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Summary: Subpart D is the operational "heart" of the grant, containing the strict standards for financial management, procurement, and property oversight that apply throughout the project's life. It mandates the implementation of "Internal Controls" that prevent the misuse of funds and ensure that performance is tracked against goals. This subpart contains the "Procurement Standards" which are the single most common source of de-obligated disaster funds due to non-competitive bidding. It also outlines "Property Standards," requiring detailed inventories of everything from vehicles to specialized engineering equipment. For a grant manager, this subpart is the daily "Standard Operating Procedure" (SOP) that ensures every action is audit-ready. It emphasizes the "Retention of Records," ensuring that the "paper trail" is preserved for at least three years after final closeout. Subpart D is the ultimate framework for maintaining "Fiscal Resiliency" through rigorous administrative discipline.
● §200.300 Statutory and National Policy Requirements: You must ensure your project complies with all "Cross-Cutting" federal laws like the Civil Rights Act. This is essential as a violation of these policies can freeze your grant regardless of technical performance.
● §200.301 Performance Measurement: You must establish KPIs that link your spending to actual disaster recovery outcomes. This is essential for the "Performance Reporting" required to prove the grant is achieving its intended impact.
● §200.302 Financial Management: You must maintain an accounting system that can track "Source and Application" of funds to each specific grant. This is essential for providing the transparency required to pass a "Single Audit" without findings.
● §200.303 Internal Controls: You must implement a "Culture of Compliance" with separation of duties and written procedures. This is essential as it is the "Standard of Care" auditors use to decide if your management of funds is trustworthy.
● §200.304 Bonds: You must ensure contractors provide Performance and Payment bonds for construction projects. This is essential to protect the federal investment if a contractor goes bankrupt mid-project.
● §200.305 Federal Payment: You must minimize the time between drawing down federal cash and paying your bills (the "Interest Earned" rule). This is essential to avoid "Cash Management" findings and the need to return interest to the Treasury.
● §200.306 Cost Sharing or Matching: You must document the "Valuation" of any local match (cash or in-kind). This is essential because if your match fails an audit, the federal share will be reduced proportionally.
● §200.307 Program Income: You must track and report any revenue generated by the grant (e.g., user fees). This is essential because "Program Income" must usually be deducted from the grant or used for project purposes.
● §200.308 Revision of Budget and Program Plans: You must request prior approval for significant "Budget Shifts" or changes in the "Key Personnel." This is essential to prevent "Scope Creep" and ensure costs remain "Allowable" under the new plan.
● §200.309 Period of Performance: You must only charge costs that occur between the start and end dates of the grant. This is essential as "Out of Period" spending is one of the easiest errors for an auditor to identify and recoup.
● §200.310 Insurance Coverage: You must maintain insurance on grant-funded property at least equal to your own property. This is essential to protect the taxpayer’s investment in your infrastructure and equipment.
● §200.311 Real Property: You must record the "Federal Interest" in any land or buildings purchased with grant funds. This is essential to prevent the unauthorized sale or use of property that the federal government helped finance.
● §200.312 Federally Owned and Leased Property: You must perform an annual inventory of any property provided to you by the federal government. This is essential for maintaining accountability for assets you do not own but are using.
● §200.313 Equipment: You must maintain a master inventory with serial numbers, locations, and "Ultimate Disposition" data. This is essential because equipment purchased with federal funds has strict rules for how it is used and sold.
● §200.314 Supplies: You must track supplies (items under $5,000) and ensure they are used for the grant. This is essential to prevent the "stockpiling" of materials for non-grant purposes.
● §200.315 Intangible Property: You must recognize the federal government’s "Royalty-Free License" to use any software or data developed under the grant. This is essential for compliance with "Open Data" and "Public Resource" policies.
● §200.316 Property Trust Relationship: You must act as a "Trustee" for all property acquired with federal funds. This is essential for establishing the legal fiduciary duty you owe to the federal awarding agency.
● §200.317 Procurements by States: You must follow your own state procurement laws if you are a state agency. This is essential for ensuring that federal funds don't override existing state-level fiscal controls.
● §200.318 General Procurement Standards: You must maintain "Written Standards of Conduct" and perform oversight on all contractors. This is essential as it is the primary defense against "Contractor Non-Performance" and "Cost Overruns."
● §200.319 Competition: You must eliminate "Geographic Preferences" and ensure all vendors have an equal chance to bid. This is essential to ensure the grant gets the best possible price through "Full and Open Competition."
● §200.320 Methods of Procurement: You must choose the correct method
(Micro-purchase, Small purchase, Sealed Bid, or Proposal). This is essential because using "Simplified Acquisition" for a large project will result in a "Sole Source" finding.
● §200.321 Contracting with Small and Minority Businesses: You must take "Six Affirmative Steps" to include MWBE firms in your bidding process. This is essential for meeting federal "Socio-Economic" goals and is a heavily audited area.
