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Exhibit I is attached to serve as a ready 20 percent rate where, at the discretion of guide to the non-Federal share percentage the OEO Regional Directors, such an to be approved. Ir. all instances when the

action would work no hardship on the new grant is on a 12-month basis, the at

newly formed CAA. tached table can be used to determine the overall non-Federal percentage contribution. Example 2: The table is to be used as follows:

County "A"-$200,000—funded 28 months

as of June 30, 1967. Read down Column A until the date of initial

County "B"—$400,000—funded 32 months grant from OEO.

as of June 30, 1967. Read across the row for that date to the col

County “C”—$300,000_funded 26 months umn for the ending month of new grant

as of June 30, 1967. (under D). The number where the latter column inter The funding program of the multicounty

sects the proper row is the non-Federal CAA is from July 1, 1967, to June 30, percentage contribution.

1968. In all counties, the per capita inWhen the new grant period covers less or come is over $1,000. Using the attached more than 12 months, the above formula table, the percentage rate is as follows should be used.

for each of the counties. (2) Reorganized grantees and transferred grants. Where a program has been

Rate Program Non-Federal

amount contribution transferred from a previous grantee to the present one or where the original

Percent grantee has been reorganized or dis

County “A”.

17 $200,000 $34,000 solved in favor of the present one, the

County “B”

20 400,000 80,000

15 32 months will be counted from the date

County “C”.

300,000 45, 000 of the original grant to the original Total..

900,000 159, 000=18% grantee. (3) Single-purpose agencies. (i) The

On the basis of the above, an overall non-Federal share of an established sin

rate of 18 percent will be charged the multigle-purpose grantee in a community county CAA. Note that any program which where there is also a CAA will be deter serves all these counties will be required to mined on the basis of the single-purpose

furnish the 18 percent local share. Where the grantee's own history. The same will be

specific amount, by county, is not readily true for applicants for independent fund

available, an allocation of the total grant

should be developed on a judgment basis. ing of new programs.

When data is not available to develop a cost (ii) However, the non-Federal share

allocation, the Regional Director will deterrequired of an agency which seeks in mine a non-Federal contribution percentage dependent or direct funding for a pro based on whatever facts are available. In all gram which it previously ran as a dele cases, at least a 10 percent non-Federal share gate agency of a CAA will be determined shall be required unless the grantee qualifies on the basis of the history of the CAA.

for total or partial exemption under para

graph (c) of this section. (ii) See subparagraphs (5) and (6) of this paragraph for rules specially appli

Example 3: cable to Summer Head Start programs

D” is a multicounty CAA which covers

counties “R,” “S," and "T" as shown below. and Upward Bound programs.

All of the funds requested are for multi(4) Rule for multicounty CAA's re county components. None of the components sulting from merger. Where two or more can be associated with any specific county or CAA's for different counties (or other even any two of the three counties. Therepolitical jurisdiction) have merged into

fore the only basis for determining nona multicounty CAA, the status of each

Federal share is population.

To determine the total amount of nonCAA (prior to merger) will be considered

Federal share in dollars that will be required in developing the overall rate of the new

of the CAA, follow the procedure described. CAA. As a point of practical application, 1. Determine the percentage the populaeach prior CAA will be considered sepa tion of each county is of the total popularately and then totaled in arriving at an tion of the area covered by the CAA. overall non-Federal cost and rate of the 2. Multiply the total dollar amount to be newly formed CAA. However, should any

requested by the population percentage figof the segments be subject to the relief

ure thus obtained for each of the counties. granted CAAs in low per capita income

This apportions the total dollars requested

to each county. countries (see paragraph (c) of this sec

3. Determine the local share percentage tion), a further percentage adjustment for each county based on the per capita inmay be in order. An exception to this come (less than $750; $750_$1,000; over general rule is the adoption of an overall $1,000).

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Total program.

100,000 1 See paragraph (c) of this section for rules for low-income counties.

? If County "T" would not reach its 32d month of operation until 3 months after the start of the new program year, the local share percentage would be only 1742 percent, that is, 10 percent local share would be required for the first 3 months and 20 percent for the last 9 months.

