[Code of Federal Regulations]

[Title 49, Volume 2]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR110.70]



[Page 68-69]

 

                        TITLE 49--TRANSPORTATION

 

   CHAPTER I--PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION, 

                      DEPARTMENT OF TRANSPORTATION

 

PART 110_HAZARDOUS MATERIALS PUBLIC SECTOR TRAINING AND PLANNING GRANTS

--Table of Contents

 

Sec. 110.70  Financial administration.



    (a) A State must expend and account for grant funds in accordance 

with State laws and procedures for expending and accounting for its own 

funds. Fiscal control and accounting procedures of the State, as well as 

its subgrantees and cost-type contractors, must be sufficient to:

    (1) Permit the preparation of reports required by 49 CFR part 18 and 

this part, including the tracing of funds provided for planning to a 

level of expenditure adequate to establish that at least 75 percent of 

the funds provided were made available to LEPCs for developing, 

improving, and implementing emergency plans; and the tracing of funds 

provided for training to a level of expenditure adequate to establish 

that at least 75 percent of the funds provided were made available for 

the purposes of training public sector employees employed or used by 

political subdivisions.

    (2) Permit the tracing of funds to a level of expenditure adequate 

to establish that such funds have not been used in violation of the 

restrictions and prohibitions of applicable statutes.

    (b) The financial management systems of Indian tribes and any 

subgrantees must meet the standards of 49 CFR 18.20, including the 

ability to trace funds provided for training to a level of expenditure 

adequate to establish that at least 75 percent of the



[[Page 69]]



funds provided were made available for the purposes of training public 

sector employees employed or used by political subdivisions.

    (c) Advances shall be made to States and Indian tribes consistent 

with 49 CFR part 18 and 31 CFR part 205. The Associate Administrator 

shall base these advances on demonstrated need, which will be determined 

on a case-by-case basis, considering such factors as State/Tribal budget 

constraints and reductions in amounts budgeted for hazardous materials 

activities. To obtain an advance, a State or Indian tribe must comply 

with the following requirements:

    (1) A letter from the Governor or Tribal leader or their designee is 

required specifying the extenuating circumstances requiring the funding 

advance for the grant;

    (2) The maximum advance request may not be more than $25,000 for 

each State or Indian tribe;

    (3) Recipients of advance funding must obligate those funds within 3 

months of receipt;

    (4) Advances including interest will be deducted from the initial 

reimbursement to the State or Indian tribe; and

    (5) The State or Indian tribe will have its allocation of current 

grant funds reduced and will not be permitted to apply for future grant 

funds until the advance is covered by a request for reimbursement. For 

example, if $25,000 is advanced for personnel costs, this advance would 

be deducted from the initial reimbursement in the year the advance was 

made.

    (d) To be allowable, costs must be eligible, reasonable, necessary, 

and allocable to the approved project in accordance with OMB Circular A-

87 and included in the grant award. Costs incurred prior to the award of 

any grant are not allowable. Recipient agencies are responsible for 

obtaining audits in accordance with the Single Audit Act of 1984 (31 

U.S.C. 7501), 49 CFR part 90, and OMB Circular A-128. Audits shall be 

made by an independent auditor in accordance with generally accepted 

government auditing standards covering financial and compliance audits. 

The Associate Administrator may audit a recipient agency at any time.



[Amdt. 110-1, 57 FR 43067, Sept. 17, 1992, as amended by 66 FR 45377, 

Aug. 28, 2001]