U.S. Department of Homeland Security 
Washington, DC 20472 


Grant Programs Directorate Information Bulletin 
No. 275 
January 4, 2008 


TO: 
All FY 2007 Port Security Grant Program Supplemental Tier I and Tier II Fiduciary 
Agents 

FROM: 
Tracey Trautman 

Director, Grant Development and Administration 

Federal Emergency Management Agency 

SUBJECTS: 1. Management and Administrative Costs for Tier I and Tier II Port Security Grant 
Award Sub-Recipients under the FY 2007 Supplemental Port Security Grant Program. 

2. Clarification on the 25 percent non-federal share cost share requirement for Tier I 
and Tier II Fiduciary Agents under the FY 2007 Supplemental Port Security Grant 
Program (PSGP). 
The purpose of this Information Bulletin (IB) is to (1) provide clarification on the amount that sub-
grantees receiving a pass-through from the Fiduciary Agent (FA) may retain for management and 
administrative (M&A) purposes; and (2) provide clarification on the 25 percent non-federal share cost 
share requirement for Tier I and Tier II Fiduciary Agents under the FY 2007 Supplemental Port Security 
Grant Program (PSGP). 

1. Per the 2007 Supplemental PSGP Guidance, a maximum of 3 percent of the total award may 
be retained by the applicant to be used solely for management and administrative purposes 
associated with the PSGP Award. For Tier I and Tier II port areas, applicants under the FY 2007 
Port Security Grant Program Supplemental are the Fiduciary Agents. 
The FA is also the conduit through which federal grants may be passed onto sub-recipients, also 
known as sub-grantees. Sub-grantees receiving pass-through funds from the FA may use up to 

2.5 percent of their sub-award for management and administration purposes. This guidance is 
consistent with other Infrastructure Protection Program grant programs. 
M&A costs are defined as: 

• 
Costs associated with the hiring of full-time or part-time staff, contractors or 
consultants and M&A expenses related to pre-application submission management 
activities and application requirements or meeting compliance with grant reporting or 
data collection requirements, including data calls, 
• 
Costs incurred for the development of operating plans for information collection and 
processing necessary to respond to DHS data calls; and 
• 
Travel expenses. 
www.fema.gov 


The FA serves as the principal point of contact with FEMA for application, management and 
administration of the FY 2007 Supplemental PSGP award. However, the FA is not the sole 
decision maker on the use of these funds. The awards are conditioned so that a regional 
consensus, in conjunction with the Port-Wide Risk Management/Mitigation and Business 
Continuity/Resumption of Trade Plan, must be reached on how the funding is to be used. 

Fiduciary Agents are responsible for ensuring that all sub-recipients are compliant with the terms 
and conditions of the award and that all sub-recipients are in compliance with organizational audit 
requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit 
Organizations. 

2. For projects submitted through the FA as Investment Justification requests under the Port 
Wide Strategic Risk Management Plan, the non-federal cost share requirement is 25 percent of 
the total project cost. Because the FA represents and serves on behalf of the AMSC, a public 
sector entity, the public cost share of requirement of 25 percent is applicable. 
Public and private entities are encouraged to work together to meet the cost share requirements. 
Grant recipients are reminded that the they have the full 36 month award period to provide the 
cost share. The cost share does not have to be provided up-front. 

For programmatic questions regarding the FY 2007 Supplemental PSGP, please e-mail 
portsecuritygrants@dhs.gov or contact your Program Manager.