General Terms and Conditions for General Support Grants to State Humanities Councils
General Terms and Conditions for General Support Grants to State Humanities Councils (for grants issued on or after December 26, 2014)
NEH general support grants to the state humanities councils issued on or after December 26, 2014 are subject to the National Foundation on the Arts and the Humanities Act of 1965 (P. L. 89-209, as amended; 20 USC §956 et seq.); 2 CFR part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; these General Terms and Conditions; and the specific terms and conditions in the notice of award.
In accepting a general support grant and any related funding supplements, a state humanities council assumes the legal responsibility for administering the award in accordance with these general terms and conditions and of complying fully with any special terms and conditions that are included in the award agreement. Failure to do so may result in the suspension or termination of the award and the NEH’s recovery of award funds. Should there be any inconsistency between these general terms and conditions and the specific terms and conditions of an award, the latter will govern.
Awards that a state humanities council receives from other programs of the NEH are subject to the General Terms and Conditions for Awards to Organizations; Challenge Infrastructure and Capacity Building Grants are also subject to the Administration of NEH Challenge Grants.
TABLE OF CONTENTS
- Basic Responsibilities
- Project Costs
- Reporting and Recordkeeping
- Government-wide Requirements
- NEH-Specific Requirement
- U.S. Constitution Day Education Program (PL 108-447, Div. J. Sec. 111(b))
- Coordination of Geographic Information and Related Spatial Data
(OMB Circular A-16 and Executive Order 12906)
- Dissemination of Award Results
- Activities Outside the United States
- Data Collection
- Research Misconduct
- Code of Ethics for Projects Related to Native Americans
- Suspension and Termination
- Administrative Requirements That Apply To Subrecipients (Regrantees)
- Reporting Subawards and Executive Compensation (2 CFR Part 170 - Requirements for Federal Funding Accountability and Transparency Act Implementation; Appendix A to Part 170--Award Term)
- Prohibition on Use of Funds to ACORN or its subsidiaries
Please see 2 CFR part 200, Subpart A for a full list of definitions. In addition, please note the following:
A grant or cooperative agreement.
Cash outlays for budgeted program activities which are paid from the council’s or subawardee’s (regrantee’s) own funds; monies contributed to the council or subawardee by other public agencies and institutions, private organizations, and individuals; and from funds received under agreements with other federal agencies.
The portion of the costs of a project or program not charged to NEH funds. This would include cash contributions (as defined above) as well as the value of third party in‑kind contributions.
The ineligibility of an individual or entity to receive any assistance or benefits from the Federal Government, either indefinitely or for a specified period of time, based on legal proceedings taken pursuant to agency regulations contained at 2 CFR parts 180 – OMB Guidelines to Agencies on Government-wide Debarment and Suspension (Nonprocurement) and 2 CFR part 3369 – NEH Nonprocurement Debarment and Suspension.
NEH’s online electronic grant management system located at https://securegrants.neh.gov/egms-reach/Login.aspx. All project directors and institutional grants administrators (IGAs) are assigned eGMS Reach accounts, and the user names are shown next to their names (in parentheses) on the Official Notice of Action.
When accessing eGMS Reach for the first time, go to https://securegrants.neh.gov/eGMS-Reach/Login.aspx, click the “Sign In Help” link, and follow the on screen instructions. An e-mail message will be sent to you with a link to select a password. All award recipients are required to submit prior approval requests, reports and all correspondence with NEH via eGMS Reach.
A twelve-month period (running from November through October) for which the NEH provides general support funding to a state humanities council. Under a biennial grant, there are two one-year funding periods within a four-year award period. Under a triennial grant, there are three one‑year funding periods within a five‑year award period of performance. The final two years of the award periods of performance are NOT funding periods, but are instead time allowed to close out subawards (regrants) and to reuse any funds available from the funding periods.
A legal instrument that provides financial assistance to an eligible recipient to carry out a public purpose authorized by law. The term does not apply to technical assistance that provides services instead of money, or other assistance in the form of revenue sharing, loans, loan guarantees, interest subsidies, insurance, or direct appropriations.
The value of noncash contributions provided by third parties. In-kind contributions may be in the form of the use real property and equipment without charge or the value of donated goods and services directly benefiting and specifically identifiable to the project.
A county, municipality, city, town, township, local public authority, school district, special district, intrastate district, council of government, any other regional or interstate government entity, or any agency or instrumentality of a local government.
Period of Performance (formerly known as the award period)
For councils: the five-year span of time that includes three funding periods and up to two years to close out. The period of performance begins on the first day of November and ends on the last day of October.
For subrecipients (regrantees): the time during which the subrecipient may incur new obligations to carry out the work authorized by the council in the subaward.
Money that is earned by a council or a subrecipient (regrantee) from the activities supported by NEH award funds or from products resulting from funded activities. It includes, but is not limited to, income from fees for services performed and from the sale of items produced under an award; usage or rental fees for equipment or property acquired under an award; admission fees; broadcast or distribution rights; and royalties on patents and copyrights.
The organization to which a grant or cooperative agreement is awarded and which is accountable for the use of the funds provided (the state humanities council).
Simplified Acquisition Threshold
This term replaces "small purchase threshold," and is currently set at $250,000. It refers to the dollar amount ceiling under which councils and subrecipients are permitted to use simplified procedures for purchasing goods or services.
In addition to the several states of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the Northern Mariana Islands, and the Virgin Islands (20 USC §952(g)).
Subaward (formerly known as Regrant)Subaward
An award of NEH funds made by a council to an eligible organization or individual in support of a humanities project that was selected in open competition on the basis of established criteria that are publicly known. A subaward may be provided by any legal agreement, including an agreement that the council considers a contract.
The individual or legal entity to which a subaward is made. Subrecipients are accountable to the council for the use of the funds provided. See Appendix B.
All tangible personal property, excluding equipment and intangible property as defined in 2 CFR part 200, Subpart A. Note: A computing device is a supply if the acquisition cost is less than the lesser of the capitalization level established by the non-Federal entity for financial statement purposes or $5,000, regardless of the length of its useful life. See also 2 CFR §§200.20 Computing devices and 200.33 Equipment.
(1) The suspension of an award is the temporary withdrawal of federal sponsorship. This includes the withdrawal of authority to incur expenditures against award funds, pending corrective action or a decision to terminate the award.
(2) The suspension of an individual or organization causes that party to be temporarily ineligible to receive any assistance and benefits from the Federal Government pending completion of investigation and legal proceedings as prescribed under agency regulations contained at 2 CFR parts 180 and 3369. Such actions may lead to debarment of the recipient.
Cancellation of federal sponsorship of a project, including the withdrawal of authority to incur expenditures against previously awarded funds before that authority would otherwise expire.
For reports prepared on a cash basis, unliquidated obligations mean the amount of obligations incurred by the recipient that has not been paid. For reports prepared on an accrued expenditure basis, they represent the amount of obligations incurred by the recipient for which an outlay has not been recorded.
The amount of federal funds under an award that the recipient has not obligated. The amount is computed by subtracting the cumulative amount of the recipient’s obligations of federal funds under the award from the cumulative amount of the NEH funds that were awarded.
The difference between the amount charged to the federal award and the amount that could be charged to the federal award under the non-Federal entity's approved negotiated indirect cost rate.
General Terms and Conditions for General Support Grants to State Humanities Councils
- Responsibilities and Liability
The NEH, as a federal agency issuing grants and cooperative agreements (awards), is responsible to Congress and the U.S. taxpayer for carrying out its mission cost-effectively and in compliance with applicable requirements set forth in legislation, regulation, and policy. NEH seeks to ensure integrity and accountability in award issuance and administration by relying on a system of checks and balances and separation of responsibilities within its own staff and by establishing a similar set of expectations for recipient organizations. The NEH roles and responsibilities are as follows:
- The NEH Office of Grant Management is responsible for overseeing compliance with the administrative requirements, cost principles, audit requirements, and other non-programmatic aspects of the award. Activities include, but are not limited to, evaluating applications for administrative content and compliance with statutes, regulations, and guidelines; negotiating awards; providing consultation and technical assistance to applicants and recipients, including interpretation of federal award administration policies and provisions; post-award monitoring and compliance, including reviewing financial reports and closing out awards. The NEH Office of Grant Management is the focal point for receiving and acting on requests for prior approval or for changes in the terms and conditions of award. The NEH Office of Grant Management is the only office authorized to issue the notice of award that obligates the NEH to the expenditure of federal funds or to change the funding, duration, or other terms and conditions of an award.
