Cash receipts are collected and logged by the Operations Clerical Support. The Operations Clerical Support is required to issue a receipt for all cash received. Cash receipts are given to the accounting department immediately after they are logged by the Operations Clerical Support. Each bank deposit made by the accounting department is reconciled to the cash receipts log maintained by the Operations Clerical Support and against the general ledger cash account by the Accounting Manager.

1.02 Accounts Payable

Accounts payable coordinator receives and reviews all invoices against approved check request/purchase requisition, purchase order and packing slip. If the invoice is 10% or more than the supporting purchase order the variance must be approved by a director before the invoice can be paid. In addition, the accounts payable coordinator ensures the purchase order is coded to the correct general ledger account.

Accounts payable coordinator prints checks weekly. Before checks can be printed the accounts payable coordinator and another accounting staff retrieve the amount of check stock necessary from a secured cabinet. The Accounts payable coordinator will record the date and check stock numbers taken for the check run and sign their name in the log. The second accounting staff will review the recording of the check stock numbers and then sign the check stock log.

Checks produced as a result of the check run will be presented to the Accounting Manager. The Accounting Manager will review the checks and back up documentation for correctness. The checks will then be forwarded to a director for review and signature. All checks must be signed by a director.

1.03 Accounts Receivable

Accounts receivable will be established to cover current payable obligations. Accounts receivable general ledger account will be reconciled monthly.

1.04 Check/Stock Security

Checks and check stock are secured in the Accounting Manager office. Access to checks and check stock is available to only the accounting staff. All check stock must be signed out using the check stock log. Two individuals from the Accounting Department must sign and attest to why the check stock was removed. The Accounting Manager will audit the check stock log monthly when performing the bank account reconciliation.

All checks waiting for review or signatures must be attended at all times. If not attended, checks must be locked in the Accounting Manager’s office.

1.05 Federal Cash Draw Downs PMS (Payment Management System

All cash drawdowns from the PMS are made after all invoices are processed for payment or received from the vendor in the cases of ACH transactions. PMS drawdowns for payroll are made after payroll is submitted for processing. This process reduces the federal cash on hand to the time it takes for the checks or ACH transactions to clear the bank.

The Accounting Manager will review the general ledger Head Start cash account daily and request the funds needed to cover reimbursable expenses through the PMS.

1.06 Allowable Cost

All Head Start grant related expenses must be allowable. To be classified as an allowable cost the expenditure must be in accordance to the guidance contained within the grant award letter and OMB Circular A-122 which are as follows;

Factors affecting allowability of costs

To be allowable under an award, costs must meet the following general criteria:

1. Be reasonable for the performance of the award and be allocable thereto under these principles.
2. Conform to any limitations or exclusions set forth in these principles or in the award as to types or amount of cost items.
3. Be consistent with policies and procedures that apply uniformly to both federally-financed and other activities of the organization.
4. Be accorded consistent treatment.
5. Be determined in accordance with generally accepted accounting principles (GAAP).
6. Not be included as a cost or used to meet cost sharing or matching requirements of any other federally-financed program in either the current or a prior period.
7. Be adequately documented.

2. Reasonable costs

A cost is reasonable if, in its nature or amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the costs. The question of the reasonableness of specific costs must be scrutinized with particular care in connection with organizations or separate divisions thereof which receive the preponderance of their support from awards made by Federal agencies. In determining the reasonableness of a given cost, consideration shall be given to:

1. Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the organization or the performance of the award.
2. The restraints or requirements imposed by such factors as generally accepted sound business practices, arms length bargaining, Federal and State laws and regulations, and terms and conditions of the award.
3. Whether the individuals concerned acted with prudence in the circumstances, considering their responsibilities to the organization, its members, employees, and clients, the public at large, and the Federal Government.
4. Significant deviations from the established practices of the organization which may unjustifiably increase the award costs.

3. Allocable costs

a. A cost is allocable to a particular cost objective, such as a grant, contract, project, service, or other activity, in accordance with the relative benefits received. A cost is allocable to a Federal award if it is treated consistently with other costs incurred for the same purpose in like circumstances and if it:

(1) Is incurred specifically for the award.

(2) Benefits both the award and other work and can be distributed in reasonable proportion to the benefits received.

(3) Is necessary to the overall operation of the organization, although a direct relationship to any particular cost objective cannot be shown.

b. Any cost allocable to a particular award or other cost objective under these principles may not be shifted to other Federal awards to overcome funding deficiencies, or to avoid restrictions imposed by law or by the terms of the award.

