PART 1775 - Technical Assistance and Training Grants

##  **Table of Contents**

1775.1 General

1775.2 \[Reserved\]

1775.3 Objectives

1775.4 Definitions

1775.5 Source of funds

1775.6 Allocation of funds

1775.7 Eligibility

1775.8 Purpose

1775.9 \[Reserved\]

1775.10 Limitations

1775.11 Equal opportunity requirements

1775.12 Environmental requirements

1775.13 Preapplications

1775.14 Priority

1775.15 \[Reserved\]

1775.16 Application processing

1775.17 \[Reserved\]

1775.18 Grant approval and obligation of funds

1775.19 Fidelity bond

1775.20 - 1775.21 \[Reserved\]

1775.22 Fund disbursement

1775.23 Grant cancellation or major changes

1775.24 Reporting

1775.25 Audit

1775.26 Grant Agreement

1775.27 Grant servicing

1775.28 Delegation of authority

1775.29 - 1775.99 \[Reserved\]

1775.100 OMB control number

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 16 U.S.C. 1005.

PART 1775 - Technical Assistance and Training Grants

§1775.1 [General]{.underline}.

This part sets forth the policies and procedures for making Technical
Assistance grants. Grants for technical assistance and training for
water and waste disposal facilities are authorized under Section
306(a)(16)(A) of the Consolidated Farm and Rural Development Act,
(CONACT), (7 U.S.C. 1926(a)), as amended. Grants for solid waste
management are authorized under Section 310B of the CONACT, (7 U.S.C.
1932), as amended. Any processing or servicing activity conducted
pursuant to this part involving authorized assistance to Agency
employees, members of their families, known close relatives, or business
or close personal associates, is subject to the provisions of subpart D
of part 1900. Applicants for this assistance are required to identify
any known relationship or association with an Agency employee.

§1775.2 \[Reserved\]

§1775.3 [Objectives]{.underline}.

\(a\) The objectives of the Technical Assistance and Training Grant
Program are to:

\(1\) Identify and evaluate solutions to water and waste disposal
problems in rural areas.

\(2\) Assist applicants in preparing applications for water and waste
grants made in accordance with part 1780 of this chapter.

\(3\) Improve operation and maintenance of existing water and waste
disposal facilities in rural areas.

\(b\) The objectives of the Solid Waste Management Grant Program are to:

\(1\) Reduce or eliminate pollution of water resources.

\(2\) Improve planning and management of solid waste sites.

§1775.4 [Definitions]{.underline}.

[Association]{.underline} - An entity, including a small city or town,
that is eligible for Rural Utilities Service (RUS) water and waste
financial assistance in accordance with §1780.7 of part 1780 of this
chapter.

[Grantee]{.underline} - An entity with whom The Agency has entered into
a grant agreement under this program to provide technical assistance
and/or training to associations as defined in this section.

[Low Income]{.underline} - Median household income below the poverty
line for a family of four as defined in Section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2)), or below 80 percent of the
Statewide nonmetropolitan median household income.

[Regional]{.underline} - For purposes of the Solid Waste Management
grant program, as implemented through this part, regional is defined as
any multi-jurisdictional area including multi-State or any
multi-jurisdictional area within a State.

[Rural area]{.underline} - For water and waste disposal facilities the
terms \"rural\" or \"rural area\" will not include any area in a city or
town with population in excess of 10,000 inhabitants according to the
latest decennial census of the United States.

[State]{.underline} - Any of the fifty States, the Commonwealth of
Puerto Rico, the Western Pacific Territories, Marshall Islands,
Federated States of Micronesia, Republic of Palau, and the U.S. Virgin
Islands.

[Statewide nonmetropolitan median household income]{.underline} --
Median household income of the State's nonmetropolitan counties and
portions of metropolitan counties outside of cities, towns or places of
50,000 or more population.

§1775.5 [Source of funds]{.underline}.

Technical Assistance and Training grants awarded will be made from not
less than one (1) percent or, at the discretion of the Agency
Administrator, not more than three (3) percent of any appropriations for
grants under Section 306(a)(2) of the CONACT, (7 U.S.C. 1926(a)).
Technical Assistance and Training grant funds not obligated by September
1 of each fiscal year will be used for water and waste grants made in
accordance with part 1780 of this chapter. This section does not apply
to Solid Waste Management grants.

§1775.6 Allocation of funds.

Control of Technical Assistance and Training grant and Solid Waste
Management grant funds will be retained in the National office and
allocated on a project case basis. These funds are not available for
obligation by States.

§1775.7 [Eligibility]{.underline}.

\(a\) Entities eligible for Technical Assistance and Training (TAT)
grants are private nonprofit organizations that have been granted tax
exempt status by the Internal Revenue Service (IRS) of the United
States.

\(b\) Entities eligible for Solid Waste Management (SWM) grants are
nonprofit organizations, including:

\(1\) private nonprofit organizations that have been granted tax exempt
status by the IRS; and

\(2\) public bodies including local governmental-based
multi-jurisdictional organizations.

\(c\) Applicants for either TAT or SWM grants must also have the proven
ability, background, experience, legal authority, and actual capacity to
provide technical assistance and/or training on a regional basis to
associations as provided in §1775.3 of this part.

