OMB Circular A-110

OMB  Circular A-110:  Uniform Administrative Requirements for Grants & Agreements with Institutions of Higher Educations, Hospitals and Other Non-Profit Organizations.

A-110 only applies to grants and cooperative agreements.  It does not apply to contracts.

Purpose: This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and other non-profit organizations.

Equipment:
Title to equipment acquired by a recipient with Federal funds shall vest in the recipient.

The recipient shall not use equipment acquired with Federal funds to provide services to non-Federal outside organizations for a fee that is less than private companies charge for equivalent services.

The recipient shall use the equipment in the project or program for which it was acquired as long as needed, whether or not the project or program continues to be supported by Federal funds and shall not encumber the property without approval of the Federal awarding agency. When no longer needed for the original project or program, the recipient shall use the equipment in connection with its other federally-sponsored activities, in the following order of priority: (i) Activities sponsored by the Federal awarding agency which funded the original project, then (ii) activities sponsored by other Federal awarding agencies.

During the time that equipment is used on the project or project for which it was acquired, the recipient shall make it available for use on other projects or programs if such other use will not interfere with the work on the project or program for which the equipment was originally acquired. First preference for such other use shall be given to other projects or programs sponsored by the Federal awarding agency that financed the equipment; second preference shall be given to projects or programs sponsored by other Federal awarding agencies. If the equipment is owned by the Federal Government, use on other activities not sponsored by the Federal Government shall be permissible if authorized by the Federal awarding agency. User charges shall be treated as program income.

When acquiring replacement equipment, the recipient may use the equipment to be replaced as trade-in or sell the equipment and use the proceeds to offset the costs of the replacement equipment subject to the approval of the Federal awarding agency.

The recipients' property management standards for equipment acquired with Federal funds and federally-owned equipment shall include all of the following.

Equipment records shall be maintained accurately and shall include the following information.

• A description of the equipment.
• Manufacturer's serial number, model number, Federal stock number, national stock number, or other identification number.
• Source of the equipment including the award number.
• Whether title vests in the recipient or the Federal Government
• Acquisition date 
• Information from which one can calculate the percentage of Federal participation in the cost of the equipment (not applicable to equipment furnished by the Federal Government)
• Location and condition of the equipment and the date the information was reported.
• Unit acquisition cost.
• Ultimate disposition data, including date of disposal and sales price for the method used to determine current fair market value where a recipient compensates the Federal awarding agency for its share.

Equipment owned by the Federal Government shall be identified to indicate Federal ownership.
A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years.
A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft of equipment shall be investigated and fully documented; if the equipment was owned by the Federal Government, the recipient shall promptly notify the Federal awarding agency.
When the recipient  no longer needs the equipment, the equipment may be used for other activities in accordance with the following standards. For equipment with a current fair market value of $5000 or more, the recipient may retain the equipment for other uses provided that compensation is made to the original Federal awarding agency or its successor.

Supplies and other expendable property:
Title to supplies and other expendable property shall vest in the recipient upon acquisition. If there is a residual inventory of unused supplies exceeding $5000 in total aggregate value upon termination or completion of the project or program and the supplies are not needed for any other federally-sponsored project or program, the recipient shall retain the supplies for use on non-Federal sponsored activities or sell them, but shall, in either case, compensate the Federal Government for its share.

Intangible Property.
The recipient may copyright any work that is subject to copyright and was developed, or for which ownership was purchased under an award.  The Federal awarding agencies reserve a royalty-free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the work for Federal purposes, and to authorize others to do so.

The Federal Government has the right to:

• obtain, reproduce, publish or otherwise use the data first produced under an award; and
• authorize others to receive, reproduce, publish or otherwise use such data for Federal purposes.

In addition, in response to a Freedom of Information Act (FOIA) request for research data relating to published research findings produced under an award that were used by the Federal Government in developing an agency action that has the force and effect of law, the Federal awarding agency shall request, and the recipient shall provide, within a reasonable time, the research data so that they can be made available to the public through the procedures established under the FOIA.

Procurement Procedures.
All recipients shall establish written procurement procedures.  These procedures shall provide for, at a minimum:

• Recipients avoid purchasing unnecessary items.
• Where appropriate, an analysis is made of lease and purchase alternatives to determine which would be the most economical and practical procurement for the Federal Government
• Solicitations for goods and services provide:
• a clear and accurate description of technical requirements, etc.
• Positive efforts shall be made by recipients to utilize small businesses, minority-owned firms, and women's business enterprises, whenever possible. 

Procurement records. Procurement records and files for purchases in excess of the small purchase threshold shall include the following at a minimum: (a) basis for contractor selection, (b) justification for lack of competition when competitive bids or offers are not obtained, and (c) basis for award cost or price.

Reports and Records.
Monitoring and reporting program performance.
Recipients are responsible for managing and monitoring each project, program, subaward, function or activity supported by the award.  Recipients shall monitor subawards to ensure subrecipients have met the audit requirements ...
The Federal awarding agency shall prescribe the frequency with which the performance reports shall be submitted.  Except as provided in paragraph ... performance reports shall not be required more frequently than quarterly or, less frequently than annually.  Annual reports shall be due 90 calendar days after the grant years; quarterly or semi-annual reports shall be due 30 days after the reporting period.  The Federal awarding agency may require annual reports before the anniversary dates of multiple year awards in lieu of these requirements.  The final performance reports are due 90 calendar days after the expiration or termination of the award.

Recipients shall not be required to submit more than the original and two copies of performance reports.

Recipients shall immediately notify the Federal awarding agency of developments that have a significant impact on the award-supported activities. Also notification shall be given in the case of problems, delays, or adverse conditions which materially impair the ability to meet the objectives of the award. This notification shall include a statement of the action taken or contemplated, and any assistance needed to resolve the situation.

Financial Reporting.
The Federal awarding agency shall determine the frequency of the Financial Status Report for each project or program considering the size and complexity of the particular project or program.  However, the report shall not be required more frequently than quarterly or less frequently than annually.  A final report shall be required at the completion of the agreement.

The Federal awarding agency shall require recipients to submit the SF-269 or SF-269A (an original and no more than two copies) no later than 30 days after the end of each specified reporting period for quarterly and semi-annual reports, and 90 calendar days for annual and final reports.  Extensions of reporting due dates may be approved by the Federal awarding agency upon request of the recipient.

Retention and access requirements for records. 
Financial records, supporting documents, statistical records, and all other records pertinent to an award shall be retained for a period of three years from the date of submission of the final expenditure report or, for awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, as authorized by the Federal awarding agency.

Closeout procedures.
Recipients shall submit, within 90 calendar days after the date of completion of the award, all financial, performance, and other reports as required by the terms and conditions of the award. The Federal awarding agency may approve extensions when requested by the recipient.