- NEH program officers are responsible for the programmatic aspects of assigned applications, grants and cooperative agreements. The NEH programs' responsibilities include, but are not limited to, development of programs to meet the NEH mission; preparation of funding opportunity announcements; provision of programmatic technical assistance; post-award monitoring of project/program performance, including review of progress reports and making site visits; and other activities complementary to those of the NEH Office of Grant Management.
- The NEH Office of Accounting collects and confirms information submitted via the SF 3881 Automated Clearing House (ACH) form. The office also reviews payment requests and issues payments to grant and cooperative agreement recipients.
- The NEH Office of Inspector General is responsible for (1) conducting audits and investigations; (2) reviewing legislation; (3) recommending policies to promote efficiency and effectiveness; and (4) preventing and detecting fraud, waste, and abuse in the operations of the agency. Help NEH eliminate fraud and improve management by providing information about allegations or suspicions of waste, fraud, abuse, mismanagement, research misconduct (fabrication, falsification, plagiarism), or unnecessary government expenditures during the period of performance, to the NEH Office of the Inspector General. Recipients can find details on how to report such allegations and suspicions here.
The recipient has full responsibility for conducting project activities under the NEH award, adhering to the award conditions, and informing the NEH during the course of the award of any significant programmatic, administrative, or financial problems that have arisen. The roles and responsibilities of designated individuals at recipient organizations, who serve as agents of the recipient, are as follows:
- Institutional Grant Administrator. This individual is the designated representative of the applicant/recipient organization with authority to act on the organization’s behalf in matters related to the administration of NEH awards. Responsibilities include accountability both for the appropriate use of funds awarded and the performance of the NEH-supported project or activities as specified in the approved application and in compliance with 2 CFR part 200 and the terms and conditions of the award. The institutional grant administrator is the individual responsible for submitting requests for prior approval through eGMS Reach. The institutional grant administrator is authorized to exercise expanded authorities delegated by NEH, and is responsible for notifying the NEH Office of Grant Management if such actions are taken. Recipient organizations are required to promptly notify the NEH (by submitting a Participant Change Request via eGMS Reach) when there has been a change in the institutional grant administrator. The institutional grant administrator is responsible for notifying the NEH about any allegation of research misconduct if the allegation involves NEH-funded research (or an application for NEH funding) and if the recipient's inquiry into the allegation determines that there is sufficient evidence to proceed to an investigation in accordance with the NEH Research Misconduct Policy (see Article 37).
- Project Director. The project director is the individual designated by the recipient that is responsible for the programmatic aspects of the award and for day-to-day management of the project or program. This individual works closely with the institutional grant administrator to create and maintain necessary documentation, including both performance and administrative reports; prepare justifications; appropriately acknowledge NEH support in publications, announcements, news programs, and other media; and ensure compliance with other federal and organizational requirements. (The project director may not also serve as the institutional grant administrator.) The project director is encouraged to maintain contact with the NEH program officer with respect to the programmatic aspects of the project or program. The project director generally is an employee of the council. If the project director is not an employee of the funded state humanities council, the council must have a formal written agreement with the project director that specifies an official relationship between the parties even if the relationship does not involve a salary or other form of remuneration. Because the project director’s involvement in the project is critical to its success, the replacement of the project director or the co-director or a substantial reduction in the level of their effort requires prior written approval from NEH. Recipient organizations are required to promptly request approval for project director changes to NEH by submitting a Participant Change Request via eGMS Reach.
NEH cannot assume any liability for accidents, illnesses or claims arising out of any work supported by an award or for unauthorized use of patented or copyrighted materials. The recipient is advised to take such steps as may be deemed necessary to insure or protect itself, its employees, and its property.
The independent, nonprofit 501 (c)(3) state and jurisdictional humanities councils (available on this list) are eligible. However, only those state humanities councils that have currently approved compliance plans are eligible to receive a general support grant from Federal/State Partnership.
Unless advised to the contrary, all materials publicizing or resulting from award activities shall contain an acknowledgment of NEH support. The acknowledgment shall also include the following statement: “Any views, findings, conclusions or recommendations expressed in this (publication) (program) (exhibition) (website) do not necessarily represent those of the National Endowment for the Humanities.”
Recipients are to consult the Acknowledgment and Publicity Requirements for NEH Awards and Publicizing Your Project pages on the NEH website for guidance on credits and promotion.
Councils are authorized to issue subawards (see definition in the “Glossary of Terms”) to private nonprofit organizations; institutions of higher education; state, local, and federally recognized Indian tribal governments; groups of persons that form an association to carry out a project; and individuals. Non-public organizations or groups that apply to the councils for funding must be constituted for nonprofit purposes. It is not necessary that such organizations or groups be incorporated or have tax‑exempt status. State humanities councils may not award subawards to foreign for-profit entities.
State humanities councils shall award subawards to provide support for humanities projects selected in open competition on the basis of established criteria that are publicly available. When a subaward is issued the council must inform the subrecipient of the relevant NEH award and CFDA number, as well as the information included in 2 CFR §200.331.
In addition, the administrative requirements set forth in Appendix A of these general terms and conditions shall apply to all subawards awarded by the state humanities councils.
The allowability of costs and cost allocation methods for work performed under an NEH general support grant to a state humanities council shall be determined in accordance with 2 CFR 200, Subpart E - Cost Principles and the terms and conditions of the award.
Section 7(f) of the National Foundation on the Arts and Humanities Act of 1965, as amended, provides the NEH with the authority to allow fund‑raising costs to be charged as expenditures against NEH and cost‑sharing funds in general support awards made to the state humanities councils. The state humanities councils are therefore authorized to make such charges to general support award funds.
However, fund-raising costs may not be charged as expenditures in subaward (regrant) budgets.
- Equipment (2 CFR §200.313)
Equipment is defined as tangible, nonexpendable personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. The recipient must seek NEH prior approval to purchase equipment not included in the approved project budget. The recipient must document that the purchase is necessary to carry out project activities.
Title to equipment acquired by a recipient or subrecipient under a NEH award belongs to the recipient or subrecipient. The recipient shall use that equipment for the originally authorized purpose and shall not encumber it without the NEH's approval. The NEH reserves the right to determine the disposition of the equipment when it is no longer needed for the originally authorized purpose.
Recipients must report all equipment purchased with NEH funds on the Tangible Personal Property Report (SF-428) within 90 calendar days of the end date of the period of performance.
Consistent with Executive Order 13788 (“Buy American and Hire American”), recipients and subrecipients who purchase equipment and products with NEH funds should purchase only American-made equipment and products.
NEH funds may not be budgeted for any costs related to the purchase of land or facilities by a council or for the construction and renovation of any council-owned facilities.
Depreciation (see 2 CFR §200.436) or use fees may be charged to the award. Routine maintenance and repair costs are allowable (see 2 CFR §200.452). Also see 2 CFR 200.465 Rental costs of real property and equipment.
If a state council funds a subaward project that includes construction or renovation costs, the requirements of the Davis-Bacon Act (Article 29 b. and Appendix B, 3.) and the National Historic Preservation Act and National Environmental Policy Act (Article 31) will apply to the subrecipient.
- Travel Costs (2 CFR §200.474)
Travel costs are the expenses for transportation, lodging, subsistence, and related items incurred by those who are in travel status on official business of the council that is directly attributable to specific work under an award or are incurred in the normal course of the administration of the council.
Such costs may be charged on an actual basis, on a per diem or mileage basis in lieu of actual costs, or on a combination of the two, provided the method used is applied to an entire trip and not to selected days of the trip, and results in charges consistent with those normally allowed in like circumstances in the council’s non-federally-funded activities and in accordance with the non-federal entity's written travel reimbursement policies. Please note: if incidental food items and/or meals are provided at no charge during meetings, conferences, training, or other events attended while on travel, the per diem charged to the award must be reduced accordingly. Alcoholic beverages are unallowable and may not be charged to the award.
Airfare costs in excess of the customary standard commercial airfare (coach or equivalent), Federal Government contract airfare (where authorized and available), or the lowest commercial discount airfare are unallowable except when such accommodations would: (a) require circuitous routing; (b) require travel during unreasonable hours; (c) excessively prolong travel; (d) result in additional costs that would offset the transportation savings; or (e) offer accommodations not reasonably adequate for the traveler’s medical needs. All air travel that is paid in whole or in part with NEH funds must be undertaken on U.S. flag air carriers, unless one or more of the situations described under foreign travel (Article 11) apply.
