Source: http://www.hhs.gov/dab/decisions/dab1594.html
Timestamp: 2015-07-31 07:23:10
Document Index: 358716677

Matched Legal Cases: ['§ 9831', '§ 9833', '§ 1301', 'art 74', '§ 74', '§ 1301', 'art 74', '§ 74', '§ 74', '§74']

1996.08.05 DAB1594 Putnam-Clay-Flagler Economic Opportunity Council, Inc.
Putnam-Clay-Flagler Economic Opportunity Council, Inc., DAB No. 1594 (1996) Department of Health and Human Services
SUBJECT: Putnam-Clay-Flagler Economic Opportunity Council, Inc.
Docket No. A-95-72
Control No. A-04-95-32922
Decision No. 1594
Putnam-Clay-Flagler Economic Opportunity Council, Inc. (P-C-F) appealed a determination by the Administration for Children and Families (ACF) disallowing $284,172 in Head Start program funds for the budget period ending October 31, 1993. During Board proceedings the amount in dispute was reduced. The only issue remaining concerns $178,320 related to P-C-F's failure to document the in-
kind valuation of property donated by the Putnam County School Board for P-C-F's use for its Head Start program. 1/ For the reasons described more fully below, we sustain ACF's disallowance.
ACF administers the federal Head Start program which provides comprehensive health, educational, nutritional, social and other services to economically disadvantaged pre-school children and their families. 42 U.S.C. § 9831. To carry out this program, ACF provides federal funding to public and private agencies totalling generally 80% of their approved Head Start budget, and the public or private agency contributes 20% in matching funds or in-kind contributions. 42 U.S.C. §§ 9833 and 9835(b); 45 C.F.R. § 1301.20.
With certain exceptions not relevant here, the general grants administration requirements in 45 C.F.R. Part 74 (1992) apply to Head Start grants. 45 C.F.R. § 74.4 and 45 C.F.R. § 1301.10(a). Part 74 contains rules for satisfying federal requirements for cost sharing or matching. 45 C.F.R. § 74.50. 2/ Cost sharing or matching is defined in the regulations as "the value of third-party in-kind contributions and that portion of the costs of a grant-supported project or program not borne by the Federal Government." 45 C.F.R. § 74.51. That regulation also defines "third-party in-kind contributions" as "property or services which benefit a grant-supported project or program and which are contributed without charge to the grantee . . . under the grant." Id. The regulations further provide that third-
party in-kind contributions claimed for a matching requirement must be verifiable from the grantee's records, and the grantee's records must show how the value placed on third-party in-kind contributions was determined. 45 C.F.R. §74.53(