Current through Register Vol. 39, No. 6, September 16, 2024
(a) In
order to insure that the maximum benefit is derived from subgrant and contract
funds, subrecipients must adhere to all federal, state, local and internal
procurement guidelines. Non-governmental subrecipients must adopt and adhere to
procurement procedures that reflect compliance with the intent of laws and
regulations applicable to governmental subrecipients, specifically prohibitions
on solicitation or acceptance of anything of monetary value from suppliers or
potential conflict of interest for a member of the board of the subrecipient,
an officer of the subrecipient, an employee or agency of the subrecipient, or a
member of the immediate family of a board member, officer or
employee.
(b) Cost plus a
percentage of cost contracts are prohibited.
(c) Real property may not be procured or
received without prior written authorization from the Division. Nonexpendable
property may not be affixed to real property without the prior written
authorization of the Division. The Division may condition the procurement or
receipt of real property or the affixation of nonexpendable property to real
property, as the Division considers is necessary to comply with federal law and
to effectuate JTPA policies. Except where specific written authorization has
been procured, the affixation of nonexpendable property to real property is a
conversion of that property.
(d)
Nonexpendable property shall be subject to the following regulations:
(1) Title to property. Title to all
nonexpendable property, except nonexpendable property to which the federal
government claims title, that is purchased with federal employment and training
funds received directly or indirectly through the Division, shall be in the
name of the Department. To the extent possible, nonexpendable property should
be procured with funds from a single grant source, to facilitate identification
of nonexpendable property. Where nonexpendable property is purchased in part
with JTPA funds and in part with other funds, the Department has a
proportionate interest in the property and it is covered by this
Paragraph.
(2) Use. Nonexpendable
property may be used by the subgrantee or contractor as long as there is a need
for such property to accomplish the subgrant or contract objectives, or the
objectives of subsequent contracts or subgrants from the Division, supported by
JTPA funds.
(3) Transfer. When the
subgrantee or contractor no longer needs the nonexpendable property, it is the
responsibility of the subgrantee or contractor to return the property to the
physical control of the Division. The Division may provide transportation for
the property. This Section shall not apply if the depreciated value of the
property is less than one hundred dollars ($100.00), in which case the
subgrantee or contractor, after completion of any required forms, may retain
the nonexpendable property, unless the federal government has a claim to the
title of the property.
(4)
Constructive Transfer. The use of property for non-JTPA purposes will be deemed
a constructive transfer to the subgrantee or contractor, which will be liable
for the fair market value of the nonexpendable property at the time of the
constructive transfer. The fair market value will be payable to the Division,
or in the Division's discretion, to the subgrant or contract funds, where it
will be treated in all respects as program income, except that the exemption
for on-the-job training and tryout employment programs will not apply to
program income generated in this manner.
(5) Non-expendable property must be subjected
to a physical inventory not less than once a year. Subgrantees must identify
property officers responsible for the maintenance of an inventory. The Division
will conduct the inventory of its contractors' nonexpendable property and will
conduct periodic reviews of the inventory of subgrantees' nonexpendable
property. Physical inventories made other than at the close of the fiscal year
must be updated effective the last day of the fiscal year.
(6) All nonexpendable property must have
property labels, as required by the state and federal regulations, affixed. The
property officer for the subgrantee shall be responsible, in concert with the
Division, for assuring that all subgrantee nonexpendable property bears the
appropriate label(s).
(7) Property
records shall be maintained accurately and shall provide:
(A) A description of the property;
(B) Manufacturer's serial number or other
identification number;
(C)
Acquisition date and unit acquisition cost;
(D) Source of the property;
(E) Percentage of JTPA funds used in the
acquisition;
(F) Location, use and
condition of the property;
(G)
State and/or federal government control number from label; and
(H) Ultimate disposition data.
(8) Adequate maintenance
procedures shall be implemented to insure maximum use of the
property.
(9) Nonexpendable
intangible property shall become the property of the Division when developed by
or in a funded activity, as a work for hire by the Division. The intangible
property shall be available, for the costs of reproduction to any subgrantee or
contractor for JTPA purposes, and shall be available as otherwise required by
the federal regulations. Income generated from intangible property will be
payable to the Division, to the subgrant or contract funds where the intangible
property was developed, where it will be treated as program income.
(e) Nothing in Rule .0304 is meant
or should be interpreted to contravene applicable federal law governing the
procurement, use or disposition of property acquired by a subrecipient with
federal funds.
(f) Property donated
to a subrecipient shall not be construed as donated to the grant or contract
itself unless it is specifically so designated. The value of donated property
may be used for matching funds purposes without donation to the grant or
contract. In the event that property is donated to the grant or contract, it
shall be treated as acquired property subject to applicable regulations. The
unit acquisition cost upon which the property should be categorized is the fair
market value at the time of donation.
(g) Property purchased by a subrecipient with
funds generated by or in a performance-based contract is not subject to Rule
.0304.
Authority
G.S.
143-277;
143B-430(b);
Ex. O. 93, June 8, 1983; 20
C.F.R. 629.41;
41 C.F.R. 29-70;
Eff.
February 1, 1976;
Transferred from T01: 18 Eff. September 15,
1981;
Amended Eff. June 1, 1985; October 1, 1984; August 1,
1982;
Pursuant to
G.S.
150B-21.3A, rule is necessary without
substantive public interest Eff. April 27,
2019.
