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HomeMy WebLinkAbout1996-152 Grant Award - COPS . .., I / , ~(Q)[pJW q b-/52 u. S. Department of Justice Q(fice Qf Community Oriented Policing Services (}J COPS Universal Hiring Award Grant #: 96UMWX1159 ORI #: OR01501U Vendor#: 93-6002117 Applicant Organization's Legal Name: Ashland Public Schools and Ashland Police Dept. Law Enforcement Executive Name: Chief Gary Brown Address: 1155 E. Main St. City, State and Zip Code: Phone Number: (541) 488-2211 Government Executive Name: Ashland, OR 97520 Fax Number: (541) 488-5351 Administrator Brian Almquist 20 E. Main St. Address: City, State and Zip Code: Phone Number: (541) 488-6002 Ashland, OR 97520 Fax Number: (541) 488-5351 Award start date: December 1, 1995 Award end date: November 30, 1998 Award Amount: $75,000.00 Number of Officers: Full time: 1 Part time: 0 6Mt?'1 By signing this award, the signatory official is agreeing to abide by the Conditions of Grant A ward found on the revers . de of this document: I kv~ AUGI51~ Date GARY E. PR0\.JN , Ch i ef of Po 1 ice Typed Name and Title of Official ? ~~Z-/fl 6 I Date CONDITIONS OF GRANT AWARD 1. The funding under this project is for the payment of SALARIES AND APPROVED FRINGE BENEFITS for three years for sworn entry level career law enforcement officers, lateral transfers, or rehired officers. Any portion of salaries above entry level must be provided for by the grant recipient. Overtime, training, weapons, communication equipment and vehicles cannot be paid for with COPS funding. 2. Prior to withdrawing funds under this award, .the recipient must provide the Control Desk, Office of the Comptroller, with the recipient organization's fiscal year and the name of the recipient organization's cognizant Federal agency. 3. COPS Universal Hiring grant funds must be used to hire one or more new, additional career law enforcement officers, beyond the number of officers that would be hired or employed by the grantee in the absence of the grant. Unless authorized in writing by the COPS Office, grant funds may not be applied to the salary or benefits of an officer hired by a grantee prior to the Award Start Date listed on the front of this document. 4. Your agency is expected to make a good faith effort to retain the positions funded by COPS Universal Hiring grant funds at the conclusion of the grant, in accordance with the retention plan contained in your grant application. 5. For grants of $500,000 or more, the grantee acknowledges that failure to submit an acceptable Equal Employment Opportunity Plan (if grantee is required to submit one under 28 CFR 42.302) that is approved by the Office of Justice Programs, Office for Civil Rights, is a violation of its Assurances and may result in the suspension of the drawdown of funds. For grants under $500,000, the grantee must submit a completed EEOP Certification form and return it to the Office of Justice Programs, Office for Civil Rights within 120 days of the grant award. 6. In order to assist the COPS Office in the monitoring of the award, your agency will be responsible for submitting semi-annual progress reports and quarterly financial reports. As those reports become due, your Grant Advisor will provide you with the forms and information necessary for compliance. 7. Requests for extensions, without additional funding, of the grant award period should be submitted in writing no sooner than two years after the official start date of the award to your Grant Advisor. 8. Officers funded under this grant may only be involved in activities or perform servic~s that exclusively benefit your agency and the population that it serves. If your agency provides these officers to another agency through a contractual arrangement, your agency is responsible for ensuring that this arrangement is in compliance with the conditions of your grant. 9. The COPS Office may conduct a national evaluation of the Community Oriented Policing Services (COPS) program. The grantee agrees to cooperate with the evaluators. 10. The Grantee agrees to abide by the terms, conditions and regulations as found in the COPS Universal Hiring Grant Manual. I I. The recipient agrees to complete and keep on file, as appropriate, an Immigration and Naturalization Service Employment Eligibility Verification Form (1-9). This form is to be used by recipients of federal funds to verify that persons are eligible to work in the United States. F ILE COpy ACH VENDOR/MISCELLANEOUS PAYMENT ENROLLMENT FORM OMB No. '6'O~ Expiration Dete 06/30193 This form is used for Automated Clearing House (ACH) payments with an addendum record that contains payment- related information processed through the Vendor Express Program. Recipients of these payments should bring this information to the attention of their financial institution when presenting this form for completion. PRIVACY ACT STATEMENT The following information is provided to comply with the Privacy Act of 1974 (P.L 93-579). All infor- mation collected on this form is required under the provisions of 31 U.S.C. 3322 and 31 CFR 210. This information will be used by the Treasury Department to transmit payment data, by electronic means to vendor's financial institution. Failure to provide the requested information may delay or prevent the receipt of payments through the Automated Clearing House Payment System. AGENCY INFORMATION FEDERAL PROGRAM AGENCY ACH FORMAT: Dcco+ DCTX DCTP PAYEE/COMPANY INFORMATION NAME ADDRESS '1 7 5 L"D I 'Io;;/. CONTACT PE:\SON NAME: bo..'" r'" FINANCIAL INSTITUTION INFORMATION NAME: I I /I..JGU\Cc~ i3 ~--) /'. ~ 'I -, ft4:r- J I .':)'-..) IV 0-- J1 ,.... t'Y.:J . -<-. ADDRESS: {, q i \ C. t-t.... /) ,5 k\ (I... 11 cD , 0 f2:- Q-7C.ZO .: ,I --' ,.-' TELEPHONE NUMBER: !5"t/ I) '8"2 -! 5;;. -;;L ACH COORDINATOR NAME: T \. Co...- ~ \ Y1 NINE-DIGIT ROUTING TRANSIT NUMBEl'l: e_:S / 3 6 o o .,g ~..Q. .j; J . ,. l!t,dl((."~ LOCKBOX NUMBER: C 7 I - o(~ ! ~~ -. I' ~ - J. b .L_.. TYPE OF ACCOUNT: ~HECKING OSAVINGS SIGNATURE ANO TITLE OF AUTHORIZEO OFFICIAL: (Could be the nm! ~, ACH Coordinator) o LOCKBOX TELEPHONE NUMBER, NSN c . (54/ I Yo?3~.1 J Sill 102 J:"_Je~~~Ab.),'" Dl.~.~~~"1 of TrNSuP( J) use J:322j 31] C~A 210 ()t.(B,Ar" ,.. ..",._...~ r_~....... U.s. Department of Justice F Il E COP V COPS Universal Hiring Program I lIOO Vermont Avenue, NW COPS PAYMENT SELECTION S Washington, DC 20530 -- Please relect ONE oftbe following payment methods. place an aaency identifying label in the ~ right hand comer of this form and mum this form to: COPS Fiscal Services Control Desk, 8th Floor. 1100 Vermont Avmuc, NW. W.cMni1oD D.C. 20S30. For more information, please met to PIle II of your Universal HiriDa Prosram GlInt OwDer'. Manual. COPS COUPONS ~ Ya. I would like to use COPS COUPONS as my method of payment. _Please complete this information uyou will use the COPS COUPONS ,method of payment. I. Do you waat quarterly or moathly coupons? Q L>- <, . -\ (( \:; b \ vJ '- t. I" L1 < 5 1;3 7CJ.2D ~ 5 3~%0 / '( 2. Ho.' oftea do your ofticen let paid'! 5 /Cl;.3otJ \( /2-h-q(P"f @) (or) No 3. Ho,,' mucb II tbe total cross pay (be(ore aay deductioas) lor the omcer (or eacb o(bislber pay periods'! Based oa yoar approved budget, wbat 11 the total dollar amount tbat the COPS Office wW pay lor daat ofticer (or year oae o( your craat? Based oa your approved badget, what is the total doUar . amount tbat yoar ageaC')' will pal" lor that officer lor year oae o(your &nnt'! ~. 5. 6. When did you, or will you, hire your COPS UHP officer? 7. Do you want your (edenl moaty to be directly deposited? (Remember to complete ACH (orm) COPS REQUEST FOR PA VMENT FORM (Revised H-3) l!J Yes, I would like to use this fonn as my method of payment , Letter of Credit System (LOCES) LJ Yes, I would like to use LOCES as my method of payment. in/or.mation provided in this document is accurate 10 Ihe best of my .knowledge Cj-?-tJ0 nate GAR\.{ E BRoWN (Sl+1)4-~2-S:211 Printed name. title. and phone nwnber U iJ bA rtDGGP\tf I, O~tiSEE '- ,,-, ^."-"'- ~'~.D PDUcE DEPT Granlee Organ iz.al ion '5 lt~al Name Importa.'dt:N~#i~c During the review of your COPS Universal Hiring Program budget information. the Office of the Comptroller, Office of Justice Programs or the COPS Office amended the budget information submitted with your application. These adjustments ajJect your budget summary. The COPS Office modified your budget swnmary to reflect these changes and to meet legislative requirements. F I LEe 0 P Y Please examine the Revised Budget S~ary below. COPS Office staff have changed the Federal Share, the local share or both shares. If you have anyquestions, please contact your gran! advisor at the COPS Office. Thankyoufor your attention to this matter. OR!: OR01501 Organi71ltion: Ashland Public Schools and Ashlan- -a P l' ... o lce.DepL Revised Budget Summary Under this COPS Universal Hiring Grant, your department plans to: Hire new entry level officer(s) Rehire . former officer(s) Hire 1lateraI entry officer(s) Hire part time officer(s) The total three year cost for salaries and benefits for all of the officers requested is: $173,070 The total amount of federal funds requested is: . $75,000 Under COPS grants, the Federal share of total salaries and benefits must decrease each year leading to full local funding by the fowth year of officers' employment. At the same time your local share must increase each year. Furthermore, Federal funds per officer cannot exceed 75% of three years salary and benefits, or $75,000, whichever is less. We have prepared the following table for your review. If these amounts do not meet your needs, please provide revised figures in the blank table below. 1bank you. Federal Share (must decrease): Local Share (must Increase): Total SalarieslBenefits: Year 1: $35,861 $19,309 $55,170 Year 2: Year 3: Totals: $24,214 $33,438 $57,652 ,$14,925 ..). $45,323 $60,248 $75,000 $98,070 $173,070 Year 1: Year 2: Year 3: Totals: Federal Share (must decrease): Local Share (must Increase): Total SalarieslBcoefits: me undersigned agrees to adhere to the financial commitments outlined above.. ~~e (typed) of Authorized Official: Title: >ignature: Date: ,.' . --"- . . fILE COpy ing Program wner's Manual ;' .:1),,\;t... I /, I;; Office of Community Oriented Policing Services U.S. Department of Justice TABLE OF CONTENTS Section Page Getting Started Glossary of Terms 3 4 I. GRANT ACCEPTANCE, TERMS AND CONDITIONS...................... 6 THE A WARD P A GE.................................................................................................... 6 The modified award page GRANT CO ND ITI 0 NS................................................................................................. 7 Reasons for conditions Review of each condition ACCEPTING THE AWARD....................................................................................... 15 Who should sign the awardfor my agency? When do the grant materials need to be returned? What are the specific rules regarding termination of grant funding? How are changes to the grant made.? Other questions about accepting the grant? II. A CCESS IN G G RANT FUNDS.................................................................... 18 P A YM ENT ME THO DS. ......................, ......................................................................... 1 8 COPS Coupons COPS Request for Payment (Revised H-3) LaCES - electronic payment ADDITIONAL PA YMENT QUESTIONS................................................................... 23 Can we earn interest on our grantfunds? III. THE MAT CR...... .......... .... .... ............ ...... ............... ..... ........ .............. .... ........... 24 SOURCES FOR MATCH REQUIREMENTS FEDERAL SHARE DECREASES AS LOCAL SHARE INCREASES WAIVER OF THE LOCAL MATCH REQUIREMENT IV. FINANCIAL RECORD MAINTENANCE............................................... 26 WHA T ACCOUNTING SYSTEMS DO WE NEED?................................................. 26 What items should be kept? How long should documents be kept? What if we have more than one grant.? Who may access our records.? Section Page v. FEDERAL A UD IT REQ UlREMENTS................................................. 28 WHO MUST HA VE AN AUDIT DONE?................................................................... 28 WHAT ARE THE AUDIT REPORTING REQUIREMENTS?.................................. 29 What is the due date of audit reports? Where are the audit reports to be submitted? What if there are problems with our audit report? How can our agency receive technical assistance with audit requirements? What are the consequences of not complying with audit requirements? VI. RE PO R T S........ ........ ............... ... ............................... ............. .... ...... ......... 31 PROGRAM PROGRESS REPORTS........................................................................... 31 How often will progress reports be requested? What kind of information will be requested? How and when do we get the forms for these reports? FINANCIAL STATUS REPOR TS................................................................................ 31 How will grantfunds be monitored? Under COPS Coupons Under the COPS Request for Payment Under LaCES HO W TO REPORT VIOLA TIONS............................................................................... 32 (FRAUD, WASTEANDABUSE) VII. WHEN THE GRANT PERIOD HAS ENDED...................................... 33 GRANT CLOSEOUT.................................................................................................... 33 VIII. AP PEND ICE S..... .................. ......... ... ............. ......... ...... .......... .... ..................... 3 5 A. SOURCE DOCUMENTS B. ASSURANCES AND CERTIFICATIONS C. REGIONAL AUDIT OFFICES GETTING STARTED Congratulations on receiving a grant from the Office of Community Oriented Policing Services (COPS). Your grant program, COPS Universal Hiring, provides funding directly to local, State and Tribal jurisdictions for salaries and benefits of community oriented officers. This COPS Universal Hiring Grant Owner's Manual will assist you with the administrative and financial matters associated with your grant. It was developed by the COPS Office in conjunction with the Office of the Comptroller, Office of Justice Programs, to ensure that COPS grantees clearly understand and meet the requirements of their grants. Please do not hesitate to call the COPS Office at 1-800-421-6770 if you need assistance with the implementation of any portion of your grant. Thank you for providing us with the opportunity to wor~ in partnership with your community. GLOSSARY OF TERMS Allowable costs- Allowable costs are what this grant funds. Universal Hiring provides for the salaries and approved fringe benefits for three years for sworn entry level, lateral transfer, or rehired officers. Upon review of your submitted budget, any non-allowable costs were removed and your total budget amount was revised. A copy of the budget clearance memorandum from the Office of the Comptroller, Officer of Justice Programs, stating these revisions is included in your package. Only entry level salary and fringe benefit costs are allowable costs under the grant funds. Overtime, training, weapons, communication equipment, uniforms and vehicles are not allowable costs. Cognizant Federal Agency- Your cognizant Federal agency is generally the Federal agency that provides you with the most Federal money. If this is the first Federal grant that your organization has received, the U.S. Department of Justice (DOJ) is your cognizant Federal agency. Your audit reports should be sent to the Department of Justice's Regional Audit Offices. A list of the Department of Justice's Regional Audit Offices is provided in Appendix C. COPS Office- The Office of Community Oriented Policing Services (COPS) is your "grantor agency" for your Universal Hiring grant. The COPS Office is responsible for administering your grant for the entire grant period. You can reach the COPS Office at 1-800-421-6770. Grant number- This number is in this format: 95-UL-WX-0000 or 95-UM-WX-0000 for grants awarded in FY 1995 and 96-UL-WX-0000 or 96-UM-WX-OOOO for grants awarded in FY 1996. It can be found in the upper left hand of your grant award. It is assigned by the Office of the Comptroller and you should use it when corresponding with that Office. This will aid the Comptroller's staff in determining to which grant you are referring. Matchingfunds- Under the COPS Universal Hiring program, unless a waiver has been granted because of severe fiscal distress, the COPS Office provides up to 75% of the entry level salaries and fringe benefits for a new or rehired law enforcement officer over three years. The maximum that the COPS Office can pay per officer for that three year time period is $75,000. COPS Universal Hiring grantees are responsible for at least 25% of the total cost of salaries and fringe benefits, The match must be a cash match. See "The Match", section III of this Manual