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PRINTER'S NO. 2925
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2480
Session of
2022
INTRODUCED BY GROVE, JAMES, ROTHMAN, COOK, KEEFER, RYAN,
MILLARD, SAYLOR, ROWE, BERNSTINE AND MOUL, APRIL 4, 2022
REFERRED TO COMMITTEE ON STATE GOVERNMENT, APRIL 4, 2022
AN ACT
Amending the act of April 9, 1929 (P.L.343, No.176), entitled
"An act relating to the finances of the State government;
providing for cancer control, prevention and research, for
ambulatory surgical center data collection, for the Joint
Underwriting Association, for entertainment business
financial management firms, for private dam financial
assurance and for reinstatement of item vetoes; providing for
the settlement, assessment, collection, and lien of taxes,
bonus, and all other accounts due the Commonwealth, the
collection and recovery of fees and other money or property
due or belonging to the Commonwealth, or any agency thereof,
including escheated property and the proceeds of its sale,
the custody and disbursement or other disposition of funds
and securities belonging to or in the possession of the
Commonwealth, and the settlement of claims against the
Commonwealth, the resettlement of accounts and appeals to the
courts, refunds of moneys erroneously paid to the
Commonwealth, auditing the accounts of the Commonwealth and
all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
every State depository and every debtor or creditor of the
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Commonwealth," providing for Commonwealth grant
accountability and transparency.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of April 9, 1929 (P.L.343, No.176), known
as The Fiscal Code, is amended by adding an article to read:
ARTICLE I-K
COMMONWEALTH GRANT ACCOUNTABILITY AND TRANSPARENCY
Section 101-K. Scope and purpose.
(a) Purpose.--The purpose of this article is to establish
uniform administrative requirements, cost principles and audit
requirements for Federal awards and Commonwealth awards to non-
Federal entities. Commonwealth awarding agencies may not impose
additional or inconsistent requirements, except as provided in 2
CFR 200.102 (relating to exceptions), unless specifically
required by Federal or Commonwealth statute. This article and
the rules adopted under this article shall not apply to private
awards.
(b) Scope.--This article and the rules adopted under this
article provide the basis for a systematic and periodic
collection and uniform submission to the Office of the Budget of
information of all Federal and Commonwealth financial assistance
programs by Commonwealth grant-making agencies. This article
establishes policies related to the delivery of information to
the public, including through the use of electronic media.
Section 102-K. Definitions.
The following words and phrases when used in this article
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Allowable cost." A cost allowable to a project if the
following apply:
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(1) The costs are reasonable and necessary for the
performance of the award.
(2) The costs are allocatable to the specific project.
(3) The costs are treated consistently in like
circumstances to both federally financed activities and other
activities of the non-Federal entity.
(4) The costs conform to any limitations of the cost
principles or the sponsored agreement.
(5) The costs are accorded consistent treatment. A cost
may not be assigned to a Federal award or Commonwealth award
as a direct cost if any other cost incurred for the same
purpose in similar circumstances has been allocated to the
award as an indirect cost.
(6) The costs are determined to be in accordance with
generally accepted accounting principles.
(7) The costs are not included as a cost or used to meet
Federal cost-sharing or matching requirements of any other
program in either the current or prior period.
(8) The costs of one Federal or Commonwealth grant are
not used to meet the match requirements of another Federal or
Commonwealth grant.
(9) The costs are adequately documented.
"Auditee." A non-Federal entity that expends Federal awards
or Commonwealth awards that must be audited under this article.
"Auditor." An auditor who is a public accountant or a
Federal, Commonwealth or local government audit organization
that meets the general standards specified in generally accepted
government auditing standards. The term does not include
internal auditors of nonprofit organizations.
"Auditor General." The Auditor General of the Commonwealth.
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"Award." Financial assistance that provides support or
stimulation to accomplish a public purpose. The term includes
grants and other agreements in the form of money, or property in
lieu of money, by the Federal or Commonwealth government to an
eligible recipient. The term does not include:
(1) technical assistance that provides services instead
of money;
(2) other assistance in the form of loans, loan
guarantees, interest subsidies or insurance;
(3) direct payments of any kind to individuals; or
(4) contracts that must be entered into and administered
under Federal or Commonwealth procurement laws and
regulations.
"Budget." The financial plan for the project or program that
the awarding agency or pass-through entity approves during the
award process or in subsequent amendments to the award. It may
include the Federal share or Commonwealth share and non-Federal
share or only the Federal share or Commonwealth share, as
determined by the awarding agency or pass-through entity.
"Catalog of Commonwealth Financial Assistance." The
comprehensive source document of Commonwealth financial
assistance program information maintained by the Office of the
Budget.
"Catalog of Commonwealth Financial Assistance Number." The
number assigned to a Commonwealth program in the Catalog of
Commonwealth Financial Assistance. The first three digits
represent the Commonwealth agency number and the last four
digits represent the program.
"Catalog of Federal Domestic Assistance" or "CFDA." A
database that helps the Federal Government track all programs it
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has domestically funded.
"Catalog of Federal Domestic Assistance number" or "CFDA
number." The number assigned to a Federal program in the CFDA.
"Cluster of programs." A grouping of closely related
programs that share common compliance requirements. The types of
clusters of programs include research and development, student
financial aid, and other clusters. A cluster of programs shall
be considered as one program for determining major programs and,
with the exception of research and development, whether a
program-specific audit may be elected.
"Cognizant agency for audit." The Federal agency designated
to carry out the responsibilities described in 2 CFR 200.513(a)
(relating to responsibilities).
"Commonwealth agency." An agency of the Commonwealth. The
term does not include public institutions of higher education.
"Commonwealth award." The financial assistance that a non-
Federal entity receives from the Commonwealth and that is funded
with either Federal funds or Commonwealth funds.
"Commonwealth awarding agency." A Commonwealth agency that
provides an award to a non-Federal entity.
"Commonwealth grant-making agency." The term shall have the
same meaning as Commonwealth awarding agency.
"Commonwealth interest." The acquisition or improvement of
real property, equipment or supplies under a Commonwealth award,
the dollar amount that is the product of the Commonwealth share
of the total project costs and current fair market value of the
property or improvements, or both, to the extent that the costs
of acquiring or improving the property were included as project
costs.
"Commonwealth program." Any of the following:
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(1) All Commonwealth awards which are assigned a single
number in the Catalog of Commonwealth Financial Assistance.
