plications prior to funding by CSA and, therefore, the A-95 process is applicable only to certain Title VII grants. (See § 1067.10-1). For example:

(1) Once a CDC has received its initial funding from CSA through a planning grant (which is subject to clearinghouse review), the basic issue of the community's need for the CDC has been resolved. Therefore, subsequent refundings of the CDC's central administrative budget are exempted from clearinghouse review.

(2) Since CDCs are refunded for twoyear periods, much of the investment capital funding requested in refunding applications is not earmarked to specific ventures; only in the subsequent two years, following grant approval, are specific plans for most ventures developed and submitted to CSA for approval. Accordingly, there is little in the CDC's investment capital budget for clearinghouses to review prior to grant approval.

(3) The bulk of the CDC's proposed ventures, whether specified in the refunding application to CSA or identified and developed after grant approval, fall into the "business development program” category, and are accordingly exempt from clearinghouse review because of their proprietary nature. Most of the feasibility data for such ventures, whether submitted to CSA as part of a refunding application or subsequently, could not be released to

the clearinghouses.

(b) Accordingly, only that small portion of a CDC's refunding application which is earmarked for specific ventures in the "community development" and "training, public service employment, and social services" categories is appropriate for review by the clearinghouse prior to funding.

(c) Even some data related to community development ventures, such as land acquisition plans and costs are exempted from clearinghouse review due to the proprietary nature of the data.

(d) Despite such limitations, it is the policy of CSA that CDCs coordinate their programs with local governments and related private agencies and organizations, and that CDCS develop meaningful mechanisms with their local clearinghouses for insuring such

coordination on an ongoing basis. Such coordination should include, at a minimum, (1) periodic discussions of the CDC's overall program and objectives, and (2) appropriate reviews, prior to CSA release of funds (though generally not prior to grant approval), of non-proprietary venture plans.

(e) Each CDC, including planning grantees, must include in its next funding application submitted to CSA after 60 days from the effective date of this subpart, a copy of an agreement signed by the CDC and the appropriate areawide or metropolitan clearinghouse(s) which specifies how this required ongoing and post-grant coordination shall be implemented. All future grant applications and postgrant venture feasibility proposals must include evidence that the required coordination, as provided in the signed agreement, has in fact taken place.

NOTE: Section 1067.10-6 was suspended in part at 42 FR 29873, June 10, 1977.

§ 1067.10-7 SF 424-Availability.

An initial supply of SF 424, Federal Assistance, will be distributed to all grantees. It should be noted that CSA has overprinted the SF 424 to provide additional information for use of its grantees and administering offices. Therefore supplies of SF 424 should be acquired from CSA only. When the initial supply has been exhausted additional forms may be obtained by writing to: CSA Publications and Distribution Center, 5458 3rd Street NE, Washington, DC 20001.

Subpart 1067.16-Amending a Grant Under Title VII of the Community Services Act (CSA Instruction 67107)

SOURCE: 41 FR 26688, June 29, 1976, unless otherwise noted.

§ 1067.16-1 Applicability.

This subpart applies to all community economic development grants under Title VII of the Community Services Act of 1974.

This subpart identifies the kinds of budgetary and programmatic changes in Title VII grants which constitute amendments and prescribes the procedures for requesting prior approval from CSA's Office of Economic Development (OED) for such amendments. Procedures for requesting OED approval for grant extensions which constitute refundings may be found in § 1067.15-1 through § 1067.15-12 (CSA Instruction 6710-6). Grantees who are in doubt as to whether proposed grant changes require prior OED approval or whether the procedures in this subpart or in § 1067.15-1 through § 1067.15-12 (CSA Instruction 6710-6) should be followed should consult with the OED project manager for the grant.

§ 1067.16-4 Grant changes requiring prior OED approval.

Grant changes which constitute amendments, and which therefore require prior OED approval, fall into two basic categories; those involving changes in the grant program and those involving changes in the grant budget.

