FY23 LIBRARY ARPA NON-RECURRING STATE AID
NON-STATE ENTITY AWARD AGREEMENT
For Award 247 State Aid to Public Libraries
2000057929
US Treasury Expenditure Category: 6.1 Revenue Replacement
This AWARD AGREEMENT, entered into on the undersigned date by and between the Department of Natural and Cultural
Resources (the Agency), State Library of North Carolina and New Hanover County Public Library (Grantee) (federal tax
identification number 56-6000324-25), is for the use of certain federal financial assistance as appropriated by the State Budget
Act of 2021 (SL 2021-180, as amended by SL 2021-189). These federal funds are to be spent on government services, and the
State Budget Act has appropriated the funds as state financial assistance to the Grantee as described in legislation. The Agency
and the Grantee are referred to collectively as “the Parties” in this Award Agreement. This Award Agreement identifies and
acknowledges the Parties’ respective major federal and state powers, obligations, and duties in managing and reporting on the
funds described. The Parties hereto agree as follows:
SECTION 1.
General Information
1.1 Award Agreement Table of Contents.
SECTION 1. General
Information
1.1 Award Agreement Table of Contents.
1.2 Federal Award Identification Table of References.
1.3 Definitions.
1.4 General Terms and Conditions.
1.5 Authorization.
1.6 Administering Offices.
1.7 Conflict between State and Federal Appropriation.
1.8 Disbursement Schedule.
1.9 Amount and Purpose of State Award.
1.10 Period of Performance.
1.11 Nonreverting Appropriation.
1.12 Recipient, Subrecipient, or Beneficiary.
SECTION 2. Federal
Requirements
2.1 Federal Award Terms and Conditions.
2.2 FFATA Required Executive Compensation Information.
2.3 FFATA Reporting on Grants and Contracts over $50,000.
SECTION 3. State
Requirements
3.1 State Administrative Code Requirements.
3.2 Disbursement Requests.
3.3 Financial Reporting.
3.4 Performance Reporting.
SECTION 4. Monitoring
Plan
4.1 Monitoring Plan.
SECTION 5. Closeout
5.1 Closeout.
SECTION 6. Signatures 6 Signatures.
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ADDENDA
Attachment A. Project Plan/Scope of Work/Description of Services.
Attachment B. Line-Item Budget.
Attachment C. Notice of Certain Reporting and Audit Requirements
Attachment D. No Overdue Tax Debts Form
1.2. Federal Award Identification Table of References.
State Award Name:
State Fiscal Recovery Funds
PANGRAM Agreement Number 2000057929 Assistance Listing Number
21.027
FEDERAL AWARD IDENTIFICATION (2 CFR 200.332(a)(1))
Recipient Name New Hanover County Public Library
Award Period of Performance Start
and End Dates
To cover eligible costs incurred beginning March 3, 2021, and ending with
costs incurred or obligated by December 31, 2024, expended by
December 31, 2026.
Federal Award Terms and Conditions https://home.treasury.gov/system/files/136/Financial-Assistance-
Agreement-States-and-Territories.pdf
Amount of Federal Funds Obligated
to This Project from this Award
$120,587
DNCR Contact Information Josh Davis, Chief Financial Officer
109 East Jones Street
4605 Mail Service Center
Raleigh NC 27699-4605
(919)814-6725
joshua.davis@ncdcr.gov
Project Contact Information and
Representative for Notices
Susan Forbes
Assistant State Librarian
State Library of North Carolina
4640 Mail Service Center
Raleigh, NC 27699
(919) 814-6786
susan.forbes@ncdcr.gov
1.3 Definitions. Except as otherwise provided in the Award Agreement documents, the
terms below shall have the following meanings in this Award Agreement:
"Agency" means the North Carolina Department of Natural and Cultural Resources.
"Audit" means an examination of records or financial accounts to verify their accuracy.
"Award Agreement" means a legal instrument that is used to document a relationship between the
Agency and the Grantee.
"Certification of Compliance" means a report provided by the Grantee to the Agency that states that
the Grantee has met the reporting requirements established by this Award Agreement and included
as a statement of certification by the Agency as part of the Grantee reporting package.
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"Compliance Supplement" refers to the North Carolina State Compliance Supplement, maintained
by the State and Local Government Finance Agency within the North Carolina Department of State
Treasurer that has been developed in cooperation with agencies to assist the local auditor in
identifying program compliance requirements and audit procedures for testing those requirements.
"Fiscal Year" means the annual operating year of the non-state entity.
"Financial Statement" means a report providing financial statistics relative to a given part of an
organization's operations or status.
"Grant" means financial assistance provided by a state agency to an eligible grantee to carry out
activities identified in the Award Agreement.
“Grantee” means an entity that receives State financial assistance.
"Non-State Entity" has the meaning in G.S. 143C-1-1(d)(18).
"Single Audit" means an audit that includes an examination of an organization's financial statements,
internal controls, and compliance with the requirements of federal or state awards.
“State financial assistance" means state funds disbursed as a grant, cooperative agreement, non-
cash contribution, food commodities, or direct appropriation to a grantee or subrecipient as defined
in this Award Agreement.
"Special Appropriation" means a legislative act authorizing the expenditure of a designated amount
of public funds for a specific purpose.
