[Federal Register Volume 59, Number 129 (Thursday, July 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16422]
[[Page Unknown]]
[Federal Register: July 7, 1994]
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DEPARTMENT OF AGRICULTURE
Rural Development Administration
Submission of Information Collection to OMB (Under Paperwork
Reduction Act and 5 CFR Part 1320)
AGENCY: Rural Development Administration, USDA.
ACTION: Notice.
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SUMMARY: The proposed information collection requirements described
below have been submitted to the Office of Management and Budget (OMB)
for expedited clearance under 5 CFR 1320.18. The Agency is soliciting
public comments on the subject submission. This action is necessary in
order for the Agency to promulgate a new regulation to administer the
Rural Technology Development Grants (RTDG) program as required by
legislation. Fiscal year (FY) 1994 appropriation contained $1.5 million
for the RTDG program. Implementation of this regulation is required to
administer FY 1994 grants before the end of the FY, since appropriated
funds cannot be carried forward. It is essential that ample time be
given for applicants to complete the application process. Failure to
implement this program and award FY 1994 grants will result in a
negative impact in the rural areas.
ADDRESSES: Interested persons are invited to submit comments regarding
this submission. Comments should refer to the proposal by name and
should be sent to: Lisa Grove, USDA Desk Officer, Office of Management
and Budget, New Executive Office Building, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Jennifer Barton, Loan Specialist,
Community Facilities Division, Room 6304, South Agriculture Building,
14th and Independence Avenue SW., Washington, DC 20250-0700, Telephone:
(202) 720-1504.
SUPPLEMENTARY INFORMATION: This Notice informs the public that the
Rural Development Administration (RDA), USDA, has submitted to OMB, for
expedited processing, this proposal for collection of information for
clearance as required by the Paperwork Reduction Act (44 U.S.C. Chapter
35). It is requested that OMB approve this submission within 10 days.
Authority: Section 3507 of the Paperwork Reduction Act, 44
U.S.C. 3507.
Supporting Statement
7 CFR 4284-F, Rural Technology Development Grants
1. Explanation of the circumstances that make the collection of
information necessary--Public Law 101-624, Section 2347 (7 U.S.C. 1932
(f) through (h) authorizes grants to establish centers for rural
technology and cooperative development. In order for an eligible
applicant to apply for and receive the grant, application must be made
at the Farmers Home Administration (FmHA) State Office.
7 CFR 4284 Subpart F contains the specific eligibility
requirements, the application procedures, the evaluation process RDA
uses to make selection decisions, and the servicing requirements.
Grants are competitive and will be awarded based on specific selection
criteria required by legislation. Project selection will be given to
those projects that contribute the most to the improvement of economic
conditions of rural areas. The information submitted should provide an
accurate picture of the economic conditions of the rural areas to be
served.
2. How, by whom, and for what purpose the information is to be
used--The various forms and narrative requirements contained within
this regulation are collected from applicants who are public bodies or
nonprofit institutions. This information is used for determining such
factors as: (1) eligibility; (2) the specific purposes for which grant
funds will be utilized; (3) timeframes or dates by which funds will be
used; (4) who will be carrying out the purposes for which the grant is
made; (5) project priority; (6) applicant's experience in administering
a rural economic development program; (7) employment and economic
development improvement; and (8) geographic location of the area/
business(s) to be served. This information is collected in the process
of developing the full application and will be gathered in the FmHA
State Offices.
Grant selection priority points and general project evaluation will
be provided for applications based on the economic conditions, project
proposal, applicant experience, as well as commitments by other funding
sources.
If the information is not collected, FmHA will not be able to
determine: (a) the eligibility of the applicant/projects; (b) whether
applicable laws and regulations are complied with; and (c) the
feasibility of the project.
A summary of the reporting burden to be cleared with this request
is described as follows:
Intergovernmental Consultations
This consultation is required in accordance with Executive Order
12372.
Evidence of Legal Existence and Authority
The applicant must provide organizational documents to verify its
eligibility in the program.
Financial Information
The applicant's latest financial information must be submitted to
verify the organization's financial capacity to carry out the proposed
work. The information must include the current year balance sheet and
income statement. -----
Source and Certification of Other Funds
The source and amount of applicant's matching share and other
funding sources and amounts to be contributed to the project must be
identified. The applicant will be requested to provide certification
that it has its matching share of funds available for use on the
project and certifications from other funding sources identified as
contributing to the grant project. This information will be used by
FmHA in making grant selections and in determining that the required
funds for the projects will be available.
Budget
The budget must be prepared by the applicant as a plan for the
categories of costs under the grant and will be used by FmHA to monitor
the use of funds and accomplishments of the grantee.
Area To Be Served
The applicant must identify the area to be served which includes
governmental units, town, county, etc.
Demographic Information
The applicant must provide information concerning the project area
relating to rural industries and agribusinesses, underemployment,
outmigration of people and businesses and industries from the area, and
per capita income of the area. This information will be used to select
projects that will benefit the most needy areas. The applicant must
submit the most current full calendar year for which data is available
and the 3 previous calendar years, if available.
Businesses To Be Assisted
This information is requested to determine the method and rationale
that the applicant used to select areas and businesses to be assisted
by their proposed project to determine that the selection was objective
and reached the most needy areas/businesses.
Applicant Experience
The applicant must submit a description of its experience and
capability in carrying out similar types of programs to be used to show
its ability to carry out the grant purposes.
Duration of Project
The applicant must provide FmHA with the number of months duration
of the project or service and the estimated time it will take from
grant approval to beginning of service.
Source of Work To Be Performed
The applicant must submit a brief description of how the work will
be performed and whether organizational staff or consultants/
contractors will be used.
Evaluation Method
The applicant's evaluation method for determining whether the
objectives of the project are being met must be provided so that FmHA
can determine that the applicant objectively evaluates its project
work.
Plan for Rural Technology Development Grants
Applicants must provide a brief plan which describes how they will
meet certain provisions relating to how the center will effectively
serve rural areas; improve the economic condition of rural areas by
promoting the development and commercialization of new products,
processes, and services, and new enterprises that can add value to on-
farm production through processing or marketing; description of
proposed grant activities and results; provisions for consultation with
business, industry, educational institutions, Federal Government,
State, and local governments, and specifically consultation with
colleges/universities administering Extension Service programs;
provisions for obtaining other funding sources; provisions for
monitoring/evaluating the center's activities and accounting for grant
funds; and provisions for optimal application of technology and
cooperative development in rural areas, especially areas adversely
affected by adverse agricultural economic conditions. This information
will be used by RDA to determine that the application meets the intent
of the program and to make a determination concerning grant selection
of a project.
Proposed Agreement Between Applicants and Ultimate Recipients
If grant funds will be used for the purpose of making loans/grants
to businesses (ultimate recipients), the applicant must provide a
proposed agreement which reflects the grantee and the ultimate
recipient's responsibilities in use of grant funds.
Plan To Provide Financial Assistance to Third Parties
If the project plan is to provide financial assistance to third
parties from a revolving fund established, in part, with RTDG funds,
the applicant must provide RDA with information regarding the project
to be financed, sources of all non-RTDG funds, amount of technical
assistance, purposes of loans/grants, project priority, length of time
for completion of each project, and other relevant information. This
information will be used to ensure that loans made as a direct result
of grant funds are being utilized in accordance with RDA regulations
(including EEO laws) and environmental regulations and will help ensure
that objectives and purposes of the grant program are met.
Scope of Work
The scope of work must be prepared by the applicant. It is a
summary of previously gathered information concerning the use of the
grant funds, timeframes for actions, key personnel to be utilized, and
the use of other than RTDG funds. This information will be used to
monitor what is accomplished by the grantee.
Request for Appeal
If applicable, this is a letter from the grantee requesting a
review of any adverse decision made by RDA.
Evidence of Authority To Execute Documents
The evidence of authority to execute documents will be used by FmHA
as evidence that the person executing applicable grant documents on the
behalf of the applicant organization has the authority to obligate the
applicant organization.
Evidence of Fidelity Bond Coverage
Fidelity bonds are required for an amount equal to the greatest
amount of funds on hand by a grantee. This is to ensure that if funds
are somehow lost, stolen, misappropriated, etc., that the actual loss
to the grantee will be mitigated and that purposes of the grant will
continue.
Project Performance Report
Applicants are required to submit project performance reports in
accordance with 7 CFR parts 3015 and 3016. These reports are necessary
to monitor the appropriate use of grant funds. The project performance
report shall include, but need not be limited to:
1. A comparison of actual accomplishments to the objectives
established for that period;
2. Reasons why established objectives were not met;
3. Problems, delays, or adverse conditions which will materially
affect attainment of planned project objectives, prevent the meeting of
time schedules or objectives, or preclude the attainment of project
work elements during established time periods. This disclosure shall be
accompanied by a statement of the action taken, or contemplated, to
resolve the situation;
4. Objectives established for the next reporting period;
5. Why available information cannot be used or modified.--Status of
compliance with any special conditions on the use of grant funds.
