General Requirements

The subrecipient is not permitted to begin grant activity or receive reimbursement for said activity without an official award letter. The subrecipient shall not begin activities prior to the start date listed in their official award letter. Activity start dates shall not begin prior to October 1 of the fiscal year.

All correspondence to the OHSP regarding this project shall include the project number (example: 2027-PT-09-00).

Each grant is required to have a minimum of three separate individuals responsible for grant management: one serving as project director, one as a financial officer, and one as an authorizing official. A fourth individual may be added to the grant application as an agency contact. A change in the contact information for the project director, agency contact, financial officer, or authorizing official requires written notification to the OHSP within 10 business days of the change. The project director shall be responsible for making changes in the online grant management system, Michigan Grants System (MGX).

The OHSP is required by the NHTSA to evaluate and document the risk for each entity applying for federal grant funds prior to making an award. The subrecipient shall either register as a new entity/first time user or as an existing entity annually to recertify their Unique Entity Identifier (UEI) number in the online System for Award Management (SAM.gov) to be eligible for federal grants. The OHSP shall ensure active status and the entity is not suspended or debarred at the beginning of the fiscal year. Project Directors shall update their Fiscal Year 2027 (FY2027) online grant application with the active SAM.gov UEI.

The OHSP may conduct a monitoring review of highway safety grants in accordance with Title 2 of the Code of Federal Regulations (CFR) 200, the NHTSA regulations, and these Grant Management Requirements (GMRs) to determine adherence to project objectives, to review financial procedures, and to ensure compliance with grant requirements. All subrecipients are expected to cooperate with all reasonable requests for information as part of the monitoring review process.

The subrecipients shall take reasonable measures to safeguard protected personally identifiable information. “Subrecipients,” as used throughout this document, shall include all grantees, contractors, or participants. This information is based on what the NHTSA or the OHSP designates as sensitive, or that the subrecipient considers sensitive, consistent with applicable federal, state, and local laws regarding privacy and obligations of confidentiality as prescribed under 2 CFR Part 200.303.

All project proposals, applications, and amendments are required to be entered in MGX. The primary subrecipient is responsible for ensuring approved sub-subrecipients participating in a project sign and understand the NHTSA Certifications and Assurances as they have been required by the OHSP. “Sub-subrecipient” includes grantees, contractors, or participants receiving grant funds via a lead subrecipient agency. The primary subrecipients that pass funds through to sub-subrecipients are responsible for monitoring their activities to ensure that federal awards are used for authorized purposes in compliance with federal program laws, regulations, and grant agreements, and that performance goals are being achieved. Monitoring can include, but is not limited to, financial document reviews, reviews of project progress, on-site visits, training, telephone calls, etc. The primary subrecipient organization is responsible for maintaining the signed copies of the Certifications and Assurances documents of their sub-subrecipients, and a subrecipient can be asked to present these documents to OHSP upon request. The subrecipient shall retain these documents per the State of Michigan Retention Policies.

In the event a subrecipient fails to comply with any provision in this funding agreement, the OHSP retains the right to impose sanctions, including withholding payments to the subrecipient until they comply, request reimbursement of previous payments, and/or cancel, terminate, or suspend a funding agreement.

Per Executive Directive No. 2019-09: A department, board, commission, or other agency within the executive branch of state government subject to supervision by the Governor under Article 5, § 8 of the Michigan Constitution of 1963 shall include in any agreement for the provision of a grant or loan involving state money to another person or entity a requirement that the person or entity and any contractor of the person or entity, subcontractor of the contractor, or subrecipient of the grant or loan, not discriminate against an employee or an applicant for employment in hiring, any terms and conditions of employment, or matters related to employment because of religion, race, color, national origin, age, sex, height, weight, marital status, partisan considerations, or a disability or genetic information that is unrelated to the person's ability to perform the duties of a particular job or position.

Seat Belt Use and Hands-Free Law

Seat Belt Use

In addition to the federal certifications and assurances (page 9), the State of Michigan requires all subrecipients to use a seat belt. See MCL 257.710e.

Hands-Free Law

In addition to the federal certifications and assurances (Appendix A to Part 1300, Title 23), the State of Michigan requires all subrecipients to drive hands-free, with some exceptions for emergencies. See MCL Section 257.602b.

Public Information and Education PIE Requirements

All original electronic files, including designs, concepts, photographs, video, and audio financed with grant funds, shall be delivered to the OHSP by an agreed-upon due date between the OHSP and the subrecipient, including all sub-subrecipients and contractors. The OHSP will require one electronic file, such as a PDF, of any publications produced with traffic safety grant funds. The electronic file shall be maintained in the grant application within MGX. The OHSP will follow retention policies set out by the State of Michigan for all materials developed with state highway safety funds.

The items will remain the property of the OHSP and shall not be subject to copyright protection by the vendor or their agents. Items will be submitted to the OHSP immediately after production. The OHSP will hold the final grant reimbursement until all the above items have been submitted. The subrecipient, including all sub-subrecipients and contractors, shall not enter into an agreement that includes any time limits on rights for music, talent, artwork, or photography. The subrecipient, including all sub-subrecipients and contractors, shall inform all vendors, subcontractors, or their agents of this requirement before authorizing work to be performed.

All printed public information and education materials and videos are required to contain logos as designated by the OHSP, which are available in electronic formats upon request (see printing requirements below for more details). Publicly distributed materials, including audio, video, etc., shall include an OHSP disclosure. All materials, including audio and video materials and scripts, shall be submitted for review and approval by the OHSP prior to production.

All businesses performing printing services shall meet one of the following conditions:

•        Bear the label of the branch of the Allied Printing Trades Council of the locality in which it is printed;
•        Have on file 48 CFR Part 9, Subpart 9.4 with the Secretary of State, a sworn statement indicating that work is performed; or
•        Have a collective bargaining agreement in effect, formed by an organization that is not in any way influenced or controlled by management.

