[Federal Register Volume 73, Number 99 (Wednesday, May 21, 2008)]
[Notices]
[Page 29502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-11409]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-8569-3]


Disallowing Management Fees in EPA Assistance Agreements

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice.

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SUMMARY: The term ``management fees or similar charges'' refers to 
expenses added to the direct costs in order to accumulate and reserve 
funds for ongoing business expenses, unforeseen liabilities, or for 
other similar costs which are not allowable under EPA assistance 
agreements. EPA will not, as a matter of policy, allow recipients of 
EPA financial assistance to charge management fees to their agreements 
with the Agency. Recipients will have actual notice of EPA's policy 
prohibiting management fees through a term and condition and 
competitive solicitation announcements.
    EPA funds for financial assistance are limited. The Agency has 
decided that, in the absence of contrary statutory direction, the 
public's interest in supporting projects that promote environmental 
protection is best served by ensuring that EPA financial assistance is 
used only to pay for costs that are allocable to the specific project 
receiving EPA financial assistance, and are reasonable and necessary 
for the performance of the project. Management fees or similar charges 
may not be used to improve or expand the capacity of organizations 
carrying out EPA funded projects, except to the extent authorized by 
the terms of the agreement as a direct cost of carrying out the scope 
of work. EPA's ``no management fee'' policy is consistent with OMB 
Circular A-122, as codified at 2 CFR Part 230. According to 2 CFR Part 
230, Appendix B, Item 9, contributions to contingency reserves for 
unforeseen events are unallowable. Therefore, management fees or 
similar charges in excess of the direct costs and approved indirect 
rates are not allowable under EPA assistance agreements.

FOR FURTHER INFORMATION CONTACT: Brian Hanlon, 202-564-2865.

    Dated: May 15, 2008.
Howard Corcoran,
Director, Office of Grants and Debarment.
 [FR Doc. E8-11409 Filed 5-20-08; 8:45 am]
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