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Directive:

DINAP BULLETIN 90-29


Status: Cancelled

Subject:
Return of Federal Monies to the Department of Labor

Purpose:
To provide Section 401 grantees with ETA's policy concerning the return of refunds, rebates and other credits.

To

All Native American Grantees

From

Date

March 28, 1991

Expiration Date
None.
Rescissions:    None.
Text :
References. OMB Circulars A-87, A-102, A-110 and A-122, and 29 CFR 97.51. Background. The Department of Labor (DOL) regulations for grants to States and local governments at 29 CFR 97.51 (b) indicates that "the closeout of a grant does not affect...the grantee's obligation to return any funds due as a result of later refunds, corrections, or other transactions." OMB Circular A-102, "Uniform Requirements for Assistance to State and Local Governments, 11 (applies to tribal organizations) Attachment L, paragraph 3.b. stipulates that closeout procedures require that "the grantee shall immediately refund to the grantor agency any balance of unobligated (unencumbered) cash advanced to the grantee that is not authorized to be retained by the grantee for use on other grants."OMB Circular A-110, "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and other Nonprofit Organizations," Attachment K, paragraph 3.b. stipulates the same thing. Refunds, rebates, and other credits may occur when grant funds are expended, disbursed and subsequently returned to the grantee (e.g., differences between grantee-approved provisional indirect cost rates and negotiated final indirect cost rates, the result of subgrantee audit disallowances, unemployment insurance overpayments, insurance rebates, etc.). Policy. Based on the requirements of 29 CFR 97.51 (b) and OMB Circulars A-102 and A-110, it is the Employment and Training Administration's (ETA) policy that all refunds, rebates and other credits are to be returned to DOL immediately upon receipt if the grant is no longer open. If the refund, rebate or other credit is related to an open grant, it may be treated as an applicable credit in accordance with OMB Circular A-87, Attachment A, paragraph C.3.a. and OMB Circular A-122, Attachment A, paragraph A.5. and used to reduce or offset expense items.

Attachments :
Post Closeout Instructions 1. The requirements with regard to returning to the Department of Labor all refunds. In accordance with 29 CFR 97.50, your organization is required to return to DOL any balance of unobligated (unencumbered) cash advanced that is not authorized to be retained for use on other grants. In accordance with 29 CFR 97.51, the closeout of a grant does not affect the grantee's obligation to return any funds due as a result of later refunds, corrections, or other transactions. All such funds, which are not returned, constitute a debt to the Federal Government and the DOL may accrue interest on the principal at the current U.S. Treasury rate of interest. All such funds should be returned to the DOL immediately upon receipt. It is necessary, however, that each refund include grant number, program year, the source or nature of the refund, and any other pertinent information relating to the refund that assists the DOL in properly accounting for the refunds. 2. The requirements with regard to Negotiated Final Indirect Cost Rates. If a grant is closed based on approved provisional indirect cost rates and the negotiated final indirect cost rates are lower than the approved provisional rates, your organization is required to recalculate indirect costs and return all excess indirect costs to the DOL within 45 days of the date of the letter transmitting the final rates. Your final rates may have come from DOL or another cognizant agency. The return of excess indirect costs is to be accompanied by revised closeout documents.



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