![](media/image1.png){width="8.5in" height="3.6486111111111112in"}

**Fiscal Year 2008**

**[REAL ID DEMONSTRATION GRANT PROGRAM]{.smallcaps}**

***[Program Guidance and Application Kit]{.smallcaps}***

**December 2007**

![](media/image2.png){width="0.875in" height="0.875in"}

**[Federal Emergency Management Agency-National Preparedness
Directorate]{.smallcaps}**

**[Contents]{.smallcaps}**

[I. INTRODUCTION 1](#__RefHeading___Toc170720827)

[II. Available Funding and Eligible Applicants
5](#__RefHeading___Toc170720828)

[III. Application Evaluation Process 7](#__RefHeading___Toc170720829)

[IV. Program Requirements 10](#__RefHeading___Toc170720830)

[Appendix A Alignment of REAL ID with the National Preparedness
Architecture A-1](#__RefHeading___Toc170720831)

[Appendix B REAL ID Allowable Expenses
B-1](#__RefHeading___Toc170720832)

[Appendix C *Grants.Gov* Quick-Start Instructions
C-1](#__RefHeading___Toc170720833)

[Appendix D REAL ID Demonstration Grant Program Application Requirements
D-1](#__RefHeading___Toc170720834)

[Appendix E Sample Budget Detail Worksheet
E-1](#__RefHeading___Toc170720835)

[Appendix F Award and Reporting Requirements
F-1](#__RefHeading___Toc170720836)

[]{#__RefHeading___Toc170720827 .anchor}**I. INTRODUCTION**

On September 11, 2001, 18 of the 19 terrorists involved in the attacks
on the United States had been issued U. S. identification documents,
including drivers' licenses. The REAL ID Demonstration Grant Program
addresses a key recommendation of the 9/11 Commission Report to enhance
the security and protections that are needed to issue "one person one
REAL ID." The REAL ID program will help states improve state driver's
license and ID card issuance capabilities and position states to work
collectively to develop more secure systems to verify a person's
identity.

The Fiscal Year (FY) 2008 REAL ID Demonstration Grant Program is one of
three REAL ID grant initiatives offered by the Department of Homeland
Security (DHS). In total, the Department will fund \$38.3 million
dollars to enhance State driver's license and ID card issuance
capabilities. These funding initiatives include: 1. this demonstration
program, the Fiscal Year 2008 REAL ID Demonstration Grant Program, 2. a
REAL ID Pilot Project already underway with the Commonwealth of Kentucky
to test a birth records verification software tool, and 3. the Fiscal
Year (FY) 2008 Vital Events Verifications State Project Grant, that will
provide all States with web access to the software Kentucky is testing.

The REAL ID Demonstration Grant Program Guidance is designed to
encourage all States and territories to apply for REAL ID Demonstration
Grant Program funding. States competing for REAL ID funding are invited
to submit proposals that will benefit many or all States seeking to
comply with the provisions of the REAL ID Act. In particular, DHS
anticipates making grant awards to States that propose to modify or
enhance a consolidated systems and communications architecture that all
States can use to verify the identity, date of birth, social security
number, lawful status, and licensing status of applicants for driver's
licenses or identification cards issued in compliance with the REAL ID
Act. DHS is looking for solutions that will:

-   Have the greatest impact upon reducing the issuance and use of
    fraudulent driver's licenses and identification cards.

-   Expedite deployment of a federated querying system or "hub" that
    will provide a common platform for fulfilling the data and document
    verification requirements of the REAL ID Act.

-   Expedite states' ability to connect with and use this common hub.

-   Reduce the costs of REAL ID implementation for individuals, States,
    and the Federal Government.

-   Expedite state progress toward compliance with REAL ID
    implementation.

The Department anticipates making grant awards with States that embrace
a State-centric approach and/or proposal to deploy a consolidated data
and document verification capability that can be used by all States.
This approach encourages States to share resources and expertise to
design and develop a verification system architecture using a common,
networked hub. Once in place, the hub will allow States to seamlessly
verify the identity, date of birth, lawful status, social security
number, and State-issued licenses of individuals applying for a REAL ID
driver's license or ID card. The Act requires that States use the
Systematic Alien Verification for Entitlements (SAVE) system to verify
the lawful status of individuals other than U.S. citizens and confirm
with the Social Security Administration the social security number
presented by applicants. In addition, States need to be able to
determine if an applicant has a license or identification card in any
other State. If the applicant has another valid license, the State must
verify that the license is being or will be terminated before issuing a
new license. Standardizing the way in which States access this
information utilizing a seamless verification systems process and
built-in security enhancements to protect personal identity data against
fraud and illegal access are key objectives of this grant program.

A. **REAL ID Act of 2005**

Title II of the REAL ID Act of 2005[^1] (the Act) establishes certain
minimum standards for State-issued drivers licenses and ID cards, and
the Act prohibits Federal agencies from accepting State-issued driver\'s
licenses or ID cards for official purposes. To meet the requirements of
the Act, States must, among other things, require evidence of lawful
immigration status before issuing a driver's license or ID card to a
person, and verify that the applicant is lawfully present in the United
States. The Act also requires that participating States must issue
temporary driver\'s licenses or ID cards to persons temporarily present
in the United States that are valid only for their period of authorized
stay, or for one year where the period of stay is undefined.

Driver\'s licenses and identification cards for non-drivers (ID cards)
are issued by the States, not by the Federal government. Subject to
appropriate Federal law, States have traditionally determined what data
elements appear on these licenses and what documents must be provided in
order to obtain them. State Departments of Motor Vehicles (DMV) maintain
their own databases of licensed drivers and ID card holders.

**B. REAL ID Act Requirements**

After May 11, 2008, "a Federal agency may not accept, for any official
purpose, a driver\'s license or identification card issued by a State to
any person unless the State is meeting the requirements" specified in
the REAL ID Act. The Act permits States to issue non-compliant licenses
that are not acceptable for official purposes so long as these
non-compliant licenses have a unique design or color and contain a clear
statement that they cannot be accepted for official purposes. The REAL
ID Act requirements include, but are not limited to, the following:

**[Information Required Before Issuing a REAL ID Driver's License or ID
Card]{.underline}**

In order to issue licenses which comply with the REAL ID Act, States
must require, at a minimum, presentation of the following applicant
information before issuing a driver's license or ID card:

-   A photo identity document, or a non-photo ID if such document
    includes both full legal name and birth date

-   Documentation showing the applicant's name and date of birth

-   Social Security Number

-   Lawful status

-   Principal residence

The only foreign document that may be accepted as evidence for the above
items is an official passport. Finally, a State must refuse to issue a
REAL ID driver's license or ID card to a person holding a driver's
license issued by another State without confirmation that the person is
terminating or has terminated the driver license.

Further, pursuant to section 202(c)(3)(A), a State must verify, with the
issuing agency, the issuance, validity, and completeness of each of the
documents presented above.

**[Data Required on the Driver's License or ID Card]{.underline}**

In order to issue licenses in compliance with the REAL ID Act, a State
must include, at a minimum, the following information and features on
each driver's license and ID card:

-   The person\'s full legal name

-   The person\'s date of birth

-   The person\'s gender

-   The person\'s driver\'s license or ID card number

-   A digital photograph of the person

-   The person\'s address of principal residence

-   The person\'s signature

-   Physical security features designed to prevent tampering,
    counterfeiting, or duplication of the document for fraudulent
    purposes

-   A common machine-readable technology, with defined minimum data
    elements.

**[Electronic Access to Motor Vehicle Databases]{.underline}**

The Act also requires States to maintain a motor vehicle database and
provide access to all other States to information contained in that
database. This database must include, at a minimum, all the data printed
on the State drivers\' licenses and ID cards, plus drivers\' histories
(including motor vehicle violations, suspensions, and points on
licenses).

**C. Program Guidance Overview**

As authorized under the FY 2006 Department of Homeland Security
Appropriations Bill (Public Law 109-90) and the REAL ID Act of 2005
(Public Law 109-13), States[^2] are invited to apply for funds under
this solicitation, which will provide the remaining balance of REAL ID
funding, or not less than \$31,300,000 million dollars for grants to
states. To avoid confusion, wherever the term "State" appears, the
provisions in the section of the guidance describing a "State" applies
equally to all States. DHS will competitively award grants to State
motor vehicle licensing authorities to develop innovative solutions with
broad applicability for REAL ID implementation. These solutions should
incorporate verification systems and business processes shared by all
States to significantly reduce the impact of REAL ID implementation on
individuals who apply for REAL ID drivers' licenses or identification
cards, and State issuing authorities: e.g., motor vehicle agencies that
are responsible for REAL ID. REAL ID award recipients will be able to
use grant dollars to fulfill the statutory minimum issuance standards of
the REAL ID Act in one of three ways, to: 1. Develop REAL ID
implementation policies, procedures, and verification protocols, with a
uniform set of standards that States can follow to verify applicant data
under the provisions of the REAL ID Act; 2. Design and develop a
"pointer system" or index to expedite State-to-State data checks for
multiple licenses; and 3. Design and develop a federated querying system
or hub that all States can access and use. (Please see **Part II:
Available Funding and Eligible Applicants** identifying the controlling
State authority that can apply for FY 2008 REAL ID Demonstration Grant
Program funding.) Grant proposals will be reviewed and assessed for
possible grant funding based upon the strength of the proposal submitted
and the applicant's potential for impacting the successful
implementation of the REAL ID Act by all States. The Department
encourages grant applications from States with a multi-State approach to
REAL ID verification systems implementation design and development.
States submitting applications for FY 2008 REAL ID Demonstration Grant
Program funding should demonstrate resiliency in performance and
security with the proposed verification system enhancements described in
the grant application, and uniformity in the development of verification
system policies, procedures and protocols that benefit all States. A
peer review panel will score, rate, and rank each application and submit
its recommendations for grant funding to the Federal Emergency
Management Agency's National Preparedness Directorate (FEMA/NPD). A
final selection for REAL ID grant awards will be made by FEMA/NPD in
consultation with the Department of Homeland Security's REAL ID Program
Office. Prospective applicants should submit their grant application
according to the instructions in this solicitation. FEMA/NPD will
provide States with official notification of the grant award after the
peer panel review process and final selections for grant funding are
complete. Upon approval of the program narrative and associated budget
worksheets, a REAL ID Grant Award will be issued by the FEMA/NPD.