Audit Report
Audit reports will be required in accordance with 7 CFR 3015 and
3016 to determine that grant funds have been utilized for approved
purposes.
AD-1049, Certification Regarding Drug-Free Workplace Requirements
(Grants) Alternative I--for Grantees Other Than Individuals
AD-1049 will be executed by the applicant no later than grant
closing to certify that the drug-free workplace requirements will be
met. The use of this form complies with 7 CFR part 3017.
SF-424.1, Application for Federal Assistance
The SF-424 will be utilized for preapplications for the program.
Applicants are initially requested to utilize a preapplication to
provide detailed information for RDA to use in determining eligibility
and priority for available funds. The information will be utilized by
RDA to determine that applicants meet the eligibility criteria mandated
by law and have the capability and resources to carry out the proposed
projects.
SF-424.1, Application for Federal Assistance
The application and related information will be used by RDA to
approve the project. The applicants are asked to provide a minimum
amount of additional information with their applications.
SF-269, Financial Status Report
SF-269 will be used by RDA to quarterly monitor the financial
status of the grantee. The use of this form complies with 7 CFR parts
3015 and 3016.
SF-270, Request for Advance or Reimbursement
SF-270 will be submitted by the grantee and used by RDA to document
disbursement of grant funds. The use of this form complies with 7 CFR
parts 3015 and 3016.
Exhibit A--Agreement of Administrative Requirements for Rural
Technology Development Grants
This exhibit contains information regarding the responsibilities of
the grantee for receipt of grant funds under the Rural Technology
Development Grant program. The grantee must read, understand, and sign
this agreement.
Record Keeping Requirements
Financial Records
Grantees must maintain financial management systems and retain
financial records in accordance with standards prescribed in 7 CFR
parts 3015 and 3016, as appropriate, in accordance with terms and
conditions of the grant. Grantee records must include an accurate
accounting and must document how these funds are used.
Property Records
Grantees must maintain property records in accordance with
standards prescribed in 7 CFR parts 3015 and 3016, as appropriate, in
accordance with terms and conditions of the grant.
3. Use of improved technology.--Improved information technology may
be used by the grantee; however, each grantee may be relatively small
and high technology information transfer is not considered economically
justifiable by FmHA or the grantees. The collection of information
required by this regulation is minimal and is more a synopsis of
grantee activities than original data.
4. Efforts to identify duplication.--The Agency has reviewed all
grant programs it administers to determine which programs may be
similar in intent and purpose. The Agency has several grant programs
that are similar. It is doubtful that an applicant would apply for
funding under the RTDG program at the same time and for the same
purpose as an application under another program. However, if there were
simultaneous participation in more than one grant program, the Agency
would make every effort to accommodate the requests within the same set
of applications and processing forms. This effort is presently
facilitated by assignment of management of these programs to the same
program area of responsibility. If a grantee is applying for, or
receiving, a grant from another Federal agency, the forms and documents
furnished to the other agency would be utilized to the extent possible.
5. Why available information cannot be used or modified.--As stated
in 4, if similar information is available within RDA or another agency,
every effort would be made to utilize that information as is or in an
appropriately modified form for this program.
6. Methods to minimize burden of small businesses or entities.--The
information to be collected is in a format designed to minimize the
paperwork burden on small businesses and other small entities. The
information collected is the minimum needed by the Agency to approve
grants and monitor the grantee performance.
7. Consequence if information collection were less frequent.--If
the collection of information were conducted less frequently, it could
have an adverse effect on the Agency's ability to administer the grant
program. The Agency must determine that the grant funds are to be used
by the eligible applicants for authorized purposes.
8. Inconsistency with guidelines in 5 CFR 1320.6.--There are no
special circumstances that require the collection to be conducted in a
manner inconsistent with the guidelines in 7 CFR 1320.6, except for SF-
270. The SF-270 is submitted voluntarily during the disbursement
period; requests are limited to one every 30 days.
9. Consultation with persons outside of Agency.--The regulation is
being published as an interim rule in the Federal Register with a
request for comments. Implementation of this program is required by
legislation. No consultations have been made at this time; however,
comments on the interim rule will be considered.
10. Confidentially provided to respondent.--No assurance of
confidentiality is provided to applicants and grantees beyond that
required by law.
11. Questions of a sensitive nature.--There will be no collection
of any information that would be considered sensitive in nature or
commonly considered private.
12. Annualized costs to Federal Government and respondents.--The
Agency estimates the cost to the respondents to comply with this
regulation to be $78,715. This is based on an estimate of 100
organizations filing a preapplication and the Agency making 50 of them
a grant. The Agency used $13.00 per hour based on information from
similar programs. It is estimated that the primary respondents for the
grantee would be a director earning $10.80 to $15.45 per hour.
The cost to the Federal Government to collect and evaluate this
information is estimated to be $71,718. This includes staff time,
printing, publication of regulations, operational expenses, and
overhead. Staff time will vary with appropriation levels because the
amount of available resources does affect how many applicants will
apply and need evaluation for funding and how many projects will need
monitoring and servicing. This estimated cost is based on the grants
being approved and serviced in the State Office.
13. Estimate of burden.--We estimate the total annual man hours
required to comply with this regulation to be 6,055. It is estimated
that 100 organizations will file a preapplication and 50 grantees will
be selected for funding. This estimate is based on historical data from
similar FmHA programs.
14. Reason for changes in burden.--This is an initial request for
OMB clearance.
15. Tabulation, analysis, and publication plans.--The information
collected is not for the purpose of publication.
Subpart F--Rural Technology Development Grants
Table of Contents
Sec.
4284.501 Purpose.
4284.502 Policy.
4284.503 [Reserved]
4284.504 Definitions.
4284.505 Applicant eligibility.
4284.506-4284.514 [Reserved]
4284.515 Grant purposes.
4284.516 Ineligible grant purposes.
4284.517-4284.526 [Reserved]
4284.540 Grant selection criteria.
4284.527 Other considerations.
4284.528 Application processing.
4284.529-4284.539 [Reserved]
4284.541 Grant approval, fund obligation, grant closing, and third-
party financial assistance.
4284.542-4284.555 [Reserved]
4284.556 Docket preparation and Letter of Conditions.
4284.557 Fund disbursement.
4284.558 Reporting.
4284.559-4284.570 [Reserved]
4284.571 Audit requirements.
4284.572 Grant servicing.
4284.573 Programmatic changes.
4284.574 Subsequent grants.
4284.575 Grant suspension, termination, and cancellation.
4284.576-4284.586 [Reserved]
4284.587 Exception authority.
4284.588 Forms and exhibits.
4284.589-4284.599 [Reserved]
4284.600 OMB control number.
Subpart F--Rural Technology Development Grants
Sec. 4284.501 Purpose
(a) This subpart outlines the Rural Development Administration's
(RDA) policies and authorizations and sets forth procedures to
provide grants for technology and cooperative development in rural
areas. Grants will not be awarded under this subpart after July 13,
1995.
(b) Grants for establishing and operating centers for rural
technology or cooperative development will be for the primary
purpose of improving the economic condition of rural areas by
promoting the development (through technological innovation,
cooperative development, and adaptation of existing technology) and
commercialization of new services and products that can be produced
or provided in rural areas; new processes that can be utilized in
the production of products in rural areas; and new enterprises that
can add value to on-farm production through processing or marketing.
(c) Copies of all forms and Instructions referenced in this
subpart are available in the Farmers Home Administration (FmHA)/RDA
National Office or any FmHA State Office.
Sec. 4284.502 Policy
(a) The grant program will be used to assist in the economic
development of rural areas.
(b) Funds allocated for use in accordance with this subpart are
also to be considered for use by Native American tribes within the
State regardless of whether State development strategies include
Indian reservations within the State's boundaries. Native American
tribes residing on such reservations must have equal opportunity
along with other rural residents to participate in the benefits of
these programs. This includes equal application of outreach
activities of RDA servicing offices.
Sec. 4284.503 [Reserved]
Sec. 4284.504 Definitions
Approval official--Any authorized FmHA/RDA official.
Cooperative--An association organized to provide a specific
service with open membership, equality in ownership and control,
limited return on members' capital, and equitable methods to
distribute any excess earnings back to its members.
Cooperative development--The startup or expansion of a
cooperative which will promote the development of new services and
products that can be produced or provided in rural areas, new
processes that can be utilized in the production of products in
rural areas, and/or new enterprises that can add value to on-farm
production through processing or marketing.