“State Funds" means any funds appropriated by the North Carolina General Assembly or collected
by the State of North Carolina. State funds include federal financial assistance received by the State
and transferred or disbursed to non-state entities. Both federal and state funds maintain their identity
as they are disbursed as financial assistance to other organizations.
"Subrecipient" means a non-state entity that receives state financial assistance from a Grantee to
carry out part of a state program; but does not include an individual that is a beneficiary of such
program.
1.4 General Terms and Conditions
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1.4.1 Choice of Law: The validity of this Award Agreement and any of its terms or provisions,
as well as the rights and duties of the Parties to this Award Agreement, are governed by the
laws of North Carolina. The Grantee, by signing this Award Agreement, agrees and submits,
solely for matters concerning this Award Agreement, to the exclusive jurisdiction of the courts of
North Carolina and agrees, solely for such purpose, that the exclusive venue for any legal
proceedings shall be Wake County, North Carolina. The place of this Award Agreement and all
transactions and agreements relating to it, and their situs and forum, shall be Wake County,
North Carolina, where all matters, whether sounding in contract or tort, relating to the validity,
construction, interpretation, and enforcement shall be determined.
1.4.2 Grantee’s Duties: The Grantee shall submit to the Agency the “REQUEST FOR
PAYMENT OF APPROPRIATION(S) FROM NORTH CAROLINA GENERAL FUND” form,
including the required enclosures.
The Grantee shall provide the services as described in Attachment A, Project Plan/Scope of
Work/Description of Services and in accordance with the approved budget in Attachment B. The
Grantee may make line-item adjustments of less than ten percent (10%) for budgeted
expenditures without prior approval from the Agency, except if the adjustment would exceed the
total award amount. For line-item adjustments of ten percent (10%) or more for budgeted
expenditures, the Grantee shall submit a written request for approval to the Agency and include
a justification for the adjustment. Line-item adjustments requiring approval shall be effective only
upon a dually executed amendment between the parties, in accordance with Section 1.4.21 of
this Agreement. Amendments executed under this Paragraph shall include the new line-item
adjustment(s) (Attachment B) and any changes in the Project Plan/Scope of Work/Description
of Services (Attachment A) related to the duties and services affected by the line-item
adjustment. An amendment that fails to comply with the requirements of this Paragraph shall
not be binding upon the parties. A violation of this Paragraph shall constitute a material breach
and shall entitle the non-breaching party to all rights and actions available to it under the law.
1.4.3 Agency Duties: Grants shall be paid at the direction of the Director of State Budget. The
total amount paid by the Agency to the Grantee under this Award Agreement is $120,587. Grants
of $100,000 or more to or for the use of the Grantee shall be made in quarterly or monthly
payments, in the discretion of the Director of State Budget. Grants of less than $100,000 may
be made in one single payment. The Agency may provide monitoring and oversight through a
combination of periodic e-mails, calls, visits, and review of reports, invoices, and deliverables.
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1.4.4 Independent Contractor: The Grantee is and shall be deemed to be an independent
contractor in the performance of this Award Agreement and as such shall be wholly responsible
for the work to be performed and for the supervision of its employees. The Grantee represents
that it has, or shall secure at its own expense, all personnel required in performing the services
under this Award Agreement. Such employees shall not be employees of, or have any individual
contractual relationship with, the Agency.
1.4.5 Key Personnel: The Grantee shall not substitute key personnel assigned to the
performance of this Award Agreement without prior written approval by the Agency’s Contract
Administrator. The individuals designated as key personnel are those specified in Section 1.2 of
this Award Agreement.
1.4.6 Assignment: No assignment of the Grantee's obligations or the Grantee's right to receive
payment hereunder shall be permitted. However, upon written request approved by the Agency,
the Agency may:
a. Forward the Grantee's payment check(s) directly to any person or entity designated by the
Grantee, or
b. Include any person or entity designated by Grantee as a joint payee on the Grantee's
payment check(s). In no event shall such approval and action obligate the Agency to anyone
other than the Grantee and the Grantee shall remain responsible for fulfillment of all contract
obligations.
1.4.7 Beneficiaries: Except as otherwise provided herein, this Award Agreement shall inure to
the benefit of and be binding upon the Parties hereto and their respective successors. It is
expressly understood and agreed that the enforcement of the terms and conditions of this Award
Agreement, and all rights of action relating to such enforcement, shall be strictly reserved to the
Agency and the named Grantee. Nothing contained in this document shall give or allow any
claim or right of action whatsoever by any other third person. It is the express intention of the
Agency and Grantee that any such person or entity, other than the Agency or the Grantee,
receiving services or benefits under this Award Agreement shall be deemed an incidental
beneficiary only.
1.4.8 Indemnification: The Grantee shall hold and save the State, its officers, agents, and
employees, harmless from liability of any kind, including all claims and losses accruing or
resulting to any other person, firm, or corporation furnishing or supplying work, services,
materials, or supplies in connection with the performance of this Award Agreement, and from
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any and all claims and losses accruing or resulting to any person, firm, or corporation that may
be injured or damaged by the Grantee in the performance of this Award Agreement and that are
attributable to the negligence or intentionally tortious acts of the Grantee.
1.4.9 Termination by Mutual Consent: The Parties may terminate this Award Agreement t by
mutual consent with 60 days’ written notice to the other Party, or as otherwise provided by law.
