Page images


cated at least six months prior to the end of each grantee's current program year.

(d) Grantee internal planning, programming and budgeting procedures. (1) Grantees are responsible for the development and maintenance of complete documents related to planning, description of work plans, and budgets backup detail. Grantees will have flexibility in developing planning documents but they must address at least the following: (i) Incidence of poverty; (ii) problems and causes of poverty; (iii) assignments of priorities to the solutions of these problems; (iv) goals of the agency for the proposed funding period; (v) apprcaches to be used; (vi) resources to be mobilized; and (vii) how available public and private resources can be utilized.

(2) A copy of the grantee current plans must be on file with CSA for grantees seeking refunding at least 150 days prior to the end of the program year. Resubmission is required as necessary justify work program changes, or new funding requests or to document changes to grantee plans. Detailed grantee backup documents for support of submitted work programs and budget detail do not have to be submitted to the Administering Office; but must be available to CSA for review upon request. The document must have clear, concise milestones in order for CSA to measure performance of the grantee and to establish cost performance analysis.

(3) Evidence of approval by the Grantee Board of grantee plans, priorities, proposed programs, and budgeted items, or changes to these plans, programs or budget items, must be specifically annotated in the Minutes to the Board Meeting(s) at which these items are discussed. It is not necessary that such minutes be submitted to CSA as part of the grant application.

The planning document must also provide evidence of participation of the poor in the development and implementation of the plan.

(e) Field prereview. (1) In some cases, grantees may be requested by Administering Offices to participate in prefunding conferences dealing with matters related to grantee eligibility

submission of approved grant package to Governor's office.

Note: Submission to Governor's office does not apply to any institution of higher education, as defined in Section 401(f) of the Higher Education Facilities Act of 1963, which was in existence on or prior to August 20, 1964.

(12) Submission of approved grant documents to grantee for acceptance.

(13) Grantee returns signed CSA Form 314 to administering office.

(14) Governor responds or 30 day waiting period elapses.

(15) Funds release accomplished.

(b) Initial inquiry. Applicants for grants under Sections 221, 222(a) and 231 who are not currently funded by CSA should make an initial inquiry to CSA, by either letter or telephone, prior to submitting a written application unless, of course, the program guidelines for a program indicate a specific office or individual to be contacted. Such inquiry is essential to determine the appropriate program authority under which application should be made, the availability of funds, funding timetable and deadlines, special requirements for particular programs, specific instructions and procedures for determining eligibility and for submitting a formal application. All inquiries should be directed to the appropriate Regional Office unless otherwise indicated in specific program guidelines. Initial inquiries will normally not be necessary for current recipients of Title II grants since the CSA Administering Office will be in contact with the grantee with regard to the refunding of the grant. Any inquiries on refunding, however, should be addressed directly to the appropriate Administering Office.

(c) Program and funding guidance. In place of the Letter of Understanding prescribed by OEO Instruction 6710-1, August, 1968, necessary funding guidance required for preparation of plans, programs or budgets, will be communicated at the earliest feasible date to grantees. It is expected that the funding guidance will be communi

'Individuals, political parties, and forprofit organizations, partnerships and corporations are ineligible for assistance under these Sections.

to receive CSA funds, grantee planning or work programs, planned or requested funding levels, or matters related to grantee involvement in local community poverty planning, mobilization of local resources, or other such matters deemed by the Administering Office to be essential to the initial

funding or continued funding of the program by CSA.

(2) The timing of such conferences will be scheduled to permit prompt grant refundings.

(f) Required documents-(grantee). (See chart which follows.)



[ocr errors]
[ocr errors]

Sections of the
act under which
funds requested


1. 221:
A. Initial funding... Community action agency

Limited purpose agency (including

B. Refunding. Community action agency.

Limited purpose agency (including

II. 222:
A. Initial funding... Community action agency.

Limited purpose agency (including

B. Refunding. Community action agency.

Limited purpose agency (including

III. 231

State economic opportunity offices

For refundings, submission will be 150 days prior to PYE.
2 Except SEOO'S.
3 Keep on file.
* Except sec. 1.
5 Except Program Account 01.


(g) Additional required documents when grant funds are used as venture capital. When a grantee proposes to undertake an activity using Title II funds as venture capital, the venture must be reported as an activity on CSA Form 419 of the grant application, for which the appropriate Standards of Effectiveness (§ 1067.4) must be addressed. If the grantee will not operate the venture itself, it shall arrange to sign a contract with the organization which will operate the venture. See § 1063.131 of this chapter for a discussion of the requirements when contracting with an organization to perform a component of the grant work program. In addition, the grantee shall submit the following materials, as appropriate, in support of the Form 419:

(1) Documentation that there will be no substantial negative impact on existing small businesses;

(2) Appropriate feasibility studies and cost analyses;

(3) Certified balance sheets and profit and loss statements for the immediately preceding three years or from the commencement of its operation (whichever period is shorter) if funds are to be used for the acquisition, preservation, or expansion of an existing business venture;

(4) Cash-flow projections and pro forma profit and loss statements and balance sheets estimated on a monthly basis for two years;

(5) Resumes of the management team;

(6) The articles of incorporation and the bylaws of the venture.