Economic development--The growth of an area as evidenced by
increases in total income, employment opportunities, decreased
outmigration of populations, value of production, increased
diversification of industry, higher labor force participation rates,
increased duration of employment, higher wage levels, and/or gains
in other measurements of economic activity, such as land values.
Nonprofit institutions--Any organization or institution,
including an accredited institution of higher education, no part of
the net earnings of which inures, or may lawfully inure, to the
benefit of any private shareholder or individual.
Project--The undertaking for which funds will be used to develop
or operate a technology and/or cooperative development center.
Public body--Any State, county, city, township, incorporated
towns and villages, boroughs, authorities, districts, locally-based
areawide economic development organizations, and Indian tribes on
Federal and State reservations, and other federally recognized
Indian tribes in rural areas.
Servicing office--Any FmHA/RDA State office.
Small business--A business which does not exceed the maximum
number of employees or annual receipts allowed for a concern
(including its affiliates) to be considered small according to the
established size standards for Small Business Administration (SBA)
assistance as set forth in 13 CFR, part 121. The business may be
operated on a profit or nonprofit basis but must rely primarily on
revenues of the business for operation.
Technology--The application of science to industrial or
commercial objectives. The entire body of methods and material used
to achieve such objectives.
Technology development--The creation of new technology or the
use and application of existing technology to promote the
development and commercialization of new products, new processes,
and new services that can be produced or provided in rural areas.
Rural and rural area--Includes all territory of a State, the
Commonwealth of Puerto Rico, the Virgin Islands of the United
States, Guam, American Samoa, or the Commonwealth of the Mariana
Islands that is not within the outer boundary of any city having a
population of 50,000 or more and its immediately adjacent urbanized
and urbanizing areas with a population density of more than 100
persons per square mile, as determined by the Secretary of
Agriculture according to the latest decennial census of the United
States.
Urbanized area--An area immediately adjacent to a city having a
population of 50,000 or more which, for general social and economic
purposes, constitutes a single community and has a boundary
contiguous with that of the city. Such community may be incorporated
or unincorporated to extend from the contiguous boundary(ies) to
recognizable open country, less densely settled areas, or natural
boundaries such as forests or water. Minor open spaces such as
airports, industrial sites, recreational facilities, or public parks
shall be disregarded. Outer boundaries of an incorporated community
extend at least to its legal boundaries. Cities which may have a
contiguous border with another city, but are located across a river
from such city, are recognized as a separate community and are not
otherwise considered a part of an urbanized or urbanizing area, as
defined in this section, are not in a nonrural area.
Urbanizing area--A community which is not now, or within the
foreseeable future not likely to be, clearly separate from and
independent of a city of 50,000 or more population and its
immediately adjacent urbanized areas. A community is considered
``separate from'' when it is separated from the city and its
immediately adjacent urbanized area by open country, less densely
settled areas, or natural barriers such as forests or water. Minor
open spaces such as airports, industrial sites, recreational
facilities, or public parks shall be disregarded. A community is
considered ``independent of'' when its social and economic structure
(e.g., government; educational, health, and recreational facilities;
and business, industry, tax base, and employment opportunities) is
not primarily dependent on the city and its immediately adjacent
urbanized areas.
Sec. 4284.505 Applicant Eligibility
(a) Grants may be made to public bodies or nonprofit
institutions.
(1) The RDA will proceed as follows in rural area
determinations: When the RDA determines an area to be urbanized or
urbanizing, he/she must then determine the population density per
square mile. If the project otherwise appears to be eligible, the
RDA will request the National Office to provide the correct density
figure.
(2) All such density determinations will be made on the basis of
minor civil division or census county division as used by the Bureau
of the Census. In making the density calculations, large
nonresidential tracts devoted to urban land uses such as railroad
yards, airports, industrial sites, parks, golf courses, and
cemeteries or land set aside for such purposes will be excluded.
(b) An outstanding judgement obtained against an applicant by
the United States in a Federal Court (other than in the United
States Tax Court), which has been recorded, shall cause the
applicant to be ineligible to receive any grant or loan until the
judgement is paid in full or otherwise satisfied. RDA grant funds
may not be used to satisfy the judgement. Questions about whether or
not a judgement is still outstanding should be directed to the
Office of the General Counsel (OGC).
Secs. 4284.506-4284.514 [Reserved]
Sec. 4284.515 Grant Purposes
Grant funds may be used to pay up to 75 percent of the costs for
establishing and/or operating centers for rural technology and/or
cooperative development. Applicant's contribution may be in cash or
third party in-kind contribution in accordance with parts 3015 and
3016 of this title. Grant funds may be used for, but are not limited
to, the following purposes:
(a) Technology research, investigations, and basic feasibility
studies in any field or discipline for the purpose of generating
principles, facts, technical knowledge, new technology, or other
information that may be useful to rural industries, cooperatives,
agribusinesses, and other persons or entities in rural areas served
by such centers in the development and commercialization of new
products, processes, or services.
(b) The collection, interpretation, and dissemination of
principles, facts, technical knowledge, new technology, or other
information that may be useful to rural industries, cooperatives,
agribusinesses, and other persons or entities in rural areas served
by the center in the development and commercialization of new
products, processes, or services.
(c) Providing training and instruction for individuals residing
in rural areas served by the center with respect to the development
(through technological innovation, cooperative development, and
adaptation of existing technology) and commercialization of new
products, processes, or services.
(d) Providing loans and grants to individuals, small businesses
and cooperatives in rural areas for purposes of generating,
evaluating, developing and commercializing new products, processes,
or services.
(e) Providing technical assistance and advisory services to
individuals, small businesses, cooperatives, and industries in rural
areas served by the center for purposes of developing and
commercializing new products, processes, or services.
(f) Providing research and support to individuals, small
businesses, cooperatives, and industries in rural areas served by
the center for purposes of developing new agricultural enterprises
to add value to on-farm production through processing or marketing.
(g) Paying up to 75 percent of the administrative costs of the
applicant in carrying out its projects.
(h) Equipment and materials necessary to carry out other
eligible grant purposes under this section.
Sec. 4284.516 Ineligible Grant Purposes
Grant funds may not be used to:
(a) Pay more than 75 percent of a project cost.
(b) Pay more than 75 percent of administrative costs.
(c) Duplicate current services or replace or substitute support
previously provided.
(d) Pay costs of preparing the application package for funding
under this program.
(e) Pay costs incurred prior to the effective date of the grant
made under this subpart.
(f) Pay for building construction or the purchase of real estate
or vehicles; improving and/or renovation of office space; or repair
or maintenance of privately-owned property.
(g) Fund political activities.
(h) Pay for assistance to any private business enterprise which
does not have at least 51 percent ownership by those who are either
citizens of the United States or reside in the United States after
being legally admitted for permanent residence.
Secs. 4284.517-4284.526 [Reserved]
Sec. 4284.527 Other Considerations
(a) Civil rights compliance requirements. All grants made under
this subpart are subject to the requirements of Title VI of the
Civil Rights Act of 1964 which prohibits discrimination on the basis
of race, color, and national origin as outlined in subpart E of part
1901 of this title. In addition, the grants made under this subpart
are subject to the requirements of section 504 of the Rehabilitation
Act of 1973 which prohibits discrimination on the basis of handicap;
the requirements of the Age Discrimination Act of 1975 which
prohibits discrimination on the basis of age; and Title III of the
Americans with Disabilities Act, Pub. L. 101-336, which prohibits
discrimination on the basis of disability by private entities in
places of public accommodations.
(b) Environmental requirements.
(1) General applicability. Unless specifically modified by this
section, the requirements of subpart G of part 1940 of this title
apply to this subpart. RDA will give particular emphasis to ensuring
compliance with the environmental policies contained in
Secs. 1940.303 and 1940.304 of subpart G of part 1940 of this title.
Although the purpose of the grant program established by this
subpart is to improve business, industry, and employment in rural
areas, this purpose is to be achieved, to the extent practicable,
without adversely affecting important environmental resources of
rural areas such as important farmland and forest lands, prime
rangelands, wetland and floodplains. Prospective recipients of
grants, therefore, must consider the potential environmental impacts
of their applications at the earliest planning stages and develop
plans and projects that minimize the potential to adversely impact
on the environment.
(2) Technical assistance. An application for a technical
assistance project is generally excluded from the environmental
review process by Sec. 1940.333 of subpart G of part 1940 of this
title. However, as further specified in that section, the grantee of
a technical assistance grant, in the process of providing technical
assistance, must consider the potential environmental impacts of the
recommendations provided to the recipient of the technical
assistance.
(3) Applications for grants to provide financial assistance to
third-party recipients. As part of the preapplication, the applicant
must provide a complete Form FmHA 1940-20, ``Request for
Environmental Information,'' for each project specifically
identified in its plan to provide financial assistance to third
parties who will undertake eligible projects with such assistance.