for more information. Obligation of funds- Federal funds are considered "obligated" when the grant award document is signed by the Director of the COPS Office or his delegated official. Funds are reserved against the grant until all the grant monies are spent or refunded to the Federal government. Local funds are considered "obligated" when the salaries and benefits have been paid or will be paid for work completed by the officer(s) during a previous pay period. Office of the Comptroller- The Office of the Comptroller handles your financial and budgetary needs related to the COPS grant. You have a financial analyst assigned to your state from that Office who is available to answer any questions that you may have concerning the financial aspects of your COPS Universal Hiring grant. To identify your financial analyst, refer 4 to the budget clearance memorandum enclosed in your award package. OR! numbeT- (Originating Agency Identifier) This number is assigned by the FBI and it is your agency's identifier. The first two letters are your state abbreviation, the next three numbers are your county's code, and the final two numbers identify your jurisdiction within your county. It can be found on your grant award document. When you contact the COPS Office with a question, you can use the OR! number or your grant number and we will be able to assist you. The Public Safety Partnership and Community Po/icing Act of 1994- The COPS Office is specifically charged with fulfilling the mandates of this Law. The purposes of the law are to: . Substantially increase the number of law enforcement officers interacting with members of the community; . Provide additional and more effective training to law enforcement officers to enhance their problem solving, service and other skills needed in interacting with members of the community; . Encourage the development and implementation of innovative programs to permit members of the community to assist law enforcement agencies in the prevention of crime; and; . Encourage the development of new technologies to assist law enforcement agencies in reorienting the emphasis of their activities from reacting to crime to preventing crime. Supplanting - For the purpose of your COPS grant, supplanting means replacing state or local funds which otherwise would have been spent on law enforcement purposes with Federal COPS funds. You are prohibited from supplanting throughout the three year grant period, which means that you may not use COPS funds to pay for any sworn officers (full-time, part-time, reserve, or other paid officer positions) who otherwise would have been employed with state or local funds regardless of the COPS program. COPS funds must instead be used to supplement your law enforcement budget. As a general matter, in assessing the presence of supplanting, throughout the grant period we will expect you to hire new officers at a level consistent with recent historical practice and to take positive steps to fill all vacancies in your sworn personnel resulting from attrition. For further information, please contact the COPS Office Legal Division at 202-514- 3750. Ven numbeT- (EIN number) This is your agency's nine-digit Federal tax identification number. Your accounting/bookkeeping department should have this number. 5 I. GRANT ACCEPTANCE, TERMS AND CONDITIONS In order to officially begin your grant, you will need to review the Award Page and Conditions, sign the Award or Modified Award Page and return it to: COPS Universal Hiring Program Office of Community Oriented Policing Services (COPS) 1100 Vennont Ave., N.W. Washington, D.C. 20530 You will be able to draw down grant funds when: 1. The COPS Office approves your budget; 2. You sign your award page or modified award page and return it to the COPS Office; 3. You select a payment method on the enclosed Payment Selection Sheet and return it to the COPS Office; and, finally, 4. After steps one through three are completed, you submit a completed Request for Payment (revised H-3) form, elect COPS Coupons or begin drawing down using LOCES. See Section II "Accessing Your Grant Funds" for more information. What is the A WARD PA GE? The A ward Page is the one-page, double-sided document indicating your official grant funding amount, the award number, the award date, and the grant time period, In some instances, by the time you review this Manual, you have already received the Award Page. In other cases, the Award Page will accompany this Manual. The Award Page and the Modified Award Page also contain pre-printed information of your law enforcement and government officials' names and addresses. If this information is incorrect or has changed, please correct it on the attached correction page. Your grant award number is in this format: 95-UL- WX-OOOO or 95-UM- WX-OOOO for grants awarded in FY 1995 and 96-UL-WX-0000 or 96-UM-WX-OOOO for grants awarded in FY 1996. It is used for fmancial purposes and should be referred to when dealing with the Office of the Comptroller. Your OR! number begins with your State abbreviation followed by nwnbers and/or letters. This number is the number assigned by the Federal Bureau of Investigation for use in tracking information for the Uniform Crime Report. The COPS Office tracks programmatic grant information based upon this OR! number. 6 If you have any questions regarding your grant, please refer to your grant award number or your agency's OR! number and we will do our best to assist you. What is a Modified Award? A Modified A ward Page may be included in this mailing. The final grant amount on this document may differ from the estimated amount on your original Award Page because the final grant amount is based upon your approved budget. If you are receiving a Modified Award, take careful note of the change between your estimated award amount on the original document and the actual amount on the Modified A ward. If you have any questions about the modification, refer to your budget clearance memorandum. If that does not answer your questions, please contact your financial analyst. After you review and understand this document, please sign, make a copy for your records and mail the original back to the COPS Office with your payment selection sheet. What are the GRANT CONDITIONS? The Grant Conditions are the terms listed on the back of your Award Page. By accepting this grant, you are entering into a partnership with the U.S. Department of Justice, Office of Community Oriented Policing Services (COPS). As part of that partnership, you agree to these 10 grant conditions (and possibly additional conditions specific to your agency). The section that follows describes in detail each of the award conditions, their rationale and their implications. It also addresses many commonly asked questions. There are several grant conditions that your agency may receive that will prevent draw down or access to your funds until satisfied. The most common condition that prevents draw down of funds until your budget has received budget clearance. If you receive an award with a budget special condition, your budget has not received final clearance. In those cases, you will receive notification in writing when your budget has been cleared. It should be clear to you when you review the award page and any corresponding grant conditions which ones, if any, would prevent draw downs until satisfied. However, if you have any questions about these conditions, please call your grant advisor. Reasons for grant conditions. The requirements of your COPS Universal Hiring grant are established within: . the Public Safety Partnership and Community Policing Act of 1994 under which the COPS Office was established; and . applicable rules, regulations and policies issued by the Department of Justice, Office of Management and Budget (OMB), the General Accounting Office (GAO) and the United States Treasury. 7 You may request copies of any source reference document from: Office of Administration Publication Unit, Room G 236, New Executive Office Building Washington, DC 20503. or from either the COPS Office or the Office of the Comptroller. Review of each condition. #1 ALLOW ABLE COSTS. The funding under this project is for the payment of SALARIES AND APPROVED FRINGE BENEFITS for three years for sworn entry level career law enforcement officers, lateral transfers, or rehired officers. Grant funds may not be applied to portions of salaries above entry level. Rather such amounts must be provided for by the grant recipient. Overtime, training, weapons, communication equipment and vehicles cannot be paid for with this funding. Rationale: As the program materials state, COPS Universal Hiring is a program that can only fund entry level salaries and benefits for the hiring or rehiring of career law enforcement officers. Action: Salaries covered by COPS grants must be reasonable for the services rendered and paid to an officer appointed under the laws or rules governing hiring by your agency. Salary payments must be based on payroll records supported by time and attendance records or the equivalent. The types of records you must keep to document that you are following this grant condition are described in section IV of this Manual. Fringe benefits may be paid if they are part of a reasonable compensation package offered to your employees and if they fall within the categories authorized by the COPS Office which include FICA, Social Security, health insurance, life insurance, vacation, sick leave, retirement, worker's compensation, and unemployment insurance. Equipment, overtime, training, uniforms, weapons, and such costs other than salaries and benefits are not allowed. However, if you train your officers prior to swearing them in, grant funds may be applied to salaries and benefits paid to the new officers during training. 8 As long as you spend the funds on salary and benefits that you documented in your budget summary and that were approved by your financial analyst, this condition will be satisfied. #2 FISCAL YEAR AND FEDERAL COGNIZANT AGENCY Prior to withdrawalo/funds under this award, the recipient must provide the Control Desk, Office 0/ the Comptroller with the recipient organization's fiscal year and the name o/the recipient organization's cognizant Federal agency. Rationale: In order to ensure that your agency is in compliance with Federal audit requirements and OMB regulations, the Office of the Comptroller and the Federal cognizant agencies must coordinate tracking of all Federal funds awarded under grants. To accomplish this, we need your cooperation in gathering the infonnation. Action: This infonnation was requested in the application form you submitted for COPS Universal Hiring. In most cases this condition has been satisfied. However, if you did not provide this information, your cognizant agency is the Federal department or agency that provides you with the most Federal money. It may have been assigned to your jurisdiction previously. If this is your first Federal grant, your cognizant agency probably is the U.S. Department of Justice. Please contact your grant advisor if you have any questions about the identity of your Federal Cognizant Agency. #3 SUPPLEMENTING, NOT SUPPLANTING COPS Universal Hiring grant funds must be used to hire one or more new, additional career law enforcement officers, beyond the number of officers that would be hired or employed by the grantee in the absence o/the grant. In the case of a grantee starting a new law enforcement agency, the grantee must continue the level of service, if any, previously provided on a contract and utilize the grantfunds to expand the level of service. Unless authorized in writing by the COPS Office, grant funds may not be applied to the salary or benefits of an officer hired by a grantee prior to your Universal Hiring Grant Award Date. Rationale: The Public Safety Partnership and Community Policing Act of 1994 specifically states that Federal funds under the COPS programs are not to be used to supplant existing local or state funds. 9 Action: COPS Universal Hiring funds may not replace resources the grantee would have used or had committed to use for law enforcement purposes without the grant. COPS funds are expected to increase the grantee's force level above the number of funded (filled and vacant) sworn positions existing prior to the time the grantee submitted an application to the COPS Office. The Public Safety Partnership and Community Policing Act of 1994 specifically states that Federal funds under the COPS programs are not used to supplant existing local or state funds. You may, however, transfer a veteran officer to the community policing position and use COPS funds to hire a new officer to replace the redeployed veteran. To meet this grant condition, you will need to ensure that: . Each officer that you hire under COPS Universal Hiring is newly hired (after your Universal Hiring Award Date), unless an exception is authorized in writing by the COPS Office; . The officer(s) that you are hiring brings your force to a number over and above the number of officers and funded officer positions that you had as of May I, 1995; . During the life of your grant, you must continue to hire as many new, locally- funded officers as you would have if you had not received your grant. You may not cancel or postpone spending money in your budget that is committed to hiring other new officers. . You must take positive and timely steps to fill any vacancies that were created on or after your grant award date by retirement, resignation or other reasons with new officers other than your COPS Universal Hirin2 officer. Again, any exception must be authorized in writing by the COPS Office. A "career law enforcement officer" is an officer hired on a pennanent basis who is authorized by law or by a state or local public agency to engage in or supervise the prevention, detection, or investigation of violations of criminal law . #4 RETENTION Your agency is expected to make a goodfaith effort to retain the positions funded by the COPS Universal Hiring grant funds at the conclusion of the grant. 10 Rationale: The Public Safety Partnership and Community Policing Act of 1994 envisions that positions for officers should be maintained by localities beyond the Federal funding period. The local match and the provision of a decreasing Federal share were established to enable communities to adequately plan for paying the salaries and benefits of the new officers without burdening them with the full cost of biting a new officer. It is up to you to determine how the Federal share decreases from year to year. Please refer to your application budget information sheet that you provided to the COPS Office to review your federa1llocal share plan. Action: Your retention plan should focus on maintaining the position beyond the life of the grant, not continuing to employ the specific officer. If, for any reason, the officer originally filling the position funded by the COPS Universal Hiring grant leaves your department, it is anticipated that you will fill the position with a new officer. #5 Equal Employment Opportunity Plan (EEOP) For grants of$500, 000 or more, the grantee acknowledges that failure to submit an acceptable Equal Employment Opportunity Plan (if grantee is required to submit one under 28 CFR 42.302) that is approved by the Office of Justice Programs, Officefor Civil Rights. is a violation of its Assurances and Certifications and may result in the suspension of the drawdown offunds. For grants under $500,000, the grantee must submit a completed EEOP Certificationform and return it to the Office of Justice Programs, Office for Civil Rights within 120 days of the grant award Rationale: The purpose of an Equal Employment Opportunity Plan (EEOP) is to ensure full and equal participation of men and women regardless of race or national origin in the workforce of the recipient agency. EEOPs do not impose quotas or hiring requirements. The Department of Justice (DOJ) regulations regarding the requirements for an EEOP for Federal grant recipients and the required contents of the document are fully explained in 28 C,F.R.