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son engaged in carrying out the agen necessary or appropriate to carry out the cy's program.

provisions of this Act."

Sec. 603(a): "For purposes of Chapter 15 of APPENDIX A TO SUBPART 1069.8 Title 5 of the United States Code any overall

community action agency which assumes reEXCERPTS FROM THE COMMUNITY sponsibility for planning, developing, and coSERVICES ACT OF 1974

ordinating community-wide anti-poverty

programs and receives assistance under this Sec. 213.(a): “Each community action agen

Act shall be deemed to be a State or local cy shall observe, and shall (as appropriate)

agency; and for purposes of clauses (1) and (2) require or encourage other agencies partici

of section 1502(a) of such title any agency repating in a community action program to

ceiving assistance under this Act shall be observe, standards of organization, manage

deemed to be a State or local agency." ment and administration which will assure,

Sec. 603(b): “Programs assisted under this so far as reasonably possible, that all pro

Act shall not be carried on in a manner ingram activities are conducted in a manner consistent with the title and the objective of

volving the use of program funds, the proviproviding assistance effectively, efficiently,

sion of services, or the employment or asand free of any taint of partisan political

signment of personnel in a manner supportbias. ..." "Each community action agency

ing or resulting in the identification of such shall establish or adopt rules to carry out

programs with (1) any partisan or non-parthis section....”

tisan political activity or any other political Sec. 213(b): "The Director shall prescribe

activity associated with a candidate, or conrules or regulations to supplement sub

tending faction or group, in an election for section (a), which shall be binding on all

public or party office, (2) any activity to proagencies carrying on community action pro

vide voters or prospective voters with transgram activities with financial assistance

portation to the polls or similar assistance under this title."

in connection with any such election, or (3) Sec. 602(n): "In addition to the authority any voter registration activity. The Direcconferred upon him by other sections of this tor, after consultation with the Civil Service Act, the Director is authorized, in carrying Commission, shall issue rules and regulaout his functions under this Act, to establish tions to provide for the enforcement of this such policies, standards, criteria, and proce section, which shall include provisions for dures, prescribe such rules and regulations summary suspension of assistance or other ... and generally perform such functions action necessary to permit enforcement on and take such steps as he may deem to be an emergency basis." APPENDIX B TO SUBPART 1069.8 CHECKLIST OF APPLICABILITY OF RESTRICTIONS (An X designates the restrictions which do apply)

Applicable section of 45 CFR 1069.8 Type of agency and persons

5(c) 5(d) 5(0) 510 CAA's, other public grantees and public delegate agencies:

Programs and program funds ....
Employees ....................
Volunteers ........

Board members .......
Private grantees and private delegate agencies other than CAA's:

Programs and program funds ............
Employees .......
Volunteers ................******
Board members .....




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1 Exceot that employees of educational and research organizations are not covered by subsections 5(c)(1) and

2 Exceot that employees of educational and research organizations are not covered and that trainees are covered on are in on the job training for positions with the agency.

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position again must receive CSA ap proval. However, the $18,000 limitation does not include the value of fringe benefits allowable under CSA policies.

(b) Note that the legislative permission to grant exceptions is a means to avoid situations in which the salary limitation would impair program effectiveness. It does not give any general permission for liberalization of salaries at or near $18,000.

Opportunity Act of 1964, as amended, if the assistance is administered by the Community Services Administration. § 1069.9–2 Reference.

Section 244(2) of the Economic Opportunity Act, as amended; “The Director (of CSA) shall issue necessary rules or regulations to insure that no employee engaged in carrying out community action program activities receiving financial assistance under this title is compensated from funds so provided at a rate in excess of $18,000 per annum, and that any amount paid to such an employee at a rate in excess of $18,000 per annum shall not be considered in determining whether the non-Federal contributions requirements of Section 225(c) have been complied with; the Director may, however, provide in those rules or regulations for exceptions covering cases where, because of the need for specialized or professional skills or prevailing local salary levels, application of the foregoing restrictions would greatly impair program effectiveness or otherwise be inconsistent with the purposes sought to be achieved." 8 1069.9–3 Definitions.

(a) Employee. A person considered an employee for the purpose of withholding Federal income tax. For example, experts and consultants performing services on an intermittent or occasional basis will usually not be employees and will usually not be covered by the restriction. Volunteer service is the valuation of volunteered services, which the volunteer receives no compensation.

(b) Project funds. Funds received from CSA as part of the Federal share of a grant or contributed locally as part of the approved non-Federal share of an CSA grant.

81069.95 Clarification of effect of

$18,000 limitation. (a) Local payment of salaries over $18,000 per year. The legislation does not forbid local agencies from paying community action employees at a rate over $18,000 per year in those cases where CSA does not approve such a salary, The Act provides only that the excess compensation is granted. Local agencies may pay more than the $18,000 rate, using their own sources for the excess compensation.