In that event, all finished or unfinished deliverable items prepared by the Grantee under this
Award Agreement shall, at the option of the Agency, become its property. If the Award
Agreement is terminated by the Agency as provided herein, the Grantee shall be paid for
services satisfactorily completed, less payment or compensation previously made. Unexpended
funds held by the Grantee shall revert to the Agency upon termination of this Award Agreement.
1.4.10 Termination for Cause: If, through any cause, the Grantee shall fail to fulfill its
obligations under this Award Agreement in a timely and proper manner, the Agency shall have
the right to terminate this Award Agreement by giving written notice to the Grantee and specifying
the effective date thereof. Unexpended funds held by the Grantee shall revert to the Agency
upon termination of this Award Agreement. In that event, all finished or unfinished deliverable
items prepared by the Grantee under this Award Agreement shall, at the option of the Agency,
become its property and the Grantee shall be entitled to receive just and equitable compensation
for any satisfactory work completed on such materials, minus any payment or compensation
previously made. Notwithstanding the foregoing provision, the Grantee shall not be relieved of
liability to the Agency for damages sustained by the Agency by virtue of the Grantee’s breach of
this Award Agreement, and the Agency may withhold any payment due the Grantee for the
purpose of setoff until such time as the exact amount of damages due the Agency from such
breach can be determined.
In case of default by the Grantee, the State may procure the services from other sources and
hold the Grantee responsible for any excess cost occasioned thereby. The State reserves the
right to require a performance bond or other acceptable alternative performance guarantees from
successful offeror without expense to the State.
In addition, in the event of default by the Grantee under this Award Agreement, the State may
immediately cease doing business with the Grantee, immediately terminate for cause all existing
contracts the State has with the Grantee, and de-bar the Grantee from doing future business
with the State.
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Upon the Grantee filing a petition for bankruptcy or the entering of a judgment of bankruptcy by
or against the Grantee, the State may immediately terminate, for cause, this Award Agreement
and all other existing contracts the Grantee has with the State, and de-bar the Grantee from
doing future business.
1.4.11 Waiver of Default: Waiver by the Agency of any default or breach in compliance with
the terms of this Award Agreement by the Grantee shall not be deemed a waiver of any
subsequent default or breach and shall not be construed to be modification of the terms of this
Award Agreement unless stated to be such in writing, signed by an authorized representative of
the Agency and the Grantee and attached to the Award Agreement.
1.4.12 Availability of Funds: The Parties to this Award Agreement agree and understand that
the payment of the sums specified in this Award Agreement is dependent and contingent upon
and subject to the appropriation, allocation, and availability of funds for this purpose to the
Agency.
1.4.13 Force Majeure: Neither Party shall be deemed to be in default of its obligations
hereunder if and so long as it is prevented from performing such obligations by any act of war,
hostile foreign action, nuclear explosion, riot, strikes, civil insurrection, earthquake, hurricane,
tornado, or other catastrophic natural event or act of God.
1.4.14 Survival of Promises: Except as otherwise provided herein or unless superseded by
applicable federal or state statute of limitations, all promises, indemnifications, requirements,
terms, conditions, provisions, representations, guarantees, and warranties contained herein
shall survive the Award Agreement expiration or termination date.
1.4.15 Copyrights and Ownership of Deliverables: All deliverable items produced pursuant
to this Award Agreement are the exclusive property of the Agency. The Grantee shall not assert
a claim of copyright or other property interest in such deliverables.
1.4.16 Federal Intellectual Property Bankruptcy Protection Act: The Parties agree that the
Agency shall be entitled to all rights and benefits of the Federal Intellectual Property Bankruptcy
Protection Act, Public Law 100-506, codified at 11 U.S.C. 365 (n) and any amendments thereto.
1.4.17 Compliance with Laws: The Grantee shall comply with all laws, ordinances, codes,
rules, regulations, and licensing requirements that are applicable to the conduct of its business,
including those of federal, state, and local agencies having jurisdiction and/or authority.
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1.4.18 Equal Employment Opportunity: The Grantee shall comply with all federal and state
laws relating to equal employment opportunity. The Grantee shall take affirmative action in
complying with all federal and state requirements concerning fair employment and employment
of people with disabilities and concerning the treatment of all employees without regard to
discrimination by reason of race, color, religion, sex, national origin, or disability. By signing this
Agreement, the Grantee certifies its compliance with Title VI Civil Rights laws, and that it will
cooperate in demonstrating compliance as may be required by the US Treasury. Further
information on North Carolina’s duties may be found in Treasury’s implementing regulations, 31
CFR part 22, and the Department of Justice (DOJ) regulations, Coordination of Non-
discrimination in Federally Assisted Programs, 28 CFR part 42, provide for the collection of data
and information from recipients (see 28 CFR 42.406).
1.4.19 Access to Persons and Records: The State Auditor and the Agency Internal Auditors
shall have access to persons and records as a result of all contracts or grants entered into by
state agencies or political subdivisions in accordance with N.C.G.S §. 147-64.7. Additionally, as
the state funding authority, the Agency shall have access to persons and records as a result of
all contracts or grants entered into by state agencies or political subdivisions.