See the State of Michigan Procurement Policy Manual (MPPM) Chapter 1 Section 3.15 for information regarding the State Printing Act.

All videos, print photography, or graphics shall depict drivers and passengers to be properly restrained by seat belts or child passenger safety devices unless the lack of restraints is for demonstration or educational purposes. Helmets and other protective equipment shall be depicted for motorcyclists, motorcycle passengers, and bicyclists.

Messaging costs that are of a public relations nature and designed in whole or in part to promote either an individual or an agency are prohibited and not eligible for reimbursement.

The purchase of program advertising space on television, radio, magazines, newspapers, billboards, etc., shall be pre-approved by the OHSP on a case-by-case basis.

The following items require prior approval of the grant’s OHSP program coordinator: flyers; posters; brochures; training curriculum, excluding those developed by nationally approved agencies (e.g., the NHTSA, International Association of Chiefs of Police); annual reports; and newsletters.

Funding Requirement Statements

The following disclosures shall be placed on all public information and education materials within reasonable limitations of the platform across the following types of projects:

For research projects:

“This was prepared in cooperation with, and funding from, the Michigan Office of Highway Safety Planning (OHSP) and the United States Department of Transportation (USDOT), National Highway Traffic Safety Administration (NHTSA). The opinions, findings, and conclusions expressed are those of the author(s) and are not necessarily those of the Michigan OHSP or the USDOT NHTSA.”

For OHSP Internal Projects and Non-Research Projects:

“This material was developed through a project funded by the Michigan Office of Highway Safety Planning and the U.S. Department of Transportation, National Highway Traffic Safety Administration.”

Furthermore, there are specific requirements for acceptable use of linking to State of Michigan sites and resources. Entities and individuals linking to Michigan.gov shall not:

(1) capture Michigan.gov pages within frames;

(2) misinform users about the origin or ownership of Michigan.gov content;

(3) modify the content and present it as the content of Michigan.gov;

(4) portray any person, entity, or subject in a false or misleading light;

(5) imply that the state endorses your products or services; or

(6) violate any protected intellectual property rights to content on Michigan.gov.

For more information, visit Linking to Michigan.gov from External Websites.

Subrecipients and sub-subrecipients are not permitted to use the state’s Great Seal or Coat of Arms or any state department or agency logo for linking purposes.

Be aware that Michigan.gov and its subpages may change or be deleted at any time without notice. Subrecipients are solely responsible for the accuracy of their links.

Americans with Disabilities Act Compliance

To remain compliant with the Americans with Disabilities Act (ADA), subrecipients must comply with the below requirements:

•        The subrecipient will be required to comply with the highest level of ADA standards applicable to their agency.
•        If any subrecipient-produced materials are to be posted on the OHSP website, the materials must meet the State of Michigan’s ADA standards. For more information on the State of Michigan’s Digital Standards, visit Michigan.gov/som/digitalstandards.
•        Subrecipients must provide ADA-compliant versions of materials to the OHSP upon request.

The OHSP follows guidance set out by ADA Section 35.160.

Use of Artificial Intelligence

State of Michigan employees are prohibited from using Artificial Intelligence (AI) platforms for any and all sensitive information. Grant-funded products shall not be stored or continuously updated via AI platforms. AI may be used for one-time, static development of materials.

If a subrecipient intends to use AI in the production of any grant-funded public-facing informational and/or educational materials, they must provide their Program Coordinator with the details of how AI will be utilized. Subrecipients must guarantee that no copyrighted materials are used in the production of images and/or text for public-facing informational and/or educational deliverables.

Program Requirements

Progress reports and/or enforcement reports are required to be submitted throughout the grant period. The due dates for reports are specified in the grant approval letter and shall be submitted in the online grant management system. Progress reports shall describe activities undertaken to accomplish each project goal, the reason for non-activity, if necessary, activities planned for the next quarter, and obstacles encountered or anticipated. Progress reports shall be submitted and approved by the OHSP program coordinator for the OHSP to process financial reimbursement. For traffic safety enforcement projects, enforcement reports shall also be submitted in MGX for the OHSP to process and approve financial reimbursement. Non-compliance with any program requirements or special conditions may result in delay of reimbursement and/or grant termination.

Subrecipients can be called upon to return funds to OHSP if they receive their grant funds and are later determined to be out of compliance.

The final progress report is due on the date stated in the grant approval letter and shall include a summary of all activities and accomplishments for the entire grant period. The final report must include the following information:

•        A list of significant accomplishments or activities of this project that addressed the project objectives.
•        If no activity took place, an explanation shall be submitted stating as such and the reasons why.
•        If goals were not met, a statement shall be provided on why the goal was not achieved.
•        Any challenges encountered during the grant period.
•        Explanation of the overall impact the project had on the subrecipient’s community or jurisdiction.
•        Recommended supplemental documents and/or media materials, such as photos, that may support successful project activities and accomplishments.
  
  

  Out-of-state travel requires prior written approval from the OHSP Program Coordinator, Section Manager, and Division Director. The OHSP Subrecipient Out-of-State Travel Request form, located in MGX, and appropriate supporting documentation shall be submitted at least 30 days in advance of anticipated travel. Financial commitment (e.g., travel arrangements, conference fees, hotel reservations) shall not be made prior to the OHSP approval.

  If a project amendment is required, the subrecipient shall contact the OHSP program coordinator for prior approval.