4. Multiply the dollars apportioned to (c) Exemptions from non-Federal the county by its local share percentage share requirements for communities figure. This determines the dollar amount

with per capita incomes below $1,000 per of local share each county must contribute. 5. Add the local share dollar amounts for

year—(1) General rules. (i) The Ecoeach of the counties to obtain the total non

nomic Opportunity Act provides, in secFederal share that will be required.

tion 225(c), that the Director of OEO

may relieve grantees of all or part of the (5) Special rule for Summer Head

non-Federal share requirements. PreStart programs. Commencing with the

viously, when the basic non-Federal programs funded for summer of 1967, all

share required for assistance under seclocal agencies which are not eligible for

tions 221 and 222(a) was 10 percent, an relief under paragraph (c) of this sec

exemption was granted to communities tion will be expected to provide a 20 per

with annual per capita incomes below cent non-Federal share of the costs of

$750 according to 1960 census data to summer Head Start programs. This will

the extent that they were unable to raise be true even though under preceding

non-Federal share. This exemption will paragraphs of this paragraph (b), the

be continued. same grantee may provide a smaller non

(ii) Moreover, with the increase in Federal share for other component pro

basic non-Federal share requirements to grams which will be operating at the

20 percent, OE will extend a partial exsame time.

emption to an additional group of about (6) Special rule for Upward Bound

500 counties with per capita incomes programs. (i) The round of Project Up

above $750 but below $1,000 per year ward Bound grant actions effective April

according to 1960 census data. The ex1, 1967, will all be funded on a 90 per

emption rules are as follows: cent-10 percent basis. This will be true even when the grantee is a CAA which

(A) As in the past, grantees serving comwill be required to contribute a 20 per

munities with per capita incomes below $750 cent local share for its other component

per year are expected to provide 10 percent

of the program cost whenever possible. Howprograms which are being conducted

ever, as in the past, such grantees may resimultaneously.

quest exemption from that portion of the (ii) Commencing in 1968, all Upward required non-Federal share which they are Bound grant actions will be funded on unable to provide. an 80 percent-20 percent basis, without (B) Grantees serving communities with regard to the 32-month rule.

per capita incomes in the $750-$999 range

shall in all cases provide at least 10 percent (7) Special rule for Emergency Food

non-Federal share but may request exempand Medical Services Programs. The re

tion from that portion of the non-Federal quirement in section 225(C) for non share above 10 percent which they are unFederal contributions is waived for all able to provide. programs funded under section 222(a) (6) of the Economic Opportunity Act. This

(iii) For these purposes, community waiver is automatic and does not require

per capita incomes may be based on data a request for waiver from applicants for

from the 1960 U.S. Census of Population financial assistance.

or any more recent reliable source of per

capita income data submitted by the applicant agency.

(iv) The request for a waiver of the non-Federal share requirements under paragraph (A) or paragraph (B) above should be in the form of a letter accompanying the application for CAP grant and shall state clearly (a) the basis on which the community's per capita income was determined; (b) the amount of non-Federal share which the community can provide; and (c) that the applicant has made a reasonable effort to raise more non-Federal share and has been unsuccessful. OEO may require that additional evidence be submitted in support of these representations.

(2) Rule for multicounty programs. Generally, the waiver of part or all of the non-Federal share will be based on a showing that the per capita income of the entire community served by the community action programs is below $750 or $1,000 per year. However, if there are one or more counties in a multi

county area served by a single CAA hayeing per capita incomes below $750 (or

$1,000), even though the multicounty area, taken as a whole, does not, the

CAA may request relief from its overall E non-Federal share requirement for com

ponent projects designed to serve only the poorest counties. Note that this rule is not intended to either encourage or discourage the development or continu

ance of components to serve only one $ county in a multicounty CAA.

Example 4:

“G” a multicounty CAA, serves four counties, W," "X,” “Y," and "Z.” Counties "W" and “X” have per capita incomes below $750. The other counties have per capita incomes in the $750–$999 range. The entire area served by "G" has a per capita income below $1,000 but not below $750. Its normal nonFederal share requirement is thus 10 percent, but for programs serving only county “W” or county “X” it is entitled to relief from that requirement if it cannot raise the non-Federal share.

The non-Federal share requirement on its grant may be calculated as follows:

Note that the Program Administration component, which serves all four counties, is required to provide non-Federal share on the basis of 10 percent because the fourcounty area, taken as a whole, has a per capita income below $1,000 but not below $750.

