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Federal Register / Vol. 86, No. 145 / Monday, August 2, 2021 / Notices
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coronavirus, such as tuition, food, housing, health care including mental health care, or child care.
3. Under section 20035 of the ARP, Recipient must use a portion of their funds received under this supplemental award to a implement evidence-based practices to monitor and suppress coronavirus in accordance with public health guidelines and b conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment due to the recent unemployment of a family member or independent student, or other circumstances, described in section 479A of the HEA 20 U.S.C.
1087tt.
4. The Secretary urges Recipient to devote the maximum amount of funds possible to emergency financial aid grants to students. The Secretary urges Recipient to take strong measures to ensure that emergency financial aid grants to students are made to the maximum extent possible.
5. Recipient acknowledges that no supplemental grant funds may be used to fund construction; acquisition of real property; contractors for the provision of pre-enrollment recruitment activities;
marketing or recruitment; endowments;
capital outlays associated with facilities related to athletics, sectarian instruction, or religious worship; senior administrator or executive salaries, benefits, bonuses, contracts, incentives;
stock buybacks, shareholder dividends, capital distributions, and stock options;
or any other cash or other benefit for a senior administrator or executive.
6. Recipient acknowledges that it may voluntarily decline all or a portion of its ARP a2 funds. The recipient may indicate this by submitting the Voluntary Decline of HEERF form OMB
Control Number 18400856 to the Department by August 11, 2021.
Recipient further acknowledges if it submits this form, it will be ineligible for the future redistribution of ARP
HEERF grant funds to other institutions with greater needs due to the coronavirus.
Grant Administration 7. Recipient acknowledges that consistent with 2 CFR 200.305, it must minimize the time between drawing down funds from G5 and paying incurred obligations liquidation.
Recipient further acknowledges that if it draws down funds and does not pay the incurred obligations liquidates within three calendar days it may be subject to heightened scrutiny by the Department, Recipients auditors, and/or the Departments Office of Inspector General OIG. Recipient further
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acknowledges that returning funds pursuant to mistakes in drawing down excessive grant funds in advance of need may also be subject to heightened scrutiny by the Department, Recipients auditors, and/or the Departments OIG.
Finally, Recipient acknowledges that it must maintain drawn down grant funds in an interest-bearing account, and any interest earned on all Federal grant funds above $500 all Federal grants together during an institutions fiscal year must be returned remitted to the Federal government via a process described here: https www2.ed.gov/
documents/funding-101/g5-returninginterest.pdf.
8. Recipient may charge indirect costs to supplemental funds made available under this award consistent with its negotiated indirect cost rate agreement.
If Recipient does not have a current negotiated indirect cost rate with its cognizant agency for indirect costs, it may appropriately charge the de minimis rate of ten percent of Modified Total Direct Costs MTDC under 2 CFR
200.414. Recipient may also charge reasonable direct administrative costs to the supplemental funds made available under this award.
9. Recipient acknowledges that any obligation under this grant pre-award costs pursuant to 2 CFR 200.458 must have been incurred on or after March 13, 2020, the date of the declaration of a National Emergency Concerning the Novel Coronavirus Disease COVID19
Outbreak 85 FR 15337.
10. Recipient must promptly and to the greatest extent practicable expend all grant funds from this award within the one-year period of performance 2
CFR 200.77 specified in Box 6 of this Grant Award Notification GAN.
11. Recipient must, to the greatest extent practicable, continue to pay its employees and contractors during the period of any disruptions or closures related to coronavirus pursuant to section 315 of the CRRSAA.
12. Recipient acknowledges that its failure to draw down any amount $1 or more of its HEERF grant funds from the institutions HEERF account within 90
days of the date of this supplemental award will constitute nonacceptance of the terms, conditions, and requirements of this Supplemental Agreement and of these supplemental grant funds. In such event, the Department, in its sole discretion, may choose to deobligate these supplemental grant funds or take other appropriate administrative action, up to and including terminating the grant award pursuant to 2 CFR 200.340.

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Reporting and Accountability 13. Recipient must promptly and timely provide a detailed accounting of the use and expenditure of the funds provided by this supplemental award in such manner and with such frequency as the Secretary may require. Recipient acknowledges the Department may require additional or more frequent reporting to be specified by the Secretary.
14. Recipient must comply with all requirements of the Single Audit Act Amendments of 1996, 31 U.S.C. 7501, et seq. Single Audit Act and all applicable auditing standards.
Considering that the HEERF grant program is a new program not previously audited or subjected to Department oversight, and the inherent risk that comes with a new program, the Department strongly suggests that the HEERF grant program be audited as a major program in the first fiscal years that the institution received a HEERF
grant.
15. Recipient acknowledges it is under a continuing affirmative duty to inform the Department if Recipient is to lose its accreditation, close or terminate operations as an institution, or merge with another institution. In such cases, Recipient must promptly notify in writing the assigned education program officer contact in Box 3. Additionally, Recipient must promptly notify the assigned education program officer if the Recipients Authorized Representative changes.
16. Recipient must cooperate with any examination of records with respect to the advanced funds by making records and authorized individuals available when requested, whether by a the Department and/or its OIG; or b any other Federal agency, commission, or department in the lawful exercise of its jurisdiction and authority. Recipient must retain all financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award for a period of three years from the date of submission of the final expenditure report pursuant to 2 CFR 200.334.
17. Recipient acknowledges that failure to comply with this Supplemental Agreement, its terms and conditions, and/or all relevant provisions and requirements of the CRRSAA or ARP or any other applicable law may result in Recipients liability under the False Claims Act, 31 U.S.C.
3729, et seq.; OMB Guidelines to Agencies on Governmentwide Debarment and Suspension Nonprocurement in 2 CFR part 180, as adopted and amended as regulations of
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