[Federal Register: July 16, 2003 (Volume 68, Number 136)]
[Proposed Rules]
[Page 41947-41962]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16jy03-26]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 41947]]
DEPARTMENT OF AGRICULTURE
7 CFR Parts 3015, 3019 and 3020
Office of the Chief Financial Officer; General Program
Administration Regulations
AGENCY: Office of the Chief Financial Officer, USDA.
ACTION: Proposed rule.
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SUMMARY: The U.S. Department of Agriculture (USDA) proposes to amend
the administrative requirements for all USDA grants and cooperative
agreements that are used to document Federal assistance transactions.
USDA also proposes to remove the outdated regulations and replace them
with streamlined regulations that are applicable to non-profit and for-
profit Federal financial assistance recipients. USDA further proposes
to implement several additional administrative policies and new
requirements.
DATES: Submit comments on or before August 15, 2003.
ADDRESSES: Questions and comments may be addressed to: Ava Lee,
Director, Planning and Accountability Division, Office of the Chief
Financial Officer, USDA, Stop 9020, 1400 Independence Avenue, SW.,
Washington DC 20250; FAX (202) 690-3561; telephone (202) 720-1179; E-
mail alee@cfo.usda.gov.
FOR FURTHER INFORMATION CONTACT: Ava Lee, (202) 720-1179.
SUPPLEMENTARY INFORMATION:
Background
Prior to 1981, departmental regulations required USDA agencies to
issue individual, program-specific regulations and directives to
implement USDA, Office of Management and Budget (OMB), and other
applicable guidance and polices related to Federal program
administrative requirements. This was practiced throughout the Federal
government and frequently resulted in complaints from program
participants about the confusion and duplication in the administration
and management of Federal programs.
Public Law No. 95-224, the ``Federal Grant and Cooperative
Agreement Act of 1977,'' (FGCA) and the related OMB guidance (43 FR
36860, Aug. 18, 1978), emphasized the need for a uniform policy and the
standardization of common administrative requirements for all Federal
assistance programs. Consequently, in November 1981, USDA published 7
CFR part 3015, ``Uniform Federal Assistance Regulations'' (46 FR 55636,
Nov. 10, 1981). The original purpose for part 3015 was to set out in a
single ``uniform'' regulation all requirements that applied to
recipients and subrecipients of USDA Federal assistance. In terms of
agreement coverage, part 3015 was limited to grants and cooperative
agreements as defined by the FGCA.
Experience with this approach soon demonstrated a definite need for
specific regulations that recognized the differences between types of
recipients, especially as between State and local governments and the
various kinds of nonprofit organizations, including universities.
Therefore, USDA subsequently participated in a series of government-
wide initiatives establishing more specific rules applicable based on
the type of recipient. These initiatives simultaneously reduced the
scope and effect of part 3015.
In March 1988, USDA joined with other Federal agencies in
simultaneously publishing a common rule applicable to State and local
government recipients. The USDA rule was codified in 7 CFR part 3016,
``Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments.'' (53 FR 8034, Mar. 11,
1988). In November 1993, OMB revised OMB Circular A-110 (58 FR 62992,
Nov. 29, 1993). In August 1995, USDA published 7 CFR part 3019,
``Uniform Administrative Requirements for Grants and Agreements with
Institutions of Higher Education, Hospitals and Other Nonprofit
Organizations,'' to implement the revised A-110 (60 FR 44122, Aug. 24,
1995). The definition of ``recipient'' in section 3019.2 authorizes
agencies at their discretion to apply part 3019 to for-profit
organizations as well. In August 1997, USDA published 7 CFR part 3052,
``Audits of States, Local Governments and Non-Profit Organizations''
(62 FR 45947, Aug. 29, 1997) to implement the requirements of the
Single Audit Act Amendments of 1996 and the related revision to OMB
Circular A-133. In August 2000, USDA published a final rule to include
USDA's entitlement programs within the scope of part 3016 and part 3019
as appropriate (65 FR 49474, Aug. 14, 2000).
As the result of these actions, a substantial portion of the
original purpose and scope of part 3015 was transferred to other rules.
Currently, part 3015 may be used by USDA agencies as an option to using
part 3019 for one remaining type of recipient, for-profit
organizations. Part 3015 also includes certain requirements that: (1)
Are not included in one or more of the other parts identified above;
and (2) are generally applicable to any assistance transactions between
USDA and any type of recipient.
In the period since the enactment of the FGCA, and concurrent with
all of the regulatory changes set out above, Congress passed a number
of acts which included language excluding certain USDA authorities from
the FGCA. At a later date and as a separate action, USDA plans to
develop a uniform rule for the agreements not covered by this rule such
as those that are issued under sections 1472(b) and 1473A of the
National Agricultural Research, Extension, and Teaching Policy Act of
1977, as amended, 7 U.S.C. 3318 and 3319a, and similar authorities.
Congress has recently taken actions both to improve the general
financial management of the Federal government and to specifically
improve the effectiveness and performance of Federal assistance
programs. Congress enacted the Chief Financial Officers Act of 1990
(CFO Act) for various reasons, including bringing ``* * * more
effective general and financial management practices to the Federal
Government through statutory provisions which would * * * designate a
Chief Financial Officer (CFO) in each executive department and in each
major executive agency in the Federal Government'' (31 U.S.C. 501 note,
CFO Act sec.102(b)). The CFO Act specifies that the agency CFO ``shall
* * * oversee all financial management activities relating to the
programs and operations of the agency; * * *'' (31 U.S.C. 902(a)). The
Federal Financial
[[Page 41948]]
Assistance Management Improvement Act of 1999 (FFAMIA) (Pub. L. 106-
107) requires USDA to ``* * * develop and implement a plan that * * *
streamlines and simplifies the application, administrative, and
reporting procedures for Federal financial assistance programs
administered by the agency.'' (31 U.S.C. 6101 note, FFAMIA sec.5).
USDA now proposes the following actions: (1) USDA has concluded
that allowing awarding agencies the discretion to choose between two
rules for the administration of assistance agreements with for-profit
organizations is both unnecessary and confusing. Therefore, USDA
proposes to revise part 3019 to require that agencies entering into
assistance agreements with for-profit organizations use part 3019
exclusively for the administration of these agreements; (2) The
combination of the recent transfer of the entitlement programs and the
proposed transfer of for-profit organizations to the administrative
requirements of other regulations make much of the text currently in
part 3015 unnecessary. Furthermore, a substantial portion of part 3015
is based on superceded OMB guidance that is no longer used by any other
Federal agency. Therefore, USDA proposes to revise the current text to
remove unneeded language and to improve readability. In addition, to
avoid potential confusion, USDA proposes to remove part 3015 in its
entirety and replace it with a new part 3020 entitled ``General Program
Administration Regulations.'' The table at the end of this preamble
provides cross-references between the sections in the current part 3015
and the equivalent sections in the existing parts 3016 and 3019 as well
as the proposed part 3020. The proposed part 3020 will apply to all
types of recipients, supplementing the regulations in parts 3016 and
3019; (3) To carry out the OCFO oversight responsibilities for
financial management activities, USDA proposes to make parts 3020,
3016, and 3019 applicable, as appropriate, to nearly all parties
entering into assistance transactions with USDA relating to USDA's
programs, including non-governmental international recipients. The
proposed rule is intended to establish the basic requirements for
USDA's financial management of programs; (4) The proposed rule will be
a major step toward conformance with the FFAMIA initiative to simplify
the application, administrative, and reporting procedures for the
covered Federal programs administered by the agency. In terms of
streamlining, the current version of part 3015 consists of 123 sections
containing 302KB of information while the proposed version of part 3020
consists of 28 sections containing 90KB of information. In terms of
uniformity, the proposed rule will have the effect of placing nearly
all of USDA's assistance relationships with non-Federal entities under
two administrative rules that codify for USDA the same policies used by
the majority of other Federal Departments. Further streamlining is
expected to occur over the coming months and years. OMB published
notices in the Federal Register on August 12, 2002 (67 FR 52544-52560,
Aug. 12, 2002) that propose to standardize the announcement format for
discretionary grants and cooperative agreements across government
agencies. Also, a standard set of data elements has been proposed to
standardize the electronic posting of funding announcements. When they
are finalized, USDA expects that parts 3016, 3019 and 3020, and
particularly Sec. Sec. 3016.10, 3019.12 and 3020.15 will be amended to
reflect the implementation of FFAMIA; (5) USDA has corrected the
reference to USDA's audit regulation in 7 CFR 3019.26 to reflect the
correct citation of 7 CFR part 3052; and, (6) USDA also proposes to
include in part 3020 the additional specific requirements itemized
below.
Summary of Proposed Rule 3020
The following paragraphs provide a summary of the various revisions
and sections of this proposed rule 3020. Following the summary is a
table that cross-references each section of part 3015 and indicates the
comparable sections in parts 3016 and 3019 and proposed part 3020.
Changes to Part 3019
USDA proposes to amend the title of part 3019 and revise Sec. Sec.
3019.1, 3019.2, and 3019.5 to include for-profit organizations within
the scope of part 3019. The proposed revision in Sec. 3019.26(a)
replaces the reference to the Single Audit Act Amendments of 1996 (31
U.S.C. 7501-7507) and the OMB Circular A-133 with a reference to part
3052, ``AUDITS OF STATES, LOCAL GOVERNMENTS, AND NON-PROFIT
ORGANIZATIONS,'' the USDA regulation implementing OMB Circular A-133.
Part 3020--General Program Administration Regulations
Subpart A--General
Section 3020.1 Purpose. No substantive change from part 3015.
Section 3020.2 Applicability. This section lists which USDA
agreements and recipients are covered by this rule and the exceptions
to this rule. The applicability of proposed part 3020 is broader than
that of part 3015. Proposed part 3020 will apply to all USDA
agreements, including memoranda of understanding, not explicitly
excepted. Part 3015 applies only to assistance agreements.
Section 3020.3 Conflicting policies and deviations. This section
simplifies current section 3015.3. Proposed section 3020.3 clarifies
that unless authorized by statute or by a waiver by OCFO, the
requirements in part 3020 will take precedence over any USDA agency
specific regulations.
Section 3020.4 Other regulations applicable to USDA agreements.
This section lists other regulations that currently apply to some or
all cover USDA agreements. The only new requirement proposed is that
awarding agencies are to apply the rules in part 3019 of this chapter
to for-profit entities.
