[Federal Register Volume 86, Number 91 (Thursday, May 13, 2021)]
[Notices]
[Pages 26215-26220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10194]


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DEPARTMENT OF EDUCATION


Notice Inviting Applications for Public and Private Nonprofit 
Institutions of Higher Education Under the Higher Education Emergency 
Relief Fund (HEERF), Section 2003 of the American Rescue Plan Act, 2021 
(ARP)

AGENCY: Office of Postsecondary Education, Department of Education.

ACTION: Notice.

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SUMMARY: The Secretary is announcing the availability of new ARP (a)(1) 
HEERF grant funding as authorized under section 2003(1) of the ARP and 
inviting applications under Assistance Listing Numbers (ALN) 84.425E 
and 84.425F from eligible public and private nonprofit institutions 
that did not previously receive funding under section 314(a)(1) of the 
Coronavirus Response and Relief Supplemental Appropriations Act, 2021 
(CRRSAA). This notice relates to the approved information collections 
under OMB control numbers 1801-0005 and 1840-0842.

DATES: 
    Applications Available: May 13, 2021.
    Deadline for Transmittal of Applications: Applications will be 
accepted on a rolling basis until August 11, 2021.

ADDRESSES: For the addresses for obtaining and submitting an 
application, please refer to our Common Instructions for Applicants to 
Department of Education Discretionary Grant Programs, published in the 
Federal Register on February 13, 2019 (84 FR 3768) and available at 
www.federalregister.gov/d/2019-02206.

FOR FURTHER INFORMATION CONTACT: Karen Epps, U.S. Department of 
Education, 400 Maryland Avenue SW, Room 250-64, Washington, DC 20202. 
Telephone: The Department of Education HEERF Call Center at (202) 377-
3711. Email: [email protected]. Please also visit our HEERF website at: 
www2.ed.gov/about/offices/list/ope/arp.html.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION:

Full Text of Announcement

I. Funding Opportunity Description

    On March 11, 2021, the President signed into law the ARP (Pub. L. 
117-2). This new law makes available approximately $39.6 billion for 
institutions of higher education under HEERF, with funding appropriated 
through existing programs previously authorized under the CRRSAA (Pub. 
L. 116-260).
    With this notice, the Secretary is announcing the availability of 
HEERF grant funds under the ARP (a)(1) programs under ALNs 84.425E and 
84.425F. These programs, with some changes, are a continuation of the 
CRRSAA section 314(a)(1) program, which the Department implemented as 
two funding streams: (1) The Student Aid Portion (ALN 84.425E) for 
financial grants to students, and (2) the Institutional Portion (ALN 
84.425F) for institutional uses of funds related to the coronavirus.
    Eligible institutions are institutions of higher education, as 
defined in sections 101 and 102(c) of the Higher Education Act of 1965, 
as amended (HEA), 20 U.S.C. 1001, 1002(c). Allocations for these 
programs will be calculated according to the formulas in ARP section 
2003(1) and section 314(a)(1) of the CRRSAA. Under ARP section 2003, 
grant awards under these programs may be used to (1) defray expenses 
associated with coronavirus (including lost revenue, reimbursement for 
expenses already incurred, technology costs associated with a 
transition to distance education, faculty and staff trainings, and 
payroll) or (2) provide financial aid grants to students (including 
students exclusively enrolled in distance education), which may be used 
for any component of the student's cost of attendance or for emergency 
costs that arise due to coronavirus, such as tuition, food, housing, 
health care (including mental health care), or child care. In making 
financial aid grants to students, an institution of higher education 
must prioritize grants to students with exceptional need, such as 
students who receive Pell Grants. The amount each institution must use 
for financial aid grants to students is determined by calculating the 
sum of 50 percent of the amount each institution receives under the 
formula factors in CRRSAA section 314(a)(1)(A)-(D); and 100 percent of 
the amount received under the formula factors in CRRSAA section 
314(a)(1)(E)-(F). This amount is identified for each institution in the 
allocation table.
    Additionally, under ARP section 2003(5), institutions must use a 
portion of their Institutional Portion funds under ALN 84.425F, if the 
institutions have not directed all of these funds to student grants, to 
(1) implement evidence-based practices to monitor and suppress 
coronavirus in accordance with the public health guidelines and (2) 
conduct direct outreach to financial