**D. Program Coordination Guidance**

As part of the program guidance, each applicant must provide a copy of
its proposal to both the State Administrative Agency (SAA) and State
Homeland Security Advisor (HSA) in their States. REAL ID activities
should be closely coordinated with the HSA and SAA to maximize the DHS
Homeland Security Grant Program (HSGP) strategic planning efforts and
integration with State and territory homeland security strategies. To
obtain SAA or HSA contact information in your State please contact the
FEMA/Grant Programs Directorate (GPD) Centralized Scheduling and
Information Desk (CSID) at <askcsid@dhs.gov>, or by calling 1-800 368
6498.

[]{#__RefHeading___Toc170720828 .anchor}**II. Eligible Applicants and
Available Funding**

This section summarizes the total amount of funding available under the
FY08 REAL ID Demonstration Grant Program, the basic distribution method
used to administer the REAL ID grants and the State agencies that are
eligible for FY08 funding.

**A. Eligible Applicants**

State Motor Vehicle/Drivers License Issuing Authorities, also known as
the State Motor Vehicle Administration (MVA) or the State Department of
Motor Vehicles (DMV) are the only State agencies that can apply for REAL
ID Demonstration Grant Program funding. A consortium of States may work
together to submit one grant application. The grant applicant will need
to identify an individual in the MVA or DMV with overall programmatic
and fiscal oversight of FY 2008 REAL ID Grant Program funding awarded to
the State.

**B. Available DHS Funding**

The Federal Emergency Management Agency's Grant Programs Directorate
(FEMA/GPD), a component of DHS is generally responsible for managing DHS
State and local grant programs. As a result, FEMA/GPD is offering not
less than \$31,300,000 million dollars for competitive awards to States
under the FY 2008 Demonstration Grant Program. States may decide to join
other States by pooling grant funds or forming partnerships with groups
of States to submit a single multi-state application. By partnering with
other States, multi-state applicants will be able to maximize
verification systems technology enhancements and acquisitions needed for
REAL ID, or work together to integrate commonly used personal
identification verification systems such as the Systematic Alien
Verification for Entitlements (SAVE) verification system owned by the
DHS Citizenship and Immigration Services (CIS), or the Social Security
Online Verification (SSOLV) tool, a Social Security Administration
web-based verification system.

The number of States included in a multi-state compact or partnership is
dependent upon groupings of participating states, their organizational
structure with defined roles and responsibilities, and the details and
completeness of the information presented in the proposal's work plan.
Final determinations of award amounts for multi-state grants may vary
depending on the number of multi-state applications that qualify for
funding. States are encouraged to submit grant proposals with broad
spectrum verification systems infrastructure solutions.

**C. Other Federal Funding Sources**

In addition to the REAL ID funding provided by FEMA/NPD, the Department
of Transportation (DOT) awards grant funding to State Motor Vehicle
Agencies (MVA) to enhance the Commercial Drivers' License Information
System (CDLIS), a verification tool State MVAs use to verify the
licensing status of individuals holding a commercial drivers' license.
States gain access to CDLIS through a network jointly designed and
developed in coordination with the American Association of Motor Vehicle
Administrators (AAMVA). The AAMVA network (called AAMVAnet) was
originally designed and funded by States using DOT grant dollars. DHS
recognizes the States' roles and involvement with AAMVA and DOT in
developing the CDLIS tool and in designing the AAMVAnet network. DHS is
very interested in developing a pointer system or index to support
State-to-State data checks similar to the CDLIS system.

In order to maximize FEMA/NPD HSGP funding with REAL ID grant dollars,
State Administrative Agencies (SAA) should consult with State MVA's to
be aware of these funding streams and the potential impact MVA funding
might have on HSGP REAL ID planning requirements in the States.
Enhancing and improving existing verification systems to comply with
REAL ID drivers' licensing issuance procedures is one of many complex,
integrated and multi-faceted State homeland security initiatives
underway across the country at every unit of State and local government.
As a result, some States may decide to utilize HSGP grant monies for
REAL ID implementation.

**D. Selection of Eligible Applicants**

Grant awards for the FY 2008 REAL ID Demonstration Grant Program will be
competitively awarded based upon stringent review criteria. Grant
proposals will be reviewed utilizing a standardized scoring process and
other evaluative criteria to rank and rate applications.

[]{#__RefHeading___Toc170720829 .anchor}**III. Application Evaluation
Process**

Multi-state applications for the FY 2008 REAL ID Demonstration Grant
Program will be reviewed by a peer review panel. The panel will utilize
a standardized scoring process and other evaluative criteria to rank and
rate State grant applications for REAL ID grant funding. Successful
applicants must receive at least 70 points in order to be considered for
grant funding. Grant applications representing a consortium of States
working in partnership to design and implement a REAL ID verification
system hub will be favorably reviewed. DHS reserves the right to award
grant funding to States that advance a State-centric approach to design
and implement a REAL ID verification system functionality that benefits
all States.

**A. Application Review Panel**

Each application will be evaluated and assigned a numeric score ranking
it against all other grant applications. During this process, a DHS
panel will conduct an objective review and assessment of each
application to determine if the program narrative/plan accurately
portrays the feasibility of the grant proposal and the likelihood that
the proposal will have broad impact on successful REAL ID implementation
by many or all States. The review panel will provide input during the
scoring process attesting to the completeness, accuracy, feasibility,
technical sufficiency, and the potential for REAL ID compliance. Panel
recommendations to fund REAL ID grants will be made collectively based
upon panel member discussions and findings, scores awarded to individual
grant proposals, panel member assessments of the program
narratives/plans, and professional intuition and insight of individual
panel members concerning the strengths and merits of the grant proposal.

**B. Scoring Criteria**

Applications for the FY 2008 REAL ID Demonstration Grant Program will be
rated and ranked according to the criteria listed below. The criteria
will help to equalize the process against which all applications will be
judged and will be used to identify the strongest candidates for
multi-state funding. The intent of this demonstration program is to
utilize limited grant dollars so as to achieve maximum benefit for all
States. States that submit complete grant application packages will be
considered for funding over other states that fail to do so. In
particular, multi-state applicants with significant REAL ID capabilities
that have developed a scalable REAL ID model other states can use or
replicate will be strong candidates for grant funding. Applications must
receive a minimum score of 70 out of a total of 100 possible points. The
grant applications will be rated and ranked using the following scoring
criteria:

**[Scoring Category]{.underline} [Points Awarded]{.underline}**

> **I. Did the State provide a description for a REAL ID implementation
> structure?**

-   Will the State participate in a multi-state REAL ID compact or
    partnership? If so, did the State identify the States that comprise
    the compact or partnership?

**(250 words or less)** **5** pts

> **II. What is the State's current driver's license issuance process
> and how will it change through this program?**

-   What applicant verification systems -- for example, SAVE, SSOLV, or
    EVVE -- does the State currently use?

-   How would these processes change or improve with a multi-state
    approach?

-   Has the State described the cost savings envisioned by the State for
    REAL ID implementation if the State's proposal receives grant
    funding that other States may benefit from?

-   How will the State's proposed procedures for inter-state governance
    of REAL ID verification systems design, development, deployment, and
    operation impact cost savings to individuals, the States, and the
    Federal government?

**(500 words or less) 15** pts

> **III. What is the likelihood of success for REAL ID implementation
> and compliance in the state?**

-   Depending upon the organizational structure the State chooses to use
    to implement REAL ID, and whether it will work jointly with other
    States in a multi-state compact or partnership, has the State
    described how the proposal will expedite the design, deployment,
    operation, and governance of a consolidated verification system hub?

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-   Will the REAL ID governance model the State proposes support broad
    participation by the States and facilitate consensus-base
    decision-making on system definition, design, deployment, and
    operation? Describe the model.

> **(500 words or less) 10 pts**
>
> **IV. Does the State comply with the DHS National Information Exchange
> Model (NIEM) requirement?**

-   Does the State's proposal comply with NIEM for REAL ID data
    verification purposes?

-   If so, does the State explain how it plans to incorporate NIEM

> guidance with REAL ID. If not, has the State explained the basis for
> its decision (see Section II. K.).
>
> Note\* NIEM compliance is a mandatory requirement for FEMA/NPD grant
> recipients and mandated by the Department of Homeland Security.
> Failure to comply with the NIEM may adversely effect recommendations
> for awards.
>
> **(500 words or less) 10 pts**
>
> **V. Has the State described how it will use proven information
> technology (IT) solutions for REAL ID inter-state IT communications
> and computing needs?**

-   How will the State leverage proven interstate and intra-state
    communications and application systems to expedite design,
    development, deployment, and operation of a consolidated hub for
    verifying applicant information as required under the REAL ID Act?

-   Does the State's proposal provide for sufficient capacity,
    functionality, and flexibility to handle projected workloads for
    processing consolidated data queries and responses within specified
    service level parameters?

> **(500 words or less)** **10 pts**
>
> **VI. Has the State provided a detailed program narrative/plan?**

-   Has the State addressed their program management capabilities and
    work plan for REAL ID implementation?

-   Does the program narrative address security features to protect
    personal identification information against document fraud and
    theft? Will currently in use or planned for personal identification
    verification system changes conform to and support REAL ID
    implementation and compliance?

-   Has the State provided information as to how their existing drivers'
    license issuing process will be connected with, and integrated into,
    a consolidated hub for verification of applicant information? Does
    the plan include a detailed budget and budget narrative?

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-   States entering into a multi-state compact or partnership must
    describe the organizational structure it will use, with stated
    roles, relationships, and responsibilities for States submitting
    multi-state applications.