1.4.20 Record Retention: The Grantee may be required to maintain records for at least five
years after the completion of the last project across the entire set of SFRF projects funded by
North Carolina’s SFRF Award. There are differences in the record retention periods required by
federal and state regulations. Under the federal Award Terms and Conditions for SFRF, records
must be retained for a period of the longer of five years after all funds have been expended or
returned to Treasury. Generally, records of state assistance to grantees (grantees of the funds
in this Agreement) covered by 09 NCAC 03M .0703 must be retained for the longer of five years
or until all audit exceptions have been resolved as measured on an individual grant basis.
Because SFRF is a single federal award, it may be necessary to keep records of all project
expenditures, including record-keeping by grantees, until the longest of the timelines finishes.
Therefore, the Grantee should seek specific written authorization from the Agency for
destruction of any records prior to five years after all funds have been expended or returned to
Treasury.
1.4.21 Amendment: This Award Agreement may not be amended orally or by performance.
Any significant amendments to the plan or budget as described in Section 3.1 shall be made in
writing on a form prepared by the Agency and duly executed by an authorized representative of
the Agency and the Grantee.
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1.4.22 Severability: In the event that a court of competent jurisdiction holds that a provision or
requirement of this Award Agreement violates any applicable law, each such provision or
requirement shall continue to be enforced to the extent it is not in violation of law or is not
otherwise unenforceable and all other provisions and requirements of this Award Agreement
shall remain in full force and effect.
1.4.23 Headings: The Section and Paragraph headings in these General Terms and Conditions
are not material parts of the Award Agreement and should not be used to construe the meaning
of any text or content thereof.
1.4.24 Certification Regarding Collection of Taxes: N.C.G.S. § 143-59.1 bars the Secretary
of Administration from entering into contracts with vendors that meet one of the conditions of
N.C.G.S. § 105-164.8(b) and yet refuse to collect use taxes on sales of tangible personal
property to purchasers in North Carolina. The conditions include: (a) maintenance of a retail
establishment or office; (b) presence of representatives in the State that solicit sales or transact
business on behalf of the vendor; and (c) systematic exploitation of the market by media-
assisted, media-facilitated, or media-solicited means. The Grantee certifies that it and all its
affiliates (if any) collect all required federal, state, and local taxes.
1.4.25 Sales/Use Tax Refunds: If eligible, the Grantee and all subrecipients shall: (a) ask the
North Carolina Department of Revenue for a refund of all sales and use taxes paid by them in
the performance of this Award Agreement, pursuant to N.C.G.S. § 105-164.14; and (b) exclude
all refundable sales and use taxes from all reportable expenditures before the expenses are
entered in their reimbursement reports.
1.4.26 Travel Expenses: Travel expenses shall not be reimbursed in the performance of this
Award Agreement. If travel is necessary in the performance of this Award Agreement, it shall be
included in the approved project budget and narrative.
1.4.27 Entire Agreement: This Award Agreement and any documents incorporated specifically
by reference represent the entire agreement between the Parties and supersede all prior oral or
written statements or agreements. This Award Agreement and any addenda thereto, are
incorporated herein by reference as though set forth verbatim. All promises, requirements,
terms, conditions, provisions, representations, guarantees, and warranties contained herein
shall survive the Award Agreement expiration or termination date unless specifically provided
otherwise herein, or unless superseded by applicable federal or state statutes of limitation.
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1.4.28 Gifts or Favors: By N.C.G.S. §133-32, it is unlawful for any vendor or contractor (i.e.,
architect, bidder, contractor, construction manager, design professional, engineer, landlord,
offeror, seller, subcontractor, supplier, or vendor) to make gifts or to give favors to any state
employee of the Governor’s cabinet agencies. This prohibition covers those vendors and
contractors who:
(1) have a contract with a government agency; or
(2) have performed under such a contract within the past year; or
(3) anticipate bidding on such a contract in the future.
The requirements of N.C.G.S. § 133-32 are hereby incorporated by reference, including
any subsequent amendments thereto, and shall apply to all vendors and subcontractors
under this Award Agreement.
1.4.29 Effective Period: This Award Agreement shall be effective upon signature by all Parties
to this Award Agreement and shall terminate upon final expenditure of all funds and submission
of all reports as required by law.
1.4.30 Conflict of Interest Policy: Grantees shall have on file with the Agency a copy of the
Grantee's policy addressing conflicts of interest that may arise involving the Grantee's
management, employees, and the members of its governing body as set forth in N.C.G.S. §
143C-6-23(b). The policy shall address situations in which any of these individuals may directly
or indirectly benefit, except as the Grantee's employees or members of its board or other
governing body, from the Grantee's disbursing of state funds and shall include actions to be
taken by the Grantee or the individual, or both to avoid conflicts of interest and the appearance
of impropriety. The policy shall be filed before Agency may disburse the grant funds.
1.4.31 Statement of No Overdue Tax Debts: The Grantee’s sworn written statement pursuant
to N.C.G.S. § 143C-6-23(c), stating that the Grantee does not have any overdue tax debts, as
defined by N.C.G.S. § 105-243.1, at the federal, state, or local level, is attached as Attachment
D. Grantee acknowledges that the written statement must be filed before the Agency may
disburse the grant funds.
1.4.32 Requirements: This Award Agreement is subject to the reporting requirements
described in the Notice of Certain Reporting and Audit Requirements (Attachment C).
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The Grantee must ensure that grant funds disbursed under this Award Agreement are audited
in compliance with state and federal audit requirements for local governments and public
authorities, institutions of higher education, and nonprofit organizations, and, as applicable,
according to the standards of the federal Single Audit Act and Circular A-133 “Audits of States,
Local Governments, and Nonprofit Organizations” as supplied by the Executive Office of the
President, Office of Management and Budget, Washington, DC.