RDA will review the preapplication, supporting materials, and any
required Forms FmHA 1940-20 and initiate a Class II assessment for
the preapplication in accordance with Sec. 1940.318 of subpart G of
part 1940 of this title. This assessment will focus on the potential
cumulative impacts of the projects as well as any environmental
concerns or problems that are associated with individual projects
and that can be identified at this time from the information
submitted. Because RDA's approval of this type of grant application
does not constitute RDA's commitment to the use of grant funds for
any identified third-party projects (see Sec. 4284.541 of this
subpart), no public notification requirements for a Class II
assessment will apply to the preapplication. After the grant is
approved, each third-party project to be assisted under the grant
will undergo the applicable environmental review and public
notification requirements in subpart G of part 1940 of this title
prior to RDA providing its consent to the grantee to assist the
third-party project. If the preapplication reflects only one
specific project which is specifically identified as the third-party
recipient for financial assistance, RDA may perform the appropriate
environmental assessment in accordance with the requirements of
subpart G of part 1940 of this title and forego initiating a Class
II assessment with no public notification. However, the applicant
must be advised that if the recipient or project changes after the
grant is approved, the project to be assisted under the grant will
undergo the applicable environmental review and public notification
requirements in subpart G of part 1940 of this title.
(c) Governmentwide debarment and suspension (nonprocurement) and
requirements for drug-free workplace. All projects must comply with
the requirements set forth in part 3017 of this title and FmHA
Instruction 1940-M (available in any State RDA/FmHA office).
(d) Restrictions on lobbying. All grants must comply with the
lobbying restrictions set forth in part 3018 of this title.
(e) Excess capacity or transfer of employment.
(1) If a proposed grant is for more than $1 million and will
increase direct employment by more than 50 employees, the applicant
will be requested to provide written support for an RDA
determination that the proposal will not result in a project which
is calculated to, or likely to, result in:
(i) The transfer of any employment or business activity from one
area to another (this limitation shall not prohibit assistance for
the expansion of an existing business entity through the
establishment of a new branch, affiliate, or subsidiary of such
entity if the expansion will not result in an increase in the
unemployment in the area of original location or in any other area
where such entity conducts business operations unless there is
reason to believe that such expansion is being established with the
intention of closing down the operations of the existing business
entity in the area of its original location or in any other area
where it conducts such operations), or
(ii) An increase in the production of goods, materials, or
commodities or the availability of services or facilities in the
area when there is not sufficient demand for such goods, materials,
commodities, services, or facilities to employ the efficient
capacity of existing competitive commercial or industrial
enterprises, unless such financial or other assistance will not have
an adverse effect upon existing competitive enterprises in the area.
The applicant's written support will consist of a resolution from
the applicant and Form FmHA 449-22, ``Certification of Non-
Relocation and Market and Capacity Information Report,'' from each
existing and future occupant of the site. The applicant may use
Guide 2 of subpart G of part 1942 (available in any State RDA/FmHA
office) as an example in preparing the resolution. Future occupants
of the site must be certified by Department of Labor (DOL) as
outlined in paragraph (e)(3) of this section for a period of 3 years
after the initial certification by DOL.
(2) RDA will check each document for completeness and accuracy
and submit nine copies of each to the National Office for forwarding
to DOL.
(3) Grants shall not be made if the Secretary of Labor certifies
within 30 days after the matter has been submitted by the Secretary
of Agriculture that the provisions of paragraph (e)(1) of this
section have not been met. Information for obtaining this
certification will be submitted, in writing, by the applicant to
RDA. The information will be submitted to DOL by the RDA National
Office. Grant approval may be given and funds may be obligated,
subject to the DOL certification being received, provided RDA has
made its own separate determinations of (e)(1)(i) and (ii) of this
section when applicable.
(f) Management assistance. Grant recipients will be supervised,
as necessary, to ensure that projects are completed in accordance
with approved plans and specifications and that funds are expended
for approved purposes. Grants made under this subpart will be
administered under, and are subject to parts 3015, 3016, and 3017 of
this title, as appropriate, and established RDA guidelines.
(g) National Historic Preservation Act of 1966. All projects
will be in compliance with the National Historic Preservation Act of
1966 in accordance with subpart F of part 1901 of this title.
(h) Uniform Relocation Assistance and Real Property Acquisition
Policies Act. All projects must comply with the requirements set
forth in part 21 of this title.
(i) Floodplains and wetlands. All projects must comply with
Executive Order 11988, ``Floodplain Management,'' and Executive
Order 11990, ``Protection of Wetlands.''
(j) Flood or mudslide hazard area precautions. If the grantee
financed project is in a flood or mudslide area, flood or mudslide
insurance must be provided.
(k) Termination of Federal requirements. Once the grantee has
provided 29 assistance to projects from a revolving fund, in an
amount equal to the grant provided by RDA, the requirements imposed
on the grantee shall not be applicable to any new projects
thereafter financed from the revolving funds. Such new projects
shall not be considered as being derived from Federal funds.
(l) Intergovernmental review. Grant projects are subject to the
provisions of Executive Order 12372 which requires intergovernmental
consultation with State and local officials. A revolving fund
established in whole, or in part, with grant funds will also be
considered a project for the purpose of intergovernmental review as
well as the specific projects funded with grant funds from the
revolving loan project. For each project to be assisted with a grant
under this subpart and for which the State has elected to review the
project under their intergovernmental review process, the State
Point of Contact must be notified. Notification, in the form of a
project description, can be initiated by the grantee. Any comments
from the State must be included with the grantee's request to use
RDA grant funds for the specific project. Prior to RDA's decision on
the request, compliance with requirements of intergovernmental
consultation must be demonstrated for each project. These
requirements should be carried out in accordance with subpart V,
``Intergovernmental Review of Department of Agriculture Programs and
Activities,'' of part 3015 of this title (see subpart J of part 1940
of this title, available in any State RDA/FmHA office).
Sec. 4284.528 Application Processing
(a) Preapplications.
(1) Applicants will file an original and one copy of Standard
Form (SF)-424.1, ``Application for Federal Assistance (For Non-
construction),'' with the appropriate RDA office. This form is
available in any State RDA/FmHA office.
(2) All preapplications shall be accompanied by:
(i) Evidence of applicant's legal existence and authority to
perform the proposed activities under the grant.
(ii) Latest financial information to show the organization's
financial capacity to carry out the proposed work. At a minimum, the
information should include a balance sheet and an income statement.
A current audit report is preferred where one is reasonably
obtainable.
(iii) Estimated breakdown of total costs, including costs to be
funded by the applicant as well as other sources. Other sources
should be identified. Certification must be provided from the
applicant that its matching share to the project is available and
will be used for the project. The matching share must meet the
requirements of parts 3015 and 3016 of this title. Certifications
from an authorized representative of each source of funds must be
provided indicating that funds are available and will be used for
the proposed project.
(iv) Budget and description of the accounting system in place or
proposed.
(v) Area to be served, identifying each government unit, i.e.,
town, county, etc., if affected by the proposed project and evidence
of support and concurrence in the proposed project from the affected
local governmental bodies as evidenced by resolution or a written
statement from the chief elected local official.
(vi) The most current demographic information (and source) about
the area to be served which includes information on the rural
industries and agribusinesses in the area; unemployment rate;
description of under employment in the area; information regarding
outmigration of people; businesses and industries; and the per
capita income of the area. The source of information and dates must
be identified and must be from a recognized source such as Census
data or State employment data.
(vii) Businesses to be assisted.
(viii) Applicant's experience, including experience of key staff
members and person(s) who will be providing the proposed service(s)
and managing the project.
(ix) The number of months duration of the project or service and
the estimated time it will take from grant approval to beginning of
service.
(x) Method and rationale used to select the areas/businesses
that will receive the service.
(xi) Brief description of how the work will be performed and
whether organizational staff or consultants/contractors will be
used.
(xii) Evaluation method to be used by the applicant to determine
if objectives of the proposed activity are being accomplished.
(xiii) A brief plan which contains the following provisions and
describes how the applicant will meet those provisions:
(A) A provision that substantiates that the applicant will
effectively serve rural areas in the United States.
(B) A provision that the primary objective of the applicant will
be to improve the economic condition of rural areas by promoting the
development (through technological innovation, cooperative
development, and adaptation of existing technology) and
commercialization of:
(1) New services and products that can be produced or provided
in rural areas;
(2) New processes that can be utilized in the production of
products in rural areas; and
(3) New enterprises that can add value to on-farm production
through processing or marketing.
(C) A description of the activities that the applicant will
carry out to accomplish such objective.