Subpart B--Basic Requirements
Section 3020.10 Authority clause. USDA proposes this section to
codify the requirement to include a section in all covered USDA
agreements addressing the statutory authority and funding authority for
any financial transaction and the statutory authority for any non-
financial transaction.
Section 3020.11 Identification and use of USDA agreements. USDA
proposes this section to resolve questions as to the primary types of
USDA agreements. This section defines the agreements commonly entered
into by USDA agencies, subject to each agency's specific
authorizations. This section specifically addresses the use of
procurement contracts, cooperative agreements, grants, memoranda of
understanding, interagency agreements, and intra-agency agreements.
Section 3020.12 Program reporting requirements. The Federal Program
Information Act (31 U.S.C. chapter 61) requires Federal agencies to
report specified information for programs involving non-procurement
transactions. The USDA complies with the requirements through
submission of data to the Catalog of Federal Domestic Assistance (CFDA)
and the Federal Assistance Award Data System (FAADS). While these are
not new requirements and USDA has complied with the reporting
requirements since their inception, the requirements were never
codified in our regulations. USDA proposes this section to codify these
reporting requirements.
[[Page 41949]]
Section 3020.13 Acknowledgment of support on publications and
audiovisuals. USDA is proposing no substantive changes from Sec.
3015.200. This section states when a recipient shall acknowledge the
awarding agency support in publications or audiovisual media.
Section 3020.14 Competing discretionary awards. There is no
substantive change from Sec. 3015.158 ``Competition in the awarding of
discretionary grants and cooperative agreements.'' This section covers
the standards for competition, approval of applications and exceptions.
Section 3020.15 Program regulations and announcements. USDA is
proposing no major substantive changes from Sec. 3015.204. Proposed
Sec. 3020.15 addresses program announcements, program regulations,
program solicitations, evaluation criteria and procedures, funding
priorities, projects building on prior awards, and discussions with
applicants. Proposed Sec. 3020.15 clarifies and standardizes basic
program notice and fairness requirements.
Section 3020.16 Nondiscrimination requirement. USDA proposes to
establish a mandatory nondiscrimination statement that is to be
included in covered USDA agreements.
Section 3020.17 Waiver of ``single'' State agency requirements.
USDA is proposing no substantive changes from current Sec. 3015.30.
This section implements section 204 of the Intergovernmental
Cooperation Act, which authorizes and establishes criteria for waiver
of requirements that a single State agency or multimember agency
administer a program.
Subpart C--Management of Agreements
Section 3020.20 Use of consultants. USDA is proposing no major
substantive changes from Sec. 3015.201. The Definitions and
Applicability subsections have been removed. The Definitions are now
covered in Sec. 3020.50 and Applicability is addressed in Sec. Sec.
3020.20(a) and 3020.20(b)(2). Unlike Sec. 3015.201, applicability of
Sec. 3020.20 is not limited to grants, subgrants, and cost-type
contracts. All other subsections are virtually the same. The proposed
section addresses the basic policy for recipient use of consultants,
exceptions, requirements for approval, and documentation standards.
Section 3020.21 Disposition of long term financial interests in
real property, personal property, and equipment. This section creates a
new departmental policy to terminate any departmental financial
interest in property or equipment acquired by a recipient, under a USDA
agreement, after 20 years have passed since the last Federal need or
use of the property or equipment. Executive Order 12803,
``Infrastructure Privatization,'' directs Federal agencies to ``Approve
State and local governments' requests to privatize infrastructure
assets, * * * and, where necessary, grant exceptions to the disposition
requirements of the Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments' common rule''
(57 FR 19063, May 4, 1992). As set out in Executive Order 12803, to
privatize an asset means to dispose of, or transfer, an asset from a
State or local government to a private party. Examples of
infrastructure assets include roads, electrical supply facilities,
water supply facilities, recycling plants, waste water treatment
facilities, solid waste disposal facilities, housing, schools and
hospitals. Executive Order 12803 provides that, ``To the extent
permitted by law,'' Federal agencies should revise the existing common
rule requirements for the recuperation of Federal financial interests
from State or local government grantees when the State or local
government grantee privatizes a Federally funded infrastructure asset.
The revised method set out in Executive Order 12803, Section 3(c)(iii)
calls for use of the Internal Revenue Service accelerated depreciation
schedules in calculating the value of the Federal interest in the
asset.
Subpart D--Management of Funds
Section 3020.30 Management of indirect costs. In Sec. 3020.30,
USDA is proposing to codify the Federal indirect cost policies
established in OMB Circulars numbers A-21, Cost Principles for
Educational Institutions, and A-87, Cost Principles for State, Local,
and Indian Tribal Governments. This section allows for a provisional
indirect cost rate to be used pending determination of a final rate.
These indirect costs may be paid only after establishing an indirect
cost rate as required by Sec. Sec. 3016.22 and 3019.27 of this chapter
and the applicable cost principles or in the case of for-profit
entities, the cost accounting standards. This section also explains
which agency shall negotiate and establish the rate.
Section 3020.31 Physical segregation and eligibility. USDA proposes
in this section to codify the requirement in OMB Circular number A-110,
Uniform Administrative Requirements for Grants and Agreements With
Institutions of Higher Education, Hospitals, and Other Non-Profit
Organizations, that awarding agencies shall not require the recipient
to use a separate bank account for the deposit of Federal funds or
establish any eligibility requirements for banks or other financial
institutions in which recipients deposit Federal funds for USDA
agreements. Exceptions are found in Sec. Sec. 3020.32, 3016.21 (h),
and 3019.22 (i), (j), and (k) of this chapter.
Section 3020.32 Funds advanced to recipients. USDA proposes no
substantive changes from section 3015.12. All moneys advanced to a
recipient must be deposited in an FDIC insured bank whenever possible
and anything over the FDIC limit must be collaterally secured.
Section 3020.33 Source of bonds. USDA is proposing no substantive
changes in this section. Any bonds required under Sec. 3016.36 (h) (1)
through (3) or Sec. Sec. 3019.21 (c) and (d) and 3019.48 (c) (1)
through (3) of this chapter shall be obtained from companies holding
certificates of authority as acceptable sureties listed by the
Department of the Treasury in its Department Circular 570.
Section 3020.34 Limits on total payments to the recipient. USDA
proposes in this section to codify the four most widely applicable
legal limits on the total amount of money a recipient is entitled to
receive from USDA as a result of a Federal award.
Subpart E--Intergovernmental Review of Department of Agriculture
Programs and Activities
This subpart implements Executive Order 12372, Intergovernmental
Review of Federal Programs, and the applicable provisions of section
401 of the Intergovernmental Cooperation Act of 1968 and section 204 of
the Demonstration Cities and Metropolitan Development Act of 1966, and
has been completely rewritten in consultation with active State Single
Points of Contacts (SPOCs). These consultations were conducted over an
extended period of time and the various draft revisions of this section
were circulated to all active SPOC States. This was followed by
discussions with individual SPOCs and a final review session held at
the 1999 National SPOC Network Conference held in Washington, D.C. The
proposed language reflects the ideas and comments presented by the
SPOCs throughout this consultation process.
Section 3020.40 Purpose. USDA proposes no substantive changes from
part 3105.300 ``Purpose.'' This subpart is intended to foster an
intergovernmental partnership for the review of proposed Federal
financial assistance and direct Federal development.
[[Page 41950]]
Section 3020.41 State responsibilities. This proposed section
addresses the State option to establish a coordinated review process
consisting of a Single Point Of Contact (SPOC) within the State to
review proposed Federal awards. The proposed section describes the
SPOC's assigned functions.
Section 3020.42 USDA awarding agency responsibilities. This
proposed section defines the USDA awarding agency responsibilities to
publish certain information in the Federal Register and obtain
clearance from the OCFO for any Federal Register publications regarding
implementation of this subpart. The USDA awarding agency must
coordinate with the SPOC to maintain a current list of the programs and
activities selected by the SPOC for review. The awarding agency is
responsible for notifying all State and local governments that would be
directly affected by proposed Federal financial awards from, or direct
Federal development by, USDA.
Section 3020.43 Office of the Chief Financial Officer
responsibilities. This proposed section lists OCFO's responsibilities
regarding intergovernmental cooperation and codifies OCFO's
responsibility within USDA for the Federal Assistance Awards Data
System (FAADS). OCFO will coordinate the resolution of any conflicts
between the USDA awarding agency and the SPOC and, to the extent
practicable, shall consult with all other substantially affected
Federal departments and agencies to ensure full coordination between
such agencies and the Department regarding programs and activities
covered under this subpart.
Section 3020.44 Processing comments. This proposed section provides
guidance to address how USDA agencies will process comments on proposed
awards.
Section 3020.45 Accommodation of intergovernmental concerns. This
proposed section covers how issues and concerns about an award are
handled and the timeframes in which they should be addressed.
Section 3020.46 State plans. This proposed section indicates that
Federal programs that statutorily require States to submit plans before
receiving awards are subject to the requirements set out in Sec.
3016.11 of this chapter. This section also indicates when plans may be
submitted for review, without prior approval.
Section 3020.47 Waivers. This proposed section states that in an
emergency, the Secretary of Agriculture may waive any provision of
subpart E of this part.
Subpart F--Definitions
Section 3020.50 Definitions and acronyms. This proposed section
lists definitions for the terms used throughout part 3020.
Cross Reference--Transition of Part 3015--Transfers and Deletions
------------------------------------------------------------------------
3015 Section--title 3016, 3019, 3020 Section--title
------------------------------------------------------------------------
Subpart A--General
------------------------------------------------------------------------
3015.1 Purpose and scope of this part.. 3020.1 Purpose.
3020.4 Other regulations
applicable to USDA grants.
3015.2 Applicability................... 3020.2 Applicability.
3015.3 Conflicting policies and 3020.3 Conflicting policies and
deviations. deviations.
3015.4 Special restrictive terms....... 3016.12 Special grant or
subgrant conditions for ``high-
risk'' grantees.
3019.14 Special award
conditions.
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Subpart B--Cash Depositories
------------------------------------------------------------------------
3015.10 Physical segregation and 3020.31 Physical segregation
eligibility. and eligibility.
3015.11 Separate bank accounts......... 3016.21(h)(2) Payment.
3019.22(i)(1) Payment.