§1775.8 [Purpose]{.underline}.

\(a\) Technical Assistance and/or Training Grants may be used to:

\(1\) Identify and evaluate solutions to water problems of associations
in rural areas relating to:

\(i\) Source.

\(ii\) Storage.

\(iii\) Treatment.

\(iv\) Distribution.

\(2\) Identify and evaluate solutions to waste problems of associations
in rural areas relating to:

\(i\) Collection.

\(ii\) Treatment.

\(iii\) Disposal.

\(3\) Assist associations that have filed a preapplication with the
Agency in the preparation of water and/or waste loan and/or grant
applications.

\(4\) Provide training to association personnel that will improve the
management, operation and maintenance of water and waste disposal
facilities.

\(5\) To pay the expenses associated with providing the technical
assistance and/or training authorized in paragraphs (a)(1) through (4)
of this section.

\(b\) Solid Waste Management grants may be used to:

\(1\) Evaluate current landfill conditions to determine threats to water
resources.

\(2\) Provide technical assistance and/or training to enhance operator
skills in the maintenance and operation of active landfills.

\(3\) Provide technical assistance and/or training to help communities
reduce the solid waste stream.

\(4\) Provide technical assistance and/or training for operators of
landfills which are closed or will be closed in the near future with the
development/implementation of closure plans, future land use plans,
safety and maintenance planning, and closure scheduling within permit
requirements.

§1775.9 \[Reserved\]

§1775.10 [Limitations]{.underline}.

Grant funds may not be used to:

\(a\) Recruit applications for the Agency\'s water and waste loan and/or
any loan and/or grant program.

\(b\) Duplicate current services, replacement or substitution of support
previously provided such as those performed by an association's
consultant in developing a project.

\(c\) Fund political activities.

\(d\) Pay for capital assets, the purchase of real estate or vehicles,
improve and renovate office space, or repair and maintain
privately-owned property.

\(e\) Pay for construction or operation and maintenance costs.

\(f\) Pay costs incurred prior to the effective date of grants made
under this part.

\(g\) Pay for technical assistance as defined in this subpart which
duplicates assistance provided to implement an action plan funded by
Forest Service (FS) under the National Forest-Dependent Rural
Communities Economic Diversification Act (7 U.S.C. 6601 note) for 5
continuous years from the date of grant approval by the FS. To avoid
duplicate assistance, the grantee shall coordinate with the FS and RUS
to ascertain if a grant has been made in a substantially similar
geographical or defined local area in a State for technical assistance
under the above program. The grantee will provide documentation to FS
and RUS regarding the contact with each agency. Under its program, the
FS assists rural communities dependent upon national forest resources by
establishing rural forestry and economic diversification action teams
which prepare action plans. Action plans are intended to provide
opportunities to promote economic diversification and enhance local
economies dependent upon national forest resources.

§1775.11 [Equal opportunity requirements]{.underline}.

The policies and regulations contained in subpart E of part 1901 of this
title apply to grants made under this part.

§1775.12 [Environmental requirements]{.underline}.

The policies and regulations contained in subpart G of part 1940 of this
title apply to grants made for the purposes in §1775.8.

§1775.13 [Preapplications]{.underline}.

\(a\) Applicants will file an original and one copy of SF-424.1,
\"Application for Federal Assistance (For Non-construction),\" with the
appropriate Agency office between October 1 and December 31 each fiscal
year. This form is available in all Agency offices. Applicants proposing
to provide technical assistance and/or training in only one State will
apply through the appropriate State Office. The State Office will review
and forward preapplications, with their recommendations, within seven
working days to the National Office, Attention: Water and Waste.
Applicants providing technical assistance and/or training in more than
one State will forward the preapplication to the Assistant
Administrator, Water and Waste, Rural Utilities Service, Washington, DC
20250. Preapplications for Solid Waste Management grants that cannot be
funded in the fiscal year received will not be retained for
consideration for funding in the following fiscal year and will be
handled as outlined in paragraph g of this section.

\(b\) All preapplications shall be accompanied by:

\(1\) Evidence of applicant\'s legal existence and authority in the form
of certified copies of organizational documents and a certified list of
directors and officers with their respective terms.

\(2\) Evidence tax exempt status from the Internal Revenue Service.

\(3\) Brief written narrative which includes items such as:

\(i\) The proposed service(s) to be provided, including the benefits of
the technical assistance and/or training.

\(ii\) Area to be served.

\(iii\) Name of association(s) or type of association(s) that will be
served.

\(iv\) Median household income of the population to be served by each
association(s).

\(v\) Grantee\'s experience, including experience of key staff members
and person(s) providing the technical assistance and/or training.

\(vi\) The number of months duration of the project or service and the
estimated time it will take from grant approval to beginning of service.

\(vii\) Method used to select the association(s) that will receive the
service.

\(viii\) Brief description of how the service will be provided, such as,
through currently employed personnel or some other method.

\(ix\) Method to be used for delivery of the service, including
personnel to be utilized and tasks to be contracted, if any.

\(4\) Latest financial information to show the organization\'s financial
capacity to carry out the proposed work. As a minimum, the information
should include a balance sheet and an income statement. A current audit
report is preferred.

