(3) The provisional approval by CSA of an indirect cost rate in a budget is subject to final negotiation and/or adjustment based upon an audit.

[41 FR 26689, June 29, 1976, as amended at 45 FR 64940, Oct. 1, 1980]

§ 1067.17-5 CSA Form 325, budget sum

mary.

This form will be used in all initial and refunding grants and all budget amendments.

(a) Initial Grants. Applicants for initial grants should complete only items 1, 2, 3B, Columns E(1) and (2) of Section I, and item 1 of Section II on the CSA Form 325. Where the applicant has been informed that non-Federal share is not required Column E(2) should be left blank.

(b) Refunding Grants. Applicants for refunding should complete items 1 through 3 Columns C(1) and (2) and E(1) and (2) of Section I, and item 1 of Section II of the CSA Form 325. Where non-Federal share is not required Columns C(2) and E(2) should be left blank. The figures in Column C should be taken directly from Column F of the CSA Form 325 of the last previous OED grant or amendment action. Any adjustments within the grantee's flexibility should be included. The figures in Column E for refunding actions should reflect the total budget authority requested which may be greater than the amount of new funding requested if the grantee has unexpended balances from the current grant. The figures in Column E should not be reduced by the amount of such unexpended balances. The most recent OEO Form 315a, Quarterly Financial Report, Support Data Sheet, must be attached to the 325 as support for the amount of unexpended funds claimed in Block 3D.

(c) Budget Amendments. For all categories of amendments 1, 2, 3.A, and 3.C on the CSA Form 324 are self-explanatory, Columns C (1) and (2) should show the safe figures appearing in Columns F (1) and (2) of the last previous CSA Form 325 approved by OED (unless adjusted by the grantee within the flexibility), and Section II should be omitted. Instructions for

completing items 3.B and 3.D and columns D and E vary depending on the nature of the amendment request, as follows:

(1) Increase in Total Program Costs-No Additional Funds. This type of amendment is required when the grantee has previously underestimated, at the time of the last refunding, the amount of unexpended CSA funds, and now is requesting authority to use those unexpended funds. Item 3.B should indicate the beginning and ending dates of the current funding period. Item 3.D should indicate the amount of unexpended CSA funds at the end of the prior funding period above and beyond the amount of CSA funds previously estimated by the grantee to be unexpended. For example, if the grantee previously, at the time of refunding, estimated unexpended funds to be $20,000, and the actual unexpended balance was $50,000, the figure in Item 3.D should be the difference, or $30,000. In item 3.D cross out the word "current" and substitute "prior". Column D should be completed so that the total of Column D(1) should equal the amount in item 3.D, with the total additional budget authority requested allocated to one or more cost categories. Column E should be a total, by cost category of Columns C and D.

(2) Increase in Total Program Costs-Supplementary Funds. (i) The beginning date in item 3.B should be the beginning date of the current funding period. If the amendment request is to supplement the current grant without extending the funding period beyond the current termination date, the ending date in item 3.B should be the termination date of the current funding period. If the request is to both supplement and extend the grant, the ending date in item 3.B should be the ending date of the requested extension. (NOTE: If the period of extension exceeds four months refunding application procedures should be followed.)

(ii) Item 3.D will normally be left blank, unless the grantee is both requesting authority to use unexpended funds and requesting additional new funds as well, in which case item 3.D will be completed as in section (i)

above. Columns D (1) and (2) should be completed to show, by cost category, the amount of additional budget authority requested. Where item 3.D has been left blank, the amount of the supplementary funds requested will equal the additional budget authority requested; where unexpended funds have been shown in item 3.D, the difference between the additional budget authority requested and the unexpended funds. Columns E (1) and (2) will be the totals of Columns C(1) and D(1) and of C(2) and D(2), respectively. If an extension of the funding period is being requested in addition to supplementary funds, the number of months of operation shown in Column E should be the total of the current funding period and the extension period.