> **(1500 words or less)** **35 pts**
>
> **VII. Did the State provide details for new and innovative approaches
> that other States can utilize or replicate?**

-   What are the approaches or innovations described by the State and
    how will these enhance REAL ID implementation?

-   How can these benefit other states?

> **(500** **words or less)** **10 pts**
>
> **VIII. What security and privacy enhancements will the State
> implement?**

-   Will these changes enhance security with IT systems and at issuance
    facilities in the State?

-   What are the security enhancements? How will they change the
    physical security of facilities and improve the safety and security
    of the personal identification verification systems process?

-   Has the State described the security and privacy procedures that
    will be employed to protect personally identifiable information?

-   Will the State's proposal reduce access to or use of fraudulent
    source documents in the issuance of REAL ID?

> **(500 words or less) 5 pts [Total Possible Points]{.underline} 100**
>
> **Five bonus points will be awarded for multi-state grant
> applications.**

[]{#__RefHeading___Toc170720830 .anchor}**IV. Program Requirements**

This section provides detailed information about specific program
application requirements and the process for submission of applications.

A. General Program Requirements

Successful FY08 REAL ID applicants must comply with the following
general requirements:

**Management and Administration limits.** A maximum of 5 percent of
funds awarded may be used for management and administrative purposes
associated with the REAL ID award.

**B. Program Narrative and Budget Requirements**

**1. Program Narrative.** Successful applicants for REAL ID will be
allowed to use grant funding to establish a REAL ID Governance Body and
enhance REAL ID personal identification verification systems
capabilities. To help DHS assess these capabilities, the FY 2008 REAL ID
Demonstration Grant Program requires that all grant applicants submit a
program narrative and budget as a part of the REAL ID grant application.
The program narrative section of the grant application should include a
description of the grantee's program management capabilities (Part I)
and a program management work plan (Part II). Paragraphs 2 through 5
provide more detail for a complete program narrative.

**2. Key factors in writing a thorough REAL ID program narrative.**

-   Describe the State's current drivers' licensing verification system
    capabilities

-   Explain the proposed REAL ID capabilities solution

-   Explain the challenges and benefits to multi-state REAL ID compacts
    or partnerships

-   Describe roles and responsibilities of each State participating in
    multi-state REAL ID compacts or partnerships

-   Identify the policies and procedures that are envisioned for REAL ID
    implementation, these may include business rules and processes for
    REAL ID verification systems design, development and operation.

-   Describe the measures States take to protect the security and
    privacy of personal identification information

**3. Program Management Capabilities (Part I).** Please provide a
description of current resource management capabilities needed to
develop, implement, and manage the programmatic requirements associated
with implementing REAL ID capabilities. When describing current
management capabilities, consider including discussions and information
such as the following:

-   Major organizations, committees, and other structures accountable
    for implementing the initiatives

-   Staffing/resource levels within these core organizations responsible
    for program administration and oversight

-   Initiatives to reduce fraud and improve the security of drivers'
    licensing issuance authorities and motor vehicle operations involved
    with issuing ID cards or drivers' licenses.

-   How States participating in multi-state REAL ID compacts or
    partnerships jointly oversee and manage their efforts for fraud
    reduction, cyber and facilities security.

-   Establishment of a suite of State standards for data, systems, and
    personnel and facilities security and protection of the privacy of
    personal identification information.

**4. Program Management Work Plan (Part II).** Please provide a detailed
work plan to address the project identified in Appendix B. This work
plan will be submitted to your FEMA/NPD Preparedness Officer. Refer to
paragraph F. below, for additional guidance on developing the work plan.
The following basic goals and objectives for REAL ID should be
considered in your State's work plan:

-   Reduce the costs of REAL ID implementation for individuals, States,
    and the Federal government

-   Reduce the potential for fraudulent issuance and use of driver's
    licenses and ID cards

-   Involve the joint efforts of multi-state compacts, partnerships and
    operations

-   Involve proven technology solutions

-   Can be used or adopted by other States

-   Include privacy and security impact assessments and/or provisions

-   Include detailed cost estimates and project schedules

-   Will be completed by December 31, 2010.

5\. Program Narrative Work Plan Template

Following is the overall concept for the state's program narrative work
plan. In developing the work plan section of the program narrative,
please develop a proposal that will accomplish the following:

**Introduction**

\[State Agency Name\] will deploy a multi-state enhanced personal
identification verification system and business process to meet the
requirements of the REAL ID Act. Multi-state REAL ID compacts or
partnerships will combine the capabilities, resources, and expertise of
multiple States. The FY 2008 REAL ID Demonstration Program funding
achieves maximum benefit with limited investment dollars. States awarded
DHS funding for multi-state REAL ID initiatives will demonstrate broad
spectrum, innovative, verification systems enhancements to meet REAL ID
requirements.

**Part I (Management Capabilities).** Describe the agency's management
capabilities to design, manage and implement the programmatic
requirements for the REAL ID Act of 2005. (See paragraph 3, above)

**Part II (Work Plan).** Provide a detailed description of the work plan
that addresses the goals and objectives for your State's REAL ID
Demonstration Project.

To frame the program narrative, use the following information as well as
the guidance provided in paragraph B. 1 through 4, above:

Describe how your project(s) support REAL ID implementation with
initiatives to reduce fraud and improve the security of drivers'
licensing issuance authorities and motor vehicle operations involved
with issuing ID cards or drivers' licenses. These should be explained as
follows:

1.  How States participating in multi-state REAL ID compacts or
    partnerships jointly oversee and manage their efforts for fraud
    reduction, and cyber and facility security

2.  How multi-state compacts or partnerships plan to apportion grant
    funds between member States

3.  Identify the States, and their roles, relationships and
    responsibilities in a REAL ID multi-state compact or partnership
    with assignments of responsibilities and tasks

4.  Establishment of a suite of State standards for data, system,
    personnel and facilities security and protection of the privacy of
    personal identification information

5.  Describe the measurable achievement outcomes of your project(s) and
    how they could be replicated, used or transferred to other States

8\. Describe how the State will comply with the NIEM requirement.

**6. Budget and Budget Narrative Requirements.**

All FY 2008 REAL ID Demonstration Grant Program award recipients are
required to submit a budget narrative and budget detail worksheets
addressing REAL ID related costs and expenses, as a part of the REAL ID
application. This budget narrative should be detailed and should serve
to: (1) explain how the costs were estimated, and (2) justify the need
for the costs incurred to the measurable achievement outcomes as stated
in the work plan. For clarification purposes, the narrative should
include tables describing cost and expense elements (e.g. equipment list
with unit costs/quantity). The narrative and accompanying budget
worksheets should be provided to your FEMA/NPD Preparedness Officer.
*Please see Appendix 5 for sample budget worksheets.*

-   **Single Point of Contact (SPOC) Review.** Executive Order 12372,
    locate at
    <http://www.archives.gov/federal_register/codification/executive_order/12372.html>,
    requires applicants from State and local units of government or
    other organizations providing services within a State to submit a
    copy of the application to the State SPOC, if one exists and if this
    program has been selected for review by the State. Applicants must
    contact their State SPOC to determine if the program has been
    selected for State review. The date that the application was sent to
    the SPOC or the reason such submission is not required should be
    provided.

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-   **Homeland Security Advisor.** Applicants must provide a copy of
    their application to the HSA prior to submission for concurrence
    with existing initiatives.

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-   **State Administrative Agency.** Applicants must provide a copy of
    their application to the SAA prior to submission for coordination
    with existing initiatives.

**Applicants must familiarize themselves with the requirements and
restrictions of the Program Guidance for FY 2008 REAL ID Demonstration
Grant Program, available in Sections I through III of this document. The
Program Guidelines contain critical information regarding this grant
program. All grant recipients are assumed to have read and understood
this Program Guidance.**

[]{#__RefHeading___Toc170720831 .anchor}**Appendix A\
Alignment of REAL ID with the National Preparedness Architecture**

Figure 1, below, graphically summarizes key elements of the national
preparedness architecture. The REAL ID Program seeks maximum alignment
with this architecture.

**Figure 1.**

**Laws, Strategy Documents, Directives and Plans That Impact the**

**Implementation of the REAL ID Act of 2005**

![](media/image3.wmf)

[]{#__RefHeading___Toc170720832 .anchor}**Appendix B\
REAL ID Allowable Expenses**

**A. Overview.**

Specific investments made in support of the funding priorities discussed
above generally fall into one of four categories. FY08 REAL ID allowable
costs are therefore divided into the following four categories:

1\. Personal identification verification systems enhancements

> 2\. Communications and information technologies (IT) computing
> hardware and software

3\. Personnel and management costs

> 4\. Enhancing facilities and IT security to protect personal
> identification information

**B. Allowable Cost Guidance.**

Allowable costs are divided into planning, equipment, and systems
development categories. In addition, management and administration (M&A)
costs are allowable, up to 5% of the total amount. The following
provides general allowable costs guidance:

**1. Planning Costs Guidance**

REAL ID Demonstration Grant Program funds may be used for a variety of
planning activities, to include:

-   Costs associated with establishing and participating in a REAL ID
    Governance Body

-   Costs for a ID holder pointer verification system

-   Costs associated with personal identification verification system
    enhancements

-   Costs associated with the development of the project's final report

-   Developing or enhancing plans and protocols

-   Costs associated with hiring personnel and consultants to oversee
    planning and management activities as well as complying with
    reporting/data collection requirements, and requests for data by
    DHS/OPD or FEMA/NPD

-   Personnel to assist with the design, requirements, implementation
    and evaluation of FY 2008 REAL ID Demonstration Grant Program.

**2. Equipment Costs Guidance**

REAL ID demonstration funding may be used for a variety of limited
equipment purchases, to include:

-   Software associated with systems integration

-   Hardware associated with systems integration

-   Equipment related to information exchange.

