[Federal Register Volume 64, Number 56 (Wednesday, March 24, 1999)]
[Rules and Regulations]
[Pages 14123-14133]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6630]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 1208 and 2552

RIN 3045-AA18


Foster Grandparent Program

ACTION: Final regulations.

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SUMMARY: The Corporation for National and Community Service 
(hereinafter the ``Corporation''), amends the regulations governing the 
administration of the Foster Grandparent Program (FGP). This final rule 
implements changes to the Domestic Volunteer Service Act of 1973 as 
amended, and establishes minimum program requirements with greater 
clarity. It updates program operations, consolidates requirements from 
outdated sources into one user friendly document; and incorporates new 
concepts of programming to highlight the accomplishments and impact of 
senior service. This amendment supersedes the old ACTION Foster 
Grandparent Program regulations and Foster Grandparent Program 
Operations Handbook dated January 1989.

DATES: These regulations take effect April 23, 1999.

FOR FURTHER INFORMATION CONTACT: Rey Tejada at 202-606-5000 ext. 197.

SUPPLEMENTARY INFORMATION: The Corporation published a notice of 
proposed rulemaking (NPRM) for the Foster Grandparent Program, 45 CFR 
Parts 1208 and 2552, in the Federal Register at 63 FR 46963, September 
3, 1998.

Summary of Main Comments and Changes

    In response to the Corporation's invitation in the NPRM, the 
Corporation received 524 letters. A significant number (73 percent) of 
the letters came from one state. A summary of the main comments 
received and the Corporation's responses are provided in this final 
rule. Comments that are general or editorial in nature, or those 
requesting clarification of program requirements are not addressed in 
this final rule. The significant comments and the Corporation's 
responses are summarized by section as follows:

Section 2552.11  What is the Foster Grandparent Program?

    Comments: Expressed concern that the language proposed for 
Sec. 2552.11 puts too much emphasis on service, less on the volunteers, 
and disregards the dual purpose of the program.
    Response: The Corporation understands the concerns expressed and 
has modified the section to emphasize the dual purpose of the program. 
The first sentence of Sec. 2552.11 was revised by adding ``for the dual 
purpose of engaging'' after ``organizations'', and ``and to provide a 
high quality experience that will enrich the lives of the volunteers'' 
after ``needs.''

Section 2552.12(c)  Annual Income

    Comments: Expressed some confusion as to whether it is mandatory to 
count the value of food and shelter given the use of the word ``may'' 
in this section, and the word ``should'' in the second sentence of 
Sec. 2552.42(b).
    Response: In determining income eligibility, it is the 
Corporation's intent to count the value of food and shelter provided at 
no cost to a volunteer. This is to ensure that volunteer applicants 
receiving such assistance do not have an undue advantage over those who 
do not. To make this point clear, the Corporation has amended the 
second sentence of this section by using the word ``shall'' instead of 
``may'', and has also inserted the word ``in-kind'' after ``cash'' in 
the first sentence.

Section 2552.12(g)  Children Having Exceptional Needs

    Comments: Expressed concern that limiting services to children with 
special and exceptional needs would eliminate services to so called 
``at-risk'' children who do not meet the definition. Others said that 
the examples cited exclude other types of children such as those with 
literacy needs; while some objected to the use of the term ``mentally 
retarded'' in the first sentence.
    Response: The Corporation has expanded the examples by including 
children with literacy needs in the definition. It also deleted the 
term ``mentally retarded''. The Domestic Volunteer Service Act (DVSA) 
requires that volunteer services be focused on children with ``special 
or exceptional needs''.

Section 2552.12(n)  National Senior Service Corps

    Comments: Object to the use of the name National Senior Service 
Corps (NSSC) because it is not the name used in the DVSA.
    Response: This name has been in use for the last several years and 
the Corporation has used significant resources for the development and 
design of a number of promotional program materials that are now in 
wide use by projects across the country.

Section 2552.23(f)  Volunteer Orientation

    Comments: Indicated that 40 hours of pre-service orientation is 
difficult for staff to deliver; others thought that the four hours of 
monthly in-service training is excessive.
    Response: The Corporations understands the concerns expressed. To 
increase flexibility and training options, the Corporation amended the 
provision to provide 40 hours of orientation of which 20 hours must be 
pre-service. The Corporation believes four hours of monthly in-service 
training is essential.

Section 2552.23(i) Strategic Plan

    Comments: Expressed concern that to require the development of a 
strategic plan would be a significant paperwork burden on projects.