  Subrecipients shall have written and established policies and procedures listed below, where applicable, as required by Title 2 of the Code of Federal Regulations 200, and where otherwise outlined in these requirements. Subrecipients shall meet the standards outlined in:

•        Procurement – 2 CFR 200.318 and 2 CFR 200.320
•        Salary and Wages – 2 CFR 200.430
•        Fringe Benefits – 2 CFR 200.431
•        Travel – 2 CFR 200.474
•        Internal Controls – 2 CFR 200.303
•        Contracting – 2 CFR 200.320 and 2 CFR 200.323
•        Indirect Costs – 2 CFR 200.414
•        Conflict of Interest – 2 CFR 200.112
•        Accounting/Finance – 2 CFR 200.302 and 2 CFR 200.400

Reporting Requirements

Three (3) types of reports for federal grant projects have specific deadlines within MGX:

•        Financial Status Reports (FSRs)
•        Progress Reports (PRs)
•        Enforcement Reports (ERs)

Delinquent Notices for Late Reports

First Delinquent/Late Notice

The OHSP Grants System Analyst will generate an email within three business days of a progress and financial reporting deadline via MGX Document Messages associated with the grant application. The recipients of the email will be the Agency Project Director, Agency Contact Person(s), and Agency Financial Officer (for FSRs only), with the OHSP Program Coordinator and OHSP Grant Monitor copied.

Second Delinquent/Late Notice

If there is no response or adequate information received by the deadline from the first notice, the OHSP Program Coordinator will generate the second delinquent notice from the MSP letterhead template within three business days of the deadline via MGX Document Messages associated with the grant application. They will include itemized details for what specifically is missing and is signed by the applicable OHSP Section Manager. The recipients of the email will be the Agency Project Director, Agency Contact Person(s), Agency Financial Officer, and the Agency Authorized Official, with the OHSP Program Coordinator, OHSP Grant Monitor, OHSP Financial Coordinator, OHSP Financial Manager, OHSP Grant Manager, and OHSP Planning Manager copied.

Final Notice – Grant Cancellation

If there is no response or adequate information received by the deadline from the second notice, the OHSP Program Coordinator will author the final notice canceling the grant project on MSP letterhead, within three business days of the deadline via MGX Document Messages associated with the grant application. The information will need to be very specific to the grant and signed by the OHSP Director. This letter will be sent to the Agency Project Director, Agency Contact Person(s), Agency Financial Officer, Agency Project Staff, and the Agency Authorized Official and OHSP reviewers.

For Overtime Traffic Enforcement Grants Only

•        The subrecipient officers working the OHSP federally funded overtime enforcement shall complete the Standardized Field Sobriety Testing (SFST) certification, be Michigan Commission on Law Enforcement Standards (MCOLES) certified and should complete other applicable impaired driving training. Law enforcement officers shall maintain their SFST certification refresher course every three years, when possible, to be eligible to conduct OHSP federally funded overtime. This does not apply to administrative staff hours billed to the grant.
•        All law enforcement officers participating in an OHSP grant-funded traffic enforcement detail shall wear a properly fastened seat belt in accordance with state law. Agencies found in violation of this requirement while working on a grant-funded detail may be ineligible for funding reimbursement from the OHSP.
•        Law enforcement agencies are encouraged to have a written vehicle pursuit policy in place.
•        Law enforcement agencies wanting to take part in elective overtime enforcement periods shall participate in all mandatory mobilizations for that category of enforcement.
•        Traffic enforcement activity data from a mandatory mobilization shall be submitted to the OHSP within five days of the conclusion of the enforcement period. Agencies shall use the enforcement report form in MGX. Elective traffic enforcement activity data shall be submitted at a minimum, quarterly.
•        The OHSP allows for up to five percent (5%) of the grant project budget to be utilized for administrative time.
•        Local Match Opportunities:
  •        Provide patrol vehicles and/or motorcycles where applicable. This will include fuel, maintenance, and proper police equipment.
  •        Assume liability incurred using volunteers, including but not limited to personal injury, civil liability, and workman’s compensation responsibility.
  •        Pay dispatchers and officer wages for training and court time.
  •        Attend meetings and/or media events as requested by OHSP.
•        Overtime law enforcement agencies that are not counties or local municipalities – Michigan State Police Districts – shall provide documentation that political subdivisions (law enforcement and prosecutors) were involved in identifying their traffic safety needs and provided input into the implementation of the grant activity.
•        Part-Time Officers: Refer to your agency’s allowability of part-time officers. Part-time officers may conduct overtime enforcement, but it must be overtime and not during their regular part-time hours.

•        Emergency response: The OHSP overtime traffic enforcement grant hours can only be claimed for the specific type of overtime enforcement and ancillary tasks for the enforcement that is being worked or approved within the OHSP grant. Examples of unallowable claims include response to calls for service, traffic control, property inspections, motorcades, dignitary protection, shoplifting/burglary calls, domestic disturbance, or other non-traffic safety related criminal investigation assistance. This is not a comprehensive list of examples but serves as a reference for the types of calls which are unallowable. Any other activities reported that deviate from the OHSP overtime traffic enforcement will not be allowed.

Other standards and restrictions that shall be adhered to by subrecipients and sub-subrecipients during overtime traffic enforcement include:

