Federal Requirements

Federal Requirements. All recipients will be required to comply with certain federal and state requirements. The following briefly describes major requirements that may apply. A. The requirements of OMB Circular No. A-87, Cost Principles for State and Local Governments, which addresses allowable cost shall apply to State recipients or any governmental sub recipient receiving ESG funds B. Non-profit organizations must follow the requirements of: (i). OMB Circular No. A-122, Cost Principles for Non-Profit Organizations (ii). 24 CFR Part 84, Grants and Agreements with Institutions of Higher Education, Hospital, and other Non-Profit Organizations (iii). 24 CFR Part 84.21(d), Bonding and Insurance (iv). 24 CFR Part 84.21(a), Standards for Financial Management Systems (v). 24 CFR Part 84.51, Monitoring and Reporting Program Performance, Paragraph 2 (vi). 24 CFR Part 84.40-84.50, Procurement Standards (vii). 24 CFR Part 84 or 84, Conflict of Interest C. Recipients are responsible for audit costs. Audits must be conducted in accordance with: (i). 24 CFR Part 44, Non-Federal Governmental Audit Requirements, and; (ii). OMB Circular A-133, Audits of Institutions of Higher Education and other Non- Profit institutions. D. Local units of government must follow the requirements for procurement of: (i). MDA (CSD) Policy Statement #94-002 (ii). 24 CFR Part 85, (iii). State of Mississippi Procurement laws, or (iv). Mississippi Development Authority requirements, whichever one is more stringent. E. All contracts for ESG funds are subject to audit in accordance with OMB Circular A-133. F. ESG funds from each federal fiscal year (i.e., the allocation and any reallocated funds from the particular federal fiscal year appropriated) will be closed out when all the requirements of 24 CFR Part 576.85, Closeouts, have been met. G. Each applicant must establish and maintain sufficient records to enable the State to determine whether the applicant has met the requirements of 24 CFR Part 576.87, Recordkeeping. H. Applicants must comply with the requirements of 24 CFR Part 576.79, Conflict of Interest. I. The federal requirements of 24 CFR Part 576.51, Displacement, Relocation, and Acquisition, concerning relocation must be followed at all times when a unit to be rehabilitated is occupied prior to the beginning of construction to rehabilitate the unit.