Common use of Block Grants Clause in Contracts

Block Grants. In order to avoid large unliquidated (unspent) fund balances, and to ensure that outstanding balances are being expended and that the proposed projects are consistent with the project prioritization requirements outlined in Section 10 of this Agreement, the State agrees to the following: a) Application: must submit grant applications annually to the ADO. The application may include the State’s CIP, which has been approved by and coordinated with the ADO. In lieu of submitting the CIP, the State has the option to submit a breakdown of requested block grant funds for the current FY grant cycle by airport name, location identifier, project title and phase, and fund type (i.e., NPE, SA, and discretionary), and specifying any funds that will be transferred to another airport; b) Provide any information requested by the ADO so that the ADO can perform a risk evaluation of the State prior to the State receiving Federal funds in accordance with 2 CFR § 200.206 and the current Airport Improvement Program (AIP) Grant Oversight Risk Model Policy; and c) Verify that each sponsor: (1) Is eligible to receive Federal funding and is able to assume the responsibilities as outlined in 49 U.S.C. §§ 47105-47107 and FAA Order 5100.38 or other relevant FAA guidance. This includes current compliance with grant assurances and having good title to airport property; (2) Has an active System for Award Management (▇▇▇) registration with no active exclusions; and (3) Is not debarred, suspended, or otherwise excluded from or ineligible for participation in Federal programs or activities as outlined in 2 CFR Part 180. The ADO will review the CIP. The ADO will also review the State funding request to ensure that the State has plans to obligate the requested funds within twelve (12) months of the anticipated grant award date. The ADO will provide comments back to the State as necessary. After concurrence with the funding request, the ADO may issue one or more block grants to the State for each FY for the NPE and SA funds for eligible airports. Finally, the ADO will carry over, or protect, any NPE or SA not associated with a project in the current FY to minimize large outstanding state block grant balances. The ADO may issue subsequent block grants to the State within each FY for the discretionary funds for specific projects at eligible airports. Other Federal funds will be issued under separate grant agreements between the FAA and the State. Once the State accepts and executes the grant offer, it becomes a formal agreement. The State may then provide funds to sponsors through subawards for specific projects. Each State may develop its own process for subawards but must meet SBGP grant administration requirements in this Agreement. These subawards may contain funds from multiple block grant agreements but cannot exceed the amounts apportioned by statute to each airport for NPEs, unless a transfer of NPEs has taken place. Title 49 U.S.C. § 47117(c)(2) allows a sponsor to transfer its NPE in a given year to another sponsor in the State. The State may develop a process to transfer NPEs between locations, but a record of these transfers must be kept and submitted with each block grant closeout using FAA Form 5100-110, Request for FAA Approval of Agreement for Transfer of Entitlements, or a State equivalent. This record documents the State’s approval on behalf of the FAA for the NPE transfer. Obligated discretionary funds may not be transferred to another airport or project, and any remaining unpaid discretionary funds will be recovered by the ADO upon closeout. The State must ensure that Federally funded projects are implemented to ensure the expeditious expenditure of Federal funds and project completion within the grant agreement Period of Performance (PoP). Unless explicitly stated otherwise in an amendment from the ADO, the grant agreement PoP ends four (4) years (one thousand four hundred sixty (1,460) calendar days) from the date the State’s attorney executes the agreement, which is recorded in FAA’s financial accounting system. See Section 19 (grant closeouts and records retention) regarding PoP amendments. The State must also ensure that all sponsors comply with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requirements. If requested by the State, expiring NPEs shall be returned to the ADO in the FY in which they expire for conversion to SA in accordance with 49 U.S.C. § 47117. Similar to the information provided with the State’s initial grant application for these funds, a list of projects and associated funding amounts will be requested with the expiring NPE conversion request application. The ADO will annually provide the State the last date upon which expiring NPEs can be returned and converted.

