FEDERAL ASSISTANCE MANUAL: CHAPTER 5-70A

	Federal Assistance Manual Chapter 5-70A

The Office of Surface Mining uses this Financial Assistance Manual to show how OSM and its grantees manage Federal grants. This chapter tells how to close out an Abandoned Mine Land grant.

CHAPTER 5-70A
AML GRANT PROGRAM
CLOSEOUT POLICY AND PROCEDURES

5-70A-00 Purpose
5-70A-10 OSM Policy
5-70A-20 Closeout Requirements
5-70A-30 Internal Procedures - Grant Closeout
5-70A-40 Internal Procedures - Budget/Cost Category Closeout
5-70A-50 Extension of Final Report Due Dates

5-70A-00 PURPOSE

This chapter provides OSM policy and procedures to close a completed AML budget/cost category or grant.

5-70A-10 OSM POLICY

Budget/cost categories and grants are normally closed out no later than 180 calendar days after the end of the performance period. The first 90 days are allotted for grantees to provide documentation to OSM; the remaining ninety days are allotted for OSM to complete the closeout process.
A grant shall not be closed (1) if the grant is in litigation or under appeal; (2) if, in the event the grant has been terminated, all termination actions have not yet been accomplished; (3) until all allowable, allocable, and reasonable costs have been paid and all excess funds deobligated; and (4) until the OSM office administering the grant certifies in writing that all the procedures set forth in this chapter have been accomplished.
The closeout of a budget/cost category or grant does not affect the retention period for, or Federal rights of access to, grant records, nor the recipient's responsibility with respect to property or equipment purchased with grant assistance. Grants may be closed without audit; however, a subsequent audit may identify allowable or questioned costs that may require additional administrative action.

5-70A-20 CLOSEOUT REQUIREMENTS

General. Recipients shall submit one signed original and no more than two copies of documentation to close out completed budget/cost categories and grants.

Closeout Package - AML Grant Program. A complete closeout package for a budget/cost category or a grant consists of:

Document Name	Form No.	Required to Close
		Grant	Budget/Cost Category
Transmittal Letter Final Financial Status Report Final Performance Report Report of Government Property Report of Federally-Owned Property	-- OSM 49 OSM 51 OSM 60 OSM 60	Y Y Y 1/ Y	Y Y Y 1/ Y

1/ Normally, property is purchased under the Administrative Costs budget/cost category and this form is completed as part of the closeout of that budget/cost category. NOTE: The final problem area (PA) information is inputted upon completion of the project, not as part of the closeout process. Instructions for inputting the information are found in OSM Directive AML-1.

Guidance for preparing a complete closeout package is provided at Exhibit X5-70A-1.

5-70A-30 INTERNAL PROCEDURES - GRANT CLOSEOUT

Upon receipt of the closeout information, the designated OSM office shall review the documentation to determine if the recipient has submitted a complete and acceptable closeout package, as outlined in Part A of the Grant/Cooperative Agreement Closeout Checklist, OSM 61A (Exhibit X5-70A-2). If the closeout package is acceptable, within 60 days after receipt of the complete closeout package, the OSM office shall complete the actions listed in Part B of the OSM 61A (Exhibit X5-70A-2) . If the closeout package is unacceptable, OSM may return the documents to the recipient with an explanation of what must be done to make the package acceptable, request additional information from the recipient, or resolve the problems through telephone conversations.
After completion of the review, the designated OSM regional/field office shall sign the final OSM 52 and forward it to DFM to officially close the grant.
Within 5 days of receipt of the signed OSM 52, DFM shall complete all actions to record the closeout of the grant and, if required, deobligate funds.
The designated OSM office shall notify the recipient of OSM closeout actions and of the record retention requirements.

5-70A-40 INTERNAL PROCEDURES - BUDGET/COST CATEGORY CLOSEOUT

When the performance period for a subaccount expires before the end of the grant performance period, the subaccount must be closed independently.
Recipients shall submit the documents outlined at 5-70A-20 to the designated OSM office within 90 days after the end of the budget/cost category performance period. Within 60 days after receipt, the designated OSM office shall complete all actions necessary to close the budget/cost category and forward the package to DFM for further processing. Within 5 days of receipt of a budget/cost category closeoutpackage, DFM shall complete all actions to record the closeout of the budget/cost category.
If funds are to be deobligated or transferred to another budget/cost category, a grant amendment shall be processed, and a revised Attachment A and OSM 52 forwarded to DFM for further processing.
If no funds remain, the closeout of a budget/cost category is executed through a letter of approval, and an OSM 52 forwarded to DFM for final processing.