~ 42,301 ~ 11 Action: U.S. DOl regulations require you to prepare and maintain an EEOP if your organization: 0) has 50 or more employees and (ii) received a total of $25,000 or more in grants or subgrants and (Hi) has 3 percent or more minorities in its service population. Even if there is less than 3 percent of minorities in the service population, the DO] regulations require that the EEOP be written to focus on women. Grantees that meet criteria 0) and (iii) above and received $500,000 or more or a total of $1 million in grant funds during an 18- month period, are required to submit an EEOP to the Office of Civil Rights, Office of Justice Programs. If you meet the above criteria but your grant is for less than $500,000 and you have received less than $1 million in grant funds during an 18-month period, you need to complete and return the one-page COPS EEOP Certification fonn within 120 days of your grant award to advise us whether you have an EEOP in effect or whether you are exempt from this requirement. If you need help preparing an EEOP, please consult the Seven Step Guide to Preparini: an EEOP. #6 REPORTS In order to assist the COPS Office in the monitoring of the award, your agency will be responsible for submitting semi-annual progress reports and quarterly financial status reports. As those reports become due, your grant advisor and financial analyst will provide you with the forms and information necessary for compliance. Rationale: The Public Safety Partnership and Community Policing Act of 1994 and other Federal regulations and policies, requires that financial assistance provided by the Federal government be monitored carefully to ensure the proper use of Federal funds. In addition, the COPS Office seeks to document, on a continuing basis, the progress of our programs and our grantees. Action: , This grant condition is to make you aware of your responsibilities in assisting us with reporting requirements. These reports are discussed extensively in Section VI of this Manual. To meet this condition, you will be requested to fill out two program progress reports per year and four financial status reports per year. 12 #7 EXTENSIONS Requests for extensions, without additional funding, of the grant award period should be submitted in writing no sooner than two years after the official start date of the award to your grant advisor. Rationale: Under Federal regulations, requests to extend the grant period require prior approval. Without an approved extension, your funding will be automatically stopped at the end of the grant period. Action: In an effort to reduce the nwnber of extensions during the grant period, the COPS Office asks that you delay any request for an extension until you are well into your grant and are able to determine accurately when you expect the grant to be over. When the COPS Office receives and approves your extension request, we will ensure that you have continued access to your grant monies. #8 CONTRACTS WITH OTHER JURISDICTIONS Officers funded under this grant may only be involved in activities or perform services that exclusively benefit your agency and the population that it serves. If your agency contracts for its officers with another law enforcement agency, your agency is responsible for ensuring that this arrangement is in compliance with the conditions of your grant. Rationale: Occasionally, small towns enter into contracts with county or state law enforcement agencies. When a small town decides to use its COPS Universal Hiring grant to contract for the services of an officer from a local police department or sheriff's office, the small town must ensure that the activities of the officer are in accordance with the terms and conditions of its Universal Hiring grant. Action: The officer that has been funded under the COPS Universal Hiring program cannot be hired out by your agency to other agencies unless it will directly benefit the population that you serve. If your department will contract with another department for the officer funded under this grant, you must ensure that the contract is in accordance with the terms and conditions of your Universal Hiring grant. 13 #9 EVALUATION The COPS Office may conduct national evaluations of the Community Oriented Policing Services (COPS) Program. The grantee agrees to cooperate with the evaluators. Rationale: The Public Safety Partnership and Community Policing Act of 1994 states that evaluations of the program may be carried out or commissioned by the Attorney General for the furtherance of the purposes of the Act. The COPS Office plans to conduct evaluations to determine what programs are working, how programs may be improved and why certain programs are working better than others. Specifically, the COPS Office may assess the way in which you implement your community policing program, In some jurisdictions, COPS staff may study the effectiveness of funded programs, projects and activities. Evaluators may collect information about the programs' effect on crime, victims of crime, and the quality of life in communities. In addition, they may ask questions about how residents feel about community policing and how police feel about their work. This information will be useful to other communities and police agencies across the country. Action: When evaluations are undertaken, you may be contacted in writing with specific requests for information. In general, evaluators may need to speak with individuals in your department, observe activities of your department, and obtain written reports about and from your department. You will be asked to facilitate any site visits and information gathering activities. In addition, you will be asked to provide accurate and timely information about your grant activities. #10 GRANT OWNER'S MANUAL The grantee agrees to abide by the terms, conditions, and regulations as found in the COPS Universal Hiring Grant Manual Rationale: This Manual has been tailored to inform you of the policies, procedures and regulations that apply to your grant. You will be responsible for the information and rules contained in this Manual. More detailed guidance can be requested through your grant advisor. ]4 Action: Please read the entire COPS Universal Hiring Grant Owner's Manual carefully prior to signing the grant award page. If you have any questions, please contact your grant advisor. When you sign the award page, you should ensure that the proper reporting and financial systems are in place to satisfy the requirements. REMINDER - ASSURANCES The grantee acknowledges its agreement to comply with the assurances pertaining to the COPS Universal Hiring grant program. Although the Department of Justice has made every effort to simplify the process for applying for and receiving grants, provisions of Federal law require us to seek your certification regarding certain matters. Most of these assurances apply to all grants provided by the Federal government. When you filled out your original application, the assurances that you agreed to by signing the application were included in the application kit. Another copy of the assurances is contained in Appendix B of this Manual. If you have any questions about them, please contact your grant advisor. How to accept the award? After you have reviewed the conditions of the award and your agency agrees with those conditions, you are ready to accept the award. At the bottom of the Award Page are two signature lines. Joseph E. Brann, the Director of the COPS Office, has signed the Award Page indicating approval of your grant, an obligation of Federal funds to your organization and our commitment to the award. To officially begin the grant and to be able to draw down your funds, your authorized official must sign the award page and return the original copy to: COPS Universal Hiring Program Office of Community Oriented Policing Services (COPS) 1100 Vermont Ave., N.W. Washington, D.C. 20530 Faxes cannot be accepted. Who should sign the award/or my agency? The "authorized official" is the individual in your organization who has final responsibility for all programmatic and financial decisions regarding this grant award. In some jurisdictions, police chiefs and sheriffs have the authority to accept grant awards. In others, the mayor or county executive may have this sole authority. Before signing the grant, you should determine who in your jurisdiction has the legal authorization to accept the award. If you have any questions as to 15 who should sign the award, please contact your city or county's legal advisor, When do the grant materials need to be returned? Please return the signed award page within 45 days of your receipt of it. No funds may be released until we have received your signed award page, your budget has received final clearance and any other relevant grant conditions particular to your agency have been satisfied. If you require an extension for accepting the award beyond the 45-day time frame for any reason, please request it in writing from your grant advisor. What are the specific rules regarding termination ofgrantfunding? The COPS Office has the right to sanction or to terminate your project only when there is reason to believe through periodic monitoring or review that you: . are not substantially complying with the requirements of the Act, the guidelines or with other provisions of Federal law; . are failing to make satisfactory progress toward the goals or strategies in your application and information, as reflected by performance and status reports; . do not adhere to grant agreement requirements or conditions; . propose substantial plan changes to the extent that, if originally submitted, would have resulted in the application not being selected for funding; . do not submit reports; . file false certification in connection with an application, periodic report or other document submitted to the COPS Office; and/or . provide other good cause for termination. In these instances, we may: . temporarily withhold payments pending correction of the situation by you; . disallow all or part of the cost of the activity or action not in compliance; . wholly or partly suspend or terminate the current award for your grant; . require that some or all of the grant amounts be remitted to the Department of Justice; . condition a future grant or elect not to provide future grant funds to you until appropriate actions are taken to ensure compliance; . withhold further awards for the program; . recommend civil or criminal enforcement by other agencies; and/or . take other remedies that may be legally available. In the event that sanctions are imposed or a grant is terminated, you will be notified in writing of 16 our decision, and the reason(s) for that decision. You also will receive reasonable time to either discontinue operations or seek support from other sources. How are changes to the grant made? You must seek prior approval if you plan to make grant changes relating to any of the following issues: . changes in grant officer (s) . extensions . salary and benefit changes . major programmatic changes In order to make one of these changes, you are required to submit your plans in writing to the COPS Office for prior approval. Extensions will allow you to extend your grant period to ensure that you are able to support the position for a full three years if you have any delays in hiring or periods when the position is vacant. Please document your reasons for the proposed changes and add any other information that will assist us in reviewing the changes. Questions about accepting your grant. If for any reason you have questions about accepting this grant, please contact us at 1-800-421- 6770 or contact your grant advisor. If you have decided not to accept this grant, please send us a letter advising us of your decision. However, prior to deciding not to accept your COPS Universal Hiring grant, please contact your -. grant advisor to discuss other options. If, for example, between the time you submitted the application and received an award, the person you intended to hire has decided not to accept the position, you may request an extension of the grant period. 17 II. ACCESSING GRANT FUNDS This section provides information about how you get paid and gives answers to payment-related questions. There are three methods of payments that you can use to access your grant funds: COPS Coupons, the COPS Request for Payment Form (Revised H-3) and LOCES (electronic payment). The following explanation of payment methods will assist you in determining which payment method you would like to use in accessing your COPS grant funds. Please choose one payment method by completing the enclosed Payment Selection Sheet. You are encouraged to use any method which you fmd most appropriate for your agency. (However, if you are currently using the LOCES method, please continue to use that method.) After you complete the payment selection sheet, please return it to the COPS Office. Should you desire reimbursement for your immediate needs, but you would like to use the Coupons method or LOCES, please use the enclosed COPS Request for Payment Form (Revised H-3) until we are able to get your account established within the Coupons or LOCES systems. PAYMENTMETHODS I. COPS Coupons A. Who can use this method? "COPS COUPONS" is a payment method designed to simplify your requests for payments and financial reporting. COPS COUPONS is designed for agencies that: . pay their officer the same monthly salary and benefits for an entire year; . are able to forecast accurately their salaries and benefits for their COPS Universal Hiring officer(s) for an entire year; and, . would benefit from a simplified, standard schedule of payments set up for one year at a time. If this describes how your agency works its payment schedules, then COPS COUPONS can work for you. If you have already hired your COPS Universal Hiring officer please call your grant advisor for assistance in filling out tbe Payment Selection Sheet (PSS). If you department has a COPS UHP grant for two to five officers, and you have not yet hired the officers, use one PSS if: 1) the officers hired will be paid at the same rate, and, 2) the officers have the same start date, or you know the different start dates. If you answer "yes" to both questions, indicate the number of officers your department will be hiring in question #3 of the PSS. 18 If the officers you hire have different pay rates you will need to send in a PSS for each officer. If you don't know the different start dates, you should send in a PSS when you know your department is going to hire an officer. Please call the COPS Office if you need assistance. In addition, if you currently have a COPS Hiring grant other than this Universal Hiring grant or have a COPS Universal Hiring grant for five or more. officers, you may not be able to use this method at this time. (The COPS Coupons program is a pilot payment program.) If this is your situation and you would like to use Coupons, please contact our grant advisor for assistance. B. How does it work? Based upon the information that you provide in the enclosed "Payment Selection Sheet", COPS COUPONS will establish a standard monthly or quarterly payment schedule for the Federal government to pay you by advancing or reimbursing you for the previously approved salaries and benefits of your COPS Universal Hiring officer(s). ~ ____--- -r>'- r -tlfyou use your coupons for quarterly advances and your grant is for $75,000 or less and for a three year period or less, you may use coupons to be advanced up to $6250 a quarter. -tIf your grant is for $75,000 or more, you will use the coupons to reimburse you monthly or quarterly or you can use the coupons to advance one month of federal money to you. After the COPS Office receives your payment selection sheet indicating that you would like to use COPS COUPONS as your method of payment, we will send to you your COPS COUPONS. The coupons will contain pre-printed information about your grant funds to date, your match payments to date and both the local and Federal funds remaining to be spent for the year. When you request a payment, whether monthly or quarterly, you need to take the coupon that corresponds to that time period and review its pre-printed figures to ensure they match financial records that you keep. If everything is acceptable, you will need to sign the coupon and send it to: COPS Office Universal Hiring Program Office of Community Oriented Policing Services (COPS) 1100 Vermont Ave., N.W. Washington, o.c. 20530 The COPS Office will process your coupon and you will receive your payment either through direct deposit or by treasury check. We encourage direct deposit. For your convenience, we have provided a direct deposit "ACH" enrollment form in the mailing containing this Manual. 