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                                           G U I D E L I N E S



                                         MULTI-PROGRAM SERVICES


                                             PROJECT GRANTS



                                              (Section 910)




















                     Regional Medical Programs Service
                     Health Services & Mental Health-Administration
                     Public Health Service     -                                                    i
                     Department of Health, Education, and Welfare



                     August 1970









                                           TABLE OF CONTENTS


                                                                                    PAGE
                       PURPOSES AND POLICIES FOR MULTI-PROGRAM
                       SERVICES PROJECT  GRANTS                                        I

                       A.  Background                                                  I
                       B.  Purposes                                                    1
                       C.  Types of Projects                                           2
                       D.  Eligible  Applicants                                        2
                       E.  Relationship to  the 55 Regional Medical Programs          @3


                       APPLICATION AND REVIEW PROCEDURES                               4

                       A.  Schedule for Submissions                                    4
                       B.  Review of Applications                                      4
                       C.  Preparation of Applications                                 4


                       GRANT ADMINISTRATION                                            5

                       A.  Grantee Responsibilities                                    5
                       B.  Funding                                                     8
                       C.  Project Changes                                             9
                       D.  Early Termination of Grant                                 10
                       E.  Publication and Publicity                                  11
                       F.  Costs                                                      11
                       G.  Unexpended  Balances                                       17
                       H.  Rebudgeting of Funds                                       17
                       I.  Accounting, Records, and Audit                             17
                       J.  Reports                                                    19
                       K.  Miscellaneous                                              19







                                   PROJECT GRANTS FOR  MULTI-PROGRAM  SERVICES


                         PURPOSES AND POLICIES FOR MULTI-PROGRAM SERVICES PROJECTS

                        A.   BACKGROUND

                             The addition of Section 910 to Public Law 90-574, the first
                             extension of Public Law 89-239 which established Regional
                             Medical Programs, provided a new grant  authority designed  to
                             promote interregional cooperation and  facilitate the  funding
                             of services needed by, or of substantial use  to, any two or
                             more Regional Medical Programs.
                             This authority was planned to be used for  grants to support
                             activities of interest and service to all of  the country's
                             Regional Medical Programs, as well as  activities designed  to
                             serve two or more geographically  related  Regions.
                             A significant aspect of this added Section  is  its provision of
                             authority to the Regional Medical Programs Serv:ice to make
                             grants to "any public or nonprofit private agency or institution,"
                             as well as to Regional Medical Programs as defined in the law,
                             for the purposes stated.

                        B.   PURPOSES
                             Section 910 authorizes an additional mechanism for carrying out
                             the broadly stated purposes of Regional Medical Programs as set
                             forth in the Public Health Service Act.
                             The more specific purposes for which this Multi-Program Services
                             authority is particularly appropriate are identified under the
                             following four headings:
                             1. To identify and develop special techniques and methodologies
                                for Regional Medical Program approaches to specially identified
                                national goals and regional objectives.
                             2. To provide services of highly specialized  individuals  and
                                institutions which do not and need not exist  within  every
                                Region, by making it possible for Regional Medical Programs
                                to join together in the more economical use of existing
                                resources, and to avoid unnecessary and costly duplication
                                of new facilities and services.




                           3.  To Droiriap fn@ f-i-.- +.r  nin  of personnel in special fields
                               wrlich are  essenti'al to  the  purposes  of  Regional  Medical
                               Programs, and in which the Supply of personnel is determin
                               to be critically short.                                       ed
                          4.   T  evaluate  programmatic  activities  of  Regional   Medical
                               LO
                               Programs common to many  Regions  and  of  critical  national
                               significance in order to provide Regions and RMPS with
                               measures for and of program progress and the efficacy
                               and impact of specific kinds of activities.
                          In addition to the projects  which  are  expected  to  develop  in
                          response to the  needs  and  priorities  of  neighboring  Regional
                          Medical Programs,  the  Regional  Medical  Programs  Service  will
                          also, from time to  time,  identify  areas  of  national  concern,
                          needs, and priorities. The  latter  group  may  also  be  developed
                          as project activities  by  appropriate  institutions  or  agencies,
                          or by an  individual  Regional  Medical  Program,  and  undertaken
                          as a service to  the  entire nation  through  the  55   operational
                          Regional Medical Programs.  All  Regional  Medical  Programs  aiid
                          other  potential  applicants will be kept apprised of these areas
                          of emphasis to  insure  that the  Multi-Program  Services   project
                          grant authority  of  Section 910 may be  as  effective  a  mechanism
                          as possible to  support  the plans and efforts of  each  of  the  55
                          operational Regions as well as the  goals  and  priorities  of  the
                          Department of Health, Education, and Welfare and Health Services
                          and Mental Health Administration.
                    C.    TYPES OF PROJECTS
                          Multi-Program Services activities will be considered in the
                          following two categories:
                              CATEGORY A      Projects arising from the initiative of,
                                              and designed to serve,  two  or  more  Regional
                                              Medical Programs.
                             CATEGORY B       Projects arising  from  the  initiative  of  a
                                              single agency and designed to serve the
                                              objectives of Regional Medical Programs
                                              nationally.
                   D.  ELIGIBLE APPLICANTS
                       Applications  for  Multi-Program  Services  project  grants  may   be
                       developed and submitted by any operational Regional Medical
                       Program; jointly by  several,  with  one  Program  designated  to  be


