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Modification to Policy Guidance for 40 CFR Part 31
March 30, 2000
MEMORANDUM
SUBJECT: Modification to Policy
Guidance for 40 CFR Part 31
FROM: Bruce Feldman, Acting Division Director /s/
TO: Senior Resource Officials
Attached is a modification to our December 20, 1989 Policy Guidance for 40
CFR Part 31 concerning pre-award costs for state, local and tribal grantees.
The intent of this change is to make the EPA policy applicable to Part 31 grantees
consistent with those afforded to universities and non-profits under 40 CFR
30.25.
This revised policy is effective for all new grants awarded on or after April 1, 2000 and will generally eliminate the need to obtain pre-award deviation approval from the headquarters Grants Administration Division.
Please note the reimbursement of pre-award costs should be considered on a case-by-case basics. The Agency is not obligated to reimburse recipients for pre-award costs and recipients incur pre-award costs at their own risk.
Please share this guidance with your respective program staff and colleagues. If you have questions please contact me on (202) 564-5308 or Nancy Duvall of our Policy, Information and Training Branch at (202) 564-5362.
Attachments
cc: Grants Management Offices
(Regions I - X and Headquarters)
Grants Customer Relations Council
MODIFICATION TO PART 31 POLICY GUIDANCE
Effective Date: April 1, 2000
Can a recipient be reimbursed for pre-award costs - 40 CFR 31.23?
Yes. Recipients may incur pre-award costs 90 calendar days prior to award provided they include such costs in their application, the costs meet the definition of pre-award costs and are approved by the EPA Project Officer and EPA Award Official. The definition of pre-award costs are those costs incurred prior to the effective date of the award directly pursuant to the negotiation and in anticipation of the award where such costs are necessary to comply with the proposed delivery schedule or period of performance and are in conformance with the appropriate statute and cost principles. The approval of pre-award costs should be reflected in the budget period on the assistance agreement and if applicable, under a term and condition of the assistance agreement. Pre-Award costs incurred more than 90 calendar days prior to award require the approval of the EPA Award Official. Recipients incur pre-award costs at their own risk (i.e., EPA is under no obligation to reimburse such costs if for any reason the recipient does not receive an award or if the award is less then anticipated and inadequate to cover such costs).
For Continuation awards subject to 40 CFR 35.141, the Award Official can reimburse applicants for those costs incurred from the beginning of the budget period provided such costs are contained in the application and that the application was submitted before the expiration of the prior budget period. If such is not the case, the recipient must request a deviation from 40 CFR 35.141.
Construction Grants will continue to be subject to the pre-award requirements of 40 CFR 35.2118(a) and are unaffected by this guidance.