3015.12 Moneys advanced to recipients.. 3020.32 Funds advanced to
recipients.
3015.13 Minority and women owned banks. 3016.21(h)(1) Payment.
3019.22(j) Payment.
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Subpart C--Bonding and Insurance
------------------------------------------------------------------------
3015.15 General........................ Deleted.
3015.16 Construction and facility 3016.36(h) Procurement.
improvement. 3019.48(c) Contract provisions.
3015.17 Fidelity bonds................. 3019.21(d) Standards for
financial management systems.
3015.18 Source of bonds................ 3020.33 Source of bonds.
----------------------------------------
Subpart D--Record Retention and Access Requirements
------------------------------------------------------------------------
3015.20 Applicability.................. Deleted.
3015.21 Retention period............... 3016.42(b) Retention * * * for
records.
3019.53(b) Retention * * * for
records.
3015.22 Starting date of retention 3016.42(c) Retention * * * for
period. records.
3019.53(b) Retention * * * for
records.
3015.23 Microfilm...................... 3016.42(d) Retention * * * for
records.
3019.53(c) Retention * * * for
records
3015.24 Access to records.............. 3016.42(e) Retention * * * for
records.
3019.53(e) Retention * * * for
records.
3015.25 Restrictions to public access.. 3016.42(f) Retention * * * for
records.
3019.53(f) Retention * * * for
records.
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[[Page 41951]]
Subpart E--Waiver of ``Single'' State Agency Requirements
------------------------------------------------------------------------
3015.30 Waiver of ``single'' State 3020.17 Waiver of ``single''
agency requirements. State agency requirements.
----------------------------------------
Subpart F--Grant Related Income
------------------------------------------------------------------------
3015.40 Scope.......................... Deleted.
3015.41 General program income......... 3016.25(a) Program income.
3019.24 Program income.
3015.42 Proceeds from sale of real 3016.25(f) Program income.
property * * * acquired for use. 3019.24(g) Program income.
3015.43 Royalties * * * from a 3016.25(e)-(g) Program income.
copyright. 3019.24(h) Program income.
3015.44 Royalties * * * from inventions 3016.25(e)-(g) Program income.
3019.24(h) Program income.
3015.45 Other program income........... 3016.25(h) Program income.
3019.24(e) Program income.
3015.46 Interest earned on advances.... 3016.21(i) Payment.
3019.22(1) Payment.
----------------------------------------
Subpart G--Cost-Sharing or Matching
------------------------------------------------------------------------
3015.50 Scope.......................... Deleted.
3015.51 Acceptable contributions and 3016.24(a) Matching or cost
costs. sharing.
3019.23(a) Cost sharing or
matching.
3015.52 Qualifications and exceptions.. 3016.24(b) Matching or cost
sharing.
3019.23(a)(2) & (5) Cost
sharing or matching.
3015.53 Valuation of donated services.. 3016.24(c) Matching or cost
sharing.
3019.23(d), (e), (h)(5) Cost
sharing or matching.
3015.54 Valuation of donated supplies * 3016.24(d) Matching or cost
* * loaned equipment or space. sharing.
3019.23(f), (h)(4) Cost sharing
or matching.
3015.55 Valuation of donated equipment, 3016.24(e) Matching or cost
buildings, and land. sharing.
3019.23(g), (h)(1) Cost sharing
or matching.
3015.56 Appraisal of real property..... 3016.24(g) Matching or cost
sharing.
3019.23(h)(1) Cost sharing or
matching.
----------------------------------------
Subpart H--Standards for Financial Management Systems
------------------------------------------------------------------------
3015.60 Scope.......................... Deleted.
3015.61 Financial management standards. 3016.20 Standards for financial
management systems.
3019.21 Standards for financial
management systems.
----------------------------------------
Subpart I--(Reserved)
------------------------------------------------------------------------
Subpart J--Financial Reporting Requirements
------------------------------------------------------------------------
3015.80 Scope and applicability........ Deleted.
3015.81 General........................ 3016.41(a) Financial reporting.
3019.52(a) Financial reporting.
3015.82 Financial status report........ 3016.41(b) Financial reporting.
3019.52(a)(1) Financial
reporting.
3015.83 Federal cash transactions 3016.41(c) Financial reporting.
report. 3019.52(a)(2) Financial
reporting.
3015.84 Request for * * * reimbursement 3016.41(d) Financial reporting.
3019.22(d) and (m)(1) Payment.
3015.85 Outlay report * * * 3016.41(e) Financial reporting.
construction. 3019.22(m)(2) Payment.
----------------------------------------
Subpart K--Monitoring and Reporting Program Performance
------------------------------------------------------------------------
3015.90 Scope.......................... Deleted.
3015.91 Monitoring by recipients....... 3016.40(a) Monitoring * * *
performance.
3019.51(a) Monitoring * * *
performance.
3015.92 Performance reports............ 3016.40(b) Monitoring * * *
performance,
3019.51(b)-(e) Monitoring * * *
performance
3015.93 Significant developments....... 3016.40(d) Monitoring * * *
performance,
3019.51(f) Monitoring * * *
performance.
3015.94 Site visits.................... 3016.40(e) Monitoring * * *
performance.
3019.51(g) Monitoring * * *
performance.
3015.95 Waivers, extensions and 3016.40(f) Monitoring * * *
enforcement actions. performance.
3019.4 Deviations.
----------------------------------------
[[Page 41952]]
Subpart L--Payment Requirements
------------------------------------------------------------------------
3015.100 Scope......................... Deleted.
3015.101 General....................... 3016.21(b) Payment.
3019.22(a) Payment.
3015.102 Payment methods............... 3016.21 Payment.
3019.22 Payment.
3015.103 Withholding payments.......... 3016.21(g) Payment.
3019.22(h) Payment.
3015.104 Requesting * * * 3016.41(d) & (e) Financial
reimbursements. reporting.
3019.22(d) & (m) Payment.
3015.105 Payments to subrecipients..... 3016.21 Payment.
3019.5 Subawards.
----------------------------------------
Subpart M--Programmatic Changes and Budget Revisions
------------------------------------------------------------------------
3015.110 Scope and applicability....... Deleted.
3015.111 Cost principles............... 3016.22 Allowable costs.
3016.30(b) Changes.
3019.25(c)(6) Revision of
budget & program plans.
3019.27 Allowable costs.
3015.112 Approval procedures........... 3016.30(a) & (f) Changes.
3019.5 Subawards.
3019.25 Revision of budget &
program plans.
3019.13 Programmatic changes........... 3016.30(d)(1) & (3) Changes.
3019.25(c)(1) & (2) Revision of
budget & program plans.
3015.114 Budgets general............... 3019.25(a) Revision of budget &
program plans.
3015.115 Budget revisions.............. 3016.30(c)(1) & (e) Changes.
3019.25(c)(4), (c)(6), (c)(7),
(d), & (e) Revision of budget
& program plans.
3015.116 Construction and 3016.30(c)(3) Changes.
nonconstruction * * * under same 3019.25(j) Revision of budget &
agreement. program plans.
----------------------------------------
Subpart N--Grant and Subgrant Closeout, Suspension and Termination
------------------------------------------------------------------------
3015.120 Closeout...................... 3016.50 Closeout.
3019.71 Closeout procedures.
3015.121 Amounts payable to the Federal 3016.52 Collection of amounts
government. due.
3019.73 Collection of amounts
due.
3015.122 Violation of terms............ 3016.43(a) Enforcement.
3019.62(a) Enforcement.
3015.123 Suspension.................... 3016.43(a)(3) & (c)
Enforcement.
3019.62(a)(3) & (c)
Enforcement.
3015.124 Termination................... 3016.43(a)(3) Enforcement.
3016.44 Termination for
convenience.
3019.62(a)(3) & (c)
Enforcement.
3019.61(a) Termination.
3015.125 Applicability to subgrants.... 3019.5 Subawards
----------------------------------------
Subparts O--P (Reserved)
------------------------------------------------------------------------
Subpart Q--Application for Federal Assistance
------------------------------------------------------------------------
3015.150 Scope and applicability....... Deleted.
3015.151 Authorized forms.............. 3016.10 Forms for applying for
grants.
3019.12 (a) & (b) Forms for
applying for Federal
assistance.
3015.152 Preapplication for Federal 3016.10 Forms for applying for
assistance. grants.
3015.153 Notice of preapplication 3016.10 Forms for applying for
review action. grants.
3015.154 Application * * * non 3016.10 Forms for applying for
construction. grants.
3015.155 Application for * * * 3016.10 Forms for applying for
construction. grants.
3015.156 Application * * * short form.. 3016.10 Forms for applying for
grants.
3015.157 Authorized form for 3019.12 Forms for applying for
nongovernmental organizations. Federal assistance.
3015.158 Competition in the awarding of 3020.14 Competing discretionary
* * * agreements. awards.
----------------------------------------
Subpart R--Property
------------------------------------------------------------------------
3015.160 Scope and applicability....... Deleted.
3015.161 Additional requirements....... Deleted.
3015.162 Title to real *** property 3016.31(a) Real property.
supplies. 3019.32(a) Real property.
3015.163 Real property................. 3016.31(b) & (c) Real property.
3019.32 Real property.
[[Page 41953]]
3015.164 Statutory * * * exemptions Deleted.
supplies.
3015.165 Rights to require transfer of 3016.32(a) & (g) Equipment.
equipment. 3019.34(g) Equipment.
3015.166 Use of equipment.............. 3016.32(c) Equipment.
3019.34(c) Equipment.
3015.167 Replacement of equipment...... 3016.32(c)(4) Equipment.
3019.34(e) Equipment.
3015.168 Disposal of equipment......... 3016.32(e) Equipment.
3019.34(g) Equipment.
3015.169 Equipment * * * requirements.. 3016.32(d) Equipment.
3019.34(f) Equipment.
3015.170 Damage of * * * of equipment.. Deleted.
3015.171 Unused supplies............... 3016.33(b) Supplies.
3019.35(a) Supplies and other
expendable property.
3015.172 Federal share real property, 3016.31(c) Real property.
equipment, and supplies. 3016.32(e)(2) Equipment.
3016.33(b) Supplies.
3019.32(c)(2) Real property.
3019.34 Equipment.
3020.21 Disposition of long
term * * * equipment.
