costs, grantees will be guided by costs charged by comparable organizations. Excessive costs will be disallowed.)

[42 FR 63171, Dec. 15, 1977, as amended at 45 FR 64940, Oct. 1, 1980]

§ 1068.30-3 Criteria for review.

(a) Review criteria. If a CSA funded organization proposes to expend CSA funds for membership in a state, regional or national association, it will assure that:

(1) Its purposes are closely related to that of the grant and to furtherance of the objectives of the EOA;

(2) The membership benefits the program/agency and not merely an individual;

(3) The organization has not been found to be unacceptable by CSA (see (b) below); and

(4) The professional organization to which membership dues will be paid is not providing funds or other support, directly or indirectly, to an organization or organizations which CSA has determined is not an appropriate recipient of membership dues derived from grant funds. (See paragraph (b) of this section.)

(b) Determination of acceptability. (1) CSA will make a determination as to the acceptability of organizations as recipients of membership dues where warranted. The determination may be based on the findings of audits conducted by CSA or undertaken by a third party on its behalf or other sources of information/data which will enable CSA to make the following determinations:

(i) That the activities of the organization are in furtherance of the objectives of the EOA, and

(ii) That the organization has an acceptable track record based on, where appropriate, such factors as:

(A) Administrative capability; (B) Soundness of its fiscal system; (C) Availability and acceptability of its audits;

(D) Procedures for and conduct of elections;

(E) Federal access to records; (F) Clear and concise recordkeeping, including travel expenditures.

(2) CSA intends to publish specific criteria and procedures for use by

Headquarters and Regional Offices in undertaking audits.

(3) The list of unacceptable organizations will be published as a revision to this subpart and to Attachment A of Instruction 6803-6 whenever there are changes to the list.

(4) Attachment A contains the name(s) of organizations currently found to be unacceptable. All other national, State and regional organizations are determined to be acceptable at this time if they are in conformance with the criteria outlined in §1068.303(a). However, CSA retains the prerogative to undertake reviews of other organizations at any time and subsequently to revise and publish the list. If CSA finds an organization to be unacceptable to receive CSA funds in payment of membership dues, CSA will also consider unallowable any other expenditures of grant funds, effective the date of the determination, which go to support directly or indirectly activities of this organization including travel to meetings or training seminars sponsored by such organization, payment of registration fees at such events, etc.

[42 FR 63171, Dec. 15, 1977, as amended at 45 FR 64940, Oct. 1, 1980]

ATTACHMENT A

LIST OF UNACCEPTABLE ORGANIZATIONS

National Association for Community Development (NACD)

Subpart 1068.42-Grantee Fiscal Responsibility and Auditing (CSA Instruction 6801-1 and 6801-1 Ch 1)

AUTHORITY: Sec. 602, 78 Stat. 530 (42 U.S.C. 2942); §1068.42-8 also issued under sec. 682(e), Pub. L. 97-35, 95 Stat. 519 (42 U.S.C. 9911).

SOURCE: 44 FR 56568, Oct. 1, 1979, unless otherwise noted.

§ 1068.42-1 Applicability.

This subpart applies to all grantees financially assisted under Titles II, IV, and VII of the Economic Opportunity Act of 1964, as amended, if such assistance is administered by the Community Services Administration. This subpart is not applicable to contractors under CSA procurement contracts.