Council board and staff members may undertake foreign travel (travel outside the United States, its territories and possessions), without prior NEH approval whenever such travel is necessary to carry out council activities. Councils may also approve foreign travel that will be undertaken by a subrecipient.
United States Flag Air Carriers
In accordance with the Fly America Act (49 USC 40118), all air transportation of persons or property that is paid in whole or in part with NEH funds must be performed on a U.S. flag air carrier. The regulations regarding the Fly America Act are available at 41 CFR 301-10.131-143. In the following circumstance, the use of a foreign air carrier would be permissible:
A. Airline "Open Skies" Agreement:
A foreign flag air carrier may be used if the transportation is provided under an air transportation agreement between the United States and a foreign government, which the Department of Transportation has determined meets the requirements of the Fly America Act. For information on "open skies" agreements in which the United States has entered, please refer to the GSA website at: http://www.gsa.gov/portal/content/103191.
Note on U.S./European Union Open Skies Agreement: In 2007, the US entered into an "Open Skies" Agreement with the European Union (E.U.). This agreement was modified in June 2010. The current Agreement gives European Community airlines (airlines of Member States) the right to transport passengers and cargo on flights funded by the U.S. government, when the transportation is between: (1) any two points outside the United States; or (2) a point in the United States and any point outside the United States that the E.U. airline is authorized to serve under the "Open Skies" Agreement.
In 2011, two significant changes were made to the U.S./E.U. Open Skies Agreement. First, E.U. airlines are now granted the right to transport civilian agency-funded passengers who are NOT eligible to travel on GSA Airline City Pair Contract fares (e.g., grant recipients) between a point in the United States and a point outside the United States even if there is a GSA Airline City Pair Contract fare in effect between the origin and destination points. An individual, however, who is traveling on a route for which there is a City Pair Contract fare in effect, and who is eligible for such a fare (e.g., federal employee), are be required to fly on a U.S. carrier, absent another applicable exception. Second, under the amended Agreement, E.U. airlines are now authorized to transport passengers between points in the United States and points outside the E.U. if the E.U. airline is authorized to serve the route under the Agreement. This includes flights that originate, arrive, or stop in the E.U. Prior to this change, E.U. airlines were limited to flying passengers between points in the U.S. and points in the E.U.
B. Involuntary Rerouting
Travel on a foreign-flag carrier is permitted if a U.S.-flag air carrier involuntarily reroutes the traveler via a foreign-flag air carrier, notwithstanding the availability of alternative U.S.-flag air carrier service.
C. Travel To and From the U.S. on non-European Community Airlines
Use of a non-European Community foreign-flag air carrier is permissible if the airport abroad is:
1) the traveler's origin or destination airport, and use of U.S.-flag air carrier service would extend the time in a travel status by at least 24 hours more than travel by a foreign-flag air carrier; or
2) an interchange point, and use of U.S.-flag air carrier service would increase the number of aircraft changes the traveler must make outside of the U.S. by two or more, would require the traveler to wait four hours or more to make connections at that point, or would extend the time in a travel status by at least six hours more than travel by a foreign-flag air carrier.
D. Travel Between Points Outside the U.S. on non-European Community Airlines
Use of a non-European Community foreign-flag air carrier is permissible if:
1) travel by a foreign-flag air carrier would eliminate two or more aircraft changes in route;
2) travel by a U.S.-flag air carrier would require a connecting time of four hours or more at an overseas interchange point; or
3) the travel is not part of the trip to or from the U.S., and use of a U.S.-flag air carrier would extend the time in a travel status by at least six hours more than travel by a foreign-flag air carrier.
E. Short Distance Travel
For all short distance travel, regardless of origin and destination, use of a foreign-flag air carrier is permissible if the elapsed travel time on a scheduled flight from origin to destination airport by a foreign-flag air carrier is three hours or less and service by a U.S.-flag air carrier would double the travel time.
Lower cost, convenience, or traveler preferences are NOT acceptable reasons for using a foreign air carrier.
- Budget Revisions (2 CFR §200.308)
The budgets for state humanities councils include the anticipated expenditures of NEH award funds and cost‑sharing contributions and are divided into a number of distinct activities, e.g., general management, program services, council-conducted projects, subawards (regrants).
With the exception of funds allocated for subawards, councils have the authority to shift funds among budget line items within a program and from one activity or program to another. Funds may also be shifted into the subaward program without NEH approval. Once the summary budget for the funding period has been approved by the NEH, funds may not be transferred from the subaward category without the NEH’s written approval, except to cover increased costs related to the auditing of subawards.
Reminder regarding budget revisions that include reimbursement for indirect costs: State humanities councils must honor a subrecipient’s federally negotiated indirect cost rates. Many institutions negotiate multiple rates—for example, “Research,” “Instruction,” and “Other Sponsored Activities.” With rare exceptions, an institution’s “Research” rate will not be the appropriate rate for inclusion in their NEH subaward budget, as the use of this rate is reserved for projects involving scientific research, not scholarly inquiry of the type most often supported by NEH.
Except as provided in paragraph (c)(1) of 2 CFR §200.414 Indirect (F&A) costs, the negotiated rates in effect at the time of the initial award or subaward should be used throughout the entire period of performance. Award levels may not be adjusted in future years as a result of changes in negotiated rates. “Negotiated rates” per the rate agreement include final, fixed, and predetermined rates and exclude provisional rates. If negotiated rate agreements do not extend through the life of the NEH award at the time of the initial award, then the final, fixed, or predetermined negotiated rate for the last year of the NEH award will be extended through the end of the period of performance.
Except as provided in 2 CFR §200.414 Indirect (F&A) costs, when an institution of higher education does not have a negotiated rate with the Federal Government at the time of a subaward (because the educational institution is a new recipient or the parties cannot reach agreement on a rate), the provisional rate used at the time of the award must be adjusted once a rate is negotiated and approved by the cognizant agency for indirect costs. NEH does not anticipate an increase in the award to cover additional costs resulting from the negotiation of an indirect cost rate greater than the rate proposed in the budget; however, the negotiation of a lower rate may result in a reduction of the award/subaward.
Governmental departments or agency units receiving more than $35M in federal funds from all sources during a given fiscal year must have a federally negotiated indirect-cost rate agreement. Any other applicant organization that has never had a negotiated indirect-cost rate may direct cost all expenses or use the de minimis rate of 10 percent of modified total direct costs (MTDC). The chosen method must be used consistently for all federal awards until the organization chooses to negotiate a rate. This can be done at any time. See 2 CFR §200.414 for additional information.
- Period of Performance (2 CFR §200.77)
State humanities councils have the responsibility of ensuring that all council and subrecipient activities that are charged to a particular NEH award take place within the applicable period of performance.
General support award periods usually run for five years. Supplemental funding will be issued in the second and third years of the period of performance. Councils have two years following the last funding period to close out the award. The NEH will not extend any general support grant.
Councils are expected to obligate most of the funds awarded each year by the end of the funding period (twelve-month time period (running from November 1st through October 31st) for which the NEH provides general support funding to a state humanities council), but they will be able to carry forward unobligated funds into the succeeding year and may obligate funds that become available through deobligation any time during the period of performance, provided that all obligations are liquidated within 90 days after the completion date of the period of performance.
- Reporting Requirements (2 CFR §§200.327 – 329)
Each council will periodically be required to submit a report that outlines its activities, accomplishments, and future plans. Details on the content of these reports and when they are due are available on the “Report Schedule” tab in eGMS Reach. The link for eGMS Reach is https://securegrants.neh.gov/eGMS-Reach/Login.aspx. The “Report Schedule” document is located in the Documents tab. All reports must be submitted electronically via eGMS Reach.
A final performance report and a final Federal Financial Report, SF 425 (FFR), shall be submitted to the NEH Office of Grant Management within 90 calendar days after the completion date of the period of performance. Before submitting an FFR, the recipient must ensure that the information submitted is accurate, complete, and consistent with their accounting records.
Upon receipt and approval of all required final reports, the NEH will close out an award. This includes the deobligation of any unused funds as reported on the final FFR. Closeout of an award does not cancel any requirements for property accountability, record retention, or financial accountability. Following closeout, the recipient remains obligated to return funds due as a result of later refunds, corrections, or other transactions, and the Federal Government may recover amounts based on the results of an audit covering any part of the period of period of performance.