(2) When no Catalog of Commonwealth Financial Assistance
number is assigned, all Commonwealth awards to non-Federal
entities from the same agency made for the same purpose are
considered one program.
(3) A cluster of programs.
"Commonwealth share." The portion of the total project costs
that are paid by the Commonwealth.
"Contract." A legal instrument by which a non-Federal entity
purchases property or services needed to carry out the project
or program under an award. The term does not include a legal
instrument, even if the non-Federal entity considers it a
contract, when the substance of the transaction meets the
definition of an award or subaward.
"Contractor." An entity that receives a contract.
"Cooperative agreement."
(1) A legal instrument of financial assistance between
an awarding agency or pass-through entity and a non-Federal
entity that:
(i) is used to enter into a relationship with the
principal purpose of transferring anything of value from
the awarding agency or pass-through entity to the non-
Federal entity to carry out a public purpose authorized
by law, but is not used to acquire property or services
for the awarding agency's or pass-through entity's direct
benefit or use; and
(ii) is distinguished from a grant in that it
provides for substantial involvement between the awarding
agency or pass-through entity and the non-Federal entity
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in carrying out the activity contemplated by the award.
(2) The term does not include a cooperative research and
development agreement, nor an agreement that provides only
direct cash assistance to an individual, a subsidy, a loan, a
loan guarantee or insurance.
"Corrective action." Action taken by an auditee that:
(1) corrects identified deficiencies;
(2) produces recommended improvements; or
(3) demonstrates that audit findings are either invalid
or do not warrant auditee action.
"Cost objective." A program, function, activity, award,
organizational subdivision, contract or work unit for which cost
data is desired and for which provision is made to accumulate
and measure the cost of processes, products, jobs and capital
projects. The term may include a major function of a non-Federal
entity, a particular service or project, an award or an indirect
cost activity.
"Cost sharing." The portion of project costs not paid by
Federal or Commonwealth funds, unless otherwise authorized by
statute.
"Data Universal Numbering System number." The nine-digit
number established and assigned by Dun and Bradstreet, Inc., to
uniquely identify entities and, under Federal law, is required
for non-Federal entities to apply for, receive and report on a
Federal award.
"Debarment and Suspension List." The list maintained by the
Office of the Budget that contains the names of those
individuals and entities that are ineligible, either temporarily
or permanently, from receiving an award of grant funds from the
Commonwealth.
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"Development." The systematic use of knowledge and
understanding gained from research directed toward the
production of useful materials, devices, systems or methods,
including design and development of prototypes and processes.
"Direct costs." Costs that can be identified specifically
with a particular final cost objective, such as a Federal award
or Commonwealth award or a particular sponsored project, an
instructional activity or any other institutional activity, or
that can be directly assigned to such activities relatively
easily with a high degree of accuracy.
"Equipment." Tangible personal property, including
information technology systems, having a useful life of more
than one year and a per-unit acquisition cost that equals or
exceeds the lesser of the capitalization level established by
the non-Federal entity for financial statement purposes or
$5,000.
"Executive branch." The branch of State government that is
under the jurisdiction of the Governor.
"Federal Acquisition Regulation." The regulation for use by
all executive agencies for the acquisition of supplies and
services with appropriated funds under 48 CFR Ch.1 (relating to
Federal Acquisition Regulation).
"Federal agency." The term has the meaning provided to
"agency" under 5 U.S.C. § 552(f) (relating to public
information; agency rules, opinions, orders, records, and
proceedings).
"Federal award." As follows:
(1) (i) the Federal financial assistance that a non-
Federal entity receives directly from a Federal awarding
agency or indirectly from a pass-through entity;
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(ii) the cost-reimbursement contract under the
Federal Acquisition Regulations that a non-Federal entity
receives directly from a Federal awarding agency or
indirectly from a pass-through entity; or
(iii) the instrument setting forth the terms and
conditions when the instrument is the grant agreement,
cooperative agreement, other agreement for assistance
covered in 2 CFR 200.40(b) (relating to Federal financial
assistance), or the cost-reimbursement contract awarded
under the Federal Acquisition Regulations.
(2) The term does not include other contracts that a
Federal agency uses to buy goods or services from a
contractor or a contract to operate Federal Government-owned,
contractor-operated facilities.
"Federal awarding agency." The Federal agency that provides
a Federal award directly to a non-Federal entity.
"Federal interest." For purposes of 2 CFR 200.329 (relating
to monitoring and reporting program performance) or when used in
connection with the acquisition or improvement of real property,
equipment or supplies under a Federal award, the dollar amount
that is the product of the Federal share of total project costs
and current fair market value of the property or improvements,
or both, to the extent the costs of acquiring or improving the
property were included as project costs.
"Federal program." Any of the following:
(1) All Federal awards which are assigned a single
number in the CFDA.
(2) When no CFDA number is assigned, all Federal awards
to non-Federal entities from the same agency made for the
same purpose should be combined and considered one program.
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(3) Notwithstanding paragraphs (1) and (2), a cluster of
programs.
"Federal share." The portion of the total project costs that
are paid by Federal funds.
"Final cost objective." A cost objective to which both
direct and indirect costs have been allocated and, in the non-
Federal entity's accumulation system, is one of the final
accumulation points, such as a particular award, internal
project, or other direct activity of a non-Federal entity.
"Financial assistance." As follows:
(1) For grants and cooperative agreements, assistance
that non-Federal entities receive or administer in the form
of:
(i) grants;
(ii) cooperative agreements;
(iii) noncash contributions or donations of
property, including donated surplus property;
(iv) direct appropriations;
(v) food commodities; and
(vi) other financial assistance, except assistance
listed in paragraph (2).
(2) The term includes assistance that non-Federal
entities receive or administer in the form of loans, loan
guarantees, interest subsidies and insurance.
(3) The term does not include amounts received as
reimbursement for services rendered to individuals.
"Fixed amount awards." A type of grant agreement under which
the awarding agency or pass-through entity provides a specific
level of support without regard to actual costs incurred under
the award.
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"Foreign organization." An entity that is:
(1) a public or private organization located in a
country other than the United States and its territories that
is subject to the laws of the country in which it is located,
irrespective of the citizenship of project staff or place of
performance;
(2) a private nongovernmental organization located in a
country other than the United States that solicits and
receives cash contributions from the general public;
(3) a charitable organization located in a country other
than the United States that is nonprofit and tax exempt under
the laws of its country of domicile and operation, but is not
a university, college, accredited degree-granting institution
of education, private foundation, hospital, organization
engaged exclusively in research or scientific activities,
church, synagogue, mosque, or other similar entity organized
primarily for religious purposes; or
(4) an organization located in a country other than the
United States not recognized as a foreign public entity.