OEO will permit pooling of the non-Federal share as between exempt and nonexempt counties served by the same CAA. See paragraph (e) (1) of this section.

(3) Special rule for programs serving reservation Indians and migrant groups. In cases where a CAA or other Title II grantee provides a specific component program solely for the benefit of Indians on Federal or State reservations within the community or for the benefit of groups of migrant farm workers who live, or earn their living, outside of the community 6 months or more a year, the CAA shall be entitled to seek a partial or total exemption of the non-Federal share requirements for the costs of those component programs in cases where the per capita income of the groups served is below $1,000. If the per capita income is below $750, the Regional Director is authorized to grant an exemption for that portion of the non-Federal share which the CAA is unable to provide. If the per capita income is in the $750– $999 range, the Regional Director is authorized to grant an exemption for the portion of the non-Federal share above 10 percent of program costs which the CAA is unable to provide. Exemptions granted under this paragraph will apply only to the particular component programs serving Indians or migrants, and shall not operate to reduce the nonFederal share requirements applicable to other component programs operated by the same CAA.

(d) Instructions to grantees reaching their 33d month during a current program year. (1) Grantees who, according to the rules in paragraph (b) of this section, will reach their 33d month of CAP funding during their present program years (or other grant periods) will be responsible for contributing the additional non-Federal share of costs called for according to the table in Exhibit I. They will be expected to submit revised CAP Form 25's for affected component projects identifying the value and kind of increased local share and

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showing a corresponding reduction in Federal funds.

(2) Note that no increase in a grantee's level of approved program will be permitted on account of the increase in the required non-Federal share. That increase will be offset by a corresponding decrease in Federal support for the component projects in question.

(3) Following receipt of the revised CAP Forms 25, the appropriate OEO/ CAP office will review the changes and, upon approval, will issue a supplemental CAP Form 14 together with copies of the CAP Form 25's showing the approved changes.

(4) Failure to take prompt action to provide the required increase in nonFederal share and to achieve a corresponding reduction in Federal funds may necessitate remedial action by OEO. Such action may include suspension or termination of the grant, and legal action to recover non-Federal share defi

ciencies and overexpenditures of Federal funds.

(e) General-(1) Pooling of non-Federal share during program years. (i) Grantees are reminded that the pooling of non-Federal share among all components of the same grant during a single program year is acceptable. The policy stated in CAP Guide, Volume II (Part I, par. 4 (page 20)) with reference to pooling in terms of the Federal fiscal year is obsolete and under revision.

(ii) The pooling provision should be utilized to lessen the burden of the increased non-Federal share requirement for component programs which will have the greatest difficulty in providing increased non-Federal share.

(2) For further information. Applicants are advised to communicate with the appropriate OEO Regional Office for any further specific information they may need with regard to non-Federal share requirements.


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December.. 1965:


December. 1966:


December.. 1967:



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- 1965:

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July -

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(42 U.S.C. 2784, 2785, 2788) 33 F.R. 19180, Dec. 24, 1968]

[32 F.R. 10073, July 8, 1967. Redesignated and amended at

§ 1068.2 Criteria for waiving require Federal effort over such prior level of

ment that prior level of expenditures support. The 1965 amendments to the or contributions be increased.

Economic Opportunity Act made this (a) Purpose. Under section 225(d) of requirement “subject to such regulations the Economic Opportunity Act of 1964, as the Director may adopt and promulas amended, the expenditures or contri gate establishing objective criteria for butions made from non-Federal sources determinations covering situations where for a community action program or com a literal application of such requirement ponent thereoef are required to be in would result in unnecessary hardship or addition to the aggregate expenditures or

otherwise be inconsistent with the purcontributions from non-Federal sources poses sought to be achieved.” The purwhich were being made for similar pur pose of this section is to establish criteria poses prior to the extension of Federal for such determinations. assistance. Consequently, an activity (b) Activities undertaken for less than which has previously been carried on 6 months. (1) When assistance is sought without Federal support will generally for the continuation or expansion of receive Federal assistance under sec an activity which was initiated less tions 221 and 222a only on condition that than 6 months before the application to the prior level of non-Federal support the Office of Economic Opportunity, confor the activity be continued, and that tinuation of non-Federal support for the any amounts claimed as non-Federal activity will not be required as a condishare represent an increase in the non tion of Federal assistance.

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