In some cases, the recipient may have to revise or amend a previously submitted FFR. When the revision results in a balance due to NEH, the recipient must submit a revised FFR whenever the overcharge is discovered, no matter how much time has lapsed since the original due date of the report. (See OMB Circular A-129 and 2 CFR §200.345 Collection of amounts due, for requirements regarding unreturned amounts that become delinquent debts.) Revised expenditure reports representing additional expenditures by the recipient that were not reported to NEH within the 90-day time frame may be submitted through eGMS Reach with an explanation for the revision. The explanation also should indicate why the revision is necessary and describe what action is being taken by the recipient to preclude similar situations in the future. If an adjustment is to be made, the NEH will advise the recipient of actions it will take to reflect the adjustment.
Failure to submit reports on a timely basis may result in delayed payments and may also lead to the suspension of action on pending applications from the recipient. Detailed information on the financial and performance reporting requirements will be found in the publications entitled Financial Reporting Requirements and Performance Reporting Requirements.
Note: councils may not require subrecipients to report more frequently than quarterly or less frequently than annually.
- Program Income (2 CFR §200.307)
Program income is gross income that is earned or received by a council or a subrecipient from the activities supported by award funds or from products resulting from award activities. It includes, but is not limited to, income from fees for services performed and from the sale of items produced under an award; usage or rental fees for equipment or property acquired under an award; admission fees; broadcast or distribution rights; and license fees and royalties on patents and copyrights. However, program income does not include rebates, credits, discounts, and interest earned on any of them.
Councils and their subrecipients may deduct the costs incident to the generation of program income, if these are not already charged to the award or subaward (regrant), to determine program income.
Councils may use the program income that they generate during the award period to meet their cost‑sharing requirements or to support any of their humanities related activities. See 2 CFR §200.307(e)(2) Addition and (3) Cost sharing or matching. For general support grants, the NEH places no restrictions on the use of program income earned after the award period.
- Financial Management Standards (2 CFR §200.302)
The financial management systems of the councils and their subrecipients must meet the requirements set forth in 2 CFR §200.302 Financial management and the following standards:
A. Accounting Records. The councils and their subrecipients must maintain records that adequately identify the source and application of funds provided for financially‑assisted activities. These records must contain information pertaining to obligations, unobligated balances, assets, liabilities, expenditures, and income.
Each council or its fiscal agent shall have a double‑entry accounting system that is maintained according to generally accepted accounting principles that are applied on a consistent basis. The system should provide for a general ledger, a cash receipts journal, a cash disbursements journal, and a general journal. The general ledger would contain control accounts for subaward (regrant) funds that are issued (obligated) and cost‑sharing funds that are provided by the council itself. A separate control account, which may be recorded in a memorandum ledger rather than the general ledger, should be established for cost‑sharing funds that are provided by subrecipients and the council’s board.
There should also be a subsidiary ledger in which each subaward is listed separately and which contains the following information: the date of the award, the amount of gifts received, the amount of outright and matching funds awarded, the beginning and ending dates of the subaward period of performance, the payments made, the net balance to be paid, and the cost sharing reported by the subrecipient. The subsidiary ledger account balances for each subaward should be added monthly and reconciled to the general ledger if the council uses an accrual basis system. If the council’s records are maintained on a cash basis, the payments recorded in the subsidiary ledger account should be added monthly and reconciled to the general ledger.
To facilitate the management of gifts and matching funds, councils are to maintain a log or journal that contains the name and the classification of the donor, the name of the recipient (if the gift was not given directly to the council), the amount of the gift, the designation of the gift as restricted or unrestricted, the amount of the gift that is certified to the NEH and the date certified, the amount of matching funds awarded by the NEH and the date of that award, and the allocation of the gifts and matching funds to one or more council activities.
B. Internal Control. Effective control and accountability must be maintained for all cash, real and personal property, and other assets. The councils and their subrecipients must adequately safeguard all such property and must provide assurance that it is used solely for authorized purposes. They must also have systems in place that ensure compliance with the terms and conditions of any awards they administer.
C. Budget Control. Records of expenditures are to be maintained by the cost categories of the approved budget and actual expenditures are to be compared with budgeted amounts.
D. Allowable Costs. 2 CFR §200, Subpart E - Cost Principles, the General Terms and Conditions for General Support Grants to State Humanities Councils, and the terms and conditions of award and subaward agreements will be followed in determining the reasonableness, allowability, and allocability of costs.
E. Source Documentation. Accounting records must be supported by such source documentation as canceled checks, bank statements, invoices, paid bills, donor letters, time and attendance records, activity reports, travel reports, contractual and consultant agreements, and subaward documentation. All supporting documentation should be clearly identified with the award identification number and name of the general ledger accounts that are to be charged or credited.
Formal agreements with independent contractors, such as consultants, must include a description of the services to be performed, the period of performance, the fee and method of payment, an itemization of travel and other costs that are chargeable to the agreement, and the signatures of both the contractor and an appropriate official of the council.
F. Cash Management. Councils shall monitor the cash drawdowns of their subrecipients to ensure that they conform to the standards of timing and amounts set forth in 2 CFR §200.305 Payment and Appendix A of these terms and conditions.
- Cost Sharing and Cost-Sharing Records (2 CFR §200.306)
By law, the NEH cannot support more than 50 percent of the costs of a state humanities council’s activities (20 USC §956 (f)). The balance of support may come from cash contributions to the council that are made from any source (including funds from other federal agencies), program income the council has earned, the allowable costs that a subrecipient incurs in carrying out a council‑funded project, and the value of in‑kind contributions that are made by a third party.
All cash and in-kind contributions to a project that are provided by the council, a subrecipient, or a third party are acceptable as the recipient’s cost sharing when such contributions meet the following criteria:
- they must be verifiable from the council’s or the subrecipient records;
- they must not be included as contributions for any other federally-assisted program;
- they must be necessary and reasonable for the proper and efficient accomplishment of project objectives;
- they must be types of charges that would be allowable under the cost principles;
- they must be used to support activities that are included in the approved project work plan; and
- they must be incurred during the period of performance.
NEH has traditionally viewed cost sharing as a means to assure that a wide range of individuals and educational, cultural, and other organizations are involved in and meaningfully invested in a council's work. State humanities councils are strongest when they have a deep commitment to being a statewide organization at the same time as they are firmly rooted in local communities and involved with a broad range of citizens. For these reasons, NEH strongly encourages councils to meet their cost sharing requirements with a wide range of contributions and also strongly discourages state councils from meeting their cost sharing requirements with contributions from only a minimum number of subrecipients.
Any contribution that a subrecipient makes to its own project must be based either on the cost incurred to provide that contribution or, in the case of donated buildings or equipment, on depreciation or a use allowance that is computed in accordance with the applicable cost principles. When a subrecipient is not able to calculate the exact cost involved in contributing its own equipment, space, services, etc. to the project, then the subrecipient must indicate in the project budget the basis for determining the value of the contribution.
This requirement is modified for the four territorial councils covered under the Economic Development of Territories Act of 1984. In accordance with 48 U.S.C. 1469a (d), as amended, the NEH shall waive the requirement for local matching funds under $200,000 (including in-kind contributions) required by law to be provided by American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, and the U.S. Virgin Islands.
When the recipient’s cost sharing includes third-party in-kind contributions, the basis for determining the valuation of volunteer services (including board member time) and donated property or space must be documented and must conform to the requirements set forth in 2 CFR §200.306.
- Procurement Standards (2 CFR §§200.317 – 326)
Recipients and subrecipients are subject to the procurement standards set forth in 2 CFR §§200.317 – 326.
Per 2 CFR §200.67, the micro-purchase threshold is set by the Federal Acquisition Regulations at 48 CFR Subpart 2.1 (Definitions) and was raised to $3,500 on October 1, 2015 (80 FR 28293). Effective December 23, 2016, the National Defense Authorization Act (NDAA) for 2017 (Public Law 114-328) raised it to $10,000 for procurements under grants and cooperative agreements to institutions of higher education, independent research institutes, and nonprofit research organizations.
Section 805 of the NDAA for 2018 (Public Law 115-91) raised the simplified acquisition threshold from $150,000 to $250,000 and Section 806 raised the micro-purchase threshold from $3,500 to $10,000 for all recipients.
Also see Appendix II to 2 CFR part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.