3015.173 Using * * * returning * * * 3016.31(c) Real property.
Federal share. 3016.32(e) Equipment.
3019.32 Real property.
3019.33 Federally-owned * * *
property.
3019.34 Equipment.
3020.21 Disposition of long
term * * * equipment.
3015.174 Subrecipient's share.......... 3016.31(c) Real property.
3016.32(e)(2) Equipment.
3016.33(b) Supplies.
3019.5 Subawards.
3019.32 Real property.
3020.21 Disposition of long
term * * * equipment.
3015.175 Intangible personal property.. 3016.34 Copyrights.
3019.36 Intangible property.
----------------------------------------
Subpart S--Procurement
------------------------------------------------------------------------
3015.180 Scope and applicability....... Deleted.
3015.181 Standards of conduct.......... 3016.36(b)(3) Procurement.
3019.42 Codes of conduct.
3015.182 Open and free competition..... 3016.36(c)(1) Procurement.
3019.43 Competition.
3020.14 Competition in * * *
agreements.
3015.183 Access to contractor records.. 3016.36(i)(10) & (11)
Procurement.
3019 Appendix A--Contract
provisions.
3015.184 Equal employment opportunity.. 3016.36(i)(3) Procurement.
3019 Appendix A--Contract
provisions.
3020.16 Nondiscrimination
requirements.
----------------------------------------
Subpart T--Cost Principles
------------------------------------------------------------------------
3015.190 Scope......................... Deleted.
3015.191 Governments................... 3016.22(b) Allowable costs.
3019.27 Allowable costs.
3015.192 Institutions of higher 3016.22(b) Allowable costs.
education. 3019.27 Allowable costs.
3015.193 Other non-profit organizations 3016.22(b) Allowable costs.
3019.27 Allowable costs.
3015.194 For-profit organizations...... 3016.22(b) Allowable costs.
3019.27 Allowable costs.
3015.195 Subgrants and cost-type 3016.22(b) Allowable costs.
contracts. 3019.5 Subawards.
3019.27 Allowable costs.
3015.196 Costs allowable with approval. 3016.22(b) Allowable costs.
3019.27 Allowable costs.
----------------------------------------
Subpart U--Miscellaneous
------------------------------------------------------------------------
3015.200 Acknowledgment of support on 3020.13 Acknowledgment of
publications and audiovisuals. support * * * audiovisuals.
3015.201 Use of consultants............ 3020.20 Use of consultants.
3015.202 Limits on total payments to 3020.34 Limits on total
the recipients. payments to the recipient.
[[Page 41954]]
3015.203 Reserved...................... Deleted.
3015.204 Federal Register publications. 3020.15 Program regulations and
announcements.
3015.205 General provisions for grants 3019.12 Forms for * * *
and cooperative agreements with assistance.
institutions of higher education,
other non-profit organizations and
hospitals.
----------------------------------------
Subpart V--Intergovernmental Review of Department of Agriculture
Programs and Activities
------------------------------------------------------------------------
3015.300 Purpose....................... 3020.40 Purpose.
3015.301 Definitions................... 3020.50 Definitions and
acronyms.
3015.302 Applicability................. 3020.42 USDA awarding agency
responsibilities.
3015.303 Secretary's * * * 3020.42 USDA awarding agency
responsibilities. responsibilities.
3015.304 Federal interagency 3020.43 Office of the Chief
coordination. Financial Officer
responsibilities.
3015.305 State selection of * * * 3020.41 State responsibilities.
activities.
3015.306 Communication with State and 3020.42 USDA awarding agency
local elected officials. responsibilities.
3015.307 State comments * * * 3020.42 USDA awarding agency
development. responsibilities.
3020.44 Processing comments.
3015.308 Processing comments........... 3020.44 Processing comments.
3015.309 Accommodation of * * * 3020.45 Accommodation of * * *
concerns.. concerns
3015.310 Interstate situations......... 3020.42 USDA awarding agency
responsibilities.
3015.311 Simplification * * * of State 3016.11 State plans.
plans. 3020.46 State plans.
3015.312 Waivers....................... 3020.47 Waivers.
Appendix A--Definitions................ 3016.3 Definitions.
3019.2 Definitions.
3020.50 Definitions and
acronyms.
Appendix B--OMB Circular A-128 ``Audits Deleted. See 7 CFR part 3052
of State and Local Governments''. ``Audits of States, Local
Governments, and Non-profit
Organizations''.
------------------------------------------------------------------------
Regulatory Impact Analysis
Executive Order 12866
Executive Order 12866 requires that a regulatory impact analysis be
prepared for ``significant regulatory actions'' which are defined in
Executive Order 12866 as any rule that has an annual effect on the
national economy of $100 million or more or certain other specified
effects.
USDA does not believe that the proposed rule will have an annual
impact of $100 million or more or any other effects listed in Executive
Order 12866. For this reason, USDA has determined that this proposed
rule is not a significant regulatory action within the meaning of
Executive Order 12866.
Executive Order 12988
This proposed rule has been reviewed in accordance with Executive
Order 12988, Civil Justice Reform. The provisions of this proposed rule
do not preempt State laws, are not retroactive, and do not involve
administrative appeals.
Executive Order 13132
It has been determined that this proposed rule does not have
sufficient Federalism implications to warrant the preparation of a
Federalism Assessment. The provisions contained in this proposed rule
will not have a substantial direct effect on States or their political
subdivisions or on the distribution of power and responsibilities among
the various levels of government.
USDA recognizes that the proposed rule has component language that
may have some federalism impact. First, the proposed rule removes the
existing regulatory language in 7 CFR part 3015 subpart V addressing
Intergovernmental Review of Department of Agriculture Programs and
Activities, and promulgates revised regulatory language at 7 CFR part
3020. As explained above, USDA consulted extensively with the active
State Single Points of Contact throughout the drafting process. These
consultations were conducted over an extended period of time and the
various draft revisions of this section were circulated to all active
SPOC States. This was followed by discussions with individual SPOCs and
a final review session held at the 1999 National SPOC Network
Conference held in Washington, DC. The proposed language reflects the
ideas and comments presented by the SPOCs throughout this consultation
process.
Second, the proposed rule also implements Executive Order 12803,
``Infrastructure Privatization,'' in Sec. 3020.21, authorizing
exceptions to the disposition requirements for infrastructure assets
applicable to State, local, and Indian tribal government recipients
under 7 CFR part 3016. This proposed regulation essentially provides
that such recipients may request a waiver in accordance with Executive
Order 12803. USDA intends to incorporate, and not to alter, the
provisions of Executive Order 12803 allowing for such waivers.
Implementation of Executive Order 12803 in the departmental regulations
codifies the waiver policy, increasing the awareness of State, local,
and Indian tribal governments of their ability to request such waivers.
USDA considers the proposed rule to have minimal federalism
implications, and those minimal implications to be positive because of
the added flexibility and awareness of such flexibility in USDA
relationships with State, local, and Indian tribal government
recipients.
Finally, the rule proposes codification of the applicability of the
current regulations at 7 CFR part 3016 to all USDA agreements, as
defined in proposed Sec. 3020.2, with State, local, and Indian tribal
governments. USDA is not revising the substantive requirements of 7 CFR
part 3016. USDA again considers the proposed rule to have minimal
federalism implications because State governments are already subject
to these requirements for assistance awards.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601-612) requires that,
for each
[[Page 41955]]
rule with ``a significant economic impact on a substantial number of
small entities,'' an analysis must be prepared describing the rule's
impact on small entities and identifying any significant alternatives
to the rule that would minimize the economic impact on small entities.
USDA certifies that this proposed rule would not have a significant
economic impact on a substantial number of small entities.
Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. chapter 25)
requires agencies to prepare several analyses before proposing any rule
that may result in annual expenditures of $100 million or more in any
one year by State, local, and Indian tribal governments or the private
sector. USDA certifies that this proposed rule will not result in
expenditures of this magnitude.
Paperwork Reduction Act of 1995
This proposed rule will not impose additional reporting or record
keeping requirements under the Paperwork Reduction Act of 1995 (44
U.S.C. chapter 35).
List of Subjects
7 CFR Part 3015
Accounting, Grant programs, Intergovernmental relations, Reporting
and recordkeeping requirements.
7 CFR Parts 3019 and 3020
Accounting, Colleges and universities, Grant programs, Hospitals,
Intergovernmental relations, Nonprofit organizations, Reporting and
recordkeeping requirements.
Edward R. McPherson,
Chief Financial Officer.
Ann M. Veneman,
Secretary of Agriculture.
For the reasons stated in the preamble, USDA proposes to amend
parts 3015, 3019 and 3020 of 7 CFR chapter XXX as follows:
PART 3015--[REMOVED AND RESERVED]
1. Remove and reserve part 3015.
PART 3019--UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND
AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER
NONPROFIT, AND FOR-PROFIT ORGANIZATIONS
2. The authority citation for part 3019 is revised to read as
follows:
Authority: 5 U.S.C. 301, Pub. L. 101-576, 7 CFR 2.2, 7 CFR 2.28.
3. The heading for part 3019 is revised to read as set forth above.
4. Amend subpart A of 7 CFR part 3019 as follows:
Subpart A--General
a. Revise Sec. 3019.1 to read as follows:
Sec. 3019.1 Purpose.
This part establishes uniform administrative requirements for
Federal grants and agreements awarded to institutions of higher
education, hospitals, other non-profit organizations, and for-profit
organizations. USDA awarding agencies shall not impose additional or
inconsistent requirements, except as provided in Sec. Sec. 3019.4 and
3019.14 or unless specifically required by Federal statute or executive
order. Non-profit and for-profit organizations that implement Federal
programs for the States are also subject to State requirements.
b. Revise Sec. 3019.2 (cc) to read as follows:
Sec. 3019.2 Definitions.
* * * * *
(cc) Recipient means an organization receiving financial assistance
directly from Federal awarding agencies 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 and for-profit organizations such as,
but not limited to, community action agencies, research institutes,
educational associations, health centers, commercial organizations, and
foreign or international organizations (such as agencies of the United
Nations) which are recipients, subrecipients, or contractors or
subcontractors of recipients or subrecipients. The term does not
include procurement contracts or other agreements, that are otherwise
subject to the Federal Acquisition Regulation (FAR) or the Agriculture
Acquisition Regulation (AgAR).