1.4.33 Disbursements: As a condition of this Award Agreement, Grantee acknowledges and
agrees to make disbursements in accordance with the following requirements:
(a) Implement adequate internal controls over disbursements.
(b) Ensure sufficient account coding information to provide for tracking of grant funds
through the Grantee’s accounting system.
(c) Assure adequate control of signature stamps/plates.
(d) Assure adequate control of negotiable instruments; and
(e) Implement procedures to ensure that all account balances are solvent and reconcile
the account monthly.
1.4.34 Outsourcing/Assignability/Subcontracting: The Grantee shall not subgrant any of the
work contemplated under this Award Agreement without prior written approval from the Agency.
The Agency shall not be obligated to pay for any work performed by any unapproved subgrantee
or subrecipient. The Grantee or subrecipient is not relieved of any of the duties and
responsibilities of this Award Agreement. Furthermore, any subrecipient must agree to abide by
the standards contained in this Award Agreement and to provide all information to allow the
Grantee to comply with these standards.
1.4.35 Cap State-Funded Portion of Nonprofit Salaries: Pursuant to Session Law 2017-57,
Section 6.4, no more than one hundred twenty thousand dollars ($120,000) in state funds,
including any interest earnings accruing from those funds, may be used for the annual salary of
any individual employee of the Grantee.
1.4.36 Contract Administrators: All notices permitted or required to be given by one Party to
the other and all questions about the Agreement from one Party to the other shall be addressed
and delivered to the other Party’s Contract Administrator. The name, post office address, street
address, telephone number, and email address of the Parties’ respective initial Contract
Administrators are set out below. Either Party may change the name, post office address, street
address, telephone number, fax number, or email address of its Contract Administrator by giving
written notice to the other Party within 30 calendar days of such change.
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1.5. Authorization. This Award Agreement applies to federal Coronavirus State Fiscal Recovery
Funds authorized in section 9901 of the American Rescue Plan Act, Pub. L. No. 117-2, awarded to
North Carolina, and appropriated in North Carolina by the 2021 Appropriations Act, S.L. 2021-180.
Later legislation may modify these appropriations such as by technical corrections in S.L. 2021-189.
1.6 Administering Offices. The 2021 Appropriations Act directed the Office of State Budget and
Management, Pandemic Recovery Office, to transfer these funds to the Agency to allocate to the
Grantee. Session Law 2020-4 Section 4.3 directed the Office of State Budget and Management to
establish the North Carolina Pandemic Recovery Office to perform the following:
OSBM shall establish a temporary North Carolina Pandemic Recovery Office to oversee and
coordinate funds made available under COVID-19 Recovery Legislation. This Office shall
also provide technical assistance and ensure coordination of federal funds received by state
agencies and local governments and ensure proper reporting and accounting of all funds.
Similarly, the Agency will be responsible for providing technical assistance and ensuring coordination
among Grantees for the proper reporting and accounting of funds received from the Agency through
this program.
1.7 Conflict between State and Federal Appropriation. Session Law 2021-180 Section 4.9(c)
directs that if there is a conflict between federal law and an appropriation in the state budget, the
following obligations apply:
Conflict. – If an allocation made under this act of State Fiscal Recovery Fund funds is found
to be disallowed by federal law, the disallowed allocation is repealed, and the Office of State
Budget and Management shall transfer the amount of the disallowed allocation to the State
Fiscal Recovery Reserve. If the funds have been allocated to a nonprofit corporation, and
the use of funds by the nonprofit corporation is disallowed by federal law, the nonprofit
corporation shall return the amount of funds allocated to the nonprofit corporation to the
Agency to transfer the disallowed, repealed allocation, as provided in this section.
The Grantee should promptly notify the Agency if, on the basis of official guidance or other analysis,
that the allocation itself, or its use in a project design or implementation, may not be allowed by federal
law.
1.8. Disbursement Schedule. Session Law 2021-180 Section 4.9(e) directs the Agency to disburse
funds to nonprofits as follows:
State Fiscal Recovery Fund funds shall be allocated to nonprofit organizations on a quarterly
basis unless OSBM determines that cash flow or the nature of the program being funded
requires otherwise.
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The Agency will follow the same quarterly disbursement schedule for all non-state entities unless it
determines that cash flow or the nature of the program being funded requires otherwise.
Determination of beneficiary status in Section 1.12 below may indicate the “nature of the program”
requires a different disbursement schedule.
1.9 Amount and Purpose of Award. The federal award to North Carolina provides financial
assistance for the State to do the following (emphasis added):
a) To respond to the public health emergency or its negative economic impacts, including
assistance to households, small businesses, and nonprofits, or aid to impacted industries
such as tourism, travel, and hospitality; b) To respond to workers performing essential work
during the COVID-19 public health emergency by providing premium pay to eligible workers;
c) For the provision of government services to the extent of the reduction in revenue due to
the COVID–19 public health emergency relative to revenues collected in the most recent full
fiscal year prior to the emergency; and d) To make necessary investments in water, sewer,
or broadband infrastructure.
Utilizing revenue replacement for government services, the Grantee has been selected in the 2021
Appropriations Act to receive and administer the following with a total allocation of up to $120,587.