                   2






                            the official grantee; or bv any public or nonprofit private
                            agency or institution,which is judged to be qualified to
                            provide the service in question.

                       E.   REIATIONSHIP TO THE 55 REGIONAL MEDICAL PROGRAMS

                            Category A projects, designed to serve two or more Regions, must
                            be conjointly planned and developed with the active  participation
                            of the core staff of all of the Regional Medical Programs in the
                            Regions to be served. Their plans must be reviewed and  approved
                            by each of the Regional Advisory Groups before submission to
                            Regional Medical Programs Service.  The activity mus-t be consistent
                            with the general plan of each of the Regions involved as reflected
                            in its annual application for Anniversary Review and Award,  and
                            the relative priorities indicated in that application.

                            In addition to determining the Regional priority of the  service
                            to be obtained via a Multi-Program Services grant, each Regional
                            Medical Program involved must consider the relative merit of the
                            specific project and the competence and capacity of the  resources
                            it wi@-_ represent. It must be the most appropriate way to  obtain
                            the service which has been found to be "needed by or of substantial
                            use to. . .,Lhe Program making the application and the other Regional
                            Medical Programs involved."
                            Projects in Category B, proposed in response to a nationally
                            recognized need, will not require participation and approval  of
                            the core staff or Regional Advisory Group of any Regional  Medical
                            Program. However, all such projects will be designed to  meet  the
                            identified needs of all Programs, and applications will be strength-
                            ened by evidence of consultation with Regional Medical  Programs
                            personnel and advisors in both planning and evaluation of  project
                            activities.

                            A Multi-Program award made to a Regional Medical Program  acting
                            individually on behalf of a group of cooperating Regions  will
                            be made under the authority of Section 910 of the Law.  It  will
                            be administered separately from the funds awarded to  Regional
                            Medical Programs under the operational grant authority.  The
                            amount of the grant award, the total amount given to a  Region
                            serving as a grantee or the portion of the funds accruing to
                            cooperating Regions, will not be considered a part of  a  Region's
                            operational funding base.









                                                                                         3






                II.  APPLICATIO 'KT AND REVIEW PROCEDURES
                    A.  SCHEDULE FOR SUBMISSION OF APPLICATIONS AND ANNOUNCEMENTS OF AWARDS
                        Applications may be submitted at any time, but will be reviewed
                         four times each year on the following schedule:
                            CUTOFF DATE                    DATE OF NOTIFICATION  OF  AWARDS
                            December I                           March I
                            March I                              June 1
                            June 1                               September 1
                            September 1                          December I

                    B.  REVIEW OF APPLICATIONS
                        Each application will be reviewed for its individual merit as well
                        as for its relevance to the program needs it proposes to serve.  In
                        the case of projects designed and submitted by groups  of  Regional
                        Medical Programs, the relative importance of the activity  to  each
                        of the participating Regions will be carefully considered.
                        The final review and recommendations for approval will be  made  by
                        the National Advisory Council of the Regional  Medical  Programs
                        Service.  The consideration of the Council will be based on its
                        assessment of the projects; the relevance of the projects to the
                        purposes of Regional Medical Programs, in groups and nationally,
                        and to the objectives of the Health Services and  Mental  Health
                        Administration; and on the comments and findings of preliminary
                        reviewers.  Preliminary review will be developed in a number of
                        ways, depending on the kind of.project being reviewed  and  the
                        kinds of judgments required. These will  include  the  Regional
                        Medical Programs Review Committee; ad hoc panels of  experts  on
                        specific medical specialities and  health-related  disciplines;
                        and individual specialists both within and  without  government.
                        In addition, projects proposed in response to  national  Program
                        needs will also be reviewed by representative  Coordinators  and
                        other selected staff of the 55 operational Regional Medical
                        Programs.