* * * * *
c. Revise Sec. 3019.5 to read as follows:
Sec. 3019.5 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 such subrecipients are
institutions of higher education, hospitals, other non-profit
organizations or for-profit organizations such as, but not limited to,
community action agencies, research institutes, educational
associations, health centers, commercial organizations, and foreign or
international organizations (such as agencies of the United Nations).
State and local government subrecipients are subject to the provisions
of regulations implementing the common rule, ``Uniform Administrative
Requirements for Grants and Cooperative Agreements to State and Local
Governments,'' codified by USDA at 7 CFR part 3016.
* * * * *
d. Revise Sec. 3019.26(a) to read as follows:
Sec. 3019.26 Non-Federal audits.
(a) Non-Federal recipients and subrecipients that receive funds
from a Federal awarding agency shall be subject to the audit
requirements codified at 7 CFR part 3052, ``Audits of States, Local
Governments, and Non-Profit Organizations.''
* * * * *
5. Add part 3020 as follows:
PART 3020--GENERAL PROGRAM ADMINISTRATION REGULATIONS
Subpart A--General
Sec.
3020.1 Purpose.
3020.2 Applicability.
3020.3 Conflicting policies and deviations.
3020.4 Other regulations applicable to USDA agreements.
Subpart B--Basic Requirements
3020.10 Authority clause.
3020.11 Identification and use of USDA agreements.
3020.12 Program reporting requirements.
3020.13 Acknowledgment of support on publications and audiovisuals.
3020.14 Competing discretionary awards.
3020.15 Program regulations and announcements.
3020.16 Nondiscrimination requirement.
3020.17 Waiver of ``single'' State agency requirements.
Subpart C--Management of Agreements
3020.20 Use of consultants.
3020.21 Disposition of long-term financial interests in real
property, personal property and equipment.
Subpart D--Management of Funds
3020.30 Management of indirect costs.
3020.31 Physical segregation and eligibility.
3020.32 Funds advanced to recipients.
3020.33 Source of bonds.
3020.34 Limits on total payments to the recipient.
Subpart E--Intergovernmental Review of Department of Agriculture
Programs and Activities
3020.40 Purpose.
3020.41 State responsibilities.
3020.42 USDA awarding agency responsibilities.
[[Page 41956]]
3020.43 Office of the Chief Financial Officer responsibilities.
3020.44 Processing comments.
3020.45 Accommodation of intergovernmental concerns.
3020.46 State plans.
3020.47 Waivers.
Subpart F--Definitions
3020.50 Definitions and acronyms.
Authority: 5 U.S.C. 301; Pub. L. 101-576, 104 Stat. 2838.
Subpart A--General
Sec. 3020.1 Purpose.
This part establishes Department wide standards for USDA's
administration of Federal programs.
Sec. 3020.2 Applicability.
(a) USDA agreements. Except as provided for in paragraph (c) of
this section, this part applies to all USDA agreements.
(b) USDA agreement recipients. Except as provided for in paragraph
(c) of this section, this part is applicable to all USDA agreement
recipients including subrecipients.
(c) Exceptions. This part does not apply to:
(1) Procurement contracts or other agreements subject to the
Federal Acquisition Regulation (FAR) or the Agriculture Acquisition
Regulation (AgAR).
(2) Agreements providing loans or insurance directly to an
individual.
(3) Agreements with foreign governments.
(4) Agreements entered into under statutory authorities that
explicitly exempt such agreements from chapter 63 of title 31, United
States Code.
(5) Cooperative research and development agreements entered into
under 15 U.S.C. 3710a.
Sec. 3020.3 Conflicting policies and deviations.
(a) Except when authorized to act otherwise by statute or by a
waiver by the Office of the Chief Financial Officer (OCFO), the
provisions in this part apply and take precedence over any individual
USDA agency regulations, directives, and policies dealing with the
administration of USDA agreements.
(b) Responsibility for developing, interpreting, and updating this
part is assigned to the OCFO.
Sec. 3020.4 Other regulations applicable to USDA agreements.
(a) Related issuances are in other parts of title 7 as follows:
(1) 7 CFR part 3016 ``Uniform Administrative Requirements for
Grants and Cooperative Agreements to State and Local Governments;''
(2) 7 CFR part 3017 subparts A-E ``Governmentwide Debarment and
Suspension (Nonprocurement);''
(3) 7 CFR part 3017 subpart F ``Governmentwide requirements for
Drug-Free Workplace (Grants);''
(4) 7 CFR part 3018 ``New Restrictions on Lobbying;''
(5) 7 CFR part 3019 ``Uniform Administrative Requirements for
Grants and Agreements With Institutions of Higher Education, Hospitals,
Other Nonprofit Organizations, and For-Profit Organizations;''
(6) 7 CFR part 3052 ``Audits of States, Local Governments, and
Nonprofit Organizations,''
(b) Entitlement and mandatory awards are included in the scope of
part 3016 and part 3019 of this chapter as determined by the type of
recipient.
(c) Awarding agencies are to apply the rules in part 3019 of this
chapter to for-profit entities.
Subpart B--Basic Requirements
Sec. 3020.10 Authority clause.
(a) USDA agencies must include in every USDA agreement a clause
citing the appropriate statutory and funding authority for the
agreement.
(b) USDA agencies shall ensure that only those statutorily
authorized Federal resources are used in support of any agreement.
(c) USDA agencies shall establish appropriate internal control
systems to ensure that each agreement is administered within the
related statutory authority.
Sec. 3020.11 Identification and use of USDA agreements.
(a) In accordance with 31 U.S.C. Chapter 63, a USDA agency shall
use the following criteria in identifying the proper type of instrument
to document a procurement or an assistance relationship with a non-
Federal party.
(1) Procurement relationship. A USDA agency shall use a procurement
contract when ``the principal purpose of the relationship is to acquire
(by purchase, lease, or barter) property or services for the direct
benefit or use of the United States Government.'' The administration of
these agreements is subject to the rules set out in the Federal
Acquisition Regulation (FAR), 48 CFR Chapter 1, and the Agriculture
Acquisition Regulation (AgAR), 48 CFR Chapter 4.
(2) Federal assistance relationship.
(i) Grant agreement. A USDA agency shall use a grant agreement when
``the principal purpose of the relationship is to transfer a thing of
value (money, property, services, etc.) to the recipient to carry out a
public purpose of support or stimulation authorized by a law of the
United States instead of acquiring (by purchase, lease, or barter)
property or services for the direct benefit or use of the United States
Government,'' and ``substantial involvement is not expected'' between
the USDA agency and the recipient when carrying out the contemplated
activity.
(ii) Cooperative agreement. A USDA agency shall use a cooperative
agreement when ``the principal purpose of the relationship is to
transfer a thing of value to the recipient to carry out a public
purpose of support or stimulation authorized by law of the United
States instead of acquiring (by purchase, lease, or barter) property or
services for the direct benefit or use of the United States
Government,'' and ``substantial involvement is expected'' between the
USDA agency and the recipient when carrying out the contemplated
activity.
(b) Memorandum of Understanding (MOU). A USDA agency may use an MOU
as a planning document to define the nature, terms, and conditions for
facilitating and coordinating efforts of mutual interest to the parties
involved. An MOU is not an obligating document and may not be used to
commit USDA assets or resources in any manner. Other types of
agreements may be used in conjunction with an MOU to achieve any needed
commitments.
(c) Interagency and intra-agency agreements. Agreements between two
or more Federal entities which result in the transfer of funds or other
resources for the purpose of carrying out a program, initiative,
activity or function of the Federal government shall be either an
inter- or intra-agency transfer.
(d) Agreements with institutions of higher education, hospitals,
non-profit, and for-profit organizations. Any USDA agreement,
regardless of title but excluding agreements subject to the rules set
out in the FAR and the AgAR, between a USDA agency and any institution
of higher education, hospital, non-profit, or for-profit organization
will be governed by this part and part 3019 of this chapter. This
includes USDA agreements with these types of foreign organizations
unless specifically excluded or exempted by treaty or statute.
(e) Agreements with State, local and tribal Governments. Any USDA
agreement, regardless of title except for agreements subject to the
rules set out in the FAR and the AgAR, between a USDA agency and any
State, local or tribal government will be governed by this part and
part 3016 of this chapter.
[[Page 41957]]
Sec. 3020.12 Program reporting requirements.
The following are mandatory reporting requirements for all USDA
agreements:
(a) Catalog of Federal Domestic Assistance (CFDA). (1) In
accordance with the Federal Program Information Act (31 U.S.C. chapter
61), USDA agencies shall submit CFDA information consistent with
standards, time lines, and formats established by the General Services
Administration (GSA) or any successor central guidance agency for any
program that has been determined to be a domestic assistance program as
defined in that Act.
(2) Based on the information submitted, the OCFO, in consultation
with GSA, shall assign an appropriate permanent or temporary CFDA
number.
(3) USDA agencies shall include the CFDA number in any printed or
electronic information available to any non-Federal entity, including
but not limited to regulatory actions published in the Federal Register
and program announcements.
(b) Federal Assistance Award Data System (FAADS). (1) In accordance
with the Federal Program Information Act and section 201 of the
Intergovernmental Cooperation Act of 1968 (31 U.S.C. 6502), USDA
agencies shall submit FAADS information consistent with standards, time
lines, and formats established by the OCFO and the Department of
Commerce or any successor central guidance agency for programs
involving financial transactions that have been determined to be
domestic assistance as defined in the Federal Program Information Act.
Non-financial transactions such as dissemination of technical
information, advisory services or consulting by Federal employees are
not to be reported in FAADS.
(2) Agencies are encouraged to transmit FAADS data on-line.
Agencies may also transmit FAADS data using the batch or tape methods
of data collection and transmission provided that such methods meet
established FAADS standards and are approved in advance by the OCFO.
Sec. 3020.13 Acknowledgment of support on publications and
audiovisuals.
(a) Publications. Recipients shall acknowledge USDA awarding agency
support, whether cash or in-kind, in any publications written or
published with Federal support and, if feasible, on any publication
reporting the results of, or describing, a Federally supported
activity.
(b) Audiovisuals. Recipients shall acknowledge USDA awarding agency
support in any audiovisual produced with Federal support that has a
direct production cost to the recipient of over $5,000. Unless the
terms of the Federal award provide otherwise, this requirement does not
apply to:
(1) Audiovisuals produced under mandatory or formula grants or
under subawards.