● §200.322 Domestic Preferences for Procurements: You must provide a preference for "Build America, Buy America" materials. This is essential to comply with national economic policy and avoid "Foreign Material" audit findings.
● §200.323 Procurement of Recovered Materials: You must specify the use of recycled
materials in your construction bids where possible. This is essential for environmental compliance under the "Solid Waste Disposal Act."
● §200.324 Contract Cost and Price: You must perform an independent "Cost Estimate" before receiving bids. This is essential to prove that the price you eventually pay is "Reasonable" and not a result of "Price Gouging."
● §200.325 Federal Awarding Agency Review: You must make your procurement documents available for FEMA or HUD review upon request. This is essential for "Pre-Award" clearance of large or high-risk contracts.
● §200.326 Bonding Requirements: You must ensure construction contracts over the simplified acquisition threshold have proper bonds. This is essential for "Risk Mitigation" against contractor default on critical infrastructure.
● §200.327 Contract Provisions: You must include all "Appendix II" clauses in every contract. This is essential because a contract without federal clauses is often considered "Ineligible" for reimbursement by the federal agency.
● §200.328 Monitoring and Reporting Program Performance: You must submit "Performance Reports" comparing actual accomplishments to goals. This is essential for the agency to see if their money is actually "Moving the Needle" on recovery.
● §200.329 Financial Reporting: You must submit the "SF-425" Federal Financial Report on time. This is essential for the federal government to track "Unliquidated Obligations" and overall program spending.
● §200.330 Reporting on Real Property: You must submit an annual report (SF-429) on the status of any real estate acquired. This is essential for the "Continued Use" verification required for permanent federal interest.
● §200.331 Subrecipient and Contractor Determinations: You must use a "Checklist" to decide if an entity is a partner (Subrecipient) or a vendor (Contractor). This is essential because your "Monitoring Responsibilities" are 100x higher for subrecipients.
● §200.332 Requirements for Pass-Through Entities: You must flow down all federal rules and "Monitor" your subrecipients. This is essential because the municipality is "Strictly Liable" for any mistakes made by their sub-partners.
● §200.333 Fixed Amount Subawards: You must only use "Fixed Amount" subawards with prior agency approval. This is essential to ensure you aren't bypassing "Cost Principles" without a legal basis.
● §200.334 Retention Requirements for Records: You must keep all grant files for 3 years from the date of the "Final Expenditure Report." This is essential because an audit can happen years after the project is finished.
● §200.335 Requests for Transfer of Records: You must transfer records to the federal agency if they request them for long-term storage. This is essential for "Institutional Memory" and federal oversight of major historical grants.
● §200.336 Methods for Collection, Transmission, and Storage: You must use "Electronic Storage" and "Open Formats" whenever possible. This is essential to facilitate "Digital Audits" and reduce the administrative burden of paper files.
● §200.337 Access to Records: You must provide the "OIG" and "Comptroller General" full access to all grant-related files. This is essential for the "Check and Balance" system that
prevents corruption in federal spending.
● §200.338 Restrictions on Public Access to Records: You must protect "Personally Identifiable Information" (PII) while allowing general record access. This is essential to comply with the "Privacy Act" while remaining "Transparent."
● §200.339 Remedies for Noncompliance: You must be aware that the agency can "Withhold Payments" or "Terminate" the award for bad performance. This is essential for understanding the "Enforcement Actions" that can be taken against the municipality.
● §200.340 Termination: You must document the "Closeout" of a contract if it is terminated for "Cause" or "Convenience." This is essential to settle any "Outstanding Liabilities" and stop the flow of federal funds.
● §200.341 Notification of Termination Determination: You must respond to any "Termination Notice" within the required timeframe. This is essential to preserve your "Right to Appeal" an adverse federal decision.
● §200.342 Opportunities to Object, Explain, and Provide Information: You must use the "Administrative Review" process to contest an agency finding. This is essential for "Due Process" and can save the municipality from having to return funds.
● §200.343 Effects of Suspension and Termination: You must stop all spending immediately upon receipt of a suspension notice. This is essential because any money spent after suspension is "Per Se Unallowable" and will never be reimbursed.
● §200.344 Closeout: You must submit all "Final Reports" within 120 days of the project ending. This is essential to "De-obligate" remaining funds and officially release the municipality from further reporting.
● §200.345 Post-Closeout Adjustments and Continuing Responsibilities: You must be aware that the federal government can still "Claw Back" money after the grant is closed. This is essential for understanding that "Audit Risk" continues even after the project is "Done."
● §200.346 Collection of Amounts Due: You must pay back any "Debt" to the federal government within 90 days. This is essential to avoid "Interest Penalties" and the "Offset" of future federal payments.