[[Page 14124]]

    Response: The Corporation understands the concerns expressed 
regarding the requirement and the potential burden it may produce. For 
this reason, the provision has been withdrawn from the final rule.

Section 2552.23(k) Assessment of Accomplishments and Impact

    Comments: All expressed concern about administrative demands the 
requirement for assessing impact would entail.
    Response: The Corporation appreciates the concern expressed. 
However, the provision is essential for the Corporation to meet its 
obligations under The Government Performance and Results Act.

Section 2552.24 Securing Community Participation

    Comments: Comments were mixed. Some of the comments oppose any 
changes in the structure, role and operation of the Advisory Council as 
they were specified in previous regulations. Others support the 
flexibility provided by the new rule.
    Response: The new provision gives local program sponsors maximum 
flexibility for securing community participation. It gives them 
discretion to use an Advisory Council or another organizational 
structure to meet the requirement. The Corporation believes that the 
new rule gives local sponsors the ability to choose whatever method 
works best for them to involve the community in program operations.

Section 2552.25(b) Delegation of Authority

    Comments: Expressed concern about the potential increase in 
workload for project directors to meet this requirement. Some were also 
confused as to what the delegation of authority means.
    Response: The Corporation has withdrawn the provision from the 
final rule.

Section 2552.25(d) Full-Time Project Director

    Comments: Comments were mixed. Some were in support of the new 
rule; others wanted a provision to waive the full-time project director 
requirement; and a few wanted the requirement taken out of federal 
regulations and left at the sponsor's discretion.
    Response: The Corporation modified this section by deleting from 
the last sentence any reference to cost savings and leaving the basis 
for negotiating a part-time director position to the size, scope and 
quality of project operations. The new rule replaces the more rigid and 
cumbersome waiver process required under the old regulations to employ 
a part-time director.

Section 2552.41 Foster Grandparent Eligibility

    Comments: Suggested lowering the age eligibility from 60 to 55 to 
attract more volunteers into the program and broaden the potential 
volunteer pool.
    Response: The age eligibility of volunteers is established by law. 
Only Congress can change this requirement and the Corporation plans to 
pursue that objective through the reauthorization process.

Section 2552.42 Income Guidelines

    Comments: Many recommend increasing the income guideline to 150 
percent of poverty. Others questioned the inclusion of the value of 
food and shelter provided at no cost to a volunteer in determining 
income.
    Response: The income guideline is established by law and can only 
be changed through a legislative amendment. Counting the value of food, 
clothing and shelter provided at no cost, encourages equitable 
participation by not giving advantage to volunteers who receive such 
assistance.

Section 2552.43 What Is Considered Income

    Comments: Requests special consideration for volunteers who own 
their homes and have related expenses.
    Response: This section restates a provision in the old regulations 
and will be maintained. The only consideration with respect to expenses 
relates to extraordinary health care expenses.

Section 2552.45(a) Stipend

    Comments: Expressed concern that the rule excludes eligible married 
couples from receiving a stipend.
    Response: The Corporation, after considering the concerns 
expressed, has decided to withdraw subsections (a)(1) and (a)(2) in 
order to allow all eligible married volunteers to receive a stipend.

Section 2552.45(c) Transportation

    Comments: Concern that the use of the word ``may'' in this section 
takes away the guarantee that volunteers will receive the 
transportation assistance they need to get to their assignments.
    Response: After considering the comments, the Corporation modified 
this section by deleting the word ``may'' and using ``shall'' instead 
after ``Grandparents''.

Section 2552.45(d) Physical Examination

    Comments: Requested that the physical examination be permitted 
during the first month of service rather than requiring that it be 
provided only prior to service. The rationale for the request is that 
such an approach could save money particularly in cases where 
volunteers terminate shortly after enrollment.
    Response: The Corporation understands the rationale for the 
request. However, physical examinations provide some assurance that 
volunteers can serve without detriment to themselves or their clients. 
The Corporation believes this justifies the costs involved.

Section 2552.45(e) Meals and Recognition

    Comments: Expressed concern that this Section reduces the value of 
support by limiting it to available resources and suggested that 
recognition be made mandatory.
    Response: To emphasize its importance to the volunteers, the 
Corporation revised this Section by using the term ``shall be'' instead 
of ``are'' in the first line. The level of support volunteers receive 
is always governed by the resources available to a project under an 
approved grant.

