(i) Paid personnel. (A) All salaries of grantee employees paid with CSA project funds must be established as a part of a structured salary plan which sets salaries or salary ranges for each position or group of positions based on the responsibilities of the position, its relationship to other positions, and the salaries of comparable positions in other public or private non-profit agencies.

(B) Any person hired to fill a CSA funded position must be paid at a rate no higher than the rate established for that position in accord with most appropriate local comparability or at a rate comparable to that paid for similar positions in the community from which the applicant was hired. (The grantee should have a record of the comparability data and be able to produce such upon request by CSA). For salaries in excess of $15,000 per year, comparability data should accompany the application. See OEO Instruction 6900-02.

(C) Salaries entered on the 325a are maximums. Applicants are cautioned that particular incumbents of any given position may be prescribed from receiving such maximums by the provision of OEO Instruction 6900-01, which limit entry salaries or salary increases to 20% or $2,500, whichever is smaller, of an individual's prior annual salary.

(D) A separate entry should be made on the 325a, item 4.A for each different position title. If two or more employees are employed in identical positions, only one entry should be made in 4.A with the number of employees in the position shown in parentheses after the position title. The entries in 4.B and 4.C should be the man-months and salaries for an employee in the respective position in 4.A multiplied by the number of employees in that position.

(E) On the Budget Support Sheet, part-time employees should be shown separately. Do not list two employees each working half a year as one employee working full-time. Where a position is part-time the fraction of fulltime employed (e.g. half-time or onethird time) should be shown in parentheses after the position title. The number of man-months shown for a

part-time position should in all cases be based on full-time employment. For example, a half-time employee working for an entire year is considered to work six man-months.

(ii) Volunteers. If volunteer workers are going to participate in the program, their time may be valued for the purpose of calculating non-Federal share. Valuation methods are prescribed in § 1068.9-1 through 1068.9-5 (OEO Instruction 6802-1a). A person should be treated as a volunteer only if he receives no compensation from anyone for work in the program. All volunteer positions should be entered in item 5 of the 325a. When an employee is paid but an employer other than the grantee furnishes the services, he should be listed under item 4 of the 325a and his services valued in 4.E at his regular rate of pay, provided these services are in the same skill for which he is normally paid. This would be the case, for example, if a private law firm assigned an employee to work one day a week in a CSA funded CDC office.

(2) Part II (Budget support data: Cost categories 1.2-3.0). (i) Estimated costs or valuations for all projected program needs, other than salaries, wages and volunteer services are to be entered in this part.

(ii) Items 1, 2, and 3 are self-explanatory.

(iii) For each budget item enter: (A) Its cost category number (see section below on cost categories for further guidance) under column A.

(B) A description of the item and its basis for valuation under column B (NOTE: For items under Cost Category 2.5-Investment Capital the basis for valuation is not required. Only identify, to the extent possible, the ventures or types of ventures to be invested in, including revolving loan or loan guarantee funds, where applicable. For all entries in other cost categories show how the Federal and nonFederal estimates were numerically derived. See sections below on cost categories for further guidance.)

(C) The Federal share of its estimated cost under column C.

(D) The non-Federal share of its estimated cost or valuation, under column D.

(iv) All budget items under Part II are to be grouped under the following cost categories:

(A) Cost category 1.2: Fringe benefits. (1) This category includes not only such items as health insurance, life insurance, and retirement contributions, but also workmen's compensation, unemployment taxes, and social security taxes.

(2) If fringe benefits shown are a percentage of total compensation, the applicant should identify each benefit and its share of the overall percentage figure, e.g., employer's contribution for social security.

(3) Fringe benefits must cover at least social security and workmen's compensation. Other options which may be included in fringe benefits are health insurance, life insurance, and retirement. However, when these fringe benefits do include the added options, the options should be equitable to both high and low salaried employees. Plans which are only affordable by high salaried people should not be acceptable in CSA funded antipoverty programs. A 15% fringe total is average for Title VII grantees.