**3. Management and Administrative Costs Guidance**

M&A costs include the following categories of activities:

-   Hiring of full-time or part-time staff or contractors/consultants to
    assist with the management of FY 2008 REAL ID Demonstration funds

-   Hiring of full-time or part-time staff or contractors/consultants
    and expenses related to FY 2008 REAL ID Demonstration Grant Program
    proposal submission management activities

-   DHS travel-related expenses

-   DHS meeting-related expenses

-   Acquisition of authorized office equipment, including personal
    computers, laptop computers, printers, LCD projectors, and other
    equipment or software which may be required to implement REAL ID

-   REAL ID recommendations and findings generated by the REAL ID
    Governance Body

-   The following are allowable only within the period of performance of
    the grant program:

    -   Recurring fees/charges associated with certain equipment, such
        as cell phones, faxes, etc.

    -   Leasing and/or renting of space for newly hired personnel to
        administer programs within the FY 2008 REAL ID Demonstration
        Grant Program.

The grantee may use up to ***5% of the total amount*** for M&A purposes.

**4. Personnel Costs Guidance**

States will submit a budget and budget narrative with personnel cost
estimates. Sample budget worksheets are provided in Appendix C.

**5. Unallowable Costs Guidance**

Several costs such as using grant funds for the construction of new
facilities, or hiring of law enforcement personnel for REAL ID
activities are not allowed under the FY 2008 REAL ID Demonstration Grant
Program. Applicants should contact their FEMA/NPD Preparedness Officer
at (800) 368-6498 for guidance and clarification regarding these
unallowable costs.

**5.1 \-- Construction and renovation**

Construction and renovation is prohibited under this grant application.

**5.2 \-- Hiring of Public Safety Personnel**

The REAL ID Demonstration Grant Program is not intended as a hiring
program and funds may not be used to support the hiring of sworn public
safety officers for the purposes of fulfilling traditional public safety
duties or to supplant traditional public safety positions and
responsibilities.

[]{#__RefHeading___Toc170720833 .anchor}**Appendix C\
*Grants.Gov* Quick-Start Instructions**

All REAL ID applicants must file their applications using the
Administration's common electronic "storefront" \-- *grants.gov*.
Eligible REAL ID grant recipients must apply for funding through this
portal, accessible on the Internet at
*[http://www.grants.gov](http://www.grants.gov/).*

Application attachments submitted via *grants.gov* must be in one of the
following formats: Microsoft Word (\*.doc), PDF (\*.pdf), or text
(\*.txt). Use the Catalog of Federal Domestic Assistance (CFDA) number
listed in the relevant program guidance section of this document in
Grants.gov.

This Appendix is intended to provide guidance on the various steps and
activities associated with filing an application using *grants.gov.*

***Step 1:* Registering.**

Registering with *grants.gov* is a one-time process; however, if you are
a first time registrant **it could take 3-5 business days to have your
registration validated, confirmed, and receive your user name and
password**. It is highly recommended you start the registration process
as early as possible to prevent delays in submitting your application
package to our agency by the deadline specified. While your registration
is pending, you may continue with steps 2, 3, and 4 of these
instructions. Registration must be complete for you to be able to submit
(step 5) and track (step 6) an application.

**1. Establishing an e-business point of contact**. *Grants.gov*
requires an organization to first be registered in the Central Contract
Registry (CCR) before beginning the *grants.gov* registration process.
If you plan to authorize representatives of your organization to submit
grant applications through *grants.gov*, proceed with the following
steps. If you plan to submit a grant application yourself and sign grant
applications and provide the required certifications and/or assurances
necessary to fulfill the requirements of the application process,
proceed to DUNS Number and then skip to the Authorized Organization
Representative and Individuals section.

Go to *[www.grants.gov](http://www.grants.gov/),* and click on the "Get
Started" tab at the top of the screen.

-   Click the "e-Business Point of Contact" option and click the "GO"
    button on the bottom right of the screen. If you have already
    registered with Grants.gov, you may log in and update your profile
    from this screen.

-   To begin the registration process, click the "Register your
    Organization \[Required\]" or "Complete Registration Process
    \[Required\]" links. You may print a registration checklist by
    accessing
    *[www.grants.gov/assets/OrganizationRegCheck.pdf](http://www.grants.gov/assets/OrganizationRegCheck.pdf).*

**2. DUNS number.** You must first request a Data Universal Numbering
System (DUNS) number. Click "Step 1. Request a DUNS Number." If you are
applying as an individual, please skip to "Authorized Organization
Representative and Individuals." If you are applying on behalf of an
organization that already has a DUNS number, please proceed to "Step 2.
Register with Central Contractor Registry (CCR)." You may obtain a DUNS
number at no cost by calling the dedicated toll-free DUNS number request
line at 1--866--705--5711.

**3. Central Contractor Registry (CCR).** Registering with the CCR,
updating or changing your profile could take up to three to five
business days to be confirmed and validated. This delay could prevent
your application from being submitted by the deadline specified, so you
should register or make changes to your profile as early in the process
as possible.

Once you have a DUNS number, click on "Step 2. Register with Central
Contractor Registry (CCR)." Here you are required to designate an
individual as a point of contact. This point of contact is the sole
authority for the organization and has the capability of issuing or
revoking another individual's authority to submit grant applications
through Grants.gov.

A registration worksheet is provided to assist in the CCR registration
process at *[http://www.ccr.gov](http://www.ccr.gov/).* It is
recommended you review the "Tips for registering with the CCR" at the
bottom of this template.

-   Go to *[http://www.ccr.gov](http://www.ccr.gov/)* or click on the
    CCR icon in the middle of the screen to begin the registration
    process. To see if your organization is already registered, click
    "Search CCR" at the top left side of the screen. Search entries must
    be exact to accurately search the database. If your organization is
    already registered, you can scroll down and see who the e-Business
    point of contact is for your agency. If your organization is not
    already registered, return to the CCR home page and click "Start New
    Registration" at the top left of the screen.

-   If you have problems or questions about the CCR registration
    process, please contact the CCR Assistance Center at
    1--888--227--2423.

-   Once your registration is complete, you will receive an e-mail with
    a Trading Partner Identification Number (TPIN) and Marketing Partner
    Identification Number (MPIN) number. You will need the MPIN number
    to register with *grants.gov*. If your organization is already
    registered with the CCR, you will need to obtain the MPIN number
    from your e-Business POC.

**4. Authorize your Organization Representative.** Click "Step 3.
Authorize your Organization Representative." Follow steps 1-4. You will
need your DUNS + 4 digit number and the MPIN number CCR e-mailed to you.

**5. Log in as e-Business Point of Contact.** You may now go to "Step 4.
Log in as e-Business Point of Contact." Here you may authorize or revoke
the authority of the Authorized Organization Representative. Once you
are logged in, go to Step 2. *Downloading the Application Viewer*,
below.

**6. Authorized Organization Representative and Individuals.** If you
plan to submit a grant application as an individual or an Authorized
Organization Representative, with authority to sign grant applications
and the required certifications and/or assurances necessary to fulfill
the requirements of the application process, proceed with the following
steps:

-   Go to [*www.grants.gov*](http://www.grants.gov/) and click on the
    "Get Started" tab at the top of the screen.

-   Click the "Authorized Organization Representative (AOR)" option and
    click the "GO" button to the bottom right of the screen. If you are
    applying as an individual, click the "Individuals" option and click
    the "GO" button to the bottom right of the screen.

-   If you have previously registered as an AOR, you may start searching
    for this grant opportunity from this page. Otherwise, you must
    complete the first-time registration by clicking "Complete
    First-Time Registration \[Required\]." You also may click on "Review
    Registration Checklist" and print a checklist for the following
    steps (see
    *[www.grants.gov/assets/AORRegCheck.pdf](http://www.grants.gov/assets/AORRegCheck.pdf)).*

-   Individuals may click the "registration checklist" for help in
    walking through the registration process.

**7. Credential Provider.** Once you have entered the registration
process, you must register with the credential provider, to safeguard
the security of your electronic information. You must have your agency's
or individual DUNS + 4 digit number to complete this process. Now, click
on "Step 1. Register with a Credential Provider." Enter your DUNS number
and click "Register." Once you have entered the required information,
click the "Submit" button.

If you should need help with this process, please contact the Credential
Provider Customer Service at 1--800--386--6820. It can take up to 24
hours for your credential provider information to synchronize with
Grants.gov. Attempting to register with *grants.gov* before the
synchronization is complete may be unsuccessful.

**8. Grants.gov.** After completing the credential provider steps above,
click "Step 2. Register with Grants.gov." Enter the same user name and
password used when registering with the credential provider. You will
then be asked to provide identifying information and your organization's
DUNS number. After you have completed the registration process,
Grants.gov will notify the [e-Business POC]{.underline} for assignment
of user privileges.

Complete the "Authorized Organization Representative User Profile"
screen and click "Submit." *Note:* Individuals do not need to continue
to the "Organizational Approval" step below.

**9. Organizational Approval.** Prior to submitting a grant application
package, you must receive approval to submit on behalf of your
organization. This requirement prevents individuals from submitting
grant application packages without permission. A notice is automatically
sent to your organization's e-Business POC. Then, your e-Business POC
approves your request to become an AOR. You may go *to
[http://www.ccr.gov](http://www.ccr.gov/)* to search for your
organization and retrieve your e-Business POC contact information.

Once organization approval is complete, you will be able to submit an
application and track its status.

***Step 2:* Downloading the Application Viewer.**

You may download the PureEdge Viewer while your registration is in
process. You also may download and start completing the application
forms in steps 3 and 4 below. This application viewer opens the
application package needed to fill out the required forms. The download
process can be lengthy if you are accessing the Internet using a dial-up
connection.

-   From the *grants.gov* home page, select the "Apply for Grants" tab
    at the top of the screen.

-   Under "Apply Step 1: Download a Grant Application Package and
    Applications Instructions," click the link for the PureEdge Viewer
    ([*http://www.grants.gov/DownloadViewer*](http://www.grants.gov/DownloadViewer)).
    This window includes information about computer system requirements
    and instructions for downloading and installation.