\(5\) Estimated breakdown of costs including those to be funded by
grantee as well as other sources.

\(6\) Budget and accounting system in place or proposed.

\(7\) Evaluation method to determine if objective(s) of the proposed
activity is being accomplished.

\(c\) Upon receipt of a preapplication, the National Office will:

\(1\) Review and evaluate the preapplication and accompanying documents;

\(2\) Request from the Office of General Counsel (OGC), a legal
determination of applicant\'s legal existence and authority to provide
technical assistance and/or training. The legal opinion will be obtained
from the Regional Attorney servicing the area where the applicant\'s
headquarters is located; and

\(3\) Normally, respond to the applicant within 45 days after December
31 of each year using Form AD-622, \"Notice of Preapplication Review
Action,\" indicating the action taken on the preapplication.

\(d\) Applicants whose preapplications are found to be ineligible will
be given notice by use of Form AD-622 and advised of their appeal rights
under subpart B of part 1900.

\(e\) Applicants who are eligible, but do not have the priority
necessary for further consideration will be notified with Form AD-622,
which includes the following statements:

\"Your proposal cannot be funded within the available funds.\"

\"You are advised against incurring obligations which cannot be
fulfilled without Agency funds.\"

\(f\) Applicants that are eligible for funding within the available
funds will be provided forms and instructions for filing a complete
application. Applicants should be advised against incurring obligations
which cannot be fulfilled without Agency funds.

\(g\) Applicants who have filed preapplications for solid waste
management grant funds that cannot be funded within the available funds
will be notified, using Form AD-622, that their preapplication will not
be retained. They will also be notified that they may file a new
preapplication when funds again become available using the following
statement:

\"If the Agency receives funding for the program in FY \_\_, you may
file a new preapplication on or after October 1, 19\_\_.\"

§1775.14 [Priority]{.underline}.

\(a\) The preapplication and supporting information will be used to
determine the applicant\'s priority for available funds for the
Technical Assistance and Training Grant program. The following specific
criteria will be considered in the competitive selection of Technical
Assistance and Training Grant recipients:

\(1\) Applicant\'s demonstrated capability and past performance in
providing technical assistance and/or training to rural associations.

\(2\) The extent to which the population of the associations served have
low income.

\(3\) Applicant\'s financial and if applicable, in-kind resource that
will maximize use of technical assistance and/or training funds for
direct staffing of activities that are delivered to the associations.

\(4\) The extent to which the project will be cost effective, including
but not limited to the ratio of proposed personnel to the cost of the
project, the cost per associations served by the project, and the
expected benefits from the project.

\(5\) How well the proposal coincides with the objectives of the
Agency\'s Water and Waste program authorized in part 1780 of this
chapter.

\(6\) Applicants proposing to serve multi-state, regional, or nationwide
areas.

\(7\) Applicants whose timeframe for completion of the technical
assistance and/or training grant project is 12 months or less.

\(b\) Preapplications received from local governmental-based,
multi-jurisdictional organizations for the SWM grant program will be
given priority within the available funds.

§1775.15 \[Reserved\]

§1775.16 [Application processing]{.underline}.

\(a\) Upon notification on Form AD-622 that the applicant is eligible
for funding, the following will be submitted to the National Office by
the applicant;

\(1\) SF-424.1.

\(2\) Proposed scope of work detailing the training and/or technical
assistance to be accomplished and timeframes for completion of each
task.

\(3\) Proposed budget.

\(4\) Other requested information needed by the Agency to make a grant
award determination.

\(b\) The following forms and documents will be part of the grant
docket:

\(1\) Form RD 400-1, \"Equal Opportunity Agreement.\"

\(2\) Form RD 400-4, \"Assurance Agreement.\"

\(3\) Grant Agreement signed by the applicant.

\(4\) Scope of work prepared by the applicant.

\(5\) Form RD 1940-1, \"Request for Obligation of Funds.\"

\(c\) If the applicant fails to submit the application and related
material by the date shown on Form AD-622 (normally 30 days from the
date of Form AD-622), the Agency may discontinue consideration of the
application.

§1775.17 \[Reserved\]

§1775.18 [Grant approval and obligation of funds]{.underline}.

\(a\) The National Office will review the application and other
documents to determine whether the proposal complies with this part.

\(b\) All grants made under this part will be approved and obligated by
the Agency Administrator or designee.

\(c\) The obligation of funds will be handled in accordance with part
1780 of this chapter.

\(d\) An executed copy of the Grant Agreement and scope of work will be
sent to the applicant on the obligation date, along with a copy of Form
RD 1940-1. The Agency will retain the executed original of the Grant
Agreement. The grant will be considered closed on the obligation date.

\(e\) If the grant is not approved, the applicant will be notified in
writing of the reason(s) for rejection. The notification to the
applicant will state that a review of this decision by the Agency may be
requested by the applicant under subpart B of part 1900.

§1775.19 [Fidelity bond]{.underline}.

