Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
45A.215, 45 C.F.R. 74, 92, 96, 48 C.F.R. 31,
42 U.S.C.
9801-9822
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
45A.215 authorizes the Secretary of the
Finance and Administration Cabinet to promulgate administrative regulations
setting forth cost principles to be used as guidelines to determine allowable
costs incurred by contractors under cost reimbursement-type contracts, if
estimated or incurred costs of performing contracts have to be determined; and
in the negotiation of contracts not subject to competitive bidding, if changes
or modifications to contracts are directed or for the settlement of contracts
that have been terminated. This administrative regulation establishes the cost
principles to be employed to determine a contractor's costs.
Section 1. Cost reimbursement contracts shall
conform to the cost principles set forth in 48 C.F.R. Part 31 and Contract Cost
Principles and Procedures, Office of Management and Budget Circulars A-21,
A-87, A-122.
Section 2.
(1) Cost reimbursement contracts provided
under Title 45 C.F.R., Public Welfare, shall be governed by the requirements of
the Omnibus Budget Reconciliation Act of 1981
42 U.S.C.
9801 to
9822,
in accordance with applicable administrative requirements and cost principles
specified in Title 45 C.F.R. Part 74 , Administration of Grants, and Office of
Management and Budget Circulars A-21, A-87, A-122. Federal interpretation of
cost principle requirements may be used as a guide in the Commonwealth's
determination of the applicability of the various subparts and appendices of 45
C.F.R. Parts 74, 92 and 96.
(2) The
Commonwealth shall not be required to secure any approvals from the federal
granting authority as specified in 45 C.F.R. Part 74 unless it is specifically
required by the Omnibus Reconciliation Act of 1981,
42 U.S.C.
9801 to
9822,
individual Block Grants, or by changes hereinafter enacted in federal law or
regulations. The Commonwealth shall not apply any part of 45 C.F.R. Part 74
which it determines not to be in the best interest of the
Commonwealth.
(3) The exclusive
method of determining allowable costs incurred by contractors under cost
reimbursement type contracts entered into under community services and social
services block grants shall be as provided in this section.
Section 3. The cost principles referenced in
Sections 1 and 2 of this administrative regulation shall be used for the
purposes stated in
KRS
45A.215.
Section 4. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) "Office of Management and
Budget Circular A-21: Cost Principles for Educational Institutions", August 8,
2000;
(b) "Office of Management and
Budget Circular A-87: Cost Principles for State, Local, and Indian Tribal
Governments", August 29, 1997; and
(c) Office of Management and Budget Circular
A-122: Cost Principles for Nonprofit Organizations", June 1, 1998.
(2) This material may be
inspected, copied, or obtained, subject to applicable copyright law, at the
Finance and Administration Cabinet, Division of Administrative Policy and
Audit, Administrative Policy Branch, Room 395 Capitol Annex, Frankfort,
Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m., or on the website
for the Office of Management and Budget,
www.whitehouse.gov/omb/circular.
STATUTORY AUTHORITY:
KRS
45A.215