1.10 Period of Performance. The recipient must provide the Agency approval project plans and
budgets as detailed under State Requirements in Section 3. The federal period of performance
requires that eligible expenditures must be incurred or obligated by December 31, 2024, and
expended by December 31, 2026, as allowed by federal law and regulation. For information on eligible
costs incurred prior to the signing of this Award Agreement, see applicable federal law and regulations
and guidance issued by the US Department of the Treasury for use of these funds and consult with
the Agency.
1.11 Nonreverting Appropriation. Session Law 2021-180 Section 4.9(k) establishes this as a non-
reverting state appropriation over multiple fiscal years:
Reversion. – The funds appropriated in this act from the State Fiscal Recovery Fund shall
not revert at the end of each fiscal year of the 2021-2023 fiscal biennium but shall remain
available to expend until the date set by applicable federal law or guidance.
1.12 Recipient, Subrecipient or Beneficiary. For the purpose of determining the applicability of 2
CFR 200 Uniform Guidance and of 09 NCAC 03M, NCPRO looks first to the designation of federal
financial assistance allocated by the state budget process for the provision of government services
within the total calculated revenue loss. NCPRO does not view the provision of government services
to make it a federal “Pass-through entity (PTE) [as] a non-Federal entity that provides a subaward to
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a subrecipient to carry out part of a Federal program” as defined in 2 CFR 200.1, beyond fulfilling the
federal program purpose of replacing revenue to be used to provide government services as
determined at the state level. To determine applicability of 09 NCAC 03M .0102 requires review of
whether the appropriation describes a state program purpose or is solely financial assistance. For
state Administrative Code definitions of a covered “recipient” or “subrecipient” receiving financial
assistance “to carry out part of a state program,” or is a non-covered “beneficiary,” NCPRO adopts
the rationale described in the federal SLFRF discussion of “Distinguishing Subrecipients and
Beneficiaries” including the following excerpt, because the state Administrative Code adopted the
same definition in 09 NCAC 03M .0102 (10) and (14) as in 2 CFR 200.1 that a federal subrecipient
“does not include an individual that is a beneficiary of such program:”
The distinction between a subrecipient and a beneficiary, therefore, is contingent upon the
rationale for why a recipient is providing funds to the individual or entity. If the recipient is
providing funds to the individual or entity for the purpose of carrying out a SLFRF program
or project on behalf of the recipient, the individual or entity is acting as a subrecipient. Acting
as a subrecipient, the individual or entity is subject to subrecipient monitoring and reporting
requirements. Conversely, if the recipient is providing funds to the individual or entity for the
purpose of directly benefitting the individual or entity as a result of experiencing a public
health impact or negative economic impact of the pandemic, the individual or entity is acting
as a beneficiary. Acting as a beneficiary, the individual or entity is not subject to subrecipient
monitoring and reporting requirements.
Whether the recipient of this non-state entity award is a beneficiary is a determination by
OSBM/NCPRO, as are determinations of further subawards by the Grantee.
SECTION 2.
Federal
Requirements
2.1 Federal Award Terms and Conditions. The parties acknowledge that these funds constitute
federal financial assistance to the State of North Carolina and its recipients, and, therefore, use of
these funds must be in accordance with federal uniform guidance found in 2 CFR 200, where
applicable, and that none of these requirements is waived by recitations or terms of this Agreement
or representations of the parties later during the term of performance, closeout, or post-closeout
period except as allowed by law. The State of North Carolina is named by as the Prime Recipient of
these federal funds and the Federal Award Terms and Conditions bind the recipient and its vendors,
contractors and subrecipients, if any. The recipient specifically acknowledges responsibility for its
duties under 2 CFR 200, Subpart E, “Cost Principles,” as required of recipients/subrecipients by
operation of 09 NCAC 03M .0201.
2.2 FFATA Required Executive Compensation Information. Before disbursing funds to recipients,
the State must document compliance with the Federal Funds Accountability and Transparency Act.
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The FFATA requires public disclosure of executive compensation in certain federally-funded
organizations. By signing this Agreement, the Grantee certifies that its answers to one or both
questions is “No:” 1) The recipient received 80% or more of its annual gross revenues from federal
awards (contracts or subcontracts, loans, grants or subgrants, cooperative agreements)? Y/N and/or
whether 2) The total of the recipients’ annual federal awards equaled or exceeded $25,000,000?
Y/N. If the answer to either question is “No,” no further disclosure is required. If the answer to both
questions is “yes,” then upon disclosure in writing, the Grantee may sign this Award Agreement, and
consult with the Agency and NCPRO regarding how to publicly report the compensation information
of its five most highly compensated executives.
2.3 FFATA Reporting on Grants and Contracts over $50,000. For each Contract, Grant, Loan,
Transfer, or Direct Payment greater than $50,000, information must be obtained and reported through
NCPRO to US Treasury, which may include:
• Subrecipient/beneficiary/vendor/contractor identifying and demographic information (e.g.,
legal name, whether registered in SAM.gov, DUNS/UEI/TIN and location)
• Award number (e.g., Award number, Contract number, Loan number)
• Award date, type, amount, and description
• Award payment method (reimbursable or lump sum payment(s))
• For loans, expiration date (date when loan expected to be paid in full)
• Primary place of performance
• Related project identification number(s) (created by the recipient)
• Related project name(s)
• Period of performance start and end date
• Quarterly obligation amount
• Quarterly expenditure amount
See latest guidance from US Treasury: (https://home.treasury.gov/policy-
issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-
recovery-funds/recipient-compliance-and-reporting-responsibilities)
SECTION 3.