5-70A-50 EXTENSION OF FINAL REPORT DUE DATES

The recipient shall make every reasonable effort to submit documentation to close out the grant no later than 90 calendar days following its expiration. The designated OSM office, however, may extend the due date for the final financial/performance reports upon receiving written justification from the recipient. Approval of a request to extend the due date is contingent upon receipt of an interim OSM 49 and OSM 51 no later than 30 calendar days after the end of the performance period.
The designated OSM office shall transmit to DFM a signed OSM 52 showing the revised closeout date.

EXHIBIT X5-70A-1

GUIDANCE ON CLOSING
AN AML BUDGET/COST CATEGORY ORGRANT

Transmittal Letter

Provide a statement in the transmittal letter that the budget/cost category or grant is considered complete; that payments from OSM for all allowable costs have been made; and that OSM is released from all obligations under or arising from the budget/cost category or grant, subject to final audit, if any.

OSM 49 (Final Financial Status Report) - Instructions for completing form found in Chapter 5-60A

The Federal share of all obligations incurred under the grant must be liquidated.
Report all program income in accordance with the program income option designated in the grant award.

OSM 51 (Final Performance Report) - Instructions for completing form found in Chapter 5-60A

OSM 60 (Grant Acquired Property)

Submit a Report of Government Property, OSM 60 (Exhibit X5-70A-1) if property was authorized and subsequently acquired under the grant program, suggesting disposal or transfer of appropriate property. (If disposal of the property,rather than the transfer of the property to a subsequent grant, is suggested, the recipient shall follow the instructions in FAM Chapter 1-410-40A for equipment purchased under a grant approved prior to October 1, 1988 and FAM Chapter 1-410-40B for equipment purchased under a grant approved on or after October 1, 1988). A cumulative listing of all property acquired under the grant and all property transferred into the grant fromprevious grants shall be reported on the OSM 60.

OSM 60 (Government Furnished Equipment)

Submit a Report of Government Property, OSM 60 (Exhibit X5-70-1), listing all federally-owned property provided for use under the grant.

Report of Government Property, Form OSM 60

Go to Forms page to download a copy of this form
INSTRUCTIONS FOR COMPLETING THE FORM OSM-60
Grant-Purchased Equipment. Recipients are required to account for equipment purchased with Federal funds for use under a specific grant program. Recipients may use the Form OSM-60, Report of Federal Property, or submit computer-generated records for this purpose. If computer-generated records are submitted, all items on the OSM-60 must be included.
If purchased under a grant approved prior to October 1, 1988, equipment is defined as tangible, nonexpendable, personal property with a useful life of more than one year and an acquisition cost of $500 or more per unit.
As of October 1, 1988, equipment is defined as tangible, nonexpendable, personal property with a useful life of more than one year and an acquisition cost of $5,000 or more per unit.
A grantee may use its own definition of equipment provided that such definition at least includes all equipment defined above.
Government-Furnished Property. Recipients are also required to account for all property provided by the Federal Government for use under a specific grant program. Recipients may use the Form OSM-60 for this purpose. Computer-generated records also may be used, as long as all items on the OSM-60 are included.
Detailed Instructions
Item 1, 3, 4 and 5: Self-explanatory.
Item 2: Enter the grant number.
Items 6(a), (b): Self-explanatory.
Items 6(c), (d): Enter the manufacturer's name and manufacturer's serial number for each item.
Item 6(e): Self-explanatory.
Item 6(f): Describe the present condition of the equipment being reported.
Item 6(g): List where each item of equipment is physically maintained.
Item 6(h): List the purchase price of the equipment, less credits and rebates.
Item 6(I): Enter the date purchased or received by the recipient.
Item 6(j): Enter the suggested disposition of each item of equipment.
Item 6(k), (l), and (m): If appropriate, OSM shall provide specific disposition instructions and return a copy ofForm OSM-60 to the recipient. If the recipient is not requesting to dispose of or trade-in the equipment, the equipment should be transferred to the next grant or cooperative agreement, and continue to be used to support the funded program.
EXHIBIT X5-70A-2
Grant and Cooperative Agreement closeout Checklist, Form OSM 61A
GRANT AND COOPERATIVE AGREEMENT CLOSEOUT CHECKLIST

STATE/TRIBE: GRANT NO.