If you are a Macintosh user, please read the PureEdge Support for
Macintosh white paper available at

> [*www.grants.gov/GrantsGov_UST_Grantee/!SSL!/WebHelp/MacSupportforPureEdge.pdf*](http://www.grants.gov/GrantsGov_UST_Grantee/!SSL!/WebHelp/MacSupportforPureEdge.pdf).

-   Scroll down and click on the link to download the PureEdge Viewer
    ([*www.grants.gov/PEViewer/ICSViewer602_grants.exe*](http://www.grants.gov/PEViewer/ICSViewer602_grants.exe)).

-   You will be prompted to save the application. Click the "Save"
    button and the "Save As" window opens. Select the location where you
    would like to save PureEdge Viewer and click the "Save" button.

-   A window appears to show the progress of the download. When the
    downloading is complete, click to close the dialog box.

-   To install the PureEdge Viewer, locate the file on your computer and
    click to open it. When you are prompted to run the file, click
    "RUN." Click "Yes" to the prompt to continue with the installation.
    The ICS InstallShield Wizard extracts the necessary files and takes
    you to the "Welcome" page.

-   Click "Next" to continue.

-   Read the license agreement and click "Yes" to accept the agreement
    and continue the installation process. This takes you to the
    "Customer Information" screen.

-   Enter a User Name and a Company Name in the designated fields and
    click "Next."

-   The "Choose Destination Location" window prompts you to select the
    folder in which PureEdge Viewer will be installed. To save the
    program in the default folder, click "Next." To select a different
    folder, click "Browse." Select the folder in which you would like to
    save the program, click on "OK," then click "Next."

-   The next window prompts you to select a program folder. To save
    program icons in the default folder, click "Next." To select a
    different program folder, type a new folder name or select one from
    the list of existing folders, then click "Next." Installation will
    begin.

-   When installation is complete, the "InstallShield Wizard Complete"
    screen will appear. Click "Finish." This will launch the "ICS Viewer
    Help Information" window. Review the information and close the
    window.

***Step 3:* Downloading an Application Package.**

Once you have downloaded the PureEdge Viewer, you may download and view
this application package and solicitation instructions.

-   From the *grants.gov* home page, select the "Apply for Grants" tab
    at the top of the screen.

-   Click "Apply Step 1: Download a Grant Application Package and
    Application Instructions."

-   Enter the CFDA number for this announcement, 97.089, then click
    "Download Package." This will take you to the "Selected Grants
    Application for Download" results page.

-   To download an application package and its instructions, click the
    corresponding download link below the "Instructions and Application"
    column.

-   Once you select a grant application, you will be taken to a
    "Download Opportunity Instructions and Application" screen to
    confirm that you are downloading the correct application. If you
    would like to be notified of any changes to this funding
    opportunity, enter your e-mail address in the corresponding field,
    then click the "Submit" button.

-   After verifying that you have downloaded the correct opportunity
    information, click the "Download Application Instructions" button.
    This will open a PDF of this grant solicitation. You may print the
    solicitation or save it to your computer by clicking either the
    print icon at the top tool bar or the "File" button on the top tool
    bar. If you choose to save the file, click on "Save As" and save to
    the location of your choice.

-   Click the "Back" Navigation button to return to the "Download
    Opportunity Instructions and Application" page. Click the "Download
    Application Package" button. The application package will open in
    the PureEdge Viewer.

-   Click the "Save" button to save the package on your computer.
    Because the form is not yet complete, you will see a prompt that one
    or more fields may be invalid. You will complete these fields in
    step 4, but for now, select "Yes" to continue. After you click
    "Yes," the "Save Form" window will open.

-   Save the application package to your desktop until after submission.
    Select a name and enter it in the "Application Filing Name" field.
    Once you have submitted the application through *grants.gov*, you
    may then move your completed application package to the file
    location of your choice.

-   Click the "Save" button. If you choose, you may now close your
    Internet browser and complete your application package offline by
    double clicking the icon on your desktop. You do not have to be
    connected to the Internet to complete the application package in
    step 4 below.

***Step 4:* Completing the Application Package.**

This application can be completed entirely offline; however, you will
need to log in to Grants.gov to submit the application in step 5.

-   Locate the application package you saved on your computer. When you
    open the package, it will be in PureEdge Viewer. You may save your
    application at any time by clicking on the "Save" button at the top
    of the screen.

-   Enter a name for your application package in the "Application Filing
    Name" field. This can be a name of your choice.

-   Open and complete all the mandatory and optional forms or documents.
    To complete a form, click to select the form, and then click the
    "Open" button. When you open a required form, the mandatory fields
    will be highlighted in yellow. If you enter incomplete information
    in a mandatory field, you will receive an error message or the field
    will turn red, indicating a change needs to be made.

-   Mandatory forms include the: (1) Application for Federal Assistance
    (SF-424); (2) Assurances for Non-Construction Programs (SF-424B);
    and (3) Disclosure of Lobbying Activities (SF-LLL). These forms can
    also be viewed at
    [*http://apply.grants.gov/agency/FormLinks?family=7*](http://apply.grants.gov/agency/FormLinks?family=7).
    Other mandatory forms are identified in Section IV.

-   When you have completed a form or document, click the "Close Form"
    button at the top of the page. Your information will automatically
    be saved.

-   Next, click to select the document in the left box entitled
    "Mandatory Documents." Click the "=\>" button to move the form or
    document to the "Mandatory Completed Documents for Submission" box
    to the right.

-   Some mandatory documents will require you to upload files from your
    computer. To attach a document, select the corresponding form and
    click "Open." Click the "Add Mandatory Attachment" button to the
    left. The "Attach File" box will open. Browse your computer to find
    where your file is located and click "Open." The name of that file
    will appear in the yellow field. Once this is complete, if you would
    like to attach additional files, click on the "Add Optional
    Attachment" button below the "Add Mandatory Attachment" button.

-   An "Attachments" window will open. Click the "Attach" button. Locate
    the file on your computer that you would like to attach and click
    the "Open" button. You will return to the "Attach" window. Continue
    this process until you have attached all the necessary documents.
    You may attach as many documents as necessary.

-   Once you have finished, click the "Done" button. The box next to the
    "Attach at Least One Optional Other Attachment" will now appear as
    checked.

-   *Note:* the name of these buttons will vary depending on the name of
    the form you have opened at that time; i.e., Budget Narrative, Other
    Attachment, and Project Narrative File.

-   To exit a form, click the "Close" button. Your information will
    automatically be saved.

***Step 5:* Submitting the Application.**

Once you have completed all the yellow fields on all the forms and saved
the application on your desktop, check the application package for
errors. This can be done any time throughout step 4 above and as often
as you like.

-   When you are ready to submit your final application package, the
    "Submit" button at the top of your screen will be enabled. This
    button will not be activated unless all mandatory data fields have
    been completed. When you are ready to submit your application, click
    on "Submit." This will take you to a "Summary" screen.

-   If your "Submit" button is not activated, then click the "Check
    Package for Errors" button at the top of the "Grant Application
    Package" screen. PureEdge Viewer will start with the first form and
    scan all the yellow fields to make sure they are complete. The
    program will prompt you to fix one error at a time as it goes
    through the scan. Once there are no more errors, the system will
    allow you to submit your application to *grants.gov.*

-   Review the application summary. If you wish to make changes at this
    time, click "Exit Application" to return to the application package,
    where you can make changes to the forms. To submit the application,
    click the "Sign and Submit Application" button.

-   This will take you to a "Login" screen where you will need to enter
    the user name and password that you used to register with
    *grants.gov* in "Step 1: Registering." Enter your user name and
    password in the corresponding fields and click "Login."

-   Once authentication is complete, your application will be submitted.
    Print this confirmation screen for your records. You will receive an
    e-mail message to confirm that the application has been successfully
    uploaded into *grants.gov*. The confirmation e-mail will give you a
    *grants.gov* tracking number, which you will need to track the
    status of your application. The confirmation e-mail will go to the
    e-Business POC; therefore, if you are submitting on behalf of
    someone else, be sure the e-Business POC is aware of the submission
    and that a confirmation e-mail will be sent.

-   When finished, click the "Close" button.

***Step 6:* Tracking the Application.**

After your application is submitted, you may track its status through
*grants.gov*. To do this, go to the *grants.gov* home page at
*[http://www.grants.gov](http://www.grants.gov/).* At the very top of
the screen, click on the "Applicants" link. Scroll down the "For
Applicants" page and click the "Login Here" button. Proceed to login
with your user name and password that was used to submit your
application package. Click the "Check Application Status" link to the
top left of the screen. A list of all the applications you have
submitted through *grants.gov* is produced. There four status messages
your application can receive in the system:

-   **Validated.** This means your application has been scanned for
    errors. If no errors were found, it validates that your application
    has successfully been submitted to Grants.gov and is ready for the
    agency to download your application.

-   **Received by Agency.** This means our agency DHS downloaded your
    application into our electronic Grants Management System (GMS) and
    your application is going through our validation process to be
    successfully received on our end.

-   **Agency Tracking Number Assigned.** This means our GMS did not find
    any errors with your package and successfully downloaded your
    application into our system.

-   **Rejected With Errors.** This means your application was either
    rejected by Grants.gov or GMS due to errors. You will receive an
    e-mail from *grants.gov* customer support, providing details of the
    results and the next steps required. Most applications are rejected
    because: (1) a virus was detected; (2) you are using a user name and
    password that has not yet been authorized by the organization's
    e-Business POC; or (3) the DUNS number you entered on the SF-424
    form does not match the DUNS number that was registered in the CCR
    for this organization.

