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tion cost was borne in whole or in part by Federal funds shall be handled in accordance with Subpart L of this part. (OMB Circular No. A-102, Attachment N.) § 100a.234 Royalties.
(a) Applicability.—(1) Copyrights. This section applies to royalties received by recipients from copyrights on publications or other works developed under a Federally-assisted grant or contract.
(2) Patents. This section also applies to royalties received by recipients from patents on inventions conceived or first actually reduced to practice in the course of or under a Federally-assisted grant or contract.
(b) During the grant period. (1) If the recipient is a State or local government, royalties received during the grant period shall be retained by the recipient. The terms and conditions of the grant or contract shall provide either:
(i) That such royalties shall be used by the recipient for any purposes which further the objectives of the legislation under which the grant was made, or
(ii) That such royalties shall be deducted from total project costs for the purpose of determining the net costs on which the Federal share of costs shall be based.
(2) When the recipient is a State or local government, the recipient shall elect either of the alternatives specified in subparagraph (1) of this paragraph in the terms and conditions of the grant or contract do not specify which is to be followed.
(3) If the recipient is not a State or local government; disposition of royalties received during the grant period shall be governed by § 100a.219 (a) (2) and (b).
(c) After the grant period—(1) Copyrights. If the recipient is a State or local government and the Commissioner and the recipient have not agreed to apply § 100a.219 (a) (2), the Federal share of copyright royalties in excess of $200 received annually shall be paid by the recipient to the Federal Government. In such cases, the Federal share of the royalties shall be computed on the same ratio basis as the percentage of Federal participation in the cost of the project or program. This percentage of participation shall be determined in accordance with § 100a.220.
(2) Patents. Disposition of patent royalties received after the termination or completion of the period for obliga
tion shall be governed by agreements between the Assistant Secretary for Health, Department of Health, Education, and Welfare, and the recipient, pursuant to the Department's patent regulations (Parts 6 and 8 of this title). (OMB Circular No. A-102, Attachment E.) § 100a.235 Other program income.
(a) This section applies to all program income earned during the grant period except royalties and proceeds from the sale of real property or tangible personal property.
(b) All such income earned during the period for obligation shall be retained by the recipient. The recipient may elect either of the following alternatives to satisfy its accountability to the Federal Government for the income:
(1) The income may be used by the recipient for purposes which further the objectives of the legislation under which the award was made, or
(2) The income may be deducted from total project costs for the purpose of determining the net costs on which the Federal share of costs shall be based. (OMB Circular No. A-102, Attachment E.) § 100a.236 Earmarked revenues of State or local governments.
State or local government recipients shall record the receipt and expenditure of revenues such as taxes, special assessments, levies, fines, etc., as a part of grant project transactions when such revenues are specifically earmarked for a project in accordance with the terms and conditions of a grant or contract. (OMB Circular No. A-102, Attachment E.) Subpart N
Miscellaneous Requirements § 100a.250 Financial interest prohibited.
A person who is a public official, officer, or member of, or who is otherwise associated with a recipient, may not participate in an administrative decision with respect to the recipient's project, if such decision can be expected to result in any benefit or remuneration, including, without limitation, a royalty, commission, contingent fee, brokerage fee, or other benefit, to him or to any member of his immediate family.
(20 U.S.C. 1232c(b)(1).) § 100a.255
Commencement of project
Projects receiving Federal financial assistance shall be commenced within a
In the case of a project involving the leasing of a facility, the recipient shall demonstrate to the Commissioner that it will have the right to occupy, to operate, and, if necessary, to maintain and improve the leased facility during the proposed period of the project.
(20 U.S.C. 1221c(b) (1).)
§ 100a.260 Changes in key personnel.
If for any reason it becomes necessary to substitute the project director or other key professional staff designated in the grant or contract, the recipient shall provide timely written notification to the Commissioner of such substitution. Such written notification shall include the name and qualifications of the successor. (20 U.S.C. 1221c(b) (1).) § 100a.261
If a project staff member or consultant is involved in two or more projects, at least one of which is supported by Federal funds under this chapter, he may not be compensated for more than 100 percent of his time during any part of the period of dual involvement. The recipient shall not use any Federal funds or funds from other sources to pay a fee to, or travel expenses of, employees of the Department for lectures, attending program functions, or any other activities in connection with the grant or contract.