[[Page 26216]]

aid applicants about the opportunity to receive a financial aid 
adjustment due to recent unemployment status or other changes in 
financial circumstances as described in section 479A of the HEA (20 
U.S.C. 1087tt).
    The Department will automatically award supplemental funds to 
eligible institutions that previously received a section 314(a)(1) 
Student Aid Portion or Institutional Portion award under CRRSAA. No 
action is required by eligible institutions to receive these 
supplemental awards. The Project Director identified on the most 
current Grant Award Notification (GAN) will automatically receive an 
email indicating a supplemental award has been made to their 
institution. Please note that drawing down any amount of these 
supplemented funds constitutes an institution's acceptance of the new 
terms and conditions under the ARP and a new Supplemental Agreement, 
which are included as appendices to this notice for reference.
    Institutions that did not receive a CRRSAA section 314(a)(1) award 
but are on the Department's published ARP (a)(1) allocation table may 
apply for and receive ARP (a)(1) Student Aid Portion (ALN 84.425E) and 
Institutional Portion (ALN 84.425F) grant awards. An institution must 
apply for funds within 90 days of the publication of this notice. 
Institutions that do not apply within the 90 timeframe will become 
ineligible and unable to receive the grant funds.
    The Department recognizes that some institutions may not want 
additional funds under the ARP. Institutions wanting to decline their 
award or a specified amount should submit the Voluntary Decline of 
HEERF Grant Funds form to [email protected], available at www2.ed.gov/about/offices/list/ope/arp.html, to redirect these funds to 
institutions with greater needs. If the Department has already made an 
ARP supplemental award to the institution, the Department will 
deobligate those supplemented funds in G5 by the amount specified in 
the form. Any returned funds will be redistributed to institutions that 
have not declined funds by applying the appropriate distribution 
formula and making additional supplemental awards to those 
institutions. Institutions have 90 days from the publication of this 
notice to indicate if they would like to decline or return unneeded ARP 
funds.
    Program Authority: Section 2003 of the ARP and section 314 of the 
CRRSAA.
    Applicable Regulations: (a) The Education Department General 
Administrative Regulations in 34 CFR parts 75, 77, 81, 82, 84, 86, 97, 
98, and 99. (b) The Office of Management and Budget Guidelines to 
Agencies on Governmentwide Debarment and Suspension (Nonprocurement) in 
2 CFR part 180, as adopted and amended as regulations of the Department 
in 2 CFR part 3485. (c) The Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards in 2 CFR part 
200, as adopted and amended as regulations of the Department in 2 CFR 
part 3474.

II. Award Information

    Type of Award: Formula grants.
    Estimated Available Funds: $39,600,000,000.
    Grant Period: Institutions must expend funds received under this 
program within 12 months of obligation of the funds by the Department.

III. Eligibility Information

    1. Eligible Applicants: Public and Private Nonprofit IHEs, as 
defined in section 101 and section 102(c) of the HEA.
    2. Cost Sharing or Matching: This program does not require cost 
sharing or matching.
    3. Subgrantees: Subgrantees are not allowed under this program.

IV. Application and Submission Information

    1. Application Submission Instructions: Only those institutions 
that did not receive a CRRSAA section 314(a)(1) award but are on the 
Department's published ARP (a)(1) allocation table must submit an 
application for ARP funds in accordance with the following 
instructions.
    Institutions that are interested in receiving both the Student Aid 
Portion and the Institutional Portion of ARP (a)(1) funds must submit 
two applications: One under ALN 84.425E and a second one under ALN 
84.425F. Institutions may apply for the Student Aid Portion only and 
decline the Institutional Portion. However, an institution may not 
receive an Institutional Portion grant if the institution does not also 
apply for the Student Aid Portion grant.
    Applicants are required to submit their applications using 
Grants.gov. Each application for a Student Aid Portion or Institutional 
Portion grant must include--
     A complete SF-424;
     Supplemental Information for the SF-424; and
     A Certification and Agreement (C&A) for the Student Aid 
Portion or the Institutional Portion, as appropriate.

