Leadership Development & Supervisor Training Grants

Leadership Development & Supervisor Training Grants is sponsored by Indiana Criminal Justice Institute (ICJI). Grants that support first-line supervisor courses, command staff development, and leadership academies.

CJI: Grantee Training and Resources: Grantee Training and Resources Grantee Training, Resources & Policies Grant Management Directives Supporting Documentation Guidance Register in IntelliGrants IntelliGrants User Manual Grant Management Directives Grant Management Directives encapsulate ICJI policies and incorporate rules, regulations and laws governing grants administered by ICJI.

The Directives are intended to provide streamlined guidance to internal and external stakeholders in the hope of clarifying the complexities surrounding the grant-management process.

Directive 1: Utilizing an Owned Building as Match ICJI Staff and Subgrantees October 19, 2017; Revised March 4, 2020 A number of the Indiana Criminal Justice Institute’s (“ICJI”) subgrantees utilize a building they own to carry out the grant program purpose. The question has been raised to ICJI as to whether a building owned by a subgrantee to carry out the grant program can be used as match.

Answer: A subgrantee who utilizes a building that it owns to carry out the grant purpose can use the cost of ownership of the building as match based upon the pro rata usage by the grant program. Cost of ownership includes: Normal Repair and Maintenance; and A subgrantee cannot use the above cost of ownership expenses as match if the subgrantee included them elsewhere in the grant or other grants.

Additionally, a subgrantee can only claim the pro rata share of the above listed cost of ownership expenses utilized to carry out the grant program. Adequate supporting documentation evidencing the expenditures must be submitted to ICJI. A subgrantee claiming ownership or partial ownership of a building will be required to submit documentation evidencing ownership of the building to ICJI.

ICJI will closely examine all types of ownership interest in a building claimed as match to ensure compliance with federal regulatory requirements. Example: Subgrantee A owns the building at 123 Main Street and utilizes 50 percent of the building to carry out the grant program purpose. The cost of ownership totals $2,000.

Subgrantee A could claim $1,000 as match. Examples of utilities include, but are not limited to, electricity, gas, telephone, and trash removal. Directive 2: Reimbursement of Partially Grant-Funded Employees ICJI Staff and Subgrantees October 1, 2018; Revised March 4, 2020 Many of the Indiana Criminal Justice Institute's ("ICJI") subgrantees have budgetary line items for personnel.

The majority of employees listed in the personnel budgetary category only dedicate a portion of their actual time worked to grant-funded activities. To properly reflect that, the approved grant budget should state a defined percentage of time devoted to grant-funded activities per employee. How can subgrantees ensure that proper documentation is submitted for partially grant-funded employees?

Subgrantees may only seek reimbursement for the actual percentage that the employee performed grant-funded activities. Adequate supporting documentation evidencing that the expenditures are accurate, allowable, and properly allocated must accompany all fiscal reports. If adequate supporting documentation is not submitted, the fiscal report will be returned to the subgrantee.

No fiscal report will be processed until all supporting documentation is submitted to and approved by ICJI.

Adequate supporting documentation for personnel and benefit expenses includes, but is not limited to: Timesheets signed by the grant-funded employee and their authorized official, pay stubs, or other source documentation that supports the distribution of the employee's wages and salaries among specific activities or cost objectives if the employee works on more than one federal award; a federal award and a non-federal award; an indirect cost activity and a direct cost activity; two or more indirect activities; or an unallowable activity and a direct or indirect cost activity.

Source documentation evidencing the actual costs of employee benefits paid by the subgrantee. A subgrantee must submit a Project Modification Request ("PMR") to ICJI to report all deviations from the project scope or objective.

Deviations in the scope or objective of the project or program requiring prior approval include, but are not limited to: An employee's work on the approved project or program will transcend a period other than the period described in the approved application, or less than the grant's period of performance; Programmatic services that are grant-funded will cease being grant-funded at a point prior to the end of the grant's period of performance; or An employee who is dedicated to a project or program is going to become dedicated to activities other than those indicated in the approved funding application prior to the end of the grant's period of performance.

Additionally, subgrantees must: Possess and utilize a system of internal controls, which provide reasonable assurance that all expenditures are accurate, allowable, and properly allocated. Ensure that all grant and match expenditures and corresponding supporting documentation reflects the actual work activity for which the employee is compensated, not to exceed 100% of the compensated activities.