(20 U.S.C. 1221c(b) (1).)
§ 100a.262 Civil rights.
(a) Federal financial assistance is subject to the regulations in part 80 of this title, issued by the Secretary of Health, Education, and Welfare and approved by the President, to effectuate the provisions of title VI of the Civil Rights Act of 1964 (Public Law 88-352). (42 U.S.C. 2000d)
(b) Federal financial assistance is also subject to the provisions of title IX of the Education Amendments of 1972 (prohibition of sex discrimination), and any regulations issued thereunder.
(Public Law 92-318, title IX)
§ 100a.263 Data-collection instruments. (a) Definitions. For the purposes of this section:
(1) "Data-collection instruments" includes tests, questionnaires, invento
ries, interview schedules or guides, rating scales, and survey plans or any other forms which are used to collect information on substantially identical items from 10 or more respondents.
(2) "Respondents" means individuals or organizations from whom information is collected.
(b) Applicability. This section does not apply to instruments which deal solely with (1) functions of technical proficiency, such as scholastic aptitude. school achievement, and vocational proficiency; (2) routine demographic information; or (3) routine institutional information.
(c) Protection of privacy. (1) Datacollection instruments shall not be used which constitute unnecessary or offensive intrusions of privacy through inquiries regarding such matters as religion, sex, race, or politics.
(2) In using data-collection instruments, recipients shall provide for anonymity and confidentiality of response of individual respondents.
(d) Clearance not required. (1) Recipients are not required to submit datacollection instruments to the Commissioner or obtain the Commissioner's approval for the use of those instruments, except where the grant or contract document specifically so provides.
(2) If a recipient wishes to have Federal approval (Office of Education; Department of Health, Education, and Welfare; and the Office of Management and Budget) of a data-collection instrument, the recipient shall submit seven copies of the document to the Commissioner along with seven copies of the Office of Management and Budget's Standard Form No. 83 and seven copies of the Supporting Statement as required in the "Instructions for Requesting OMB Approval under the Federal Reports Act" (Standard Form No. 83A).
(e) Responsibility for collection of information. The recipient shall not in any way represent or imply (either in a letter of transmittal, in the data-gathering instruments themselves, or in any other manner) that the information is being collected by or for the Federal Government or any of its subdivisions. Basic responsibility for the study and the data-gathering instruments rests with the recipient.
(f) Parental consent. In the case of any survey using data-collection instru
ments (except those specified in paragraph (b) of this section), which will include children below the age of 18 as respondents, the recipient shall provide assurances satisfactory to the Commissioner that informed consent will be obtained from the parents of such respondents prior to the use of such instruments. (20 U.S.C. 1221c (b) (1).)
§ 100a.270 Treatment of animals.
If animals are utilized in any project receiving assistance, the applicant for such assistance shall provide assurances satisfactory to the Commissioner that such animals will be provided with proper care and humane treatment in accordance with the Animal Welfare Act of 1970 (Pub. L. 89-544, as amended). (20 U.S.C. 1221c(b) (1).)
§ 100a.275 Coordination.
Each project shall be developed so as to be in coordination, to the extent feasible, with other public and private programs for similar educational purposes. Such coordination shall continue during the period in which such project remains in effect.
(20 U.S.C. 1232c (b) (1).)
§ 100a.276 Evaluation.
Each project shall include procedures for effective evaluation of the extent to which project objectives are being met. (20 U.S.C. 1221c (b) (1).)
(a) The general terms and conditions set forth in appendix A to this subchapter are prescribed for use in connection with grants to eligible parties under any Federal program to which this part is applicable. Each grant awarded under any such program shall be governed by such general terms and conditions except to the extent that any such term or condition is inconsistent with a special term or condition made specifically applicable to such grant and set forth in the grant award document.
(b) In any case where a general or special term or condition is inconsistent with a statute or published regulation applicable to that Federal program (including a regulation contained in this part), the statute or regulation shall govern.