    Note: Institutions must submit the correct C&A for the funds 
requested. Each C&A must be completed using the OPE ID and DUNS 
number of the institution for which you are requesting funds. An 
institution will receive the amount specified for the institution in 
the Department's published ARP (a)(1) allocation table.

    2. Instructions to Decline an Award: To voluntarily decline some or 
all of the institution's award, submit the Voluntary Decline of HEERF 
Grant Funds form, which you can find at www2.ed.gov/about/offices/list/ope/arp.html, to [email protected].
    3. Intergovernmental Review: This program is subject to Executive 
Order 12372 and the regulations in 34 CFR part 79. However, under 34 
CFR 79.8(a), we waive intergovernmental review in order to make timely 
awards.
    4. Funding Restrictions: We specify funding restrictions in the C&A 
or Supplemental Agreement.
    5. Data Universal Numbering System Number, Taxpayer Identification 
Number, and System for Award Management: In general, to do business 
with the Department, you must--
    (a) Have a Data Universal Numbering System (DUNS) number and a 
Taxpayer Identification Number (TIN);
    (b) Register both your DUNS number and TIN with the System for 
Award Management (SAM), the Government's primary registrant database;
    (c) Provide your DUNS number and TIN on your SAM application; and
    (d) Maintain an active SAM registration with current information 
while your application is under review by the Department and, if you 
are awarded a grant, during the project period.
    You can obtain a DUNS number from Dun and Bradstreet at the 
following website: http://fedgov.dnb.com/webform. A DUNS number can be 
created within one to two business days.
    If you are a corporate entity, agency, institution, or 
organization, you can obtain a TIN from the Internal Revenue Service. 
If you are an individual, you can obtain a TIN from the Internal 
Revenue Service or the Social Security Administration. If you need a 
new TIN, please allow two to five weeks for your TIN to become active. 
The SAM registration process can take approximately seven business 
days, but may take upwards of several weeks, depending on the 
completeness and accuracy of the data you enter into the SAM database. 
Thus, if you think you might want to apply for Federal financial 
assistance under a program administered by the Department, please allow 
sufficient time to obtain and register your DUNS number and TIN. If you 
are currently registered with SAM, you may not need to make any 
changes.

[[Page 26217]]

However, please make certain that the TIN associated with your DUNS 
number is correct. Also note that you will need to update your 
registration annually. This may take three or more business days. 
Information about SAM is available at www.SAM.gov. To further assist 
you with obtaining and registering your DUNS number and TIN in SAM or 
updating your existing SAM account, we have prepared a SAM.gov Tip 
Sheet, which you can find at: www2.ed.gov/fund/grant/apply/sam-faqs.html.

V. Award Administration Information

    1. Award Notices: If you receive a grant award under this program, 
we will send you a Grant Award Notification (GAN), or we may send you 
an email containing a link to access an electronic version of your GAN.
    2. Reporting: Institutions must comply with all HEERF reporting 
requirements. Reporting requirements are specified in the C&A or 
Supplemental Agreement.

VI. Other Information

    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, 
Braille, large print, audiotape, or compact disc, or another accessible 
format.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at www.govinfo.gov. At this site you can view this 
document, as well as all other documents of this Department published 
in the Federal Register, in text or Portable Document Format (PDF). To 
use PDF, you must have Adobe Acrobat Reader, which is available free at 
the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

Michelle Asha Cooper,
Acting Assistant Secretary for Postsecondary Education.

Attachment 1: Example Supplemental Agreement for Supplemental Grant 
Funds for Students

American Rescue Plan Act of 2021

Supplemental Agreement (ALN 84.425E) ((a)(1) Student Aid Portion)

Supplemental Grant Funds for Students

    The terms, conditions, and requirements governing your 
institution's (Recipient's) use of these supplemental grant funds 
awarded pursuant to section 2003 of the American Rescue Plan Act of 
2021 (ARP) (Pub. L. 117-2) (supplemental award or grant) by the U.S. 
Department of Education (Department) are governed by section 2003 of 
the ARP and section 314 of the Coronavirus Response and Relief 
Supplemental Appropriations Act, 2021 (CRRSAA) (Pub. L. 116-260) and 
the following terms and conditions of this Supplemental Agreement.