(a) Programmatic Changes which Constitute Amendments. (1) Basic changes in the overall strategy, objectives, milestones, implementation plan, or major activities of the project as approved by OED.

(2) Significant changes in the number or type of participants or beneficiaries.

(3) Changes in the target area served (if any) under the grant.

(4) Changes in delegate agencies, if

any.

(5) Changes in the grantee's articles of incorporation or by-laws.

(6) Changes in or waiver of grant conditions.

(7) Uses of Investment Capital funds for purposes other than those approved by OED or than as provided in a venture autonomy agreement approved by OED or in CSA Instructions.

(8) Changes in the duration of the approved funding period or in the length of time the project will operate.

(9) Restoration of personnel positions or program elements specifically disapproved by OED, or deletion of positions or program elements specifically added by OED, as specified on the OEO Form 325c or special conditions attached to the grant.

(b) Budgetary Changes Which Constitute Amendments. (1) Changes which will increase the CSA-funded program costs (i.e., the approved grant budget as shown in Column F (1) of the CSA Form 325) for the current funding period, regardless of whether such increased cost will:

(i) Require increased (i.e., supplemental) OED funds; or

(ii) Require no additional OED funds because of the availability of larger than anticipated unexpended balances from prior funding periods (Note: the availability of unexpended funds from prior funding periods does not constitute the authority to spend them).

(2) Changes in the expenditure rate for continuing costs such that total grant funds will be expended prior to the termination date of the current grant, thereby necessitating refunding (where applicable) prior to the scheduled date.

(3) Changes in the expenditure rate for continuing costs such that even if total funds will not be expended prior to the termination date of the current grant the annualized costs in subsequent funding periods will be significantly higher.

(4) Any increase or decrease in the OED-approved budget for cost category 2.5, Investment Capital, by shifting funds from or to other cost categories. (5) Any increase in the OED-approved budget for cost category 3.0, Indirect Costs, where applicable.

(6) Any initial salary, or any increase in salary, for any position which ex

Except as provided in § 1067.16-4 or as prohibited by CSA grant conditions or regulations, Title VII grantees may make other programmatic and budgetary changes in their approved grants without prior OED approval (in accordance, of course, with their own bylaws, published personnel policies, regulations, etc.). Such changes include: (a) Creation or abolishment of staff positions, or changes in duties.

(b) Increases or decreases in salaries for individual positions.

(c) Increases or decreases in budget cost categories 1.1-2.4 and 2.6, or decreases in cost category 3.0, by shifting funds among such cost categories.

§ 1067.16-6 Submission of amendment requests to OED for approval.

(a) Any programmatic or budgetary change constituting an amendment (see § 1067.16-4) may not be made by a Title VII grantee without prior OED approval. Such approval must be in writing and may be given only by the Director of OED or his Deputy (the only OED officials authorized to approve Title VII grants). Oral "authorization" by any OED employee or written "authorization" by any OED employee other than the director or his deputy shall not constitute OED approval. Moreover no grant amendment may become effective until the date the written approval is signed.

(b) The documentary requirements for amendment requests are relatively simple. An amendment request consists of from one to four numbered forms as follows:

(1) OEO Form 315a Grantee Quarterly Financial Report (requests for nocost extension in excess of 4 months).

(2) CSA Form 325b, Request for Amendment to Grant (all requests). (3) CSA Form 325, Budget Summary (requests for budgetary changes).

(4) CSA Form 325a Budget Support Sheets (requests for budgetary charges).

(c) Copies of these forms may be found in Appendix A1 to this subpart. (d) An original and seven copies of all amendments requests, regardless of the OED division that monitors the projects, should be mailed to:

(1) Program Management and Support Division, Office of Economic Development, Community Services Administration, 1200 19th Street N.W., Washington, D.C. 20506.

(e) Distribution of copies to the OED project manager and other appropriate CSA/OED personnel will be handled by the Program Management and Support Division.