Prior to the advancing of funds, the grantee will provide fidelity bond
coverage for the positions of persons entrusted with the receipt and
disbursement of its funds and the custody of valuable property. The
amount of the bond will be at least equal to the maximum amount of
monies that the grantee will have on hand at any one time for technical
assistance and/or training provided in accordance with the Grant
Agreement. Unless prohibited by State Law, the United States, acting
through the Agency, will be named as co-obligee in the bond. The bond
must be obtained from a company listed in Department of Treasury
Circular 570, as amended. Form RD 440-24, \"Position Fidelity Schedule
Bond Declarations,\" may be used. A certified power-of-attorney with
effective date will be attached to the bond.

§§1775.20 - 1775.21 \[Reserved\]

§1775.22 [Fund disbursement]{.underline}.

Grantees will be reimbursed as follows:

\(a\) Standard Form (SF) 270, \"Request for Advance or Reimbursement,\"
will be completed by the applicant and submitted to the National Office
not more frequently than monthly.

\(b\) Upon receipt of a properly completed SF 270, the funds will be
requested through the field office terminal system. Ordinarily, payment
will be made within 30 days after receipt of a proper request for
reimbursement.

\(c\) Grantees are encouraged to use minority banks (a bank which is
owned by at least 50 percent minority group members) for the deposit and
disbursement of funds. A list of minority owned banks can be obtained
from the Office of Minority Business Enterprise, Department of Commerce,
Washington, DC 20230.

§1775.23 [Grant cancellation or major changes]{.underline}.

If it is determined that a project will not be funded or if major
changes in the scope of the project are made after release of the
approval announcement, the Administrator will notify the Director of
Legislative Affairs and Public Information Staff (LAPIS) giving the
reasons for such action. In the case of a grant cancellation, Form RD
1940-10, \"Cancellation of U.S. Treasury Check and/or Obligation,\" will
not be submitted to the Finance Office until 5 working days after
notifying the Director of LAPIS, and grant obligation cancellations will
not be submitted to the National Office until 5 working days after
notifying the Director of LAPIS.

§1775.24 [Reporting]{.underline}.

Standard Form (SF) 269, \"Financial Status Report,\" SF 272, \"Federal
Cash Transactions Report,\" and a project performance activity report
will be required of all grantees on a quarterly basis. A final project
performance report will be required with the last SF 269. The final
report may serve as the last quarterly report. Grantees shall constantly
monitor performance to ensure that time schedules are being met,
projected work by time periods is being accomplished, and other
performance objectives are being achieved. All multi-state, regional,
and nationwide grantees are to submit an original of each report to the
National Office. Grantees serving only one State are to submit an
original of each report to the State Program Official. The State Program
Official will review and forward to the National Office the report with
comments. The project performance reports shall include, but not be
limited to, the following:

\(a\) A comparison of actual accomplishments to the objectives
established for that period;

\(b\) Reasons why established objectives were not met;

\(c\) Problems, delays, or adverse conditions which will affect
attainment of overall project objectives, prevent meeting time schedules
or objectives, or preclude the attainment of particular project work
elements during established time periods. This disclosure shall be
accompanied by a statement of the action taken or planned to resolve the
situation; and

\(d\) Objectives and timetable established for the next reporting
period.

§1775.25 [Audit]{.underline}.

The grantee will provide an audit report prepared in accordance with
§1780.47 of part 1780 of this chapter within 90 days after project
completion.

§1775.26 [Grant Agreement]{.underline}.

RUS Bulletin 1775-1 is a Grant Agreement which sets forth the procedures
for making and servicing grants made under this part. Bulletins,
instructions and forms are for administering grants made under this part
and are available from any USDA/Rural Development office or the Rural
Utilities Service, United States Department of Agriculture, Washington,
D.C. 20250-1500.

§1775.27 [Grant servicing]{.underline}.

Grants will be serviced in accordance with the grant agreement and
subpart E of part 1951. Subpart B of part 1900 will be followed when
grants are terminated for cause.

§1775.28 [Delegation of authority]{.underline}.

The authority under this part is redelegated to the Assistant
Administrator, Water and Waste, except for the discretionary authority
contained in §1775.5 of this part. The Assistant Administrator, Water
and Waste may redelegate the authority in this section.

§§1775.29 - 1775.99 \[Reserved\]

§1775.100 [OMB control number]{.underline}.

The collection of information requirements contained in this part have
been approved by the Office of Management and Budget and have been
assigned OMB control number 0575-0123. Public reporting for this
collection of information is estimated to vary from 15 minutes to 4
hours per response, with an average of 1 hour per response including
time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing
the collection of information. Send comments regarding this burden
estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to Department of
Agriculture, Clearance Officer, OIRM, Room 404-W, Washington, D.C.
20250; and to the Office of Management and Budget, Paperwork Reduction
Project (OMB# 0575-0123), Washington, D.C. 20503.

