as
agencies of the United Nations) at the discretion of the Secretary.
Supplies means all personal property excluding equipment, intangible
property, and debt instruments as defined in this section, and
inventions of a contractor conceived or first actually reduced to
practice in the performance of work under a funding agreement (``subject
inventions''), as defined in 37 CFR Part 401--Rights to Inventions Made
by Nonprofit Organizations and Small Business Firms Under Government
Grants, Contracts, and Cooperative Agreements.
Suspension means an action by the Secretary that temporarily
withdraws Federal sponsorship under an award, pending corrective action
by the recipient or pending a decision to terminate the award by the
Secretary. Suspension of an award is a separate action
from suspension under 34 CFR Part 85 (Governmentwide Debarment and
Suspension (Nonprocurement) and Governmentwide Requirements for Drug-
Free Workplace (Grants).
Termination means the cancellation of Federal sponsorship, in whole
or in part, under an agreement at any time prior to the date of
completion.
Third party in-kind contributions means the value of non-cash
contributions provided by non-Federal third parties. Third party in-kind
contributions may be in the form of real property, equipment, supplies
and other expendable property, and the value of goods and services
directly benefiting and specifically identifiable to the project or
program.
Unliquidated obligations, for financial reports prepared on a cash
basis, means the amount of obligations incurred by the recipient that
have not been paid. For reports prepared on an accrued expenditure
basis, they represent the amount of obligations incurred by the
recipient for which an outlay has not been recorded.
Unobligated balance means the portion of the funds authorized by the
Secretary that has not been obligated by the recipient and is determined
by deducting the cumulative obligations from the cumulative funds
authorized.
Unrecovered indirect cost means the difference between the amount
awarded and the amount which could have been awarded under the
recipient's approved negotiated indirect cost rate.
Working capital advance means a procedure whereby funds are advanced
to the recipient to cover its estimated disbursement needs for a given
initial period.
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
Sec. 74.3 Effect on other issuances.
For awards subject to this part, all administrative requirements of
codified program regulations, program manuals, handbooks, and other
nonregulatory materials which are inconsistent with the requirements of
this part are superseded, except to the extent they are required by
statute, or authorized in accordance with the deviations provision in
Sec. 74.4.
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
Sec. 74.4 Deviations.
The Secretary, after consultation with the Office of Management and
Budget (OMB), may grant exceptions for classes of grants or recipients
subject to the requirements of this part when exceptions are not
prohibited by statute. However, in the interest of maximum uniformity,
exceptions from the requirements of this part are permitted only in
unusual circumstances. The Secretary may apply more restrictive
requirements to a class of recipients when approved by OMB. The
Secretary may apply less restrictive requirements when awarding small
awards, except for those requirements which are statutory. Exceptions on
a case-by-case basis may also be made by the Secretary.
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
Sec. 74.5 Subawards.
Unless sections of this part specifically exclude subrecipients from
coverage, the provisions of this part shall be applied to subrecipients
performing work under awards if the subrecipients are institutions of
higher education, hospitals, or other non-profit organizations. State
and local government subrecipients are subject to the provisions of 34
CFR Part 80--Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments.
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Circular A-110)
EDGAR version June 23, 2005