Important Notice
The intention of this section is to provide you (the Grantee)
with information that will help you to properly manage your grant.
EPA's grant regulations are located under Title 40 of the Code of
Federal Regulations (CFR), Parts 29 through 47. You must comply
with these regulations in their entirety. Non-profits and institutions
of higher education should pay particular attention to 40 CFR Part
30; Tribes, State and local governments are governed by 40 CFR Part
31.
The information provided here is not intended to serve as a replacement
for the grant regulations, but instead is designed to provide you
with a better understanding of the regulatory requirements.
Table of Contents
1. Whom do I contact if I need assistance?
2. How do I get paid?
3. What grant regulations apply to my organization?
4. How do I account for costs?
5. How do I account for matching funds?
6. What is program income and what are my responsibilities?
7. What reports will I be required to submit?
8. What records do I need to maintain and for
how long?
9. How do I differentiate between sub-awards
and vendor transactions?
10. What must I do to issue sub-awards?
11. How do I avoid conflicts of interest when
procuring goods and services with grant funds?
12. What must I do to procure goods or services
with grant funds?
13. Are there any rules regarding management of
supplies and equipment that were purchased with grant funds?
14. Are there any additional requirements that
I need to be concerned about?
15. What if I am unable to complete my project
within the project dates shown on the grant award?
16. What happens when the project is completed,
and how do I close my grant?
17. What should I expect if my grant is reviewed
or audited?
Whom do I contact if I need assistance?
The EPA Project Officer (PO) is your primary point of contact.
The PO's name and phone number is listed on the grant agreement.
The following individuals may also be contacted if you have specific
questions regarding:
Administrative Issues
For questions concerning general administrative issues, contact
your Grants Specialist. The Grants Specialist's name and phone number
is listed on the grant agreement.
Payment
For questions regarding the ASAP process, contact the EPA Las
Vegas Financial Management Center at 702-298-2493
Minority Business/Women-Owned Business Utilization
For questions concerning EPA's goal for selecting MBEs or WBEs
, contact Small and Disadvantaged Business Coordinator, at 214-665-7406.
Civil Rights
For questions concerning civil rights, contact Equal Employment
Opportunity Manager, at 214-665-6505.
Quality Assurance
For questions concerning quality assurance requirements, contact
your EPA Project Officer.
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How do I get paid ?
When EPA awards a grant to your organization, you will receive
two signed original copies of the grant agreement. The most important
step at this time is for your authorized representative to sign
both copies of the agreement, which indicates your acceptance of
the award. One copy of the signed agreement must be returned to
EPA within 21 days. The other copy should be kept for your records.
After EPA has received the signed copy, you will be able to request
payment for grant-related expenses using one of the following payment
methods:
Automated Standard Application for Payments
(ASAP) System
ASAP is an all-electronic payment and information system developed
jointly by the U.S. Treasury and the Federal Reserve Bank of Richmond.
You will receive enrollment information with your grant agreement.
Once you are enrolled in the system by Treasury, EPA will then
establish your grant account. You may use the on-line process or
a telephonic voice response system to request payment from EPA.
Payment requests are approved or rejected automatically based on
the amount of available funds and/or the grant expiration dates.
Payments are usually received the next day.
With ASAP, you can also view account data on-line, such as up-to-the-minute
account balances, account history, and the status of payment requests.
Electronic Funds Transfer (EFT)
EFT is another electronic payment method. Enrollment in the EFT
system is accomplished through the EPA Las Vegas Financial Management
Center. To enroll, you must furnish EPA with your banking information
(Institution, EFT Number, Account Number, etc.) as well as a letter
designating those individuals who will be permitted to authorize
the draw of funds. A payment request form (supplied by EPA) is completed
and faxed to the Financial Office. Payments are usually forwarded
to your financial institution within four business days.
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What grant regulations apply to my organization ?
The following regulations and Office of Management and Budget
(OMB) Circulars apply to the management of your grant:
Code of Federal Regulations (CFR)
The CFR is organized by Title, Chapter, and Part. EPA grant regulations
can be found at:
Title 40: Protection of the Environment:
Chapter 1: The Environmental Protection Agency, Parts 29 through
47
For more information, see "Links to Other
Related Information".