(b) Impact on new employees. In cases where CSA has approved a salary above $18,000 for a position under the provisions of this directive and there is a change in the incumbent of that position, it will not normally be necessary to request a new waiver if the duties and responsibilities of the position remain essentially the same and the approved salary was not based on the comparability data of the community from which the previous incumbent was hired.

(c) Effect of restriction on part-time CAP employees. Where an employee spends only part-time working on a community action program, the $18,000 per year restriction will apply pro rata to that portion of the work which is charged to the community action program.

8 1069.94 Policy.

(a) The 1978 amendments to the Economic Opportunity Act authorized an increase in the maximum salary allowable for payment to employees carrying out activities under title II to $18,000. Anytime this limitation is to be exceeded, regardless of the cause, e.g. step increases, promotions, etc. ap proval by CSA is requested. Also, any succeeding increases or promotions for

81069.96 Criteria and procedures for

CSA exceptions to $18,000 limita

tion. (a) In general, procedures for applying for an exception to the $18,000 limitation will be part of the regular grant approval process. Although it is expected that most requests for an exception to the $18,000 limitation will be made at the time of the grant application, a grantee may initiate a request for an exception at any time during the

egate agency if the submission is inadequate as a basis for judgment.

Subpart 1069.26_Social Security

Coverage for Employees Under CAP Grants (CSA Instruction 6906-01)

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

SOURCE: 44 FR 56583, Oct. 1, 1979, unless otherwise noted.

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§ 1069.26-1 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.

program year. No matter when the request is made, however, CSA administering offices will specifically inform the grantee in writing when such a request is approved.

(b) At a minimum, the notification will contain the specific identification of the position (and the applicant and his her last community in which he/she was employed if approval is based on salary rates that prevail in the community from which hired), the salary requested, the salary approved and the effective time period covered.

(1) Types of Positions Eligible for Exception. The grantee may apply for an

eption to the $18,000 limitation for any specific position which calls for a person of specialized skills or other qualifications requiring a rate of pay in excess of $18,000 per year, e.g. physicians, dentists, lawyers. Top administrators of large and complex programs, e.g. executive director of a large metropolitan area CAA or of a multi-county rural CAA involving a complex coordinating role and administration of a large poverty program with many components may also be excepted.

(2) Criteria for CSA Approval of Salaries in Excess of $18,000 per Year Rate. In all cases the grantee must provide documentation and CSA approval will be based upon, the following considerations:

(i) Programmatic Need for Salary Requested. Consider both the need for that position and the need for a person with qualifications calling for the salary requested.

(ii) Also consider the anticipated reduction in program effectiveness if a person of lower qualifications were hired and any anticipated difficulties in recruiting persons if a lower rate were paid.

(3) Wage Comparability. Generally, the salary paid must be comparable to the prevailing salary level for comparable positions in the community of the CSA-funded agency or must be comparable to the prevailing salary level for similar positions in the community in which the person hired held in his/her last preceding employment. (See OEO Instruction 6900-02).

(c) The administering offices may request additional justification and/or documentation from the grantee or del

8 1069.26–2 Effective date.

September 13, 1966 (CSA Instruction 6906-01). 8 1069.26-3 Purpose.

CSA recognizes the important benefits which accrue to employees from social security coverage, and strongly recommends that those grantee and delegate agencies which are not already obligated by law to report wages for social security purposes seek to obtain coverage for their employees whenever feasible. It is CSA policy to include in its grants the funds necessary to pay the employer's share of social security contributions. These contributions are a legitimate budgetary expense under fringe benefits in the personnel category of the budget. This subpart is designed to familiarize grantee and delegate agencies with the possibilities of coverage under the Social Security Act and the requirements of reporting their employees' wages. 8 1069.264 Identification of employer

for social security purposes. It is important to determine who is the employer for purposes of the social security laws. The employer, for social security purposes, is the agency which has the authority to direct how, when and where the employee's services will be performed, and which has the right to hire and fire. Most frequently the employer is the organization which di

rectly administers the component pro- curity contributions can be obtained gram, that is, the grantee in a non-del- from the Internal Revenue Service. egated program or the delegate agency in a delegated program. If you have dif- 81069.26-6 State and local government ficulty in determining who is the em

agency as employer. ployer for social security purposes, you Whether an employee of a State or should contact your local Social Secu- local governmental (i.e., public) agency rity Administration or Internal Reve is covered by social security depends nue Service office.

upon the terms of the voluntary agree

ment between the State and Federal 8 1069.26-5 Where the employer is a

Government. Coverage may already private nonprofit organization.

have been provided for employees of (a) Every private nonprofit agency is the entity under the State's agreerequired by CSA to furnish evidence ment, or if not, it may be possible to that it has obtained, or is applying for provide coverage. Each such agency an Internal Revenue Service income should contact the appropriate State tax-exemption ruling. Grantees and Social Security Administrator for indelegate agencies that qualify will be formation concerning coverage of its granted this exemption, in most cases, employees, and the withholding and as religious, educational, or charitable payment of social security contribuorganizations under section 501(c)(3) of tions. Where employees of such public the Internal Revenue Code. These agen- agencies are covered, their wages are cies are also exempt for FICA tax (80 reported on forms provided by, and cial security) unless they elect to pro- filed with, the State Social Security vide social security coverage for their

rity coverage for their Administrator. employees. An agency which wishes to provide coverage for its employees