"Foreign public entity." As follows:
(1) a foreign government or foreign governmental entity;
(2) a public international organization that is entitled
to enjoy privileges, exemptions and immunities as an
international organization under the International
Organizations Immunities Act (22 U.S.C. 288-288f);
(3) an entity owned, in whole or in part, or controlled
by a foreign government; or
(4) any other entity consisting wholly or partially of
one or more foreign governments or foreign governmental
entities.
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"Generally accepted accounting principles." The term has the
meaning provided in accounting standards issued by the
Government Accounting Standards Board and the Financial
Accounting Standards Board, as those standards exist on the
effective date of this section.
"Generally accepted government auditing standards."
Generally accepted government auditing standards issued by the
Comptroller General of the United States that are applicable to
financial audits, as those standards exist on the effective date
of this section.
"Grant agreement." The following:
(1) A legal instrument of financial assistance between
an awarding agency or pass-through entity and a non-Federal
entity that:
(i) is used to enter into a relationship, the
principal purpose of which is to transfer anything of
value from the awarding agency or pass-through entity to
the non-Federal entity to carry out a public purpose
authorized by law and not to acquire property or services
for the awarding agency or pass-through entity's direct
benefit or use; and
(ii) is distinguished from a cooperative agreement
in that it does not provide for substantial involvement
between the awarding agency or pass-through entity and
the non-Federal entity in carrying out the activity
contemplated by the award.
(2) The term does not include an agreement that provides
only direct cash assistance to an individual, a subsidy, a
loan, a loan guarantee or insurance.
"Grant application." A specified form that is completed by a
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non-Federal entity in connection with a request for a specific
funding opportunity or a request for financial support of a
project or activity.
"Hospital." A facility licensed as a hospital under the law
of any state or a facility operated as a hospital by the United
States, a state, or a subdivision of a state.
"Indirect cost." Costs incurred for a common or joint
purpose benefiting more than one cost objective and not readily
assignable to the cost objectives specifically benefited without
effort disproportionate to the results achieved.
"Inspector General." The Office of Inspector General of the
Commonwealth.
"Loan." A Federal or Commonwealth loan or loan guarantee
received or administered by a non-Federal entity. The term does
not include a "program income" as defined in 2 CFR 200.80
(relating to program income).
"Loan guarantee." A Federal or Commonwealth government
guarantee, insurance or other pledge with respect to the payment
of all or a part of the principal or interest on any debt
obligation of a non-Federal borrower to a non-Federal lender.
The term does not include the insurance of deposits, shares or
other withdrawable accounts in financial institutions.
"Local government." The term shall include:
(1) Municipalities.
(2) Municipal authorities.
(3) Local authorities.
(4) School districts.
"Major program." A Federal program determined by an auditor
to be a major program in accordance with 2 CFR 200.518 (relating
to major program determination) or a program identified as a
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major program by a Federal awarding agency or pass-through
entity in accordance with 2 CFR 200.503(e) (relating to relation
to other audit requirements).
"Non-Federal entity." A State, local government, Indian
tribe, institution of higher education or organization, whether
nonprofit or for-profit, that carries out a Federal award or
Commonwealth award as a recipient or subrecipient.
"Nonprofit organization." A corporation, trust, association,
cooperative or other organization, not including institutions of
higher education, that:
(1) is operated primarily for scientific, educational,
service, charitable, or similar purposes in the public
interest;
(2) is not organized primarily for profit; and
(3) uses net proceeds to maintain, improve, or expand
the operations of the organization.
"Obligations." When used in connection with a non-Federal
entity's utilization of funds under an award, orders placed for
property and services, contracts and subawards made and similar
transactions during a given period that require payment by the
non-Federal entity during the same or a future period.
"Office of Management and Budget." The Office of Management
and Budget of the Executive Office of the President.
"Other clusters." The term has the meaning provided by the
Office of Management and Budget in the Compliance Supplement of
2021. When designating an other cluster, the Secretary of the
Commonwealth must identify the Federal awards included in the
cluster and advise the subrecipients of compliance requirements
applicable to the cluster.
"Oversight agency for audit." The Federal awarding agency
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that provides the predominant amount of funding directly to a
non-Federal entity not assigned a cognizant agency for audit.
When there is no direct funding, the awarding agency that is the
predominant source of pass-through funding must assume the
oversight responsibilities.
"Pass-through entity." A non-Federal entity that provides a
subaward to a subrecipient to carry out part of a program.
"Private award." An award from a person or entity other than
a Federal or Commonwealth entity.
"Project cost." Total allowable costs incurred under an
award and all required cost sharing and voluntary committed cost
sharing, including third-party contributions.
"Property." Real or personal property.
"Public institution of higher education." As defined under
section 2001-C of the act of March 10, 1949 (P.L.30, No.14),
known as the Public School Code of 1949.
"Recipient." A non-Federal entity that receives an award
directly from an awarding agency to carry out an activity under
a program. The term does not include subrecipients.
"Research and development." All research activities, both
basic and applied, and all development activities that are
performed by a non-Federal entity.
"Single Audit Act." The Federal Single Audit Act Amendments
of 1996 (Public Law 104-156, 100 Stat. 1396).
"Stop-payment order." A communication from a Commonwealth
grant-making agency to the Office of Comptroller Operations,
following procedures as determined by the Office of Comptroller
Operations, causing the cessation of payments to a recipient or
subrecipient as a result of the recipient's or subrecipient's
failure to comply with one or more terms of the grant or
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subaward.
"Stop-payment procedure." The procedure created by the
Office of the Comptroller which effects a stop-payment order and
the lifting of a stop-payment order upon the request of the
Commonwealth grant-making agency.
"Student financial aid." Federal awards under those programs
of general student assistance, such as those authorized by Title
IV of the Higher Education Act of 1965, as amended (20 U.S.C.
1070-1099d), that are administered by the United States
Department of Education and similar programs provided by other
Federal agencies. The term does not include Federal awards under
programs that provide fellowships or similar Federal awards to
students on a competitive basis or for specified studies or
research.