Maintain and utilize an adequate accounting system to separately track all expenditures and only seek grant funds or use as match expenditures that are accurate, allowable, and allocable. Possess and utilize a system of internal controls that includes processes to review after-the-fact interim charges made to grant awards.

All necessary adjustments must be made such that the final amount charged to the grant award is accurate, allowable, properly allocated, and not in excess of the approved budgetary line item. Ensure that they do not earn or keep any profit from federal or state grants administered by ICJI. Have budget controls in place to relate financial information to performance data.

Directive 3: Project Modification Requests & Personnel Name Changes To: ICJI Staff and Subgrantees September 20, 2019; Revised July 7, 2020, June 8, 2021, and December 27, 2021 PMRs When a subgrantee determines that a Project Modification Request (“PMR”) is the necessary course of action to achieve the program purpose, there are numerous ICJI policies and procedures the subgrantee must adhere to in order to remain in compliance and for ICJI to consider the merits of the PMR.

This directive will set forth many of these policies and procedures governing the PMR process. No PMRs During the Last 30 Days of the Grant All ICJI grants have a prescribed period of performance. This period of performance is set forth in all grant agreements between ICJI and subgrantees.

Generally, ICJI will not approve any PMR submitted within the last 30 days of the grant period of performance. Exceptions to this policy will be granted at the discretion of ICJI’s Executive Director. Subgrantees are responsible for actively managing all grants they receive from ICJI.

Subgrantees need to identify the necessity for a PMR in a timely fashion and subsequently submit any PMR in the ICJI electronic grant management system. ICJI will capture the date the PMR is submitted. If approved, the PMR will become effective the date it was submitted.

The original budget approved by ICJI is the approved budget until a PMR is approved. The new budget approved via the PMR will become the budget in effect until such time as a new PMR is submitted and approved by ICJI. ICJI recognizes some circumstances arise that are completely beyond the control of the subgrantee, such as a delay in grant funding.

These circumstances necessitate a PMR which would become effective on a specified date that is prior to the PMR’s submission. When such circumstances arise, ICJI will exercise discretion in approving such retroactive PMRs. Grant Funds Cannot be Added to the Grant Via the PMR Process The PMR process is not the appropriate mechanism to increase the amount of a grant award.

The only mechanism to increase grant funds to an existing grant is by amending the grant agreement. This is a defined legal process that is wholly outside the PMR workflow and is determined based upon available funding. If funds are added through an amendment, your ICJI grant manager will work with you to ensure that the funds are correctly added to the existing approved budget in the ICJI electronic grant management system.

Every organization experiences some degree of staff turnover. To ensure that ICJI stays informed of which individuals are working on a particular grant, ICJI must be notified in writing within 10 business days of the date a grant-funded employee’s position becomes vacant. The initial notification may be made via an email to the subgrantee’s Grant Manager.

If the subgrantee provides the initial notification to their Grant Manager via email, they must also use the Name Change feature in IntelliGrants to reflect the change as soon as the feature is available. The subgrantee also has 10 business days from a new grant-related employee’s start date to inform ICJI in writing of the name of the new grant-related person.

The initial notification may be made via an email to the subgrantee’s Grant Manager. The new employee must have the same job title and duties as the grant-related employee who left the employ of the subgrantee. If the new employee is making the same or lower salary or hourly rate as the former grant-related employee, the subgrantee can effectuate the name change by using the Name Change feature contained within IntelliGrants.

If the new employee’s salary or hourly rate is higher than the former grant-related employee, a PMR must be completed by the subgrantee to capture not only the change in employee name but also the new rate of pay. As noted above, in addition to notifying their Grant Manager of these changes via email within 10 days, the subgrantee must make the formal changes in IntelliGrants as soon as the applicable feature is available.

The notification to ICJI and the Name Change or PMR must be completed prior to the submission of the first fiscal report where the subgrantee is seeking reimbursement for the new employee.

In the event that reimbursement is sought for a new employee prior to both the notification and Name Change or PMR being completed, ICJI will not pay those claims, and the subgrantee will be required to remove all related claims from the associated fiscal report and resubmit them on the next fiscal report after the notification has been made and the Name Change or PMR has been completed.