                  C.    PREPARATION OF APPLICATIONS
                        A complete application will be-presented in two sections:
                        1.  Forms
                          Application form HSM-99-1 Rev. 7/70 is used  for  all  Multi-
                          Program Services project grants and may be obtained on


                   4








                                Bu',J'-ding, 560-u     Lane, Rockv@l-lie, Maryland 2CI85@@'.
                                Specific instructions for completion accompany  the  form.

                                A specific justification of the budget estimate  must  be
                                supplied and must include enough information to  support  the
                                amounts requested. In all requests for  support  beyond  one
                                year, the projected amounts for the subsequent  years  should
                                be estimated as realistically as possible on the  basis  of
                                the first year level, less  non-recurring  costs.  Increases
                                to provide program expansion, regular salary  increments  and
                                phasing of projects should be fully  explained.  The  budget
                                for the initial year of a project should  make  realistic
                                allowance for anticipated delays in recruiting  staff  for
                                the project.

                            2.  Narrative


                                The body of each application will consist  of a  narrative,
                                which provides the full justification for  the request  and
                                relates the proposal to the objectives of  Section 910  -
                                Title IX of the PHS Act.



                       GRANTS ADMINISTRATION


                       The following paragraphs set forth the  administrative  and  fiscal
                       policies which govern project grants for  Multi-Program  Services  as
                       authorized by Section 910. The grantee  is  held  responsible  for
                       administering the grant in accordance with the purposes of the award.
                       This imposes the obligation to expend funds in  accordance  with  this
                       statement, Title IX of the Public Health Service Act, the Regulations,
                       and the DHEW and HSMHA requirements.  The Policies  contained herein
                       pertain to Regional Medical Programs  Service  Multi-Program  Services
                       projects and are effective for all action  concerning  these  project
                       grants.  The basic Guidelines (Revised May 1968) for RMPS operational
                       awards with the implementation of Anniversary Review and Award remain
                       effective and may be referred to for background  and  general  infor-
                       mation concerning Regional Medical Programs.

                       A.  GRANTEE RESPONSIBILITIES


                           1.   General


                                The applicant, when applying for the  Multi-Program  Services
                                project grant, agrees to administer any ensuing  award  in
                                accordance with the governing HSMHA policies in  effect  at
                                the time of the award. A policy of the  grantee  prevails  if
                                it is more restrictive than the HSMHA policy, or  if  the





                                                                                          5








                                gra-@iLee lia-@ a policv not covered by a       policv.  If
                                it is an affiliated institution  that  does  not  have  an
                                officially stated or an  applicable  policy,  then  the  policy
                                of the  grantee  institution  prevails.  The  grantee  assumes
                                responsibility for fiscal, administrative, and program
                                management and fulfillment  of  all  special  conditions  which
                                may be prescribed for  the  conduct  of  the  project.  This
                                applies to both itself  and  to  any  affiliated  institution,
                                which in the case of Section 910 grants may be other
                                Regional Medical Programs.

                            2.  -Civil Rights

                                Multi-Program Services  project  grants  must  be  administered
                                in conformance with Title VI of  the  Civil  Rights  Act  of
                                1964; the regulation  (45CFR, Part 80) issued pursuant
                                thereto by the U.S.  Department  of  Health,  Education  and
                                Welfare; and the grantee's Assurance of Compliance
                                (Form HEW-441), on file with DHEW.

                                It is the responsibility of the grantee to insure that each
                                affiliated institution is  in  compliance  with  the  foregoing
                                and to maintain a copy of  the  form  which  insures  that
                                institution's compliance with Title VI  of  the  Act  and  the
                                Regulations.

                            3.  -Institutional Assurance Involving Human Subjects

                                An applicant for  a  Multi-Program  Services  project  grant
                                which  includes  investigation'involving  human  subjects  must
                                include an assurance that the institution conducting the
                                research has complied with the HSMHA policy concerning a
                                satisfactory institution-wide agreement on the use of human
                                subjects. It will be  the  responsibility  of  the  grantee  to
                                insure that affiliated  institutions  which  will  be  involved
                                in these investigations secure HSMHA approval and to provide
                                a copy of the approval  to  the  Regional  Medical  Programs
                                Service.