19 As the year draws to a close, we will send you a fonn to update us on your payment needs for the following year. Based on the new information, we will create a new set of coupons for the following year. If, for some reason, the officer leaves your agency. you must notify the COPS Office immediately. You cannot submit a coupon until that officer has been replaced. c. Other benefits? In addition to simplifying payment requests, the COPS COUPON also makes financial reporting less burdensome. If you select the COPS COUPON method of payment, you will receive quarterly fmancial statements similar to checking account statements. These statements will detail your reported draw downs against the Federal and local shares, funds not used to date and the Federal funds remaining for the year and the grant period. Although, you will be responsible for reviewing this statement for its accuracy, it will assist you in completing the quarterly financial reports. It is very important to maintain your own financial record keeping system so that you can reconcile any differences between your records and those of the COPS Office. For more information on financial record keeping and audit requirements, please refer to those sections in this manual or contact your financial analyst at 1-800-421-6770. D. What if I think I need to change payment methods? If you determine at any time that the COPS COUPONS do not meet your payment needs, please contact the COPS Office at 1-800-421-6770 or refer to the COPS Request for Payment (Revised H-3) or the LOCES method described below. II. COPS Request/or Payment Form (Revised B-3) This payment method allows you to request advances or reimbursements on a bi-weekly or monthly basis by completing a Request for Payment form each time you are require a payment. A. Who can use this method? The COPS Request for Payment enables you to vary the amount of grant draw down amounts with every request that you make. It is suitable for agencies that: . do not pay their officer(s) the same monthly salary and benefits for an entire year for reasons such as contract raises; . are not able to forecast accurately their salaries and benefits for their COPS Universal Hiring officer(s); and, . desire flexibility in how much and when they request their payments. B. How does it work? 20 The COPS Request for Payment form that you received with your award package has preprinted information on its front and detailed instructions on its reverse. You should copy that form and use it for your payment requests. If you need additional forms, please contact the COPS Office, When you use the COPS Request for Payment method, you can receive payment through direct deposit by completing the direct deposit "ACH" enrollment form or you can receive payment through the mail by Treasury check. We recommend direct deposit. 21 Advances: Advances can be submitted using the COPS Request for Payment Form by checking the box on line (6) marked "advance." For grants of $75,000 or less, you may receive advances for up to $6,250 per quarter. For grants of more than $75,000 you may request advances for up to 30 days of your costs. In general, the concept of minimum cash on hand applies to COPS grants. The minimum cash on hand concept requires that you request funds based upon immediate disbursement. You should time your request for payment to ensure that Federal cash on hand is the minimum that you need to make your immediate salary and fringe benefit payments. There should be no excess Federal grant funds on hand, except for approved advances discussed above. The Federal Government has four basic rules regarding advances. Advances can be terminated if the grantee: . Is unwilling or unable to attain project goals . Maintains excess cash on hand . Does not adhere to the terms and conditions of the grant . Fails to submit reliable and/or timely reports. Reimbursements: Requests for reimbursements can be submitted using the "COPS Request for Payment" form by checking the box on line (6) marked "reimbursement." Only reimbursements for actual salaries and benefits of COPS Universal Hiring officer(s) can be made. Canfunds be directly deposited into a city or department's bank account? Yes. After you complete the COPS Request for Payment Form, please refer to the enclosed ACH VendorlMiscellaneous Payment Form. Please fill out the middle section with your agency's name, address, tax identification number and contact person. The Financial Institution Information section should be completed by your financial institution. After the form is received and processed by the COPS Office, the funds you requested will be deposited electronically into your account. The form has complete instructions on its reverse side. You will only need to fill 22 this form out one time and from then on, so long as you check the direct deposit box on the COPS Request for Payment Form, line (5), all of your payments will be directly deposited into your designated account upon receipt and approval of your request by the Office of the Comptroller. When and to whom should we submit these requests? Reimbursement and advance requests should be submitted at least monthly to the COPS Control Desk, 633 Indiana Ave, NW, 3rd Floor, Washington, D.C. 20531. What are the next steps? If you are not using direct deposit, once the COPS Request for Payment form is received, reviewed and approved, the Comptroller's Office prepares a Voucher and Schedule for payment for the amount approved. This schedule is forwarded to the U.S. Treasury requesting issuance and a check mailed directly to you or to your designated fmancial agent. C. Other benefits? The COPS Request for Payment form is a revision of an existing form and was designed specifically for COPS grantees. It is simple and takes little time to complete. COPS Office financial analysts and grant advisors are available to assist you in completing this form. III. LOCES A. Who can use this method? LOCES is the Letter of Credit System. It is suitable for agencies that: . have a computer and a modem; . do not pay their officer the same monthly salary and benefits for an entire year for reasons such as contract raises; . are not able to forecast accurately their salaries and benefits for their COPS Universal Hiring officer for an entire year; and, . desire flexibility in how much and when they request their payments. B. How does it work? This payment method requires a modem to complete the request for payment. This method of payment is encouraged for all grantees who receive over $120,000. A separate LaCES Manual explains this system more thoroughly. This Manual may be 23 obtained by contacting your financial analyst or 1-800-421-6770. In addition, your financial analyst can provide you with technical assistance in establishing this method of payment. C. Other benefits? The LOCES method is a paper less, computerized method of payment. It enables you to keep your financial records on a computerized system and you can transmit information directly to the Office of the Comptroller. ADDITIONAL PA YMENT QUESTIONS Can we earn interest on our grantfunds? You should minimize the time between your draw do\'m of grant funds and your payment of grant costs. You need to account for interest earned on advance of Federal funds as follows: (1) You may keep interest earned on all advances of Federal grant funds up to $100 per fiscal year. (2) You should promptly, but at least annually, remit or credit the COPS Office interest earned over and above the $100 identified in (1) above. 24 III. MEETING THE LOCAL MATCH The COPS Universal program provides up to 75% of the entry level salary and fringe benefits for a new or rehired law enforcement officer over three years up to $75,000. The maximum that the COPS Office can pay per officer for that three year time period is $75,000. Grantees are responsible for at least 25% of the total cost of salaries and fringe benefits unless the requirement of a local match has been waived in whole or in part. The match must be a cash match. What are some sources of matching funds? Sources for match requirements may include: . Funds from state or local units of government that are committed to matching funds for your program; . Funds from Federal programs which specifically authorize use as matching funds such as: -Housing and Community Development Act of 1974 -Equitable Sharing Program . Funds contributed by private sources . Program income funds from asset forfeitures. When and how must the match be made? Matching contributions may be applied at any time during the life of your grant provided that the full matching share is obligated by the end of the grant period. In addition, as a percentage of tbe total, the local share must increase every year during the grant period and the Federal share must decrease. This means that if you received $60,000 from the Federal government for your COPS Universal Hiring officer, you could spend the Federal share at $38,000 for year one; $15,000 for year two; and $7,000 for year three and meet the local share increaselFederal share decrease requirement. If you have any questions about adjusting your match differently than you stated in your budget, please contact your grant advisor or financial analyst. Records of the Match You should maintain records of your local share. These records should clearly show the source of match, the amount of match and when the match was contributed, Can the Matching Requirement Be Waived? In order to maximize the number of communities that can take advantage of the COPS grants, only a very small portion of requests are granted at the time of application. Waiver requests can only be considered when a jurisdiction makes the request at the time of application. Departments that are able to provide satisfactory documentation of severe fiscal distress are granted waivers. 25 How are waivers granted? It is the burden of the jurisdiction to demonstrate extreme fiscal distress at the time of application. Waivers fall under two categories: presumptive and case-by-case. If, at the time of application, the applicant is declared bankrupt by a court of law or placed in receivership by the State or Federal government, a presumptive waiver is granted. Case-by-case waivers are reviewed based on a demonstration of the following which must result in severe fiscal distress: . budgetary imbalance or expenditure cutbacks resulting in significant reductions in other services provided by the applicant; . significant lay-offs of personnel with the applicant department; . significant dO\\-1lgrading of applicant's bond rating due to fiscal stress; and/or . location within an area in which a declaration of major disaster has been made pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act How are we notified about whether we received a waiver or not? Your grant award will indicate whether your request for a waiver was granted. If you received a waiver and have additional questions, please contact your grant advisor. Please note that if you did receive a waiver, you are expected to develop and implement, in good- faith, a plan for the continuation of the funded activity following the conclusion of the Federal assistance. How do we appeal the denial of a waiver? If your waiver request was denied and you would like to appeal the decision; please make your appeal to: U.S. Department of Justice Office of Community Oriented Policing Services (COPS) 1100 Vermont Avenue, NW, 10th Floor Washington, D.C. 20530 Attn: Assistant Director for Grants Administration Post-award waivers will be considers only in extraordinary circwnstances. 26 IV. FINANCIAL RECORD MAINTENANCE Under your COPS Universal Hiring grant, you are required to establish and maintain accounting systems and fmancial records to accurately account for funds awarded and disbursed. These records need to include both Federal funds and all matching funds. What accounting systems are needed? You need to establish and maintain accounting systems and financial records to accurately account for funds awarded to you. These records should include both Federal funds and matching funds of state, local, and private organizations. Your accounting system should: . present and itemize approved costs of salaries and benefits and show the actual costs of salaries and benefits; . assure responsible use of grant funds; . assure that funds are spent in confonnance with your grant conditions; and . be able to provide the necessary infonnation for periodic financial review. What items should be kept? Your fiscal control and accounting systems should enable you to make accurate, current and complete disclosure of the financial activity under your COPS Universal Hiring grant. Your accounting records should contain infonnation showing expenditures under the grant, and must be supported by items such as payrolls, time and attendance records, canceled checks or similar documents. You must adequately safeguard grant funds and make sure that they are used for authorized purposes. You will be responsible for refunding expenditures disallowed by auditors. How long should documents be kept? All financial records, including payroll, time and attendance records, canceled checks and similar documents associated with your COPS Universal Hiring grant should be kept for at least three years from the grant closing audit report date. If any litigation, claim, negotiation, audit or other action involving these records has been started before the end of the three year period, the records should be kept until completion of the action. These records should be easily located and should be properly protected against fire or other damage. You should maintain your records so that you can identify them by grant year or by your fiscal year, whichever you find more convenient. 27 What ifwe have more than one grant? If you have more than one Federal grant, funds received under one project may not be used to support another project. Your accounting systems and financial records must reflect expenditures for each project separately. Federal funds may be used to meet your match only if they are specifically approved by the COPS Office. If Federal funds are being used to meet your match, your accounting system should accurately document how the funds are being used and the programmatic intent of the match funds. Who may access our records? Authorized Federal representative, including the representatives ofthe Department of Justice and the Comptroller General for the u.s. may access these records as long as they exist for the purposes of making audits, examinations, excerpts or transcripts. 28 v. AUDITS WHO MUST HAVEAN AUDIT DONE? . Grantees that received $100,000 or more in Federal funds in anyone fiscal year must have a "single audit" performed for that year. OMB Circular No. A-128 is included for such organizations. Please refer to this document to comply with audit requirements (other audit requirements apply to educational institutions). . Grantees that receive less than $100,000 but more than $25,000 have the option of performing a single audit or separate program audits. . Grantees that receive less than $25,000 in any fiscal year do not have to have an audit performed. What is a "single audit"? The "single audit" is an audit made by an independent auditor covering the entire operations of the State or local government. At the State or local government's option, a "single audit" may be restricted to just the departments or agencies that will receive, expend, or otherwise administer Federal monies during the audit year. What is the purpose of an audit? Audits review your administration of grant funds, including your local match. Audits specifically determine whether: . you have established an accounting system which will provide reasonable assurance that your organization is managing the COPS Universal Hiring funds in compliance with the laws and regulations documented in this Manual and in the assurances which were part of your application. Your accounting system must provide for adequate review and control by your authorized officials to provide accountability for grant drawdown amounts, grant payments for salaries and benefits, matching fund payment and bank account balances. . you or your financial manager have prepared financial statements that are accurate and that are in accordance with generally accepted accounting principles. . you have prepared financial reports, including financial status reports, cash reports and claims for advances and reimbursements which contain accurate and reliable financial data and are represented in accordance with the conditions of your COPS Universal Hiring grant and this COPS Universal Hiring Grant Owner's Manual. 29 . you have spent the grant funds in accordance with the conditions of your COPS Universal Hiring grant and provisions for Federal law that may bear on your financial statements. What are the audit reporting requirements? If an auditor becomes aware of any issues or illegal acts, the auditor is required to give prompt notice of the problem to the management officials in your department. The management official is required to promptly notify your cognizant Federal agency of the issues or illegal acts and of the proposed and actual actions to solve the problem. The COPS Office must inform the appropriate officials, including state and local law enforcement agencies or prosecuting authorities, of any known violations of the law within their respective area of jurisdiction. What is the due date of audit reports? Audit reports covering each fiscal year are due no later than 13 months after the close of the organization's fiscal year. Where are the audit reports to be submitted? You should submit reports of your audit to your cognizant Federal agency. A cognizant Federal agency is generally the Federal agency that provides you with the most Federal money. If this is the first Federal grant that your organization has received, the Department of Justice is most likely your cognizant Federal agency. In that case, your audit reports should be sent to the Department of Justice's Regional Audit Offices. A list of the Department of Justice's Regional Audit Offices is provided in Appendix C. If this is not your first Federal grant, please check with your financial analyst or auditor within your department to determine locally the identity of your Federal cognizant agency. If you are unable to determine which agency this is, please contact your COPS financial analyst. What if there are problems with our audit report? Your management officials will need to develop recommendations for timely action that will resolve issues that the audit identifies. Prior to your audit, you should develop policies and procedures for how your agency will respond to audit recommendations. These policies and procedures should designate officials to be responsible for: . follow-up on audit fmdings; . maintaining a record of the actions taken on recommendations and time schedules; . responding to and acting on audit recommendations; . submitting periodic reports to the Federal cognizant agency on recommendations and actions taken. 