OMB Circulars
The following OMB Circulars apply to the management of your EPA
grant:
OMB Circular Title
A-21 Cost Principals for Educational Institutions
A-87 Cost Principals for State, Local, and Indian Tribal Governments
A-122 Cost Principals for Non-Profit Organizations
A-133 Audits of States, Local Governments, and Non-Profit Organizations
For more information, see "Links to Other
Related Information".
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How do I account for costs ?
You are required to adequately track and document all grant expenses.
We recommend that you consider the following in order to establish
a system which meets Federal requirements:
1. Your accounting system must track costs by grant
as well as by expense category (e.g., supplies, equipment, etc.).
A good starting point in establishing expense categories is to refer
to the budget categories listed in the EPA grant agreement.
2. You must ensure that all costs are allowable and
acceptable. If you have any questions as to the allowability of
costs, refer to the applicable OMB Circular for your organization,
or contact your EPA Project Officer prior to incurring those costs.
3. Maintain good records. Make sure that all invoices,
payroll expenses, etc. are filed along with all supporting information
(e.g., contracts, time cards, etc.).
4. File all expense records by expense category. In
the case of multiple grant awards, each grant should have its own
master file.
5. Your accounting system should enable you to provide
financial information, in a report format, summarized by expense
category (i.e., a general ledger report). This system will also
help support your payment requests to EPA.
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How do I account for matching funds?
Many of EPA's grant programs require the grantee to contribute
a cost-share or to match the Federal funds provided for the project.
Match requirements may be satisfied by any combination of the following:
1. Recipient contributions (services, property and/or
cash).
2. Third party in-kind contributions (services, property
and/or cash).
3. Program Income, if authorized by EPA at the time
of the grant award. For additional information, refer to the section
entitled "What is program income, and what are my responsibilities".
To be counted as match, contributions must meet all of the following
criteria:
1. Verifiable, i.e., well documented. Records should
also reflect how the value of the cost was calculated.
2. Necessary and reasonable.
3. Identified in the approved budget listed in the
grant agreement.
4. Allowable and acceptable under OMB Cost Principles.
5. Not used as a match for another Federal grant.
The following may not be used as match:
1. Costs charged to another Federal grant.
2. Funds received from another Federal grant (Unless
authorized by Federal law).
3. Costs financed by program income unless authorized
by EPA at the time of the grant award. For additional information,
refer to the section entitled "What is program income, and
what are my responsibilities".
4. Services or property financed by income earned by contractors
under the assistance agreement.
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What is program income and what are my responsibilities?
Program income is gross income received by the grantee or sub-grantee
directly generated by a grant supported activity, or earned only
as a result of the grant agreement during the grant period.
Examples of program income include, but are not limited to:
1. Fees for services funded by the grant.
2. Income generated from the use or rental of property
acquired with grant funds.
3. Income from the sale of commodities or items fabricated
under a grant agreement.
4. Income from the payment of principal and interest
on loans made with grant funds.
How to account for program income.
All program income should be deducted from the total grant expenses
to determine net allowable grant expenses. However, when appropriate,
EPA may add a condition to the grant at time of award or amendment,
authorizing one or more of the following uses of program income:
1. Addition of the income to the total funds committed
to the project. In this case, the income must be used to further
eligible project activities.
2. Used to meet the cost-share or match requirement
of the project.
If program income is generated during the project period of the
grant and that income was not anticipated at the time your grant
was awarded, contact your EPA Project Officer immediately for guidance
on the treatment of the income.
Recipients have no obligation to the Federal Government regarding
program income generated after the end of the project period.
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What reports will I be required to submit?
Periodic reports from your organization provide EPA with information
regarding the status of your project. There are two basic types
of reports that you need to submit - Administrative and Technical.
Administrative Reports
1. Financial Status Report (FSR)
Provides information concerning the status of funds expended on
the project within a given time frame. The FSR must be submitted
annually, based on the anniversary date of the award. Within 90
days of the completion of the project, a final FSR which summarizes
total expenses must be submitted. All of your bills must be paid
by the time that the final FSR is submitted.