By Drawing Down These Grant Funds, You Agree To Be Bound by the 
Conditions Set Forth on Behalf of the Institution You Represent, and 
You Warrant That You Have the Authority To Bind the Institution to the 
Following Conditions

    1. Section 2003(7) of the ARP requires Recipient, an institution of 
higher education as defined in section 101 or 102(c) of the Higher 
Education Act of 1965, as amended (HEA), 20 U.S.C. 1001 or 1002(c), to 
provide emergency financial aid grants to students in an amount 
equivalent to the sum of two amounts: 50 percent of the portion of its 
allocation that is based on formula factors from CRRSAA section 
314(a)(1)(A)-(D) and 100 percent of the portion of its allocation that 
is based on formula factors from CRRSAA section 314(a)(1)(E)-(F). The 
amount of funds made available by this supplemental award under 
Assistance Listing Number (ALN) 84.425E represents the minimum amount 
that Recipient must use for making emergency financial aid grants to 
students.
    2. Under section 2003(7) of the ARP and section 314(c)(3) of the 
CRRSAA, Recipient must make emergency financial aid grants to students 
(which may include students exclusively enrolled in distance 
education), which may be used for any component of the student's cost 
of attendance or for emergency costs that arise due to coronavirus, 
such as tuition, food, housing, health care (including mental health 
care), or child care.
    3. Recipient acknowledges that it retains discretion to determine 
the amount and availability of each individual emergency financial aid 
grant consistent with all applicable laws, including non-discrimination 
laws. Recipient acknowledges it must not distribute emergency financial 
aid grants in a manner that discriminates against individuals on the 
basis of race, color, national origin, disability, or sex. See, e.g., 
42 U.S.C. 2000(c)-(d) (Title VI), 29 U.S.C. 701 et seq., 20 U.S.C. 1681 
(Title IX).
    4. Recipient further acknowledges that under CRRSAA section 
314(c)(3), it must prioritize grants to students with exceptional need, 
such as students who receive Pell Grants. However, students do not need 
to be Pell recipients or students who are eligible for Pell Grants in 
order to receive an emergency financial aid grant.
    5. Recipient acknowledges that it may not condition the receipt of 
an emergency financial aid grant on continued or future enrollment with 
the Recipient. Recipient also acknowledges that it may not require a 
student to consent to the application of the emergency financial aid 
grant to the student's outstanding account balance with Recipient as a 
condition of receipt of or eligibility for an emergency financial aid 
grant. Recipient also acknowledges that adding preconditions to 
receiving a financial aid grant that thwart this requirement may be 
subjected to oversight and corrective action.
    6. In consideration for this award, Recipient agrees that Recipient 
holds these grant funds in trust for students and acts in the nature of 
a fiduciary for students.
    7. Recipient acknowledges that the Secretary recommends (a) the 
maximum Federal Pell Grant for the applicable award year as an 
appropriate maximum amount for a student's emergency financial aid 
grant in most cases, and (b) that the Recipient should consider each 
student's particular socioeconomic circumstances in the administration 
of these grants.
    8. The Secretary strongly encourages Recipient's financial aid 
administrator to exercise the use of professional judgment available 
under HEA section 479A, 20 U.S.C. 1087tt, to make adjustments on a 
case-by-case basis to exclude individual emergency financial aid grants 
from the calculation of a student's expected family contribution. The 
Secretary has determined that these individual emergency financial aid