NOTE: The standards contained in this section do not relieve the council of the responsibilities arising under its contracts. The council is the responsible authority, without recourse to the NEH, regarding the settlement and satisfaction of all contractual and administrative issues arising out of procurements entered into in support of an award or other agreement. Matters concerning the violation of a statute are to be referred to such federal, state, or local authority as may have proper jurisdiction.
- Audit Requirements (2 CFR 200, Subpart F)
State humanities councils and their subrecipients shall have audits performed that meet the requirements of the Single Audit Act Amendments of 1996 (31 USC 7501-7507) as implemented by 2 CFR 200, Subpart F - Audit Requirements. Recipients and subrecipients that expend more than $750,000 in federal funds from all sources during their fiscal year are subject to the single audit (formerly known as the A-133 audit).
The single audit includes the entity’s financial statements and federal awards. Federal awards included in the required “schedule of expenditure of federal awards” are identified by their federal Catalog of Federal Domestic Assistance (CFDA) number. With each notification of funding, NEH provides the relevant CFDA number to the recipient. This number appears in the "Federal Award Information" section of the "Official Notice of Action" for each new award or amendment. Important note: The CFDA # for General Support Grants to State Humanities Councils is 45.129. If the CFDA # for supplemental funding is not 45.129, the corresponding CFDA # for the supplement will be provided in the “Remarks” section of the Notice of Action.
In addition, state humanities councils must comply with the CFDA 45.129 section of the OMB Single Audit Compliance Supplement.
- Record Retention (2 CFR §§200.333 – 335)
Financial records, supporting documentation, statistical records, and all other records pertinent to the award shall be retained by the council and subrecipients for three years following the council’s submission of their final Federal Financial Report. Records for real property and equipment acquired with NEH funds must be retained for three years after final disposition.
If the three-year retention period is extended because of audits, appeals, litigation, or the settlement of claims arising out of the performance of the project, the records shall be retained by the council and subrecipient until such audits, appeals, litigation, or claims are resolved.
The NEH, the Comptroller General of the United States, and any of their duly authorized representatives shall have access to any pertinent books, documents, papers, and records of the council and its subrecipients to make audits, examinations, excerpts, transcripts, and copies. See 2 CFR §§200.336 – 337 for additional information.
The Catalog of Federal Domestic Assistance (CFDA), now referred to as the “Federal Assistance Listing” available online at SAM.gov, profiles all federal award programs, projects, services, and activities that provide assistance or benefits to the American public and assigns each a specific number. The CFDA number is important for tracking purposes and is also used by recipients and their auditors to identify the sources of federal awards covered by a single audit. With each notification of funding, the NEH provides the relevant CFDA number to the recipient. The CFDA number for General Support Grants to State Humanities Councils is 45.129. If the CFDA number for supplemental funding differs from 45.129, the number appears in the “Remarks” section of the “Official Notice of Action” for each new award or amendment. State councils must provide the relevant CFDA number to their subrecipients.
- Intangible Property (2 CFR §200.315)
Consistent with 2 CFR §200.315 (b), the recipient or subrecipient may copyright any work that is subject to copyright and was developed, or for which ownership was acquired, under the NEH award. The NEH reserves a royalty-free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the work for federal purposes, and to authorize others to do so.
- Uniform Administrative Requirements (2 CFR part 200, Subpart D)
Per 2 CFR §200.300(b), this award is also subject to the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109-282, as amended by section 6202(a) of Public Law 110-252 (31 U.S.C. 6101)), which includes requirements set forth in 2 CFR part 25 Financial Assistance Use of Universal Identifier and System for Award Management (SAM) and 2 CFR part 170 Reporting Subaward and Executive Compensation Information. (Required reports must be submitted through https://www.fsrs.gov/.)
Per 2 CFR part 25, recipients and subrecipients must obtain and Dun and Bradstreet Data Universal Numbering System (DUNS) number and maintain active SAM registration with current information at all times during which they have an active federal award or an application or plan under consideration by a federal agency. Recipients and subrecipients must therefore review and update their information at least annually after the initial registration, and more frequently if required by changes in information. You can review your organization’s or your subrecipient’s SAM registration here.
For detailed information, see Appendix B.
The state humanities councils and their institutional subrecipients must execute projects, productions, workshops, and programs in accordance with the following laws, where applicable.
A. Title VI of the Civil Rights Act of 1964, as amended, provides that no person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity receiving federal financial assistance. (42 U.S.C. 2000d et seq.) Title VI also extends protection to persons with limited English proficiency. Please note that NEH has issued policy guidance for recipients and subrecipients on “Title VI Prohibition Against National Origin Discrimination As It Affects Persons With Limited English Proficiency.”
B. Title IX of the Education Amendments of 1972 provides that no person in the United States shall, on the basis of sex, be excluded from participation in, be denied benefits of, or be subject to discrimination under any education program or activity receiving federal financial assistance. (20 U.S.C. 1681 et seq.)
C. The Age Discrimination Act of 1975 provides that no person in the United States shall, on the basis of age, be excluded from participation in, be denied benefits of, or be subject to discrimination under any program or activity receiving federal financial assistance. (42 U.S.C. 6101 et seq.)
D. Section 504 of the Rehabilitation Act of 1973 provides that no otherwise qualified individual with a disability in the United States, shall, solely by reason of his/her disability, be excluded from participation in, be denied benefits of, or be subject to discrimination under any program or activity receiving federal financial assistance. (29 U.S.C.794)
E. The Americans with Disabilities Act of 1990 (ADA) prohibits discrimination on the basis of disability in employment (Title I), state and local government services (Title II), places of public accommodation and commercial facilities (Title III). (42 U.S.C.12101‑12213)
- Lobbying Activities (2 CFR §200.450)
Recipients are prohibited by The Byrd Anti-Lobbying Amendment (31 U.S.C. 1352), “Limitation on use of appropriated funds to influence certain federal contracting and financial transactions,” from using appropriated NEH funds to pay any person for influencing or attempting to influence any officer or employee of an agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress with respect to the award, extension, continuation, renewal, amendment, or modification of any of these instruments. While non-federal funds may be used for such activities, they may not be included in your project budget, and their use must be disclosed to the awarding federal agency (NEH). These requirements are implemented by NEH in 45 CFR part 1168. Also see 2 CFR §200.450 Lobbying, that provides additional information regarding the lobbying prohibitions and describes types of activities, such as legislative liaison activities and professional and technical services that are not subject to this prohibition.
Therefore, any costs associated with lobbying activities must be recorded separately in a council’s books to ensure that they are not charged to award funds or to the council’s mandated cost sharing on its awards. Furthermore, any portion of the council’s membership dues that are paid to the Federation of State Humanities Councils from the NEH’s award funds or the council’s mandated cost sharing may not be used to support the Federation’s lobbying activities.
The NEH is required by the provisions of its appropriations act to include the text of 18 U.S.C. 1913 in all of its award, cooperative agreement, and contract documents.
Text of 18U.S.C.1913:
No part of the money appropriated by any enactment of Congress shall, in the absence of express authorization by Congress, be used directly or indirectly to pay for any personal service, advertisement, telegram, telephone, letter, printed or written matter, or other device, intended or designed to influence in any manner a Member of Congress, a jurisdiction, or an official of any government, to favor, adopt, or oppose, by vote or otherwise, any legislation, law, ratification, policy, or appropriation, whether before or after the introduction of any bill, measure, or resolution proposing such legislation, law, ratification, policy, or appropriation; but this shall not prevent officers or employees of the United States or of its departments or agencies from communicating to any such Member or official, at his request, or to Congress or such official, through the proper official channels, requests for any legislation, law, ratification, policy, or appropriations which they deem necessary for the efficient conduct of the public business, or from making any communication whose prohibition by this section might, in the opinion of the Attorney General, violate the Constitution or interfere with the conduct of foreign policy, counter-intelligence, intelligence, or national security activities. Violations of this section shall constitute violations of section 1352(a) of title 31.
Annual award funds will not be released until the NEH has received the signed Certification Regarding Lobbying.
State humanities councils are required to maintain a drug-free workplace in accordance with the Drug-Free Workplace Act of 1988, 41 U.S.C. 701, and must comply with the drug-free workplace requirements contained at 2 CFR part 182 and the NEH regulations at 2 CFR part 3373, Government-wide Requirements for Drug-Free Workplace (Financial Assistance). These regulations require recipients to:
- have an on-going drug-free awareness program;
- publish a drug-free workplace statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the recipient’s workplace;
- maintain evidence that this statement was given to each employee engaged in the performance of the award;
- take actions concerning employees who are convicted of violating drug statutes in the workplace; and
- identify in documents kept on file in its office all known workplace(s) where award activities will be carried out. Councils should therefore indicate that, in addition to their office space, anywhere their staff carries out council activities is considered a part of the workplace.