Applicable credits

The term applicable credits refers to those receipts, or reduction of expenditures which operate to offset or reduce expense items that are allocable to awards as direct or indirect costs. Typical examples of such transactions are: purchase discounts, rebates or allowances, recoveries or indemnities on losses, insurance refunds, and adjustments of overpayments or erroneous charges. To the extent that such credits accruing or received by the organization relate to allowable cost, they shall be credited to the Federal Government either as a cost reduction or cash refund, as appropriate.
In some instances, the amounts received from the Federal Government to finance organizational activities or service operations should be treated as applicable credits. Specifically, the concept of netting such credit items against related expenditures should be applied by the organization in determining the rates or amounts to be charged to Federal awards for services rendered whenever the facilities or other resources used in providing such services have been financed directly, in whole or in part, by Federal funds.
For rules covering program income (i.e., gross income earned from federally-supported activities) see Sec. __.24 of Office of Management and Budget (OMB) Circular A-110, “Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations.”

1.07 Program Cost Allocation Plan

Expenditures for the benefit of all Federal funded Head Start programs will be allocated based on an allocation plan. The allocation methodology will be maintained by accounting and used to support the allocation of shared expenses.

1.08 Administrative Cost

Costs classified as development and administrative costs are costs related to the overall management of the program. These costs can be in both the personnel and non-personnel categories.

Shasta Head Start charges the costs of organization wide management functions as development and administrative costs. These functions include planning, coordination, and direction; budgeting, accounting, and auditing; and management of purchasing, property, payroll and personnel.

Development and administrative costs include, but are not limited to, the salaries of the executive director, personnel officer, fiscal officer/bookkeeper, purchasing officer, payroll/insurance/property clerk, janitor for administrative office space, and costs associated with volunteers carrying out administrative functions.

Development and administrative costs include expenses related to administrative staff functions such as the costs allocated to fringe benefits, travel, per diem, transportation and training.

Development and administrative costs include expenses related to bookkeeping and payroll services, audits, and bonding; and, to the extent they support development and administrative functions and activities, the costs of insurance, supplies, copy machines, postage, and utilities, and occupying, operating and maintaining space.

1.09 Contract/Lease Management

All contracts and leases are negotiated by a Director or CFO and are maintained by the CFO.

The CFO also ensures that any facility lease where renovations of $250,000 or more were completed on the facility will include a Notice of Federal Interest in the lease.

1.10 Budgeting

Annually, a budget will be established by the Accounting Department using input from the Policy Council, Board of Directors, Management staff, economic conditions, and funding sources.
All budgets will conform to grant guidance.

1.11 Grant Award Letters

Grant award letters will be maintained by the Accounting Manager. The grant award will be recognized with the refunding application to ensure the accurate number of children to be served, program options, BASIC and Training & Technical Assistance funding, Indirect Costs, Non-Federal Share, etc., are reported by the Administration for Children and Families (ACF), Regional Office. Any differences will be reviewed with ACF by the Chief Financial Officer and reconciled.

1.12 Financial Reporting

In order to measure the financial performance of Shasta Head Start, monthly financial statements will be produced by the Accounting Department and reviewed by Management, Policy Council, and the Board of Directors. The Accounting Manager will prepare the monthly financial statements by the 15^th of the month following the month being reported. The monthly financial statements will include a statement of operations.

In accordance with Federal requirements, the monthly financial reports will also include: credit card expenditures, projections of expenditures to the end of the program year, administrative costs and non-federal share.

b. The Accounting Manager will reconcile all balance sheet accounts on a monthly basis. Any unusual balance sheet activity will be noted and reported to the Chief Financial Officer.

c. Bank reconciliations will be completed by the Accounting Manager 10 business days after receipt of the bank statement. Bank reconciliations will be reviewed by the Chief Financial Officer monthly. All activity will be reviewed. EFT payments will be compared to the source documents. Any suspicious transaction activity will be investigated. The bank reconciliation and supporting documentation will be presented to every member of the Board of Directors by the fourth Thursday of the month.

d. A report of all agency credit card usage and balances will be presented to the Board of Directors and Policy Council on a monthly basis.

e. The Agency will contract with a Certified Public Accountant to complete an annual audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; provisions of Office of Management and Budget Circular A-133.

The Finance Committee of the Board of Directors will select the accounting firm, receive the agency’s audit report and management letter and develop a corrective action plan along with senior management staff. The corrective action plan will be reviewed monthly until all outstanding audit findings have been corrected.