Reduction of Services to Victims A PMR concerning any grant administered by ICJI for the programmatic purpose of serving the needs of victims will be closely scrutinized if the PMR seeks to reduce or eliminate any services to victims.

A PMR of this nature will not be automatically denied, but the need for the reduction or elimination of services to victims must be abundantly compelling and clearly delineated in the PMR prior to the approval of the PMR. It is strongly suggested that if this scenario arises, you contact your ICJI grant manager as quickly as possible so that a collaborative process can be started that will address the needs of the subgrantee and ICJI.

The need to specifically articulate match expenditures in a subgrantee’s approved budget is the same when a circumstance arises that a subgrantee needs to change the source of match. The only allowable match is the specific match set forth in the approved grant budget.

Any deviations or substitutions of match without ICJI approving a PMR to change the source of match will result in a match shortage and the need to repay grant funds to ICJI. Movement of 10% of the Grant Funds While ICJI recognizes the potential need to perform a budget modification throughout a grant’s period of performance, the amount of grant funds that can be moved is not without limitation.

Assuming all the criteria set forth in this grant management directive or any other rule, law, policy, or directive governing grants administered by ICJI is satisfied, a subgrantee may be authorized to move up to, but not to exceed, 10% of the grant funds approved in the original budget by the ICJI Board of Trustees.

Subsequent PMRs will be evaluated on their own merits and the movement of grant funds set forth in the preceding approved budget may be subject to the criteria in this grant management directive, as well as rules, laws, policy, or directives, governing grants administered by ICJI.

No Percentage Restriction on Modifying Match If a subgrantee needs to modify the source of match contained in the approved grant budget, the subgrantee may modify any or all of the match within the confines of 2 C. F. R.

Part 200; the Department of Justice Grants Financial Guide; and all rules, regulations, laws, and directives governing grants administered by ICJI. The Effect of PMRs on a Subgrantee’s Risk Assessment ICJI maintains a record of the number of PMRs submitted per subgrantee and per grant. That information is taken into account when looking at a subgrantee’s ability to manage grants and maintain internal controls.

This Grant Management Directive is effective on the date set forth above. Unless specified, this Grant Management Directive supersedes other ICJI policies and procedures concerning the same topics set forth in this Grant Management Directive. Questions or concerns by subgrantees should be addressed to your ICJI Grant Manager.

Directive 4: Differing Mileage and Per Diem Reimbursement Rates To: ICJI Staff and Subgrantees August 8, 2019; Revised March 4, 2020 Issue: A number of ICJI grants allow for the reimbursement of mileage and per diem concerning travel necessary to carry out the program purpose. ICJI subgrantees can only be reimbursed as set forth in the current applicable State of Indiana travel policy.

If a subgrantee reimburses its employees’ mileage and per diem at a rate higher than the State of Indiana rate, can the difference between the State of Indiana rate and the rate paid by the subgrantee be reimbursed or used as match? Answer: 2 C. F.

R. 200. 474 states costs incurred by employees for travel must not exceed costs normally allowed under a state’s written travel policy.

Therefore, the difference between the State of Indiana rate and the higher rate paid by the subgrantee cannot be reimbursed. Because the difference between the rates is not an allowable cost, it also cannot be used as match. Example: The State of Indiana mileage reimbursement rate is currently $.

39 per mile. Subgrantee A reimburses its employees’ mileage at the federal rate of $. 55 per mile.

Emily Employee drives 2,000 miles in the quarter to carry out the program purpose. Subgrantee A expended $1,100 for Emily Employee’s travel (2,000 miles x $. 55 = $1,100) in the quarter.

Assuming it is authorized in the grant budget, Subgrantee A can seek reimbursement of grant funds of $780 or claim match of $780 (2,000 miles x $. 39 = $780). However, Subgrantee A cannot seek reimbursement or claim as match the difference between the State of Indiana rate and its rate ($1,100 - $780 = $320).

Directive 5: Accessing ICJI’s Electronic Grant Management System (IntelliGrants) ICJI Staff and Subgrantees September 11, 2019; Revised March 4, 2020 Can a subgrantee allow any individual of the subgrantee’s agency to access IntelliGrants? Can a subgrantee share access to IntelliGrants with a subgrantee’s consultant or contractor?