Further details on the drug-free workplace requirements are contained in the NEH regulations referenced above.
Federal agencies and award recipients are prohibited from doing business with any organization or person (as a recipient, subrecipient, contractor, or key employee) if they have been debarred or suspended by any federal department or agency.
The OMB Guidelines to Agencies on Government-wide Debarment and Suspension (Nonprocurement) contained in 2 CFR part 180 and the NEH regulations contained in 2 CFR part 3369 apply to this award. The state councils must comply, and must require their subrecipients, fellows, seminar participants, to comply with Subpart C of these regulations.
Recipients are required to ensure subrecipient and contractor compliance by checking the Exclusions area within the Performance Information functional area of SAM.gov (formerly the Excluded Parties List System or EPLS), and including a term or condition in the lower-tier transaction that requires the subrecipient and contractor’s compliance with Subpart C of these regulations. Recipients are also responsible for further requiring the inclusion of a similar term or condition in any subsequent lower tier covered transaction.
A. Employment of Professional Performers
Councils and subrecipients that employ professional performers and related or supporting professional personnel under an award (including but not limited to scriptwriters, actors, extras, musicians, stage hands, scenery designers, technicians, electricians, and cinematographers) are subject to the labor standards set forth in 29 CFR Part 505, “Labor Standards on Projects or Productions Assisted by Awards from the National Endowments for the Arts and Humanities.” Councils and subrecipients are required to provide written assurance that:
1) these employees will be paid, without subsequent deduction or rebate on any account, not less than the minimum compensation as determined in accordance with 29 CFR 505.3 to be the prevailing minimum compensation for persons employed to perform similar activities (for example, union or guild rates), and
2) no part of any project or production which is financed in whole or in part under an NEH award will be performed or engaged in under working conditions that are unsanitary, hazardous, or dangerous to the health and safety of the employee engaged in such project or production.
These regulations apply to faculty and staff employed by educational institutions only if such employees are hired primarily to engage in or to assist in performance activities. Regular faculty or staff hired primarily to teach are excluded even though their teaching activities may include performing or assisting in a performance.
The NEH must receive from each state council a signed form ESA-38, “Assurances as to Labor Standards” each time a new general support grant is awarded.
B. Employment of Laborers and Mechanics under Construction Contracts
Construction or renovation projects funded by federal funds, in whole or in part, are subject in their entirety to the Davis-Bacon Act as amended (40 U.S.C. 276 a through 276 a‑5). Recipients are required by law to furnish assurances to the Secretary of Labor that all laborers and mechanics employed by contractors or subrecipients on NEH-supported construction projects shall be paid wages at rates that are not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor.
Additional information is available by contacting the U.S. Department of Labor, Wage and Hour Division, Division of Contract Standards and Operations, 200 Constitution Avenue, NW, Washington DC 20210, or from the “Davis-Bacon and Related Acts Home Page”.
- Native American Graves Protection and Repatriation Act of 1990 (25 U.S.C. 3001 et seq., and 43 CFR Part 10)
The Native American Graves Protection and Repatriation Act of 1990 (NAGPRA) provides protection of Native American graves and items, that is, human remains, funerary objects, and sacred objects. NAGPRA applies to any organization which controls or possesses Native American human remains and associated funerary objects and which receives federal funding, even for a purpose unrelated to the Act. More information may be found on the National Park Service website.
- National Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.)
If a state council awards a subaward (regrant) with NEH funds that includes construction, renovation, repair, rehabilitation or ground or visual disturbances, the subrecipient (regrantee) is required to comply with Section 106 of the National Historic Preservation Act of 1966, 16 U.S.C. § 470 f, and its implementing regulations, 36 CFR. Part 800. Section 106 requires NEH to consider the effects of projects offered or awarded NEH funding on historic properties and, when applicable, to provide the Advisory Council on Historic Preservation an opportunity to comment on such projects. They must also comply with the following:
- Executive Order 11246 [3 CFR, 1964-1965 Comp., p. 339], as implemented by Department of Labor regulations at 41 CFR Part 60 prohibit discriminating in employment decisions on federally assisted construction projects on the basis of race, color, religion, sex, or national origin.
- The Architectural Barriers Act of 1968 (42 U.S.C. 4151, et seq.)
- Applicable provisions of the Clean Air Act (42 U.S.C. 7401, et seq.) and Clean Water Act (33 U.S.C. 1251, et seq.), as implemented by Executive Order 11738 [3 CFR, 1971-1975 Comp., p. 799]
- National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321, et seq.) Recipients must identify the impact this award may have on the quality of the human environment and assist the NEH in complying with NEPA and to prepare Environmental Impact Statements or other required environmental documentation. In such cases, the recipient agrees to take no action that will have an adverse environmental impact (e.g., physical disturbance of a site such as breaking of ground) until the agency provides written notification of compliance with the environmental impact analysis process.
- National Flood Insurance Act of 1968 and Flood Disaster Protection Act of 1973 (42 U.S.C. 4001, et seq.), which require flood insurance, when available, for NEH-funded construction or acquisition in flood-prone areas.
- Coastal Barriers Resource Act (16 U.S.C. 3501, et seq.) concerning preservation of barrier resources.
- Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1271, et seq.).
- Safe Drinking Water Act (42 U.S.C. 300 h-3) protecting underground sources of drinking water in areas that have an aquifer that is the sole or principal drinking water source.
Subrecipients are required to obtain a written determination from their State Historic Preservation Officer (SHPO) and/or Tribal Historic Preservation Officer (THPO) as to whether there are any historic properties in or near the project site; how the NEH-funded project would affect any historic properties; and how any adverse effects might be avoided, minimized, or mitigated. Subrecipients must also submit this determination to NEH, as well as any other materials NEH needs to successfully complete its Section 106 review of a project.
NEH cannot release any Federal funds and subrecipients cannot begin any work involving construction, renovation, repair, rehabilitation, or ground or visual disturbance until NEH concludes its Section 106 review. For additional information about the Section 106 review process, you may wish to visit the following webpages: Section 106 of the National Historic Preservation Act and Frequently Asked Questions about Section 106.
Recipients and subrecipients must comply with Public Law 108-447, Div. J, Title I, Sec. 111 (36 U.S.C. 106 note), which requires each educational institution receiving federal funds in a federal fiscal year to hold an educational program on the United States Constitution on September 17 during that year for the students served by the educational institution. For more information on how to implement this requirement and suggested resources, see here.
- Coordination of Geographic Information and Related Spatial Data (OMB Circular A-16 and Executive Order 12906)
Recipients of NEH awards that include funding for geospatial data, products, and services must comply and must ensure that subrecipients comply with the government-wide requirements contained in OMB Circular A-16, Coordination of Geographic Information and Related Spatial Data and Executive Order 12906: Coordinating Geographic Data Access. Recipients must ensure that federally-funded geospatial data, products, and services follow the appropriate standards, are documented using the Federal Geographic Data Committee metadata standard discoverable via the Geodata.gov website, and are made available for use by other agencies and organizations.
Councils and their subrecipients are expected to publish or otherwise make publicly available the results of work conducted under an award. All publication and distribution agreements shall include provisions giving the Federal Government a royalty‑free, nonexclusive and irrevocable right to reproduce, publish, or otherwise use the material for government purposes (see 2 CFR §200.315(b)) and requiring the acknowledgment of NEH support. The publication shall also include the disclaimer contained in Article 3 of these general terms and conditions.
Prior to undertaking activities outside the United States, recipients shall ensure that all project staff secure the necessary passports, visas, or other required documents for entry into foreign countries. Recipients shall also obtain the appropriate licenses, permits, or approvals. The recipient must notify the NEH if a permit is denied or revoked after an award has been issued, or if an unforeseen circumstance, such as a natural disaster or political turmoil, prevents or threatens to prevent the recipient from carrying out project activities. These situations are considered on a case by case basis to determine whether the award should be suspended or if a revised plan of work is feasible.
Arrangements for liability and medical insurance for staff and foreign workers engaged on project activities are the responsibility of the recipient.
The NEH does not assume responsibility for recipient compliance with the laws and regulations of the country in which work is to be conducted.
