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Electronic Code of Federal Regulations

e-CFR Data is current as of December 17, 2014

Title 45Subtitle BChapter XXVPart 2551Subpart I → §2551.93

Title 45: Public Welfare
Subpart I—Application and Fiscal Requirements

§2551.93   What are grants management requirements?

What rules govern a sponsor's management of grants?

(a) A sponsor shall manage a grant in accordance with:

(1) The Act;

(2) Regulations in this part;

(3) 45 CFR Part 2541, “Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments”, or 45 CFR Part 2543, “Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations';

(4) The following OMB Circulars, as appropriate A-21, “Cost Principles for Educational Institution”, A-87, “Cost Principles for State, Local and Indian Tribal Governments”, A-122, “Cost Principles for Non-Profit Organizations”, and A-133, “Audits of States, Local Governments, and Other Non-Profit Organizations” (OMB circulars are available electronically at the OMB homepage www.whitehouse.gov/WH/EOP/omb); and

(5) Other applicable Corporation requirements.

(b) Project support provided under a Corporation grant shall be furnished at the lowest possible cost consistent with the effective operation of the project.

(c) Project costs for which Corporation funds are budgeted must be justified as being necessary and essential to project operation.

(d) Volunteer expense items, including transportation, meals, recognition activities and items purchased at the volunteers' own expense and which are not reimbursed, are not allowable as contributions to the non-Federal share of the budget.

(e) Costs of other insurance not required by program policy, but maintained by a sponsor for the general conduct of its activities are allowable with the following limitations:

(1) Types and extent of and cost of coverage are according to sound institutional and business practices;

(2) Costs of insurance or a contribution to any reserve covering the risk of loss of or damage to Government-owned property are unallowable unless the government specifically requires and approves such costs; and

(3) The cost of insurance on the lives of officers, trustees or staff is unallowable except where such insurance is part of an employee plan which is not unduly restricted.

(f) Costs to bring a sponsor into basic compliance with accessibility requirements for individuals with disabilities are not allowable costs.

(g) Payments to settle discrimination allegations, either informally through a settlement agreement or formally as a result of a decision finding discrimination, are not allowable costs.

(h) Written Corporation approval/concurrence is required for the following changes in the approved grant:

(1) Reduction in budgeted volunteer service years.

(2) Change in the service area.

(3) Transfer of budgeted line items from Volunteer Expenses to Support Expenses. This requirement does not apply if the 80 percent volunteer cost reimbursement ratio is maintained.

[64 FR 14115, Mar. 24, 1999, as amended at 69 FR 20830, Apr. 19, 2004]

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