(B) Cost category 1.3. Consultants and Professional Services. (1) This category includes legal fees, accountants' fees, consultants' fees, and the like.

(2) A reasonable percentage of the budget (depending on specific programs and need for training) may be set aside for consultant and professional services. The two most important areas which must be covered (whether with Federal or non-Federal funds) are audits and legal fees.

(i) Audits. CSA grant funds may not be used to pay for more than one audit annually, except where CSA requests in writing additional audits. For detailed CSA audit requirements see OEO Instruction 6801-1. Generally, the cost of an audit will depend on the size of the grant, whether or not there are any delegate agencies, where the records are located (in one place or scattered) and how well the grantee's accounting procedures were set up. Audit costs will also vary in different localities. A cost of $3,000-$5,000 for an audit on a $1 million grant is considered reasonable. The grantee may wish to talk with several CPA's in the

area before selecting the contractor to insure the CPA's estimate is fair. For Title VII grantees which have ventures in addition to administrative funds to audit, the cost of the audit will be higher.

(ii) Legal fees. Legal fees are paid on a case-by-case basis. Title VII grantees' legal fees average $2,000-$4,000 per year.

(iii) Other consultant service. May include board training, staff training, management training, feasibility studies and surveys. In estimating the other consultant costs the following should be considered: Number of days, daily fee rate, cost of transportation, and per diem. Normally $100 per day is the maximum daily fee permitted. However, in view of the highly technical specialists frequently required in certain ventures and business planning, fees in excess of $100 per day are allowable for certain Title VII grantees under conditions described in the general or special conditions to such grants. Where such higher fees are allowable an average of $150 per day is usually quite adequate.

(C) Cost category 2.1: Travel. (1) Cost of travel should be broken down in Part II of the 325a in terms of travel within grantee's target area, and travel outside of the area. Items covered should include number of employees or board members expected to travel, number of miles at x cents a mile, or number of trips outside target area and average cost of trip and per diem. See example below:

(i) Number of travellers × number of miles x number cents per mile cost of travel in target area.

=

as a guideline in determining reasonable costs.

(2) GSA estimates that approximately 150 square feet of space as an average is needed for professional employees. For clerical positions approximately 60-75 square feet of space is needed per person plus file space. In general, an average of 105 square feet per person is a reasonable allotment of space. This does not include meeting rooms, etc. Space costs are determined by multiplying the number of employees X square feet per person x the cost per square foot of the space. The cost of space per square foot normally includes maintenance and utility charges. Grantees should generally not enter into a lease where these charges are not included. An exception might be made for grantees who own maintenance companies and may want to channel this money into their own businesses. In these cases, the cost per square foot of space should be reduced to accommodate these charges. Separate charges for maintenance should be accounted for under cost category 2.6-Other Direct Costs.

(3) It is also recommended that a grantee take a lease for the period of the grant with an option to renew. A short lease which would expire during the course of the grant period may cause the grantee to have to move. A lease longer than the period of the grant may cause legal problems in the event the grantee does not have funds to continue.

(E) Cost category 2.3: Consumable supplies. Consumable supplies include desk top items-pens, pencils, paper, cellophane tape, staples, etc. If a grantee publishes a newsletter or if a support grantee provides a service requiring frequent contact with other grantees through the mails, the costs will be higher than average.

(F) Cost category 2.4: Lease and purchase of equipment and property. The rule of thumb to use in determining whether or not to lease or purchase equipment and property is: If 3 years' leasing cost is more than the purchase price plus servicing costs, it is more economical to purchase the equipment. If a grantee is leasing equipment, it frequently is an advantage to do so with the option to buy.

(1) Proposed purchases of property with a unit cost of more than $500 must be specifically approved by OED. Such purchases should be itemized in Part II of the 325a.

(G) Cost category 2.5: Investment capital. (1) This category includes such items as transportation of things, repairs, utilities, telephone, postage, insurance, bonding, etc.