•        Traffic enforcement shifts shall be scheduled for a minimum of two consecutive hours.
•        Traffic enforcement efforts shall be promoted to the community.
•        As applicable, the subrecipient shall assist the OHSP with media events that will be conducted locally.
•        Banners or other signage provided by the OHSP shall be displayed during the enforcement period.
•        Traffic safety messages provided by the OHSP shall be posted on social media.
•        The subrecipient and the chief, sheriff, or post commander from each participating agency, shall sign the OHSP GMRs Acknowledgement and Agreement form and the NHTSA Certifications and Assurances form, signifying receipt and their agreement to comply as part of the online grant application process.
•        The subrecipient shall keep track of funds spent. In some cases, multiple funding sources are assigned to law enforcement grants. In these situations, the subrecipient shall assign, document, and monitor expenditures to each designated funding source separately. Separate accounts shall be established for each funding source. Each grant and federal funding source may not be used interchangeably. In the event the subrecipient overspends, the difference will need to be covered by the subrecipient. Additional funding shall not be provided to support overspending of any federal program.
•        Law enforcement agencies receiving funding for overtime traffic enforcement cannot offer compensation time in lieu of overtime pay.
•        Meal breaks — Refer to your agency’s meal break policy for allowability and allowed time spent on meal breaks on an overtime detail.
•        A daily activity log with a list of activities performed shall be completed for all time requested for reimbursement. It shall include the following information in the body of the officer daily to be acceptable documentation:
  •        The start and end times of the grant-funded enforcement detail.
  •        A brief description of every traffic stop.
  •        All grant time shall be accounted for and documented at a minimum of every hour, regardless of whether a traffic stop is made. This includes time spent on traffic stops, arrests, transporting and lodging of arrested subjects, report writing, and serving as “zone spotters.”
  •        Supervisor approval shall be documented electronically or in writing. If supervisor approval is given by means other than a signature on the daily, an explanation of the approval process shall be provided at the OHSP’s request and kept as grant documentation records.
•        Total personnel hours reported on the enforcement reports shall match the hours requested on the law enforcement reimbursement form and the FSR.
•        The time on the daily shall match the hours requested for reimbursement.

General Financial Requirements

Compliance with the Federal Funding Accountability and Transparency Act (FFATA) of 2006 is required. Signed into law on September 26, 2006, the FFATA provides the public with a single, searchable database of federal awards. The OHSP is responsible for reporting data into the FFATA database for each NHTSA award that equals or exceeds $30,000. The FFATA reporting procedure also requires that each subrecipient agency maintain current registration in the federal SAM at https://www.sam.gov and obtain their Unique Entity Identifier (UEI).

The following are financial requirements for the subrecipients:

Only program activities and expenses detailed in the approved grant application and incurred during the grant period are eligible for reimbursement. Expenses incurred that are not detailed in the approved grant budget or outside of the grant period shall not be reimbursed. Costs cannot EXCEED the approved grant award.

Goods purchased through the grant shall be received in acceptable condition. If goods are not received in acceptable condition within 30 days prior to the grant ending date, the subrecipient shall contact the OHSP program coordinator.

The subrecipient shall use generally accepted accounting principles.

Costs charged to this grant cannot be charged to any other program.

All costs shall be actual and supported by source documentation. Financial reimbursement will be delayed until all supporting documentation is received by the OHSP.

A separate account or fund shall be established for this project. A separate account is required to be maintained by all agencies receiving grant funds from the OHSP, regardless of the dollar amount. In addition, the subrecipient receiving funds from the OHSP for multiple grant projects shall have a separate account for each grant project and funding type. It is the responsibility of the lead agency to ensure all sub-agencies meet this requirement. The general ledgers of the sub-agencies are not required to be submitted with requests for payment unless specifically requested by the OHSP.

Costs reported on the Financial Status Report (FSR) shall match the agency’s separate account or fund that has been established for this project within the agency's accounting system. Financial documents shall be sufficient to permit the preparation of reports required by general and program-specific terms and conditions, and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award.

Comingling of funds on either a program-by-program or project-by-project basis is prohibited. The subrecipient’s accounting system shall maintain a clear audit trail for each source of funding for each fiscal budget period and include the following:

•        Separate accountability of receipts, expenditures, disbursements, and balances.
•        Itemized records supporting all grant receipts, expenditures, and match contributions in sufficient detail to show the exact nature of the activity.
•        Data and information for each expenditure and match contribution with a proper reference to be a supporting voucher or bill properly approved.
•        Maintenance of payroll authorization and vouchers.
•        Maintenance of records supporting charges of fringe benefits.
•        Maintenance of inventory records for equipment purchased, rented, and donated.
•        Maintenance of billing records for consumable supplies (e.g., paper, printing) purchased.
•        Provisions for payment by check.
•        Maintenance of travel records (e.g., mileage logs, parking, hotels, meal receipts).
•        Lease agreements, contracted services, and equipment purchases that adhere to established procurement processes.

  Costs shall be net of all applicable credits such as purchase discounts, rebates, or adjustments of overpayments, or erroneous charges.

  The following deviations from the approved budget require prior approval from the OHSP. Once approved, appropriate amendments will need to be made to the grant agreement in MGX.

•        A specific item of cost not included in the approved budget.
•        An increase in the number of specific items over and above the total authorized.
•        A transfer between major budget categories in excess of ten percent (10%) of the budget category title being increased. (Personnel Costs, Contractual Services, Supplies/Operating Costs, Travel, Equipment, and Indirect Costs – not the individual budget line-item titles.)

Procurement Methods:

•        Competition: The subrecipient shall conduct all procurement and contractual transactions, without regard to dollar value, to provide maximum, open, and free competition, which shall be assured through the distribution of an adequate number of proposal solicitations.
•        The subrecipients shall follow their competitive bid process, providing it is at least as restrictive as the processes required by https://www.law.cornell.edu/cfr/text/2/200.320 Title 2 of the CFR, the MPPM (State of Michigan Administrative Guide - 0510 Purchasing), and complies with the Buy America Act. The subrecipient agrees to ensure that minority business enterprises, as defined in 49 CFR Part 23, have the maximum opportunity to participate in the performance of contracts and subcontracts financed, in whole or in part, with funds provided under this agreement. The subrecipient shall document that multiple bids were sought in a competitive bidding process. When two or more responses are not received, the subrecipient shall indicate that the selected bid was the only response.
•        No employee or agent of the subrecipient shall participate and be supported by federal funds if a conflict of interest, real or apparent, is involved.
•        A copy of the subrecipient’s established procurement procedures shall be readily available for audit purposes upon request from the OHSP. Records shall sufficiently detail the procurement history for all purchases and should detail the rationale for the method of procurement and selection of contract type, written selection procedures, documented reasons for rejections, and the basis for the contract price.

Documentation for costs shall be maintained for three years following final reimbursement.