81069.26–7 Indian Tribal Council or must waive its FICA tax exemption by

similar tribal organization as emfiling a completed Form SS-15 with the

ployer. District Director of Internal Revenue. Although such organizations are conPersons employed during the calendar sidered public agencies under title II of quarter in which the waiver form is the Economic Opportunity Act, they filed may choose whether they want so normally are classified as private agencial security coverage. All employees cies under the Social Security Act and who choose to be covered indicate their the Internal Revenue Code. Employchoice by signing the Form SS-15(a) ment in all such organizations is which is filed with the Form SS-15. mandatorily covered by the Social SeEmployees hired after the calendar curity Act and the organization is subquarter in which the waiver certificate ject to FICA tax. Wages of all employis filed are mandatorily covered, and ees must be reported to the appropriate the agency must deduct the employees' District Director of Internal Revenue. share of the contribution from their wages.

Subpart 1069.28-Prohibition (b) If the employer does not qualify Against Acceptance of Gifts as a 501(c) Organization (religious, edu and Gratuities (CSA Instruccational, charitable), social security

tion 6909-1) coverage is mandatory for its employees. (c) Both private non-profit organiza

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

2942. tions whose employees are mandatorily covered and those 501(c)(3) organiza SOURCE: 44 FR 56584, Oct. 1, 1979, unless tions which waive their exemption otherwise noted. from FICA tax must report the wages of all employees who earn $50 or more

g 1069.28-1 Applicability. for a calendar quarter to the appro This subpart applies to all grantees priate District Director of Internal financially assisted under Titles II, IV Revenue. Information concerning the and VII of the Economic Opportunity withholding and payment of social se- Act of 1964, as amended, if such assist

ance is administered by the Commu Subpart 1070.2-Grantee Public Meetings nity Services Administration.

and Hearings (CSA Instruction 7042-1) § 1069.28-2 Effective date.

1070.2-1 Applicability of this subpart.

1070.2-2 Definitions. 81069.283 Definition.

1070.23 Public meetings after grant of as

sistance. Members of employees immediate 1070.2-4 Time, place, and notice of public family shall include any of the follow meetings. ing persons:

1070.2–5 Conduct of the public meetings. Husband Brother

Subpart 1070.4-Grantee Involvement in Father Son

the Nows Media (CSA Instruction 7044-1a) Mother


1070.4-1. Applicability.

1070.4-2 Policy. Mother-in-law Daughter-in-law

1070.4-3 Procedures. Sister-in-law Brother-in-law

Subpart 1070.1–Public Access to 81069.284 Policy.

Grantee Information (CSA In; (a) Employees of all grantees, dele

struction 7041-1) gate agencies, members of employee's

AUTHORITY: Secs. 213, 602, 81 Stat. 695, 78 immediate family, and members of any Stat. 530; 42 U.S.C. 2796, 2942. board or policy-making body of such

SOURCE: 34 FR 7375, May 7, 1969, unless othagencies, are prohibited from accepting

erwise noted. gifts, money and gratuities:

(1) From persons receiving benefits or $1070.1–1 Applicability of this subpart. services under any program financially

This subpart applies to all public assisted by the Community Services

agencies and private organizations Administration.

which receive financial assistance (2) From any person or agency per under title I-B, I-D, II, or III-B of the forming services under contract.

Economic Opportunity Act, as amend(3) From persons who are otherwise ed, if the assistance is administered by in a position to benefit from the ac- OEO. tions of any employee or board member.

81070.1-2 Definitions. (b) Grantees and delegate agencies As used in this subpartshall include the above prohibition in (a) Agency when used without qualitheir published personnel policies or fication means a public agency or pripublish written instructions to supple vate organization which has received ment their personnel policies, and es assistance under title I-B, title I-D, tablish effective procedures to enforce

title II, or title III-B of the Economic the prohibition.

Opportunity Act.

(b) Applicant agency means an agency

which has filed an application with PART 1070-GRANTEE PUBLIC

OEO for direct assistance under title IAFFAIRS

B, title I-D, title II, or title III-P of the

Economic Opportunity Act. Subpart 1070.1- Public Access to Grantee

(c) Community Action Agency means Intormation (CSA Instruction 7041-1)

an agency that has been recognized as such under section 210 of the Economic

Opportunity Act by OEO. 1070.1-1 Applicability of this subpart. 1070.1-2 Definitions.

(d) Completed audit means the audi1070.1-3 Requirements for inspection and ex

tor's final report as transmitted to the amination.

audited agency, along with any com1070.1-4 Classes of public information.

ments made by the audited agency in 1070.1-5 Additional information.

response to the audit report. The audit 1070.1-6 Conditions of public inspection and becomes completed 30 days after receipt examination.

by the audited agency.


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