event the grantee does not have funds to continue.

(E) Cost category 2.3: Consumable supplies. Consumable supplies include desk top items-pens, pencils, paper, cellophane tape, staples, etc. If a grantee publishes a newsletter or if a support grantee provides a service requiring frequent contact with other grantees through the mails, the costs will be higher than average.

(F) Cost category 2.4: Lease and purchase of equipment and property. The rule of thumb to use in determining whether or not to lease or purchase equipment and property is: If 3 years' leasing cost is more than the purchase price plus servicing costs, it is more economical to purchase the equipment. If a grantee is leasing equipment, it frequently is an advantage to do so with the option to buy.

(1) Proposed purchases of property with a unit cost of more than $500 must be specifically approved by OED. Such purchases should be itemized in Part II of the 325a.

(G) Cost category 2.5: Investment capital. (1) This category includes such items as transportation of things, repairs, utilities, telephone, postage, insurance, bonding, etc.

(2) This category also includes stipends which may be paid to program beneficiaries to support them during their participation in a program.

(3) Dues for membership of the grantee in professional organizations may be included in this category, but only if the grantee's membership can be shown to be related to the purposes of the CSA grant. Dues paid for individual memberships, as contrasted with agency memberships, in professional organizations will not be allowed.

(4) Bonding should be secured in the aggregate amount of $25,000 for persons authorized to sign or countersign checks or disburse sizable amounts of cash. (See OEO Instruction 6809-01), and the costs for bonding included in this category.

(H) Cost category 3.0: Indirect costs. (1) The indirect costs of a project are those costs incurred by an organization for the joint benefit of the approved CSA program activity and other objectives, but not readily iden

tifiable with the CSA program itself— as in the operation and maintenance of buildings or in the payment of utility costs or administrative salaries.

(2) CSA funds are only provided for indirect costs applicable to research or demonstration projects conducted by institutions of higher education, State and Local governments, hospitals and other non-profit institutions. When a claim is made for indirect costs, the basis for the indirect cost rate must be explained in detail. If the applicant organization has negotiated an indirect cost rate with another Federal agency, the applicant should include an attachment to the CSA Form 325 showing the rate, Federal agency and date negotiated. CSA will review this established indirect cost rate and determine its acceptability.

(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 summary.

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 I 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 E last previous CSA Form 325 approved ths 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 and 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 a: 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) I 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

80-153 0-81--24

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 extension 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)

AUTHORITY: Sec. 602, 78 Stat. 530; 42 U.S.C. 2942.

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 balances 1 (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.

'Source: OMB Circular A-110 and FMC 74-7.

(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 until fully expended unless a termination date is entered in column 12 of CSA Form 314.2 Since all grant monies must be expended under an approved and current work program, CSA may reprogram such funds as part of subsequent grant actions.

§ 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

'Source: OMB Circular A-110 and FMC

74-7.

'As provided in OEO Instruction 6714-1 grantees should expend funds provided by old letters-of-credit before drawing down against a new letter-of-credit.

(a) A single grant number is used to identify CSA grants, regardless of the source of funding within CSA.

(b) The following explanations refer to specific items on CSA Form 314, Statement of CSA Grant:

(1) Item 1-Name and address of grantee. This item is self-explanatory. (2) Item 2-Grantee number. This space contains a five-digit number assigned by CSA. All funds awarded to a grantee will be identified by this number.

(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 6100-1a, 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 6100la, 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) AUTHORITY: Sec. 602, 78 Stat. 530; 42 U.S.C. 2942.

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 self