## 

## Grant Agreement

## 

## Technical Assistance

## 

## and Training

This agreement is between
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(name),\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
(address), (Grantee) and the United States of America acting through the
Rural Utilities Service (Grantor or Agency). Grantee has determined to
undertake certain Technical Assistance and/or Training at an estimated
cost of \$ \_\_\_\_\_\_\_\_\_ and has duly authorized such activity.
Grantee shall finance \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ of the costs
through cash and in-kind contributions. The Grantor agrees to grant to
Grantee a sum not to exceed \$\_\_\_\_\_\_\_\_\_\_\_\_\_\_ subject to
the terms and conditions established by the Grantor; provided, however,
that the proportionate share of any grant funds actually advanced and
not needed for grant purposes shall be returned immediately to the
Grantor. The Grantor may terminate the grant in whole, or in part, at
any time before the date of completion, whenever it is determined that
the Grantee has failed to comply with the conditions of the grant. In
consideration of said grant by Grantor to Grantee, to be made pursuant
to Section 306 (a)(16)(A) of the Consolidated Farm and Rural Development
Act (7 USC 1926 (a)) for the purpose of defraying technical assistance
and/or training costs as permitted by applicable Agency regulations:

Part A

Grantor and Grantee agree:

1\. This agreement shall be effective when executed by both parties.

2\. The scope of work described by the applicant in Exhibit 1 shall be
completed within \_\_\_\_\_\_\_\_\_\_ days from the date of this
agreement.

3\. Use of grant funds for travel which is determined as being necessary
to the program for which the grant is established may be subject to the
travel policies of the Grantee institution if they are uniformly applied
regardless of the source of funds in determining the amounts and types
of reimbursable travel expenses of Grantee staff and consultants. Where
the Grantee institution does not have such specific policies uniformly
applied, the Federal Travel Regulations shall apply in determining the
amount charged to the grant.

The information collected through the grant agreement is required to
obtain a Technical Assistance and/or Training grant and is used to
determine that the grant funds are used for authorized program purposes.

Grantee may purchase furniture and office equipment only if specifically
approved in the scope of work. Approval will be given only when Grantee
demonstrates that purchase is necessary. Commercial purchase under these
circumstances will be approved only after consideration of Federal
supply sources.

\(a\) Expenses and Purchases Excluded:

\(i\) In no event shall the Grantee expend or request reimbursement from
Federal-share funds for obligations entered into or for costs incurred
or accrued prior to the effective date of this grant.

\(ii\) Funds budgeted under this grant may not be used for entertainment
expenses or to fund political activities.

\(iii\) Funds budgeted under this grant may not be used to pay for
capital assets, the purchase of real estate or vehicles, improve or
renovate office space, or repair and maintain privately-owned property.

\(iv\) Recruit applications for the Agency\'s water and waste loan
and/or grant program.

\(v\) Duplicate current services, replacement, or substitution of
support previously provided.

\(b\) Grant funds shall not be used to replace any financial support
previously provided for or assured from any other source. The Grantee
agrees that the general level of expenditure by the Grantee for the
benefit of program area and/or program covered by this agreement shall
be maintained and not reduced as a result of the Federal share funds
received under this grant.

4\. Grant funds will be disbursed by the Agency on a reimbursement basis
not to exceed one advance every 30 days. The financial management system
of the recipient organization shall provide for effective control over
and accountability for all funds, property and other assets.

\(a\) As needed, but not more frequently than once every 30 days, an
original and one copy of Standard Form (SF) 270, \"Request for Advance
or Reimbursement\" may be submitted to the Agency.

\(b\) Grantee shall provide satisfactory evidence to the Agency that all
officers of Grantee organization authorized to receive and/or disburse
Federal funds are covered by such bonding and/or insurance requirements
as are normally required by the Grantee.

\(c\) Where the Grantee shall have claimed credit for
contributions-in-kind to the total cost of allowable expenses, the
evaluation of such contributions-in-kind shall be subject to
reevaluation by the Grantor at any time, and any deficiency so
determined by the Grantor shall be compensated by supplemental
contributions by the Grantee as a condition for further disbursements by
the Grantor. Specific procedures for establishing the value of in-kind
contributions from third parties established in OMB Circular A-110 will
govern such an evaluation. Principles for determining cost are set forth
in OMB Circular A-122 and will be used in cost evaluation.

\(d\) If for any reason grant funds are invested, income earned on such
investments shall be identified as interest income on grant funds and
forwarded to the Finance Office, Rural Economic and Community
Development (RECD), St. Louis, Missouri.

5\. The Grantee will submit Performance and Financial reports as
indicated below:

\(a\) Quarterly, an original and one copy of SF 269, \"Financial Status
Report,\" SF 272, \"Federal Cash Transactions Report,\" (due 30 calendar
days after end of quarter) and a Project Performance report according to
the schedule below:

Period Date Due

\(b\) Final, an original and 1 copy of SF 269, and a Project Performance
report (due 90 calendar days after end of last quarter) according to the
schedule below:

Due Date

Note: Final reports may serve as the last quarterly reports.

\(c\) The original and 1 copy of reports and forms are to be submitted
to the Assistant Administrator, Water and Waste, Rural Utilities
Service, Washington, D.C. 20250.

6\. The budget covered by this agreement is:

\(a\)

  ------------------------ ----------------------------------------------
  Federal Contribution     

  Grantee Contribution:    

  Cash                     

  In-Kind                  

  TOTAL                    
  ------------------------ ----------------------------------------------

\(b\) Budget.