IntelliGrants allows for five types of security roles within the electronic grant management system. Each security role provides a specific level of access. Those five security roles are: Subgrantee Administrator; Subgrantee Project Director; Only the Subgrantee Administrator has permission to add or deactivate users on behalf of the subgrantee.

Therefore, it remains the Subgrantee Administrator’s responsibility to add users and remove old users on behalf of the subgrantee. Moreover, it is the dual responsibility of the Subgrantee Administrator and Subgrantee Project Director to ensure that agency personnel who have access to IntelliGrants have been assigned access to the appropriate project throughout the lifecycle of the project.

The only IntelliGrants security role that Subgrantee Administrators may assign to consultants or contractors is Subgrantee Viewer access. Consultants or contractors of the subgrantee may not access any save or submit functions of the IntelliGrants system. Subgrantees should never share the subgrantee’s IntelliGrants account information with a consultant or contractor of the subgrantee.

For more information on the levels of access within IntelliGrants, and the permissions that exist at each level, please review ICJI’s IntelliGrants Subgrantee User Manual .

Directive 6: Pro-rating Timesheets and Other Expenses To: ICJI Staff and Subgrantees Often, the first fiscal report submitted for a grant will include a pay period for subgrantee employees that contains days worked prior to the beginning of the grant period of performance. Similarly, the last fiscal report will often include a pay period that contains days worked after the grant period of performance has ended.

How can a subgrantee ensure that they are submitting the correct documentation with their fiscal report that only covers eligible workdays within the award period? 2 C. F.

R. 200. 309 states that a non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance .

In addition, 2 C. F. R.

200. 430 notes that compensation for personal services includes all remuneration, paid currently or accrued, for services of employees rendered during the period of performance under the Federal award , including but not necessarily limited to wages and salaries.

Because work performed on days prior to or following the award period was not rendered during the period of performance, this work is not an allowable cost and cannot be charged to the Federal award. Subgrantees must only seek reimbursement for the portion of the pay period that falls within the award period. Example: Subgrantee A is awarded a federal grant with an award period of January 1, 2020, through December 31, 2020.

The first paycheck submitted for Fiscal Report 1 includes the time period from December 30, 2019 – January 10, 2020. Subgrantee A cannot be reimbursed for work performed on December 30 or December 31 of 2019, because the award period did not begin until January 1, 2020. Subgrantee A must only seek reimbursement for those dates including and after January 1, 2020.

*While this issue most commonly occurs with employee salaries, all expenses that cover a portion of time outside of the grant period of performance must be pro-rated. This includes salaries, employee benefits, utilities, supplies, and any other costs that cannot be specifically attributed to only days within the grant period of performance.

Directive 7: Federal Civil Rights Requirements To: ICJI Staff and Subgrantees What are a subgrantee’s requirements under Federal civil rights laws? The Department of Justice requires all recipients and subrecipients of federal funds to comply with a variety of Federal civil rights laws. ICJI has created a Civil Rights Training PowerPoint providing more information on what is required of subgrantees.

In addition, ICJI has created a checklist that each subgrantee must fill out, provide to ICJI, and update on an annual basis in order to remain compliant with Federal requirements. Next steps: All subgrantees must complete the Civil Rights Training PowerPoint and send a certificate of completion to training@cji. in.

gov . The training must be completed on an annual basis. ICJI will update the training as necessary to ensure that it incorporates any changes in Federal law or policy.

All subgrantees must also complete the Civil Rights Compliance Checklist. This must be completed each time a subgrantee receives an award from ICJI, or at least once per year. Compliance: ICJI’s Civil Rights Officer will verify that each organization that is in receipt of Federal funds has completed both the training and the checklist on an annual basis.

Directive 8: Supplies and Equipment Purchases ICJI Staff and Subgrantees Issue: Many of the Indiana Criminal Justice Institute's ("ICJI") subgrantees utilize grant funds to purchase supplies and equipment to carry out various program purposes. Federal and state auditors, as well as subgrantees, have raised questions to ICJI as to when supplies and equipment can be purchased during the grant period of performance.

