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reliance and be concerned with solidly submission of approved grant package establishing community action con- to Governor's office. cepts so that these achieve a genuine

Note: Submission to Governor's office self-sustaining life on their own. In

does not apply to any institution of higher order to furnish grantees support for

education, as defined in Section 401(f) of this evolution, CSA has permitted, and

the Higher Education Facilities Act of 1963, will continue to permit, flexibility in

which was in existence on or prior to August developing, justifying, and locally im 20, 1964. plementing the means for planning,

(12) Submission of approved grant programming and budgeting to meet the perceived needs of their constitu

documents to grantee for acceptance. encies. For local initiative programs

(13) Grantee returns signed CSA funded under Section 221 of the Eco

Form 314 to administering office. nomic Opportunity Act, the grantee

(14) Governor responds or 30 day has been given increased responsibility

waiting period elapses. to select and develop the programs (15) Funds release accomplished. which will be most meaningful to its (b) Initial inquiry. Applicants for community. The implementation of grants under Sections 221, 222(a) and such grantee plans and programs re 231 who are not currently funded by mains subject to the approval of the CSA should make an initial inquiry to grantee's governing board. CSA exer CSA, by either letter or telephone, cises its program review authority prior to submitting a written applicathrough continuous monitoring and tion unless, of course, the program evaluation of performance, review for guidelines for a program indicate a compliance for eligibility and auditing specific office or individual to be confor financial management evaluation. tacted. Such inquiry is essential to de

termine the appropriate program au$ 1067.40-3 Application process for funds

thority under which application under Title II, Sections 221, 222(a), and

should be made, the availability of 231 of the EOA.

funds, funding timetable and dead(a) Overview of the application proc- lines, special requirements for particuess. The grant application process for lar programs, specific instructions and Title II funding consists of the follow- procedures for determining eligibility ing steps which, except as noted, apply and for submitting a formal applicato all initial and refunding grants: tion. All inquiries should be directed

(1) Initial inquiry (initial grants to the appropriate Regional Office only).

unless otherwise indicated in specific (2) Submission of notification of program guidelines. Initial inquiries intent to clearinghouse by applicant. will normally not be necessary for cur

(3) Submission of documents re eligi rent recipients of Title II grants since bility for funding to Administering the CSA Administering Office will be Office.

in contact with the grantee with (4) Determination or verification of regard to the refunding of the grant. grantee eligibility by Administering Any inquiries on refunding, however, Office.

should be addressed directly to the ap(5) Planning Process undertaken by propriate Administering Office. applicant.

(c) Program and funding guidance. (6) Receipt of program and funding In place of the Letter of Understandguidance.

ing prescribed by OEO Instruction (7) Field Pre-review (optional)

6710-1, August, 1968, necessary fund(8) Submission of formal application. ing guidance required for preparation

(9) Review by Administering Office of plans, programs or budgets, will be of grant application.

communicated at the earliest feasible (10) If acceptable, recommendation date to grantees. It is expected that for funding and submission of grant funding documents to Headquarters

Individuals, political parties, and forfunding official for action.

profit organizations, partnerships and cor(11) If approved, and after Congres- porations are ineligible for assistance under sional release has been accomplished, these Sections.

the funding guidance will be communicated 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) approaches 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 to 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 per

formance 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 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.)

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(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).

& 1067.40-4 Amendments.

(a) Grantee flexibility. (1) Grantee: may make changes in the distribution of money within and between progran accounts during the program year fo which the money has been grante and certain other changes describe below. In order to make some of thes changes grantees must have prior per mission from the Community Service Administration but they do not nee prior permission if the changes ar made within the allowed flexibility (See viii below.) Where prior permis sion is required, an amendment re quest must be submitted to the CSH Administering Office as describes below. Following are the various type: of changes possible:

(i) Changes in the total program level. No change may be made by the grantee which changes the total pro gram 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

[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)

office, Provided, That the sum of such Office must be informed of changes changes does not exceed 25 percent of within flexibility within at most 30 the delegate agency's total funding days of the change, on a CAP Form level (Federal and Non-Federal share) 25b marked: “Change within flexibilestimated on the CAP Form 85 (ority; information only.” Such changes $150,000 whichever is less). Changes made within flexibility are permitted exceeding 25 percent or $150,000 must only if they do not require prior CSA have prior written approval from CSA approval for any other reasons, for exAdministering Office.

ample, if the work program will be (v) Changes in work programs. A substantially altered (see paragraph grantee may change the work program (a)(1)(v) of this section). Obviously no without prior CSA permission only if funds can be moved into a program acthe changes:

count not currently used by the grant(A) Do not constitute a basic change ee since that would more certainly inin objective, strategy, implementation volve a basic work program change plan or activities of the program;

and the move would increase the new (B) Do not increase or decrease by account by more than 10 percent. more than 20 percent the estimated (B) Flexibility rules. (1) No account number of participants, trainees or en- may be increased or decreased by more rollees;

than 10 percent of $100,000, whichever (C) Do not change the program ac is smaller, without prior CSA approvcount level more than the flexibility al. allowed in any one Program Year. (See (2) This flexibility (10 percent or paragraph (a)(1)(viii) of this section.) $100,000 whichever is smaller) is the

(vi) Changes in salary and position total flexibility to be allowed in any A grantee may change salaries or the one Program Year without prior CSA number of stafi positions, or create approval. new positions without CSA approval, (C) Changes made within flexibility Provided, That such changes:

(as well as those made beyond flexibil(A) Do not exceed wage comparabil- ity with CSA permission) must show ity standards and grantee salary up immediately on the SF269, Finanschedule;

cial Status Report. The Administering (B) Are in accordance with CSA and Office retains the right to disapprove grantee personnel policies;

any changes, even those which would (C) Do not result in work program fall within flexibility. changes for which CSA approval is re (ix) Changes between personnel and quired, as outlined in above, and

non-personnel costs. (A) Grantees may Provided, That CSA has not previ. alter the budget submitted by moving ously notified the grantee in writing funds between personnel and non-perthat such a position may not be estab sonnel categories without prior CSA lished. Written CSA approval must be permission, as long as no work changes obtained for all other changes in sala outlined in paragraph (a)(1)(v) of this ries and positions.

section are involved when the money (vii) Changes in the amount of car remains in the same Program Account. ryover funds assigned and in the new (B) Nothing in the foregoing shall obligational authority approved for a prohibit the Administering Office program account. This form of amend from allowing the grantee to make ment affects only the manner in changes, via formal amendment procewhich a program account is funded, dures, in the Work Program or the disnot its budget or work program and is tribution of CSA administered funds always initiated by CSA. It may result which exceed the flexibility provisions in a supplemental grant action or re- described above. Also nothing in the duction of funds.

foregoing shall prohibit the Regional (viii) Changes between Section 221 Office or the funding office within Program Accounts. (A) Funds may be CSA from disapproving changes which shifted between Section 221 accounts; would normally be allowed under the from Section 221 accounts to Section flexibility procedures described above, 222 accounts subject to the flexibility Providing, That notice of such a prorules listed below. The Administering hibition shall be given to the grantee

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