NEH encourages its recipients to register with the State Department’s Safe Traveler Enrollment Program. Recipients registering with the State Department's Safe Traveler Enrollment Program (STEP) receive the most current information and travel alerts from the U.S. embassy in the country in which they are traveling, and registration makes it easier for the Embassy to know how to contact travelers in an emergency. In addition, recipients can get travel advisories and warnings on the State Department's website, by fax service at 202-647-3000, by telephone at (888) 407-4747 from within the United States, or, from overseas, (202) 501-4444. For specific questions regarding an emergency involving an American citizen overseas, recipients should contact the Office of Overseas Citizens Services, at (202) 647-5225.
Data collection activities performed under an award are the responsibility of the council or the subrecipient, and the NEH’s support of award activities does not constitute approval of the survey design, questionnaire content, or data collection procedures. The council or the subrecipient shall not represent to respondents that such data are being collected for, or in association with, the NEH or any other government agency without the specific written approval of the data collection plan or device by the NEH. However, this requirement is not intended to preclude mention of NEH’s support of award activities in response to an inquiry or acknowledgment of such support in any publication of this data.
The Federal Government has the right to obtain, reproduce, publish, or otherwise use the data first produced under an award and authorize others to do so for government purposes.
The NEH will take appropriate action against individuals or organizations upon a determination that misconduct has occurred in proposing, performing, or reviewing research or in reporting results from research activities funded by the NEH in accordance with the NEH Research Misconduct Policy. The NEH may also take interim action during an investigation.
Research misconduct is defined as fabrication, falsification, or plagiarism in proposing, performing, or reviewing research, or in reporting research results.
The recipient bears primary responsibility for prevention and detection of research misconduct and for the inquiry, investigation, and adjudication of research misconduct alleged to have occurred in association with its own institution.
The NEH Inspector General in most cases will refer an allegation of research misconduct made directly to the NEH to the appropriate grant recipient and will rely on the recipient to make the initial response. Circumstances in which the NEH may elect not to defer to the recipient include, but are not limited to, the following: the agency determines that the recipient is not prepared to handle the allegation in a manner consistent with this policy; agency involvement is needed to protect the public interest; or the allegation involves an entity of sufficiently small size that it cannot reasonably conduct the investigation itself. At any time, however, the NEH may proceed with its own inquiry or investigation. If the allegation of research misconduct is first made to the recipient, the recipient will notify the NEH if the allegation meets the definition of research misconduct given above, and if the recipient’s inquiry into the allegation determines that there is sufficient evidence to proceed to an investigation.
At any time during an inquiry or investigation, the recipient will immediately notify the NEH if NEH resources or interests are threatened; if public health or safety is at risk; if research activities should be suspended; if there is reasonable indication of possible violations of civil or criminal law; if federal action is required to protect the interests of those involved in the investigation; if the recipient believes the inquiry or investigation may be made public prematurely so that appropriate steps can be taken to safeguard evidence and protect the rights of those involved; or if the research community or public should be informed.
The NEH will make a finding of misconduct or take action on such a finding only after careful inquiry and investigation by a recipient, another federal agency, or the NEH. In the event of a finding of research misconduct, the NEH will determine what administrative actions are appropriate.
Administrative actions available include, but are not limited to, appropriate steps to correct the research record; letters of reprimand; the imposition of special certification or assurance requirements to ensure compliance with applicable regulations or terms of an award; suspension or termination of an active award; or suspension and debarment in accordance with applicable NEH and government-wide rules on suspension and debarment. In the event of suspension or debarment, the information is made publicly available through the Exclusions section within the Performance Information functional area of SAM.gov (formerly the Excluded Parties List System or EPLS), maintained by the U.S. General Services Administration. If the NEH Inspector General believes that criminal or civil fraud violations may have occurred, the Inspector General shall promptly inform the Department of Justice.
The text of the NEH Research Misconduct Policy is available online. Possible misconduct in activities funded by the NEH should be reported to the NEH Office of the Inspector General, 400 7th Street, SW, Washington, DC 20506, (202) 606-8350.
The state councils have the responsibility of ensuring that researchers and scholars working on NEH-sponsored projects (both council-conducted and subawards) related to Native Americans, Aleut, Eskimo, or Native Hawaiian peoples will adhere to certain provisions protecting the rights of native communities and peoples as detailed in the Code of Ethics for Projects Related to Native Americans.
- Suspension and Termination (2 CFR §§200.338 – 342)
Awards may be terminated in whole or in part
- by the NEH, if a recipient materially fails to comply with the terms and conditions of an award;
- by the NEH, when the NEH has other reasonable cause;
- by the NEH, when ordered under the NEH Research Misconduct Policy;
- by the NEH, when the recipient or a subrecipient is determined to be in violation of the requirement in paragraph (g) of Section 106 of the Trafficking Victims Protection Act of 2000 (TVPA) as amended (22 U.S.C. 7104(g)). Termination may occur as described in 2 CFR part 175, Award Term for Trafficking in Persons.
- by the NEH with the consent of the recipient, in which case the two parties shall agree upon the termination conditions, including the effective date and, in the case of partial termination, the portion of the project to be terminated; or
- by the recipient upon sending to the NEH written notification setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion of the project to be terminated. However, if the NEH determines that the reduced or modified portion of the award will not accomplish the purposes for which the award was made, it may terminate the award in its entirety either unilaterally or with the consent of the recipient.
When the NEH determines that a recipient has failed to comply with the terms and conditions of the award, the NEH may suspend or terminate the award for cause. Normally, this action will be taken only after the recipient has been notified of the deficiency and given sufficient time to correct it, but this does not preclude immediate suspension or termination when such action is required to protect the interests of the government.
In the event that an award is suspended and corrective action is not taken within 90 days of the effective date, the NEH may issue a notice of termination. No costs that are incurred during the suspension period or after the effective date of termination will be allowable, except those that are specifically authorized by the suspension or termination notice or those that, in the opinion of the NEH, could not have been reasonably avoided.
Within 30 calendar days of the termination date, the recipient shall furnish to the NEH a summary of progress achieved under the award, an itemized accounting of charges incurred against award funds and cost sharing prior to the effective date of the suspension or termination, and a separate accounting and justification for any costs that may have been incurred after this date.
A state humanities council that has received a notice of termination may request the NEH’s review of the termination action. The request must be submitted by the institutional grant administrator through eGMS Reach no later than 30 calendar days after the date of the termination notice and should be addressed to the Deputy Chairman, National Endowment for the Humanities, 400 7th Street, SW, Washington, DC 20506.
The request for review must contain a full statement of the council’s position and the pertinent facts and reasons that support such a position. The Office of Grant Management will promptly acknowledge the request for review and the NEH Deputy Chairman shall appoint a review committee of at least three staff members. Pending the resolution of the review request, the notice of termination will remain in effect.
None of the review committee members may be staff from the Federal/State Partnership or the section of the Office of Grant Management that recommended termination or was responsible for monitoring the programmatic or administrative aspects of the award. The committee will have full access to all relevant background materials. The committee may also request the submission of additional information from the council or the NEH staff and, at its discretion, may meet with representatives of both groups to discuss the pertinent issues. All review activities will be fully documented by the committee. Based on its review, the committee will present its written recommendation to the Deputy Chairman, who will advise the parties concerned of the final decision.
With the exception of reporting forms and methods of payment, the uniform administrative requirements of 2 CFR part 200 apply not only to the state humanities councils but also to their subrecipients. The administrative requirements that are most relevant to the councils’ subaward (regranting) programs are included in this appendix. State humanities councils should also carefully review 2 CFR §200.331. See 2 CFR §200.331(a) for information to be included in each subaward. Also see Appendix II to Part 200-Contract Provisions for Non-Federal Entity Contracts under Federal Awards.
- Payments (2 CFR §200.305)
Councils are to pay their subrecipients on an advance basis, provided the subrecipients’ financial management systems meet the standards for fund control and accountability found in Article 16 of these general terms and conditions.
Subrecipients must be authorized to submit requests for advance payments and reimbursements at least monthly when electronic fund transfers are not used, and as often as they like when electronic transfers are used, in accordance with the provisions of the Electronic Fund Transfer Act (15 U.S.C. 1693-1693r).
Councils may withhold a small amount of a subaward (not more than 10 percent) if this is the only way to ensure the timely submission of final reports from the subrecipient. Councils should take care that this delay in funding does not jeopardize the project or cause financial hardship for the subrecipient. Final payment should be made promptly once the required reports are received.