"Subaward." A Federal award or Commonwealth award provided
by a pass-through entity to a subrecipient for the subrecipient
to carry out part of a Federal award received by the pass-
through entity. The term does not include payments to a
contractor or payments to an individual that is a beneficiary of
a Federal program. A subaward may be provided through any form
of legal agreement, including an agreement that the pass-through
entity considers a contract.
"Subrecipient." A non-Federal entity that receives a Federal
subaward or Commonwealth subaward from a pass-through entity to
carry out part of a Federal program. The term does not include
an individual that is a beneficiary of the program. A
subrecipient may also be a recipient of other Federal awards or
Commonwealth awards directly from a Federal awarding agency or
Commonwealth awarding agency.
"Suspension." A post-award action by a Federal agency or
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Commonwealth agency or pass-through entity that temporarily
withdraws the Federal agency or Commonwealth agency's or pass-
through entity's financial assistance sponsorship under an
award, pending corrective action by the recipient or
subrecipient or pending a decision to terminate the award.
"Uniform administrative requirements, cost principles, and
audit requirements for Federal awards." The rules applicable to
grants contained in 2 CFR Pt. 200 (relating to uniform
administrative requirements, cost principles, and audit
requirements for Federal awards).
"Voluntary committed cost sharing." Cost sharing that is
specifically pledged on a voluntary basis in the proposal's
budget or the award on the part of the non-Federal entity and
that becomes a binding requirement of the award.
Section 103-K. Adoption of Federal rules applicable to grants.
(a) Rules.--On or before July 1, 2022, the Office of the
Budget shall adopt rules that adopt the Uniform Guidance at 2
CFR Pt. 200 (relating to uniform administrative requirements,
cost principles, and audit requirements for Federal awards). The
rules, which shall apply to all Federal awards and Commonwealth
awards effective on or after July 1, 2022, shall include the
following:
(1) Administrative requirements. In accordance with 2
CFR Pt. 200 Subpts. B (relating to general provisions), C
(relating to pre-Federal award requirements and contents of
Federal awards) and D (relating to post Federal award
requirements), the rules shall set forth the uniform
administrative requirements for grant and cooperative
agreements, including the requirements for the management by
Commonwealth awarding agencies of Federal grant programs
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before Federal awards and Commonwealth awards have been made
and requirements that Commonwealth awarding agencies may
impose on non-Federal entities in Federal awards and
Commonwealth awards.
(2) In accordance with 2 CFR Pt. 200 Subpt. E (relating
to cost principles), the rules shall establish principles for
determining the allowable costs incurred by non-Federal
entities under Federal awards and Commonwealth awards. The
principles are intended for cost determination, but are not
intended to identify the circumstances or dictate the extent
of Federal or Commonwealth pass-through participation in
financing a particular program or project. The principles
shall provide that Federal awards and Commonwealth awards
bear their fair share of cost recognized under these
principles, except where restricted or prohibited by Federal
or Commonwealth law.
(3) Audit and single audit requirements and audit
follow-up. In accordance with 2 CFR Pt. 200 Subpt. F
(relating to audit requirements) and the Federal Single Audit
Act Amendments of 1996, the rules shall set forth standards
to obtain consistency and uniformity among Federal awarding
agencies and Commonwealth awarding agencies for the audit of
non-Federal entities expending Federal awards and
Commonwealth awards. These provisions shall also set forth
the policies and procedures for Federal and Commonwealth
pass-through entities when using the results of these audits.
This paragraph shall not apply to for-profit subrecipients.
Audits of for-profit subrecipients must be conducted pursuant
to a Program Audit Guide issued by the Federal awarding
agency. If a Program Audit Guide is not available, the
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Commonwealth awarding agency must prepare a Program Audit
Guide in accordance with the 2 CFR Pt. 200 Subpt. F. For-
profit entities are subject to all other general
administrative requirements and cost principles applicable to
grants.
(b) Public institutions of higher education.--For public
institutions of higher education, this section shall apply only
to awards funded by Federal awards from a Commonwealth agency to
a public institution of higher education. Federal pass-through
awards from a Commonwealth agency to public institutions of
higher education are governed by and must comply with Federal
guidelines under 2 CFR Pt. 200.
(c) For-profit subrecipients.--The Commonwealth grant-making
agency is responsible for establishing requirements, as
necessary, to ensure compliance by a for-profit subrecipient.
The agreement with the for-profit subrecipient shall describe
the applicable compliance requirements and the for-profit
subrecipient's compliance responsibility. Methods to ensure
compliance for Federal awards and Commonwealth awards made to
for-profit subrecipients shall include pre-award audits,
monitoring during the agreement and post-award audits. The
Office of the Budget shall provide advice and technical
assistance to the Commonwealth grant-making agency as is
necessary or indicated.
Section 104-K. Supplemental rules.
(a) Adoption of rules.--On or before July 1, 2022, the
Office of the Budget shall adopt supplemental rules pertaining
to the following:
(1) Criteria to define mandatory formula-based grants
and discretionary grants.
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(2) The award of one-year grants for new applicants.
(3) The award of competitive grants in three-year terms
with one-year initial terms with the option to renew for up
to two additional years to coincide with the Federal award.
(4) The issuance of grants, including:
(i) public notice of announcements of funding
opportunities;
(ii) the development of uniform grant applications;
(iii) Commonwealth agency review of merit of
proposals and risk posed by applicants;
(iv) specific conditions for individual recipients,
including the use of a fiscal agent and additional
corrective conditions;
(v) certifications and representations;
(vi) pre-award costs;
(vii) performance measures and Statewide prioritized
goals; and
(viii) for mandatory formula grants, the merit of
the proposal and the risk posed should result in
additional reporting, monitoring or measures, such as
reimbursement-basis only.
(5) The development of uniform budget requirements,
which shall include:
(i) mandatory submission of budgets as part of the
grant application process;
(ii) mandatory requirements regarding contents of
the budget, including, at a minimum, common detail line
items specified under guidelines issued by the Office of
the Budget;
(iii) a requirement that the budget allow
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flexibility to add lines describing costs that are common
for the services provided as outlined in the grant
application;
(iv) a requirement that the budget include
information necessary for analyzing cost and performance
for use in budgeting for results; and
(v) caps on the amount of salaries that may be
charged to grants based on the limitations imposed by
Federal agencies.