If you experience difficulties at any point during this process, please
call the *grants.gov* customer support hotline at 1--800--518--472

[]{#__RefHeading___Toc170720834 .anchor}**Appendix D\
REAL ID Demonstration Grant Program Application Requirements**

**A. Application Requirements.**

The following steps must be completed using the on-line *grants.gov*
system to ensure a successful application submission:

**1. Application via *grants.gov*.** DHS participates in the
Administration's e-government initiative. As part of that initiative,
all REAL ID applicants must file their applications using the
Administration's common electronic "storefront" \-- *grants.gov*.
Eligible applicants must apply for funding through this portal,
accessible on the Internet at
*[http://www.grants.gov](http://www.grants.gov/).*

**2. Application deadline**. Completed Applications must be submitted to
Grants.gov no later than **11:59 PM EST, January 28, 2008.**

3.  **Valid Central Contractor Registry (CCR) Registration**. The
    application process also involves an updated and current
    registration by the applicant and the applicant's Business Point of
    Contact through the Central Contractor Registry (CCR). Eligible
    applicants must confirm CCR registration at
    *[http://www.ccr.gov](http://www.ccr.gov/),* as well as apply for
    FY08 REAL ID funding through *grants.gov* at
    *[http://www.grants.gov](http://www.grants.gov/).*

> While registration with Grants.gov and the CCR is a one-time process,
> new applicants are strongly encouraged to complete their registrations
> at least ten days prior to the application deadline, January 28, 2008,
> or 45 days from the date the program is officially announced by the
> Department.

4.  **On-line application.** The on-line application must be completed
    and submitted using Grants.gov after CCR registration is confirmed.
    The on-line application includes the following required forms and
    submissions:

-   Standard Form 424, Application for Federal Assistance

-   Standard Form 424B Assurances

-   Standard Form LLL, Disclosure of Lobbying Activities

-   Standard Form 424A, Budget Information

-   Certification Regarding Debarment, Suspension, and Other
    Responsibility Matters

-   Any additional Required Attachments

> The program title listed in the Catalog of Federal Domestic Assistance
> (CFDA) is "REAL ID Grant Program*."* The CFDA number is 90.089. When
> completing the on-line application, applicants should identify their
> submissions as new, non-construction applications*.*

5.  **Project period.** The project period will be for a period not to
    exceed 36 months.

6.  **DUNS number**. The applicant must provide a Dun and Bradstreet
    Data Universal Numbering System (DUNS) number with their
    application. This number is a required field within *grants.gov* and
    for CCR Registration. Organizations should verify that they have a
    DUNS number, or take the steps necessary to obtain one, as soon as
    possible. Applicants can receive a DUNS number at no cost by calling
    the dedicated toll-free DUNS Number request line at 1-800-333-0505.

7.  **Detailed budget**. The applicant must also provide a detailed
    budget for the funds requested. The budget must be complete,
    reasonable and cost-effective in relation to the proposed project.
    The budget should provide the basis of computation of all
    project-related costs and any appropriate narrative. Additional
    details and templates for the Detailed Budget may be found in
    Appendix E.

8.  **Standard financial requirements.**

> **8.1 \-- Non-supplanting certification.** This certification affirms
> that grant funds will be used to supplement existing funds, and will
> not replace (supplant) funds that have been appropriated for the same
> purpose. Potential supplanting will be addressed in the application
> review, as well as in the pre-award review, post-award monitoring and
> any potential audits. Applicants or grantees may be required to supply
> documentation certifying that a reduction in non-Federal resources
> occurred for reasons other than the receipt or expected receipt of
> Federal funds.
>
> **8.2 -- Assurances.** Assurances forms (SF-424B and SF-424D) can be
> accessed at *<http://apply.grants.gov/agency/FormLinks?family=7>.* It
> is the responsibility of the recipient of the Federal funds to fully
> understand and comply with these requirements. Failure to comply may
> result in the withholding of funds, termination of the award, or other
> sanctions. The applicant will be agreeing to these assurances upon the
> submission of the application.
>
> **8.3 \-- Certifications regarding lobbying; debarment, suspension,
> and other responsibility matters; and drug-free workplace
> requirement.** This certification, which is a required component of
> the on-line application, commits the applicant to compliance with the
> certification requirements under 28 CFR part 67, *Government-wide
> Debarment and Suspension (Non-procurement);* 28 CFR part 69, *New
> Restrictions on Lobbying;* and 28 CFR part 83 *Government-wide
> Requirements for Drug-Free Workplace (Grants)*. All of these can be
> referenced at:
> *<http://www.access.gpo.gov/nara/cfr/waisidx_04/28cfrv2_04.html>.*

**9. Technology requirements.**

> **9.1 \-- National Information Exchange Model.** To support homeland
> security, public safety, and justice information sharing, FEMA/NPD
> requires all grantees to use the latest National Information Exchange
> Model (NIEM) specifications and guidelines regarding the use of
> XML for all REAL ID awards. Further information about the required use
> of NIEM specifications and guidelines is available at
> *[http://www.niem.gov](http://www.niem.gov/). *
>
> **9.2 \-- Geospatial guidance.** Geospatial technologies capture,
> store, analyze, transmit, and/or display location-based information
> (i.e., information that can be linked to a latitude and longitude).
> State, local, and industry partners are increasingly incorporating
> geospatial technologies and data in an effort to prevent, protect
> against, respond to, and recover from terrorist activity and incidents
> of national significance. DHS encourages grantees to align geospatial
> activities with the guidance available on the FEMA/NPD website at
> *<http://www.ojp.usdoj.gov/odp/grants_hsgp.htm>.*

**10. Administrative requirements.**

> **10.1 \-- Freedom of Information Act (FOIA).** DHS recognizes that
> much of the information submitted in the course of applying for
> funding under this program or provided in the course of its grant
> management activities may be considered law enforcement sensitive or
> otherwise important to national security interests. This may include
> threat, risk, and needs assessment information, and discussions of
> demographics, transportation, public works, and industrial and public
> health infrastructures. While this information under Federal control
> is subject to requests made pursuant to the Freedom of Information Act
> (FOIA), 5. U.S.C. §552, all determinations concerning the release of
> information of this nature are made on a case-by-case basis by the DHS
> FOIA Office, and may likely fall within one or more of the available
> exemptions under the Act. The applicant is encouraged to consult its
> own State and local laws and regulations regarding the release of
> information, which should be considered when reporting sensitive
> matters in the grant application, needs assessment and strategic
> planning process. The applicant may also consult FEMA/NPD regarding
> concerns or questions about the release of information under state and
> local laws. The grantee should be familiar with the regulations
> governing Protected Critical Infrastructure Information (6 CFR Part
> 29) and Sensitive Security Information (49 CFR Part 1520), as these
> designations may provide additional protection to certain classes of
> homeland security information.
>
> **10.2 \-- Protected critical infrastructure information (PCII)**. The
> PCII Program, established pursuant to the Critical Infrastructure
> Information Act of 2002 (CII Act), created a new framework, which
> enables State and local jurisdictions and members of the private
> sector voluntarily to submit sensitive information regarding critical
> infrastructure to DHS. The Act also provides statutory protection for
> voluntarily shared CII from public disclosure and civil litigation. 
> If validated as Protected Critical Infrastructure Information, these
> documents can only be shared with authorized users who agree to
> safeguard the information.
>
> PCII accreditation is formal recognition that the covered government
> entity has the capacity and capability to receive and store PCII.  DHS
> encourages all REAL ID grantees and SAAs to pursue PCII accreditation
> to cover their state government and attending local government
> agencies for all REAL ID related matters.  Accreditation activities
> include signing an MOA with DHS, appointing a PCII Officer, and
> implementing a self-inspection program. For additional information
> about PCII or the accreditation process, please contact the DHS PCII
> Program Office at *<pcii-info@dhs.gov>.*
>
> **10.3 \-- Compliance with federal civil rights laws and
> regulations.** The grantee is required to comply with Federal civil
> rights laws and regulations. Specifically, the grantee is required to
> provide assurances as a condition for receipt of Federal from DHS that
> its programs and activities comply with the following:

-   *Title VI of the Civil Rights Act of 1964, as amended, 42. U.S.C.
    2000 et. seq.* -- no person on the grounds of race, color or
    national origin will be excluded from participation in, be denied
    the benefits of, or be otherwise subjected to discrimination in any
    program or activity receiving Federal financial assistance. More
    information can be found at:
    *<http://usinfo.state.gov/usa/infousa/laws/majorlaw/civilr19.htm>.*

-   *Section 504 of the Rehabilitation Act of 1973, as amended, 29
    U.S.C. 794* -- no qualified individual with a disability in the
    United States, shall, by reason of his or her disability, be
    excluded from the participation in, be denied the benefits of, or
    otherwise be subjected to discrimination in any program or activity
    receiving Federal financial assistance. More information can be
    found at:
    *<http://www.section508.gov/index.cfm?FuseAction=Content&ID=15>.*

-   *Title IX of the Education Amendments of 197*2, *as amended, 20
    U.S.C. 1681 et. seq.* -- discrimination on the basis of sex is
    eliminated in any education program or activity receiving Federal
    financial assistance. More information can be found at:
    *<http://www.usdoj.gov/crt/cor/coord/titleix.htm>.*

-   *The Age Discrimination Act of 1975, as amended, 20 U.S.C. 6101 et.
    seq.* -- no person in the United States shall be, on the basis of
    age, excluded from participation in, denied the benefits of or
    subjected to discrimination under any program or activity receiving
    Federal financial assistance. More information can be found at:
    *<http://www.lawresearchservices.com/firms/admin/act-age.htm>.*

