Form 85, submitted to the funding

tion of Program Account Amendment. contracts, a grantee may change the delegate agency's total funding level

from that estimated on the Adminis

(g) Additional required documents 8 1067.40–4 Amendments. when grant funds are used as venture capital. When a grantee proposes to

(a) Grantee flexibility. (1) Grantees undertake an activity using Title II

may make changes in the distribution funds as venture capital, the venture

of money within and between program must be reported as an activity on

accounts during the program year for CSA Form 419 of the grant applica

which the money has been granted tion, for which the appropriate Stand

and certain other changes described ards of Effectiveness (8 1067.4) must

below. In order to make some of these be addressed. If the grantee will not

changes grantees must have prior peroperate the venture itself, it shall ar

mission from the Community Services range to sign a contract with the orga

Administration but they do not need nization which will operate the ven

prior permission if the changes are ture. See $ 1063.131 of this chapter for

made within the allowed flexibility. a discussion of the requirements when

(See viii below.) Where prior permiscontracting with an organization to

sion is required, an amendment reperform a component of the grant

quest must be submitted to the CSA work program. In addition, the grant

Administering Office

as described ee shall submit the following materi

below. Following are the various types als, as appropriate, in support of the

of changes possible: Form 419:

(i) Changes in the total program (1) Documentation that there will be

level. No change may be made by the no substantial negative impact on ex

grantee which changes the total proisting small businesses;

gram level. Such a change must be (2) Appropriate feasibility studies

made by a supplemental grant (in the and cost analyses;

case of an increase) or a deobligation (3) Certified balance sheets and

or reprogramming action (in the case profit and loss statements for the im

of a decrease). mediately preceding three years or

(ii) Decrease in the level of other from the commencement of its oper

than Section 221 Program. The grantation (whichever period is shorter) if

ee may not apply any funds for profunds are to be used for the acquisi

grams authorized under section 222 or tion, preservation, or expansion of an

section 231 to any program except existing business venture;

that for which it was granted. If the (4) Cash-flow projections and pro

level of these programs is to be deforma profit and loss statements and

creased, it should be accomplished by balance sheets estimated on a monthly

a deobligation action on a CSA Form basis for two years;

314. (5) Resumes of the management

(iii) Increase in the level of other team;

than a Section 221 Program. The (6) The articles of incorporation and

grantee may apply funds for programs the bylaws of the venture.

authorized under section 221 to any (h) Special CSA requests for grantee

other CSA funded program run by the documentation. In accordance with

grantee, so long as neither work proOMB Circular A-110 and FMC 74-7,

gram is changed beyond what is alCSA reserves the right to require addi

lowed in (viii) below and it is within tional documentation in any areas of

the flexibility rules. No prior CSA perplanning, specifications of work pro

mission is needed for such a change. grams, or budget details if the grantee

However, the Administering Office in has a history of poor performance, is

CSA must be informed of such & not financially stable, or if its manage

change on a CAP Form 25b, Justificament system does not meet the Uniform Federal Standards promulgated

(iv) Changes in under Part 1050 (6800 series of CSA's

agency funding levels. In executing directives system).

administering

[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)

tering Agency Funding Estimate, CAP

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 disti

the delegate agency's total funding days of the change, on a CAP Form level (Federal and Non-Federal share) 25b marked: “Change within flexibil

estimated on the CAP Form 85 (or ity; information only.” Such changes ram

$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 an 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 smalier, without prior CSA approvmat! count level more than the flexibility al. le trill allowed in any one Program Year. (See (2) Thiis flexibility (10 percent or ge a 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 int number of staff positions, or create

approval. new positions without CSA approval, (C) Changes made within flexibility ve Provided, That such changes:

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

cial Status Report. The Administering (B) Are in accordance with CSA and Office retains the right to disapprove spend 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 remains in the same Program Account. carryover funds assigned and in the (B) Nothing in the foregoing shail new obligational authority approved

prohibit the Administering Office for a program account. This form of amendment affects only the manner

from allowing the grantee to make

changes, via formal amendment procein which 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 (viii) Changes between Section 221

foregoing shall prohibit the Regional

Office or the funding office within Program Accounts. (A) Funds may be shifted between section 221 accounts;

CSA from disapproving changes which from section 221 accounts to section

would normally be allowed under the

flexibility procedures described above, 222 accounts subject to the flexibility rules listed below. The Administering

Providing, That notice of such a prohibition shall be given to the grantee

duction of funds.

21 22. do 23...

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