30 How are audit requirements monitored? The Office of the Comptroller, in coordination with the COPS Office, will track audit requirements. Audit reports will be tracked until all issues are resolved and the audit is closed. How can our agency receive technical assistance with audit requirements? The Office of the Inspector General at the U.S. Department of Justice is available to provide technical assistance to you in implementing audit requirements where the Department of Justice is your assigned Federal cognizant agency, You may receive assistance on the following audit matters by contacting your Regional Inspector General (see Appendix C for addresses and telephone numbers): . review of audit arrangements; . review of audit programs or guides to be used for the conduct of the audit; . on-site assistance in performing the audit, when necessary, as a result of complex problems that arise. What are the consequences of not complying with audit requirements? Future grants will not be awarded to any applicant who has an overdue auditreport or an open audit report where the grantee has not attempted to respond or has taken no action to resolve findings. You must be in compliance with the audit requirements to receive grant funds. Exceptions to this policy are by the recommendation of the Office of the Comptroller. 31 VI. REPORTS Periodically, you will be asked to provide two types of reports - Program Progress Reports and Financial Status Reports. Funds and future awards may be withheld if reports are not returned or are excessively late. PROGRAM PROGRESS REPORTS How often will progress reports be requested? Program progress reports will be requested twice a year. What kind of information will these reports require? These reports will request information about the status of your grant in terms of selection, hiring, and training; characteristics of the officers you have hired; descriptions of officer activities; and general information about your department. You will be asked about progress you have achieved in implementing community policing. How and when will these forms be sent? These reports and instructions will be mailed to you in the next several months. You will also receive periodic phone calls from your grant advisor regarding the status of your grant. Your grant advisor may make a site visit to your agency during the three year grant period. FINANCIAL STATUS REPORTS How will grantfunds be monitored? The Office of the Comptroller monitors the fmancial aspects of your grant through financial reports, meetings, telephone contacts, reports, audits, review of grant change requests and special request submissions. In specific cases, information may be requested during an on-site visit. Financial status reports under the COPS Coupons and COPS Requestfor Payment Form Under the COPS Request for Payment Form, you will need to fill out and return quarterly Financial Status Reports within 45 days after the end of the calendar quarter. These reports request information on your monies spent, the breakdown of Federal and local matches and the unobligated amounts. Much of the standard information will be completed by the Office of the Comptroller for your review only. Under the COPS Coupons Method, you will receive a statement each quarter which will assist you in filling out the Financial Status Reports. However, you must provide specific financial information. These financial status reports will be 32 mailed to you as their time for completion comes near. Financial status reports under LOCES If you opt for the Letter of Credit method, you will fill out a request each time you submit a drawdoWD. How do we report violations (Fraud, Waste and Abuse)? If you suspect any alleged violations, serious irregularities, or acts that may result in the use of public funds in a manner inconsistent with the Public Safety Partnership and Community Policing Act of 1994 or the purposes of this grant, please report such to the Department of Justice Inspector General Hotline at 1-800-869-4499. We would greatly appreciate your cooperation to help us ensure that these Federal grant funds are spent responsibly. 33 VII. WHEN THE GRANT PERIOD HAS ENDED "CLOSING OUT" YOUR GRANT At the end of your grant period, the COPS Office is responsible for the "close out" of your grant. To fulfill this requirement, we must determine that you, as well as the COPS Office, have completed all of the work required of the grant. When should all of the grant monies be spent? Grant funds must be obligated by the end of the grant period. Obligated funds cover expenses that you have incurred but not yet paid. Grant funds that have been obligated have ninety days after the end of the grant to be paid out (expended) to you. Any grant funds that you do not request payment for at the end of the 90th day will revert to the COPS Office. Final progress report Within 90 days of the end of your grant period, the COPS Office will ask you to submit final financial and program reports. Any unspent funds must be returned to the Federal Government. The final progress report and its instructions will be mailed to you in the third year of your grant. It will request information similar to the semi-annual progress reports. 34 EPILOGUE We hope that this Manual has assisted you with your grant questions. We welcome and encourage any comments you have regarding COPS Universal Hiring Program and the materials we are developing for its administration. If you have specific comm~nts regarding this Manual, please send them to COPS Universal Hiring Grant Owner's Manual, 1100 Vermont Ave., N.W., 8th Floor, Washington, D.C. 20530. We will review these comments and make revisions as appropriate. If you have any questions about your grant, please call 1-800-421-6770 or your grant advisor. 35 APPENDICES 36 List of Source Documents Prima,)' Sources: Public Safety Partnership and Community Policing Act of 1994 42 U.S,C. U.S. Department of Justice, Office of Justice Programs, Financial and Administrative Guide for Grants OJP M 7]00.1D: May ]S, ]990 _ ~ddiJiontJI Sources: - Code ofFederaJ Regulations (CFR) 28 CFR Part 66 Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments 28 CFR Part 67 Government wide Requirements for Drug-Free Workplaces (Grants) 28 CFR Part 69 Government wide New Restrictions on Lobbying 3 I CFR Part 205 Treasury Department Regulations Implementing for Cash Management Improvement Act of 1990 OMB Circular A-87 Cost Principles for State and Local Governments OML Circular A-] 28 Audits of State and Local Governments (Included) OMB Circular A-33 Audits of Educationallnstitutiol1s Assurances for Universal Hiring (Included) Executive Or.der12547 .'Non-Procurement Debarments and Suspension" ", Executive Order 12372,28 CFR, Part 30 "Intergovernmental Review of Federal Programs" OMB Circular A-129 Managing Federal Credit Programs 4 CFR Parts ]01-105 Department of Justice/General Accounting Office, "Joint Federal Claims Collections Standards" 5 CFR Part ] 320 "'Controlling the Paperwork Burden on the Public" Executive Order 12291, "Regulations" 5 CFR Part] 51 "Political Activities of State and Local Officials or Employees" . . . .. 'lllt .... ...., EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUOGET WASHINGTON. O.C. 20503 - . April 12. -:1985 CIRCULAR Ho. A-128 .1'0 THE BEADS OF EXECUTIVE DEPARl'MEN'I'S AND ES'I'ABLISHKENTS. -SUBJECl': Audits of State and Local Governments. . . 1. Purpose. This Circular Is l.sued pursuant to the Single . Audit Act of 1184, P.L. 18-502. It ..~bli.hes audit requirements -fer' ~t.....-m5 '~i ..\01".....1. UW~IJ\..1. "utt -re-celve "e~ern ale,. an,," defines Federal responsibilities for tmplem.ntlng and monitoring those. requirements. .. 2. Supersession. The Circular .uper8.~es Attachment P, -Audit Requirements,. of Circular 1.-102, .Uniform requirements for grants to State ~nd local governments.- 3. Background. The Single Audit Act builds upon ~arlier efforts to improve au~its of Federal aid programs. The Act requires State or local governments that receive. $100,000 or ~ore a year In Federal funds to have an audit ~de for.that year. Section 1505 of. the Act requires the Director of t~e Office of Management and Budget t9 pres~ribe policies, procedures and guidelinea to implement the Act. It specifies that the Director shall designate .cognizant- Federal agencies; cSeterndne cr~teria for making .ppropriate-charges to Federal .programs for the cost of audits, and provide procedures to assure that smail firms or firms owned and controlled by disadvantaged indlvi~uals have the opportunity .to participat~ in contracts for 8ingle audits. .. Policy. The Single Audit Act require. the following: a. State or local governments ~hat receive 5100,000 or more a year in Federal financial asslstance ahall have an audit made 1n Aeeordancewlth this Circular. b. State or local governments that receive between 525,000 and 5100,000 a year shall have an audit made in accordance with this Circular, or in accordance with Federal laws and regulations governinQ the prograMS they participate in. c. State or local governments that receive less th~n $25,000 a year shall be exempt from compliance with the Act ~nd other feder~l audit requirements. Thes~ State ana local Qovernments shall be governed by audit requirements prescribed by St~te or local law or regulation. . . 3 h. -Indian tribe- ~eans any Indian tribe. band. nations, or other organized group or community. including any Alaskan Native village or regional or village corporations (a. det1ned In. or established under. the Alaskan Native Claims Settlement Act) that Is reQPgnized by the United States a. eligible for the SPecial programs and services provided by the United State. to Indians because of their status as Indians. i. .Local government- aeans any unit of local government within a State, including a county, a borough, .unlclpallty, city. town, township, pariSh, local public authority. .pecial district, ~chool dist~ict, intrastate district, council of governments. and any other Instrumentality of local governaent. j. -Major Federal Assistanco Program,. a. defined by . P.L. 58-502" J.s d.HC,.....J...,,, ~.tJwt ...a.twC'~".e.cao ~i.. <i~-<'-6M. - .' k. .Public accountants. .eans those individuals who meet the Qualifi~tion standards included in generally accepted government auditing standards for personnel performing government a ud i ts . 1. .State- ~eans any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands, any instrumentality thereof, and any lDul'tl-State, regional, or interstate entity that bas governmental functions and any Indian tribe. m. .Subrecipient- means any person or government department, agency, or establishment that receives Federal financial assistance to carry out a program through a State or local government, but does not include an Individual that Is a beneficiary oi such a program. A 8ubreclplent ~y also be a direct recipient of Federal financial as.istance. 6. Scope of audit. ~he Single Audit Act provides thata a. The audit shall be made by an independent auditor in accordance with generally accepted government auditing standards covering financial and compliance audits. b. The audit _hall cover the entire operati~ns of a S~e~e or local government or, at the option of that government, it may cover departments, aQencies or establishments that received, expended, or otherwise administered Federal financial assist~nce during the year. However, if a State or local Qovernment receives S25,OOO or more in General Revenue Sharing Funds in a fiscal ye~r, it shall have an audit of its entire operations. A series of ~udits of individual departments, aQencies, and establishmentS for the same fiscal year may be considered a sinQle audlt. . . ... \ 5 b. Compliance review. The law also requires the auditor to determine whether the organization has complied with laws and regulations that MY have a material effect on each.major Federal assistance ~rogral1l. . . (1) In order to determine which m&jor programs are to be tested for compliance, State and local governments ahall _identify in their accounts all Fed~ral funds received and expended and the programs under which they were received. This shall Jnclude funds received directly from Federal agencies and through - other Sta te and local governments.. _ . (2) The review must include the selection and testing of a representa tive number of charges from each IMjor Fed,ral . ~n1~nee -program. -:be se"ectlon an~. testIng of transactions shall be based on the auditor's professional judgment conSidering such. factors as the amount of expenditures for the program and the indivldua1 awards; the newness of the program or CM nges in its conditions: prior experience with the program, particularly as revealed in audits and other evaluations (e.g., inspections, ~rogram reviews), the extent to which the program i. carried out through subrecipients, the extent to which" the program contracts for goods or services; the level to which the program 1s already subject to program reviews or other forms of independent oversight; the adequacy of the controls .for ensuring compliance; the expectation of adherence or lack of adherence to the applicable laws and regulations; and the potential impact of adverse findings. (a) In making the test of transactions, the auditor shall determine whether: -- the amounts reported as expenditures were for allowable services, and -- .the records show that those who received services or benefits were eligible to receive them. (b) In addition to transaction testing, the auditor shall determine whether: ~tching requirements, levels of effort and earmarking limitations were met, , - . . . ~ 7 . 10.' Relation to other audit requirements. The Single Audit Act provides that an audit made in accordance with this Circular ahall be In lieu of any financial or financial compliance-au~it required u~der in~ividual Fe~eral assistance programs. To the extent that a single audit provides Federal agencies with information and assurances they need to carry out their overall responsibilities, they shall r.ly upon and use such information. However, a Federal agency shall uke any additional audits which are necessary to carry out its responsibilities under Federal law and regulation. Any additional Federal audit effort shall be planned and .carried out"in such'. way as to avoId duplication. .. a. The provisions of this ClI,cular do not limit the authority of .Federal agencies to ~ke, or contract for audits and evaluations of Federal financial assistance.programs, nor do" they limit the authorit.Y of allY Federal .I\Q"f'lt"-Y J'~ep#r'tW' ~~r;cl ~ other- }'eaeral audit official. . . . b. The provisions of this Circular do not author1ze any State or local government or subrecipient thereof to constrain Federal agencies, 1n any ~nner, from carrying out additional a udi ts. c. A federal agency that ~kes or contracts for audits In addition to th~ audits ~de by recipients pursuant to this Circular shall, consistent with other aypllcable laws and regulations, arrange for funding the cost of such adcUtlonal audits. Such additional audits include economy and efficiency audits, program results audits, and program evaluations. 11. Coon!z~nt agency responsibilities. The Single Audit Act provides for_~ognizant Federal agencies to oversee the implementation of this Circular. . a. The Office of Management and Budget will assign cognizant agencies for States and their subdivisions and larger local governments and their SUbdivisions. Other Federal agencies ~y participate" with an assigned cognizant agency, in order to fulfill the cognizance responSibilities. Smaller governments not assigned a cognizant agency will be under the general oversight of the Federal agency that provides them the most funds whether .