> Grantees must comply with all regulations, guidelines, and standards
> adopted under the above statutes. The grantee is also required to
> submit information, as required, to the DHS Office for Civil Rights
> and Civil Liberties concerning its compliance with these laws and
> their implementing regulations.
>
> **10.4 \-- Services to limited English proficient (LEP) persons**.
> Recipients of DHS financial assistance are required to comply with
> several Federal civil rights laws, including Title VI of the Civil
> Rights Act of 1964, as amended. These laws prohibit discrimination on
> the basis of race, color, religion, national origin, and sex in the
> delivery of services. National origin discrimination includes
> discrimination on the basis of limited English proficiency. To ensure
> compliance with Title VI, recipients are required to take reasonable
> steps to ensure that LEP persons have meaningful access to their
> programs. Meaningful access may entail providing language assistance
> services, including oral and written translation, where necessary. The
> grantee is encouraged to consider the need for language services for
> LEP persons served or encountered both in developing their proposals
> and budgets and in conducting their programs and activities.
> Reasonable costs associated with providing meaningful access for LEP
> individuals are considered allowable program costs. For additional
> information, please see *[http://www.lep.gov](http://www.lep.gov/).*
>
> **10.5 \-- Integrating individuals with disabilities into emergency
> planning**. Executive Order #13347, entitled \"Individuals with
> Disabilities in Emergency Preparedness\" and signed in July 2004,
> requires the Federal government to support safety and security for
> individuals with disabilities in situations involving disasters,
> including earthquakes, tornadoes, fires, floods, hurricanes, and acts
> of terrorism. Consequently, Federal agencies are required to: (1)
> encourage consideration of the needs of persons with disabilities in
> emergency preparedness planning; and (2) facilitate cooperation among
> Federal, state, local, and tribal governments, private organizations,
> non-governmental organizations and the general public in the
> implementation of emergency preparedness plans as they relate to
> individuals with disabilities.
>
> Further information can be found at the Disability and Emergency
> Preparedness Resource Center at
> *<http://www.dhs.gov/disabilitypreparedness>[.]{.underline}*
>
> **10.6 \-- Compliance with the National Energy Conservation Policy and
> Energy Policy Acts.** In accordance with the FY07 DHS Appropriations
> Act, all FY07 grant funds must comply with the following two
> requirements:

-   None of the funds made available through the REAL ID shall be used
    in contravention of the Federal buildings performance and reporting
    requirements of Executive Order No. 13123, part 3 of title V of the
    National Energy Conservation Policy Act (42 USC 8251 et seq), or
    subtitle A of title I of the Energy Policy Act of 2005 (including
    the amendments made thereby)**.**

-   None of the funds made available through the REAL ID shall be used
    in contravention of section 303 of the Energy Policy Act of 1992 (42
    USC13212).

> **10.7 \-- National Environmental Policy Act (NEPA).** NEPA requires
> DHS to analyze the possible environmental impacts of each construction
> project funded by a DHS grant. The purpose of a NEPA review is to
> weigh the impact of major Federal actions or actions undertaken using
> Federal funds on adjacent communities, water supplies, historical
> buildings, endangered species, or culturally sensitive areas prior to
> construction.  Grantees may be required to provide additional detailed
> information on the activities to be conducted, locations, sites,
> possible construction activities, alternatives, and any environmental
> concerns.  Results of the NEPA Compliance Review could result in a
> project not being approved for funding, the need to perform an
> Environmental Assessment or draft an Environmental Impact Statement. .

**B. REAL ID Application Checklist.**

***All REAL ID applicants must complete the following:***

1.  **SF-424 Grant Application with Certifications (through
    *grants.gov*)**

-   Non-Supplanting Certification; assurances; certifications regarding
    lobbying; debarment, suspension, and other responsibility matters;
    and drug-free workplace requirement.

    1.  **DUNS Number (through *grants.gov*)**

    2.  **Detailed Budget (through *grants.gov* file attachment).** See
        Appendix 5.

    3.  **Accounting System and Financial Capabilities Questionnaire, if
        applicable (through *grants.gov* file
        attachment).**[]{#__RefHeading___Toc170720835 .anchor}

> **Appendix E\
> Sample Budget Detail Worksheet**

**OMB Approval No. 1121-0188**

**Purpose.** The Budget Detail Worksheet may be used as a guide to
assist applicants in the preparation of the budget and budget narrative.
You may submit the budget and budget narrative using this form or in the
format of your choice (plain sheets, your own form, or a variation of
this form). However, all required information (including the budget
narrative) must be provided. Any category of expense not applicable to
your budget may be deleted.

**A. Personnel**. List each position by title and name of employee, if
available. Show the annual salary rate and the percentage of time to be
devoted to the project. Compensation paid for employees engaged in grant
activities must be consistent with that paid for similar work within the
applicant organization.

**[Name/Position]{.underline} [Computation]{.underline}
[Cost]{.underline}**

**Note:** Personnel costs are only allowable for direct management and
administration of the grant award, i.e., preparation of mandatory
post-award reports.

**TOTAL** \_\_\_\_\_\_\_\_\_

**B. Fringe Benefits**. Fringe benefits should be based on actual known
costs or an established formula. Fringe benefits are for the personnel
listed in budget category (A) and only for the percentage of time
devoted to the project. Fringe benefits on overtime hours are limited to
FICA, Workman's Compensation and Unemployment Compensation.

**[Name/Position]{.underline} [Computation]{.underline}
[Cost]{.underline}**

**TOTAL** \_\_\_\_\_\_\_\_\_

**Total Personnel & Fringe Benefits** \_\_\_\_\_\_\_\_\_

**C. Travel**. Itemize travel expenses of project personnel by purpose
(e.g., staff to training, field interviews, advisory group meeting,
etc.). Show the basis of computation (e.g., six people to 3-day training
at \$X airfare, \$X lodging, \$X subsistence). In training projects,
travel and meals for trainees should be listed separately. Show the
number of trainees and unit costs involved. Identify the location of
travel, if known. Indicate source of Travel Policies applied, Applicant
or Federal Travel Regulations.

**[Purpose of Travel]{.underline} [Location]{.underline}
[Item]{.underline} [Computation]{.underline} [Cost]{.underline}**

**TOTAL** \_\_\_\_\_\_\_\_\_

**D. Equipment**. List non-expendable items that are to be purchased.
Non-expendable equipment is tangible property having a useful life of
more than two years. (Note: Organization's own capitalization policy and
threshold amount for classification of equipment may be used).
Expendable items should be included either in the "Supplies" category or
in the "Other" category. Applicants should analyze the cost benefits of
purchasing versus leasing equipment, especially high cost items and
those subject to rapid technical advances. Rented or leased equipment
costs should be listed in the "Contractual" category. Explain how the
equipment is necessary for the success of the project. Attach a
narrative describing the procurement method to be used.

**[Item]{.underline} [Computation]{.underline} [Cost]{.underline}**

**Budget Narrative:** Provide a narrative budget justification for each
of the budget items identified.

**TOTAL** \_\_\_\_\_\_\_\_\_

**E. Supplies**. List items by type (office supplies, postage, training
materials, copying paper, and other expendable items such as books, hand
held tape recorders) and show the basis for computation. (Note:
Organization's own capitalization policy and threshold amount for
classification of supplies may be used). Generally, supplies include any
materials that are expendable or consumed during the course of the
project.

**[Supply Items]{.underline} [Computation]{.underline}
[Cost]{.underline}**

**TOTAL** \_\_\_\_\_\_\_\_\_

**F. Consultants/Contracts**. Indicate whether applicant's formal,
written Procurement Policy or the Federal Acquisition Regulations are
followed.

**Consultant Fees:** For each consultant enter the name, if known,
service to be provided, hourly or daily fee (8-hour day), and estimated
time on the project.

**[Name of Consultant]{.underline} [Service Provided]{.underline}
[Computation]{.underline} [Cost]{.underline}**

**Budget Narrative:** Provide a narrative budget justification for each
of the budget items identified.

**Subtotal** \_\_\_\_\_\_\_\_\_\_\_

**Consultant Expenses**: List all expenses to be paid from the grant to
the individual consultant in addition to their fees (i.e., travel,
meals, lodging, etc.)

**[Item]{.underline} [Location]{.underline} [Computation]{.underline}
[Cost]{.underline}**

**Budget Narrative:** Provide a narrative budget justification for each
of the budget items identified.

**Subtotal** \_\_\_\_\_\_\_\_\_\_

**Contracts:** Provide a description of the product or services to be
procured by contract and an estimate of the cost. Applicants are
encouraged to promote free and open competition in awarding contracts. A
separate justification must be provided for sole source contracts in
excess of \$100,000.

**[Item]{.underline} [Cost]{.underline}**

**Budget Narrative:** Provide a narrative budget justification for each
of the budget items identified.

**Subtotal** \_\_\_\_\_\_\_\_

**TOTAL** \_\_\_\_\_\_\_\_\_\_

**G. Other Costs**. List items (e.g., rent, reproduction, telephone,
janitorial or security services, and investigative or confidential
funds) by major type and the basis of the computation. For example,
provide the square footage and the cost per square foot for rent, and
provide a monthly rental cost and how many months to rent.

**[Description]{.underline} [Computation]{.underline}
[Cost]{.underline}**

**Budget Narrative:** Provide a narrative budget justification for each
of the budget items identified.

***Important Note:*** If applicable to the project, construction costs
should be included in this section of the Budget Detail Worksheet.

**TOTAL** \_\_\_\_\_\_\_\_\_

**H. Indirect Costs**. Indirect costs are allowed only if the applicant
has a Federally approved indirect cost rate. A copy of the rate
approval, (a fully executed, negotiated agreement), must be attached. If
the applicant does not have an approved rate, one can be requested by
contacting the applicant's cognizant Federal agency, which will review
all documentation and approve a rate for the applicant organization, or
if the applicant's accounting system permits, costs may be allocated in
the direct costs categories.

**[Description]{.underline} [Computation]{.underline}
[Cost]{.underline}**

**TOTAL** \_\_\_\_\_\_\_\_\_

**Budget Summary** - When you have completed the budget worksheet,
transfer the totals for each category to the spaces below. Compute the
total direct costs and the total project costs. Indicate the amount of
Federal funds requested and the amount of non-Federal funds that will
support the project.