(D) A description of the proposed activities to be funded under
this subpart.
(E) A description of the contributions that the applicant's
proposed activities are likely to make to the improvement of the
economic conditions of the rural areas served by the applicant.
(F) Provisions that the applicant, in carrying out its
activities, will seek, where appropriate, the advice, participation,
expertise, and assistance of representatives of business, industry,
educational institutions, the Federal Government, and State and
local governments.
(G) Provisions that the applicant will consult with any college
or university administering Extension Service programs and cooperate
with such college or university in the coordination of the center's
activities and programs.
(H) Provisions that the applicant will take all practicable
steps to develop continuing sources of financial support for the
center, particularly from sources in the private sector.
(I) Provisions for:
(1) Monitoring and evaluating its activities; and
(2) Accounting for money received and expended by the
institution under this subpart.
(J) Provisions that the applicant will provide for the optimal
application of technology and cooperative development in rural
areas, especially those areas adversely affected by adverse
agricultural economic conditions, through the establishment of
demonstration projects and subcenters for:
(1) Rural technology development where the technology can be
implemented by communities, community colleges, businesses,
cooperatives, and other institutions; or
(2) Cooperative development where such development can be
implemented by cooperatives to improve local economic conditions.
(xiv) If grant funds are to be used for the purpose of making
loans and/or grants to eligible individuals, small businesses, or
cooperatives (ultimate recipients) in rural areas for eligible
purposes under this subpart, the applicant shall develop a plan
which outlines the purposes and administration of the fund and
include a copy of a proposed agreement to be used between the
applicant and the ultimate recipient(s) which includes the
following:
(A) An assurance that the responsibilities of the grantee, as a
recipient of grant funds under this subpart, are passed on to the
ultimate recipient and the ultimate recipient understands its
responsibilities to comply with the requirements set forth in this
subpart, including parts 3015 and 3016 of this title.
(B) Provisions that the ultimate recipient will comply with
debarment and suspension requirements contained in part 3017 of this
title and will execute Form AD-1048, ``Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion--Lower
Tier Covered Transactions.''
(C) Provisions that the ultimate recipient will execute Form
FmHA 400-1, ``Equal Opportunity Agreement,'' and Form FmHA 400-4,
``Assurance Agreement.''
(D) Clear documentation that the ultimate recipient understands
its responsibilities to the applicant.
(E) Clear documentation that the applicant understands its
responsibilities in monitoring the ultimate recipient's activities
under the grant and the applicant's plan for such monitoring.
(F) Brief written narrative addressing all items in
Sec. 4284.540(a) of this subpart, regarding grant selection
criteria.
(3) [Reserved]
(4) Applicants whose preapplications are found to be ineligible
will be given notice by use of Form AD-622 and advised of their
appeal rights under subpart B of part 1900 of this title.
(5) If at any time prior to grant approval it is decided that
favorable action will not be taken on a preapplication or
application, the RDA will notify the applicant in writing of the
reasons why the request was not favorably considered. The
notification will advise the applicant of appeal rights under
subpart B of part 1900 of this title.
(6) Applicants eligible for funding within the available funds
will be provided forms and instructions for filing a complete
application. Applicants should be advised against incurring
obligations which cannot be fulfilled without RDA funds.
(b) Applications. Upon notification on Form AD-622 that the
applicant is eligible for funding, the following will be submitted
to the RDA by the applicant:
(1) SF 424.1.
(2) Proposed scope of work, detailing the proposed activities to
be accomplished and timeframes for completion of each activity.
(3) Proposed budget, including source and amount of applicant
contribution and any other funding sources for the proposed project.
(4) Other requested information needed by RDA to make a grant
award determination.
(c) Applicant response. If the applicant fails to submit the
application and related material by the date shown on Form AD-622
(normally 30 days from the date of Form AD-622), RDA may discontinue
consideration of the application. Appeal rights will be given in
accordance with subpart B of part 1900 of this title.
Secs. 4284.529-4284.539 [Reserved]
Sec. 4284.540 Grant Selection Criteria
Grants will be awarded under this subpart on a competitive
basis. The priorities described below will be used by the RDA to
rate preapplications and applications. Points will be distributed as
indicated in paragraph (a) of this section. Points will be
distributed according to ranking as compared with other
preapplications/ applications on hand. A copy of the score sheet
(Exhibit B) (available in any State RDA/FmHA Office) should be
placed in the casefile for future reference.
(a) The selection criteria are as follows:
(1) Economic conditions. Preference will be given to proposed
projects which will serve a rural area(s) that has few rural
industries and agribusinesses; high levels of unemployment or
underemployment; high rates of outmigration of people, businesses,
and industries; and low levels of per capita income. RDA will
consider data supporting these demographics from the United States
Bureau of the Census or other reliable data from recognized local,
regional, State or Federal sources or from surveys conducted by
reliable, impartial sources. Outmigration of businesses and
industries, for example, may be supported by county business
patterns data available from the Bureau of the Census. Data to
support all categories must be for the most current full calendar
year for which the data is available and the 3 calendar years prior
to that year. The competitive range for proposed projects is as
follows:
(i) Number of rural industries and agribusinesses in comparison
with the population of the area(s) to be served: 1 or less per 5,000
residents--25 points; 1 or less per 3,000 residents--15 points; or 1
or less per 1,000 residents--5 points.
(ii) Unemployment rate in the area(s) to be served: Exceeds the
State rate by 25 percent or more--15 points; or exceeds the State
rate by less than 25 percent but more than 5 percent--10 points.
(iii) Underemployment in the area(s) to be served exceeds the
State rate of underemployment by 25 percent or more--20 points;
exceeds the State rate by less than 25 percent--10 points; or is
equal to or less than State rate--0 points.
(iv) Outmigration of rural residents from the area(s) as
evidenced by a population loss in the last full calendar year of at
least 20 percent--20 points.
(v) Outmigration of business and industry and/or business and
industry closures in the area(s) of at least 20 percent in the last
3 years--20 points.
(vi) Average per capita income of the area(s) is less than the
State average by: 50 percent--25 points; or 25 percent--10 points.
(2) Project proposal. The project proposal will contribute the
most to the improvement of economic conditions of the rural area(s)
by:
(i) Creation of industries or agribusinesses in the area(s): 1
or more per 5,000 residents--20 points; 1 or more per 10,000
residents--10 points; or 1 or more per 20,000 residents--5 points.
(ii) Increasing employment by 10 percent or more--10 points.
(iii) Stemming the flow of outmigration of people, businesses,
or industries by 10 percent or more--10 points.
(iv) Increasing the tax base of the area(s) by 2 percent or
more--5 points.
(3) Applicant experience. The applicant demonstrates capability
to transfer for practical application in rural areas the technology
generated and demonstrates the ability to commercialize products,
processes, services, and enterprises in rural areas--15 points.
(b) Review of decision. Each application for assistance will be
carefully reviewed in accordance with the priorities established in
this section. A priority rating will be assigned to each
application. Applications selected for funding will be based on the
priority rating assigned each application and the total funds
available. All applications submitted for funding should contain
sufficient information to permit RDA to complete a thorough priority
rating. When a determination is made that favorable action will not
be taken on a preapplication or application, the applicant will be
notified in writing of the reasons why the request was not favorably
considered. The notification to the applicant will state that a
review of this decision by RDA may be requested by the applicant in
accordance with subpart B of part 1900 of this title.
Sec. 4284.541 Grant Approval, Fund Obligation, Grant Closing, and
Third-Party Financial Assistance
A copy of the executed Form FmHA 1940-1, ``Request for
Obligation of Funds,'' and the approved scope of work will be sent
to the applicant on the obligation date. The grant will be
considered closed on the obligation date. Exhibit A of this subpart,
available in any State RDA/FmHA office, shall become a permanent
part of Form FmHA 1940-1 when grant funds are involved, and the
following paragraphs will appear in the comment section of that form
as appropriate:
(a) ``The grantee understands the requirements for receipt of
funds under the Rural Technology Development Grant program. The
grantee assures and certifies that it is in compliance with all
applicable laws, regulations, Executive Orders, and other generally
applicable requirements, including those set forth in exhibit A of
subpart F of part 4284 of this chapter, available in any State RDA/
FmHA Office, 7 CFR parts 3015, 3016, 3017, and 3018 (including
revisions through ________ (date of grant approval)); and the Letter
of Conditions and the approved scope of work.''
(b) For grants involving the establishment of a revolving loan
program to benefit third parties, the following statement shall also
be added to the comment section of Form FmHA 1940-1: ``The grantee
furthermore agrees to use grant funds for the purposes outlined in
the Scope of Work approved by RDA.''