  ------------ ------------- --------- ------------ ------ ------------- --------- ------- ------------
  Budget                     Federal                       Non-Federal             Total   
  Categories                 Funds                         Share                           

               Direct                               Cash                 In-Kind           
               Charges                                                                     

  1            Personnel                                                                   

  2            Fringe                                                                      
               benefits                                                                    

  3            Travel                                                                      

  4            Equipment                                                                   

  5            Supplies                                                                    

  6            Contractual                                                                 

  7            Other                                                                       

               Total Direct                                                                
               Charges                                                                     

               Total                                                                       
  ------------ ------------- --------- ------------ ------ ------------- --------- ------- ------------

\(c\) In accordance with OMB Circular A-122, compensation for employees
will be considered reasonable to the extent that such compensation is
consistent with that paid for similar work in the organization's other
activities or is comparable to that paid for similar work in the labor
markets in which the organization completed for the employees involved.

\(d\) In accordance with OMB Circular A-110, Attachment J, transfers
among direct cost budget categories of more than 5 percent of the total
budget must have prior written approval by the Assistant Administrator,
Water and Waste, Rural Utilities Service.

7\. Grantee responsibility.

\(a\) The scope of work is described in the attachment to this Bulletin.
The Grantee accepts responsibility for providing technical assistance
and/or establishing and implementing a training program as set forth in
scope of work. The Grantee shall:

\(i\) Identify and evaluate solutions to water and waste disposal
problems in rural areas.

\(ii\) Provide technical assistance and/or training to improve operation
and maintenance of water and waste disposal facilities in rural areas.

\(iii\) Assist rural communities that have decided to submit an
application for the Agency\'s Water and Waste Disposal grant program in
preparing such application.

\(iv\) Provide continuing information to the Agency on the status of
Grantee programs, projects, related activities, and problems.

\(b\) The Grantee shall inform the Grantor as soon as the following
types of conditions become known:

\(i\) Problems, delays, or adverse conditions which materially affect
the ability to attain program objectives, prevent the meeting of time
schedules or goals, or preclude the attainment of project work units by
established time periods. This disclosure shall be accompanied by a
statement of the action taken or contemplated, and any Grantor
assistance needed to resolve the situation.

\(ii\) Favorable developments or events which enable meeting time
schedules and goals sooner than anticipated or producing more work units
than originally projected.

Part B

Grantee agrees:

1\. To comply with property management standards established by
Attachment N of OMB Circular A-110 for expendable and nonexpendable
personal property. \"Personal property\" means property of any kind
except real property. It may be tangible\--having physical
existence\--or intangible\--having no physical existence, such as
patents, inventions, and copyrights. \"Nonexpendable personal property\"
means tangible personal property having a useful life of more than one
year and an acquisition cost of \$300 or more per unit. A Grantee may
use its own definition of nonexpendable personal property provided that
such definition would at least include all tangible personal property as
defined above. \"Expendable personal property\" refers to all tangible
personal property other than nonexpendable property. When nonexpendable
tangible property is acquired by a Grantee with project funds, title
shall not be taken by the Federal Government but shall be vested in the
Grantee subject to the following conditions:

\(a\) Right to transfer title. For items of nonexpendable personal
property having a unit acquisition cost of \$1,000 or more, The Agency
may reserve the right to transfer the title to the Federal Government or
to a third party named by the Federal Government when such third party
is otherwise eligible under existing statutes. Such reservation shall be
subject to the following standards:

\(i\) The property shall be appropriately identified in the grant or
otherwise made known to the Grantee in writing.

\(ii\) The Agency shall issue disposition instructions within 120
calendar days after the end of the Federal support of the project for
which it was acquired. If the Agency fails to issue disposition
instructions within the 120 calendar day period, the Grantee shall apply
the standards of Part B 1. (b) and (c) of this bulletin.

\(iii\) When the Agency exercises its right to take title, the personal
property shall be subject to the provisions for federally owned
nonexpendable property discussed in Part B 1. (b) and (c) of this
bulletin.

\(iv\) When title is transferred either to the Federal Government or to
a third party and the Grantee is instructed to ship the property
elsewhere, the Grantee shall be reimbursed by the benefiting Federal
agency with an amount which is computed by applying the percentage of
the Grantee participation in the cost of the original grant project or
program to the current fair market value of the property, plus any
reasonable shipping or interim storage costs incurred.

\(b\) Use of other tangible nonexpendable property for which the Grantee
has title.

\(i\) The Grantee shall use the property in the project or program for
which it was acquired as long as needed, whether or not the project or
program continues to be supported by Federal funds. When it is no longer
needed for the original project or program, the Grantee shall use the
property in connection with its other Federally sponsored activities, in
the following order of priority:

\(1\) Activities sponsored by the Agency.

\(2\) Activities sponsored by other Federal agencies.

\(ii\) Shared use. During the time that nonexpendable personal property
is held for use on the project or program for which it was acquired, the
Grantee shall make it available for use on other projects or programs if
such other use will not interfere with the work on the project or
program for which the property was originally acquired. First preference
for such other use shall be given to projects or programs sponsored by
the Agency second, preference shall be given to projects or programs
sponsored by other Federal agencies. If the property is owned by the
Federal Government, use on other activities not sponsored by the Federal
Government shall be permissible if authorized by the Agency. User
charges should be considered if appropriate.