(f) Specific instructions on the preparation of these forms are provided in paragraphs (f)(1) through (4) of this section:

(1) OEO Form 315a, Grantee Quarterly Financial Report. See CSA Instruction 6807-2.

(2) CSA Form 325b, Request for Amendment to Grant. This form is used for all amendment requests. Where the request involves no budgetary changes, the CSA Form 325b is the only form required. The form is self-explanatory; it provides essentially for a narrative description of the programmatic and/or budget changes requested. Blank sheets should be used to complete any continuation pages. If the amendment involves changes in the grantee target area, bylaws, etc., appropriate documents such as maps, new proposed by-laws, etc., should be attached to the CSA Form 325b.

(3) CSA Form 325, Budget Summary. This form is used when the requested amendment involves an increase in the total program cost (whether or not supplementary funds are required), an increase or decrease in the Investment Capital cost category, an increase in the Indirect Cost category (if applica

'Not filed with the Office of the Federal Register. Forms available from the Community Services Administration.

ble), or an extension of the funding period without additional funds (a "no-cost extension") for four to twelve months beyond current termination date (NOTE: no-cost extensions of four months or less require only the CSA Form 325b; no-cost extension of more than 12 months are refundings, subject to CSA Instructions 6710-6). Detailed instructions on how to complete CSA Form 325 for amendment requests may be found in CSA Instruction 6710-8.

(4) CSA Form 325a, Budget Support Sheets (Parts I and II). (i) This form will normally be used in any amendment request involving an increase in program costs (whether or not supplementary funds are requested), or a nocost extension for more than four months. It may even be necessary for certain requests to shift funds among budget cost categories. However, there may be fairly simple amendment requests where the necessary budgetary back-up justification can be provided directly in the narrative on the CSA Form 325b, in which case the CSA Form 325a will be unnecessary.

(ii) Where the CSA Form 325a is used, it will provide the detailed cost basis for each budget cost category affected by the requested amendment. The figures on the CSA Form 325a will then be summarized, by cost category on the CSA Form 325. Detailed instructions on how to prepare grant budgets and CSA Form 325a may be found in CSA Instruction 6710-8.

§ 1067.16-7 Amendment approval/disapproval and post-approval requirements. (a) Upon receipt of an amendment request it will be reviewed by the appropriate OED staff and either approved or disapproved. If the request is disapproved, the "Disapproved" box will be checked on the bottom of the CSA Form 325b, and the form will be signed and dated by the OED director or deputy director and returned (together with any supporting forms and documents) to the grantee.

(b) If the request is approved, the procedure followed by OED will depend on the nature of the amendment request, as follows:

(1) Amendments Which Neither Obligate New Funds Nor Extend the Grant

Period. OED approval will be indicated by checking the "Approved" box on the bottom of the CSA Form 325b, and by signing, dating, and returning the form (together with any supporting forms and documents) to the grantee. If any modifications are made in the amendment as approved, such modifications will be indicated on the CSA Form 325b or on attached conditions or explanatory materials. If the amendment involves a budgetary change, OED will complete Column F of the CSA Form 325 submitted by the grantee with the amendment request and will return the 325 along with the 325b to the grantee. The CSA Form 325, with Column F completed, will now constitute the official, approved grant budget as amended.

(2) Supplemental Grants and NoCost Extensions. OED approval of grant amendments involving the obligation of additional funds or extending the funding period beyond the current termination date is indicated in the same way as the initial grant or refunding, by executing a CSA Form 314, Statement of CSA Grant. For this group of amendments OED approval is not shown on the CSA Form 325b, and that form is therefore not returned to the grantee. If the approved amendment involves a supplemental grant, the amount of the new funds awarded I will be shown on the CSA Form 314 (not the total grant as amended). If the amendment is a no-cost extension, the CSA Form 314 will show zero (0) funds awarded but will indicate the new, extended termination date for the grant. If the amendment both supplements and extends the grant, the CSA Form 314 will indicate both the amount of new funds awarded and the new, extended termination date. For supplemental grants and no-cost extensions of four to 12 months, the CSA Form 325, with Column F completed by OED, will be attached to the CSA Form 314 to indicate the new revised budget (for either the current grant period as amended or for the new extended period) as approved by OED. For no-cost extensions of four months or less, the grantee was not required to submit a CSA Form 325 and therefore no such form will be attached to the CSA Form 314. If OED