Sec. 4284.542-4284.555 [Reserved]
Sec. 4284.556 Docket Preparation and Letter of Conditions
(a) The following forms and documents will be part of the grant
docket:
(1) Form FmHA 400-1 for the applicant and recipients of the
technical assistance, loans under a revolving loan fund, and rural
learning projects if the recipients are other than individuals.
(2) Form FmHA 400-4 for the applicant and recipients of the
technical assistance or loans under a revolving loan fund.
(3) Scope of work and budget prepared by the applicant.
(4) Form FmHA 1940-1.
(5) Resolution of the Board, if appropriate, approving the grant
application.
(6) Evidence of authority for individual, in the applicant's
organization, to execute grant documents.
(7) Evidence of fidelity bond coverage.
(8) Form FmHA 1942-43, ``Project Summary--Community Facilities
(Other Than Utility-Type Projects).''
(9) Executed Forms AD-1047, ``Certification Regarding Debarment,
Suspension, and Other Responsibility Matters--Primary Covered
Transactions,'' and AD-1049, ``Certification Regarding Drug-Free
Workplace Requirements (Grants) Alternative I--For Grantees Other
Than Individuals.''
(10) Executed certification in accordance with part 3018,
Appendix A of this title, that no Federal appropriated funds have
been paid or will be paid for lobbying activities and Form LLL,
``Disclosure of Lobbying Activities.''
(11) Proposed agreement between applicant and ultimate recipient
as required in Sec. 4284.528(a)(2)(xiv) of this subpart, if
applicable.
(12) Class II Environmental Assessment (if applicable).
(13) Finding of No Significant Impact (if applicable).
(14) Form FmHA 400-8, ``Compliance Review,'' (Nondiscrimination
by Recipients of Financial Assistance through Farmers Home
Administration.)
(b) The RDA representative will prepare a Letter of Conditions
outlining the conditions under which the grant will be made. It will
include those matters necessary to assure that the proposed grant is
completed in accordance with the terms of the scope of work and
budget, that the grant funds are expended for authorized purposes,
and that the requirements prescribed in parts 3015, 3016, 3017, and
3018 of this title are complied with. Each Letter of Conditions will
contain the following paragraphs:
(1) ``This letter establishes conditions which must be
understood and agreed to by you before further consideration may be
given to the application.''
(2) ``This letter is not to be considered as grant approval nor
as a representation as to the availability of funds. The docket may
be completed on the basis of a grant not to exceed $________ and a
matching share by the applicant in the amount of $________.''
(3) ``Please complete and return the attached Form FmHA 1942-46,
`Letter of Intent to Meet Conditions,' if you desire further
consideration be given your application.''
(4) ``You must certify that the activities provided under the
grant will benefit a rural area.''
(5) ``You must certify that at least 25 percent of the total
funds for this project are provided as the grantee's share and meet
the matching fund requirements of 7 CFR parts 3015 and 3016.''
(6) ``You must certify that no Federal appropriated funds have
been paid or will be paid for lobbying activities in accordance with
7 CFR part 3018, Appendix A, and execute Form LLL.''
(7) ``You must execute Form AD-1047, `Certification Regarding
Debarment, Suspension, and Other Responsibility Matters--Primary
Covered Transactions,' to certify that your organization is not
debarred or suspended from Government assistance. You also must
obtain a certification on Form AD-1048, `Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion--Lower
Tier Covered Transactions,' from any person or entity you do
business with as a result of this Government assistance that they
are not debarred or suspended from Government assistance.''
(8) ``You must execute Form AD-1049, `Certification Regarding
Drug-Free Workplace Requirements (Grants) Alternative I--For
Grantees Other Than Individuals,' to certify that you will provide a
drug-free awareness program for employees.''
(9) ``You must obtain prior approval for any change to the scope
or objectives of the approved project. Failure to obtain prior
approval of changes to the scope of work or budget can result in
suspension/termination of grant funds.''
(10) Other items in the Letter of Conditions should include
those appropriate items relative to: maximum amount of grant;
contributions; required project audit: evidence of compliance with
all applicable Federal, State, and local requirements; closing
instructions, DOL certifications; compliance with any required
environmental mitigation measures; and other requirements.
Sec. 4284.557 Fund Disbursement
Grantees will be reimbursed as follows:
(a) An SF-270, ``Request for Advance or Reimbursement,'' will be
completed by the applicant and submitted to RDA not more frequently
than monthly.
(b) Upon receipt of a properly completed SF 270, the funds will
be requested through the field office terminal system. Ordinarily,
payment will be made within 30 days after receipt of a proper
request for reimbursement.
(c) Grantees are encouraged to use minority banks (a bank which
is owned by at least 50 percent minority group members) for the
deposit and disbursement of funds. A list of minority owned banks
can be obtained from the Office of Minority Business Enterprise,
Department of Commerce, Washington, DC 20230.
(d) The grantee's share in the cost of the project will be
disbursed in advance of grant funds or on a pro-rata distribution
basis with grant funds during the disbursement period. The grantee
will not be permitted to provide its contribution at the end of the
grant period.
Sec. 4284.558 Reporting
An SF-269, ``Financial Status Report,'' and a project
performance activity report will be required of all grantees on a
quarterly basis. A final project performance report will be required
with the last SF-269. The final report may serve as the last
quarterly report. The final report must include a final evaluation
of the project. Grantees shall constantly monitor performance to
ensure that time schedules are being met, projected work by time
periods is being accomplished, and other performance objectives are
being achieved. Grantees are to submit an original of each report to
RDA. The project performance reports shall include, but not be
limited to, the following:
(a) A comparison of actual accomplishments to the objectives
established for that period;
(b) Reasons why established objectives were not met;
(c) Problems, delays, or adverse conditions which will affect
attainment of overall project objectives, prevent meeting time
schedules or objectives, or preclude the attainment of particular
project work elements during established time periods. This
disclosure shall be accompanied by a statement of the action taken
or planned to resolve the situation; and
(d) Objectives and timetable established for the next reporting
period.
Secs. 4284.559-4284.570 [Reserved]
Sec. 4284.571 Audit Requirements
The grantee will provide an audit report in accordance with
subpart A of part 1942 of this title. The audit requirements only
apply to the year(s) in which grant funds are received. Audits must
be prepared in accordance with generally accepted government
auditing standards using the publication, ``Standards for Audit of
Governmental Organizations, Programs, Activities and Functions.''
Sec. 4284.572 Grant Servicing
Grants will be serviced in accordance with subpart E of part
1951 of this title.
Sec. 4284.573 Programmatic Changes
The grantee shall obtain prior approval for any change to the
scope or objectives of the approved project. Failure to obtain prior
approval of changes to the scope or budget can result in suspension/
termination of grant funds.
Sec. 4284.574 Subsequent Grants
Subsequent grants will be processed in accordance with the
requirements set forth in this subpart.
Sec. 4284.575 Grant Suspension, Termination, and Cancellation
Grants may be cancelled by RDA by use of Form FmHA 1940-10
``Cancellation of U.S. Treasury Check and/or Obligation.'' The RDA
will notify the applicant, by letter, that the grant has been
cancelled. A copy of the letter will be sent to the Regional
Attorney, OGC, if the Regional Attorney has been involved. The
applicant will be provided appeal rights, as appropriate, in
accordance with subpart B of part 1900 of this title. Grants may be
suspended or terminated for cause or convenience, in accordance with
parts 3015 and 3016 of this title.
Secs. 4284.576-4284.586 [Reserved]
Sec. 4284.587 Exception Authority
The Administrator may, in individual cases, make an exception to
any requirement or provision of this subpart which is not
inconsistent with the authorizing statute, an applicable law or a
decision of the Comptroller General, if the Administrator determines
that application of the requirement or provision would adversely
affect the Government's interest and shows how the adverse impact
will be eliminated or minimized if the exception is made.
Sec. 4284.588 Forms and Exhibits
Exhibits A, B, and C and forms referenced (all available in any
State RDA/FmHA office) are for use in administering grants made
under this subpart.
Secs. 4284.589-4284.599 [Reserved]
Sec. 4284.600 OMB Control Number
RDA Instruction 4284-F
Exhibit A
Agreement of Administrative Requirements for Rural Technology
Development Grants
This exhibit contains information regarding the responsibilities of
the grantee for receipt of grant funds under the Rural Technology
Development Grant (RTDG) program. These requirements do not supersede
the requirements for receipt of Federal funds as stated in 7 CFR part
3015 and 3016; however, specific areas related to the program are cited
below.
In consideration for the RTDG grant by RDA, grantee agrees to:
1. Cause the RTDG program to be completed within the total sums
available to it, including grant funds, in accordance with the scope of
work and any necessary modifications thereof prepared by grantee and
approved by grantor.
2. Permit periodic inspection of the program operations by a
representative of grantor.