(6) The development of prequalification requirements for
applicants, including the fiscal condition of the
organization and the provision of the following information:
(i) organization name;
(ii) Federal Employee Identification Number;
(iii) Data Universal Numbering System number;
(iv) fiscal condition;
(v) whether the applicant is in good standing with
the Secretary of the Commonwealth;
(vi) past performance in administering grants;
(vii) whether the applicant is on the Debarment and
Suspension List maintained by the Office of the Budget;
(viii) whether the applicant is on the Federal
Excluded Parties List; and
(ix) whether the applicant is on the Sanctioned
Party List maintained by the Pennsylvania Department of
Healthcare.
(b) Public institutions of higher education.--For public
institutions of higher education, this section shall apply only
to awards funded by Federal awards from a Commonwealth agency to
a public institution of higher education.
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Section 105-K. Catalog of Commonwealth Financial Assistance.
The Catalog of Commonwealth Financial Assistance shall be a
single, authoritative, Commonwealth-wide and comprehensive
source document of Commonwealth financial assistance program
information developed and administered by the Secretary of the
Budget. The catalog shall contain, at a minimum, the following
information:
(1) An introductory section that contains catalog
highlights, an explanation of how to use the catalog, an
explanation of the catalog and its contents and suggested
grant proposal writing methods and grant application
procedures.
(2) A comprehensive indexing system that categorizes
programs by issuing agency, eligible applicant, application
deadlines, function, popular name and subject area.
(3) Comprehensive appendices showing Commonwealth
assistance programs that require coordination through this
article and regulatory, legislative and executive order
authority for each program, commonly used abbreviations and
acronyms, agency regional and local office addresses, and
sources of additional information.
(4) A list of programs that have been added to or
deleted from the catalog and the various program numbers and
title changes.
(5) Program number, title and popular name, if
applicable.
(6) The name of the department or agency or independent
agency and primary organization subunit administering the
program.
(7) The enabling legislation.
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(8) The type or types of financial and nonfinancial
assistance offered by the program.
(9) Uses and restrictions placed upon the program.
(10) Eligibility requirements, including applicant
eligibility criteria, beneficiary eligibility criteria and
required credentials and documentation.
(11) Objectives and goals of the program.
(12) Information regarding application and award
processing, application deadlines, range of approval or
disapproval time, appeal procedure and availability of a
renewal or extension of assistance.
(13) Assistance considerations, including an explanation
of the award formula, matching requirements, and the length
and time-phasing of the assistance.
(14) Post-assistance requirements, including any
reports, audits and records that may be required.
(15) Program accomplishments describing quantitative
measures of program performance.
(16) Regulations, guidelines and literature containing
citations to the laws of this Commonwealth and the Code of
Federal Regulations and other pertinent informational
materials.
(17) The names, telephone numbers and e-mail addresses
of persons to be contacted for detailed program information
at the headquarters and regional and local levels.
Section 106-K. Conflicts of interest.
The Office of the Budget shall adopt rules regarding conflict
of interest policies for awards. A non-Federal entity must
disclose in writing any potential conflict of interest to the
pass-through entity in accordance with applicable awarding
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agency policy.
Section 107-K. Mandatory disclosures.
The Office of the Budget shall adopt rules requiring that the
applicant for an award disclose, in a timely manner and in
writing to the pass-through entity, all violations of Federal or
Commonwealth criminal law involving fraud, bribery or gratuity
violations potentially affecting the award. Failure to make the
required disclosures may result in any of the following remedial
actions:
(1) The temporary withholding of cash payments pending
correction of the deficiency by the awarding agency or non-
Federal entity or more severe enforcement action by the pass-
through entity.
(2) Disallowance of all or part of the cost of the
activity or action not in compliance.
(3) Whole or partial suspension or termination of the
award.
(4) Initiation of suspension or debarment proceedings as
authorized under rules adopted under section 103-K(a) and
awarding agency regulations or, in the case of a pass-through
entity, recommendation that the proceeding be initiated by
the awarding agency.
(5) Withholding further awards for the project or
program.
(6) Taking any other remedial action that may be legally
available.
Section 108-K. Applicability.
(a) General rule.--The requirements established under this
article apply to Commonwealth grant-making agencies that make
Federal awards and Commonwealth awards to non-Federal entities.
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These requirements apply to all costs related to Federal awards
and Commonwealth awards. The requirements established under this
article do not apply to private awards.
(b) Limitation.--Nothing in this article shall prohibit the
use of Commonwealth funds for purposes of Federal match or
maintenance of effort.
(c) Terms and conditions.--The following shall apply:
(1) The terms and conditions of Federal awards and
Commonwealth awards shall apply to subawards and
subrecipients unless this article or the terms and conditions
of the Federal award or Commonwealth award specifically
indicate otherwise.
(2) Non-Federal entities shall comply with requirements
of this article regardless of whether the non-Federal entity
is a recipient or subrecipient of a Federal award or
Commonwealth award.
(3) Pass-through entities shall comply with the
requirements set forth under the rules adopted under section
103-K(a), but not to any requirements in this article
directed towards Federal awarding agencies or Commonwealth
awarding agencies, unless the requirements of the Federal
awards or Commonwealth awards indicate otherwise.
(4) When a non-Federal entity is awarded a cost-
reimbursement contract, only 2 CFR 200.330 (relating to
reporting on real property), 2 CFR 200.331 (relating to
subrecipient and contractor determinations) and 2 CFR 200.332
(relating to requirements for pass-through entities) shall be
incorporated by reference into the contract. When the cost
accounting standards are applicable to the contract, the
standards shall take precedence over the requirements of this
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article unless they are in conflict with 2 CFR Pt. 200 Subpt.
F (relating to audit requirements). Costs that are made
unallowable under 10 U.S.C. § 2324(e) (Public Law 99-145, 99
Stat. 682) and 41 U.S.C. § 4304(a) (relating to specific
costs not allowable), as described in the Federal Acquisition
Regulation, subparts 31.2 and 31.603, are never allowable.
For requirements other than those covered in 2 CFR 200.330,
200.331 and 200.332, the terms of the contract and the
Federal Acquisition Regulation apply. With the exception of 2
CFR Pt. 200 Subpt. F, in any circumstances where the
provisions of Federal statutes or regulations differ from the
provisions of this article, the provision of the Federal
statutes or regulations govern. This includes, for agreements
with Indian tribes, the provisions of the Indian Self-
Determination and Education and Assistance Act, as amended,
25 U.S.C. Subch. II (relating to Indian self-determination
and education assistance).
