proves the application substantially submitted, the Regional Director will provide the clearinghouse an explanation thereof.

(2) Where a clearinghouse has recommended against approval of a project because it conflicts with or duplicates another Federal or federally assisted project, the Regional Director will consult with the agency assisting the referenced projects prior to funding the application.

(c) Grants Officer. The Grants Officer shall serve as the coordinating official for A-95 in the Regional Office and as such shall be responsible for notifying the clearinghouses within seven working days of any major action taken on applications which have been reviewed by the clearinghouses. Major actions will include awards, rejections, deferrals, or withdrawals. The face page of the application of SF 424 will be utilized for this purpose.

APPENDIX-CLEARINGHOUSE REQUIREMENTS

Office of Management and Budget Circular No. A-95, Evaluation, Review, and Coordination of Federal and federally Assisted Programs and Projects, Part I, establishes clearinghouse procedures to be followed by applicants seeking Federal assistance under the following programs: Foster Grandparent Program, 72.001; Retired Senior Volunteer Program, 72.002; and Senior Companion Program, 72.008.

In applying for assistance from ACTION for one of the programs listed above, you are requested to submit a Notification of Intent to the State and areawide clearinghouses no later than 175 days prior to the start date shown on the application.

Applicants are urged to contact the clearinghouses at the earliest possible time to obtain forms and instructions for insuring expeditious clearinghouse review.

Your Notification of Intent must contain at a minimum a summary description of the project for which you are seeking assistance and will include:

1. Identity of the applicant agency, organization, or individual.

2. The geographic location of the project to be assisted.

3. A brief description of the proposed project by type, purpose, general size or scale, estimated cost, beneficiaries, or other characteristics which will enable the clearinghouses to identify agencies of State or local governments having plans, programs, or projects that might be affected by the proposed project.

4. The ACTION program title and number under which assistance will be sought. (See program title and number above).

5. The estimated date by which you expect to formally file an application.

It is recommended that the enclosed SF424 be utilized for your Notification of Intent, with the concurrence of the clearinghouses.

Clearinghouses have 30 days from receipt of your notice to inform appropriate agencies of your proposed project. The review may be completed in this period and comments submitted to you.

In cases where the clearinghouses have not completed their review within 30 days, you should forward your application for assistance to the clearinghouses no later than 145 days prior to the start date on the application.

Since ACTION cannot take any action on your application until the requirements of the Circular have been met, it is most important that you submit your notification to the clearinghouses at the earliest feasible time in order to assure maximum time for effective coordination and to avoid the delay of the submission of your application to ACTION.

You must include with your application any comments made by or through the clearinghouses and complete Item 22(b) on the face page of the application.

§ 1301.1-2 Definitions.

For the purposes of this part, unless the context requires otherwise:

(a) "Act" means title V of the Economic Opportunity Act of 1964.

(b) "Approved costs" means the total budget, including both the Federal share and the non-Federal share, for carrying out the program activities provided for in an approved application for a Headstart program.

(c) "Budget period" means the interval of time, usually 12 months, for which a grant is awarded.

(d) "Community" means a city, county, a multi-city or multi-county unit within a state, an Indian reservation, or any neighborhood or other geographic area (irrespective of boundaries or political subdivisions) which provides a suitable organizational base and possesses the commonality of interest needed to operate a Headstart program.

(e) "Headstart Agency" or "grantee" means a local public or private nonprofit agency designated to operate a Headstart program by the responsible HEW official, in accordance with part 1302 of this chapter.

means

a

(f) "Delegate agency" public or private non-profit organization or agency to which a grantee has delegated all or part of its responsibility for operating a Headstart program.

(g) "Headstart program" means a program, funded under the Act and carried out by a Headstart agency or a delegate agency, that provides ongoing comprehensive child development services.

(h) "Independent auditor" means an individual accountant or an accounting firm, public or private agency, association, corporation, or partnership,

that is sufficiently independent of the agency being audited to render objective and unbiased opinions, conclusions, and judgments.

(i) "Major disaster" means any natural disaster or catastrophe which is of such severity and magnitude as to directly affect the capability of the Headstart agency of agencies providing Headstart programs to the damaged community to continue the programs without an increase in the Federal share above 80 percent.

(j) "Responsible HEW official" means the official of the Department of Health, Education, and Welfare who has authority to make grants under the Act.

(k) "Development and administrative costs" are all costs other than those which are incurred in carrying out the education, health, social service, and parent involvement functions prescribed in part 1304 of this chapter. These costs include, but are not limited to, the personnel and other costs of overall planning, coordination, general program direction, accounting, auditing, bonding, insurance, and the allocated costs of occupying, operating, and maintaining the space utilized for these purposes.

(1) "Totals costs" means the sum of all approved costs incurred in operating a Headstart program during an approved budget period.

Subpart B-Applicability of HEW General Grant Administration Regulations

§ 1301.2-1 General.

Part 74 of this title establishes uniform requirements for the administration of grants and principles for determining costs that are applicable to all HEW grant programs, except as specifically stated otherwise. Part 74 shall apply to all grants made under the act, except that: § 1301.2-2 supersedes the insurance and bonding requirements of § 74.15 with respect to private nonprofit Headstart agencies; and § 1301.2-3 supersedes the audit re

quirements of § 74.61(h) with respect to all Headstart agencies.

§ 1301.2-2 Insurance and bonding.

(a) Private nonprofit Headstart agencies and their delegate agencies shall carry reasonable amounts of student accident insurance, liability insurance for accidents of their premises, and transporation liability insur

ance.

(b) Private nonprofit Headstart and delegate agencies shall make arrangements for bonding officials and employees authorized to disburse program funds.

§ 1301.2-3 Annual audit of Headstart programs.

(a) An audit of the Headstart program covering the prior budget period of each Headstart agency and its delegate agencies, if any, shall be made by an independent auditor to determine: (1) Whether the agency's financial statements are accurate; (2) whether the agency is complying with the terms and conditions of the grant; and (3) whether appropriate financial and administrative procedures and controls have been installed and are oper. ating effectively. Headstart agencies shall either include delegate agency audits as a part of their own audits or provide for separate independent audits of their delegate agencies.

(b) Upon a written request showing necessity, the responsible HEW official may approve a period other than the prior budget period to be covered by the annual audit.

(c) Unless otherwise approved by the responsible HEW official, the report of the audit shall be submitted to the responsible HEW official, in the manner and form prescribed by him or her, within 4 months after the prior budget period.

§ 1301.2-4 Accounting system certification.

(a) Upon request by the responsible HEW official, each Headstart agency or its delegate agency shall submit an accounting system certification, prepared by an independent auditor, stat