State Requirements
3.1 State Administrative Code Requirements. The parties acknowledge that these funds constitute
federal financial assistance to the State of North Carolina to provide government services, and the
State Budget Act appropriates the funds as state financial assistance to the named Grantee.
Therefore, use of these funds must be in accordance with state regulations found in Title 09,
Subchapter 03M of the North Carolina Administrative Code, and that none of these requirements is
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waived by recitations or terms of this Award Agreement or representations of the parties later during
the term of performance, closeout, or post-closeout period except as allowed by law.
3.1.1 Reporting. Grantee agrees to comply with all annual reporting requirements on the
financial assistance awarded by this Award Agreement as found in 09 NCAC 03M .0205,
specifically certifying that the financial assistance received or held was used for the purposes
for which it was awarded, providing an accounting of all financial assistance received, held,
used, or expended, activities and accomplishments undertaken by the Grantee including
performance measures established hereby, and required single or program-specific audit as
may be required.
3.1.2 Project Plan/Scope of Work/Description of Services. Grantee agrees to provide a
project plan/scope of work/description of services to be attached as Appendix A that
specifies the purpose of the award, services to be provided, objectives to be achieved, and
expected results as required by 09 NCAC 03M .0703 (1).
3.1.3 Budget. Grantee agrees to provide a budget for the project to be attached as Appendix
B as required by 09 NCAC 03M .0703 (8) including an anticipated schedule of payments for
the project duration.
3.2 Disbursement Requests. Implementation of programs and services under ARPA/SFRF is not
intended as a reimbursement process. Unless otherwise agreed, the Grantee will submit
disbursement requests on a forward-looking quarterly basis and will provide as justification its
estimated cash flow needs for the upcoming quarter. The Agency and NCPRO will evaluate the
quarterly justification based on program descriptions, operating plans, and past use of funds to avoid
accumulation of excessive cash reserves beyond operating needs for successful implementation and
delivery of services.
3.3 Financial Reporting. The Grantee will provide monthly program and expenditure reports to the
Agency as requested to fulfill its oversight, coordination, accounting, and reporting responsibilities
internal to state government. The Grantee will provide quarterly financial and performance reporting
for the purpose of legislative reporting mandated under SL 2021-180 and US Treasury reporting as
detailed in its Compliance and Reporting Guide and User Guide, and the Parties agree to develop
sufficient internal controls and procedures for timely and accurate reporting.
3.4 Performance Reporting. Grantee will provide, at a minimum, quarterly performance reports to
the Agency as requested to fulfill its responsibilities internal to state government and for the purpose
of US Treasury reporting as detailed in its Compliance and Reporting Guide and User Guide, and the
Parties agree to develop sufficient internal controls and reporting procedures to ensure timely and
accurate reporting.
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SECTION 4.
Monitoring Plan
4.1 Monitoring Plan. For recipients/subrecipients (not beneficiaries), the Agency will conduct an
annual risk assessment and develop a suitable monitoring plan to ensure compliance with these terms
and identify any failures in the administration and performance of the Award. Monitoring activities will
be selected based on an assigned risk of low, moderate, or high and may be based on factors
including recent history of grant management, audit findings and corrective actions, and knowledge
and experience of key personnel assigned. Monitoring activities may include review of monthly
performance and financial reports, telephone and email interviews, desk audits of underlying
documentation, and site visits (actual or virtual) to interview key personnel, to see performance sites,
and to review files. The assessment and monitoring plan will also serve to identify whether the
Grantee needs additional technical assistance to ensure success in timely meeting these
requirements. Ongoing monitoring will be used to document allowable and unallowable costs, time
and effort reporting and travel, achievement of performance objectives, and timely and accurate data
reporting as appropriate. Monitoring also will be used to follow up on findings identified in earlier
monitoring activities or after an audit to ensure that the Grantee took corrective action. If necessary,
the Agency may amend the terms of the Award Agreement, plan, or budget to require implementation
of additional terms to address deficiencies as a condition of continued funding disbursements. Special
terms may be removed once a subsequent Grantee risk assessment shows a substantial reduction
of risk.
SECTION 5.
Closeout
5.1 Closeout. The State of North Carolina as a prime recipient of a federal award will develop suitable
closeout procedures in accordance with federal and state regulation and guidance from the US
Treasury current at the time of signing and as may be promulgated and published during and after
the period of performance. This includes determining timelines for completion of program and
closeout tasks; determining whether all applicable administrative actions and all required work have
been completed by the State and Grantee at the end of the period of performance; and requirements
for liquidation of property or encumbered expenses if necessary; all in compliance with applicable law
and guidance.
SECTION 6.