[[Page 26218]]

grants do not constitute Federal financial aid under Title IV of the 
HEA.
    9. Recipient acknowledges that it may voluntarily decline all or a 
portion of its ARP (a)(1) student funds. The recipient may indicate 
this by submitting the Voluntary Decline of HEERF form (OMB Control 
Number 1840-0856) 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
    10. 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 15 calendar days it may be subject to heightened 
scrutiny by the Department, Recipient's auditors, and/or the 
Department's Office of the Inspector General (OIG). Recipient further 
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, Recipient's auditors, and/or the 
Department's 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 institution's fiscal year must be returned 
(remitted) to the Federal government via a process described here: 
https://www2.ed.gov/documents/funding-101/g5-returning-interest.pdf.
    11. Recipient may not charge any indirect or administrative costs 
to funds made available under this supplemental award because the 
allocation in this grant award represents the minimum amount of funds 
that must be distributed to students.
    12. 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 (COVID-19) Outbreak 
(85 FR 15337).
    13. Recipient must promptly and to the greatest extent practicable 
distribute all grant funds from this award in the form of emergency 
financial aid grants to students within the one-year period of 
performance (2 CFR 200.77) specified in Box 6 of this Grant Award 
Notification (GAN).
    14. 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.
    15. Recipient acknowledges that its failure to draw down any amount 
($1 or more) of its supplemental grant funds 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.
Reporting and Accountability
    16. 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.
    17. 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 year(s) that the 
institution received a HEERF grant.
    18. Recipient acknowledges it is under a continuing affirmative 
duty to inform the Department if Recipient is to 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 of the GAN. Additionally, Recipient 
must promptly notify the assigned education program officer if the 
Recipient's Authorized Representative changes.
    19. 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.
    20. 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 Recipient's 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 the Department in 2 CFR 
part 3485; 18 U.S.C. 1001, as appropriate; and all of the laws and 
regulations referenced in the ``Applicable Law'' section of this 
Supplemental Agreement, below.
Applicable Law
    21. Recipient must comply with all applicable assurances in OMB 
Standard Forms (SF) SF-424B and SF-424D (Assurances for Non-
Construction and Assurances for Construction Programs), including the 
assurances relating to the legal authority to apply for assistance; 
access to records; conflict of interest; nondiscrimination; Hatch Act 
provisions; labor standards; Single Audit Act; and the general 
agreement to comply with all applicable Federal laws, executive orders, 
and regulations.
    22. Recipient certifies that with respect to the certification 
regarding lobbying in Department Form 80-0013, no Federal appropriated 
funds have been paid or will be paid to any person for influencing or 
attempting to influence an officer or employee of any agency, a Member 
of Congress, an officer or employee of Congress, or an employee of a 
Member of Congress in connection with the making or supplementing of 
Federal grants under this program; Recipient must complete and submit 
Standard Form-LLL, ``Disclosure Form to Report Lobbying,'' when 
required (34 CFR part 82, Appendix B).
    23. Recipient must comply with the provisions of all applicable 
acts, regulations and assurances; the following provisions of Education 
Department General Administrative Regulations (EDGAR) 34 CFR parts 75, 
77, 81, 82, 84, 86, 97, 98, and 99; the OMB Guidelines to Agencies on 
Governmentwide Debarment and Suspension (Nonprocurement) in 2 CFR part 
180, as adopted and amended as regulations of the Department in 2 CFR 
part 3485; and the Uniform

[[Page 26219]]

Administrative Requirements, Cost Principles, and Audit Requirements 
for Federal Awards in 2 CFR part 200, as adopted and amended as 
regulations of the Department in 2 CFR part 3474.

Attachment 2: Example Supplemental Agreement for Supplemental Grant 
Funds for Institutions

American Rescue Plan Act of 2021

Supplemental Agreement (ALN 84.425F) ((a)(1) Institutional Portion)

Supplemental Grant Funds for Institutions

    The terms, conditions, and requirements governing your 
institution's (Recipient's) use of these supplemental grant funds 
awarded pursuant to section 2003 of the American Rescue Plan Act of 
2021 (ARP) (Pub. L. 117-2) (supplemental award or grant) by the U.S. 
Department of Education (Department) are governed by section 2003 of 
the ARP and section 314 of the Coronavirus Response and Relief 
Supplemental Appropriations Act, 2021 (CRRSAA) (Pub. L. 116-260) and 
the following terms and conditions of this Supplemental Agreement.