**[Budget Category]{.underline} [Federal Amount]{.underline}
[Non-Federal Amount]{.underline}**

**A. Personnel** \_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_

**B. Fringe Benefits** \_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_

**C. Travel** \_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_

**D. Equipment** \_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_

**E. Supplies** \_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_

**F. Consultants/Contracts** \_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_

**G. Other** \_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_

**Total Direct Costs** \_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_

**H. Indirect Costs** \_\_\_\_\_\_\_\_\_\_
[\_\_\_\_\_\_\_\_\_\_]{.underline}

**\* TOTAL PROJECT COSTS** \_\_\_\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_\_\_

**Federal Request** \_\_\_\_\_\_\_\_\_\_

**Non-Federal Amount** \_\_\_\_\_\_\_\_\_\_

**Detailed Budget Submission and File Naming Convention.**

The Detailed Budget must be submitted with the grant application as a
file attachment within *grants.gov*. Applicants must use the following
file naming convention when submitting required documents as part of the
FY08 REAL ID Demonstration Grant Program:

[]{#__RefHeading___Toc170720836 .anchor}**Appendix F\
Award and Reporting Requirements**

**A. Grant Award**

Upon approval of the application, the grant will be awarded to the State
Motor Vehicle/Drivers' License Issuing Authority. This date will be
known as the "award date."  The signed award document with special
conditions must be returned to Department of Homeland Security, Federal
Emergency Management Agency, Office of Grant Operations (OGO), 245
Murray Lane Bldg. 410, Washington, DC 20528-7000

A sample award package is included below.

**B. Review Award and Special Conditions Document.**

Notification of award approval is made by e-mail through the FEMA Grants
Management System (GMS).  Once an award has been approved, a notice is
sent to the e-mail address of the individual who filed the application,
as well as to the authorized grantee official.

Carefully read the award and any special conditions or other
attachments.

**[If you agree]{.underline}** with the terms and conditions, the
authorized official should sign and date both the original and the copy
of the award document page in Block 19.

You should maintain a copy and return the original signed documents to:

> Department of Homeland Security
>
> Federal Emergency Management Agency
>
> Office of Grant Operations
>
> Attention: Control Desk

245 Murray Lane Bldg. 410

Washington, DC 20528-7000

**[If you do not agree]{.underline}** with the terms and conditions,
contact the awarding DHS Program Manager as noted in the award package.

**B.1 Read Guidelines.**

Read and become familiar with the *OGO Financial Management Guide,*
which is available at 1-866-9ASKOGO or online at
*[[http://www.dhs.gov/xopnbiz/grants/]{.underline}](http://www.dhs.gov/xopnbiz/grants/).*

**B.2 Reporting Requirements.**

Reporting requirements must be met during the life of the grant (refer
to the *OGO Financial Management Guide* and the specific program
guidance for a full explanation of these requirements, special
conditions, and any applicable exceptions). Please note that the
*Payment and Reporting System* contains edits that will prevent access
to funds if reporting requirements are not met on a timely basis.

**B.3 Questions about your award?**

Questions regarding your grant **the FEMA help line at** 1-866-927-5646
or e-mail at *<ask-ogo@dhs.gov>.*

***[Important Note]{.underline}: If you have any questions about GMS,
need to establish a GMS account, or require technical assistance with
accessing your award, please contact the GMS Hotline at
1-888-549-9901.***

**C. Drawdown and Expenditure of Funds**

Following acceptance of the grant award and release of any special
conditions withholding funds, the grantee can draw down and expend grant
funds through the Payment and Reporting System.

Questions regarding award payments and how to access this system should
be addressed to the dedicated FEMA call center at 1-866-927-5646 or
email at <ask-ogo@dhs.gov>.

Grantees should request funds based upon immediate disbursement
requirements. Funds will not be paid in a lump sum, but rather disbursed
over time as project costs are incurred or anticipated. Recipients
should time their drawdown requests to ensure that Federal cash on hand
is the minimum needed for disbursements to be made immediately or within
a few days.

**D. Reporting Requirements**

**D.1 Financial Status Report (FSR)**

Obligations and expenditures must be reported to DHS on a quarterly
basis through the FSR, which is due within 30 days of the end of each
calendar quarter (e.g., for the quarter ending March 31, FSR is due on
April 30). A report must be submitted for every quarter the award is
active, including partial calendar quarters, as well as for periods
where no grant activity occurs. Future awards and fund draw downs could
be withheld if these reports are delinquent.

FSRs **must be filed online** through Payment and Reporting System.

Grantees are reminded to review the following documents and ensure that
grant activities are conducted in accordance with the applicable
guidance:

-   [*OMB Circular
    A-102*](http://www.whitehouse.gov/omb/circulars/a102/a102.html)*,
    Grants and Cooperative Agreements with State and Local Governments,
    at <http://www.whitehouse.gov/omb/circulars/index.html>*

-   *[OMB Circular
    A-87](http://www.whitehouse.gov/omb/circulars/a087/a87_2004.html),
    Cost Principles for State, Local, and Indian Tribal Governments, at
    <http://www.whitehouse.gov/omb/circulars/index.html>*

-   *[OMB Circular
    A-110](http://www.whitehouse.gov/omb/circulars/a110/a110.html),
    Uniform Administrative Requirements for Grants and Other Agreements
    with Institutions of Higher Education, Hospitals and Other
    Non-Profit Organizations, at
    <http://www.whitehouse.gov/omb/circulars/index.html>*

-   *[OMB Circular
    A-21](http://www.whitehouse.gov/omb/circulars/a021/a21_2004.html),
    Cost Principles for Educational Institutions, at
    <http://www.whitehouse.gov/omb/circulars/index.html>*

-   *[OMB Circular
    A-122](http://www.whitehouse.gov/omb/circulars/a122/a122.html), Cost
    Principles for Non-Profit Organizations, at
    <http://www.whitehouse.gov/omb/circulars/index.html>*

For FY 2008awards, grant and subgrant recipients should refer to the OGO
Financial Guide. All previous awards are still governed by the OJP
Financial Guide, available at
[*http://www.ojp.usdoj.gov/FinGuide*](http://www.ojp.usdoj.gov/FinGuide).
OGO can be contacted at 1-866-9ASKOGO or by e-mail at
*<ask-OGO@dhs.gov>.*

**[Required Submission]{.underline}**: Financial Status Report (FSR)
SF-269a (due quarterly)

**D.2 Categorical Assistance Progress Report (CAPR)**

Following award of a grant, the State and its subgrantees will be
responsible for providing updated obligation and expenditure information
on a regular basis. The grantee is responsible for completing and
submitting the CAPR reports.

The CAPR is due within 30 days after the end of the reporting period
([July 30]{.underline} with a reporting period of January 1 through June
30, and on [January 30]{.underline} with a reporting period of July 1
though December 31). Grantees will provide initial overall obligation
and expenditure information with the CAPR submission due January 30,
2008. Future awards and fund drawdowns may be withheld if these reports
are delinquent.

CAPRs **must be filed online** through the Internet at
[*https://grants.ojp.usdoj.gov*](https://grants.ojp.usdoj.gov/).  Forms
and instructions can be found at *<http://www.ojp.usdoj.gov/forms.htm>.*

**[Required Submission]{.underline}**: CAPR (biannually).

**D.3 Financial and Compliance Audit Report**

Recipients that expend \$500,000 or more of Federal funds during their
fiscal year are required to submit an organization-wide financial and
compliance audit report. The audit must be performed in accordance with
the U.S. Government Accountability Office, *Government Auditing
Standards*, located at *<http://www.gao.gov/govaud/ybk01.htm>,* and *OMB
Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations*, located at
[*http://www.whitehouse.gov/omb/circulars/a133/a133.html*](http://www.whitehouse.gov/omb/circulars/a133/a133.html).
Audit reports are currently due to the Federal Audit Clearinghouse no
later than nine months after the end of the recipient's fiscal year. In
addition, the Secretary of Homeland Security and the Comptroller General
of the United States shall have access to any books, documents, and
records of recipients of FY 2008 REAL ID Demonstration Grant Program
assistance for audit and examination purposes, provided that, in the
opinion of the Secretary of Homeland Security or the Comptroller
General, these documents are related to the receipt or use of such
assistance. The grantee will also give the sponsoring agency or the
Comptroller General, through any authorized representative, access to,
and the right to examine, all records, books, papers or documents
related to the grant.

The State shall require that subgrantees comply with the audit
requirements set forth in *OMB Circular A-133*. Recipients are
responsible for ensuring that sub-recipient audit reports are received
and for resolving any audit findings.

**D.4. Federal Funding Accountability and Transparency Act**

While there are no requirements in FY 2007, the Federal Funding
Accountability and Transparency Act of 2006 may affect reporting
requirements in later years. The Act requires the Federal government to
create a publicly-searchable online database of Federal grant recipients
by January 1, 2008 with an expansion to include subgrantee information
by January 1, 2009.

**E. Monitoring**

Grant recipients will be monitored periodically by DHS program staff and
OGO staff, both programmatically and financially, to ensure that the
project goals, objectives, performance requirements, timelines,
milestone completion, budgets and other related program criteria are
being met. Monitoring will be accomplished through a combination of
office-based and on-site monitoring visits. Monitoring will involve the
review and analysis of the financial, programmatic, performance and
administrative issues relative to each program and will identify areas
where technical assistance and other support may be needed.

The recipient is responsible for monitoring award activities, to include
subawards, to provide reasonable assurance that the Federal award is
administered in compliance with requirements. Responsibilities include
the accounting of receipts and expenditures, cash management,
maintaining adequate financial records, and refunding expenditures
disallowed by audits.

**F. Grant Close-Out Process**

***Within 90 days after the end of the award period, grantees must
submit a Final FSR, Final CAPR, and Final Report detailing all
accomplishments throughout the project.*** The Final Report must detail
the outcomes of the target hardening activities accomplished with grant
funds. After these reports have been reviewed and approved by DHS, a
Grant Adjustment Notice (GAN) will be completed to close out the grant.
The GAN will indicate the project as being closed, list any remaining
funds that will be deobligated, and address the requirement of
maintaining the grant records for three years from the date of the final
FSR.

[^1]:  Included in the Emergency Supplemental Appropriations Act, Pub.
    L. 109-13 (May 11, 2005).

[^2]: For purposes of the REAL ID Act, "State" is defined at sec. 201(5)
    as "a State of the United States, the District of Columbia, Puerto
    Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana
    Islands, the Trust Territory of the Pacific Islands, and any other
    territory or possession of the United States.