(d) For-profit and foreign organizations.--Commonwealth
grant-making agencies may apply 2 CFR Pt. 200 Subpts. A
(relating to acronyms and definitions), B (relating to general
provisions), C (relating to pre-Federal award requirements and
contents of Federal awards), D (relating to post Federal award
requirements and E (relating to cost principles), to for-profit
entities, foreign public entities or foreign organizations,
except where the awarding agency determines that the application
would be inconsistent with the international obligations of the
United States or the statute or regulations of a foreign
government.
(e) Public institutions of higher education.--For public
institutions of higher education, the provisions of this article
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shall apply only to awards funded by Commonwealth appropriations
and Federal pass-through awards from a Commonwealth agency to
public institutions of higher education. 2 CFR Pt. 200 shall
apply to public institutions of higher education.
(f) Enhanced processes of grant-making agency.--Each grant-
making agency shall enhance its processes to monitor and address
noncompliance with reporting requirements and with program
performance standards. Where applicable, the process may include
a corrective action plan. The monitoring process shall include a
plan for tracking and documenting performance-based contracting
decisions.
(g) American Rescue Plan Act of 2021.--Notwithstanding any
provision of law to the contrary, grants awarded from Federal
money received under under Title IX, Subtitle M, section 9901 of
the American Rescue Plan Act of 2021 (Public Law 117-2, 135
Stat. 4) are subject to the provisions of this article, but only
to the extent required by Section 9901 of the American Rescue
Plan Act of 2021 and other applicable Federal law or regulation.
Section 109-K. Applicability.
(a) General rule.--Except as otherwise provided in this
section, the requirements established under this article apply
to Commonwealth grant-making agencies that make Federal awards
and Commonwealth awards to non-Federal entities. These
requirements apply to all costs related to Federal awards and
Commonwealth awards. The requirements established under this
article do not apply to private awards, to allocations of
Commonwealth revenues paid over by the Treasurer to units of
local government and other taxing districts.
(b) Application to subawards and subrecipients.--The terms
and conditions of Federal awards and Commonwealth awards apply
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to subawards and subrecipients unless a particular section of
this article or the terms and conditions of the Federal award or
Commonwealth award specifically indicate otherwise.
(c) Non-Federal entities.-- Non-Federal entities shall comply
with requirements of this article regardless of whether the non-
Federal entity is a recipient or subrecipient of a Federal award
or Commonwealth award. Pass-through entities shall comply with
the requirements set forth under the rules adopted under section
103-K(a), but not to any requirements in this article directed
towards Federal awarding agencies or Commonwealth awarding
agencies, unless the requirements of the Federal awards or
Commonwealth awards indicate otherwise.
Section 110-K. Commonwealth grant-making agency
responsibilities.
(a) Rules and responsibilities.--The requirements and
responsibilities of Commonwealth grant-making agencies and non-
Federal entities are set forth in this article. A Commonwealth
agency making awards to non-Federal entities must adopt by rule
the language in 2 CFR Pt. 200 Subpts. C (relating to pre-Federal
award requirements and contents of Federal awards), D (relating
to post Federal award requirements, E (relating to cost
principles) and F (relating to audit requirements) unless
different provisions are required by law.
(b) Chief accountability officer.--Each Commonwealth grant-
making agency shall appoint a chief accountability officer who
shall serve as a liaison to the Grant Accountability and
Transparency Unit and who shall be responsible for the
Commonwealth agency's implementation of and compliance with the
rules.
(c) Responsibilities of Commonwealth grant-making agency.--
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In order to effectively measure the performance of recipients
and subrecipients, each Commonwealth grant-making agency shall
do the following:
(1) Require recipients and subrecipients to relate
financial data to performance accomplishments of the award
and, when applicable, require recipients and subrecipients to
provide cost information to demonstrate cost-effective
practices. The recipient's and subrecipient's performance
should be measured in a way that will help the Commonwealth
grant-making agency to improve program outcomes, share
lessons learned, and spread the adoption of promising
practices.
(2) Provide recipients and subrecipients with clear
performance goals, indicators, and milestones and must
establish performance reporting frequency and content to not
only allow the Commonwealth agency to understand the
recipient's progress, but also to facilitate identification
of promising practices among recipients and subrecipients and
build the evidence upon which the Commonwealth agency's
program and performance decisions are made.
(d) Stop-payment order.--The following shall apply:
(1) Each Commonwealth grant-making agency shall, when it
is in the best interests of the Commonwealth, request that
the Office of the Comptroller issue a stop-payment order in
accordance with section 117-K.
(2) Upon notification by the Grant Accountability and
Transparency Unite that a stop-payment order for a recipient
or subrecipient has been requested by a Commonwealth grant-
making agency, each Commonwealth grant-making agency that has
issued a grant to that recipient or subrecipient shall
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determine if it remains in the best interests of the
Commonwealth to continue to issue payments to the recipient
or subrecipient.
(3) The Office of the Budget shall provide advice and
technical assistance to the Commonwealth grant-making
agencies as is necessary or indicated in order to ensure
compliance with this article.
Section 111-K. Office of the Budget.
(a) Responsibilities.--The Office of the Budget shall:
(1) provide technical assistance and interpretations of
policy requirements in order to ensure effective and
efficient implementation of this article by Commonwealth
grant-making agencies; and
(2) have the authority to approve any exceptions to the
requirements of this article and shall adopt rules governing
the criteria to be considered when an exception is requested,
which shall only be made in particular cases where adequate
justification is presented.
(b) Grant Accountability and Transparency Unit.--The Office
of the Budget shall, on or before July 1, 2022, establish the
Grant Accountability and Transparency Unit, which shall be
funded with a portion of the administrative funds provided under
existing and future Federal and Commonwealth pass-through
grants. The amounts charged shall be allocated based on the
actual cost of the services provided to Commonwealth grant-
making agencies and public institutions of higher education in
accordance with the applicable Federal cost principles contained
in 2 CFR Pt. 200 (relating to uniform administrative
requirements, cost principles, and audit requirements for
Federal awards) and this article will not cause the reduction in
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the amount of any Federal awards or Commonwealth grant awards
that have been or will be directed towards Commonwealth agencies
or public institutions of higher education.
(c) Improper payment elimination.--The Office of the Budget
shall research and provide recommendations to the General
Assembly regarding the adoption of legislation in accordance
with the Federal Improper Payments Elimination and Recovery
Improvement Act of 2012 (Public Law 112-248, 126 Stat. 2390 et
seq.). The report to the General Assembly shall be filed with
the Secretary of the Senate and the Chief Clerk of the House of
Representatives in electronic form only, in the manner that the
Secretary and the Chief Clerk shall direct.