Part A. Has the Recipient: Y N NA

1. Stated in the transmittal that it considers the grant to be complete, that payments from OSM for all allowable costs have been made, and that OSM is released from all obligations under or arising from the grant?

2. Submitted the final performance report, OSM 51?

3. Submitted the final financial status report, OSM 49?

4. Submitted an inventory of federally-owned property, OSM 60, received under the grant?

5. Submitted an inventory of grant-purchased property, OSM-60, requesting disposal or transfer to another grant?

6. Reported program in accordance with the program income option in the grant award?

Part B. Has the OSM Reviewing Office: Y N NA

1. Verified that all known changes have been incorporated into the grant by appropriate revisions or amendments?

2. Notified other Federal agencies involved in the grant of closeout actions?

3. Resolved all suspensions, withholdings, disputes and violations of grant clauses and assurances with the recipient?

4. Prepared a brief written evaluation of the recipient's performance and placed a copy in the grant file?

5. Approved the transfer or disposition of grant-purchased property to another grant?

6. Reconciled the inventory of federally-owned property reported on the OSM-60 to OSM records, and approved the transfer to a subsequent grant?

7. As appropriate, completed FAADS input.

8. Prepared a revised Attachment A to revise budget/cost categories to reflect actual costs?

9. Prepared an OSM 52 to deobligate funds and/or close the grant?
OSM 61A
Revised 8/97
GRANT AND COOPERATIVE AGREEMENT CLOSEOUT CHECKLIST - Continued

Part C. Closeout Documentation DATE

OSM 49
OSM 51

OSM 60

OSM 60

--

OSM 52

OSM 61A

DI-1961

--

--
Final Financial Status Report
Performance Report

Grant-Purchased Equipment

Federally-Owned Equipment

Attachment A

Obligation Report

Closeout Checklist

FAADS Reporting Form

Evaluation Report (Monitoring Statement)

Other Documents (Explain)

Part D. Financial Information DATE

Amount Awarded

Less Expenditures
Amount Deobligated
$

$
$

Financial information agrees with ABACIS               Y              N

OSM 52 completed and forwarded to DFM



Prepared by
Date Prepared
OSM 61A
Revised 8/97
FEDERAL ASSISTANCE MANUAL
January 2, 1998

(FAM Contents) (Definitions) (Acronyms) (Home Page)

Page Master: Marie Sibrell
Office of Surface Mining
1951 Constitution Ave. N.W.
Washington, D.C. 20240
202-208-2719
getinfo@osmre.gov

STATE/TRIBE: GRANT NO.
Part A. Has the Recipient:	Y	N	NA
1. Stated in the transmittal that it considers the grant to be complete, that payments from OSM for all allowable costs have been made, and that OSM is released from all obligations under or arising from the grant?
2. Submitted the final performance report, OSM 51?
3. Submitted the final financial status report, OSM 49?
4. Submitted an inventory of federally-owned property, OSM 60, received under the grant?
5. Submitted an inventory of grant-purchased property, OSM-60, requesting disposal or transfer to another grant?
6. Reported program in accordance with the program income option in the grant award?
Part B. Has the OSM Reviewing Office:	Y	N	NA
1. Verified that all known changes have been incorporated into the grant by appropriate revisions or amendments?
2. Notified other Federal agencies involved in the grant of closeout actions?
3. Resolved all suspensions, withholdings, disputes and violations of grant clauses and assurances with the recipient?
4. Prepared a brief written evaluation of the recipient's performance and placed a copy in the grant file?
5. Approved the transfer or disposition of grant-purchased property to another grant?
6. Reconciled the inventory of federally-owned property reported on the OSM-60 to OSM records, and approved the transfer to a subsequent grant?
7. As appropriate, completed FAADS input.
8. Prepared a revised Attachment A to revise budget/cost categories to reflect actual costs?
9. Prepared an OSM 52 to deobligate funds and/or close the grant?

Part C. Closeout Documentation				DATE
		OSM 49 OSM 51 OSM 60 OSM 60 -- OSM 52 OSM 61A DI-1961 -- --	Final Financial Status Report Performance Report Grant-Purchased Equipment Federally-Owned Equipment Attachment A Obligation Report Closeout Checklist FAADS Reporting Form Evaluation Report (Monitoring Statement) Other Documents (Explain)
Part D. Financial Information				DATE
	Amount Awarded Less Expenditures Amount Deobligated		$ $ $
	Financial information agrees with ABACIS Y N OSM 52 completed and forwarded to DFM
Prepared by Date Prepared