- Interest Earned on Advances (2 CFR §200.305)
Subrecipients are required to maintain advances of federal funds in interest‑bearing accounts unless they receive less than $120,000 in federal awards during their fiscal year. If a subrecipient chooses to deposit these funds in an interest‑bearing account, it may retain the first $500 in interest earned each fiscal year. Interest earned in excess of this amount on funds advanced by a council shall be forwarded to the council and returned to the Department of Health and Human Services, as detailed in 2 CFR §200.305 (9).
- Program Changes (2 CFR §200.308)
All changes in the scope or the objectives of a project, the project director, or the duration of the project should be approved in writing by councils. Councils may also require that their approval be obtained before a subrecipient may subcontract or transfer substantive project work. See 2 CFR §200.308 Revision of budget and program plans.
- Budget Changes
Councils may require subrecipents to seek approval for budget changes that involve the addition or deletion of budget items, the inclusion of costs that were specifically disallowed by the terms of the award, the transfer of funds allotted for training purposes, for example, participant stipends and fellowship awards, and the transfer of funds that were budgeted for direct costs to absorb increases in indirect costs or indirect‑cost type items. See 2 CFR §200.308 Revision of budget and program plans.
- Reporting Requirements (2 CFR §§200.327 – 329)
Councils may not require the submission of performance or financial reports more frequently than quarterly.
Subrecipients shall have 30 days following the reporting period to submit interim reports, if applicable, and 90 days from the completion date of the subaward period of performance to submit final reports.
- Program Income (2 CFR §200.307)
Councils shall stipulate in their subawards how the subrecipient is to use program income earned during the period of performance. Councils may stipulate one of the following:
- Addition: program income may be added to the existing project funding to cover otherwise allowable costs of the project or it may be used to support other projects in the humanities;
- Deduction: program income must be used to finance the federal share of the project costs, which would result in an equivalent reduction in the amount of the subaward.
- Cost sharing or matching: program income may be used to meet the cost sharing or matching requirement of the NEH award.
Unless a council specifies in the award how income earned during the subaward period of performance, the subrecipient must use the deduction method, thereby reducing the award amount (2 CFR §200.307(e)(1)).
Written procedures for the suspension and termination of subawards and the review of a termination action should be issued as a part of the terms and conditions of the subaward. See 2 CFR §200.331(a) for information to be included in each subaward.
- Acknowledgment of NEH Support and Disclaimer
The provisions of Article 3 apply to subrecipents.
- Research Misconduct Policy
The provisions of Article 37 apply to subrecipients.
- Government-wide Requirements
The Nondiscrimination (Article 25), Lobbying Activities (Article 26), Debarment and Suspension (Article 28) ), Native American Graves Protection and Repatriation Act of 1990 (Article 30), National Historic Preservation Act of 1966 (Article 31), U.S. Constitution Day Education Program (Article 32), and Coordination of Geographic Information and Related Spatial Data (Article 33) requirements apply to subrecipients.
- Reporting of first-tier subawards
A. Applicability. Unless you are exempt as provided in paragraph D. of this award term, you must report each action that obligates $25,000 or more in Federal funds for a subaward to an entity (see definitions in paragraph e. of this award term).
B. Where and when to report.
- For subaward information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2018, the obligation must be reported by no later than December 31, 2018.)
- You must report each obligating action described in paragraph A.1. of this award term to http://www.fsrs.gov.
C. What to report. You must report the information about each obligating action, as specified in the submission instructions posted at http://www.fsrs.gov.
- Reporting Total Compensation of Recipient Executives
A. Applicability and what to report.
You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if--
1) the total Federal funding authorized to date under this award is $25,000 or more;
2) in the preceding fiscal year, you received--
- $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR §170.320 (and subawards); and
- 80 percent or more of your annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR §170.320 (and subawards); and
3) The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at http://www.sec.gov/answers/execomp.htm.)
B. Where and when to report.
You must report executive total compensation described in paragraph B.1. of this award term.
- By the end of the month following the month in which this award is made, and annually thereafter.
- As part of your registration profile at https://www.sam.gov.
- Reporting of Total Compensation of Subrecipient Executives
A. Applicability and what to report.
Unless you are exempt as provided in paragraph D. of this award term, for each first-tier subrecipient under this award, you shall report the names and total compensation of each of the subrecipient's five most highly compensated executives for the subrecipient's preceding completed fiscal year, if--
1) The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at http://www.sec.gov/answers/execomp.htm.)
2) in the subrecipient's preceding fiscal year, the subrecipient received--
- 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR §170.320 (and subawards); and
- $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and subawards); and
B. Where and when to report.
You must report subrecipient executive total compensation described in paragraph C.1. of this award term:
- By the end of the month following the month during which you make the subaward. For example, if a subaward is obligated on any date during the month of October of a given year (i.e., between October 1 and 31), you must report any required compensation information of the subrecipient by November 30 of that year.
- To the recipient.
If, in the previous tax year, you had gross income, from all sources, under $300,000, you are exempt from the requirements to report:
- Subawards, and
- The total compensation of the five most highly compensated executives of any subrecipient.
For purposes of this award term:
Entity means all of the following, as defined in 2 CFR part 25:
- A Governmental organization, which is a State, local government, or Indian tribe;
- A foreign public entity;
- A domestic or foreign nonprofit organization;
- A domestic or foreign for-profit organization;
- A Federal agency, but only as a subrecipient under an award or subaward to a non-Federal entity.
Executive means officers, managing partners, or any other employees in management positions.
Subaward means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. A subaward may be provided through any legal agreement, including an agreement that you or a subrecipient considers a contract. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see 2 CFR §200.92)
Subrecipient means an entity that:
- Is accountable to you for the use of the Federal funds provided by the subaward.
- Receives a subaward from you (the recipient) under this award
Total compensation means the cash and noncash dollar value earned by the executive during the recipient's or subrecipient's preceding fiscal year and includes the following (for more information see 17 CFR 229.402(c)(2)):
Other compensation, if the aggregate value of all such other compensation (for example, severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property) for the executive exceeds $10,000.
- Above-market earnings on deferred compensation that is not tax-qualified.
- Change in pension value. This is the change in present value of defined benefit and actuarial pension plans.
- Earnings for services under non-equity incentive plans. This does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees.
- Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS 123R), Shared Based Payments.
- Salary and bonus.
Central Contractor Registration and Universal Identifier Requirements (2 CFR Part 25 - Financial Assistance Use of Universal Identifier and Central Contractor Registration; Appendix A to Part 25--Award Term)
A. Requirement for Central Contractor Registration (CCR)
Unless you are exempted from this requirement under 2 CFR §25.110, you as the recipient must maintain the currency of your information in the CCR until you submit the final financial report required under this award or receive the final payment, whichever is later. This requires that you review and update the information at least annually after the initial registration, and more frequently if required by changes in your information or another award term.
B. Requirement for Data Universal Numbering System (DUNS) Numbers
If you are authorized to make subawards under this award, you:
- Must notify potential subrecipients that no entity (see definition in paragraph C of this award term) may receive a subaward from you unless the entity has provided its DUNS number to you.
- May not make a subaward to an entity unless the entity has provided its DUNS number to you.
For purposes of this award term:
Central Contractor Registration (CCR) means the Federal repository into which an entity must provide information required for the conduct of business as a recipient. Additional information about registration procedures may be found at https://www.sam.gov.
Data Universal Numbering System (DUNS) number means the nine-digit number established and assigned by Dun and Bradstreet, Inc. (D&B) to uniquely identify business entities. A DUNS number may be obtained from D&B by telephone (currently 866-705-5711) or at http://fedgov.dnb.com/webform.
Entity, as it is used in this award term, means all of the following, as defined at 2 CFR part 25, subpart C:
- A Federal agency, but only as a subrecipient under an award or subaward to a non-Federal entity
- A domestic or foreign for-profit organization
- A domestic or foreign nonprofit organization
- A foreign public entity
- A Governmental organization, which is a State, local government, or Indian Tribe
Subaward: This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. The term does not include your procurement of property and services needed to carry out the project or program (for further explanation, see 2 CFR §200.92. A subaward may be provided through any legal agreement, including an agreement that you consider a contract.
Subrecipient means an entity that receives a subaward from you under this award; and is accountable to you for the use of the Federal funds provided by the subaward.
In accordance with Public Law 111-88 Sec.427, none of the funds made available under an NEH award may be distributed to the Association of Community Organizations for Reform Now (ACORN) or its subsidiaries.