[Code of Federal Regulations]

[Title 14, Volume 3]

[Revised as of January 1, 2006]

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

[CITE: 14CFR152.209]



[Page 136-137]

 

                     TITLE 14--AERONAUTICS AND SPACE

 

CHAPTER I--FEDERAL AVIATION ADMINISTRATION, DEPARTMENT OF TRANSPORTATION 

                               (CONTINUED)

 

PART 152_AIRPORT AID PROGRAM--Table of Contents

 

                 Subpart C_Funding of Approved Projects

 

Sec. 152.209  Grant payments: General.



    (a) An application for a grant payment is made on a form and in a 

manner prescribed by the Administrator, and must be accompanied by any 

supporting information, that the FAA needs to determine the allowability 

of any costs for which payment is requested.

    (b) Methods of payment. Grant payments to sponsors and planning 

agencies will be made by--

    (1) Letter of credit;

    (2) Advance by Treasury check; or

    (3) Reimbursement by Treasury checks.

    (c) Letter of credit funding. Letter of credit funding may not be 

used unless--

    (1) There is or will be a continuing relationship between a sponsor 

or planning agency and the FAA for at least a 12-month period and the 

total amount of advances to be received within that period is $120,000 

or more;

    (2) The sponsor or planning agency has established or demonstrated 

to the FAA the willingness and ability to establish procedures that will 

minimize the time elapsing between the transfer of funds and their 

disbursement by the grantee; and

    (3) The sponsor's or planning agency's financial management system 

meets the standards for fund control



[[Page 137]]



and accountability prescribed in Attachment G of Office of Management 

and Budget Circular A-102 (42 FR 45828).

    (d) Advance by Treasury check. Advance of funds by Treasury check 

may be made subject to the following conditions--

    (1) The sponsor or planning agency meets the requirements of 

paragraphs (c) (2) and (3) of this section;

    (2) The timing and amount of cash advances are as close as 

administratively feasible to actual disbursements by the sponsor or 

planning agency; and

    (3) Except as provided in paragraph (e) of this section, in the case 

of an airport development project, advance payments do not exceed the 

estimated project costs of the airport development expected to be 

accomplished within 30 days after the date of the sponsor's application 

for the advance payment.

    (e) No advance payment for airport development projects may be made 

in an amount that would bring the aggregate amount of all partial 

payments to more than the lower of the following:

    (i) 90 percent of the estimated United States' share of the total 

estimated cost of all airport development included in the project, but 

not including contingency items; or

    (ii) 90 percent of the maximum obligation of the United States as 

stated in the grant agreement.

    (f) Reimbursement by Treasury check. Reimbursement by Treasury check 

will be made if the sponsor or planning agency does not meet the 

requirements of paragraphs (c) (2) and (3) of this section.

    (g) Withholding of payments. Payment to the sponsor or planning 

agency may be withheld at any time during the grant period under the 

following circumstances:

    (1) The sponsor or planning agency has failed to comply with the 

program objectives, grant award conditions, or Federal reporting 

requirements.

    (2) The sponsor or planning agency is indebted to the United States 

and collection of the indebtedness will not impair accomplishment of the 

objectives of any grant program sponsored by the United States.

    (3) The sponsor or planning agency has withheld payment to a 

contractor to assure satisfactory completion of work. Payment will be 

made to the sponsor or planning agency when it has made final payment to 

the contractor, including the amounts withheld.

    (h) Labor violations. If a contractor or a subcontractor fails or 

refuses to comply with the labor provisions of a contract under a grant 

agreement for an airport development project, further grant payments to 

the sponsor are suspended until--

    (1) The violations are corrected;

    (2) The Administrator determines the allowability of the project 

costs to which the violations relate; or

    (3) If the violations consist of underpayments to labor, the sponsor 

furnishes satisfactory assurances to the FAA that restitution has been 

or will be made to the affected employees.

    (i) Excess payments. Upon determination of the allowability of all 

project costs of a project, if it is found that the total of grant 

payments to the sponsor or planning agency was more than the total 

United States share of the allowable costs of the project, the sponsor 

or planning agency shall promptly return the excess to FAA.