[Code of Federal Regulations]
[Title 24, Volume 4]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR1006.370]

[Page 804]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 1006--NATIVE HAWAIIAN HOUSING BLOCK GRANT PROGRAM--Table of Contents
 
                     Subpart D--Program Requirements
 
Sec. 1006.370  Federal administrative requirements.

    (a) Governmental entities. The DHHL and any governmental contractor 
receiving NHHBG funds shall comply with the requirements and standards 
of OMB Circular No. A-87, ``Cost Principles for State, Local and Indian 
Tribal Governments,'' and with 24 CFR part 85 ``Uniform Administrative 
Requirements for Grants and Cooperative Agreements to State, Local and 
Federally Recognized Indian Tribal Governments.''
    (b) Non-profit organizations. The requirements of OMB Circular No. 
A-122, ``Cost Principles for Non-profit Organizations,'' and the 
requirements of 24 CFR part 84, ``Uniform Administrative Requirements 
for Grants and Agreements with Institutions of Higher Education, 
Hospitals, and Other Non-profit Organizations,'' apply to contractors 
receiving NHHBG funds that are non-profit organizations that are not 
governmental contractors.
    (c)(1) With respect to the applicability of cost principles, all 
items of cost listed in Attachment B of OMB Circular A-87 which require 
prior Federal agency approval are allowable without the prior approval 
of HUD to the extent that they comply with the general policies and 
principles stated in Attachment A of this circular and are otherwise 
eligible under this part, except for the following:
    (i) Depreciation methods for fixed assets shall not be changed 
without specific approval of HUD or, if charged through a cost 
allocation plan, the Federal cognizant agency.
    (ii) Fines and penalties are unallowable costs to the NHHBG program.
    (2) In addition, no person providing consultant services in an 
employer-employee type of relationship shall receive more than a 
reasonable rate of compensation for personal services paid with NHHBG 
funds. In no event, however, shall such compensation exceed the 
equivalent of the daily rate paid for Level IV of the Executive 
Schedule.
    (d) OMB Circulars referenced in this part may be obtained from 
www.whitehouse.gov/omb/circulars/index.html; telephone; (202) 395-3080.