U.S. Federal Administrative, Cost and Audit Requirements. Regardless of the nature or funding source for the Project, WRF is categorized as a Pass Thru Entity (PTE) because of the federal funding it receives. To stay in procurement compliance, WRF must comply with applicable federal regulations and requirements governing federal funding and must pass through compliance to its funding recipients. Accordingly, Sub-recipient represents and certifies that the budget disclosures in the Project Plan were prepared by Sub-recipient in full compliance with The Water Research Foundation Guidelines and all relevant U.S. laws, regulations and agreement terms and conditions related to U.S. Federal Financial Assistance including, but not limited to, the Code. Cost Principles specifically applicable for awards to for-profit organizations are set forth in the Federal Acquisition Regulations System (FARS, at 48 CFR 31.2) to determine allowable costs under WRF project funding agreements. Sub-recipient shall throughout the Project, and in the preparation of every invoice, report, and maintenance of its accounting system, remain in compliance with the above regulations. It shall be Sub-recipient’s obligation to determine and comply with its governing cost principles, including, without limitation, those governing survey costs, and to ensure all of its Subcontractors’ invoices are equally in compliance with these requirements.