1.13 Capital Assets

Shasta Head Start Child Development, Inc. will classify all assets with an initial purchase value of $5,000 or greater and a useful life greater than one year as a capital asset. These assets will be included on the company’s capital asset inventory schedule.

Any capital asset with a unit cost of $5,000 or more, including taxes, shipping and installation costs will be submitted to the board of directors for approval. Upon approval by the board of directors, the Chief Financial Officer will submit a request to the Administration for Children and Families (ACF) requesting prior approval before the purchase is committed through a purchase order or contract. ACF approval documentation will be maintained in the equipment file for a minimum of three (3) years after disposition of the asset and the close of the audit for the year in which the equipment was disposed.

The CFO is responsible for identifying capital assets using the criteria from above prior to purchasing the item. The purchasing agent completes and saves a capital asset addition form for all capital assets received to the shared folder.
The purchasing agent gives an asset tag to the manager when a capital asset is received. The purchasing agent then attaches a copy of the capital asset addition form to the purchase order and sends it accounting for processing.
The accounts payable coordinator upon receipt of the purchasing documentation processes a payment.
The accounts payable coordinator reviews the payment and supporting documentation to ensure the item meets the capital asset requirements and then records the item into the capital asset inventory schedule.
The Accounting Manager ensures the capital asset inventory schedule balances to the general ledger at all times.
Inventory is recorded on the general ledger at its original cost.
Assets added to the capital asset inventory schedule must include the following data elements; the funding source of the equipment including the award number, whether title vests in the recipient or the Federal government, description, manufacturer’s serial and model number or other identifying number, calculation of the percentage of Federal share, acquisition date, unit acquisition cost, location and condition and date the information was reported, disposition type including the date of disposal and sales price or the method used to determine the current fair market value if Shasta Head Start compensates ACF for its share, and sales price, if applicable.

1.14 Capital Inventory Management

All managers responsible for company assets will be given access to a shared folder with an electronic file of their capital asset inventory. It is the responsibility of the manager to ensure the accuracy of the inventory file is maintained. All inventory changes occurring during the fiscal year must be documented by a capital asset addition, capital asset retirement, or capital asset transfer form.
Every two years an inventory will be taken of all capital assets. This inventory will be conducted by the accounting department and a report will be issued outlining any discrepancies identified during the inventory count. The report will be certified by the CFO and will include the date the inventory was completed and the accounting records adjusted for any corrections.

1.15 Payroll

Shasta Head Start pays its employees biweekly every other Friday. Employees are classified into two pay categories exempt and non-exempt.

Payrolls are processed by the Accounting Specialist using electronic time reports approved by each employee’s supervisor. All online electronic time reports must be reviewed and approved by each employee’s supervisor before they are imported into the payroll software for check processing.
The Accounting Manager, and Accounting Specialist review all electronic payroll records to ensure each has supervisor approval and the time records appear to be reasonable. The Accounting Manager authorizes the Accounting Specialist to post the employee time records to the payroll software.
After the Accounting Specialist imports the employee time records and runs the payroll process, the Accounting Manager and Human Resources Manager review the pre-processed payroll for accuracy. If mistakes are found corrections will be made and the payroll will be pre-processed again. Once the Accounting Manager and Human Resources Manager have approved the pre-processed payroll it is submitted for final processing. Shasta Head Start outsources its payroll processing. The outside company is responsible for processing payroll, W-2s, tax deposits, and State and Federal Payroll Tax returns.
The Accounting Manager reviews all quarterly and annual payroll tax returns for accuracy.
Annually, a wage comparability study will be completed by the human resources department. The data collected by this study will be used to determine if staff wages are appropriate. If funding is available, an adjustment to the wage class least comparable to other wages in the area will be adjusted. If no funding is available for a wage adjustment, wages will remain static until such funds are available.

1.16 Non-Federal/In Kind/Matching Funds

Shasta Head Start will match at least 25% of federal funds under the grant terms and conditions. These matching contributions will be documented and maintained by the accounting department. The documentation will include at a minimum the following:

Rational and objective valuation of the material or service being contributed. Valuation documentation will remain in accounting and be updated annually.
In Kind is only allowable if it is something Shasta Head Start would pay for as an allowable expenditure under the Head Start Grant terms and conditions.