\(c\) Disposition of other nonexpendable property. When the Grantee no
longer needs the property as provided in Part B 1. (b) of this bulletin,
the property may be used for other activities in accordance with the
following standards:

\(i\) Nonexpendable property with a unit acquisition cost of less than
\$1,000. The Grantee may use the property for other activities without
reimbursement to the Federal Government or sell the property and retain
the proceeds.

\(ii\) Nonexpendable personal property with a unit acquisition cost of
\$1,000 or more. The Grantee may retain the property for other use
provided that compensation is made to the Agency or its successor. The
amounts of compensation shall be computed by applying the percentage of
Federal participation in the cost of the original project or program to
current fair market value of the property. If the Grantee has no need
for the property and the property has further use value, the Grantee
shall request disposition instructions from the original Grantor agency.

\(iii\) The Agency shall determine whether the property can be used to
meet the agency\'s requirements. If no need exists within the Agency,
the General Services Administration\'s Federal Property Management
Regulations (FPMR) will be used by the Agency to determine whether a
need for the property exists in other Federal agencies. The Agency shall
issue instructions to the Grantee no later than 120 days after the
Grantee request and the following procedures shall govern:

\(1\) If so instructed or if disposition instructions are not issued
within 120 calendar days after the Grantee\'s request, the Grantee shall
sell the property and reimburse the Agency an amount computed by
applying to the original project or program. However, the Grantee shall
be permitted to deduct and retain from the Federal share \$100 or ten
percent of the proceeds, whichever is greater, for the Grantee\'s
selling and handling expenses.

\(2\) If the Grantee is instructed to dispose of the property other than
as described in Part B 1. (b) and (c) of this bulletin, the Grantee
shall be reimbursed by the Agency for such costs incurred in its
disposition.

\(3\) Property management standards for nonexpendable property. The
Grantee\'s property management standards for nonexpendable personal
property shall include the following procedural requirements:

\(d\) Property records shall be maintained accurately and shall include:

\(i\) A description of the property.

\(ii\) Manufacturer\'s serial number, model number, Federal stock
number, national stock number, or other identification number.

\(iii\) Sources of the property including grant or other agreement
number.

\(iv\) Whether title vests in the Grantee or the Federal Government.

\(v\) Acquisition date (or date received, if the property was furnished
by the Federal Government) and cost.

\(vi\) Percentage (at the end of the budget year) of Federal
participation in the cost of the project or program for which the
property was acquired. (Not applicable to property furnished by the
Federal Government.)

\(vii\) Location, use and condition of the property, and the date the
information was reported.

\(viii\) Unit acquisition cost.

\(ix\) Ultimate disposition data, including date of disposal and sales
price or the method used to determine current fair market value where a
Grantee compensates the Federal agency for its share.

\(e\) Property owned by the Federal Government must be marked to
indicate Federal ownership.

\(f\) A physical inventory of property shall be taken and the results
reconciled with the Property records at least once every two years. Any
differences between quantities determined by the physical inspection and
those shown in the accounting records shall be investigated to determine
the causes of the difference. The Grantee shall, in connection with the
inventory, verify the existence, current utilization, and continued need
for the property.

\(g\) A control system shall be in effect to ensure adequate safeguards
to prevent loss, damage, or theft of the property. Any loss; damage, or
the theft of nonexpendable property shall be investigated and fully
documented; if the property was owned by the Federal Government, the
Grantee shall promptly notify the Agency.

\(h\) Adequate maintenance procedures shall be implemented to keep the
property in good condition.

\(i\) Where the Grantee is authorized or required to sell the property,
proper sales procedures shall be established which would provide for
competition to the extent practicable and result in the highest possible
return.

\(j\) Expendable personal property shall vest in the grantee upon
acquisition. If there is a residual inventory of such property exceeding
\$1,000 in total aggregate fair market value, upon termination or
completion of the grant and if the property is not needed for any other
federally sponsored project or program, the Grantee shall retain the
property for use on nonfederally sponsored activities, or sell it, but
must in either case compensate the Federal Government for its share. The
amount of compensation shall be computed in the same manner as
nonexpendable personal property.

2\. To provide Financial Management Systems which will include:

\(a\) Accurate, current, and complete disclosure of the financial
results of each grant. Financial reporting will be on an accrual basis.

\(b\) Records which identify adequately the source and application of
funds for grant-supported activities. Those records shall contain
information pertaining to grant awards and authorizations, obligations,
unobligated balances, assets, liabilities, outlays, and income.

\(c\) Effective control over and accountability for all funds, property
and other assets. Grantees shall adequately safeguard all such assets
and shall assure that they are used solely for authorized purposes.

\(d\) Accounting records supported by source documentation.

3\. To retain financial records, supporting documents, statistical
records, and all other records pertinent to the grant for a period of at
least three years after grant closing except that the records shall be
retained beyond the three-year period if audit findings have not been
resolved. The Grantor and the Comptroller General of the United States,
or any of their duly authorized representatives, shall have access to
any books, documents, papers, and records of the Grantee which are
pertinent to the specific grant program for the purpose of making audit,
examination, excerpts, and transcripts.

4\. Provide an audit report prepared in accordance with OMB Circular
A-110, Attachment F, within 90 days after project completion.

