§ 301.4 - Conditions of contributions.

FEMA contributions for civil defense equipment costs are subject to the following conditions:

(a) Certification. The making of a request for a contribution shall constitute a certification by the State (and political subdivision, where applicable) that the State's matching share is available or will be available before Federal funds are disbursed; that the civil defense equipment, regarding which a contribution is requested, is needed by the applicant over and above its other-than-civil defense needs, in order to meet its requirements under civil defense operational plans approved by FEMA (local plans are approved as part of the State plans); and that the State (and political subdivision, where applicable) will comply with the policies, guidelines and requirement contained in the Assurances section of the project application, including without limitation, FEMA regulations (Code of Federal Regulations, title 44, chapter I—Federal Emergency Management Agency, subchapter E) and with criteria and procedures set forth in CPG 1-3.

(b) Standards and specifications. Civil defense equipment procured by the State (or political subdivision) must meet such FEMA-prescribed minimum standards and specifications as are set forth in CPG 1-3 or other FEMA guidance material referenced therein. Application of such standards and specifications to unique installation or uses of equipment shall be as determined by FEMA following receipt of full information in accordance with procedures set forth in CPG 1-3.

(c) Financial management—(1) System. Grantees shall establish and maintain a financial management system in conformity with the standards set forth in CPG 1-3 as required by Attachment G of OMB Circular No. A-102.

(2) Reporting. Grantees shall comply with the uniform financial reporting requirements set forth in section 2 of Chapter 3 of CPG 1-3, as required by Attachment H of OMB Circular No. A-102.

(d) Property management—(1) Standards. Grantees shall comply with the standards set forth in CPG 1-3, as required by Attachment N of OMB Circular No. A-102, governing the utilization and disposition of property which has been furnished by the Federal Government, acquired in whole or in part with Federal funds, or whose cost has been charged to a project supported by a Federal grant.

(2) Release of Federal interest. As to the requirement of CPG 1-3 (Attachment N of OMB Circular No. A-102) for payment to FEMA of an amount equal to the Federal share of its fair market value prior to disposal or other than authorized use of an item of nonexpendable personal property procured by a political subdivision at a unit acquisition cost of $1,000 or more, where guaranty by the State of such payment to FEMA is not permissible under State law, the guaranty by the State, as joint applicant with its political subdivision shall be limited to an amount not to exceed the amount of the Federal contribution paid by FEMA toward procurement of the particular item of property.

(3) Use. With regard to application of the property management standards set forth in appendix D of CPG 1-3, “purpose of the grant program,” includes use for providing emergency assistance in any area of the United States which suffers a disaster other than a disaster caused by enemy attack. Detailed guidance is set forth in CPG 1-3.

(e) Monitoring and reporting program performance. Grantees shall comply with the provisions set forth in CPG 1-3, as required by OMB Circular No. A-102, regarding the monitoring and reporting of grant-supported activities and programs.

(f) Records retention and availability. Financial records, supporting documents, and all other records pertinent to a grant shall be retained by the grantee and made available as prescribed by appendix B of CPG 1-3 in accordance with the requirements of OMB Circular No. A-102.