(2) Audiovisuals produced as research instruments or for
documenting experimentation or findings and not intended for
presentation or distribution to the general public.
(c) Waivers. USDA awarding agencies may waive any requirement of
Sec. 3020.13. USDA awarding agencies may establish such requirements
and procedures for the waiver process as they deem necessary.
Sec. 3020.14 Competing discretionary awards.
(a) Standards for competition. Except as provided in paragraph (c)
of this section, USDA awarding agencies shall enter into discretionary
assistance agreements only after competition. A USDA agency's
competitive award process shall adhere to the following standards:
(1) Potential applicants must be invited to submit proposals
through publications and electronic media to achieve the broadest
dissemination of project solicitations in order to reach the highest
number of potential applicants.
(2)(i) Proposals are to be evaluated objectively by independent
reviewers in accordance with written criteria set forth in program
solicitations. Independent reviewers may be from the public or private
sector as long as they do not include:
(A) Anyone who has approval authority for the applications being
reviewed; or
(B) Anyone who appears to have a conflict of interest in reviewing
applications.
(ii) The appearance of a conflict of interest arises when the
reviewer or the reviewer's immediate family members have been
associated with the applicant or applicant organization within the past
two to five years, as determined by the agency, as an owner, partner,
officer, director, employee, or consultant; has any financial interest
in the applicant or applicant organization; or is negotiating for, or
has any arrangement, concerning prospective employment with the
applicant. If the awarding agency makes a written determination that
the pool of qualified individual reviewers is so small that all or
almost all qualified reviewers would have the appearance of or an
actual conflict of interest, the awarding agency may waive the
appearance of conflicts of interest to allow a qualified individual to
serve as a reviewer. However, the agency may not allow that individual
to review any applications for which an actual conflict of interest
exists.
(3) An unsolicited application that is not unique and innovative
shall be competed under the USDA program solicitation it comes closest
to fitting. USDA officials will determine the solicitation under which
the application is to be competed. When the USDA awarding agency
official decides that the unsolicited application does not fall under a
recent, current, or planned solicitation, a noncompetitive award may be
made, if appropriate to do so under the criteria of paragraph (c) of
this section. Otherwise, the application should be returned to the
applicant.
(b) Approval of applications. The final decision to award is at the
discretion of the awarding official in each agency. The awarding
official shall consider the ranking, comments, and recommendations from
the independent reviewers, and any other pertinent information before
deciding which applications to fund and their order of funding. Any
appeals by applicants regarding the award decision shall be handled by
the awarding agency using existing agency appeal procedures or, in the
absence of established agency appeal procedures, good administrative
practice and sound business judgment.
(c) Exceptions. The awarding official may make a written
determination that competition is not deemed appropriate for a
particular transaction. Such determination shall be limited to
transactions for which a noncompetitive award can be adequately
justified as being in the best interest of the Government and necessary
to accomplish the program goals. Reasons to consider noncompetitive
award may include, but are not limited to, the following:
(1) Non-monetary awards of property or services;
(2) Awards of less than $75,000;
(3) Awards to fund continuing work started under a previous award;
(4) Awards relating to a current emergency or substantial danger to
health or safety;
(5) Awards for which competition is impracticable; or
(6) Awards to fund unique and innovative unsolicited applications.
Sec. 3020.15 Program regulations and announcements.
(a) Publication method. The Federal Register is the preferred, and
in certain instances mandatory, method for providing information to the
public on
[[Page 41958]]
matters related to USDA agreements and programs.
(b) Program regulations. Regulations or other documents that
establish requirements or procedures binding on the public related to
USDA's programs or activities shall be published in the Federal
Register.
(c) Program announcements. For each competition for funds under a
program, the awarding agency must publicize the availability of Federal
assistance under the program in either the Federal Register or through
other methods reasonably expected to notify the targeted audience.
Program announcements invite applications for one or more stated
program objectives. They should include at least the following
information:
(1) The CFDA number and title;
(2) An estimate of how much money will be available for awards and
the expected size of the awards, broken down by subprogram or priority
area when appropriate;
(3) Who is eligible;
(4) How to obtain application kits;
(5) Where to submit applications;
(6) The deadline for submitting applications; and
(7) Whether any or all of the awards are likely to be cooperative
agreements rather than grants. In that case, if feasible, the program
announcement should also describe the anticipated substantial Federal
involvement in performance. (This paragraph does not prevent the award
of cooperative agreements under a program announcement that mentioned
only grants. Nor does it prevent the award of grants under a program
announcement that mentioned only cooperative agreements.)
(d) Program solicitations. A program solicitation for competitive
assistance awards by the awarding agency shall include or reference the
following, as appropriate:
(1) A description of the eligible activities that the awarding
agency proposes to support and the program priorities;
(2) Eligible applicants;
(3) The dates and amounts of funds expected to be available for
awards;
(4) Evaluation criteria and weights, if appropriate, assigned to
each;
(5) Methods for evaluating and ranking applications;
(6) Name and address where proposals should be mailed and
submission deadlines(s);
(7) Any required forms and how to obtain them;
(8) Applicable cost principles and administrative requirements;
(9) Type of funding instrument intended to be used (grant or
cooperative agreement); and
(10) The CFDA number and title.
(e) Evaluation criteria and procedures. The awarding agency may
elect to publish its criteria and procedures for evaluating
applications for competitive awards either in the program regulations
or the program announcement in addition to the program solicitation. If
the criteria are not all equal in importance, their relative weights
should also be published. Failure to identify any relative weights
creates a presumption that all criteria are weighted equally. The
criteria should cover at least the following factors (except where the
nature of the eligible projects makes one or more of these factors
irrelevant):
(1) The qualifications of proposed project personnel;
(2) The adequacy of the applicant's facilities and resources;
(3) The adequacy of the project plan or methodology;
(4) The cost-effectiveness of the project; and
(5) How closely the project objectives fit the objectives for which
applications were invited.
(f) Funding priorities. If the awarding agency intends to give
priority to one or more particular kinds of projects, the priority (and
how it will be applied in deciding which applications to fund) should
be described in the program announcement.
(g) Projects building on prior awards. If the awarding agency
intends to give a preference to applications proposing to further
previously funded projects over applications for projects not
previously receiving support under the program, or vice versa, the
preference should be described in the program announcement.
(h) Programs with specific identifiable potential applicants. For
programs with limited eligibility for which all potential applicants
can be specifically and accurately identified (for example, State
Governments), the awarding agency may elect to create a complete list
of potential applicants and to send a copy of the program announcement
or program solicitation directly to every potential applicant instead
of publishing it in the Federal Register, provided that the awarding
agency establishes an adequate internal control system to ensure that:
(1) Prior to each use of the list, the list is verified for
completeness and accuracy; and
(2) Use of the list does not violate the intent of Sec.
3020.14(a)(1).
(i) Additional information to be made available. In addition to the
items specified in paragraphs (b) through (g) of this section, each
awarding agency shall make available to the public the following
information and materials for each program:
(1) A copy of, or reference to, the authorizing statutes for the
program; and
(2) All guidelines generally applicable to administration of the
program.
(j) Discussions with applicants. Each awarding agency should
publish as much information as practicable to reduce the need for
individual discussions with potential applicants. If the awarding
agency does engage in consultations or discussions with any potential
applicants, the agency shall give consistent interpretations and fair
treatment to all potential applicants. The agency shall ensure that any
discussions do not knowingly prejudice any applicant or undermine the
competitive process of the program.
Sec. 3020.16 Nondiscrimination requirement.
It shall be a condition of every USDA agreement that the recipient
assures compliance with the following statement:
No person in the United States shall be excluded from
participation in, be denied the benefits of, or be otherwise
subjected to prohibited discrimination in programs and activities
funded in whole or part by USDA based on race, color, national
origin, age, disability, and, where applicable, sex, religion or
political beliefs.
Sec. 3020.17 Waiver of ``single'' State agency requirements.
(a) Waiver authority. In the event that Federal law requires that a
single State agency or multi member board or commission be established
to administer or supervise the administration of a program, then
section 204 of the Intergovernmental Cooperation Act of 1968 (31 U.S.C.
6504) authorizes the Federal awarding agency to waive the ``single''
State agency requirements upon request of the Governor or other
authorized State authorities.
(b) Approval authority. The USDA awarding agency has approval
authority for waiver requests, and shall handle them as quickly as
feasible. Approval should be given whenever possible under the
statutory criteria.
(c) Refusal procedures. When it is necessary to refuse a request
for the waiver of the ``single'' State agency requirements, the USDA
awarding agency shall, through the OCFO, advise the Office of
Management and Budget (OMB) that the request cannot be granted. Such
advice should indicate
[[Page 41959]]
the reasons for the denial of the request. The notification to OMB
shall occur prior to informing the State of the refusal.
Subpart C--Management of Agreements
Sec. 3020.20 Use of consultants.
(a) Basic policy--(1) Prior approval. Awarding agencies shall not
require prior approval for the use of consultants, except as noted in
paragraphs (a)(2) and (b) of this section.
(2) Exceptions. (i) In unusual cases, using a consultant may
constitute a transfer of substantive programmatic work, which requires
prior approval under discretionary Federal awards.
(ii) Consulting fees paid by an organization to its own employees
require prior approval.
(b) Use of an organization's own employees--(1) Faculty members of
educational institutions. Charges representing extra compensation
(above base salary) paid by an educational institution to a salaried
member of its faculty for consulting work are allowable only in unusual
cases, and only if both of the following conditions exist:
(i) The consultation is across departmental lines or involves a
separate or remote operation; and
(ii) The work performed by the consultant is in addition to his or
her regular departmental load.
(2) All other cases. In all other cases, consulting fees paid in
addition to salary by recipients to people who are also their employees
may be supported by a Federal award or subaward only in unusual cases,
and only if all of the following three conditions exist:
(i) The policies of the recipient permit such consulting fee
payments to its own employees regardless of whether Federal funds are
involved;
(ii) The work involved is clearly outside the scope of the person's
salaried employment; and
(iii) It would be inappropriate or not feasible to compensate for
the additional work by paying additional salary to the employee.