                            4.  Surveys and Questionnaires

                                Surveys or questionnaires arising  from  and  supported  by  a
                                Multi-Program  Services-project  grant  should  include  a
                                positive statement clearly  setting  forth  that  the  contents
                                are in no  way  the  responsibility  of  HSNM.  They  should
                                conform with Bureau of the Budget, Circular #A-40.







                            6








                            5.   Confidentialitv of Informa!7ion

                                 When Multi-Program Services project grant activities  involve
                                 obtaining information about or from individuals, the  grantee
                                 is responsible for ensuring that  such  personal  information
                                 is treated confidentially to protect the  individual's  right
                                 to privacy.

                            6.   Publications and Copyright

                                 Grantees and/or affiliated institutions may.publish materials
                                 relating to the grant without prior Regional Medical Programs
                                 Serv4@ce review. Any such materials shall be subject to  a
                                 royalty-free, non-exclusive, and irrevocable license  to  the
                                 Government to reproduce, translate, and publish them, and  to
                                 authorize others to do so.  (See Section E)


                            7.   Patents and Inventions

                                 .The Department of Health, Education and Welfare  Regulations
                                 (45 CFR, Subtitle A, Parts 6 and 8) provide that  all  inven-
                                 tions arising out of the activities assisted by HSMHA  grants
                                 must be promptly and fully reported to the Assistant Secretary
                                 for Health and Scientific Affairs, U.S. Department of Health,
                                 Education and Welfare, 330 Independence Avenue,  S.W.,  Wash-
                                 ington, D.C. 20201. They  shall  be  simultaneously  reported
                                 to any other Federal agency meeting the requirements of
                                 Executive Order 10096, as amended.

                                 A complete written disclosure of each invention in  the  form
                                 specified by the Assistant Secretary for Health and Scientific
                                 Affairs shall be made by the grantee promptly  after  con-
                                 ception or first actual reduction to practice,  and,  in  any
                                          ior to publication. Any process, art  or  method,
                                 event, pr
                                 machine manufacture or improvement  thereof,  may  constitute
                                 an invention if it is new and useful and would not have
                                 been obvious to a person having skill in the art to  which
                                 it relates.

                                 The grantee and the project director shall neither  have  nor
                                 make any commitments or obligations which conflict  with  the
                                 requirements of this- policy.

                                 The grantee must include a certification of invention
                                 (Form PHS-3945) with the submission of each continuation
                                 or renewal application whether or not an invention has
                                 occurred.  Where there are no inventions to report, a







                                                                                             7







                            single form PHS-394-" is all that is required for the  grantee
                            and for all affiliated institutions. Where  there  are  inven-
                            tions to report, a separate annual  invention  statement  must
                            be filed for each one.  A final invention statement and
                            certification must be submitted after termination  of  project
                            support.


                       8.   Conflict of Interest

                            Each grantee receiving Federal support is urged to have
                            written guides for staff members  (administrators,  professional,
                            or other project staff), which explain  the  conditions  under
                            which outside activities are proper, and which  require  notifi-
                            cation of such activities to a responsible  representative  of
                            the grantee.

                       9.   Wage Rates

                            Any laborer or mechanic employed by any contractor  or  sub-
                            contractor in th6 performance of work on any construction
                            aided by payments pursuant to any grant under  this  section
                            will be paid wages at rates not less than  those  prevailing
                            on similar construction in the locality as determined  by  the
                            Secretary of Labor in accordance with the  Davis-Bacon  Act,
                            as amended (40 U.S.C. 276a-276a-5); and the Secretary of
                            Labor shall have, with respect to the labor  standards  specified
                            in this paragraph, the authority and functions  set  forth  in
                            Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176;
                            5 U.S.C. 133z-15) and Section 2 of the Act of June  13,  1934,
                            as amended (40 U.S.C. 27c).


                   B.  FUNDING


                       When a Multi-Program Services project grant  is  approved  for  the
                       project period, which may be up  to three years in duration, funds
                       to support the project are awarded for each  budget  period,  normally
                       twelve months. The initial  award  reflects  the  determination  of
                       funds approved for the conduct of the project for  the  first  budget
                       period and the amounts recommended for future years,  if  any,  are
                       subject to the availability of  funds.  Funds  remaining  unobligated
                       at the end of any budget period may be requested for use in a
                       succeeding budget period.  (See  Section  G).  Continuation  grants
                       are subject to evidence of the satisfactory progres5  of  the  project
                       and to an appropriation of funds by Congress.