3. Make the program available to all persons in grantee's service
area without regard to race, color, national origin, religion, sex,
marital status, age, physical or mental handicap.
4. Not use grant funds to replace any financial support previously
provided or assured from any other source. The grantee agrees that the
general level of expenditure by the grantee for the benefit of program
area and/or program covered by this agreement shall be maintained and
not reduced as a result of the Federal share funds received under this
grant.
5. Provide financial management systems which will include:
(a) Accurate, current, and complete disclosure of the financial
result of each grant.
(b) Records which identify adequately the source and application of
funds for grant-supporting activities. Those records shall contain
information pertaining to grant awards and authorizations, obligations,
unobligated balances, assets, liabilities, outlays, and income.
(c) Effective control over and accountability for all funds.
Grantee shall adequately safeguard all such assets and shall ensure
that they are used solely for authorized purposes.
(d) Accounting records supported by source documentation.
6. Retain financial records, supporting documents, statistical
records, and all other records pertinent to the grant for a period of
at least 3 years after grant closing except that the records shall be
retained beyond the 3-year period if audit findings have not been
resolved. Microfilm copies may be substituted in lieu of original
records. The grantor and the Comptroller General of the United States,
or any of their duly authorized representatives, shall have access to
any books, documents, papers, and records of the grantee which are
pertinent to the specific grant program for the purpose of making
audits, examinations, excerpts, and transcripts.
7. Provide an audit report prepared in accordance with generally
accepted Government auditing standards using the publication,
``Standards for Audit of Governmental Organizations, Programs,
Activities and Functions.''
8. Provide grantor with such periodic reports as it may require and
permit periodic inspection of its operations by a designated
representative of the grantor.
9. Execute Form FmHA 400-1, ``Equal Opportunity Agreement,'' Form
FmHA 400-4, ``Assurance Agreement,'' and any other agreements required
by grantor to implement the civil rights requirements. If any such form
has been executed by grantee as a result of a grant being made to
grantee by grantor contemporaneously with the making of this grant,
another form of the same type need not be executed in connection with
this grant.
10. That upon any default under its representations or agreements
set forth in this instrument, grantee, at the option and the demand of
grantor, will, to the extent legally permissible, repay to grantor
forthwith the original principal amount of the grant stated herein
above, with interest equal to the rate of interest paid on U.S. 26-week
Treasury Bills adjusted quarterly from the date of the default. The
provisions of this exhibit may be enforced by grantor at its option and
without regard to prior waivers by it of previous defaults of grantee,
by judicial proceedings to require specific performance of the terms of
this exhibit, or by such other proceedings in the law or equity in
either Federal or State courts as may be deemed necessary by grantor to
assure compliance with the provisions of this exhibit and the laws and
regulations under which this grant is made.
11. That no member of Congress shall be admitted to any share or
part of this grant or any benefit that may arise therefrom; but this
provision shall not be construed to bar, as a contractor under the
grant, a publicly held corporation whose ownership might include a
member of Congress.
12. That all non-confidential information resulting from its
activities shall be made available to the general public on an equal
basis.
13. That the purpose and scope of work for which this grant is made
shall not duplicate programs for which monies have been received, are
committed, or are applied to from other sources (public or private).
14. That grantee shall relinquish any and all copyrights and/or
privileges to the materials developed under this grant as published in
whole or in part. The material shall contain a notice and be identified
by language to the following effect: ``The material is the result of
tax-supported research and as such is not copyrightable. It may be
freely reprinted with the customary crediting of the source.''
15. That the grantee shall abide by the policies promulgated in the
USDA Uniform Assistance Regulations, 7 CFR parts 3015 and 3016, which
provides standards for use by grantee in establishing procedures for
the procurement of supplies, equipment, and other services with Federal
grant funds.
16. Obtain prior approval from grantor for use of grant funds for
uses or amounts not consistent with the approved scope of work and
budget.
17. That the grantee, except for States, will remit interest earned
on grant funds deposited in an interest bearing account in accordance
with the USDA Uniform Assistance Regulation 7 CFR parts 3015 and 3016.
18. Grantee will comply with property management standards
established by 7 CFR parts 3015 and 3016 for personal property.
``Personal property'' means property of any kind except real property.
It may be tangible--having physical existence--or intangible--having no
physical existence; such as patents, inventions, and copyrights.
``Nonexpendable personal property'' means tangible personal property
having a useful life of more than 1 year and an acquisition cost of
$300 or more per unit. A grantee may use its own definition of
nonexpendable personal property provided that such definition would at
least include all tangible personal property as defined above.
``Expendable personal property'' refers to all tangible personal
property other than nonexpendable property. When nonexpendable property
is acquired by a grantee with project funds, title shall not be taken
by the Federal Government but shall be vested in the grantee subject to
the following conditions.
(a) Right to transfer title. For items of real or nonexpendable
personal property having a unit acquisition cost of $1,000 or more, RDA
may reserve the right to transfer the title to the Federal Government
or to a third party named by the Federal Government when such third
party is otherwise eligible under existing statutes. Such reservation
shall be subject to the following standards:
(i) The property shall be appropriately identified in the grant or
otherwise made known to the grantee in writing.
(ii) RDA shall issue disposition instructions within 120 calendar
days after the end of the Federal support of the project for which it
was acquired. If RDA fails to issue disposition instructions within the
120 calendar day period, the grantee shall apply the standards of
paragraph 18. (b) of this exhibit.
(iii) When RDA exercises its right to take title, the personal
property shall be subject to the provisions for federally owned
nonexpendable property discussed in paragraphs 18. (b) and (c) of this
exhibit.
(iv) When title is transferred either to the Federal Government or
to a third party and the grantee is instructed to ship the property
elsewhere, the grantee shall be reimbursed by the benefiting Federal
agency with an amount which is computed by applying the percentage of
the grantee participation in the cost of the original grant project or
program to the current fair market value of the property, plus any
reasonable shipping or interim storage costs incurred.
(b) Use of other nonexpendable personal property for which the
grantee has title.
(i) The grantee shall use the property in the project or program
for which it was acquired as long as needed, whether or not the project
or program continues to be supported by Federal funds. When it is no
longer needed for the original project or program, the grantee shall
use the property in connection with its other federally sponsored
activities, in the following order of priority:
(1) Activities sponsored by RDA.
(2) Activities sponsored by other Federal agencies.
(ii) Shared use. During the time that nonexpendable personal
property is held for use on the project or program for which it was
acquired, the grantee shall make it available for use on other projects
or programs if such other use will not interfere with the work on the
project or program for which the property was originally acquired.
First preference for such other use shall be given to projects or
programs sponsored by RDA; second preference shall be given to projects
or programs sponsored by other Federal agencies. If the property is
owned by the Federal Government, use for other activities not sponsored
by the Federal Government shall be permissible if authorized by RDA.
User charges should be considered, if appropriate.
(c) Disposition of nonexpendable personal property. When the
grantee no longer needs the property as provided in paragraph 18. (b)
of this exhibit, the property may be used for other activities in
accordance with the following standards:
(i) Personal property with a unit acquisition cost of less than
$1,000. The grantee may use the property for other activities without
reimbursement to the Federal Government or sell the property and retain
the proceeds.
(ii) Nonexpendable personal property with a unit acquisition cost
of $1,000 or more. The grantee may retain the property for other use
provided that compensation is made to RDA or its successor. The amounts
of compensation shall be computed by applying the percentage of Federal
participation in the cost of the original project or program to current
fair market value of the property. If the grantee has no need for the
property and the property has further use value, the grantee shall
request disposition instructions from the original grantor agency.
(iii) RDA shall determine whether the property can be used to meet
the Agency's requirements. If no need exists within RDA, the General
Services Administration Federal Property Management Regulations will be
used by RDA to determine whether a need for the property exists in
other Federal agencies. RDA shall issue instructions to the grantee no
later than 120 days after the grantee request and the following
procedures shall govern:
(1) If so instructed or if disposition instructions are not issued
within 120 calendar days after the grantee's request, the grantee shall
sell the property and reimburse RDA an amount computed by applying the
percentage of the grantor participation in the grant program to the
sales proceeds. However, the grantee shall be permitted to deduct and
retain from the Federal share $100 or 10 percent of the proceeds,
whichever is greater, for the grantee's selling and handling expenses.
(2) If the grantee is instructed to dispose of the property other
than as described in paragraphs 18. (b) and (c) of this exhibit, the
grantee shall be reimbursed by RDA for such costs incurred in its
disposition.
(3) Property management standards for nonexpendable personal
property. The grantee's property management standards for nonexpendable
personal property shall include the following procedural requirements:
(a) Property records shall be maintained accurately and shall
include:
(i) A description of the property.