Any program income received shall be used exclusively to further traffic safety project activities. Program income is defined as gross income earned by the prospective primary participant from grant-supported activities. Some examples are proceeds from the sale of items purchased or developed with grant funds, or revenue received from attendees at trainings or conferences paid for with grant funds. Per the Office of Management and Budget requirements, program income shall be utilized as an addition to the federal funding amount awarded for grant projects. It cannot be used as a deduction unless prior approval is received by the NHTSA Regional Administrator. Program income amounts shall be recorded in the online grants management system. Contact the OHSP for further information.

Local match is non-federal, in-kind costs that the subrecipient contributes to the grant project. The FAST Act 405(h) Nonmotorized Safety grant funds and the IIJA 405(g) Nonmotorized Safety grant funds require a minimum twenty percent (20%) local match for the entire grant project cost. Local match costs shall be supported with documentation on FSRs. With prior approval from the OHSP, program income may be used to meet the cost-sharing or matching requirement of the federal award. For additional information on local match or “cost sharing,” reference 2 CFR 200.306.

General Cost of Business/General Cost of Government (formerly referred to as Supplanting): The replacement of routine and/or existing expenditures with the use of state or federal grant funds for costs of activities that constitute general expenses required to carry out the overall responsibilities of a state or local agency or other subrecipient is general cost of business and is not allowable.

All other financial management requirements are listed in Title 2 of the Code of Federal Regulations 200.302 (Financial Management).

Cost Reimbursement

All OHSP projects are based on the cost reimbursement concept, i.e., state, local, or private funds shall be expended before reimbursement is provided.

Reimbursement is based on the submission and approval of progress, enforcement, and financial reports. All requested information should be submitted electronically through MGX.A financial report submitted to the OHSP by the subrecipient shall contain the following to be considered complete:

•        Electronic signatures for the agency’s Financial Officer, Project Director, Authorizing Official, or employee(s)–this is shown through the status change in MGX.
•        A copy of a report for the current period generated by the subrecipient’s official accounting system, which shows a description of the item and the actual amount spent. Some examples of acceptable reports include a detailed general ledger, a transaction ledger, a payroll journal, or a detailed budget/expenditure report. The report shall match the amount being requested for reimbursement.
•        For overtime enforcement grants: officer names, dates, enforcement type, and amounts paid for each agency participating in grant-funded patrols. Overtime enforcement grants must provide the law enforcement reimbursement form.
•        For non-enforcement grants with personnel costs: activity logs as described in “Personnel Costs” under “Budget Cost Category Requirements.”
•        Copies of invoices or receipts shall be included when applicable.
•        Additional documentation as requested by the OHSP.

Financial reports are due, at a minimum, on a quarterly basis. Financial report due dates are specified in the grant approval letter. Financial reports shall be submitted even when the project experiences no costs. In this case, a "zero" financial status report shall be submitted. The submission of financial status reports is mandatory, and non-compliance can result in termination of the grant. Financial reports will be considered delinquent if not submitted by the due dates specified in the grant approval letter. The OHSP shall take all steps necessary to ensure that reimbursement payments are completed in a timely fashion. The OHSP authorizes the Michigan Department of Treasury to issue payments to subrecipients and vendors through the Statewide Integrated Governmental Management Applications system.

For other State of Michigan entities (e.g., Michigan State Police, Michigan Department of Transportation, Michigan Department of Health and Human Services), a Cost Accounting Receivable (CARE) document may not be submitted by the subrecipient for reimbursement. Instead, OHSP will prepare the CARE document to ensure accurate reimbursement of funds to the subrecipient. The OHSP may issue an exception to this requirement in writing if necessary.

The Project Director shall ensure that financial reports are submitted in compliance with reporting deadlines. If the financial report is submitted electronically without backup documentation, the report will be returned to the subrecipient for modifications to attach the appropriate backup documentation in MGX.

A delay in submitting supporting documentation may result in the suspension of all grant activity. Failure to submit cost statements with adequate supporting documentation prior to the fiscal year close-out deadline will result in non-reimbursement of those costs. Costs from one fiscal year cannot be paid in a subsequent fiscal year.

Audit Requirements

Required Audit – Subrecipients must submit to the Federal Audit Clearinghouse (FAC.gov) either a Single Audit, Financial Related Audit, or Audit Exemption Notice as described below. A Financial Related Audit is applicable to non-profit and not-for-profit subrecipients that are designated as subrecipients. If submitting a Single Audit or Financial Related Audit, subrecipients must provide explanations in writing for any audit findings that impact the OHSP-funded programs and submit a corrective action plan to address each finding on how they will correct the issues.

Single Audit – Subrecipients and sub-subrecipients that are a state, county/local government, or non-profit or not-for-profit organization that expend $1,000,000 or more in federal awards during the subrecipient’s and sub-subrecipient’s fiscal year, must submit a Single Audit to FAC.gov, regardless of the amount of funding received from the OHSP. The Single Audit must comply with the requirements of Title 2 of the Code of Federal Regulations, Part 200, Subpart F. The Single Audit reporting package must include all components described in Title 2 of the Code of Federal Regulations, Section 200.512(c).

Other Audits – The OHSP or federal agencies may also conduct or arrange for “agreed upon procedures” or additional audits to meet their needs.

Audit requirements do not apply to subrecipients that are for-profit organizations, per CFR 200.501(i).

Budget Cost Category Requirements

(Refer to the following for specific requirements of budget cost categories. Only requirements for cost categories contained within your approved grant budget apply.)

Personnel Costs

Includes itemized monthly or hourly salary rate. Fringe benefits are included within the Personnel Costs budget line.

Payments for salaries and wages shall be supported by a time and attendance report, based on an after-the-fact distribution of time, which shows details of the activities performed. All time and attendance reports shall be signed by the employee and supervisor. Electronic signatures are accepted. OHSP has a template time and attendance report which can be provided upon request.