                       Funds for subsequent years within the approved  project  period  must
                       be requested in a continuation application  with  Progress  Report,
                       45 days in advance of the beginning date of the subsequent budget             4
                       period. The level of funding for the  ensuing  budget  period  will
                       be determined from a review of the continuation application,



                       8







                              would expedite achi-eveTrent oF the projec" objective, pro@-ided
                              such changes do not conf'Lict with R-NIPS policies.

                              Requests for substantial change in the approved scope of a
                              project must be submitted to Regional Medical Programs Service
                              for prior approval.  No substantial change can be made without
                              specific written approval from RMPS.

                          3.  Change of Director of Project

                              A change of Director of project or other key official requires
                              the written approval of Regional Medical Programs Service.  A
                              request for such a proposal change must be signed by an
                              authorized official of the grantee.

                          4.  Change of Grantee Organization

                              If for any reason the grantee  proposes to  relinquish  its
                              responsibility for a Multi-Program  Services  project grant
                              to another grantee institution, it  must  immediately notify
                              Regional Medical Programs Service.  The  new  grantee must
                              submit a grant application for the remainder  of  the program
                              period. The application should  include  the  reasons for
                              transferring the project and the probable  effect  of the move
                              on the project.  Administrative approval may be given by the
                              Regional Medical Programs Service to continue  the  project
                              with a new grantee.  Applications,  however,  that  reflect
                              major project changes will be referred to the National
                              Advisory Council on Regional Medical Programs  Service  for
                              recommendation.


                     D.  EARLY TERMINATION OF GRANT


                          1.  By the Grantee

                              A grant may be terminated or cancelled at any time  by  the
                              the grantee upon written notification-to the Regional Medical
                              Programs Service stating the reasons  for  termination.

                          2.  By Regional Medical Programs Service

                              A grant may be revoked ox terminated at any time within the
                              program period whenever it is determined that  the  grantee
                              has failed in a material respect to comply with  the  terms
                              and conditions of the grant.









                      10








                          E.  PUBLICATION AND PUBLICITY-


                               1.  Grantee Activities

                                   The work of Multi-Program Services project grants must be
                                   conducted in an atmosphere of complete openness with the
                                   public as well as all participants.  Therefore, publication
                                   and publicity are project functions.
                                   Regional Medical Programs Service approval is not required
                                   for publications or other materials produced by the project.
                                   For major publications, however, acknowledgement of Regional
                                   Medical Programs Service support should be made as follo@7s.-
                                   "This project was supported under Section 910 of the PHS Act,
                                   Grant No.         , awarded by Regional Medical Programs
                                   Service, Health Services and Mental Health Administration."
                                   Questionnaires used for surveys or studies must not be
                                   attributed to RSMHA.
                               2.  Release of Information by Regional Medical Programs Service
                                   Upon request, certain information relating to individual
                                   grant awards shall be released by the Regional Medical
                                   Programs Service to recognized information media, and, where
                                   appropriate, to an individual member of the public in accord-
                                   ance with the Public Information Act (P.L. 90-23) and DHEW
                                   implementing regulations, "Availability of Information to
                                   the Public Pursuant to P.L. 90-23.11


                          F.   COSTS
                               Expenditures must receive consistent treatment in the allocation
                               between direct and indirect costs through application of established
                               policies applicable to all work of the grantee o   rganization.  Funds
                               granted may be used only for purposes required to carry out the
                               approved project.  Circular A-21 of the Bureau of the Budget should
                               be used to the extent practical in determining allowable cos.ts
                               related to project grants for Multi-Program Services.

                               1.  Direct costs
                                   The list below includes allowable and unallowable expenditures
                                   most frequently encountered as direct costs in project grants.
                                   Determination as to-allowability of cost items not listed
                                   here should be referred to Regional Medical Programs Service.

                                   a.  Alterations and Renovations

                                       Allowable if in accord with Supplement 2 to basic
                                        Regional Medical Programs Service Guidelines









                             b     Bonding Costs


                                   Allowable


                              c.   Books and Periodicals


                                   Allowable


                              d.   Communications

                                   Unusual cost resulting from local and long distance
                                   telephone calls, telephone surveys, telegrams, postage,
                                   etc., necessary to the project are allowed provided
                                   such costs are not duplicated as indirect costs.