Block Grants. In order to avoid large unliquidated (unspent) fund balances, and to ensure that outstanding balances are being expended and that the proposed projects are consistent with the project prioritization requirements outlined in Section 10 of this Agreement, the State agrees to the following: a) Application: must submit grant applications annually to the ADO. The application may include the State’s CIP, which has been approved by and coordinated with the ADO. In lieu of submitting the CIP, the State has the option to submit a breakdown of requested block grant funds for the current FY grant cycle by airport name, location identifier, project title and phase, and fund type (i.e., NPE, SA, and discretionary), and specifying any funds that will be transferred to another airport; b) Provide any information requested by the ADO so that the ADO can perform a risk evaluation of the State prior to the State receiving Federal funds in accordance with 2 CFR § 200.206 and the current Airport Improvement Program (AIP) Grant Oversight Risk Model Policy; and c) Verify that each sponsor: (1) Is eligible to receive Federal funding and is able to assume the responsibilities as outlined in 49 U.S.C. §§ 47105-47107 and FAA Order 5100.38 or other relevant FAA guidance. This includes current compliance with grant assurances and having good title to airport property; (2) Has an active System for Award Management (▇▇▇) registration with no active exclusions; and (3) Is not debarred, suspended, or otherwise excluded from or ineligible for participation in Federal programs or activities as outlined in 2 CFR Part 180. The ADO will review the CIP. The ADO will also review the State funding request to ensure that the State has plans to obligate the requested funds within twelve (12) months of the anticipated grant award date. The ADO will provide comments back to the State as necessary. After concurrence with the funding request, the ADO may issue one or more block grants to the State for each FY for the NPE and SA funds for eligible airports. Finally, the ADO will carry over, or protect, any NPE or SA not associated with a project in the current FY to minimize large outstanding state block grant balances. The ADO may issue subsequent block grants to the State within each FY for the discretionary funds for specific projects at eligible airports. Other Federal funds will be issued under separate grant agreements between the FAA and the State. Once the State accepts and executes the grant offer, it becomes a formal agreement. The State may then provide funds to sponsors through subawards for specific projects. Each State may develop its own process for subawards but must meet SBGP grant administration requirements in this Agreement. These subawards may contain funds from multiple block grant agreements but cannot exceed the amounts apportioned by statute to each airport for NPEs, unless a transfer of NPEs has taken place. Title 49 U.S.C. § 47117(c)(2) allows a sponsor to transfer its NPE in a given year to another sponsor in the State. The State may develop a process to transfer NPEs between locations, but a record of these transfers must be kept and submitted with each block grant closeout using FAA Form 5100-110, Request for FAA Approval of Agreement for Transfer of Entitlements, or a State equivalent. This record documents the State’s approval on behalf of the FAA for the NPE transfer. Obligated discretionary funds may not be transferred to another airport or project, and any remaining unpaid discretionary funds will be recovered by the ADO upon closeout. The State must ensure that Federally funded projects are implemented to ensure the expeditious expenditure of Federal funds and project completion within the grant agreement Period of Performance (PoP). Unless explicitly stated otherwise in an amendment from the ADO, the grant agreement PoP ends four (4) years (one thousand four hundred sixty (1,460) calendar days) from the date the State’s attorney executes the agreement, which is recorded in FAA’s financial accounting system. See Section 19 (grant closeouts and records retention) regarding PoP amendments. The State must also ensure that all sponsors comply with 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requirements. If requested by the State, expiring NPEs shall be returned to the ADO in the FY in which they expire for conversion to SA in accordance with 49 U.S.C. § 47117. NPE expires three years after the year in which it was received, and SA expires two years after the year in which it was received. Similar to the information provided with the State’s initial grant application for these funds, a list of projects and associated funding amounts will be requested with the expiring NPE conversion request application. The ADO will annually provide If the State the last date upon which wants to convert its expiring NPEs can be returned to SA, the State needs to notify and convertedcoordinate with the ADO no later than May 1 each year, or as otherwise coordinated with the ADO.