(3) Shifts between cost categories. (i) Sections 1067.16-1 through 1067,16-7 (CSA Instruction 6710-7) provides instructions as to the flexibility which each grantee has in shifting funds between cost categories. For shifts in excess of that flexibility a budget amendment request is required. The beginning and ending dates in item 3.B should be the beginning and ending dates of the current funding period. Item 3.D should be left blank. Column D should show the requested increase or decrease in cost category 2.5, Investment Capital, or (for those few research or demonstration grants where indirect costs have been approved) the requested increase in cost 3.0, Indirect Costs and the offsetting decreases in one or more other cost categories.

(ii) Increase should be designated with plus (+) signs; decreases with minus (-) signs. The total Column D should be zero (0), since the total increases will be offset by the total decreases. Column E should be a total, by cost category, of Column C and D. The total for Column E will be the same as the total for Column C.

(4) No-cost extensions of four to twelve months. (i) Normally, when the funding period of a grant is extended for more than four months beyond its current termination date the extension is considered a refunding, subject to the requirements of § 1067.15-1 through § 1067.15-12 (CSA Instruction 6710-6). However, since no-cost exten

sion from four to 12 months involve the obligation of no additional funds and extend the grant for periods shorter than a normal refunding period, the documentary and procedural requirements applicable are those of an amendment. No-cost extensions of more than 12 months are subject to refunding procedures.

(ii) Since a no-cost extension of four to 12 months is in effect a refunding, the CSA Form 325 that accompanies this form of amendment request is prepared as if a refunding were being requested. Accordingly, the beginning and ending dates in item 3.B should be the appropriate dates for the period of the extension, i.e., the day after the current grant's termination date and the day the extension period will end. Item 3.D should always be completed, since if there are no unexpended funds available to cover costs to be incurred during the extension period a supplementary grant rather than a nocost extension would be required. The figure to be inserted in item 3.D will be the unexpended balance as of the end of the current grant. The most recent OEO Form 315a, Quarterly Financial Report, Support Data Sheet, must be attached to the 325 as support for the amount of unexpended funds claimed in block 3.D.

(iii) Since this kind of amendment request is prepared as a refunding, Column D of the CSA Form 325 should be left blank. Column E should be completed, showing the requested budget, by cost category, for the period of the extension (rather than a budget for the combined current period and the extension period). The total of Column E(1) should equal the figure in item 3.D since the requested budget is in effect a plan for using the unexpended funds available.

Subpart 1067.30-Preparation of CSA Form 314, Statement of CSA Grant (CSA Instruction 6710-CH10)

SOURCE: 41 FR 56197, Dec. 27, 1976, unless otherwise noted.

§ 1067.30-1 Applicability.

This subpart applies to all grants to public and private organizations made

under Titles II, III-B, and VII of the Community Services Act when such assistance is administered by the Community Services Administration.

§ 1067.30-2 Definitions of terms as used in this subpart.

(a) A program year is a grantee's 12month accounting period. For community action agencies, this is the funding period for the principal grant that provides funds for most of the grantee's administrative costs. For other agencies funded by CSA this is their usual 12-month accounting period which may or may not correspond with the funding period of their grant(s) from CSA.

(b) A program account funding period extends from the effective date of a new or refunding action (Item 3) through the termination date (Item 12) or expiration of planned number of months for which funding is provided (Item 13). (See attached CSA Form 314.)

(c) Unobligated balances1 (i.e., Unexpended funds) is that portion of the funds authorized by CSA which has not been obligated by the grantee prior to program year end or other 12month accounting period.

(d) Obligations is that amount of orders placed, contracts and grants awarded, services received, and similar transactions during a given period which will require payment during the same or future period.

§ 1067.30-3 Purpose.

