As a general rule, any assistance used inappropriately, such as incurring unallowable costs, requires reimbursement to the federal government.
[citation needed] Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed.
These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; [2 CFR § 200.430 (i)][5] Documenting time worked on federally funded activities is commonly referred to as Time and Effort Reporting.
[9] As part of the US Department of Labor’s (DOL) governmentwide implementation of the Davis–Bacon Act, federal regulations require that all laborers and mechanics who work for a contractor or subcontractor on federally financed construction contracts over $2,000 must be paid wages not less than those the DOL established for the project location (i.e., the prevailing wage).
[10][13] The main objective of this compliance requirement is that only eligible individuals or organizations participate in federal assistance programs.
[14] An example includes federal programs that offer HIV/Aids treatment and require that the participants be victims of such diseases.
[15][16] However, certain agencies have included specific parameters for which the recipient should follow, as in the case of the Department of Housing and Urban Development (HUD) which states in the Code of Federal Regulations (CFR) that recipients of certain HUD housing subsidy programs must obtain specific income verification documents to prove participant eligibility, such as W-2 payroll forms, a federal income tax return, etc.
[14] This section established directives on how a recipient should manage equipment and real property of a federal program.
When equipment with a current fair market value of $5,000 or more is no longer needed, it may be retained or sold, as a proportionate share is provided to the federal government amount of the current fair market value, based on the percent of federal funds to own recipients fund used to buy the item.
[24] Matching, also referred to as “cost sharing”, is a requirement for the recipient to provide contributions or donations (usually non-federal) of a specified amount or percentage to supplement federal assistance received.
or, in some cases, in the form of in-kind contributions, which are donations of non-monetary objects such as services, materials, property, etc.
[citation needed] Examples of matching include the Head Start program, which requires that recipients provide 20% of the total annual expenses in either monetary or in-kind contributions.
[32] This section covers compliance of laws and regulations when obtaining a good or services from a vendor, supplier, or provider.
[33] The suspension and debarment requirement establishes that certain non-federal entities have been prohibited from participating in or receiving federal assistance for various reasons, including prior mismanagement of funds or previous non-compliance of laws and regulations.
When performing this purchase, the recipient must verify that the vendor, supplier, provider or their respective principals (e.g., owners, top management, etc.)
This is done by checking the Excluded Parties List System (EPLS) maintained by the General Services Administration or by contacting the federal agency.
[35] This section covers compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA).
This act provides for uniform and equitable treatment of persons displaced by a federal programs from their homes, businesses, or farms, including assuring just compensation and assisting in relocation.
[37] The most common reports are pre-designed by the federal agency, are approved by OMB, and are freely available to all recipients and the general public.
[38] Certain programs have unique compliance requirements—established by laws, regulations, and contract or grant agreements—that do not fit into the requirements listed above.