(h) Special CSA requests for grantee documentation. In accordance with OMB Circular A-110 and FMC 74-7, CSA reserves the right to require additional documentation in any areas of planning, specifications of work programs, or budget details if the grantee has a history of poor performance, is not financially stable, or if its management system does not meet the Uniform Federal Standards promulgated under Part 1050 (6800 series of CSA's directives system). (42 FR 10689, Feb. 23, 1977, as amended at 42 FR 18402, Apr. 7, 1977; 42 FR 22365, May 3, 1977; 45 FR 39850, June 12, 1980)

8 1067.40-4 Amendments.

(a) Grantee flexibility. (1) Grantees may make changes in the distribution of money within and between program accounts during the program year for which the money has been granted and certain other changes described below. In order to make some of these changes grantees must have prior permission from the Community Services Administration but they do not need prior permission if the changes are made within the allowed flexibility. (See viii below.) Where prior permission is required, an amendment request must be submitted to the CSA Administering Office described below. Following are the various types of changes possible:

(i) Changes in the total program level. No change may be made by the grantee which changes the total program level. Such a change must be made by a supplemental grant (in the case of an increase) or a deobligation or reprogramming action (in the case of a decrease).

(ii) Decrease in the level of other than Section 221 Program. The grantee may not apply any funds for programs authorized under Section 222 or Section 231 to any program except that for which it was granted. If the level of these programs is to be decreased, it should be accomplished by a deobligation action on a CSA Form 314.

(iii) Increase in the level of other than a Section 221 Program. The grantee may apply funds for programs authorized under Section 221 to any other CSA funded program run by the grantee, so long as neither work program is changed beyond what is allowed in (viii) below and it is within the flexibility rules. No prior CSA permission is needed for such a change. However, the Administering Office in CSA must be informed of such a change on a CAP Form 25b, Justification of Program Account Amendment.

(iv) Changes in administering agency funding levels. In executing contracts, a grantee may change the delegate agency's total funding level from that estimated on the Administering Agency Funding Estimate, CAP Form 85, submitted to the funding

office, Provided, That the sum of such changes does not exceed 25 percent of the delegate agency's total funding level (Federal and Non-Federal share) estimated on the CAP Form 85 (or $150,000 whichever is less). Changes exceeding 25 percent or $150,000 must have prior written approval from CSA Administering Office.

(v) Changes in work programs. A grantee may change the work program without prior CSA permission only if the changes:

(A) Do not constitute a basic change in objective, strategy, implementation plan or activities of the program;

(B) Do not increase or decrease by more than 20 percent the estimated number of participants, trainees or enrollees;

(C) Do not change the program account level more than the flexibility allowed in any one Program Year. (See paragraph (a)(1)(viii) of this section.)

(vi) Changes in salary and position. A grantee may change salaries or the number of staff positions, or create new positions without CSA approval, Provided, That such changes:

(A) D not exceed wage comparability standards and grantee salary schedule;

(B) Are in accordance with CSA and grantee personnel policies;

(C) Do not result in work program changes for which CSA approval is required, as outlined in above, and

Provided, That CSA has not previously notified the grantee in writing that such a position may not be established. Written CSA approval must be obtained for all other changes in salaries and positions.

(vii) Changes in the arount of carryover funds assigned and in the new obligational authority approved for a program account. This form of amendment affects only the manner in which a program account is funded, not its budget or work program and is always initiated by CSA. It may result in a supplemental grant action or reduction of funds.

(viii) Changes between Section 221 Program Accounts. (A) Funds may be shifted between Section 221 accounts; from Section 221 accounts to Section 222 accounts subject to the flexibility rules listed below. The Administering

Office must be informed of changes within flexibility within at most 30 days of the change, on a CAP Form 25b marked: "Change within flexibility; information only.” Such changes made within flexibility are permitted only if they do not require prior CSA approval for any other reasons, for example, if the work program will be substantially altered (see paragraph (a)(1)(v) of this section). Obviously no funds can be moved into a program account not currently used by the grantee since that would more certainly involve a basic work program change and the move would increase the new account by more than 10 percent.

(B) Flexibility rules. (1) No account may be increased or decreased by more than 10 percent of $100,000, whichever is smaller, without prior CSA approval.

(2) This flexibility (10 percent or $100,000 whichever is smaller) is the total flexibility to be allowed in any one Program Year without prior CSA approval.

(C) Changes made within flexibility (as well as those made beyond flexibility with CSA permission) must show up immediately on the SF269, Financial Status Report. The Administering Office retains the right to disapprove any changes, even those which would fall within flexibility.

(ix) Changes between personnel and non-personnel costs. (A) Grantees may alter the budget submitted by moving funds between personnel and non-personnel categories without prior CSA permission, as long as no ork changes outlined in paragraph (a)(1)(v) of this section are involved when the money remains in the same Program Account.

(B) Nothing in the foregoing shall prohibit the Administering Office from allowing the grantee to make changes, via formal amendment procedures, in the Work Program or the distribution of CSA administered funds which exceed the flexibility provisions described above. Also nothing in the foregoing shall prohibit the Regional Office or the funding office within CSA from disapproving changes which would normally be allowed under the flexibility procedures described above, Providing, That notice of such a prohibition shall be given to the grantee

« PreviousContinue »