Federal guidelines prohibit using federal grant funds to pay for routine and/or existing state or local expenditures.

If the grant contains personnel services as part of the award, a job description for each position listed in the budget shall be available to the OHSP upon request.

For Enforcement Grants

•        Law enforcement agencies participating shall collect officer dailies for overtime grant activities for file retention and submission upon OHSP request. Enforcement reports are due within five business days of the completion of a mandatory enforcement period, which will include a report of enforcement hours billed.
•        The rate of pay for grant-funded enforcement shall be determined according to the subrecipient contract or employment agreement. Overtime rates shall be applied consistently to all activities of an agency – higher rates may not be established just for federal grants

For Non-Enforcement Grants

•        The subrecipients shall maintain activity logs which document the actual amount of time spent on the grant project and describe the nature of the activities performed. If the grant is funded from multiple sources, the logs shall show the activity by fund source. This documentation shall be submitted with a financial reimbursement request.
•        Reimbursement for wages and fringe benefits shall be based on actual costs, NOT budgeted rates. Only those fringe benefits that increase because of hours worked on this project can be claimed for reimbursement. For overtime wages, those costs typically include Federal Insurance Contributions Act (FICA), workers' comp, and retirement. If any of these costs are structured so that they do not increase with overtime, they cannot be reimbursed. For straight-time grant-funded positions, all fringe benefits associated with the position may be claimed to the extent that the position has been approved for reimbursement (e.g., if 50 percent of the position is grant funded, 50 percent of the fringe benefits can be claimed). Fringe benefit rates shall be reasonable and in accordance with federal cost principles.

Agencies shall comply with all state labor laws.

Contractual Services

The subrecipient shall have a written and established contracting policy that it will utilize when engaging in contracting services. At a minimum, this policy should include cost or price analysis, bid vs. buy decision process, bid acquisition methods (typically a request for proposal process), and contractor monitoring. The contracting policy should follow Title 2 of the Code of Federal Regulations, Part 200.318, 200.321, 200.323, 200.326, 200.330, and Appendix II to Part 200.

In the event a contractor/funding recipient fails to comply with any nondiscrimination provisions in this contract/funding agreement, the OHSP will have the right to impose such contract/agreement sanctions as it or the NHTSA determine are appropriate, including but not limited to withholding payments to the contractor/funding recipient under the contract/agreement until the contractor/funding recipient complies; and/or cancelling, terminating, or suspending a contract or funding agreement, in whole or in part.

Contractual services are services of individual consultants or consulting firms engaged in performing special services pertinent to highway safety. Contracts are allowable, when necessary, to achieve the goals of the grant agreement. Costs are allowable for products, highway safety consultants, personal services, and/or individuals for support services, provided applicable state and local procurement procedures are followed and documentation is available that describes the official contract and procurement practices. Contracts and procurements shall include “special provisions” as provided by the OHSP. The subrecipient is responsible for verifying contractor eligibility by checking the National List of Parties Excluded from Federal Procurement and Non-Procurement Programs list available at www.govinfo.gov or adding a self-certification clause or condition to the contract.

All subrecipients awarding contracts or sub-contracts shall comply with the terms and conditions of the Code of Federal Regulations, Part 200.317. A signed copy of the contract, including the fully listed federal certifications and assurances, shall be provided to the OHSP upon completion and is required for processing and approval of financial reimbursement requests.

The subrecipient awarding is responsible for managing all contracts issued using the OHSP grant funds, including:

•        Ensuring the contractor complies with all contract provisions.
•        Ensuring services are performed according to the quality, quantity, objectives, timeframes, and manner specified in the contract.
•        Ensuring that all work is completed and accepted before the contract expires.
•        Assessing and requesting amendments, renewals, or new contracts as required, allowing sufficient time to process and execute these changes before the contract expires to prevent lapses in service.
•        Ensuring that contracts are amended after any grant agreement amendment that affects the contract terms.
•        Reviewing and approving invoices for payment, ensuring payments are made in accordance with contract terms, all costs are budgeted and allowable, and work has been performed.
•        Monitoring contract expenditures to ensure there are sufficient funds to pay for all services rendered as required by the contract.
•        Verifying all requirements of the contract are fulfilled before submitting the final invoice.
•        Ensuring that all Personnel Activity log requirements are met.

Special Provisions

The subrecipient awarding shall insert the following clauses in every solicitation for a subcontract or sub-agreement, contracts, and funding agreements which receive federal funds under this program.

During the performance of this contract/funding agreement, the contractor/funding recipient agrees:

•        To comply with all federal nondiscrimination laws and regulations, as may be amended from time to time.
•        Not to participate directly or indirectly in the discrimination prohibited by any federal non-discrimination law or regulation, as set forth in Appendix B of 49 CFR Part 2 and herein.
•        To permit access to its books, records, accounts, other sources of information, and its facilities as required by the OHSP, the US DOT, or the NHTSA.
•        That, in the event a contractor/funding recipient fails to comply with any nondiscrimination provisions in this contract/funding agreement, the OHSP will have the right to impose such contract/agreement sanctions as it or the NHTSA determine are appropriate, including but not limited to withholding payments to the contractor/funding recipient under the contract/agreement until the contractor/funding recipient complies; and/or cancelling, terminating, or suspending a contract or funding agreement, in whole or in part.

Domestic preferences for procurements

In accordance with 2 CFR 200.322, the state and the vendor should, to the greatest extent practicable and consistent with law, provide a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including but not limited to iron, aluminum, steel, cement, and other manufactured products). The requirements of this section shall be included in all subawards, contracts, and purchase orders under federal awards. “Produced in the United States” means, for iron and steel products, that all manufacturing processes, from the initial melting stage through the application of coatings, occurred in the United States. “Manufactured products” means items and construction materials composed in whole or in part of non-ferrous metals such as aluminum; plastics and polymer-based products such as polyvinyl chloride pipe; aggregates such as concrete; glass, including optical fiber; and lumber.

