Capital Absorption Opportunity · Federal funding and tax credits
Grants
Definition
A federal grant is the agreement an executive agency must use when its main purpose is to transfer a thing of value to a state, local government or other recipient to carry out a public purpose authorized by federal law, instead of buying property or services, and substantial federal involvement is not expected.[1] When substantial involvement is expected, the agency must use a cooperative agreement instead.[1]
Federal law
- Act enacting title 31, United States Code, "Money and Finance", Pub. L. 97-258, § 1, 96 Stat. 877 (31 U.S.C. §§ 6304, 6305). Enacted 31 U.S.C. §§ 6304–6305, which set when an agency must use a grant agreement or a cooperative agreement. Official text: govinfo.gov, U.S. Government Publishing Office.
- Single Audit Act Amendments of 1996, Pub. L. 104-156, § 2, 110 Stat. 1396 (31 U.S.C. § 7502). Requires a single audit of non-federal entities whose federal award spending reaches the threshold (31 U.S.C. § 7502). Official text: govinfo.gov, U.S. Government Publishing Office.
Federal regulations
Rules issued by federal agencies under the laws above.
- Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards: definitions, 2 CFR 200.1 (Office of Management and Budget). Defines federal financial assistance, including grants and cooperative agreements, for the Uniform Guidance that governs most federal awards. Official text: govinfo.gov, U.S. Government Publishing Office.