7.08.010 Minimum grant standards and requirements.
A. The following minimum grant standards and requirements shall be incorporated into all Borough grant agreements unless the Assembly in the appropriating or authorizing ordinance waives a standard or requirement:
1. Goals and Objectives. Each grant recipient shall provide the Borough with attainable and measurable goal(s), objective(s), and/or outcome(s) which address the purpose(s) of the grant award.
2. Payment Schedule. Each grant award shall outline a payment schedule which reflects the cash flow needs of the recipient balanced with the compliance requirements of the Borough. Advances are neither prohibited nor required. Retainages are recommended.
3. Use of Grant Funds. Grant funds may not be used for expenses or obligations incurred outside the effective dates of the grant award.
a. Recipients of Borough grants shall comply with the U.S. Office of Management and Budget (OMB) rules and regulations, specifically 2 CFR 200.400 through 200.410 and 200.416 through 200.475 (Subpart E – Cost Principles).
b. Notwithstanding the OMB cost principles, the following costs shall be unallowable:
i. Alcoholic beverages;
ii. Bad debts;
iii. Contingency provisions;
iv. Donations and contributions;
v. Entertainment costs;
vi. Fines and penalties;
vii. Goods or services for personal use;
viii. Legal expenses for claims against the Borough;
ix. Lobbying; and
x. Memberships in organizations substantially engaged in lobbying; and
The following costs shall require prior approval from the Borough:
xi. Fundraising costs;
xii. Capital expenditures.
c. The grant agreement may, at the Borough’s sole discretion, prohibit or further restrict additional expenditures.
d. Expenditures charged to, and reimbursed by, the Borough grant may not likewise be reported to, and reimbursed by, any other grant or other external funding source (i.e., no “double-dipping” is allowed).
e. Disallowed expenditures shall be returned to the Borough.
4. Financial Management System. The grant recipient shall establish and maintain a financial management system conforming with generally accepted accounting principles and maintain the financial records and accounts in a manner which permits them to be audited for compliance with the grant award.
5. Reporting. The grant recipient shall submit to the Borough periodic financial reports, as prescribed by the Chief Financial Officer (CFO), and narrative status reports at least quarterly. Barring compelling circumstances, as determined by the CFO, reports are due no later than one month after the reporting period end date. Narrative status reports shall describe progress toward the goal(s)/objective(s)/outcome(s) of the grant award.
6. Audits. During normal business hours, the grant recipient shall permit the Borough or its representative to review, monitor, audit, and evaluate all financial and programmatic records of the grant recipient to determine compliance with the terms and conditions of the grant award. If an independent, Borough, federal, or state audit finding indicates unallowable costs, then a plan for reimbursement shall be submitted to the Borough within 30 days of the audit completion. A plan for correcting all findings, questioned costs, internal control deficiencies/reportable conditions, and material weaknesses/significant deficiencies must also be submitted within 45 days of the audit completion.
7. Records Management and Retention. The grant recipient shall retain grant and subcontract records, including records of the receipt and disposition of grant income, for a period of three years from the date of submission to the Borough of the grant recipient’s final financial and narrative status reports. The grant recipient shall continue to retain records as long as an audit is in progress or as long as audit findings, litigation, or claims involving the records are pending. After resolution, the grant recipient shall retain required records for an additional three years. If for any reason the grant recipient ceases operations before the end of any record retention period, all financial and program records shall be delivered to the Borough.
8. Duties Upon Termination/Expiration. If the grant recipient receives payments exceeding the amount to which it is entitled, it shall remit the excess to the Borough within 30 days of receiving written notice of termination. The grant recipient shall not be entitled to final compensation until all final financial and narrative status reports and documentation required or requested by the Borough have been delivered to the Borough. If any costs are disallowed as a result of a subsequent audit, the Borough may recover those costs. Upon expiration of the grant award, the grant recipient shall promptly refund to the Borough any unobligated grant funds paid to the grant recipient. Obligated funds must be expended or returned to the Borough within 30 days after expiration of the grant award. (Ord. 2021-41 § 2, 2022; Ord. 2016-40 § 42, 2016; Ord. 2011-34 § 2, 2011; Ord. 2006-18 § 2, 2006. 2004 Code § 3.02.010.)