Two standard forms (SF) may be used: SF-269A, the short form,
is most typically used; SF-269, the long form, is used when program
income is generated. For additional information, refer to the section
entitled "What is program income, and what are my responsibilities".
2. Federal Cash Transaction Report (FCTR)
The FCTR, SF-272, is used to monitor your cash on hand to ensure
that you do not have excessive amounts in your account. If you are
paid in advance and the amount paid exceeds $25,000 per month, you
must submit a FCTR quarterly to the Office of the Regional Comptroller.
3. Minority Business Enterprise and Women-Owned Business
Enterprise Utilization Report (MBE/WBE)
The MBE/WBE Utilization Report, EPA Form 5700-52A, provides information
concerning the dollar amount of procurements (contracts and purchases)
that you directed to MBEs/WBEs. The report is due 30 days after
the end of each federal fiscal quarter (January 30, April 30, July
30, October 30) for each project. Annual submission (due October
30) are required by non-profits, institutions of higher education
and for continuing environmental program assistance awards. (See
40 CFR Part 35 for continuing environmental programs.)
Technical Reports
Generally, your work plan for the project and/or the grant award
will specify the frequency and types of technical reports that are
required. If there are no specific requirements listed, you must
submit a final performance report to the EPA Project Officer within
90 calendar days after project completion.
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What records do I need to maintain and for how long?
Financial records, technical reports, grant work products, and
all other supporting documents for your grant must be kept for three
years from the date that the final financial status report was submitted
to EPA.
Exceptions:
1. If there is an audit, claim or litigation regarding
the grant which began before the end of the three year period, the
records must be kept until all matters are resolved.
2. Real property (land, buildings) and equipment records
must be kept for three years after the equipment/property is disposed.
3. Some EPA programs, like Superfund, have special
record retention requirements. Your EPA Project Officer will advise
you if additional requirements apply to your grant.
The Federal Government has the right to timely and unrestricted
access to any and all records that pertain to the grant award.
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How do I differentiate between sub-awards and vendor transactions?
Sub-Awards
Awards of financial assistance by the primary grantee to eligible
sub-recipients for the purpose of providing support or stimulation
to accomplish a public purpose. This includes financial assistance
when provided by any legal agreement, even if you call the agreement
a contract or a grant. Sub-award agreements are sometimes also referred
to as "Pass-Through" funds.
A sub-award should be used if the sub-recipient:
1. Will have the responsibility for making decisions
regarding the work to be performed, and
2. Uses the funds to perform the project for their
own purposes.
Note: The sub-recipient has the responsibility to adhere to applicable
Federal requirements, i.e., OMB Circulars, Federal grant regulations
and statutes.
Vendor Transactions
Purchases of goods and services are not considered to be sub-awards.
Typically, these items are acquired through either purchase orders
or contracts. You must follow the grant procurement requirements
when purchasing these items. For additional information, refer to
the section entitled "What must I do to procure goods and services
with grant funds".
A vendor transaction should be used when:
1. The goods or services are directly provided to your
organization for your use;
2. You specify the requirements for the service/goods;
and,
3. Your organization has control over the service being
performed.
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What must I do to issue sub-awards?
Sub-awards should be written agreements and should include the
following items:
1. Information sufficient to identify the Federal Program/Agency
that provided the initial funds, such as:
a. Catalog of Domestic Federal Assistance
Number
b. Federal agency's name
c. Federal Award Number (Grant Number)
and title of the project
2. Federal requirements that apply to the sub-recipient,
usually incorporated by reference.
3. Any supplemental requirements from your organization.
4. A description of the work to be performed.
5. Duration of the project.
6. Amount of funds being provided, including matching
funds required.
7. Access to records and record retention requirements.
All sub-recipient awards must be closely monitored. Your organization
is responsible for ensuring that these awards are used for purposes
in compliance with federal laws, regulations, and grant program
requirements. Your organization is also responsible for ensuring
that the performance goals are achieved and the project is completed.
Keeping detailed records of your monitoring activities is highly
recommended!
