Code of Massachusetts Regulations
815 CMR - COMPTROLLER'S DIVISION
Title 815 CMR 2.00 - State Grants, Federal Grant Awards, Federal Subgrants And Subsidies
Section 2.02 - Definitions

Allotment. That portion of an appropriation that may be spent by a Department for a specified period as determined by the governor and the secretary of administration and finance under M.G.L. c. 29, § 9B.

Cash Management Improvement Act (CMIA). The Cash Management Improvement Act of 1990 (CMIA) provides rules and procedures for the efficient transfer of federal financial assistance between the various federal agencies and the State pursuant to implementing regulations in 31 CFR Part 205. The State, through the Office of the Comptroller, annually enters into a Treasury State Agreement (TSA) with the U.S. Department of the Treasury to set forth terms and conditions for the State's implementation of CMIA. The comptroller shall prescribe the requirements under State finance law for State Departments to comply with the TSA and CMIA.

Cost Allocation Plan. A federally approved proposal for determining both direct and indirect costs applicable to Federal cost-based awards to governmental units.

Department. As defined by M.G.L. c. 29, § 1, a legal entity of State government established by the General Court as an agency, board, bureau, agency, office or division of the commonwealth with a specific mission, which may either report to cabinet-level units of government, known as executive offices or secretariats, or be independent divisions or departments. State Departments will process Grant payments through MMARS.

Department Head. The administrative head of a State Department, agency, board, bureau, office or division of the commonwealth who has been authorized through legislation to obligate and expend funds, comply with legislative mandates and make any certifications or approvals required under 815 CMR 2.00 or other State or federal laws or regulations requiring an agency head certification or approval.

DUNS Number. A national Data Universal Numbering System used as a means of identifying business entities on a location specific-basis. The DUNS was incorporated into the Federal Acquisition Regulation (FAR) in April 1998 as the Federal Government's contractor identification code for all procurement-related activities. All State Departments are also required to have a DUNS number in order to apply for, receive, and report on a Federal Grant Award. Subrecipients of Federal Grant Awards are required to obtain a DUNS number which is recorded as part of the vendor code for the Subrecipient on MMARS.

Executive Office for Administration and Finance (ANF). The Executive Office established by M.G.L. c. 7.

Federal Grant Application. A document distributed by a Federal Department or Federal Agency administering a Federal Grant Award program which is used to determine eligibility of a proposed State Department recipient of a Federal Grant Award.

Federal Grant Award. As defined in M.G.L. c. 29, § 1, a Federal Grant is any financial assistance available to a State Department from the United States government, either directly or through an intermediary, including a project, formula, or block grant, a subvention, a subsidy, an augmentation or a State plan but excluding federal reimbursements. The Federal Grant Award is a document distributed by a by a Federal Department or Federal Agency administering a Federal Grant program which is used to notify a State Department of the award of a Federal Grant. A copy of the Federal Grant Award must be provided to the Office of the Comptroller to establish the Federal Grant Award in MMARS prior to activity under any Federal Subgrant.

Federal Grantee. A State Department that has applied for and received a Federal Grant Award. State Departments receiving Federal Grant Awards become a Grantor when disbursing Federal Grant Awards as Federal Subgrants to Grantees.

Federal Grantor. The Federal Department or Federal Agency administering a Federal Grant award or cooperative agreement with a State Department in accordance with 2 CFR Chapter I and Chapter II, Part 200.

Federal Reimbursement. Financial assistance provided under Titles XVIII or XIX of the Social Security Act or other reimbursements received for State entitlement expenditures and credited to the General Fund, or other federal financial assistance from the United States government for direct payments to individuals, or for other purposes as provided for in M.G.L. c. 90, §§ 2ZZZ and 34, c. 92 and c. 151A, § 48.

Federal Subgrant. A Grant of Federal Funds received by a State Department as a Federal Grantee, which are provided under contractual terms to a Grantee. Certain Grantees receiving Federal Grant Award funds will be considered Subrecipients and will be required to comply with additional federal requirements.

Grant. Discretionary and non-discretionary (earmarked) funds of State or Federal Grant Awards which are considered financial assistance provided under contractual terms between a Grantor State Department and a Grantee to assist the Grantee in the achievement or continuation of a specified public purpose to benefit the general public or a segment of the general public consistent with the Grantor Department's Legislative Authorization and the terms of the Grant funding. A Grant of a Federal Grant Award is also known as a Federal Subgrant.

Grant Application. A document distributed by a State Department which is used to determine eligibility of a proposed Grant recipient of discretionary funds.