(3) Requirement for approval. Consulting fees paid under paragraphs
(a)(2) and (b)(1) and (2) of this section must have a specific prior
approval in writing from the Head of the recipient organization or from
his or her designated representative. If the recipient is a government,
the approval may be given by the Head (or a designated representative
of the Head) of the government agency that is primarily responsible for
administering or carrying out the project or program. If the designated
representative is personally involved in the project or program under
consideration, only the Head may give the approval. If the Head is
personally involved in the project or program under consideration,
prior approval from the awarding agency is required. Such prior
approval must include a determination that the applicable requirements
in paragraph (b) (1) or (2) of this section are present.
(c) Documentation standards. (1) Charges for consulting payments
must be supported in the records of the recipient by an invoice from
the consultant and a copy of the written report (if a report is
appropriate) or other documented evidence of the work performed from
the consultant.
(2) If any of the following information is not shown on the invoice
or report from the consultant, the information must be shown in a
memorandum or other document prepared by the recipient for its files,
or noted in handwriting on the consultant's invoice by the recipient.
The memorandum, other document, or handwritten notation must be signed
by an official of the recipient and show:
(i) The name of the consultant;
(ii) The nature of the services provided (such as statistical
analysis of data, participation on project advisory committee, or
specified medical services to eligible beneficiaries);
(iii) The relevance of the services to the project or program, if
not apparent from the nature of the services; and
(iv) Whichever of the following is applicable:
(A) If the fee was based on a rate per day or hours worked, the
rate and the dates or hours worked;
(B) If the fee was based on a rate per unit of service provided,
such as the number of patients examined by a physician, the rate, the
number of units of service provided, and the beginning and ending dates
of the overall period of service; or
(C) If the fee was determined on some other basis, the basis for
determining the fee and the beginning and ending dates of the period in
which services were provided.
Sec. 3020.21 Disposition of long term financial interests in real
property, personal property, and equipment.
(a) When a USDA agency acquires a financial interest in real
property in accordance with the rules set out in part 3016 or part 3019
of this chapter, and the originally authorized purpose for the property
has been met, agencies shall follow the appropriate rules set out in
part 3016 or part 3019 of this chapter for the disposal of such real
property except:
(1) When the recipient is a State or local government requesting
authority to dispose of the property by sale to a domestic, non-
governmental entity in accordance with Executive Order 12803
``Infrastructure Privatization,'' then the USDA awarding agency shall
follow the method set out in Executive Order12803 provided that the
real property portion of the transaction is not depreciated in any
manner.
(2) When the recipient has not requested disposal instructions and
20 years have passed since the last Federal need or use of the real
property, then any Federal financial interest in the property shall be
deemed to have ended.
(b) When a USDA agency acquires a financial interest in personal
property or equipment in accordance with the rules set out in part 3016
or part 3019 of this chapter, and the originally authorized purpose for
the property or equipment has been met, the agency shall follow the
appropriate rules set out in part 3016 or part 3019 of this chapter for
the disposal of such property or equipment except:
(1) When the recipient has not requested disposal instructions and
20 years have passed since the last Federal need or use of the property
or equipment, then any Federal financial interest in the property or
equipment shall be deemed to have ended.
(2) [Reserved]
Subpart D--Management of Funds
Sec. 3020.30 Management of indirect costs.
(a) Indirect costs may be paid only subsequent to the establishment
of an indirect cost rate as required by Sec. Sec. 3016.22 and 3019.27
of this chapter and the applicable cost principles or in the case of
for-profit entities, the cost accounting standards. A provisional rate
may be used pending the establishment of a final rate. In the absence
of either a final or provisional indirect cost rate, awarding agencies
are not authorized to advance or reimburse payments to entities for
these costs.
(b) An awarding agency should pay the established indirect cost
rate. Only where statutory authority exists, an awarding agency may pay
an increase in the established direct cost rate. An awarding agency may
pay a lesser amount than the established indirect cost rate if required
by statute or if the recipient waives some or all of its indirect
costs.
(c)(1) Recipients requesting payment of indirect costs may request
the establishment of a negotiated indirect
[[Page 41960]]
cost rate. Such requests should be made to:
(i) The Federal department designated by the OMB to be the lead
agency;
(ii) The Federal department providing the most Federal money in the
current fiscal year; or
(iii) The Federal department with which the entity has had the
longest standing relationship.
(2) When USDA is the Federal department responsible for negotiating
the indirect cost rate, the request shall be made to the OCFO. The OCFO
will determine which of the USDA agencies shall conduct the
negotiation. Only those USDA agencies that have been delegated
negotiation authority by the OCFO may conduct indirect cost rate
negotiations.
Sec. 3020.31 Physical segregation and eligibility.
(a) Except as provided in Sec. Sec. 3020.32, 3016.21 (h), and
3019.22 (i),(j), and (k) of this chapter, awarding agencies shall not
impose conditions which:
(1) Require the recipient to use a separate bank account for the
deposit of Federal funds; or
(2) Establish any eligibility requirements for banks or other
financial institutions in which recipients deposit Federal funds for
USDA agreements.
(b) [Reserved]
Sec. 3020.32 Funds advanced to recipients.
Any moneys advanced to recipients that remain subject to the
control or regulation of the United States or any of its officers,
agents, or employees (public moneys as defined in 31 CFR 202.1), must
be deposited in a bank with FDIC insurance coverage whenever possible,
and the balance exceeding the FDIC coverage must be collaterally
secured.
Sec. 3020.33 Source of bonds.
Any bonds required under Sec. 3016.36 (h)(1) through (3) or
Sec. Sec. 3019.21 (c) and (d) and 3019.48 (c)(1) through (3) of this
chapter shall be obtained from companies holding certificates of
authority as acceptable sureties listed by the Department of the
Treasury in its Department Circular 570.
Sec. 3020.34 Limits on total payments to the recipient.
(a) This section summarizes the four most widely applicable limits
on the total amount of money the recipient is entitled to receive from
USDA as a result of a Federal award. It is permissible for the terms of
a USDA agreement to provide one or more additional limits.
(b) For each Federal award, the lowest of the applicable limits is
the one that governs the final settlement upon expiration or
termination of the award.
(c) The following two limits apply to every Federal award:
(1) The amount of Federal funds authorized; and
(2) The Federal share of the allowable costs incurred by the
recipient.
(d) Federal awards that require a specified percentage of cost
sharing or matching are subject to the applicable limits described in
Sec. Sec. 3016.24 and 3019.23 of this chapter.
(e) For each budget period of an incrementally funded discretionary
Federal award, the limit is the Federal share of the allowable costs
for that period's approved budget.
Subpart E--Intergovernmental Review of Department of Agriculture
Programs and Activities
Sec. 3020.40 Purpose.
(a) This subpart establishes regulations implementing Executive
Order 12372, ``Intergovernmental Review of Federal Programs'' and the
applicable provisions of section 401 of the Intergovernmental
Cooperation Act of 1968 (31 U.S.C. 6506) and section 204 of the
Demonstration Cities and Metropolitan Development Act of 1966 (42
U.S.C. 3334).
(b) This subpart is intended to foster an intergovernmental
partnership for review of proposed Federal financial assistance and
direct Federal development.
Sec. 3020.41 State responsibilities.
(a) A State may elect to establish a coordinated review process
within the State to review proposed Federal awards. The State review
process shall consist of a Single Point Of Contact (SPOC) with the
assigned functions of:
(1) Selecting any of the programs or activities published in the
Federal Register in accordance with Sec. 3020.42 (a) for
intergovernmental review. Each SPOC, before selecting programs and
activities, should consult with local elected officials;
(2) Notifying the USDA awarding agency of the Department's programs
and activities selected for the State review process. A State may
notify the USDA awarding agency of changes in its selections anytime;
(3) Reviewing proposed Federal awards forwarded to the SPOC by the
USDA awarding agency;
(4) Distributing for comment the proposed award to all interested
or affected local governments or other interested parties within the
State, and compiling and analyzing any comments received;
(5) Providing the USDA awarding agency with a consolidated State
recommendation for or against the proposed Federal award;
(6) Providing the USDA awarding agency with the State Agency
Identification (SAI) number on each SPOC recommendation, if the SPOC
process includes a State tracking system that assigns SAI numbers.
(b) If a State elects not to establish a SPOC in accordance with
paragraph (a) of this section or the SPOC does not select a particular
program or activity, the State, area wide, regional and local officials
and entities may submit comments in accordance with Sec. 3020.42
(b)(2).
Sec. 3020.42 USDA awarding agency responsibilities.
(a) The USDA awarding agency is required to publish in the Federal
Register a list of the agency's programs and activities that are
subject to this subpart and identify which of these are also subject to
the requirements of section 204 of the Demonstration Cities and
Metropolitan Development Act (42 U.S.C. 3334).
(1) The USDA awarding agency shall obtain clearance from the OCFO
for any Federal Register publications regarding implementation of this
subpart.
(2) In coordination with the SPOC, each USDA awarding agency shall
maintain a current list of the programs and activities selected by the
SPOC for review in accordance withSec. 3020.41 (a) (2).
(b) The USDA awarding agency is responsible for notifying all State
and local governments that would be directly affected by proposed
Federal financial awards from, or direct Federal development by, USDA:
(1) When a State has established a process under Sec. 3020.41 (a),
the USDA awarding agency shall exclusively use that process adopted by
the State to review and coordinate proposed awards and shall allow a
minimum of 60 days for the SPOC to comment on proposed awards. The USDA
awarding agency shall allow for a comment period of less than 60 days
only with the formal concurrence of the SPOC.
(2) When a State has not established a process or a program or
activity has not been selected by the SPOC for review, the USDA
awarding agency shall notify each of the affected State and local
government officials directly and shall allow a minimum of 30 days for
comments on proposed awards.
(c) The USDA awarding agency shall establish a system for accepting
and evaluating comments when received
[[Page 41961]]
from the SPOC or individual entities and shall maintain appropriate
records.
(1) The USDA awarding agency should make every effort to coordinate
the process adopted by States at the Federal organizational level
geographically closest to the State and local government affected.
(2) The USDA awarding agency shall establish a system to ensure
that the SPOC assigned SAI number is entered into the FAADS database in
an accurate and timely manner.
(3) The USDA awarding agency shall make every effort to resolve
State and local elected officials' concerns with proposed awards.
Sec. 3020.43 Office of the Chief Financial Officer responsibilities.