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How do I avoid conflict of interest when procuring goods and
services with grant funds?
No employee, officer or agent of your organization may participate
in the selection, award or administration of a procurement action
if a conflict of interest, either real or apparent, would be involved.
Conflicts of interest occur when an employee, officer, or agent,
any member of his/her immediate family, his/her partner, or an organization
which employs or is about to employ any of these individuals, has
a financial or other interest in the firm selected for an award.
Your organization must have a written standard of conduct to provide
guidance for employees regarding their conduct in the award and
administration of procurements. The standard should also include
disciplinary actions that will be applied if an employee violates
these written standards.
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What must I do to procure goods or services with grant funds?
Your organization is required to develop written procedures covering
all procurement actions. At a minimum, the procedures must comply
with Federal requirements. When procuring goods or services with
EPA grant funds, you are required to use and document a competitive
process.
How do I compete?
1. Write a Proposal (Statement of Work) and estimate
costs
2. Obtain bids for the Proposal
a. Estimated cost > $100K - Requires
formal advertisement (newspapers, trade magazines, etc.). Your organization
may choose to use a lower threshold.
b. Estimated cost < $100K - May use
formal advertisement or direct contact of 3 known vendors.
3. Perform and document an analysis of all bids received.
4. Select the contractor and prepare a written contract.
Exceptions
In certain instances, exceptions to the competitive requirement
may be allowed. The exceptions are:
1. The work can be completed by only one source. For
example:
a. Highly specialized knowledge or skills
are required, or
b. No other sources are available.
2. Emergency situations
Both exceptions may require prior EPA approval. Contact your EPA
project officer before proceeding.
Finally - Documentation of the steps and decisions that you made
to award each contract is extremely important !
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Are there any rules regarding management of supplies and equipment
that were purchased with grant funds ?
It is important that you understand the difference between supplies
and equipment, since the treatment of and accounting for each is
somewhat different.
Equipment
Non-expendable personal property having a useful life of more than
one year and a cost of $5,000 or more per unit.
Supplies
All tangible, personal property other than equipment.
What do I do if I purchased equipment under my grant?
States may use, manage, and dispose of equipment purchased in accordance
with State laws and procedures. All other organizations must adhere
to the following:
1. Equipment must be used in the program or project
for which it was acquired as long as needed even if the project
is no longer supported by EPA.
2. A control system must be developed to ensure adequate
safeguards against loss, damage, or theft, adequate property records
must be maintained, and a physical inventory must be completed at
least once every two years.
3. When acquiring replacement equipment, the equipment
may be used as a trade-in or may be sold, with the proceeds used
to offset the cost of the replacement equipment.
How do I dispose of equipment (items which are no longer needed)?
When no longer needed for the original project, the equipment may
be used in other activities currently or previously supported by
a Federal agency.
When actually disposing of equipment (items which are no longer
needed for the original project or for other Federally funded activities),
the following applies:
Fair Market Value < $5,000 per unit May be retained, sold or
otherwise disposed of with no further obligation to the Federal
government.
Fair Market Value > $5,000 per unit Contact your EPA Project
Officer for disposition instructions.
What do I do if I purchased supplies under my grant?
If, upon termination or completion of the grant, you have a remaining
inventory of supplies with a total fair market value greater than
$5,000, you will be required to reimburse EPA for its share of the
value of the inventory.
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Are there any additional requirements that I need to be concerned
about?
In addition to the standard Federal grant requirements, EPA awards
have several additional requirements:
Utilization of Minority Business Enterprises (MBE), Women-Owned
Business Enterprises (WBE) and Small Businesses in Rural Areas (SBRAs)
EPA grant programs promote the utilization of MBEs/WBEs for all
procurement actions, i.e., the purchase of supplies, equipment,
and construction. Each EPA assistant agreement lists the "fair
share" objective that your organization should try to achieve.