Prohibition on certain telecommunications and video surveillance equipment or services.

In accordance with 2 CFR 200.216, the state and the vendor are prohibited from obligating or expending loan or grant funds to procure or obtain covered telecommunications equipment or services; extend or renew a contract to procure or obtain covered telecommunications equipment or services; or enter into a contract (or extend or renew a contract) to procure or obtain covered telecommunications equipment or services. As described in Section 889 of Public Law 115-232, “covered telecommunications equipment or services” means telecommunications equipment produced by Huawei Technologies Company or ZTE Corporation (or any subsidiary or affiliate of such entities); for the purpose of public safety, security of government facilities, physical security surveillance of critical infrastructure, and other national security purposes, video surveillance and telecommunications equipment produced by Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company, or Dahua Technology Company (or any subsidiary or affiliate of such entities); telecommunications or video surveillance services provided by such entities or using such equipment; telecommunications or video surveillance equipment or services produced or provided by an entity that the Secretary of Defense, in consultation with the Director of the National Intelligence or the Director of the Federal Bureau of Investigation, reasonably believes to be an entity owned or controlled by, or otherwise connected to, the government of a covered foreign country; and systems that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system.

In implementing the prohibition under Section 889 of Public Law 115-232, heads of executive agencies administering loan, grant, or subsidy programs shall prioritize available funding and technical support to assist affected businesses, institutions, and organizations as is reasonably necessary for those affected entities to transition from covered telecommunications equipment or services, to procure replacement equipment or services, and to ensure that communications service to users and customers is sustained. When the recipient or subrecipient accepts a loan or grant, it is certifying that it will comply with the prohibition on covered telecommunications equipment and services in this section. The recipient or subrecipient is not required to certify that funds will not be expended on covered telecommunications equipment or services beyond the certification provided upon accepting the loan or grant and those provided upon submitting payment requests and financial reports. For additional information, see Section 889 of Public Law 115-232 and § 200.471.

Operating Costs (Supplies & Operating)

Only eligible operating costs specifically listed in the approved grant budget will be reimbursed. These are costs not covered under other budget categories, including services not requiring contractual agreements and minor items such as laptops, conferences, membership fees and dues, office supplies, printing, and educational materials.

Automotive expenses submitted shall be based on actual costs incurred, that is, the actual miles driven multiplied by the current Internal Revenue Service (IRS) business mileage rate. With prior approval, reimbursement may be allowed based on the actual costs incurred for gasoline, maintenance, insurance, and other vehicle expenses.

Postage, telephone, and grant-related travel costs shall be documented by log or meter and submitted with the reimbursement request.

Training or conference registration costs should be included as Operating Costs, separate from the costs associated with traveling to such events.

Travel Costs and Reimbusement of Travel Costs

Travel Costs

Out-of-state travel funded by federal grant funds requires prior written approval by the OHSP Program Coordinator and/or the Division Director. A written request shall be submitted on the form provided in MGX. Requests shall be submitted at least 30 days in advance of anticipated travel. Financial commitment (e.g., travel arrangements, conference fees, hotel reservations) shall not be made prior to the OHSP approval.

Reimbursement of Travel Costs

The subrecipient will be reimbursed for approved travel costs (including mileage, meals, and lodging) budgeted and incurred related to services provided under this agreement. The subrecipient will follow all established and documented Travel Policies. These Travel Policies shall be in existence in advance of any budgeted and approved travel.

Reimbursements for travel (meals, lodging, mileage, etc.) cannot exceed the lesser of the subrecipient’s published travel rates or the allowable State of Michigan travel rates. Exceptions require the OHSP’s approval during the grant application process. Subrecipients requesting an exception shall attach their organization’s travel policy when the grant application is submitted. The policy shall be applicable to all organizational travel. Policies will be reviewed by the OHSP Fiscal Manager for approval and cannot exceed the current federal travel reimbursement ratio.

The SOM travel rates may be found at the following website: https://www.michigan.gov/dtmb/services/travel.

Equipment - Includes Software

All equipment purchases with the NHTSA funds shall comply with the Buy America Act requirements before costs are reimbursed. Refer to section eleven under the heading Grant Management Requirements for specific terms of the Buy America Act: 34 CFR 75.615.

All equipment of $10,000 or more per unit, and any software purchase requests of the same dollar amount, require pre-approval from the NHTSA before purchase. This approval may come after the grant award and/or the start of the fiscal year.

For additional information on the federal definition of equipment, see 23 CFR 1300.31.

Items purchased for direct use by an agency or contractor (rather than for public distribution) over $10,000 per unit are categorized as equipment. Reference the federal law definition at 23 CFR 1300.31. Equipment is closely tracked pertaining to both federal and state regulations based on value and usable life.

Equipment is eligible for reimbursement as a direct expense chargeable to a specific project agreement, provided the equipment is needed to perform that project. A project for which equipment is needed shall be based on the identification of a specific safety problem in Michigan. No project may be created solely to purchase equipment. Proposed equipment purchases must be included in the application. All equipment requires pre-approval from the NHTSA before purchase. This approval may come after the start of the fiscal year.

The OHSP maintains an equipment log to track equipment purchased with federal funds based on use and value. When a subrecipient or sub-subrecipient needs to dispose of equipment, the OHSP Program Coordinator shall be contacted immediately, and the appropriate disposal policy shall be followed. Specific attention shall be given to the disposal of equipment that is still within its useful life.

Only eligible equipment specifically listed in the equipment section of the approved grant budget will be reimbursed. Equipment costs shall be reimbursed according to the match requirements as specified in the approved grant budget.

Equipment purchases shall be completed within the time specified in the approved grant. "Completed” means bids were solicited, accepted, and items have been ordered, received, and paid for during the grant period. If there is a reason the subrecipient is unable to meet this requirement, the OHSP Program Coordinator shall be contacted immediately.