(a) OCFO approval is a required prerequisite for any Federal
Register publication listing USDA programs and activities that are
subject to these regulations and subject to the requirements of section
204 of the Demonstration Cities and Metropolitan Development Act (42
U.S.C. 3334).
(b) The OCFO will coordinate the resolution of any conflicts
between the USDA awarding agency and the SPOC in accordance with Sec.
3020.45 (b).
(c) The OCFO ensures that the USDA central database, FAADS,
supports the requirements of this system, including accurate SAI
numbers.
(d) The OCFO, to the extent practicable, shall consult with and
seek advice from all other substantially affected Federal departments
and agencies in an effort to ensure full coordination between such
agencies and the Department regarding programs and activities covered
under this subpart.
Sec. 3020.44 Processing comments.
(a) Application. The USDA awarding agency shall provide a copy of
the award application to all affected entities either through the SPOC
in States where a process has been established or to each entity
directly in non-SPOC States.
(b) Comments. All comments on proposed awards shall be sent to the
USDA awarding agency and processed in accordance with this section
before the USDA awarding agency makes a final decision on the award.
(1) Comments shall be sent to the USDA awarding agency in the 30 or
60 days time period as required in Sec. 3020.42 (b)(1) or (2). If this
time expires or if all relevant substantive comments are favorable, the
USDA awarding agency may move to a final decision on the application
provided only that the action be documented in the award file.
(2) [Reserved]
(c) Opposition comments. If comments are in opposition to the
proposed award or request a substantive change to the award, the USDA
awarding agency shall make every effort to resolve the differences.
(1) In non-SPOC States, the USDA awarding agency shall notify each
commenter of agency's final decision. Other than documenting this
action in the award file, no further action is required on the part of
the USDA awarding agency.
(2) In SPOC States, if the USDA awarding agency and the SPOC
resolve their differences then the USDA awarding agency may move to a
final decision on the application provided only that the action be
documented in the award file.
(3) If the SPOC issues are not resolved then the process set out in
Sec. 3020.45 shall be followed.
Sec. 3020.45 Accommodation of intergovernmental concerns.
(a) When any issues raised by the SPOC in opposition to the award
are not resolved informally as set out in Sec. 3020.44, the USDA
awarding agency shall provide the SPOC with a written explanation of
the agency's reasons for not accepting the SPOC recommendations. The
USDA awarding agency may supplement the written explanation by also
providing the explanation to the SPOC by telephone, other
telecommunication, or other means. In any explanation the USDA awarding
agency shall inform the SPOC that:
(1) The SPOC has 10 days to respond to the agency's position. For
purposes of computing the waiting period, a SPOC is presumed to have
received written notification five days after the date of mailing of
such notification;
(2) The USDA awarding agency will not implement its decision during
this period.
(3) If the SPOC response is favorable or if no response is received
from the SPOC within the time set out in paragraph (a) (1) of this
section, the USDA awarding agency may proceed to a final decision on
the award with appropriate documentation to the file.
(b) When the SPOC does not accept the USDA awarding agency's
explanation, the SPOC may file an appeal to the Department by sending
written notification, including background information, to both the
agency and the OCFO within the time frame set out in paragraph (a) (1)
of this section.
(1) The OCFO will notify the appropriate Under or Assistant
Secretary and the Head of the USDA awarding agency and prepare the
disputed issue for presentation to the Secretary of Agriculture for
final decision.
(2) At any point prior to the Secretary of Agriculture's decision,
the parties to the dispute may resolve the issues and immediately
notify the OCFO. The OCFO will withdraw the request for a Secretarial
decision and notify the USDA awarding agency to proceed to final
decision on the award.
Sec. 3020.46 State plans.
The statutes authorizing some Federal programs require States to
submit plans before receiving awards.
(a) Such plans are subject to the requirements set out in Sec.
3016.11 of this chapter.
(b) If not inconsistent with law, a State may elect to submit for
review, without prior approval, a plan that:
(1) Consists of a State developed format, planning period, and
submission date;
(2) Consolidates two or more plans; or
(3) Was developed for the State's own purposes.
(c) The USDA awarding agency shall reject such plans only when they
fail to meet those Federal administrative or programmatic requirements
that are in statutes or codified regulations.
Sec. 3020.47 Waivers.
In an emergency, the Secretary of Agriculture may waive any
provision of this subpart E.
Subpart F--Definitions
Sec. 3020.50 Definitions and acronyms.
Approved budget means a budget (including any revised budget) that
has been approved in writing by the awarding agency. (See the
definition of ``budget'').
Audiovisual means a product containing visual imagery or sound or
both. Examples of audiovisuals are motion pictures, live or prerecorded
radio or television programs, slide shows, filmstrips, audio
recordings, and multimedia presentations. The term does not include the
placing of captions for the hearing impaired on films or videotapes not
originally produced for use by the hearing impaired.
Awarding agency means:
(1) The USDA agency, such as the Forest Service, making the award,
and
(2) For subawards, the recipient.
Budget means the recipient's financial expenditure plan approved by
the awarding agency to carry out the purposes of the Federally
supported project. The budget is comprised of both the Federal share
and any non-Federal
[[Page 41962]]
share of such plan and any subsequent authorized rebudgeting of funds.
For those programs that do not involve Federal approval of the non-
Federal share of costs the term budget means the financial expenditure
plan approved by the awarding agency including any subsequent
authorized rebudgeting of funds, for the use of Federal funds only. Any
expenditure charged to an approved budget consisting of Federal and
non-Federal shares is deemed to be supported by the agreement in the
same proportion as the percentage of Federal/non-Federal participation
in the overall budget.
Budget period means the period specified in the agreement during
which Federal funds awarded are authorized to be expended, obligated,
or firmly committed by the recipient for the purposes specified in the
agreement.
CFR means the Code of Federal Regulations.
Consultant means a person who gives advice or services for a fee,
but not as an employee. The term includes guest speakers when not
acting as employees of the party that engages them. Note that in
unusual cases it is possible for a person to be both an employee and a
consultant at the same time. (See Sec. 3020.20.)
Cost-sharing and matching each mean that portion of the allowable
costs not supported by the Federal Government including the value of
any third party in-kind contributions. (The terms cost-sharing and
matching, in this part, are synonymous.)
Department means the U. S. Department of Agriculture
Discretionary Federal agreements are ones which a Federal statute
authorizes but does not require USDA to award.
FDIC means the Federal Deposit Insurance Corporation.
Federal funds authorized means the total amount of Federal funds
obligated by the Federal Government for use by the recipient. This
amount is a limit on the total amount of money that the recipient is
entitled to receive from the Federal Government as a result of the
award.
GSA means the General Services Administration.
Local government means a local unit of government including
specifically, a county, municipality, city, town, township, local
public authority, school district, special district, intrastate
district, council of governments (whether or not incorporated as a
nonprofit corporation under State law), sponsor or sponsoring local
organization of a watershed project (as defined in 7 CFR 622.10), any
other regional or interstate government entity, or any agency or
instrumentality of a local government.
Mandatory or formula Federal agreements are ones which a Federal
statute requires USDA to award if the applicant meets specified
conditions.
Obligations mean the amounts of orders placed, contracts and
subgrants awarded, services received, and similar transactions during a
given period, which will require payment during the same or future
period.
OCFO means the Office of the Chief Financial Officer, which is an
organizational component in USDA reporting to the Secretary of
Agriculture, or any successor organizational unit.
OMB means the Office of Management and Budget in the Executive
Office of the President.
Publication means a book, periodical, pamphlet, brochure, flier, or
similar item, whether published by paper or electronic means.
Recipient means a State or local government, Federally recognized
Indian Tribe, institution of higher education, non-profit organization,
for profit organization, or other non-Federal organization such as, but
not limited to, community action agencies, research institutes,
educational associations, health centers, commercial organizations,
foreign or international organizations (such as agencies of the United
Nations) that are a party to or a subrecipient, or contractor or
subcontractor of a party to or subrecipient of a USDA agreement.
State means 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, the Republic of Palau, the Federated
States of Micronesia, the Republic of the Marshall Islands, or any
agency or instrumentality of a State. The term does not include local
governments.
Subaward means: (1) An award of money or property that:
(i) Is made under a USDA agreement by the recipient; and
(ii) Is made principally to accomplish a purpose of support or
stimulation rather than to establish a buyer-seller relationship
between the two parties.
(2) Any award by a recipient that meets that definition is a
subaward even if the parties to the award use some other label such as
grant, agreement, cooperative agreement, contract, allotment, or
delegation agreement. Also, if the award meets that definition, it is a
subaward whether or not the awarding agency is expected to be
substantially involved in its performance. However, the term subaward
does not include any type of relationship under an agreement excluded
from the scope of USDA agreements in Sec. 3020.2;
Termination of an award means permanent withdrawal or voluntary
relinquishment of the recipient's authority to obligate previously
awarded funds before that authority would otherwise expire. Termination
does not include:
(1) Withdrawal of the unobligated balance upon expiration of award;
(2) Refusal by the awarding agency to extend an award or to award
additional funds (such as refusal to make a competitive or
noncompetitive continuation, renewal, extension, or supplemental
award);
(3) Annulment, i.e., voiding of an award upon determination that
the award was obtained fraudulently or was otherwise illegal or invalid
from inception;
(4) Withdrawal of surplus Federal funds under a discretionary award
or any analogous withdrawal of funds by a recipient from a
subrecipient; or
(5) Withdrawal under a mandatory or formula USDA award of surplus
Federal funds authorized which the recipient will not obligate during
the fiscal year, or any analogous withdrawal of funds by a recipient
from a subrecipient.
Terms mean all rights and duties created by the award, whether by
statute, regulation, the award document or any other document.
Third party means, with respect to a USDA agreement, any entity
except:
(1) The Federal government,
(2) The recipient of the agreement, and
(3) Subrecipients under that agreement.
Third party in-kind contributions mean property or services
benefiting the USDA assisted project or program that are contributed by
third parties without charge.
Unobligated balance means the portion of Federal funds authorized
that has not been obligated by the recipient. It is calculated by
subtracting the Federal share of the recipient's cumulative obligations
from the cumulative Federal funds authorized.
USDA Agency means any USDA agency, office or comparable
organizational unit established by statute, by the President of the
United States, or by the Secretary of Agriculture.
[FR Doc. 03-17777 Filed 7-15-03; 8:45 am]
BILLING CODE 3410-90-P