This subpart provides for:

(a) Use of a single grant number for each grantee;

(b) Use of CSA Form 314, Statement of CSA Grant, as the basic action document; and

(c) Grantees' use of funds through the program account funding period. A grantee may not incur expenses under its program account after the termination date entered in column 12 of CSA Form 314, or after the expiration of the planned number of months for which funding is provided (column 13 of CSA Form 314). Except as provided in paragraphs (c)(1) and (2) of

'Source: OMB Circular A-110 and FMC

74-7.

this section grant funds that are not expended by the end of the program account funding period must be returned to the Office of Community Services (OCS) in accordance with 45 CFR 1050.112(b).

(1) Exception. Under a grant with a planned minimum number of months which expires before June 24, 1982 funds may be used until June 24, 1982.

(2) Extensions and reprogramming. If a grantee applies for an extension of time in which to use the funds under its approved work program, OCS may extend the program account funding period under such terms and conditions as it deems appropriate. Alternatively, OCS may reprogram unexpended funds as part of a new grant action if the grantee is awarded an OCS grant pursuant to the block grant transition provisions of 42 U.S.C. 9911.

[41 FR 56197, Dec. 27, 1976, as amended at 47 FR 22535, May 25, 1982]

§ 1067.30-4 Policy.

(a) All grants made to the same organization will be identified by a single grant number.

(b) The Statement of CSA Grant, CSA Form 314, is the basic action document completed by CSA and sent to the grantee. CSA Form 314 is also an acceptance document upon which the grantee indicates his acceptance of the grant action with all attached conditions.

(c) Approval of a CSA grant or funding action means that Federal funds have been awarded to the grantee for the purpose of carrying out an approved work program. Specifically, CSA Form 314, Statement of CSA Grant, is used to:

(1) Approve an amount of Federal funds and specify the required nonFederal share percentage and amount for each program account;

(2) Approve transfers of funds between program accounts when required (reference OEO Instruction 6710-1, Change 3, relating to flexibility guidelines);

(3) Approve program extensions where no change in funding is involved; and

(3) Item 2-Fund source code (FS). This space contains an applicable alphabetic character identifying the source of CSA funds from among the following:

F-Office of Economic Development.
G-Office of Operations.

J-Boston Region (1).
K-New York Region (2).
L-Philadelphia Region (3).
M-Atlanta Region (4).

N-Chicago Region (5).

P-Dallas Region (6).

Q-Kansas Region (7).
R-Denver Region (8).
S-San Francisco Region (9).
T-Seattle Region (0).

(4) Item 2-Federal fiscal year (FFY). This refers to the Federal fiscal year in which funds are awarded (i.e., for the Federal Fiscal Year ending September 30, 1977, 77 would be entered).

(5) Item 2-Action number. This is a consecutive number assigned by the funding office to identify each funding action by grantee within a Federal fiscal year. For example the number "01" will be assigned to the first funding action by a Regional Office; the number "01" will likewise be assigned to the first funding action by a Headquarters Program Office and so on through the end of the Federal fiscal year, at which time the fundings in the next fiscal year would begin with "01."

(6) Item 3-Effective date. This is the effective date of the funding action; i.e., obligations, deobligation, extension, etc. If funds are being obligated, grantees may not incur costs against

this funding action before the date shown in this block.

(7) Item 4-Obligation date. This is the date on which a grant action (CSA Form 314) obligating new funds is mailed to the Governor or grantee. Enter the effective date (Item 3) for all other types of actions, e.g., deobligations, extensions, etc.

(8) Item 5-Program year. This section will show the grantee's program year. This period will not necessarily agree with the period for which funds are awarded. However, whenever possible the grantee's fundings will coincide with the grantee's program year.

(9) Item 6-Program account number. This will show the program accounts (i.e., 01, 05, 55, etc.) as explained in CSA Instruction 6100-la, Program Account Structure, funded by this grant action.

(10) Item 7-Program activity code (PAC). This code is for identification of CSA obligations, as explained in OEO Staff Manual 2135-1, Accounting Codes.