~irectly or indirectly. b. A cognizant agency shall have the following responsibilities: (1) Ensure that. audit.s are n-oade and reports are received in a timely manner and in accordance with the r~;uirements of this ~ircular. (2) Provide teChnical advice ano liaison t.o State anc loczl 90ve~nrnents and incependent auditors. . . - . . . .. 9 each Federal assistance program as i~entified in the Catalog of Federal Domestic Assistance. Fe~eral programs or qrants that have not bee.n assigned a catalog number shall be identified under the caption .."other Federal assistance.. (2) ~e auditor's report on the study and !valuation of internal control .ystems must identify the organization'. aignific!nt internal accounting controls, and those controls designed to provide reasonable assurance that 'ederal programs are being aanaged in compliance with 'laws and regulations. It lDust also identify the controls that were evaluated, the controls that were not evaluated, and the material weaknesses identified as a result of the evaluation. (3) The aUditor's report on compliance containing: .. . a statement of positive assurance with respect to those items tested for compliance, includi~g ~mpliance with l.w and regulations pertaining to financial reports and claims for a~vance.s an~ reimbursements; "0_ negative assurance on those items not tested; a summary of all instances of noncompliance; and an identification of total amounts questioned, if any, for each Federal assistance award, as a result of noncompli~nce . b. The three parts of the audi t report may be bound into a single report, or presented at the same time as separate documents. c. All fraud abuse, or illegal acts or indications of such acts, including all questioned costs found as the result of these acts that auditors become aware of, should normally be covered in a separate written report submitted in accordance with paragraph 13f. d. In add1tion to the audit report, the recipient shall provide.comments on the findings and recommendations in the report, including a plan for corrective action taken or planned and com- ~nts on the status of corrective action taken on prior findings. If corrective action is not necessary, a statement describing the reason it is not should accompany the audit report. . e. The reports shall be made available by the State or local government for public inspection within 30 days after the co~letion of the audit. . f. In accordance with qenerally accepted government audit standards, reports shall be submitted by the auditor to the' organi- %ation ac~ited and to those requiring or arranging for the a~dit. In addition, the recipient shall submit copies of the reports to e~ch rEde~al department or agency that provided Federal assist~nce funds to t~e recipient.' Subrecipients shall submit copies to recipients the: provided them Federal assist~nce funds. The reports Shell be sent within 30 days after the co~?letion of the auoi~. bu~ ':""'t""'l '21"'a.. .........._ ,...__ _.___ _c..__ ...L._ --~ -, .- 11 -- withholding or disallowing overhead costs, and -- suspending the Federal assiltance agreement.until the audit is Dade. 18. Auditor Selection. In arranging for au~it services Slate and local governments shall follow the procurement standards prescribed by Attachment 0 of Circular A-102, .Uniform requirements for grants to State and local governments.- The standards provide that vhile recipients are encouraged to enter into intergovernmental agree- .~nt. for audit and other services, analysis should be aade to determine whether it vould be more economical to purchase the services from private firms. In instances vhere use of such inter- governmental agreements are. ~equired by State statutes (e.g.,. audit services) these statutes vill take precedence. . 19. Sm!ll end Minoritv Audit Firms. Small audit firms and audit firms owned and controlleO by socially and economically disadvan- taged individuals .shall have the maximum practicable opportunity to participate in contracts awarded to fulfill the requirements of this Circular. Recipients of Federal assistance ahall take the following steps to further this goal: a. Assure that small audit firms and audit firms ~wned and contr~lled by socially and economically disadvantaged in1ividuals are used to the fullest extent practicable. b. Make information on forthcoming opportunities a~ilable and arrange timeframes for the audit so as to encourage and facili- tate ~rtici~tion by small audit firms and audit firms owned and controlled by SOCially and economically disadvantaged individuals., c. Cons~der in the contract process whether firms competing for larger audits intend to subcontract with small audit firms and ludlt firms owned and controlled by socially and economically disadvantaged individuals. d. Encourage contracting with s~ll audit firms or audit firms owned and controlled by socially and economically disadvan- taged individuals which have traditionally audited government -programs and, in such cases where this is not possible, assure that these firms are given consideration for~audit subcontracting opportunities. e. Encourage contracting with consortiums of small audit firms ~s described in par~graph (a) above when a contr~ct is tOO large for an individual small audit firm or audit firm o-n~d and controlled by socially and economically disadvantaged individualS. f. Use the services ~nc ~ssistance, ~s appropriate, of such orgEniz~tior.s as the Sm3ll Business Administration in the soliclt~- tion and utili%~tion of small ~udit firms or audit firms owned and controlled b! socially and ~conomically 6isadvant~ged individualS. .. . .. . . . C ir cu lar A-128 Attachment Definition of Hajor Program as Provided- in P.L. 98-502 -Major Federal Assistance Program,. for State and local governments having Federal assistance expenditures between $100,000 and $100,000.000, means any program for which Federal expendit~res during the applicable year e~ceed the larger of $300.000, or 3 percent of such total expenditures. ----..Where total expenditures of Federal assistance exceed $100,000,000, - the following criteria apply: Total Expenditures of Federal Financial Assistance for All Programs more than but less than Major Federal Assistance Program Heans any Program That Exceeds $100 million 1 billion 2 bi_lion 3 billion 4 billion 5 billion 6 billion over i billion 1 billion 2 billion 3 billion 4 billion 5 billion 6 billion 7 billion $ 3 million 4 million 7 million 10 million 13 million 16 million 19 million 20 million APPENDIX B Assurances and Certifications ~ U.s. o.~ of.ltallCl \WI 0Ii<< qlc-uy 0rWIwd l'oIldtr1 s,,..l<<s ASSURANCES Several provisions offederaJ Jaw and policy apply to aU grant programs. We (the Office of Community Oriented Policing Services) need to secure your assurance that you (the applicant) will comply with these provisions. If you would like further information about any of the _matters on which we seek your assurance, please contact us. By yo~ authorized representative's signature, you assure us and certify to us that you will comply with aU legal and administrative requirements that govern the applicant for acceptance and use of federal grant funds, In particular, you assure us that: 1. You have been legally and officially authoriZed by the appropriate gpveming body (for example, mayor or city coun- cil) to apply for this grant and that the persons signing the application and these assurances on your behalf are autho- rized to do so and to act on your behalf with respect to any issues that may arise during processing of this application. - 2. You will comply with the provisions of federal law which limit certain political activities of your employees whose prin- cipal employment is in connection with an activity financed in whole or in part with this grant These restrictions are set forth in 5 U.S.C. S 1501, 11..ug. 3. You will comply with the minimum wage and maximum hours provisions of the Federal Fair Labor Standards Act, if they apply to you. 4. You will establish safeguards, if you have not done so already, to prohibit employees from using their posit:"'ns for I purpose that is, or gives the appearance of being, moti- vated by a desire for private gain for themselves or others, perticularly those with whom they have family, business, or other ties. 5. You wilf give the Department of Justice or the Comptrol- ler General access to Ind the right to examine records Ind documents related to the grant 6. You will comply with III requirements imposed by the Department of Justice as a condition or administrative re- quirement of the grant. with the program guidelines, with the requirements of OMB Circulars A-!7 (goveming coat cal- culations) and A-128 (goveming audits), with the applicable provisions of the Omnibus Crime Control and Safe Streets Ad of 1968, as amended, with 28 CFR Part 66 (Uniform Administrative Requirements), with the provisions of the current edition of the Office of Justice Programs Financial and Administrative Guide for Grants, and with all other ap- plicable lawa, orders, regulations, or circulars. 7. You will,to the extent praetiCllble end consistent with IPPlicable I~w, leek, recruit, and hire members of racial and ethnic minority groups Ind women in order to further effec- tive law enforcement by increasing their rankl within the swom positions in your agency. 8. You will not, on the ground of race, color, religion, na- tional origin, gender, disability or age, unlawfully exclude any person from perticipation in, deny the benefits of or em- ployment to any person, or subject any person to discrimi- nation in connection with Iny programs or activities funded in whole or in part with federal funds. These civil rights re- quirements are found in the nondiscrimination provisions of the Omnibus Crime Control and Safe Streets Act of 1968, as amended (42 U.S.C. S 3789(d)); TrUe VI of the Civil Rights Act of 1964, IS amended (42 U.S.C. S 2000d); the I~dian Civil Rights Act (25 U.S.C. is 1301-1303); Section 5'4 of the Rehabilitation Act of 1973, as amended (29 U.~ C. S 794); Trtle II, Subtitle A of the Americans with Disal ;Iities Act (ADA) (42 U.S.C. S 12101, 11.eg.); the Age DisCl"ina- tion Act of 1975 (42 U.S.C. S 6101, 11....eg.); and [epart- ment of Justice Non-Discrimination Regulations ~ .tained in Title 28, Parts 35 and 42 (subparts C, D, E and G ' of the Code of Federal Regulations. A. In the event that any court or ad", strative agency makes a finding of discrimination on ground} of race. color, religion, national origin, gender, disability or IQ J against you after a due process hearing, you agree to brward a copy of the finding to the COPS Lega' Division, ~ 100 Ver- mont Avenue, NW., Washington, DC 20530. B. If you are applying for a grsnt of $500,000 or more and Department regulations (28 CFR 42.30111.ug.) require you to submit I current Equal Opportunity Employ- ment Plan, you will do so at the time of this application, if you have not done so in the past If you are applying for a grant of less than $500,000 and the regulations require you to maintain a Plan on file in your office, you wilt do 10 within 120 days of your grant award. 9. You will insure that the flcllities under your ownership. lei" or lupervision which shalt be utilized in the accom- plishment of the project are not listed on the Environmental Protection Agency's (EPA) list of Violating Facilities and that you will notify us if you are adviled by the EPA indicating thet e fecility to be used in this grant ia under consideration for lilting by EPA. 10. If your ltate has established I review and comment procedure under Executive Order 12372 and has selected this program for review, you have made this applicatioruvail- Ible for review by the State Single Point of Contact. I hereby certify compliance with the above assurances that govern the application and use of Federalfunds IlQnature Appendix A. Legl' A..urlne" Oats - ~ US lNpmr",,,,, of JllSliee '5' Office ofC-lty Orlenled Poliem, Se",iees CERTIFICATIONS REGARDING LOBBYING; DEBARMENT, SUSPENSION AND OTHER RESPONSIBILITY MATTERS; DRUG-FREE WORKPLACE REQUIREMENTS; COORDINATION WITH AFFECTED AGENCIES; AND NON-SUPPLANTING - Although the Department of Justice has made every effort to simplify the application process, other provisions of federal law require us to seek your certification regarding certain matters. 'Applicants should read the regulations cited below and the instructions for certification included in the regulations to understand the requirements and whether they apply to a particular applicant. Signature of this fonn provides for compliance with certification requirements under 28 CFR Part 69, "New Restrictions on Lobbying" and 28 CFR Part 67, "Government-wide Debannent and Suspension (Nonprocurement) and Government-wide Requirements for Drug-Free Workplace (Grants)," and the coordination and non-supplanting requirements of the Public Safety Partnership and Community Policing Act of 1994. The certifications shall be treated as a material representa- tion of fact upon which reliance wilJ be placed when the Department of Justice dt:tennines to award the covered grant. 1. LOBBYING As required by Section 1352, Title 31 of the U.S. Code, and implemented at 28 CFR Part 69, for persons entering into a grant or cooperative agreement over $100,000, as defined at 28 CFR Part 69, the appJica.1t certifies that: (a) No Federal appropriated funds have been paid or will be paid, by or on behalf of the u,ldersigned, to any person for influencing or attempting to j, lIuence an officer or employee of any agency, a Membt.: "f Congress, an officer or em- ployee of Congress, or an . Tlployee of a Member of Con- gress in connection with thr. making of any Federal grant, the entering into of any ,"l() erative agreement, and the ex- tension, continuation, rent...aJ, amendment, or modification of any Federal grant or coooerative agreement; (b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal grant or cooperative agreement, the un- dersigned shall complete and submit Standard Form - LLL, "Disclosure of Lobbying Activities," in accordance with its instructions; (c) The undersigned shall require that the language of this certification be included in the award documents for all lubawards at all tiers (including subgrants, contracts under grants and cooperative agreements, and subcontracts) and that all sub-recipients shall certify and disclose accordingly. 2. DEBARMENT. SUSPENSION, AND OTHER RESPON- IIB~'TY MATTERS (DIRECT RECIPIENT) As required by Executive Order 12549, Debarment and Sus- pension, and implemented at 28 CFR Part 67, for prospec- tive participants in primary covered transactions, as defined at 28 CFR Part 67, Section 67.510- A. The applicant certifies that it and its principals: (i) Are not presently debarred, suspended. proposed for debarment, declared ineligible. sentenced to a denial of Fed- eral benefits by a State or Federal court, or voluntarily ex- Appendix A. Leva' C.rtI~atIon. c1uded from covered transactions by any Federal depart. ment or agency; (ii) Have not within a three-year period preceding this appli- cation been convicted of or had a civil judgment rendered against them for commission of fraud or . criminal offense in connection with obtaining, attempting to obtain, or per: forming public (Federal, State, or local) transaction or con- tract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, mak- ing false statements, or receiving stolen property; (iii) Are not presently indicted for or otherwise criminally or civilly charged by a govemmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (A)(ii) of this certification; and (iv) Have not within a three-year period preceding this ap- plication had one or more publiC transactions (Federal, State, or local) terminated for cause or default; and B. Where the applicant is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this application. 