(20 U.S.C. 1221c (b) (1).)
(OMB Circular No. A-102, Attachment G.) § 100a.301 Standards.
Financial management systems for grants and contracts shall provide for:
(a) Accurate, current, and complete disclosure of the financial results of each grant or contract in accordance with Subpart P of this part. Except when specifically required by law, the Commissioner will not require financial reporting on the accrual basis from organizations whose records are not maintained on that basis. However, when accrual reporting is required by law, organizations whose records are not maintained on that basis will not be required to convert their accounting systems to the accrual basis; they may develop the accrual information through an analysis of the documentation on hand or on the basis of best estimates.
(b) Records which identify adequately the source and application of funds for grant- or contract-supported activities. These records shall contain information pertaining to grant or contract awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays, and income.
(c) Effective control over and accountability for all grant or contract funds, and real and personal property acquired with grant or contract funds. Grantees and contractors shall adequately safeguard all such property and shall assure that it is used solely for authorized purposes.
(d) Comparison of actual with budgeted amounts for each grant or contract, and, when specifically required by the performance reporting requirements of the grant or contract, relation of financial information with performance or productivity data, including the production of unit cost information.
(e) Procedures to minimize the time elapsing between the transfer of funds from the U.S. Treasury and the disbursement by the recipient, whenever cash is advanced by the Federal Government. When advances are made by a letter-ofcredit method, the recipient shall make drawdowns from the U.S. Treasury
through its commercial bank as close as possible to the time of making the disbursements.
(f) Procedures for determining the allowability and allocability of costs in accordance with the applicable cost principles prescribed by Subpart G of this part.
(g) Accounting records which are supported by source documentation.
(h) (1) If the grantee or contractor is a State or local government, audits to be made by the State or local government or at its direction to determine, at a minimum, the fiscal integrity of grant or contract financial transactions and reports, and the compliance with the terms and conditions of the grant or contract. The grantee or contractor will schedule such audits with reasonable frequency, usually annually, but not less frequently than once every two years, considering the nature, size, and complexity of the activity.
(2) Recipients other than State and local governments are encouraged, but not required, to meet the standards set forth in subparagraph (1) of this paragraph.
(i) A systematic method to assure timely and appropriate resolution of audit findings and recommendations. (OMB Circular No. A-102, Attachment G.)
Subpart P-Financial Reporting
This subpart prescribes requirements for recipients to report financial information to the Commissioner and to request advances and reimbursement when a letter-of-credit method is not used, and promulgates standard forms incident thereto.
(OMB Circular No. A-102, Attachment H.) § 100a.401 Definitions.
As used in this subpart and in the forms identified by this subpart: "Accrued expenditures" are the charges incurred by the recipient during a given period requiring the provision of funds for: (a) Goods and other tangible property received; (b) services performed by employees, contractors, and other payees; and (c) amounts becoming owed under programs for which no current services or performance are required.
"Accrued income" is the earnings during a given period which is a source of funds resulting from (a) services per
formed by the recipient, (b) goods and other tangible property delivered to purchasers, and (c) amounts becoming owed to the recipient for which no current services or performances are required by the recepient.
"Disbursements" are payments in cash or by check.
"Federal funds authorized" represents the total amount of the Federal funds authorized for obligations and establishes the ceiling for obligation of Federal funds. This amount may include any authorized carryover of unobligated funds from prior fiscal years.
"In-kind contributions" represent the value of noncash contributions provided by the recipient or third parties. In-kind contributions may consist of charges for real property and nonexpendable personal property, and value of goods and services directly benefiting and specifically identifiable to the federally supported activity. Unless otherwise authorized by Federal legislation, charges for property purchased wholly with Federal funds, and charges based on the Federal share of the value of property purchased partly with Federal funds, may not be considered as the recipient's in-kind contributions.
"Obligations" are the amounts of orders placed, contracts awarded, services received, and similar transactions during a given period, which will require payment during the same or a future period.
"Outlays" represent charges made to the project or program. Outlays may be reported on a cash or accrued expenditure basis.