1.17 Tax Reporting

Forms 990, 199, and 5500 are completed by Shasta Head Start’s external auditors and reviewed by the Chief Financial Officer. The timeline for tax fillings are as follows;

Federal Tax Return 990	Due by April 15^th
State Tax Return 199	Due by April 15^th
Use Tax Return	Due by January 31^st, April 30^th, July 31^st, October 31^st
Form 5500	Due by July 31^st
Form Sl-100 Statement of Information	Due by February 28^th every odd year
Form RRF-1 Renewal Fee Report for the State of California	Due by January 15^th
County Tax Exemptions	Due by February 15th
County 571L	Due by April 1st

1.18 Head Start Grant Reports

Financial reports required by the Head Start grant are completed by the Chief Financial Officer. Costs encumbered during the fiscal year must be closed out within 90 days from the end of the grant fiscal year.

SF-425 Semi Annual Report (Reporting period end date February 28/29^th) is due by March 30^th
SF-425 Annual Report (Reporting period end date August 31^st) is due by November 30^th
SF-429 Real Property Status Report is due by November 30^th
SF-428 Tangible Personal Property Report is due 90 days after close of the project period

1.19 Record Retention

Financial records supporting documentation will be retained for four years following the filing of the tax return pertaining to those records. These records include accounts payable, payroll, general ledger, and financial statements.

All asset records will be maintained for 3 years after their final disposal date.

Shasta will comply with all IRS record retention requirements where they exceed the four (4) year limitation previously indicated.

1.20 Insurance and Bonding

All assets will be protected by a property, employee fraud, transportation and general liability insurance policy. The coverage limits will be adequate to cover and protect the company.
Board members and company officers will be covered under a Directors and Officers Insurance Policy.
A student accident insurance policy will be maintained to cover the children enrolled in the Head Start Program.
An ERISA Bond will be maintained for at least 10% of the 401k plan assets.

1.21 Travel Per Diem Rates/Employee Mileage

Employees will be paid a per diem for meal expense incurred while on assignments more than 120 miles away from their normal work location. All business travel must be approved in advanced by your area manager and a director.

Employee per diem rates will be based on the U.S. General Service Administration per diem rates. The per diem rate corresponding to the travel destination can be found on the following website.

Per diem rates | GSA

Upon approval of travel plans, employees should contact the administrative coordinator to ask for assistance in making travel arrangements.

If an employee is asked to travel more than 30 miles away from their regularly scheduled worksite, mileage will be paid at the IRS mileage reimbursement rate. Employees must provide current proof of insurance when submitting a request for mileage reimbursement. Employees are only reimbursed for mileage during working hours.

2.00 Purchasing Procedures.

Purchasing procedures are established to provide open and free competition, avoid conflict of interest and noncompetitive practices among contractors. Contract awards by Shasta Head Start will be made to the bidder whose bid is responsive to the solicitation and is most advantageous to the recipient, price, quality, and other factors considered. Solicitations shall clearly set forth all requirements the bidder shall fulfill in order to be evaluated by the recipient. Any and all bids or offers may be rejected when it is in the recipient’s interest to do so.

2.01 Purchase Requisition/Check Request

All purchases (except food purchases) must be initiated using a purchase requisition/check request Form. A purchase requisition/check request is used to authorize the purchasing department to procure the item requested. A check request is authorization for an employee to purchase an item and then later be reimbursed by accounts payable.
Food purchases can be made after the area manager, head teacher, or site supervisor has approved a shopping list. The approved shopping list must be signed by the area manager and submitted with the store receipt to accounts payable immediately following the purchase.
Employee compliance expenses, (background checks, fingerprinting, strength training, drug testing, EPN, and CPR), may be approved using one purchase requisition/check request per vendor for a calendar month.
All purchase requisition/check requests will be reviewed by the purchasing agent for proper approvals. Managers can approve purchases up to $500 without director or CFO approval. Directors and CFO can approve purchases up to $25,000. All purchases and contracts not budgeted over $25,000 must be approved by the Board Chair. Asset purchases of $5,000 or more must be approved by the Head Start Regional Office. The purchasing agent will return incomplete purchase requisition/check request to the originator for correction.
The purchasing agent will review each purchase and determine the best vendor based on agency need, price, quality, and availability.
The purchasing agent creates a purchase order in the accounting system and places the order.
The purchasing agent files the purchase requisition/check request and purchase order until the goods are delivered and received. When goods are received, the purchasing agent matches the packing slip with the purchase requisition and purchase order and forwards them to accounts payable.
The purchasing agent and Accounting Manager review the open purchase order report from the accounting system and research any orders that have not been received.
If any of the goods ordered fall under “1.13 Capital Assets”, the equipment will be entered into the Capital Assets Inventory system.