(ii) Manufacturer's serial number, model number, Federal stock
number, National stock number, or other identification number.
(iii) Sources of the property including grant or other agreement
number.
(iv) Whether title vests in the grantee or the Federal Government.
(v) Acquisition date (or date received, if the property was
furnished by the Federal Government) and costs.
(vi) Percentage (at the end of the budget year) of Federal
participation in the cost of the project or program for which the
property was acquired. (Not applicable to property furnished by the
Federal Government).
(vii) Location, use, and condition of the property and the date the
information was reported.
(viii) Unit acquisition cost.
(ix) Ultimate disposition data, including date of disposal and
sales price or the method used to determine current fair market value
where a grantee compensates the Federal agency for its share.
(b) Property owned by the Federal Government must be marked to
indicate Federal ownership.
(c) A physical inventory of property shall be taken and the results
reconciled with the property records at least once every 2 years. Any
differences between quantities determined by the physical inspection
and those shown in the accounting records shall be investigated to
determine the causes of the difference. The grantee shall, in
connection with the inventory, verify the existence, current
utilization, and continued need for the property.
(d) A control system shall be in effect to ensure adequate
safeguards to prevent loss, damage, or theft of the property. Any loss,
damage, or the theft of nonexpendable property shall be investigated
and fully documented; if the property was owned by the Federal
Government, the grantee shall promptly notify RDA.
(e) Adequate maintenance procedures shall be implemented to keep
the property in good condition.
(f) Where the grantee is authorized or required to sell the
property, proper sales procedures shall be established which would
provide for competition to the extent practicable and result in the
highest possible return.
(g) Expendable personal property shall vest in the grantee upon
acquisition. If there is a residual inventory of such property
exceeding $1,000 in total aggregate fair market value upon termination
or completion of the grant and if the property is not needed for any
other federally sponsored project or program, the grantee shall retain
the property for use on nonfederally sponsored activities or sell it,
but must in either case compensate the Federal Government for its
share. The amount of compensation shall be computed in the same manner
as nonexpendable personal property.
This exhibit covers the following described personal property and
any additional property acquired wholly or in part with grant funds
(use continuation sheets as necessary):
19. To the following termination provisions:
(a) Termination for cause: The grantor agency may terminate any
grant in whole, or in part, at any time before the date of completion,
whenever it is determined that the grantee has failed to comply with
the conditions of the grant. The grantor agency shall promptly notify
the grantee in writing of the determination and the reasons for the
termination, together with the effective date.
(b) Termination for convenience: The grantor agency or grantee may
terminate grants in whole, or in part, when both parties agree that the
continuation of the program would not produce beneficial results
commensurate with the further expenditure of funds. The two parties
shall agree upon the termination conditions, including the effective
date and, in the case of partial terminations, the portion to be
terminated. The grantee shall not incur new obligations for the
terminated portion after the effective date, and shall cancel as many
outstanding obligations as possible. The grantor agency shall allow
full credit to the grantee for the Federal share of the noncancelable
obligations properly incurred by the grantee prior to termination.
RDA agrees that it will:
1. Assist grantee, within available appropriations, with such
technical assistance as grantor deems appropriate in planning the
program and coordinating the plan with local official comprehensive
plans and with any State or area plans for the area in which the
program is located.
2. At its sole discretion, RDA may at any time give any consent,
deferment, subordination, release, satisfaction, or termination of any
or all of grantee's grant obligations, with or without valuable
consideration, upon such terms and conditions as RDA may determine to
be:
(a) Advisable to further the purposes of the grant or to protect
the Government's financial interest therein; and
(b) Consistent with both the statutory purposes of the grant and
the limitations of the statutory authority under which it is made.
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Name of Grantee
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Title
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Date
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RDA Approval Official
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Title
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Date
7 CFR 4284-F Rural Technology Development Grants, June 1994
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Estimated Estimated
Estimated Reports total number of Estimated
Section of regulations Title Form No. number of filed annual hours per total hours
respondents annually responses respondent
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Reporting Requirements--No Forms
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4284.527...................... Intergovernmental Written................ 100 On occasion 100 2.00 200
Consultations
4284.528 (a)(2)(i)............ Evidence of Legal Existence Written................ 100 On occasion 100 1.00 100
and Authority.
4284.528 (a)(2)(ii)........... Financial Information......... Written................ 100 On occasion 100 0.50 50
4284.528 (a)(2)(iii).......... Source and Certification of Written................ 100 On occasion 100 0.50 50
Other Funds.
4284.528 (a)(2)(iv)........... Budget........................ Written................ 100 On occasion 100 2.00 200
4284.528 (a)(2)(v)............ Area to be Served............. Written................ 100 On occasion 100 1.00 100
4284.528 (a)(2)(vi)........... Demographic Information....... Written................ 100 On occasion 100 2.00 200
4284.528 (a)(2)(vii).......... Business to be Assisted....... Written................ 100 On occasion 100 2.00 200
4284.528 (a)(2)(viii)......... Applicant Experience.......... Written................ 100 On occasion 100 1.00 100
4284.528 (a)(2)(ix)........... Duration of Project........... Written................ 100 On occasion 100 0.50 50
4284.528 (a)(2)(xi)........... Source of Work to be Performed Written................ 100 On occasion 100 0.50 50
4284.528 (a)(2)(xii).......... Evaluation Method............. Written................ 100 On occasion 100 0.50 50
4284.528 (a)(2)(xiii)......... Plan for Rural Technology Written................ 100 On occasion 100 8.00 800
Development Grants.
4284.528 (a)(2)(xiv).......... Proposed Agreement Between Written................ 100 On occasion 100 4.00 400
Applicants and Ultimate
Recipients.
Plan to Provide Financial Written................ 30 On occasion 30 5.00 150
Assistance to Third Parties.
4284.556 (b) Exhibit A........ Scope of Work................. Written................ 50 On occasion 50 8.00 400
4284.528...................... Request for Appeal............ Written................ 5 On occasion 5 1.00 5
4284.556...................... Evidence of Authority to Written................ 50 On occasion 50 0.50 25
Execute Document.
4284.556...................... Evidence of Fidelity Bond Policy................. 100 On occasion 100 1.00 100
Coverage.
4284.558...................... Project Performance Report.... Written................ 50 4.......... 200 8.00 1,600
4284.571...................... Audit Report.................. Written................ 50 On occasion 50 6.00 300
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Reporting Requirements--Forms Approved Under Other OMB Numbers
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4284.527...................... Request for Environmental 1940-20 (0575-0094).... ........... ........... ........... ........... ...........
Information.
4284.527...................... Certificate of Non Relocation 449-22 (0575-0029)..... ........... ........... ........... ........... ...........
and Market Capacity
Information Report.
4284.527...................... Certification Regarding Drug- AD-1049 (9000-0101).... 50 On occasion 50 0.50 25
Free Workplace Requirements
(Grants) Alternative I--for
Grantees Grantees other than
Individuals.
4284.528 (a).................. Preapplication for Federal SF-424.1 (0348-0043)... 100 On occasion 100 1.00 100
Assistance (for non-
construction).
4284.528 (b).................. Application for Federal SF-424.1 (0348-0043)... 50 On occasion 50 2.00 100
Assistance (for non-
construction).
4284.556...................... Compliance Review............. FmHA 400-8 (0575-0018). ........... ........... ........... ........... ...........
Assurance Agreement........... FmHA 400-4 (0575-0018). ........... ........... ........... ........... ...........
Letter of Intent to Meet (FmHA 442-6) (0575- ........... ........... ........... ........... ...........
Conditions. 0015).
Equal Opportunity Agreement... (FmHA 400-1) (0575- ........... ........... ........... ........... ...........
0018).
4284.558...................... Financial Status Report....... SF-269 (0348-0039)..... 50 4.......... 200 1.00 200
4284.557...................... Request for Advance or SF-270 (0348-0006)..... 50 12......... 600 0.50 300
Reimbursement.
Exhibit A..................... Agreement of Administrative Written................ 50 On occasion 50 1.00 50
Requirements for Rural
Technology Development Grants.
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Record Keeping Requirements
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Exhibit A Sec. 5, 6........... Financial Records............. Written................ 50 ........... ........... 1.00 50
Exhibit A Sec. 18............. Property Records.............. Written................ 50 ........... ........... 3.00 150
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Total reporting......... .............................. ....................... ........... ........... 2,935 ........... 5,905
Recordkeeping................. .............................. ....................... ........... ........... ........... ........... 200
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Docket Total............ .............................. ....................... ........... ........... ........... ........... 6,105
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Dated: June 24, 1994.
Wilbur T. Peer,
Acting Administrator, Rural Development Administration.
[FR Doc. 94-16422 Filed 7-6-94; 8:45 am]
BILLING CODE 3410-32-U