(2) This category also includes stipends which may be paid to program beneficiaries to support them during their participation in a program.

(3) Dues for membership of the grantee in professional organizations may be included in this category, but only if the grantee's membership can be shown to be related to the purposes of the CSA grant. Dues paid for individual memberships, as contrasted with agency memberships, in professional organizations will not be allowed.

(4) Bonding should be secured in the aggregate amount of $25,000 for persons authorized to sign or countersign checks or disburse sizable amounts of cash. (See OEO Instruction 6809-01), and the costs for bonding included in this category.

(H) Cost category 3.0: Indirect costs. (1) The indirect costs of a project are those costs incurred by an organization for the joint benefit of the approved CSA program activity and other objectives, but not readily identifiable with the CSA program itself— as in the operation and maintenance of buildings or in the payment of utility costs or administrative salaries.

(2) CSA funds are only provided for indirect costs applicable to research or demonstration projects conducted by institutions of higher education, State and Local governments, hospitals and other non-profit institutions. When a claim is made for indirect costs, the basis for the indirect cost rate must be explained in detail. If the applicant organization has negotiated an indirect cost rate with another Federal agency, the applicant should include an attachment to the CSA Form 325 showing the rate, Federal agency and date negotiated. CSA will review this established indirect cost rate and determine its acceptability.

(3) The provisional approval by CSA of an indirect cost rate in a budget is subject to final negotiation and/or adjustment based upon an audit.

[41 FR 26689, June 29, 1976, as amended at 45 FR 64940, Oct. 1, 1980]

§ 1067.17-5 CSA Form 325, budget summary.

This form will be used in all initial and refunding grants and all budget amendments.

(a) Initial Grants. Applicants for initial grants should complete only items 1, 2, 3B, Columns E(1) and (2) of Section I, and item 1 of Section II on the CSA Form 325. Where the applicant has been informed that non-Federal share is not required Column E(2) should be left blank.

(b) Refunding Grants. Applicants for refunding should complete items 1 through 3 Columns C(1) and (2) and E(1) and (2) of Section I, and item 1 of Section

II of the CSA Form 325. Where non-Federal share is not required Columns C(2) and E(2) should be left blank. The figures in Column C should be taken directly from Column F of the CSA Form 325 of the last previous OED grant or amendment action. Any adjustments within the grantee's flexibility should be included. The figures in Column E for refunding actions should reflect the total budget authority requested which may be greater than the amount of new funding requested if the grantee has unexpended balances from the current grant. The figures in Column E should not be reduced by the amount of such unexpended balances. The most recent OEO Form 315a, Quarterly Financial Report, Support Data Sheet, must be attached to the 325 as support for the amount of unexpended funds claimed in Block 3D.

(c) Budget Amendments. For all categories of amendments 1, 2, 3.A, and 3.C on the CSA Form 324 are self-explanatory, Columns C (1) and (2) should show the safe figures appearing in Columns F (1) and (2) of the last previous CSA Form 325 approved by OED (unless adjusted by the grantee within the flexibility), and Section II should be omitted. Instructions for

completing items 3.B and 3.D and columns D and E vary depending on the nature of the amendment request, as follows:

(1) Increase in Total Program Costs-No Additional Funds. This type of amendment is required when the grantee has previously underestimated, at the time of the last refunding, the amount of unexpended CSA funds, and now is requesting authority to use those unexpended funds. Item 3.B should indicate the beginning and ending dates of the current funding period. Item 3.D should indicate the amount of unexpended CSA funds at the end of the prior funding period above and beyond the amount of CSA funds previously estimated by the grantee to be unexpended. For example, if the grantee previously, at the time of refunding, estimated unexpended funds to be $20,000, and the actual unexpended balance was $50,000, the figure in Item 3.D should be the difference, or $30,000. In item 3.D cross out the word "current" and substitute "prior". Column D should be completed so that the total of Column D(1) should equal the amount in item 3.D, with the total additional budget authority requested allocated to one or more cost categories. Column E should be a total, by cost category of Columns C and D.