Signatures
IN WITNESS WHEREOF, the Parties have executed this Award Agreement by their duly authorized
officers. For unincorporated associations, an affidavit similar to that required for transfer of real
property under N.C.G.S. § 59B-6 must be provided prior to disbursement, attesting to the capacity of
the Authorized Representative to receive and direct the funds and bind the unincorporated
association to the terms of this Agreement:
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FOR Grantee
_________________________________________ _____________________
By Library Director: Date
Dana Conners, Library Director
The type of library and its governance determine the signature required on this document:
In addition to the library director:
County Library: Chair of County Commissioners
Regional Library: Chair of Regional Board of Trustees
Municipal Library: Chair of Town/City Council
Independent County Library: Chair of Board of Trustees
_________________________________________ _____________________
By Authorized Official: Date
William Rivenbark, Chair, New Hanover County Commissioners
FOR DNCR
_________________________________________ _____________________
By Authorized Representative: Date
Josh Davis, Chief Financial Officer
_________________________________________ _____________________
By Authorized Representative: Date
Michelle Underhill, State Librarian
_________________________________________ _____________________
By Authorized Representative: Date
Staci Meyer, Chief Deputy Secretary
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3/6/2023
3/6/2023
3/6/2023
3/7/2023
3/7/2023
ADDENDA Attachment A. Project Plan/Scope of Work/Description of Services.
Attachment B. Line-Item Budget.
Attachment C. Notice of Certain Reporting and Audit Requirements
Attachment D. No Overdue Tax Debts Form.
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Attachment A
Project Plan/Scope of Work/Description of Services
Session Law 2021-180 appropriated funds to the Grantee. Public Libraries in North Carolina suffered adverse economic
impacts due to the COVID-19 Pandemic. The Grantee will use the $120,587 for materials, salaries, equipment, and operating
costs, which are consistent with allowable uses outlined in 07 NCAC 02I .0202 State Aid Grants from the Aid to Public Library
Fund.
Attachment B
Line-Item Budget
Revenue
State Fiscal Recovery Funds Directed Grant $120,587
Expenses Project
Cost
Aid to Libraries project costs such as
materials, salaries, equipment, and operating
costs
$120,587
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Attachment C Notice of Certain Reporting and Audit Requirements
The Grantee shall comply with all rules and reporting requirements established by state statute or administrative rules. [as
detailed in SUBCHAPTER 03M – UNIFORM ADMINISTRATION OF STATE AWARDS OF FINANCIAL ASSISTANCE
subchapter 3m rules.pdf (state.nc.us)] For convenience, the requirements are set forth in this Attachment.
State Reporting Thresholds.
There are three reporting levels established for grantees and subrecipients receiving state financial assistance. Reporting levels
are based on the level of state financial assistance from all funding sources. The reporting levels are:
(1) Level I – A grantee or subrecipient that receives, holds, uses, or expends state financial assistance in an amount
less than twenty-five thousand dollars ($25,000) within its fiscal year.
(2) Level II - A grantee or subrecipient that receives, holds, uses, or expends state financial assistance in an amount
of at least twenty-five thousand ($25,000) or greater, but less than five hundred thousand dollars ($500,000) within its
fiscal year.
(3) Level III – A grantee or subrecipient that receives, holds, uses, or expends state financial assistance in an amount
equal to or greater than five hundred thousand dollars ($500,000) within its fiscal year.
Reporting requirements for grantees that meet the following reporting standards on an annual basis:
(1) All grantees and subrecipients shall provide a certification that state financial assistance received or held was used
for the purposes for which it was awarded.
(2) All grantees and subrecipients shall provide an accounting of all state financial assistance received, held, used, or
expended.
(3) Level II and III grantees and subrecipients shall report on activities and accomplishments undertaken by the
Grantee, including reporting on any performance measures established in this Award Agreement.
(4) Level III grantees and subrecipients shall have a single or program-specific audit prepared and completed in
accordance with Generally Accepted Government Auditing Standards (also known as the Yellow Book).
All reports shall be filed with the Agency in the format and method specified by the Agency no later than three months following
the end of the Grantee's fiscal year. Audits must be provided to the funding Agency no later than nine months following the end
of the Grantee's fiscal year. The Grantee shall use the reporting package forms provided by the Agency in making and submitting
reports to the Agency.
Unless prohibited by law, the costs of audits made in accordance with the provisions of this Award Agreement shall be allowable
charges to state and federal awards. The charges may be considered a direct cost or an allocated indirect cost, as determined
in accordance with cost principles outlined in the Code of Federal Regulations, 2 CFR Part 200. The cost of any audit not
conducted in accordance with this Award Agreement shall not be charged to state awards.
Notwithstanding the provisions of this Award Agreement, a grantee may satisfy the reporting requirements of this Award
Agreement by submitting a copy of the report required under federal law with respect to the same funds.
Additional DNCR Financial and Performance Reporting Requirements
Financial Reporting. The Grantee will provide monthly program and expenditure reports to the Agency as requested to fulfill
its oversight, coordination, accounting, and reporting responsibilities internal to state government. The Grantee will provide
quarterly financial and performance reporting for the purpose of legislative reporting mandated under SL 2021-180 and US
Treasury reporting as detailed in its Compliance and Reporting Guide and User Guide, and the Parties agree to develop
sufficient internal controls and procedures for timely and accurate reporting.
Performance Reporting. Grantee will provide, at a minimum, quarterly performance reports to the Agency as requested to
fulfill its responsibilities internal to state government and for the purpose of US Treasury reporting as detailed in its
Compliance and Reporting Guide and User Guide, and the Parties agree to develop sufficient internal controls and reporting
procedures to ensure timely and accurate reporting.
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Attachment D
No Overdue Tax Debts Form
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