2.02 Company Credit Cards

Company credit cards are in the custody of the following positions.

1. Executive Assistant
2. Facilities coordinator and facility maintenance (Has the authorization to use the card for emergency purchases up $1,000; however, a purchase requisition/check request must be completed within 10 days of purchase.)
3. Purchasing agent
4. HR training coordinator (Has the authorization to use the card for employee permits requiring the employee’s credentials to complete; with a purchase requisition/check request completed prior to use.)
5. HR Clerk (Has the authorization to use the card for job advertising; with a purchase requisition/check request completed for each statement period.)
6. Facilities coordinator (Has the authorization to use the card for purchases at Costco and Chef’s store; with a purchase requisition/check request completed prior to use.)

b. The individuals using a company credit card must have an approved purchase requisition/check request prior to the cards use.

c. Fuel account cards are maintained with the vehicle keys. Every vehicle has its own fueling card and must remain with the keys of that vehicle.

d. A monthly report of all credit card expenditures will be provided to the Policy Council and the Board of Directors.

2.03 Procurement Process

Procurement by micro-purchases. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold of $10,000. To the extent practicable, Shasta Head Start must distribute micro-purchases equitably among qualified suppliers. Micro-purchases may be awarded without soliciting competitive quotations if Shasta Head Start considers the price to be reasonable.
Procurement by small purchase procedures. Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. Shasta Head Start will attempt to get three rate quotations from qualified vendors. If three qualified vendors are not available, it will be noted in the purchasing documentation why the vendors did not qualify or were not available for the product or service being purchased.
Procurement by sealed bids (formal advertising). Bids are publicly solicited and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. The sealed bid method is the preferred method for procuring construction, if the conditions in paragraph (c)(1) of this section apply.

In order for sealed bidding to be feasible, the following conditions should be present:

(i.) A complete, adequate, and realistic specification or purchase description is available;

(ii.) Two or more responsible bidders are willing and able to compete effectively for the business; and

(iii.) The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.

If sealed bids are used, the following requirements apply:

(i.) Bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening the bids;

(ii.) The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;

(iii.) All bids will be opened at the time and place prescribed in the invitation for bids, for state, local, and tribal governments, the bids must be opened publicly;

(iv.) A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and

(v.) Any or all bids may be rejected if there is a sound documented reason.

d. Procurement by competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed price or cost-reimbursement type contract is awarded. It is generally used when conditions are not appropriate for the use of sealed bids. If this method is used, the following requirements apply:

Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical;
Proposals must be solicited from an adequate number of qualified sources;
Shasta Head Start must have a written method for conducting technical evaluations of the proposals received and for selecting recipients;
Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and
Shasta Head Start may use competitive proposal procedures for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort.

e. Procurement by noncompetitive proposals. Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply:

The item is available only from a single source;
The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;
The HHS awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or
After solicitation of a number of sources, competition is determined inadequate.

2.04 Contracting Procedures and Provisions

In addition to other provisions required by the HHS agency or non-Federal entity, all contracts made by the non-Federal entity under the Federal award must contain provisions covering the following, as applicable.

Contracts for more than the simplified acquisition threshold currently set at $250,000, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.
All contracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be effected and the basis for settlement.
Equal Employment Opportunity. Except as otherwise provided under 41 CFR part 60, all contracts that meet the definition of “federally assisted construction contract” in 41 CFR part 60-1.3 must include the equal opportunity clause provided under 41 CFR 60-1.4(b), in accordance with Executive Order 11246, as amended by Executive Order 11375, and implementing regulations at 41 CFR part 60.
Davis-Bacon Act, as amended (40 U.S.C. 3141-3148). When required by Federal program legislation, all prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 CFR part 5). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. 3145), as supplemented by Department of Labor regulations (29 CFR part 3). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-Federal entity must report all suspected or reported violations to the Federal awarding agency.
Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708). Where applicable, all contracts awarded by the non-Federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor regulations (29 CFR part 5). Under 40 U.S.C. 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence.
Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of “funding agreement” under 37 CFR 401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR part 401 and any implementing regulations issued by the awarding agency.
Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as amended—Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
Debarment and Suspension (Executive Orders 12549 and 12689)—A contract award (see 2 CFR 180.220) must not be made to parties listed on the government-wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR part 180 that implement Executive Orders 12549 (3 CFR part 1986 Comp., p. 189) and 12689 (3 CFR part 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549.
Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)—Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the non-Federal award.