Section 112-K. Grant Accountability and Transparency Unit
responsibilities.
(a) Responsibilities.--The Grant Accountability and
Transparency shall have the following responsibilities:
(1) Develop minimum requirements applicable to the staff
of grant applicants to manage and execute grant awards for
programmatic and administrative purposes, including grant
management specialists with:
(i) general and technical competencies;
(ii) programmatic expertise;
(iii) fiscal expertise and systems necessary to
adequately account for the source and application of
grant funds for each program; and
(iv) knowledge of compliance requirements.
(2) Develop minimum training requirements, including
annual training requirements.
(3) Accurate, current and complete disclosure of the
financial results of each funded award, as set forth in the
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financial monitoring and reporting Section of 2 CFR Pt. 200
(relating to uniform administrative requirements, cost
principles, and audit requirements for Federal awards).
(4) Develop criteria for requiring the retention of a
fiscal agent and for becoming a fiscal agent.
(5) Develop disclosure requirements in the grant
application pertaining to:
(i) related-party status between grantees and grant-
making agencies;
(ii) past employment of applicant officers and grant
managers;
(iii) disclosure of current or past employment of
members of immediate family; and
(iv) disclosure of senior management of grantee
organization and their relationships with contracted
vendors.
(6) Implement rules prohibiting a grantee from charging
any cost allocatable to a particular award or cost objective
to other Federal awards or Commonwealth awards to overcome
fund deficiencies, to avoid restrictions imposed by law or
terms of the Federal awards or for other reasons.
(7) Implement rules prohibiting a non-Federal entity
from earning or keeping any profit resulting from Federal or
Commonwealth financial assistance, unless prior approval has
been obtained from the Office of the Budget and is expressly
authorized by the terms and conditions of the award.
(8) Maintain a Debarment and Suspension List that
contains the names of those individuals and entities that are
ineligible, either temporarily or permanently, to receive an
award of grant funds from the Commonwealth.
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(9) Ensure the adoption of standardized rules for the
implementation of this article by Commonwealth grant-making
agencies. The Grant Accountability and Transparency Unit
shall provide such advice and technical assistance to the
Commonwealth grant-making agencies as is necessary or
indicated in order to ensure compliance with this article.
(10) Coordinate financial and single audit reviews.
(11) Coordinate on-site reviews of grantees and
subrecipients.
(12) Maintain the Catalog of Commonwealth Financial
Assistance, which shall be posted on an publicly accessible
Internet website maintained by the Office of the Budget.
(b) Limitations.--The following shall apply:
(1) The Grant Accountability and Transparency Unit shall
have no power or authority regarding the approval,
disapproval, management or oversight of grants entered into
or awarded by a Commonwealth agency or by a public
institution of higher education.
(2) The power or authority existing under law to grant
or award grants by a Commonwealth agency or by a public
institution of higher education shall remain with that
Commonwealth agency or public institution of higher
education.
(3) The Grant Accountability and Transparency Unit shall
be responsible for providing technical assistance to guide
the Administrative Code amendments proposed by Commonwealth
grant-making agencies to comply with this article and shall
be responsible for establishing standardized policies and
procedures for Commonwealth grant-making agencies in order to
ensure compliance with 2 CFR Pt. 200 (relating to uniform
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administrative requirements, cost principles and audit
requirements for Federal awards), which must be adhered to by
the Commonwealth grant-making agencies throughout the life
cycle of the grant.
(c) Transfer prohibited.--The powers and functions of grant
making by Commonwealth agencies or public institutions of higher
education may not be transferred to, nor may prior grant
approval be transferred to, any other person, office, or entity
within the Commonwealth.
Section 113-K. Audit requirements.
The following shall apply:
(1) The standards set forth in 2 CFR Pt. 200 Subpt. F
(relating to audit requirements) and any other standards that
apply directly to Federal or Commonwealth agencies shall
apply to audits of fiscal years beginning on or after
December 26, 2014.
(2) Books and records must be available for review or
audit by appropriate officials of the pass-through entity,
and the agency, the Auditor General, the Inspector General,
appropriate officials of the agency and the Federal
Government Accountability Office.
(3) The Office of the Budget shall adopt rules for
audits of grants from a Federal or Commonwealth pass-through
entity that are not subject to the Single Audit Act because
the amount of the Federal award is less than $750,000 or the
subrecipient is an exempt entity and that are reasonably
consistent with 2 CFR Pt. 200 (relating to uniform
administrative requirements, cost principles and audit
requirements for Federal awards).
(4) This article shall not affect the any audit function
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of the Auditor General.
Section 114-K. Review date.
The Office of the Budget shall review this article at least
once every five years in conjunction with the Federal review of
the Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards as required by 2 CFR
200.109 (relating to review date) in order to determine whether
any existing rules need to be revised or new rules adopted.
Section 115-K. Agency implementation.
All Commonwealth grant-making agencies shall implement the
rules issued by the Office of the Budget. The standards under
this article become effective once implemented by the
Commonwealth grant-making agencies. Commonwealth grant-making
agencies shall implement the policies and procedures applicable
to Federal awards and Commonwealth awards by adopting rules for
non-Federal entities.
Section 116-K. Annual report.
Effective January 1, 2023, and each January 1 thereafter, the
Office of the Budget shall submit to the Governor and the
General Assembly a report that demonstrates the efficiencies,
cost savings and reductions in fraud, waste and abuse as a
result of the implementation of this article and the rules
adopted by the Office of the Budget in accordance with this
article. The report shall include, but not be limited to:
(1) the number of entities placed on the Debarment and
Suspension List;
(2) any savings realized as a result of the
implementation of this article;
(3) any reduction in the number of duplicative audit
report reviews;
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(4) the number of persons trained to assist grantees and
subrecipients; and
(5) the number of grantees and subrecipients to whom a
fiscal agent was assigned.
Section 117-K. Stop-payment procedures.
(a) Factors and procedure.--On or before July 1, 2022, the
Office of the Budget shall adopt rules pertaining to the
following:
(1) factors to be considered in determining whether to
issue a stop-payment order, which shall include whether or
not a stop-payment order is in the best interests of the
Commonwealth;
(2) factors to be considered in determining whether a
stop-payment order should be lifted; and
(3) procedures for notification to the recipient or
subrecipient of the issuance of a stop-payment order, the
lifting of a stop-payment order and any other related
information.