Basically, you must ensure that opportunities are made available
to MBEs/WBEs. You can do that by following the six affirmative action
steps listed below:
1. Ensure that MBEs/WBEs are used to the fullest extent
practicable
2. Make information on forthcoming opportunities available
and arrange time frames for purchases and contracts to encourage
and facilitate participation by MBEs/WBEs
3. Consider in the contract process whether firms competing
for larger contracts intend to subcontract with MBEs/WBEs
4. Encourage contracting with consortiums of MBEs/WBEs
when a contract is too large for one of these firms to handle individually
5. Use the services and assistance, as appropriate,
of such organizations as the Small Business Administration and the
Department of Commerce's Minority Business Development Agency to
identify MBEs/WBEs
6. If awarding to a prime contractor, ensure that the
prime follows the affirmative action steps listed above.
EPA also needs to know how successful you were. Therefore, you
must periodically report to EPA on your utilization of MBEs/WBEs until the project is completed. For additional information
(e.g. frequency of report submission), refer to the section entitled
"What reports will I be required to submit".
Quality Assurance
If your project involves environmentally related measurements or
data generation, you must develop and implement quality assurance
practices sufficient to produce data adequate to meet project objectives,
and to minimize loss of data due to out-of-control conditions or
malfunctions. Contact the EPA Project Officer for further clarification
regarding Quality Assurance management and project plans.
Single Audits
All non-Federal entities that expend $300,000 or more in a year
in Federal awards are required to conduct a single or program-specific
audit for that year. The audits are to be conducted in accordance
with the provisions of OMB Circular A-133. We recommend that you
refer to the Circular for further information.
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What if I am unable to complete my project within the project
dates shown on the grant award?
If you are not able to complete the project within the original
project period, it is important that you discuss the situation with
your EPA Project Officer as soon as possible. The EPA Project Officer
may agree to extend the project period so that the project can be
completed.
To request an extension, you must submit a written request to the
EPA Project Officer at least 10 days before the project expires.
Your request should provide information regarding the reason why
the project will not be completed on time, and why it is necessary
to continue the project. The request should also specify the additional
length of time needed for completion.
What happens when the project is completed,
and how do I close my grant?
The EPA Grants Office will notify you 30 days before the expiration
date of the project and, at that time, will provide you with instructions
about closing out the grant. You have You have 90 calendar days
after the project is completed to submit all the required financial,
performance and any other reports. During this time, any excess
funds paid to you must be returned to EPA. Contact your EPA Grants
Specialist for guidance if you need to return money to EPA.
When all the close out requirements have been satisfied, the EPA
Grants Office will issue a final letter to notify you that the grant
is officially closed. This letter will also provide information
about your responsibility for retaining records after the grant
is closed. For additional information, refer to the section entitled
"What records do I need to maintain, and for how long".
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What should I expect if my grant is reviewed or audited?
As part of EPA's oversight of your assistance agreement, your project
may be selected for a review and/or an audit. The review or audit
could occur either during the course of the project, or as part
of the final close-out phase of the grant. Generally, the reviews
and audits completed by EPA are as follows:
For grants awarded by EPA, Region 6, the Grants Administration
Office is responsible for the administrative oversight of your agreement.
Part of this responsibility includes the on-site review of your
administrative operations. The overall purpose of an on-site visit
is to:
1. Ensure that your organization has the necessary
systems in place to manage your agreement.
2. Assist your organization with the overall management
of your grant, and to recommend changes where necessary.
3. Make certain that the costs incurred under the grant
are acceptable.
When the review is complete, a report will be issued to your organization
detailing any concerns and recommendations. The Grants Administration
Office will work with you to resolve those concerns.
EPA Office of the Inspector General (OIG)
The EPA OIG is responsible for completing audits for all of EPA's
grants. These audits generally involve the review of all financial
documentation (e.g., accounting reports, contracts, invoices) in
support of the total grant-related expenses incurred by your organization.
When the audit is complete, the OIG recommends the acceptance and/or
disallowance of costs in a report issued to EPA Region 6. Based
on the OIG's recommendation and input from your organization, the
EPA will make a final determination of allowable costs under the
project.
If, either through a review or audit, it is determined that you
have incurred costs which are found to be unallowable (in accordance
with OMB Cost Principles), and/or cannot be supported by source
documentation (contracts, invoices, cancelled checks, etc., you
may be required to reimburse EPA for those costs.
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