(2) Increase in Total Program Costs-Supplementary Funds. (i) The beginning date in item 3.B should be the beginning date of the current funding period. If the amendment request is to supplement the current grant without extending the funding period beyond the current termination date, the ending date in item 3.B should be the termination date of the current funding period. If the request is to both supplement and extend the grant, the ending date in item 3.B should be the ending date of the requested extension. (NOTE: If the period of extension exceeds four months refunding application procedures should be followed.)

(ii) Item 3.D will normally be left blank, unless the grantee is both requesting authority to use unexpended funds and requesting additional new funds as well, in which case item 3.D will be completed as in section (i)

above. Columns D (1) and (2) should be completed to show, by cost category, the amount of additional budget authority requested. Where item 3.D has been left blank, the amount of the supplementary funds requested will equal the additional budget authority requested; where unexpended funds have been shown in item 3.D, the difference between the additional budget authority requested and the unexpended funds. Columns E (1) and (2) will be the totals of Columns C(1) and D(1) and of C(2) and D(2), respectively. If an extension of the funding period is being requested in addition to supplementary funds, the number of months of operation shown in Column E should be the total of the current funding period and the extension period.

(3) Shifts between cost categories. (i) Sections 1067.16-1 through 1067.16-7 (CSA Instruction 6710-7) provides instructions as to the flexibility which each grantee has in shifting funds between cost categories. For shifts in excess of that flexibility a budget amendment request is required. The beginning and ending dates in item 3.B should be the beginning and ending dates of the current funding period. Item 3.D should be left blank. Column D should show the requested increase or decrease in cost category 2.5, Investment Capital, or (for those few research or demonstration grants where indirect costs have been approved) the requested increase in cost 3.0, Indirect Costs and the offsetting decreases in one or more other cost categories.

(ii) Increase should be designated with plus (+) signs; decreases with minus (-) signs. The total Column D should be zero (0), since the total increases will be offset by the total decreases. Column E should be a total, by cost category, of Column C and D. The total for Column E will be the same as the total for Column C.

(4) No-cost extensions of four to twelve months. (i) Normally, when the funding period of a grant is extended for more than four months beyond its current termination date the extension is considered a refunding, subject to the requirements of § 1067.15-1 through § 1067.15-12 (CSA Instruction 6710-6). However, since no-cost exten

sion from four to 12 months involve the obligation of no additional funds and extend the grant for periods shorter than a normal refunding period, the documentary and procedural requirements applicable are those of an amendment. No-cost extensions of more than 12 months are subject to refunding procedures.

(ii) Since a no-cost extension of four to 12 months is in effect a refunding, the CSA Form 325 that accompanies this form of amendment request is prepared as if a refunding were being requested. Accordingly, the beginning and ending dates in item 3.B should be the appropriate dates for the period of the extension, i.e., the day after the current grant's termination date and the day the extension period will end. Item 3.D should always be completed, since if there are no unexpended funds available to cover costs to be incurred during the extension period a supplementary grant rather than a nocost extension would be required. The figure to be inserted in item 3.D will be the unexpended balance as of the end of the current grant. The most recent OEO Form 315a, Quarterly Financial Report, Support Data Sheet, must be attached to the 325 as support for the amount of unexpended funds claimed in block 3.D.

(iii) Since this kind of amendment request is prepared as a refunding, Column D of the CSA Form 325 should be left blank. Column E should be completed, showing the requested budget, by cost category, for the period of the extension (rather than a budget for the combined current period and the extension period). The total of Column E(1) should equal the figure in item 3.D since the requested budget is in effect a plan for using the unexpended funds available.

Subpart 1067.30-Preparation of CSA Form 314, Statement of CSA Grant (CSA Instruction 6710-CH10)

SOURCE: 41 FR 56197, Dec. 27, 1976, unless otherwise noted.

§ 1067.30-1 Applicability.

This subpart applies to all grants to public and private organizations made