(b) Policies.--On or before December 31, 2022, the Office of
the Budget shall, in conjunction with Commonwealth grant-making
agencies, adopt rules pertaining to the following:
(1) policies regarding the issuance of stop-payment
orders;
(2) policies regarding the lifting of stop-payment
orders;
(3) policies regarding corrective actions required of
recipients and subrecipients in the event a stop-payment
order is issued; and
(4) policies regarding the coordination of
communications between the Office of the Comptroller and
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Commonwealth grant-making agencies regarding the issuance of
stop-payment orders and the lifting of such orders.
(c) Stop-payment procedures.--On or before July 1, 2022, the
Office of Comptroller Operations in the Office of Budget shall
establish stop-payment procedures that shall cause the cessation
of payments to a recipient or subrecipient. A temporary or
permanent cessation of payments will occur pursuant to a stop-
payment order requested by a Commonwealth grant-making agency
and implemented by the Office of Comptroller Operations.
(d) Stop-payment orders file.--Each Commonwealth grant-
making agency shall maintain a file pertaining to all stop-
payment orders, which shall include, at a minimum:
(1) The notice to the recipient or subrecipient that a
stop-payment order has been issued. The notice shall include:
(i) The name of the grant.
(ii) The grant number.
(iii) The name of the Commonwealth agency that
issued the grant.
(iv) The reasons for the stop-payment order.
(v) Any other relevant information.
(2) The order lifting the stop-payment order, if
applicable.
(e) Factors to consider.--The Grant Accountability and
Transparency Unit shall determine and disseminate factors that
Commonwealth agencies shall consider when determining whether it
is in the best interests of the Commonwealth to permanently or
temporarily cease payments to a recipient or subrecipient who
has had a stop-payment order requested by another Commonwealth
agency.
(f) Grants from other agencies.--The following shall apply:
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(1) The Treasurer and the Office of the Budget shall
determine if a recipient or subrecipient subject to a stop-
payment order has received grants from other Commonwealth
grant-making agencies.
(2) Upon notice from the Treasurer, the Grant
Accountability and Transparency Unit shall notify all
Commonwealth grant-making agencies who have issued grants to
a recipient or subrecipient subject to a stop-payment order
that a stop-payment order has been requested by another
Commonwealth grant-making agency.
(3) Upon notice from the Grant Accountability and
Transparency Unit, each Commonwealth grant-making agency who
has issued a grant to a recipient or subrecipient subject to
a stop-payment order shall review and assess all grants
issued to that recipient or subrecipient. Commonwealth
agencies shall use factors provided by the Office of the
Budget or the Grant Accountability and Transparency Unit to
determine whether it is the best interests of the
Commonwealth to request a stop-payment order.
Section 118-K. Documentation of award decisions.
(a) General rule.--Each award that is granted pursuant to an
application process must include documentation to support the
award. For each Federal award or Commonwealth award that is
granted following an application process, the Commonwealth
grant-making agency shall create a grant award file. The grant
award file shall contain, at a minimum:
(1) A description of the grant.
(2) The notice of opportunity, if applicable.
(3) All applications received in response to the notice
of opportunity, if applicable.
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(4) Copies of any written communications between an
applicant and the Commonwealth grant-making agency, if
applicable.
(5) The criteria used to evaluate the applications, if
applicable.
(6) The scores assigned to each applicant according to
the criteria, if applicable.
(7) A written determination, signed by an authorized
representative of the Commonwealth grant-making agency,
setting forth the reason for the grant award decision, if
applicable.
(8) The notice of award.
(9) Any other pre-award documents.
(10) The grant agreement and any renewals, if
applicable;
(11) All post-award, administration, and close-out
documents relating to the grant.
(12) Any other information relevant to the grant award.
(b) Information not included.--The grant file shall not
include trade secrets or other competitively sensitive,
confidential or proprietary information.
(c) Maintenance of grant file.--Each grant file shall be
maintained by the Commonwealth grant-making agency and, subject
to the provisions of the Freedom of Information Act (Public Law
89-487, 80 Stat. 250), shall be available for public inspection
and copying within seven calendar days following award of the
grant.
Section 119-K. Certifications and representations.
Unless prohibited by Federal or Commonwealth law, regulation
or administrative rule, each Commonwealth awarding agency or
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pass-through entity is authorized to require the recipient or
subrecipient to submit certifications and representations
required by Federal or Commonwealth law, regulation or
administrative rule.
Section 120-K. Required certifications.
To assure that expenditures are proper and in accordance with
the terms and conditions of the grant award and approved project
budgets, all periodic and final financial reports, and all
payment requests under the grant agreement, must include a
certification, signed by an official who is authorized to
legally bind the grantee or subrecipient, that reads as follows:
By signing this report and/or payment request, I certify to
the best of my knowledge and belief that this report is true,
complete, and accurate; that the expenditures, disbursements,
and cash receipts are for the purposes and objectives set
forth in the terms and conditions of the Federal award or
Commonwealth award; and that supporting documentation has
been submitted as required by the grant agreement. I
acknowledge that approval for any item or expenditure
described herein shall be considered conditional subject to
further review and verification in accordance with the
monitoring and records retention provisions of the grant
agreement. I am aware that any false, fictitious, or
fraudulent information, or the omission of any material fact,
may subject me to criminal, civil or administrative penalties
for fraud, false statements, false claims or otherwise.
Section 121-K. Expenditures prior to grant execution and
reporting requirements.
(a) Prior expenses.--In the event that a recipient or
subrecipient incurs expenses related to the grant award prior to
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the execution of the grant agreement but within the term of the
grant, and the grant agreement is executed more than 30 days
after the effective date of the grant, the recipient or
subrecipient must submit to the Commonwealth grant-making agency
a report that accounts for eligible grant expenditures and
project activities from the effective date of the grant up to
and including the date of execution of the grant agreement.
(b) Time period.--The recipient or subrecipient must submit
a report under subsection (a) to the Commonwealth grant-making
agency within 30 days of execution of the grant agreement.
(c) Permitted expenses.--Only expenses that are reasonable,
allowable and in furtherance of the purpose of the grant award
shall be reimbursed.
(d) Report approval required.--The Commonwealth grant-making
agency must approve the report prior to issuing any payment to
the recipient or subrecipient.
Section 2. This act shall take effect in 60 days.
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