By Drawing Down These Grant Funds, You Agree To Be Bound by the 
Conditions Set Forth on Behalf of the Institution You Represent, and 
You Warrant That You Have the Authority To Bind the Institution to the 
Following Conditions

Use of Supplemental Grant Funds
    1. Under section 314(c) of the CRRSAA, Recipient, an institution of 
higher education as defined in section 101 or 102(c) of the Higher 
Education Act of 1965, as amended (HEA), 20 U.S.C. 1001 or 1002(c), may 
use these supplemental grant funds for Recipient's Institutional Costs 
to defray expenses associated with coronavirus (including lost revenue, 
reimbursement for expenses already incurred, technology costs 
associated with a transition to distance education, faculty and staff 
trainings, and payroll) and make additional emergency financial grants 
to students, which may be used for any component of the student's cost 
of attendance or for emergency costs that arise due to coronavirus, 
such as tuition, food, housing, health care (including mental health 
care), or child care.
    2. Under section 2003(5) of the ARP, Recipient must use a portion 
of their institutional 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).
    3. Recipient may, but is not required to, use funds designated for 
Recipient's Institutional Costs to provide additional emergency 
financial aid grants to students. If Recipient chooses to use these 
grant funds designated for Recipient's Institutional Costs to provide 
additional emergency financial aid grants to students, then those funds 
are subject to the requirements described in the ARP Supplemental Grant 
Funds for Students Agreement.
    4. The Secretary urges Recipient to devote the maximum amount of 
funds possible to emergency financial aid grants to students, including 
some or all of the funds allocated for Recipient's Institutional Costs. 
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 (a)(1) institutional funds. The recipient may 
indicate this by submitting the Voluntary Decline of HEERF form (OMB 
Control Number 1840-0856) 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 3 calendar days it may be subject to heightened 
scrutiny by the Department, Recipient's auditors, and/or the 
Department's Office of the Inspector General (OIG). Recipient further 
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, Recipient's auditors, and/or the 
Department's 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 institution's fiscal year must be returned 
(remitted) to the Federal government via a process described here: 
https://www2.ed.gov/documents/funding-101/g5-returning-interest.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 (COVID-19) 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 supplemental grant funds 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

[[Page 26220]]

including terminating the grant award pursuant to 2 CFR 200.340.
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.
    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 year(s) 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 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 Recipient's 
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 Recipient's 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 the Department in 2 CFR 
part 3485; 18 U.S.C. 1001, as appropriate; and all of the laws and 
regulations referenced in the ``Applicable Law'' section of this 
Supplemental Agreement, below.
Applicable Law
    18. Recipient must comply with all applicable assurances in OMB 
Standard Forms (SF) SF-424B and SF-424D (Assurances for Non-
Construction and Assurances for Construction Programs), including the 
assurances relating to the legal authority to apply for assistance; 
access to records; conflict of interest; nondiscrimination; Hatch Act 
provisions; labor standards; Single Audit Act; and the general 
agreement to comply with all applicable Federal laws, executive orders, 
and regulations.
    19. Recipient certifies that with respect to the certification 
regarding lobbying in Department Form 80-0013, no Federal appropriated 
funds have been paid or will be paid to any person for influencing or 
attempting to influence an officer or employee of any agency, a Member 
of Congress, an officer or employee of Congress, or an employee of a 
Member of Congress in connection with the making or supplementing of 
Federal grants under this program; Recipient must complete and submit 
Standard Form-LLL, ``Disclosure Form to Report Lobbying,'' when 
required (34 CFR part 82, Appendix B).
    20. Recipient must comply with the provisions of all applicable 
acts, regulations and assurances; the following provisions of Education 
Department General Administrative Regulations (EDGAR) 34 CFR parts 75, 
77, 81, 82, 84, 86, 97, 98, and 99; the OMB Guidelines to Agencies on 
Governmentwide Debarment and Suspension (Nonprocurement) in 2 CFR part 
180, as adopted and amended as regulations of the Department in 2 CFR 
part 3485; and the Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards in 2 CFR part 
200, as adopted and amended as regulations of the Department in 2 CFR 
part 3474.

[FR Doc. 2021-10194 Filed 5-12-21; 8:45 am]
BILLING CODE 4000-01-P