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<br />5
<br />Revised 9/8/2021
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<br />8. Rearrangement, Alteration, Reconversion, and Capital Expenditures. Recipient may not
<br />incur direct costs for rearrangement, alteration, reconversion, or capit al expenditures without
<br />prior written approval by CMS (refer to 45 CFR §§75.439 and 75.462).
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<br /> Capital expenditures means expenditures to acquire capital assets or
<br />expenditures to make additions, improvements, modifications, replacements,
<br />rearrangements, reinstallations, renovations, or alterations to capital assets that
<br />materially increase their value or useful life (refer to 45 CFR §75.2,
<br />Definitions).
<br /> Capital assets means tangible or intangible assets used in operations having a
<br />useful life of more than one year which are capitalized in accordance with
<br />Generally Accepted Accounting Principles (GAAP). Capital assets include:
<br />(1) Land, buildings (facilities), equipme nt, and intellectual property
<br />(including software) whether acquired by purchase, construction,
<br />manufacture, lease-purchase, exchange, or through capital leases; and
<br />(2) Additions, improvements, modifications, replacements, rearrangements,
<br />reinstallations, reno vations or alterations to capital assets that materially
<br />increase their value or useful life (not ordinary repairs and
<br />maintenance). (refer to 45 CFR §75.2, Definitions)
<br /> Maintenance and Repair Costs: Costs incurred for utilities, insurance, security,
<br />necessary maintenance, janitorial services, repair, or upkeep of buildings a nd
<br />equipment (including Federal property unless otherwise provided for) which
<br />neither add to the permanent value of the property nor appreciably prolong its
<br />intended life, but keep it in an efficient operating condition, are allowable.
<br />Costs incurred for improvements which add to the permanent value of the
<br />buildings and equipment or appreciably prolong their intended life must be
<br />treated as capital expenditures. These costs are only allowable to the extent not
<br />paid through rental or other agreements (refer to 45 CFR §75.452).
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<br />9. Conference and Travel Costs. For attendance at any conference 4, including those sponsored
<br />by CMS, recipients must submit a detailed breakdown of costs associated with attending the
<br />conference for prior written approval. All costs must be individually itemized. This
<br />breakdown should include all costs associated with travel to the conference a nd a brief
<br />narrative explaining the program related purpose/how attending the conference will further the
<br />objectives of the program. As noted in 45 CFR §75.432, Conferences, allowable conference
<br />costs paid by the non-Federal entity as a sponsor or host of the conference may include rental
<br />of facilities, speakers’ fees, costs of meals and refreshments 5, local transportation, and other
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<br />4 OMB Memorandum M-12-12 employs, and HHS has adopted the following definition for a conference from the
<br />Federal Travel Regulation (FTR): A “conference” is defined as “[a] meeting, retreat, seminar, symposium or event
<br />that involves attendee travel. The term ‘conference’ also applies to training activities that are considered to be
<br />conferences under 5 CFR 410.404.”
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<br />5 Per page II-36 of the HHS Grants Policy Statement, meals are generally unallowable except for the following:
<br />• Subjects and patients under study;
<br />• Where specifically approved as part of the project or program activity (not grantee specific), e.g., in
<br />programs providing children’s services; and
<br />• As part of a per diem or subsistence allowance provided in conjunction with allowable travel.
<br />Guest meals are not allowable (see also II-36 of HHS GPS).
<br />DocuSign Envelope ID: 7832B0E4-F34E-430E-A3C2-1A6A14F29307
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