Answer: A subgrantee that budgets for and utilizes grant funds to purchase supplies and equipment to carry out grant activities must purchase all non-consumable supplies and equipment prior to the final 90 days of the grant period of performance (Note: In the event that excessive quantities of consumable supplies are purchased in the final 90 days of the grant period of performance, ICJI reserves the right to refuse reimbursement.

For example, if an organization budgets for 5,000 envelopes and purchases all 5,000 in the final month of the grant period, this purchase will not be reimbursed). Consumable supplies are those that are used or worn out and require regular replacement. Consumable supplies include, but are not limited to, items such as pencils, envelopes, copy paper, and trash bags.

Non-consumable supplies are those that are reused and naturally deteriorate over time. Non-consumable supplies include, but are not limited to, items such as tablets, office chairs, or printers. A subgrantee cannot purchase non-consumable supplies or equipment during the final 90 days of the grant period of performance.

Per 2 C. F. R.

200. 403, costs must be necessary for the performance of the federal award in order to be allowable. Purchasing non-consumable supplies and/or equipment during the last 90 days of the grant period creates a presumption that the items were not necessary to fulfill the objectives of the project during the grant period of performance.

Therefore, non-consumable supplies and equipment purchased during the last 90 days of the grant performance period will not be reimbursed. Any requests for an exception to this policy must be made in writing to a subgrantee's grant manager prior to making the purchase in question. Exceptions will only be granted in limited, extraordinary circumstances where significant justification is provided.

If an exception is granted, the items must be ordered and within the subgrantee's possession prior to the end of the grant period of performance. Subgrantee A's approved budget for their one-year JAG grant includes a printer and a license plate reader. The printer is purchased one month into the grant period of performance, and the license plate reader is purchased two months into the grant period of performance.

These items are eligible for reimbursement, as they were necessary for the performance of the award and will be utilized to further the goals and objectives of the funded program throughout the grant period of performance. Subgrantee B's approved budget for their two-year VOCA grant includes 5,000 sheets of copy paper. 4,500 sheets of copy paper are purchased in the first six months of the grant.

The remaining 500 sheets of copy paper are purchased 60 days before the end of the grant period of performance. All of the copy paper (a consumable supply) is eligible for reimbursement. Subgrantee C's approved budget for their one-year Title II grant includes two laptops.

The laptops are purchased 45 days prior to the end of the grant period of performance. The laptops are not eligible for reimbursement, as they will not be utilized to further the goals and objectives of the funded program throughout the grant period of performance.

Directive 9: Allowability of Costs Paid in Advance All ICJI Staff and Subgrantees December 20, 2022 - Revised February 5, 2024 Issue: A number of the Indiana Criminal Justice Institute’s (“ICJI”) subgrantees request reimbursement for costs that are paid in advance and/or costs that span multiple grant periods of performance. The question has been raised to ICJI as to the allowability of these types of expenses.

Answer: Per guidance received from the Department of Justice (“DOJ”) Office of the Chief Financial Officer (“OCFO”), below are guidelines and examples to aid subgrantees in determining the allowability of such expenses. I. Methods of Accounting and Definitions Beginning with any grant that starts on or after 10/01/2023, subgrantees must determine and certify the accounting method their agency utilizes.

Per the DOJ Grants Financial Guide, subgrantees may utilize either a cash basis or an accrual basis of accounting. Moving forward, subgrantees will be required to certify which method of accounting their organization utilizes at the time of application.

The information below has been taken directly from the DOJ Financial Guide and 2 CFR 200 and may be helpful to subgrantees in determining which accounting method their organization currently utilizes. ICJI would also encourage subgrantees to seek the advice of their own accounting firms or financial partners for guidance. The accounting methodology used must be consistent.

Per the DOJ Grants Financial Guide, Part III. Postaward Requirement, 3. 2 Period of Availability of Funds, Expenditure of funds " Expenditures may be reported on a cash or accrual basis as long as the methodology is disclosed and consistently used.

See 2 C. F. R.

200. 1 (definition of “Expenditures”). Per Title 2 Code of Federal Regulations (CFR) Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart E – Cost Principles, Section 200.

1, Expenditures “The charges may be reported on a cash or accrual basis, as long as the methodology is disclosed and is consistently applied. ” Per the DOJ Financial Guide, Cash basis is the method of reporting revenues and expenses when cash is actually received or paid out.

