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Page 5 of 6 <br />Revised August 2018 <br />While not necessarily an indicator of inadequate performance, a Local Health Department’s inability to <br />spend allocated funds will result in an assessment and potential recall of funds for re-allocation to other <br />local health departments. <br />VI. Funding Guidelines or Restrictions: <br />1. Requirements for pass-through entities: In compliance with 2 CFR §200.331 – Requirements for <br />pass-through entities, the Division provides Federal Award Reporting Supplements to the Local <br />Health Department receiving federally funded Agreement Addenda. <br />a. Definition: A Supplement discloses the required elements of a single federal award. Supplements <br />address elements of federal funding sources only; state funding elements will not be included in <br />the Supplement. Agreement Addenda (AAs) funded by more than one federal award will receive <br />a disclosure Supplement for each federal award. <br />b. Frequency: Supplements will be generated as the Division receives information for federal <br />grants. Supplements will be issued to the Local Health Department throughout the state fiscal <br />year. For federally funded AAs, Supplements will accompany the original AA. If AAs are <br />revised and if the revision affects federal funds, the AA Revisions will include Supplements. <br />Supplements can also be sent to the Local Health Department even if no change is needed to the <br />AA. In those instances, the Supplements will be sent to provide newly received federal grant <br />information for funds already allocated in the existing AA. <br />2. Unallowable costs: <br />a. Research <br />b. Clinical care except as provided above in connection with Domain 4 activities. <br />c. Publicity and propaganda (lobbying). Other than for normal and recognized executive-legislative <br />relationships, no funds may be used for: <br />i. publicity or propaganda purposes, for the preparation, distribution, or use of any material <br />designed to support or defeat the enactment of legislation before any legislative body <br />ii. the salary or expenses of any grant or contract recipient, or agent acting for such recipient, <br />related to any activity designed to influence the enactment of legislation, appropriations, <br />regulation, administrative action, or Executive order proposed or pending before any <br />legislative body <br />Detailed guidance on this prohibition and additional guidance on lobbying for CDC recipients <br />can be found under Additional Requirement 12: https://www.cdc.gov/grants/documents/Anti- <br />Lobbying_Restrictions_for_CDC_Grantees_July_2012.pdf <br />d. All unallowable costs cited in CDC-RFA-TP18-1802 remain in effect, unless specifically <br />amended in the CDC Interim Guidance document, in accordance with 45 CFR Part 75 – Uniform <br />Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards. <br />3. PHP&R will distribute funds to the Local Health Department in amounts based on a formula <br />developed to maximize COVID-19 prevention and mitigation actions to protect the citizens of North <br />Carolina. Funds will be distributed through the Controller’s Office based on standard DPH <br />procedures. It is anticipated that the level of funding provided through this Agreement Addendum <br />will not be enough to support all of the activities that a Local Health Department will undertake and <br />that other resources may be necessary to meet the requirements. <br />4. Overlap in Projects, Budget Items, or Commitment of Effort <br />a. Funds cannot be used to supplant existing federal funds awarded by other federal sources. <br />DocuSign Envelope ID: 5B3129F4-24E8-4B06-8D09-86F5B1AFD15F