3, DRUG.FREE WORKPLACE (CRANTEES OTHER THAN INDIVIDUALS) As required by the Drug-Free Wof1(place Act of 1988, and implemented at 28 CFR Part 67, Subpart F, for grantees. as defined at 28 CFR Part 67 Sections 67.615 and 67.620 - A. The applicant certifies that it will or will continue to pro- vide a drug-free wof1(place by: (i) Publishing a statement notifying employees that the un- lawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; (ii) Establishing an on-going drug-free awareness program to inform employees about - (a) The dangers of drug abuse in the workplace, (b) The grantee'. policy of rNlintllning I drug-fret wort<. pllce; . (c) Any available drug counseling, nthabilitation, and em- ployee assistance programs; and (d) The 98f1atties th8t may be imposed upon employees for drug abuse violations occurring ,in the wor1<place; (Iii) Making it a- requirement that each employee to be en- gaged in the performance of the grant be given a copy of the atatement required by paragraph (i); . (Iv) Notifying the employee in the .tatement required by pa~raph (i) that, IS a condition of employment under the grant. the employee will - (a) Abide by the terms of the statement; and (b) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the work- place no later than five calendar days after such conviction; (v) Notifying the agency, in writing, within 10 calendar days after receiving notice under subparagraph (iv)(b) from an employee or otherwise receiving actual notice of such con- viction. Employers of convicted employees must provide notice, including position title, to: COPS Program, P.O. Box 1<U40, Washington, D.C. 20044. Notice shall include the identification number(s) of each affected grant; (vi) Taking one of the following actions, within 30 calendar days of rect. ling notice under .ubparagraph (iv)(b), with respect to any employee who is so convicted - (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by . Federal, State, or local health, law enforcement or other appropriate agency; (vii) Making a gooc:l faith effort to continue to maintain a drug-free workplace through implementation of paragraphs (i). (ii), (iii), (iv), (v), and (vi). B. The grantee rNlY In..rt in the .pace provided below the .ite(s) for the performance ofWOf1< done in conlleCtion with the specific grant: Place of Performance (Street address, city, county. state. zip code) Check C If there are wor1<places on file that are not identi- fied here. Section 67.630 of the regulafions provides that a grantee that is a Statf! may elect to make one certification in each Federal fiscal year, a copy of which should be included with each application for Department of Justice funding. States and State agencies may elect to use OJP Form 4061n. Check [J If the State has elected to complete OJP Form 4061n. 4, COORDINJ nON The Public S. ety p.rtnership and Community Policing Act of 1994 requ' IS applicants to certify that there hIS been appropriate r >ordination with all agencies that may be af- fected by.h: applicant's grant proposal if approved. Af- fected agenl :es may include. among others, the Office of the Unr.1td ~ tates Attorney, ltate or local prosecutors. or correctio ., tgencies. The applicant certifies that there has been appr... ,riate coordination with aU affected agencies. S, NONoS! 'PPLANTlNG The applicant hereby certifies that Federal funds will not be used to replace or supplant State or local funds, or funds supplied by the Bureau of Indian Affairs. that would. in the absence of federal aid, be made available to or for law en" forcement purposes. The applicant further certifies that funds required to pay the non-federal or "cash match" portion of the grant program shall be in addition to funds that would otherwise be made available to or for law enforcement purposes. As the duly authorized representative of the applicant. 1 hereby certify that the applicant will comply with the above certifications. "ntH Name and Add,.. AppIIc:etIon Number encllor Project Name Gl1IntM IRSNendor Number Typed Neme .nd TItle of Authortzed Repreaem.tlve SlgMtuI1l Appendix A. Leg.' Certlflcetlonl Deta APPENDIX C Regional Offices of the Inspectors Generalfor Audit ; . Department of Justice Office of the Inspector General for Audit . Audit Offices Addresses and Geographical Area of Responsibility Rqional Offices .Clut F. Cooper, Atlanta Regionallnspector General for Audit 101 Marietta Street, Suite 2322 Atlanta, GA 30323-240 I (404) 331-S037 fAX: (404) 331-5046 Geoll"aphical Area of Responsibiliey Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, Tennessee, South Carolina, Puerto Rico, Virgin Islands _ Robert C. Gruensfelder, Chicago Regional Inspector General for Audit SOO W. Madison, Suite 35 I 0 Chicago, Il 60661-2550 (312)353-1203 FAX: (312) 886-0513 Illinois, Indiana, Nebraska, Michigan, Minnesota, Ohio, Wisconsin, Iowa, Kansas, Missouri George W. Stendell, Dallas Regional Inspector General for Audit 207 S. Houston St., Box 4, Rrn, 575 Dallas, TX 75202-4724 (214) 655-5000 FAX: (214) 655-5025 Arkansas, louisiana, New Mexico, Oklahoma, Texas David Sheenen, Denver Area Assistant Regional Inspector General for Audit C' }Ionnade Center Federal Building 1244 Speer Blvd., Suite 640 Denver, CO 80204 (303) 844.3638 FAX: (303) 844-2780 Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming M. Thomas Clark, San Francisco Regional Inspector General for Audit 1200 Bayhill Dr., Suite 201 San Bruno, CA 94066 (4 I 5) 876-9220 FAX: (415) 876-0902 Alaska, Arizona, California. Hawaii, Idaho, Nevada, Oregon, Washington, American Samoa, Guam, Trust Territories of the Pacific Islands, Commonwealth of Northern Marianna Islands Domenic A. Zazzarro, Northeast Regional Inspector General for Audit 1425 New York Ave., NW, Suite 6001 Washington, D.C. 20530 (202) 616-4688 FAX: (202) 616-458 I District of Columbia, Maryland, Virginia, West Virginia David Andelman, NE Area Assistant Regional Inspector General for Audit 701 Market St, Suite 201 Philadelphia, PA ]9106 (215) 580-2111 FAX: (215) 597-1348 COMccticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, PeMsylvania, Rhode Island, Vemont t <l >. ~ ~ t\ b Addendum to the Grant Owner's Manual . .. - . . EXECUTive OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 2010:1 .- Apri 1 12. 1985 CIRCULAR No. A-l~8 'TO THE: HEADS OF EXECUTIVE DEPARrKENTS AND ESTABLISHMENTS. SUBJECT: AucUts of State an4 Loca~ GoverMlents. 1. Purpose. This Circular is issued pursuant to the Single Audit Act of 1984, P.L. 18-502. It ..tabllsh.. audit requirements ~ ~t.~ 1rm5 teeai ..,..,......~IoI....~IM ~ -re'Cel". -Pe-aert'l ala,. an4' ~ef1nes Federal responsibilities for taplementing and monitoring those. requirements. .. 2. Supersession. The Circular .upersedes Attach=ent p. -Audit ReQuirements,. of Circular 1.-102, .UniforM requirement. for grants to State .nd local governments.. 3. Backoround. 'The Single Auc51 t Ac. t bu 11c5s ur~n _arller effort.s to i~~rove audits of rederal aid programs. The Act reQuires State or local governments that recelve.$IOO,OOO or more a ;~~r in Federal funds to have an audit ~de for.that year. Section 7505 of. the Act requires the Direct.or of t~e Office of Management and Bud;et t9 pre.~ribe policies, procedures and guidelin.. to . implement the Act. It specifie. that the Director shall c5eslgnat.e .co;nizante Federal agencies; deter1'l11ne cr~teria for making appro~ri!te charges to Federal .programs for the cost of auc51ts, and provide procedures to assure that smail firms or firr.~ owned an~ controlled by c5isadvantaged indivic5uals have the opportunity . to participa te in contracts for 81ngle audits. . ... "'_~l...y "Uol~... . ~he Single Audit Act requires the following: a. State or local governments ~hat. receive $lOO,OPO or more a year in Federal financial as.istance shall have an audit made in accoreance with this Circular. b. State or local governments that receive between $25,000 ar:~ SlOO,ooO a year shall have an audit IUde in accordance with n. i s C i =- cu la r f or in a ccorda nce wi th Fe dera 1 la vs and regu la t ions ~cve:~:n; the programs they participate in. c. State or local govern:nents that receive less thlH\ S25,OOO a year shall be exempt from compliance with the Act and other Feoeral audit requirements. Thes~ State and local ~overn~ents shall be governed by audit requirements prescribed by State or locel law or regulation. 2 d. Nothing in this paragraph exempts State or local governments ~rom mainta~ning records of Federal financial assistance or from provlding access to such records to Federal agencies, as. provided for in Federal law or in Clrcu'Iar A-102, .Uniform requirements for grants to State or local governments.- 5. Definitions. For the purposes of this Circular the following definitions from the Single Audit Act .pply: a. .Cognizant agency. ..eana the Federal agency ..slgn'8d by . the Office of Management and Budget to carry out the responsibil- ities described .in paragraph 11 of this.Circular. - b. · Fede.ral fir.ancia1 ..siatance. .ea n. ass istance. provl~ed by a Federal.age~...1 in t.he ~or. of grant., con.t.racts, cooperative- agreements, loans, loan guarantee., property~ Interest subsidies, insurance, or direct .ppropriatlonsl but doe. not lDcl~ ~(rA~t h6u,.i ~I~niytance to 1nClv14uals. .. t,t Jncludes .vards. . received directly from rederal agencies, or Indirectly through other units of ~t.a te and local governments. . . . c. .Federal agency. has the same .eaning a. the term. 'agency' 1n section 551(1) o~, Title 5, United States Code.' . .. I -1 d. --Generally. accepted accounting prinCiples. has the ~eaning specified. in the generally accepted government auditing standar ds. .. . e. -Generally accepted government auditing standards. ~eans the Standards For Audit of Government Oroanlzatlons, Proqrams,. Activities, and Functions, developed by the Comptroller.General, dated February 27, 1ge1.. ' f. i -Independent auditor- means: . , . II . . (11 . Sta t~ or local ~overnment aucU tor who meets the independence standards specifie~ in generally. accepted government auditing standards; or. . . . . (21 a public accountant who meets such independence stander ds. Q. .Internal controls. ~ans the plan of or~anization and methods and procedures adopted by management. to ensure that: (1) and policies: resource use is consistent with Laws, regulations, ( 2 ) ls~se; 4!nc resources are safeQuarded against Waste, loss, and (3) reliable data are Obtained, maintained, and hirly _ clsc:los~~ In t"(!?orts. .. . ) ) \ .. . ""-.. . . 3 h. -Indian tribe- ..ana any Indian tribe, band, nations, Or other organl%ed group or community, including any Alaskan Native village or regional or vl1lag. corporations (as det1ned In, or established under, the Alaskan Native Claims Settlement Act) that Is recDgnized by the United States a. eligible for the sPecial progra~s and services provided by the United State. to Indiana be.caua. of their statu. a. Indians. . . 1. -Local governMent- .ean. any unit of local government within a State, including a county, a borough, Duniclpality, city, town, township, pariSh, local public authority, .peclal district, school diat~ict, intrastate district, council of governments, an~ any other In'strument.ality of local Qovernaent. j. .Major rederal "sslstanco Program,. as cSc.fined by . P.L. 58-5021 .1s ~.c"'rn...".La.&M ..&;~C_t.t .. ....i. <k~~l.61!.. k. .Public accountants- .eans tho.e individuals who meet the qualifi~atlon standards included in generally accepted goYern~ent auditing .tandards for personnel performing government a \lC~i ts. 1. .State- meanl an:,' State of the United State., the District of Columbia, the Commonw.alth ef Puerto Rico, the Virgin Islands, Guam, American Samoa, tb. Commonwealth of the Northern Kariana Islands, and the ~ru.t ~erritory of the 'acific Islands, any instrumentality thereof, and any aulti-State, regional, or interstate entIty that bal governmental function. and any Indian tribe. m. .Subrecipient- aean. any person or government department, agency, or establishment that receives rederal fin~ncial assistance to carry out a program through a State or local government, but doe. not include an individual that is a benefiCiary o~ .uch a program. A .ubrecipient DaY also be a direct recipient of rederal financial assistance. . 6. Seo~e of audit. ~he S1ngle Audit Act prov1des that. . a. The audi t sha 11 be .... de by an independent auditor in accordance with generally accepted government auditing standards coyer in; financial and compliance audits. b. The audit _hall cover the entire operations of a State e:- local ~overn",ent or, at the option of that gover'M\ent, it may cc~e: ce~artments, agencies or establishments that received, ex~e~cec. or otherwise administered Federal financial assis~ance C~=-in~ the year. However, if . titate or local 9overn~ent receives ~25.000 0:- more in General Revenue Sharing Funds 1n a fiscal ~ear, It Shall have an audit of its entire operations. A series of &~cits of individual departments, a~encies, and establis~ents for the sa~e fiscal year may be considered a .in~le audlt. ..e , c ... c. Public hospitals and public colleges and universities ~y be e~cluded from State And local audit. and ~he requirement. of this Circular. However, if auch entities are exciuded, audit. of the.e entities shall be ..de 1n accordance with statutory requltements and the provisions of Circular A-I10, .Uniform requirement. for grants to universities, hospitals, and Other nonprofit organizations.. d. The auditor shall determine vhethera (1) the financial statements of the governa,nt, departnent, agency or e.tabli.~ent pr~.ent fairly its financial position an~ the re.ult. of Its flnaDcial operatton. In accorcSance vjth generally accepted .ccountlng prlnclples, . . t. (2) the organization has IntarAIJ :'r"'t\l'v4~;CLA4.otM:' ~TTt'ro1 .ystems to provIde reasonable assurance that it Is . managing Federal financial a.slstance program. In compliance with applicable laws and. regulations, .nd . (3) the organization has complied with laws and regula- tions that may have material eftect on it. financial statements and on each major rederal ...istance progra~. , . 7. FreQuency of audit. Audits shall be Dade annually,unle.s the State or local government ha., by January 1, It87, . constitu- tional or statutory requirement for le.s 'frequent audit.. 'or those-governments, the cognizant agency ahall permit biennial audits, covering both year., If the government so requests. It shall also honor requests for biennial audi~s by governments that have an ad~inistrative policy calling for a~dlts less frequent than annual, but only for fiscal year. beginning before January 1, 1987. ) 8. Internal ~ontro1 and compliance reviews. The Single Audit Act reQuires that the independent auditor determine and report on vhether the organization has internal control systems to provide reasonable assurance that it is nanaging rederal as.istance pro;r!~s in co~pli.nce with applicable laws an4 regulations. a. Internal control ~evi.v. In order to provide this assurance the auditor ~u.t make a study and ev.l~atlon of internal control systems used in administering rederal assistance programs. The study and evaluation .ust be made whether or not the auditor intends to place reliance on such systems. As part of this reyie~, the auditor shall: (1) Test ~hether these internal control systems are functioni~g in accordlnce with prescribed procedures. (2) Examir.e the recipient's system for monitoring subrecl~ients and obtaining and acting on subrecipient audit :ef)cr..s. 1 . . , ." - - . " 5 -, b. Compliance review. The law also requIres the auc51tor to deter~ine whether the organization bas complied wlth 1a"s and regulations that lI\I.y bave a .aterial effect on each. major reeSeral assistance ~rogr.nl. . (1) In order to determlne whlch ..jor progra.. are to be teste~ for compliance, State and local governments aball ld.ntify in their accounts all red,ral funds received and expende~ and the programs under which they were received. This aball Inclu~e fun~s recelved directly from Federal agencle. an~ ~hrough other State .n~ local governments.. . (2) The review must include the .election and t.sting of a represent.a tlve nWllber of charges frem .ach Njor red.eral . ,'I"rln.an~e lJrcgnm. -z11e .e~ect10n ana .testlng of transactions shall be based on the auditor's profeaaional judgment considering such. factors a. the amount of expenditure. for the prograM and the lndivi~ual avards; the newnes. of the program or change. in its con~ition.: prior experience with the program, particularly as revealed in .u~its and other evaluations (e.G., inspection., ~rogram rev!ews)1 the extent to which the program Is carried out through sUbrecipient.J the extent to which' the program contracts for goods or services: the level to which the program 1. already subject to program revie"s or other forms of lnde~ndent oversight; the adequacy of the controls .for ensuring compliance, the expectation of adherence or lack of adherence to the applicable laws and regulations, and the potential Impact of adverse findings. .. (a) In making the test of transactions, the .~~itor shall determine whethera . -- the amount. reported as expenditure. ~ere for allowable services, and -- .the records show that those vho received .ervices or benefits vere eligible ~o receive them. (b) In addition to transaction te.tlng,.the a~cito: shall determine whether: __ natchlng requirements, levels of effort ar.c ea:-..~rkinQ limitations vere met, . G Federal financial reports and claims for advances and reimburseMents contain information that 1. .uPported by the boo~s.and records from which the ba.l~ flnane1al' .tate..nts bave been prepared, and. . . . -- amount. claimed or u.ed for ..tchlng vere cSetermined In accordance with OMS Circular A-I'. .Co.t principles for State and local goverruaent... and Attactuaent , of Circular A-I02, .Unlfora require..nt. for grant. to Stat. and local government..- .. (c) The principal compliance req~irement. of the largest Federal aid progra~ ~y ~ ..certained by referring to the Com~liance Su~plement for Slnole Audits of State and Local Govern~ents, issued by OKI and available fr~ the Governnept , J>zj~t'i"g Qf~{('''d ~ .....9r. ~__ -.t _,J.