Accrual Basis is the method of recording revenues in the period in which they are earned, regardless of when payment is received, and reporting expenses in the period when the charges are incurred, regardless of when payment is made.

Determining the accounting method used by each organization will assist in determining which expenses are considered prepaid versus pre-award costs and which, if any, are eligible for reimbursement via grant funds. Please see the definitions of prepaid and pre-award costs provided by the OCFO in italics below. Prepaid costs – (“Prepaid Expenses”) are future expenses that are paid in advance, such as rent or insurance.

On an entity’s balance sheet, these costs/expenses are recorded as an asset. As the benefits of the assets are received/realized over time (Zoom annual subscription, worker’s compensation, insurance coverage), the proportional amount of the benefit received is then recorded as an expense. These costs are prepaid per contract or convention and therefore are usually billed and paid before the benefit is received.

These costs may be paid before the grant period of performance begins but are then expensed to the grant as a proportion of their benefit received using a method that equitably distributes the cost to the subaward. Pre-award costs - Per Title 2 Code of Federal Regulations (CFR) Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart E – Cost Principles, Section 200.

458, Pre-award Costs, “Pre-award costs are those incurred prior to the effective date of the Federal award or subaward directly pursuant to the negotiation and in anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work.

Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. If charged to the award, these costs must be charged to the initial budget period of the award, unless otherwise specified by the Federal awarding agency or pass-through entity. ” II.

Eligibility of Expenses Subgrantees who utilize an accrual basis of accounting may be eligible to claim expenses for costs that were incurred prior to the period of performance that directly benefit or support the project during the grant period of performance. These costs could include orders placed for property (ex. rent), services, and contracts for services performed during the period of performance (ex.

janitorial, Zoom/Webex subscriptions, insurance costs). Per the DOJ Grants Financial Guide, Part III. Post-award Requirement, 3.

2 Period of Availability of Funds, Obligation of Funds “Financial obligations, when referencing a recipient's or subgrantee's use of funds under a federal award, means orders placed for property and services, contracts and subawards made, and similar transactions that require payment. Financial obligations must occur during the period of performance stated on the award document.

A financial obligation occurs when there is a binding agreement, such as in a valid purchase order or requisition, that covers the cost of purchasing an authorized item on or after the begin date and up to the last day of the period of performance. See 2 C. F.

R. § 200. 1 (definition of “Period of Performance”).

Any new expenditures or non-prepaid allocable expenses incurred beyond the project end date are unallowable. III. Funds Obligated Prior to the Period of Performance A subgrantee that wishes to incur pre-award costs as defined above must upload a written request to the ICJI Executive Director in the grants management system at the time of their grant application.

All requests made after the application period has closed will be denied. Each subgrantee request for reimbursement of expenses paid outside the period of performance will be taken on a case-by-case basis and reviewed closely to ensure that guidance provided by the OCFO is being followed correctly.

These costs should be labeled as “Prepaid Expense” on the invoice, attached to the fiscal report uploaded into the grants management system, and clearly show that the payment being made is for a specified period occurring during the period of performance. Examples: Please see the following examples to assist in determining the allowability of various expenses.

For each example, the grant period of performance in question begins on 10/1/2020 and ends on 9/30/2022. Organization pays an annual fee for a Zoom subscription in August 2022. The subscription is for 9/1/22 – 8/31/23.

If the subgrantee uses cash basis accounting, the cost would need to be allocated as an expense in August 2022 across any funding streams that it benefits. If the subgrantee uses accrual basis accounting, the September cost would be allowable, but the remaining balance would need to be allocated during the remainder of the subscription period as a prepaid cost for any funding streams that it benefits.

Any new expenditures or non-prepaid allocable expenses incurred beyond the project end date are unallowable. Per the DOJ Grants Financial Guide, Part III. Postaward Requirement, 3.

2 Period of Availability of Funds, Obligation of Funds “Financial obligations, when referencing a recipient's or subgrantee's use of funds under a Federal award, means orders placed for property and services, contracts and subawards made, and similar transactions that require payment. Financial obligations must occur during the period of performance stated on the award document.

A financial obligation occurs when there is a binding agreement, such