"Program income" represents earnings by the recipient realized from the federally supported activities as a result of the grant or contract. Such earnings exclude interest income and may include, but will not be limited to, income from service fees, sale of commodities, usage or rental fees, sale of assets purchased with grant or contract funds, and royalties on patents and copyrights. Program income may be reported on a cash or accrued income basis.
"Unobligated balance" is the portion of the funds authorized by the Commissioner which has not been obligated by the recipient and is determined by deducting the cumulative obligations from the funds authorized.
"Unpaid obligations" represent the amount of obligations incurred by the recipient which have not been paid.
(OMB Circular No. A-102, Attachment H.)
§ 100a.402 Authorized forms and instructions.
(a) Only those forms specified in §§ 100a.403 through 100a.406, inclusive, and such supplementary or other forms as may from time to time be authorized by the Commission, may be used:
(1) For obtaining financial information from recipients for federally-assisted programs, or
(2) For requesting advances or reimbursements when letters of credit are not used.
(b) All applicable standard instructions promulgated for use in connection with the forms specified in §§ 100a.403 through 100a.406, inclusive, shall be followed.
(c) Recipients shall submit the original and two copies of the forms required pursuant to this subpart. However, the Commissioner may waive the requirement for the second copy, or both copies, when not needed.
(d) The forms (with their instructions) specified in §§ 100a.403 through 100a.406, inclusive, will be available to the public upon request to the Commissioner.
(OMB Circular No. A-102, Attachment H.) § 100a.403 Financial status report.
(a) Form. Recipients shall use the standard Financial Status Report prescribed by Attachment H of OMB Circular No. A-102 (HEW Form 601T) to report the status of funds for all nonconstruction projects. The Commissioner may choose not to require the Financial Status Report when the Request for Advance or Reimbursement (see § 100a.405) is determined to provide adequate information to meet his needs, except that a final Financial Status Report is required at the completion of the grant or contract when the Request for Advance or Reimbursement form is used only for advances.
(b) Accounting basis. Each recipient shall report outlays and program income on the same accounting basis, i.e., cash or accrued expenditure (accrual), which it used in maintaining its accounting records. The basis used by a recipient must be consistent for all grants and contracts.
(c) Frequency. For research project grants and contracts, reports shall be submitted annually, and a final report shall be submitted upon completion or termination of Federal support. For all other types of grants and contracts, the
Commissioner will prescribe the frequency of the report, considering the size and complexity of the particular program. However, the report will not be required more frequently than quarterly, or less frequently than annually, and a final report is required upon completion or termination of Federal support.
(d) Due date. When reports are required on a quarterly or semi-annual basis, they shall be due thirty days after the end of the specified reporting period. When required on an annual basis, they shall be due ninety days after the end of the grant or contract year. Final reports shall be due ninety days after the completion or termination of Federal support. Justified requests from individual recipients for extension of reporting due dates will be approved whenever feasible. (OMB Circular No. A-102, Attachment H.) § 100a.404 Report
(a) Form. When funds are advanced to recipients through letters of credit or with Treasury checks, each recipient shall submit the Report of Federal Cash Transactions prescribed by Attachment H of OMB Circular No. A-102 (HEW Forms 602T, 603T). This report will be used to monitor cash advanced to recipients and to obtain disbursement or outlay information for each project from the recipients. The format of the report may be adapted as appropriate when reporting is to be accomplished with the assistance of automatic data processing equipment, provided that the information to be submitted is not changed.
(b) Forecasts of Federal cash requirements. Forecasts of Federal cash requirements may be required in the "Remarks" section of the report.
(c) Cash in hands of secondary recipients. When deemed necessary and feasible by the Commissioner, recipients may be required to report in the "Remarks" section of the report the amount of cash advances in excess of three days' requirements in the hands of secondary recipients, and to provide short narrative explanations of actions taken by the recipients to reduce the excess balances.
(d) Frequency and due date. Recipients shall submit the Report of Federal Cash Transactions no later than fifteen working days following the end of each quarter. However, where a letter of credit authorizes advances at an annualized rate of one million dollars or more, the