                               e.  Computer Time

                                   Allowable if required for the conduct of the project.

                               f.  Construction of New Buildings, Additions, or Extensions

                                   Not Allowable


                               g.  Consultant Fees
                                   Grant funds may be used to pay  consultant fees and
                                   supporting costssuch as travel and per them and payment
                                   for services related to the project.

                                   Consultants may be selected from both within and out-
                                   side the grantee or affiliated organization, providing
                                   that these services-are the most effective means of
                                   accomplishing a particular purpose.
                                   It is expected that the grantee organization will
                                   normally have their own policies with respect to
                                   consultant services, that those policies will apply
                                   to the use of consultants paid for by grant funds
                                   and that they will include, as a minimum, the standards
                                   for documentation described below.  However, in the
                                   absence of such policies, the following documentation
                                   in support of the rise of consultants must be provided:
                                   (1)  Statement of the services to be performed and               f
                                       evidence that they cannot be provided by payment
                                       of direct salaries to staff members of the grantee
                                        or affiliated institution;







                             12






                                     (2) Brief description of the process of selection
                                         oi the individuals most qualified  to  provide
                                         the required services;

                                     (3) Evidence that the fee is appropriate considering
                                         the qualifications of the individuals, the nature
                                         of the services performed, and in  the  amount
                                         normally paid for such services from  sources  other
                                         than Regional Medical Programs.
                                     As ageneral rule when services of a salaried staff
                                     member of the grantee or affiliated institution are  to'
                                     be provided full time for periods of two weeks or  more,
                                     on a regularly occurring basis throughout the year,
                                     the individual should be compensated on a part-time'
                                     salary basis rather than as a consultant.  Consultant
                                     fees, and supporting costs, may not be paid to full-
                                     time Federal employees regardless of their leave or
                                     pay status.

                                 h.  Contracts for Services


                                     Allowable

                                  i. Depreciation and Use Allowances

                                     Depreciation and/or use charges should usually be
                                     allocated to research and other activities  as  an
                                     indirect cost.


                                  j. Dues
                                     Allowable only by grantee institution when incurred
                                     because membership in professional organizations and
                                     societies is required to obtain  publications  necessary
                                     to the project

                                  k. Entertainment

                                     Not allowable for cost of amusement, social activities,
                                     entertainment or incidental costs related thereto.


                                  1. Equipment

                                     Allowable.  Rental and purchase of equipment may be
                                     charged to the grant.  When acquiring equipment
                                     consideration of the relative advantage  of  lease
                                     versus purchase should be considered.  Charges for
                                     equipment maintenance and repairs are allowable on
                                     equipment used on the project.



                                                                                           13








                          M.   E%nenses cf Polic-v P-oard cr '-orn-m-'
                                                                 Lttee

                               If it is the policy of the grantee to make reimbursement
                               to policy board members for out-of-pocket expenses, such
                               as travel and meals, these are allowable costs if
                               budgeted  and  approved.

                          n.   Federal Employees

                               Use of grant funds to  make payments to full-time Federal
                               employees are subject  to the  restrictions  listed  below.
                               These restrictions do  not apply to part-time.Federal
                               employees.

                               (1)  Consultant Fees

                                   Not allowable

                               (2) Salaries

                                   Allowable when a Federal employee is on leave
                                   without  pay from his agency or when reimbursement
                                   is in accordance  with  terms  mutually  acceptable  to
                                   his Federal agency and Regional Medical Programs
                                   Service.

                               (3) Travel

                                   Allowable only when an employee detailed under direct
                                   assistE.-.e is on leave without  pay  status  from  his
                                   Federal ager@-y and when travel is  essential  to  ful-
                                   fillment of his role-in the project.

                         .0.   Films


                               Costs of purchase or rent for use  in  connection  with  the
                               purposes of the project are allowable.  Costs of providing
                               public showing of films are not allowable.

                               Grant funds may be used to produce films that will be
                               used only in connection with  grant  supported  activities.
                               Such requests are subject to special approval by the
                               Department of Health, Education, and Welfare and
                               applicants are advised to consult Regional Medical
                               Programs Service before planning film production.