~~ ft~ ~1i~ Supplement, the auditor ~y a.certain compliance requlrementl by researching the ltatute., regulationl, and agreements Governlng individual programs. . (3) Tra n.actions re1& ted to. other FeeSeral a..lstance programs that are .elected In connection with examinations of .. . financial- statements and evaluations of internal control. .hall be tested for compliance with rederal lavs and regulatlonl that apply to such transactions. ,.. Subreei pients. . Sta te or local government. that receive. Federal financial a.sistance and provide 525,000 or aore of It In a fiscal year to a subrecipient shall: a., determine whether State or local .ubrecipient.s have met the audit requirements of this Circular and vhether subreclplents covere~ by Circular A-IlO, .Uniform requirements for grant.s t.)t yniversities, ~ospitals, and ot.her nonprofit. organiZAtions,. have ~et that reQuireme'tJ b. determine whet.her the .ubreclplent. .pent rederal assistance .funds provided In accordance with applicable lavs and regulations. This _y be accomplished by reviewing an audit of the subrecipient made in accordance with this Circular. Circular A-llO, or through other ..ans (e.g., program revie"s) i; the ~ubrecipient has not yet had such an audl.tJ . c. ensure that appropriate corrective action 1. ~ken ~ithin six months after receipt of the audit report in Inltances Q! nc~cc~~liance with Federal laws and regulations: c. cc~sider whether subreeipient audits neeessitate ~cJ~s:~~~t o! the recipient.s own records: and e. re~uire each subreeipient to per~it independent auditors te hlve access to the records and financial statem~nts as n~cess!ry to com~ly with this ~ircular. . . . . ) ) l .- . - . . , . 10. Relation to other audit reQuirements. ~he S1ngle Audit Act provl~es that an audit ~de in accordance with this Circular ahall be in lieu of any financial or financial compliance-audit required under individual Federal aasiatance programs. ~o the extent that a lingle audit. provides FeeSeral agencies wit.h infonnatl'on and assurance. they need to carry out their overall responsibilities, t.hey shall rely upon and use auch information. Jowever. a rederal agency shall lUke any additional audita which are neceasary to carry out its responsibilities under rederal law and regulation. A'flY .ddit10~al rederal audit effort ahall be planned and .carried out in such a way as to avoleS duplication. . . a. The provisions of thia Ci~cular do not limit the authQrity of .Federal agencie. to nate, or contract for audits and evaluations of Federal financial aSlistance ,programs. nor cso. they limit the authorit.)' of al>>' Federal .~.p!'''f rIO_palO""'" ~"'Hl ~ otber 'e~eral audit official. . . . b. 'rhe provisions of this Circular do not aut.horize any State or local government or aubreciplent thereof to constrain fe~eral aQenc1es, In any manner, from carrying out. additional a ucH ts. c. A Federal agency that makes or contracts for audits in ad~ition to the audits ~de by recipients pursuant to this Circular shall, consistent with other applicable laws and re;ulations, arrange for funding the COlt of auch additional .u~its. Such additional audits include economy and efficiency au~its, proQram result.s audit.s, and program evaluat.lons. 11. Cocnizant aQency res~onsibilities. The Single Audit. Act provides for cognizant rederal agencies to oversee t.he ir.'rler:.en~a ~ion of t.his Circular. . . a. "1'he Office of Management and Budoet. will allion co;ni:ant agencies for Stat.. and their subdivisions an~ laroer lc;~l ;overr.rnent. and their subdlvi.ions. Other Federal agenci.. NY p2rt1eipate' with an a.signetS cognizant agency, in orc5er to f~lfill the cognizance responSibilities. Smaller Qovernnent.s not .s!i~ned a cognizant agency will be under the veneral ove;alght of the Federal agency t.hat. provide. t.hem t.he mOlt funds whet.her .~irectly or indirect.ly. t_. .A.c~gnizant agency shall have the following re!;:~!~:~lltles: (1) Ensure ~h2~ audits are ~ade and reports are rEcei\"ec in a timely manner and in accordance with the t ~ ~i.: ia~.~ ~ts of th is ,Ci rcu 1. r. (2) Provide technical advice and liaison to State and 10c& ~ ~o\."e:" ~l:'le n tS end i ncependent e udi tor s. . : , , . , e , ()). Obtain or aake quality control reviews of sele~ted audits Nde by non-Federal' audit. organiz.ations, arid provide the results. when appropriate, ~o other interested organl&ations. " ' . . .(4) Promptly inform other a ffecteCS reeSeral agencies and appropriate Federal 1.'1 enforcement officials 'of any.reported illegal acts or irregular.iti.s. They should also inform Sute or local law enforcement and prosecuting authoriti.s, if not advised by the recipient, of any violation of law wit.hln their jurisdiction. . . . (5) -Advise the recipient of audits that bave been found not to have met the requirements set forth In this Circular. In such instances, the recipient vill be ex~ectecS t.o'work vith the auditor to take corrective action. If correc~ive.action is not taker., the cognizant agency ahall notif,)' the. recIpient and. FeeS~ral awafeUng agencIes of the facts ancS uke recommendations for . followup action. Kajor inadequacies or.repetitive substandard perfor~nce of independent auditors shall be referred to . appropri~te ,professional 'bodies for disciplinary action. (6) Coordinate, ~o the extent practicable, audits _de by or for Federal agencies that are in addition to the audits made pursuant to this Circular; so that the additional audits build upon such audits. . . (" eversee the resolution o~ audit fineSings that affect the programs of ~ore than one agency. 12. 111eoal acts or lrre~ul.rities. If the auditor becomes aware of illegal acts or other irregularities, pro~pt notice ahall be Given to recipient management officials above the level of lnvolve- 1\Ient. (See also paragrl\ph 13<a)(3) beloy for ~he auditor's report-' in; responsibilities.) The recipient, in turn, shall promptly notify the co;nizant agency of the 111egal acts or irregularities an~ of proposed and ,actual actions, if any. Ille;al acta and irregularities' include such m.tters as' conflicts of interest, falsification of records or reports, and aisappropriations of tunds or other asset... . . 13. AUIH t ~e~orts. laudi t reports must be prepared at the. completlonof the audit. Reports .erve ..ny needs of State and local Governments AS vell as .eeting the requirements of the Single "Audi.t Act. a. The au~it report shall state that the audit was mace 1n 2CCCrC!nce with the provisions of this Circular. The report shall be rr.ace up of at least: . (1) The .u~itor's report en financial statements and on a schec~le of Federal assistance: the financial statements: and a schedule of re~eral assistance. showin; the total exp~ncitures for ~. . . . .. 9 aeh Federal assistane. program as l~entifi.d in the Catalog of Federal DOr.'lestic Assistance. re~.ral programs or c;cants t.hat hav. not been assigned a catalog number shall be identifi.d und.r the capdon "other FeeSeral ~s.i.t.ance.. (2) ~e auditor's report on the study and .valuation of Internal control systems RU.t. identify the organitation'. significtnt internal accounting control., and those control. d.sIgned to provide reasonable assur.nce that red.ral pro.grams are being ..naged in compliance with 'laws and regulations. It .u.t. also identify t.he control. that were evaluated, the controls that vere not evaluated, and the material w..tn....i identified a. a result of the evaluation. (J) %he audi tor '. report on compliance containlng: .. . -- a statement of po.itive a..ur.nce with respect t.o those items tested for complianc., includ11)g ~mpliance with l,v and re;ulltions pertaining to financial re2ort.s and claims ~r a~vances an~ relmbursement.sJ "- -- negative assurance on those items not telte~i -- . summary of all instances of noncompllanceJ and an identification of total amounts questioned, if any, for each Federal assistance award, ai a r.sult of nonco~li~nce . b. The three parts of the audit report ~y be bound into a single report, or presented at the same time al separate documentl. c. All fraud abule, or illegal acts or incHcations of such acts, inelu~in9 all queltione~ costs found as the relult of these acts thet !\.:~itors become aware of, shoulc5 normally be covere~ in a .ep!r~te ~:itten report. submitted in .ecordance with paragraph '3f. ~. In a~~'ition to the auc!it report, the recipient shall provice.co~~ents on the finc!ings and recommendations in the r.port, inclu~in9 a plan for corrective action taken or plannec! and eom- ~ents cn the statuI of corrective action taken on prior findings. If corrective action is not neees.ary, a statement describing the relson it is not should accompany the auc5it r.port. e. 1he reports shall be _cSe available by the State .or local 9QVern~fr.t for public inspection within 30 days after the . cor.:ple.:io:; of the audit. f. !n ~eeordanee with generally acceptec5 qovernment au~it Stlr.C!~CS, reoorts shall be submitted by the auditor to the or9ani- %atio~ !~:itee and to those requiring or arrangin~ for the a~oit. In a6citio~, the recipient shall submit copies of the reports to each r.ce=ll c~partment or agency that provided Federal assistance funcs to t~f recipient.' subrecipients shall submit copies to recl?i~r.:s t~l: prOvided them Federal assistance funos. The repo:ts Sh!ll be sent within 30 oays after the co~pletion of the auei:. bet ~o !l:er than one year after the end of the audit pe:iod - . ._ _"._--.~~ "1/IfII1o ..~.." .......~ ,.,."'"._...___~.. -.,.,.-...-....... .' ,- .. 10 . Q. Recipients of more than S100,000 in Federal funds Shall submit one copy of the audit report within 30 days after issuance to . central cle.ringhouseto be designated,by the Office of Management and 8udget. The clearinghouse will teep completed audit's on file and follow up with State and local Qovernments that have not submitted required audit reports. h. Recipients ahall keep audit reports on file for three years frem their issuance. _ 14. A\Jdi t Resolution. As provided 1n paragraph 11, the cognlnnt a~eney shall be responsible for aonitorlng the resolutlon of audit findings that affect the programs of aore than on- rederal agency. Resolution of findings that relate to the programs of a 81ngle rederal a~ency viii be the responsibility of the reclpten~ an~ that '~Cl.C'. ~1~~.,..... ...~ _H~I..~ h~.'" ~ 18~ ~, ~ft-'b7"'"C8.e t.sls by agreement among the agencies concerned. . . Resolution shall be aade within 8ix months after receipt of the report by the rederal depart~ents and agencies. Corrective action should proceed as rapidly as possible. 15. Au~it vorkpapers and re~orts. Workpapers and reports ahall be retained for a minimum of three years from the 4ate of the audit report, unless the auditor is notified In writlnOg by the cognizant agency to extend the retention period. Audit workpapers ahall be ~~de available upon request to the cogni%ant agency or its designee er the General Accounting Office, at the completion of the audit. 16. A\J~it Costs. 'The cost of audits made In accordance with the provisions of this Circular are allowable charges to Federal assistance ~ro;rams. , a. ~he,charges may be considered. direct cost or an allocated indirect cost, determined In accordance with the provision of Circular A-87, .Cost prinCiples for State and local governments.- b. Generally,' the percentage of costs charged to rederal assistance pro;rams for a single audit ahall not exceed the pereenu;e the t Federal funds expended represent of total funds expended by the recipient during the fi'scal' year. The percentage '~y be exceeded, hovever, if appropriate documentation demonstrates I'\i~her actual cost. . 17. S!~etions. The Single Audit Act provide. that no cost may be ch!~~e~ to Federal assistance programs for audits required by the J..r::. tro!: lfe not lllade in accordance with this Circular. 1~ cases c~ cor.:.i~~ed inability or unwillin;ness to have a proper l\Jdit. rece~al ~ceneies must consider other appropriate Alnctions . ~ . . .. :.r.e_l,;c~T'l~: -- withholding a percentage of assistance p!yment. ~ntil the au~it is comDleted 5Atisfactorilv. .. . - .. 11 -- withholding or disallowing overhead costs, and -- suspen~ing the Fe~er.l .ssistance .gree~ent.until the audit is -.de. 18. Au~itor Selection. In arranglng for .u~it services State and local Qovernments shall follow the procure.ent standards prescribed by Attac~ent 0 of Circular A-102, .Uniform require.ents for grants to State and local governments.- The standards provide that while reeir!.nts are encourage4 to enter into intergovernmental agree- .ents for audit and other services, analysis should be Dade to deter~ine whether it would be more economical to purchase the services from private firas. In instances where use of such lnter- Qovern~ental agreeme"ts .re ~.quir.d by Stat. statut.s (..g....udit service.' these statutes will take precedence. . 19. Sa!ll an~ Minority Audit Firms. Small audit firms and .udit fir~s owned and controlled by socially and economically disadvan- ta;ed lndiv1~uals .shall have the ~xlftum practicable opportunity to participate in contracts awarded to fulfill the requirements of this Circular. Recipients of Federal ass1stance shall take the follo~inQ steps to further this goall a. Assure that small audit firms and audit firms owned .nd controlled by socially and economically disadvantaged individuals are ~se~ to the fullest extent practicable. b. ~ake information on forthcoming opportunities available an~ arrange timeframes for the audit so as to encourage and facili- tat& ~rticipation by small audit firms and audit firms owned and ccntrolle~ by socially and .con~mically disadvantaged individuals. c. Consider 1n the contract process vhether firms competing for larQer audits intend to subcontract with small audit firms and lu~it firms owned and controlled by socially and economically disa~vantaQed individuals. ~. Encourage contracting with small audit fir~s or audit firr.s owned and controlled by aocially and economically di.advan- ta;ed in~ividuals which have traditionally audited government .p~o;rl~S and, in such case. where this i. not possible, .ssure that these fir~s are given consideration for~audit subcontracting c~~ort~~ities. . f. tr.couraoe contracting with consortiums of small audit fir~~ !s eescribed in paragraph <a) above when a contract is too l!~ ~c: ci. individual small audit firm or audit firm own~d an~ cC. olle~ by socially and economically disadvantaQed individuals. ~ ~se the services anc assistance. as appropriate. of such cr;!r.i:!tior.s as the S~ll Business ^dministration in the solicite- tic~ !~C utili:ation of small audit firms or audit firms owned and c=nt:clle~ b~ socially ~n~ ~conomically disadvantaQed individuals. .. 12 .. ) 20. ~e~orting. Each Federal agency will report to the Director of OK8 on or before ~rch 1, 1'87, and annually thereafrer on the effectiveness of State and".local governments :in carrying Clut the proviltons of this Circular. The report must identify e~ch State or local government or Indian tribe that, in the opinion'of the agency, is failing to comply with the Circular. . 21. ~eQulations. Each rederal agency ahal1 Include the provisions of thIs Circular in its regulations Implementing the Single Audit Act. .. 22. Effective date. This Circular is effective upon publl~~lon and shall apply to fiscal yeara of State and local governments that begin after December 31, 1'84. Earlier jmple~entatlon.l~. .ac:.e..c.e~ 4io'-e''I~, 4M\tii (~ '- ~k..Jlrrt'4~, ~.~~. ~"",...1..1~.,!a of At~chment P to Circular 1.-102 ahall continue to be observed. . 23. Inquiries. All questions or inquiries should be addr.ssed to Financial Management Division, Office of Management and Budget, telephone nu~er 202/3'5-39'3. 24. Sunset review date. This Circular shall have an independent policy reVleW to ascertain its effectiveness three years from the i <Sate of issIJance. I- ~-~- David A. Stockman Director \ ". . .. ... . J . . . Circular '--128 Attachment De!in! tion of liajor Program as Provided- in P.L. 98-S02 -Kajor Federal Assistance Program,- for State and loeal 90vernments baving Federal assistanee expenditures between 5100,000 and $100,000,000, means any program for whicb Federal .xpendit~res durin; the epplicable year exceed the larger of 5300,000, or 3 percent of such total expenditures. Where total expenditures of Federal assistance exceed 5100,000,000, the follo-ing criteria apply: · ~otal Expenditures of Federal Financial Asslstance for All Programs ~o:e than but less than liajor Federal Assistance Program Keans any Program That Exceeds s , CO JT,illlon 1 billion 2 billion 3 billion 4 billion 5 b i 11 ion E billion c\'~: i billion , billion 2 billion 3 billion 4 billion S billion 6 billion 7 billion S 3 million 4 million , million 10 million 13 ruillion 16 million 19 million 20 1tillion 96-152 "