approval of the amendment is contingent on certain conditions or modifications, special conditions or an explanation of program or budget changes will be attached to the CSA Form 314.

(c) Following receipt by the grantee of a signed CSA Form 325b approving an amendment which neither obligates new funds nor extends the grant, the grantee need take no further action, unless the amendment was approved subject to certain conditions requiring action by the grantee. Following receipt by the grantee of a signed CSA Form 314 approving a supplemental grant or no-cost extension, the grantee must sign the CSA Form 314, as in the case of the initial or refunding grant, and return it to OED to signify official acceptance of the grant or extension. If any special conditions are attached, the grantee must also take such action as is indicated.

Subpart 1067.17—Preparing a Budget for a Title VII Grant Under the Community Services Act (CSA Instruction 6710-8)

SOURCE: 41 FR 26689, June 29, 1976, unless otherwise noted.

§ 1067.17-1 Applicability.

This subpart applies to all applications for community economic development grants under Title VII of the Community Services Act of 1974.

§ 1067.17-2 Purpose.

This subpart prescribes the requirements and procedures for preparing a budget for Title VII applicants.

§ 1067.17-3 Preparation of budget forms for grant action.

(a) Budgets must be submitted for the following types of grant actions:

(1) Initial and Refunding Grants, See CSA Instruction 6710-6.

(2) Budget Amendments. See CSA Instruction 6710-7.

(b) CSA Form 325, Budget Summary, is required to describe the proposed budget. The budget detail should, in most cases, be presented on CSA Form 325a, Budget Support Sheet. Salaries and wages are listed in Part I of the CSA Form 325a, and other expenses are listed in Part II.

They should be grouped by the following budget categories:

BUDGET CATEGORY

(1) 1.1 Salaries and wages.

(2) 1.2 Fringe Benefits.

(3) 1.3 Consultants and Professional Services.

(4) 2.1 Travel.

(5) 2.2 Space Costs and Rentals. (6) 2.3 Consumable Supplies.

(7) 2.4 Lease and Purchase of Equipment and Property.

(8) 2.5 Investment Capital. (9) 2.6 Other Direct Costs. (10) 3.0 Indirect Costs.

§ 1067.17-4 CSA Form 325a, Budget Support Sheet (Parts I and II).

(a) This form will be used in all initial and refunding grants and normally in any amendment request involving an increase in program costs (whether or not supplementary funds are requested) or a no-cost extension for more than four months.

(b) It may even be necessary for certain amendment requests to shift funds among budget cost categories. However, there may be fairly simple amendment requests where the necessary budgetary back-up justification can be provided directly in the narrative on the CSA Form 325b, Request for Amendment to Grant, in which case the CSA Form 325a will be unnecessary.

(c) The CSA Form 325a should be completed before CSA Form 325, detailing the cost basis for each budget cost category. Under Part II more than one category may be shown on the same page if space allows. Additional copies of the 325a should be used as continuation sheets to complete Part II (or in unusual cases where the number of personnel exceeds the number of lines on the form, to complete Part I). Once the 325a is completed, the totals should be carried over to column D or E, depending on the type of grant action, of section I on the 325.

(1) Part I (Salaries and wages: Budget category 1.1). Items 1, 2, and 3 are selfexplanatory. Under items 4 and 5 enter the salary, wage or the valuation of services of all paid employees and volunteers participating in the program.