                         p.  Fringe Benefits

                               The grantee's share of fringe benefits is allowable to
                               the extent that such payments are made under formally


                     14






                                    establishes-' policies and consistently applied and
                                    LLnii:orr,,'iy c,-,aiged a@ a dire@z cost an-@ oi) @T
                                    rather than an estimated basis in proportion to the
                                    salaries charged to the grant.

                               q.   Honoraria

                                    Not allowable


                               r.   Insurance

                                    Allowable for premiums on hazard and other  liability
                                    insurance to cover personnel directly connected  with
                                    the project.  Also allowable for premiums on equipment,
                                    property, theft.

                               s.   Patient Care Costs

                                    The cost of providing care to patients is payable from
                                    grant funds only to the extent that such care is
                                    incident to research, training, or demonstration
                                    activities supported by the grant.  The calculation
                                    of a:rate of reimbursement will be according to
                                    established DHEW policies.


                               t.   Publication Cost

                                    Allowable when necessary to the project


                               U.   Recruitment Cost

                                    Allowable only for full-time employment on project
                                    including charges for want ads, transportation and
                                    other costs, if payment of such cost is normally made
                                    by the grantee regardless of source of funds.

                               v.   Rental of Space

                                    Allowable when charges are made in conformance with
                                    grantee policies and in the same manner when  similar
                                    charges are made to any account. Cost may not  be  in
                                    excess of comparable rentals in a particular locality
                                    and may not be cfiarged for space owned by the grantee.

                               W.   Salaries and Wa@S

                                    Allowable in proportion to the time or effort expended
                                    on the grant.  These costs must be in accordance with
                                    applicable institution policy.  Overtime pay is allowable




                                                                                       15





                                   for nor-Drofessional De-@sonre'L o-,ii-,7 at overt4r-,2 :ares
                                   or time spent on a project in excess of an individual's
                                   basic work week provided payment is made in accordance
                                   with institution policy; payment is not used to increase
                                   an individual's base salary or corresponding  benefits
                                   entitlements; and the individual's basic work week was
                                   devotd,d to the same project.
                                   Payroll distribution records, time and attendance records,
                                   or stipulatedsalary amounts as stated in grant agreements
                                   are required for personnel working on a project to sub-
                                   stantiate salaries charged@to the grant.
                              x.   Sub-granting
                                   Grantees may make grant funds available for participation
                                   in activities, but such action must be taken through an
                                   affiliation agreement or contract or'other written
                                   instrument which clearly indicates relationship or
                                   responsibilities. The grantee may not delegate  or
                                   transfer responsibilities for the use of grant funds
                                   to any other organizations for purposes over which the
                                   grantee institution cannot maintain scientific and
                                   financial responsibilities.

                             Y.       lies


                                 Allowable

                             z.  Training Activities
                                 Allowable (See supplement I to revised RMPS  Guidelines)
                            aa.  Travel

                                 Allowable for domestic travel when such travel is
                                 essential to successful progress of project including
                                 attendance at meetings. Per them  reimbursement  for
                                 travelers, personal transportation charges, and reimburse-
                                 ment for authorized use of personally owned  automobiles
                                 are chargeable to the grant.  First class travel
                                 accommodations shall not be used except in extenuating
                                 circumstances.  Automobile mileage must be in accordance
                                 with institution policies.
                                 Foreign travel must receive prior approval from Regional
                                 Medical Programs Service.




                                                                                              AL
                                                                                              @ u
                         16                                                                   lw








                                Indirect costs related to the conduct of a project grant
                                for multi-Program Services are reimbursable.  The same
                                policies apply as published in the January 16, 1970,News
                                Information, and Data release for operational RMPS awards.

                       G.   UNEXPENDED BALANCE
                            Funds not obligated in one budget period may be requested for
                            authorization in a continuation request if the request is
                            justified as follows:
                            1.  They are included as part of the budget of the continuation
                                grant application; and
                            2.  The expansion of the project beyond that upon which  the
                                commitment of funds was based is clearly justified in
                                terms of-the relevance of the expansion to the project
                                .as originally approved. Approval may require action  by
                                the National Advisory Council.

                       H.   REBUDGETING OF FUNDS
                            The grantee is permitted to transfer funds between budget
                            categories without prior Regional Medical Programs Service
                            approval subject to the following restrictions:
                            1.  Grant funds may not be used for any purpose contrary  to
                                the policies of RMPS, HSMHA, the grantee, or an  affiliated
                                institution.
                            2.  Prior approval is required for transfers from the  indirect
                                cost category to a direct cost budget category.
                            3.  A transfer that reflects a change in the scope of the
                                project.requires RMPS approval (See Section B).