(11) Item 8-Program account name. This will show the program account being funded by this grant action by name. Refer to OEO Instruction 61001a, Program Account Structure.

(12) Item 9-Federal funds awarded this action. (i) Funds awarded. This column shows the amount of Federal funds awarded by this action. An amount will be shown for each program account funded by this action and the total shown at the bottom of the column. Previous amounts awarded to the grantee will not be shown on this form.

(ii) Funds deobligated. A deobligation of Federal funds will be shown in this column by placing a minus (−) sign in front of the amount.

(iii) Funds transferred. This column is also used to reflect CSA's approval for the transfer of funds between program accounts (reference OEO Instruction 6710-1, Change 3) by placing the appropriate (+) and (-) in front of the amounts representing the increase and decrease. Only the amount being transferred will be reflected in this column and not the original amount awarded.

(13) Items 10 and 11-Non-Federal share. These columns show the per

centage and amount of non-Federal share required for each program account. If the non-Federal share is not required for a program account, not applicable (N/A) will be entered in this space. In no case will a figure higher than that legally or administratively required be entered.

(14) Item 12-Termination date. When a termination date is entered, expenses may not be incurred for the program account beyond this date. When this date is entered, this will determine the end of the program account funding period.

(15) Item 13-Planned number of months funding provided. This information is to assist the grantee in planning and budget control and in determination of the program account funding period.

(16) Item 14-Recommendation for approval. Contains name of appropriate Regional Director.

(17) Item 15-Statement of CSA approval. This item is self-explanatory.

(18) Item 16-Grantee acceptance of grant. This item is self-explanatory.

Subpart 1067.40-Applying for a

Grant Under Title II, Sections 221, 222(a), 231, and 232 of the EOA (CSA Instruction 6710-1 CH 11)

SOURCE: 42 FR 10689, Feb. 23, 1977, unless otherwise noted.

§ 1067.40-1 Applicability.

This subpart applies to all applications for funding under Title II, Sections 221, 222(a), 231 and 232 of the Economic Opportunity Act of 1964, as amended, when the assistance is administered by the Community Services Administration. The provisions of this subpart also may be extended to other programs under the Act when the applicable program regulations so indicate.

[42 FR 10689, Feb. 23, 1977, as amended at 46 FR 43691, Aug. 31, 1981]

§ 1067.40-2 Policy.

CSA continues to support the position stated in 1971 that grantees must increase their independence and selfreliance and be concerned with solidly establishing community action con

cepts so that these achieve a genuine self-sustaining life on their own. In order to furnish grantees support for this evolution, CSA has permitted, and will continue to permit, flexibility in developing, justifying, and locally implementing the means for planning, programming and budgeting to meet the perceived needs of their constituencies. For local initiative programs funded under Section 221 of the Economic Opportunity Act, the grantee has been given increased responsibility to select and develop the programs which will be most meaningful to its community. The implementation of such grantee plans and programs remains subject to the approval of the grantee's governing board. CSA exercises its program review authority through continuous monitoring and evaluation of performance, review for compliance for eligibility and auditing for financial management evaluation.

§ 1067.40-3 Application process for funds under Title II, Sections 221, 222(a), and 231 of the EOA.

(a) Overview of the application process. The grant application process for Title II funding consists of the following steps which, except as noted, apply to all initial and refunding grants:

(1) Initial inquiry (initial grants only).

(2) Submission of notification of intent to clearinghouse by applicant.

(3) Submission of documents re eligibility for funding to Administering Office.

(4) Determination or verification of grantee eligibility by Administering Office.

(5) Planning Process undertaken by applicant.

(6) Receipt of program and funding guidance.

(7) Field Pre-review (optional) (8) Submission of formal application. (9) Review by Administering Office of grant application.

(10) If acceptable, recommendation for funding and submission of grant funding documents to Headquarters funding official for action.

(11) If approved, and after Congressional release has been accomplished,

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