Grantee. A Public or non-Public Entity selected as a recipient of Grant. Grantees receiving Federal Grant Awards through a Federal Subgrant who are deemed Subrecipients for Federal Grant Award purposes will be required to comply with applicable federal requirements, including but not limited to Subrecipient audit requirements. Contractors that do not meet the definition of Subrecipients that are paid using Federal Grant funds to provide goods or services to support a Federal Grant program or project are not considered Grantees and are not covered under 815 CMR 2.00. Department purchases of goods or services needed to carry out a project or program under a Federal Grant Award are governed by 801 CMR 21.00: Procurement of Commodities or Services, including Human and Social Services or other applicable regulation for the provision of goods and services.

Grantor. The State Department administering a Grant or Subsidy in accordance with Legislative Authority or the terms of the Grant or Subsidy funding. Grantors include any Executive Office, Department, Agency, Office, Division, Board, Commission or Institution within the Executive Branch excluding the Legislative Branch, Judicial Branch, Constitutional Offices, Elected Offices, Public Institutions of Higher Education, the Military Division and Independent Public Authorities. A State Department that provides a Federal Grant Award through a Federal Subgrant under contract to a Subrecipient Grantee to carry out part of a Federal Grant Award may also be referred to as a "Federal Grantee" as well as a "pass-through entity", meaning that the federal requirements under the Federal Grant Award are passed through to the Subrecipient and both the State Department Grantor and the Subrecipient are responsible for compliance.

Incidental Grant. A one-time Grant with a total dollar value that does not exceed the amount established by the Office of the Comptroller.

Interdepartmental Service Agreement. 815 CMR 6.00: Interdepartmental Fiscal Business governs interdepartmental fiscal business including Interdepartmental Service Agreements (ISAs). Interdepartmental Service Agreements (ISAs) are non-chargeback business relationships between state departments that are evidenced by an Interdepartmental Service Agreement (ISA) Form.

MMARS.The State accounting system known as the Massachusetts Management Accounting and Reporting System. All State Grants, Federal Grant Awards, Federal Subgrants and Subsidies administered by State Departments will be processed through MMARS.

Legislative Authorization. State General and Special Laws including statutes and annual appropriation acts.

Office of the Comptroller (CTR). The Department established pursuant to M.G.L. c. 7A charged with prescribing the methods and procedures for compliance with State finance law including the disbursement of Grants and Subsidies.

Public Entity. A unit of State or local government including a county, municipality, local public authority, school district, special district, district commission, regional government, any agency or instrumentality of government, and State authorities as defined in M.G.L. c. 29, § 1. The Office of the Comptroller identifies Public Entities in the MMARS vendor file (VEND) with a "G" in the classification field.

State. The Commonwealth of Massachusetts.

SEFA.The Schedule of Expenditure of Federal Awards (SEFA) financial report provided annually by the State through the Office of the Comptroller to report to the federal government summarized by CFDA number the federal grant awards received by the State and the amount expended each fiscal year.

Subrecipient. A Grantee that receives a Federal Subgrant from a Grantor (also known as a "pass-through entity") to carry out part of a Federal Grant Award. Grantees receiving Federal Grant Awards who are deemed "Subrecipients" for Federal Grant Award purposes will be required to comply with applicable federal requirements, including but not limited to Subrecipient audit requirements under the Code of Federal Regulations, including 2 CFR Chapter I and Chapter II, Part 200.

Subsidy. Non-discretionary funds appropriated by the State Legislature to be made either as a direct payment, a transfer of a specified amount to a designated recipient entity, or are designated specifically as "Subsidies" or a "Subsidy program", and are not specified as a "Grant", "contract" or "for a program". Subsidies are considered non-discretionary (earmarked) and the State Department has no discretion in disbursement. Loan programs, formula grants, or other programs of financial assistance which provide discretion in disbursement with respect to recipients or amounts will not be considered Subsidies. Subsidies are exempt from competitive procurement, competitive grant application requirements and standard contract requirements. Subsidies are documented using a Subsidy Agreement as supporting backup for audit purposes.

Subsidy Agreement. A form prescribed by the Office of the Comptroller that is used by Departments as the supporting backup documentation for audit purposes when making Subsidy payments.

TSA- Treasury State Agreement (TSA). TSA outlines by CFDA the funding technique and the clearance pattern the State will use to draw down funds from the federal government. Generally, conformance with the TSA assures that the State does not owe the federal government, or is not due from the federal government, interest liability on its drawdowns. The State must enter into a TSA with the US Department of the Treasury to set forth terms and conditions for implementing CMIA.

VCUST.The Vendor Table in the State accounting system MMARS. All Grantees must be registered as vendors in VCUST in order to receive Grant or Subsidy payments. Subrecipients of Federal Grant Awards are required to provide a DUNS number to be recorded in VCUST under headquarters in order to be paid.