                        I.  ACCOUNTING, RECORDS, AND AUDIT
                            1.  Accounting for funds will be in accordance with the grantee's
                                accounting practice based on generally accepted  principles
                                consistently.applied regardless of source of funds.  All
                                supporting records of project expenditures must be itemized
                                in sufficient detail to show the exact nature of expenditures.
                                Special grant accounts must be established for the Multi-
                                Program Servicesgrant.  The grantee institution is responsible
                                for any expenditure of funds by an affiliated  institution.



                                                                                           17








                        2   -Records

                            a.  Financial records including all documents to support
                                entries on the accounting record must be  kept  readily
                                available for examination by authorized  personnel.
                           b.   Records may be destroyed three years after the  end   of
                                the budget period if an audit  by or on behalf of the
                                Department has occurred in that time; but if one has
                                not occurred within three years, records must be
                                retained until audit or until five years  following-the
                                end of the budget period whichever is earlier.  In  all
                                cases records will be retained until resolution of  any
                                audit questions.

                           C.   Grant Related Income - The grantee is accountable to
                                the awarding agency for the Federal share of any  grant
                                related income.  Provision for anticipated income should
                                be included in the application.  Additionallyunanticipated
                                income must be accounted for and should be used to reduce
                                continuation requests to further the purpose for  which
                                the grant was made.
                                (1) Interest Earned on Grant Funds - Interest earned
                                    on grant funds shall be applied to the grant.
                                (2) Royalties and Profits - When the costs of publications
                                    or similar materials are provided from a  HSMHA
                                    grant, any royalties or profits up to the amount
                                    charged to the grant for publishing.or producing
                                    the materials shall be applied to the grant.
                                    At the termination@of each budget period all income
                                    must be returned to RMPS.
                          d.  Equipment - Inventory records  must be maintained by  the
                              grantee.  Title to equipment  purchased with grant  funds
                              resides in the grantee.  Accountability may be satisfied
                              after the termination of the grant as long as the equip-
                              ment is used to further the objectives of HSMHA; however,
                              Health Services and Mental Health Administration reserves
                              the right under unusual circumstances to  transfer  title
                              of equipment to Regional Medical Programs Service  or  to
                              another grantee.

                      3.  Audits

                          The Department of Health, Education, and Welfare follows the
                          generally accepted auditing practices in determining that
                          there is a proper accounting in use of grant funds.  Failure
                          of a grantee to appeal a proposed audit  disallowance  within
                          30 days after receipt of the written notification  will  make
                          the action conclusive.

                     18








                      j.  REFCRTS

                          1.  Reports of Expenditures
                                A single expenditure report is required to be submitted
                                within 120 days after the end of each budget period.

                           2.   ProRress Reports
                                In addition to a complete form HSMHA-123, a progyess
                                report is required for continuation application.

                           3.   Invention   orts
                                A full reporting of all inventions to the Assistant Secretary
                                for Health and Scientific Affairs, Department of Health,
                                Education, and Welfare, 330 Independence Avenue, Washington,
                                D.C. 20201 is required.  A final invention report and
                                certification on the form prescribed is required within 30
                                days after termination of support.

                       K.  MISCELLANEOUS

                           1.   Safety Precautions
                                Regional Medical Programs Service assumes no  responsibility
                                with respect to accident, claims, or illness arising out  of
                                any work undertaken with the assistance of a grant.  The
                                grantee institution is expected to take necessary steps to
                                insure or protect itself and its personnel.

                            2.  Federal Income Tax
                                Determination of a tax status of an individual receiving
                                compensation in any form from a Regional Medical Programs
                                Service grant is the responsibility of the Internal  Revenue
                                Service.


                            3.  Military Service
                                Regional Medical Programs Service will not intercede on
                                behalf of an individual in relation to military status.

                            4.  Visa status of non-United States citizens
                                Regional Medical Programs Service will not intercede in
                                behalf of non-United States citizens who may be participating
                                in a project and whose stay in the United States may be limited
                                by his visa status.  For this reason the grantee should determine
                                that any such individual's visa will allow him to remain in the
                                country a sufficient length of time to be productive on the project.

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                                                                            GP 0 897.755