5\. To account for and to return to Grantor interest earned on grant
funds pending their disbursement for program purposes. See Part A 4.(d)
of this bulletin.

6\. Not to encumber, transfer, or dispose of the property or any part
thereof, furnished by the Grantor or acquired wholly or in part with
Grantor funds without the written consent of the Grantor except as
provided in Part B 1 of this bulletin.

7\. To provide Grantor with such periodic reports as it may require of
Grantee operations by designated representative of the Grantor.

8\. To execute Form RD 400-1, \"Equal Opportunity Agreement,\" Form RD
400-4, \"Assurance Agreement,\" and to execute any other agreements
required by Grantor to implement the civil rights requirements.

9\. That, upon any default under its representations or agreements set
forth in this instrument, Grantee, at the option and demand of Grantor,
will to the extent legally permissible, repay to the Grantor forthwith
the original principal amount of the grant stated herein above, with
interest accruing thereon from the date of default at the market rate
for water and waste loan assistance in effect on the date hereof or at
the time the default occurred. Default by the Grantee will constitute
termination of the grant thereby causing cancellation of Federal
assistance under the grant. The provisions of this Grant Agreement may
be enforced by the Grantor, at its option and without regard to: (a)
prior waivers by it of previous defaults of Grantee, (b) by judicial
proceedings to require specific performance of the terms of this Grant
Agreement, (c) by such other proceedings in law or equity, in either
Federal or State courts, as may be deemed necessary by Grantor to assure
compliance with the provisions of this Grant Agreement and, (d) the laws
and regulations under which this grant is made.

10\. That no member of Congress shall be permitted any share or part of
this grant or any benefit that may arise therefrom; but this provision
shall not be construed to bar as a contractor under the Grant a private
nonprofit organization whose membership might include a member of
Congress.

11\. That all nonconfidential information resulting from its activities
shall be made available to the general public on an equal basis.

12\. That the purpose and scope of work for which this grant is made
shall not duplicate programs for which monies have been received, are
committed, or are applied for from other sources, public and private.

13\. That the Grantee shall relinquish any and all copyrights and/or
privileges to the materials developed under this grant, such material
being the sole property of the Federal Government. In the event anything
developed under this grant is published in whole or in part, the
material shall contain notice and be identified by language to the
following effect: \"The material is the result of tax-supported research
and as such is not copyrightable. It may be freely reprinted with the
customary crediting of the source.\"

14\. That the Grantee shall abide by the policies promulgated in OMB
Circular A-110, Attachment O, which provides standards for use by
Grantees in establishing procedures for the procurement of supplies,
equipment, and other services with Federal grant funds.

15\. To the following termination provisions:

\(a\) Termination for cause. The Grantor agency may terminate any grant
in whole, or in part, at any time before the date of completion,
wherever it is determined that the Grantee has failed to comply with the
conditions of the grant. The Grantor agency shall promptly notify the
Grantee in writing of the determination and the reasons for the
termination, together with the effective date. Grants can be terminated
for cause such as: failure to use funds for authorized purposes, poor
progress, untimely reports, no progress, and failure to properly account
for expenditures or property.

\(b\) Termination for convenience. The Grantor agency or Grantee may
terminate grants in whole, or in part, when both parties agree that the
continuation of the project would not produce beneficial results
commensurate with the further expenditure of funds. The two parties
shall agree upon the termination conditions, including the effective
date and, in the case of partial termination's, the portion to be
terminated. The Grantee shall not incur new obligations for the
terminated portion after the effective date, and shall cancel as many
outstanding obligations as possible. The Grantor agency shall allow full
credit to the Grantee for the Federal share of the noncancelable
obligations, properly incurred by the Grantee prior to termination.
Disposition of expandable and nonexpendable personal property will be in
accordance with the standards of Part. B 1. of this bulletin.

16\. As a condition of this grant or Cooperative Agreement, the
recipient assures and certifies that it is in compliance with and will
comply in the course of the Agreement with all applicable laws,
regulations, Executive Orders and other generally applicable
requirements, including those set out in 7 CFR 3015.205 b, which hereby
are incorporated in this Agreement by reference, and such statutory
provisions as are specifically set for herein.

Part C

Grantor Agrees:

1\. That it will assist Grantee, within available appropriations , with
such technical assistance as Grantor deems appropriate in planning the
project.

2\. That at its sole discretion, Grantor may at any time give any
consent, deferment, subordination, release, satisfaction, or termination
of any or all of Grantee\'s grant obligations, with or without valuable
consideration, upon such terms and conditions as Grantor may determine
to be (a) advisable to further the purposes of the grant or to protect
Grantor\'s financial interest therein, and (b) consistent with both the
statutory purposes of the grant and the limitations of the statutory
authority which it is made.

This agreement is subject to current Grantor regulations and any future
regulations not inconsistent with the express terms hereof.

Grantee on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
\_\_\_\_\_\_, has caused this agreement to be executed by its duly
authorized
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and
attested and its corporate seal affixed by its duly authorized
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,

Attest:

Grantee

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Title)

Grantor

UNITED STATES OF AMERICA

RURAL UTILITIES SERVICE

By\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(Title)