Equipment purchased through this grant shall be used only for highway safety activities throughout its useful life, regardless of whether the project or program continues to be supported by the federal award.

Equipment with a cost of $10,000 or more shall be tracked by the subrecipient for inventory control purposes. In addition, the OHSP Equipment Record System Form with all applicable information completed shall be submitted with the prospective participant’s or subrecipient’s reimbursement request. The subrecipient shall make the equipment item available for physical review by the OHSP staff when requested.

The State of Michigan Financial Management Guide can be provided upon request by the OHSP.

Direct Cost Allocation Principles

If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost shall be allocated to the projects based on the proportional benefit. If a cost benefits two or more projects or activities in proportions that cannot be determined because of the interrelationship of the work involved, the costs may be allocated or transferred to the benefited projects on any reasonable documented basis. Where the purchase of equipment or other capital assets is specifically authorized under a federal award, the costs are assignable to the federal award regardless of the use that may be made of the equipment or other capital assets involved when no longer needed for the purpose for which it was originally required.

Disposition of Equipment

If the equipment is to be disposed of or ceases to be used for highway safety activities, the subrecipient is required to contact the OHSP prior to such disposition action. The OHSP will use the State of Michigan Asset Disposal process which may require the asset(s) be returned to the state for sale, salvage, scrap, transfer, or destruction. The OHSP reserves the right to follow 2 CFR 200.313(e) Disposition. This section gives the awarding agency the right to transfer the property to another subrecipient who could utilize the equipment for their grant-related project. If no subrecipient can be found, the OHSP will contact the NHTSA for disposition instructions as the NHTSA could transfer the property to another state for utilization of the equipment.

The OHSP may allow the holder of the equipment to retain title to the equipment and reimburse the federal or state share of the fair market value of such equipment. The current fair market value shall be determined as follows:

•        Appraisal by an independent source with expertise in the valuation of similar items is the preferred method of valuation for equipment;
•        For vehicles, Kelley Blue Book, National Automobile Dealers Association (NADA) Guides, or a similar third-party vehicle valuation service may be used when valuing the condition of the vehicle; or

Collection of Unallowable Costs

Payments made for costs determined to be unallowable by either the federal awarding agency, cognizant agency for indirect costs, or pass-through entity, either as direct or indirect costs, shall be refunded (including interest) to the Federal Government in accordance with instructions from the federal agency that determined the costs are unallowable unless federal statute or regulation directs otherwise. See also Subpart D—Post Federal Award Requirements of this part, and Part 200.300 Statutory and National Policy Requirements through 200.309 Period of Performance.

Indirect Costs

The Subrecipient’s federally approved negotiated indirect cost rate may be used for traffic safety grants as applicable.

Title 2 CFR Part 200 provides guidance on indirect costs for subrecipients without a federally negotiated indirect rate as follows:

•        Section 200.414 Indirect (F&A) Cost -(F): In addition to the procedures outlined in the appendices in paragraph (e) of this section, any non-federal entity that has not negotiated an indirect cost rate, except for those non-federal entities described in Appendix VII to Part 200—States and Local Government and Indian Tribe Indirect Cost Proposals, paragraph D.1.b, may elect to charge a de minimis rate of fifteen percent (15%) of modified total direct costs (MTDC) which may be used indefinitely. As described in §200.403, factors affecting allowability of costs, costs shall be consistently charged as either indirect or direct costs but may not be double-charged or inconsistently charged as both. If chosen, this methodology, once elected, shall be used consistently for all federal awards until such time as a non-federal entity chooses to negotiate for a rate, which the non-federal entity may apply to do at any time.

Additionally, 2 CFR Part 200 allows for multiple allocation base methods or direct allocation methods related to MTDC. Contact the OHSP fiscal staff for further inquiries.

Termination

The OHSP retains the right to terminate a grant for failure to meet the grant management requirements or for not satisfying project goals or objectives, which will be decided by an OHSP management review. When a grant is terminated by the OHSP, the subrecipient shall not be eligible to seek grant funding for a period of two fiscal years. To obtain a grant after the two fiscal year period, the subrecipient will be required to submit written assurance that the identified deficiencies have been corrected. Additionally, the agency may be required to submit monthly enforcement, progress, and/or financial reports to allow for increased financial monitoring. If a grant is terminated, the OHSP reserves the right to call for funds disbursed for the current fiscal year to be returned by the subrecipient and its lower tier subrecipients.

Mandatory Disclosures

The subrecipient shall disclose to the OHSP in writing within 10 business days of receiving notice of any litigation, investigation, arbitration, or other proceeding (collectively, “proceeding”) involving subrecipient, a subcontractor, or an officer or director of subrecipient or subcontractor, or that arises involving these federal funds:

•        All violations of federal and state criminal law involving fraud, bribery, or gratuity violations potentially affecting the agreement.
•        A criminal proceeding.
•        A parole or probation proceeding.
•        A proceeding under the Sarbanes-Oxley Act.
•        A civil proceeding involving a claim that might reasonably be expected to adversely affect the subrecipient’s viability or financial stability.
•        A governmental or public entity’s claim or written allegation of fraud.

Other significant instances of fraud or abuse that are unrelated to this federal grant-funded project should also be disclosed to the OHSP within 90 days of awareness of an event or situation.

References

Statutes

•        Highway Safety Act of 1966: 23 U.S.C. Chapter 4.

Rules

•        The rules that govern the Highway Safety Grant programs are available at: Part 1300 – Uniform procedures for state highway safety grant programs.
•        Title 2: Grants and agreements Part 200 (2 CFR 200) Uniform administrative requirements, cost principles, and audit requirements for federal awards.
•        Federal Electronic Code of Regulations.
•        NHTSA allowable and unallowable costs.
•        NHTSA Highway Safety Grants Program Resource Guide.