Section 2552.51(a) (b) (c) Terms of Service

    Comments: Comments were mixed. Some agree with the flexibility 
provided under the new rule; others thought there should be more 
flexibility suggesting that terms of service should be left to the 
discretion of the sponsor.
    Response: After considering the comments, the Corporation modified 
this Section to allow even more flexibility in volunteers' term of 
service. SubSection (a) was revised to allow volunteers to serve a 
minimum of nine months a year at an average of 20 hours of service a 
week. Consistent with this amendment, subSection s (b) and (c) were 
deleted.

Section 2552.52 Modified Schedule

    Comments: All opposed the proposed rule. Many thought the 10 year 
service requirement as a condition for a modified service schedule was 
excessive.
    Response: The Corporation deleted this Section in view of the 
changes made on Section 2552.51 (a) on terms of service.

Section 2552.55 Volunteer Leave

    Comments: Opposed this provision because it may result in less 
leave for volunteers. Many thought that volunteer leave should be 
governed by sponsor's policies.

[[Page 14125]]

    Response: After considering the comments, the Corporation has 
withdrawn this provision from the final rule.

Section 2552.62(c) Care Plans

    Comments: Opposed the care plan provision saying that it would 
increase paperwork burden on stations and raise issues of client 
confidentiality.
    Response: The Corporation modified the provision changing ``care 
plan'' to a ``written volunteer assignment plan'' for each child that 
identifies the role and activities of the Foster Grandparent and 
expected outcomes for the child served.

Section 2552.71 Number of Children in a Station

    Comments: All were opposed, stating that the provision is 
unrealistic and may be difficult for rural stations and those that 
cannot accommodate more than one volunteer. They suggested including a 
waiver provision.
    Response: The Corporation has withdrawn this provision from the 
final rule.

Section 2552.73 Volunteer Assignments

    Comments: Suggested that volunteers be permitted to serve as group 
leaders as an acceptable volunteer assignment.
    Response: The program's authorizing legislation requires that 
volunteers provide supportive, person to person service to children 
with special or exceptional needs. The volunteer role suggested by the 
comments cannot be accommodated without a change in the authorizing 
legislation.

Section 2552.74 Care Plans

    Comments: Opposed the care plan provision saying that it would 
increase paperwork burden on stations and raise issues of client 
confidentiality.
    Response: The Corporation modified the provision changing ``care 
plan'' to a ``written volunteer assignment plan'' for each child that 
identifies the role and activities of the Foster Grandparent and 
expected outcomes for the child served.

Section 2552.81 Children Served

    Comments: Objected to the use of the term children with special or 
exceptional needs citing that it labels children receiving volunteer 
services.
    Response: The term children with special or exceptional needs is 
specified in the program's authorizing legislation. It is restated in 
the final rule for this reason.

Section 2552.82 Service After Age 21

    Comments: Objected to the use in this Section of the term mentally 
retarded.
    Response: The term is used because it is specified in the 
authorizing legislation. To change it would require a change in the 
law.

Section 2552.92(c) Excess Non-Corporation Support

    Comments: Recommended that the Corporation not restrict the manner 
in which contributions in excess of the required local support are 
spent. They also suggest deleting the condition that such expenditure 
be made consistent with the provision of the Act.
    Response: The final rule does not restrict the manner in which the 
sponsors spend contributions made in excess of the local support 
required. The condition that such expenditures be made consistent with 
the provisions of the Act is a requirement of the law.

Section 2552.92(e) Cost Reimbursement Ratio

    Comments: Comments were mixed. Some are opposed to the requirement 
and suggest that a waiver provision be included. Others are in favor of 
the new provision that reduces the required cost reimbursement ratio 
from 90% to 80%.
    Response: The new provision lessens the burden on local sponsors by 
reducing the required ratio under the old regulation by 10%. It ensures 
that volunteer support items are adequately covered in the grant 
budget. The Corporation believes that allowing any further reduction 
through a waiver provision would jeopardize the sponsor's ability to 
provide volunteer support.

Section 2552.93(d) Assignment Related Costs

    Comments: Opposed the provision specifying that equipment or 
supplies for a volunteer while on assignment are not allowable costs.
    Response: The provision restates a requirement under the old 
regulations. Limited program funds can cover only essential direct 
volunteer support such as transportation to and from assignment. Other 
costs associated with the volunteers service activity are the 
responsibility of the station or other third parties.

Section 2552.104 Funds for Non-Stipended Foster Grandparents

    Comments: Questioned why federal funds cannot be used to pay any 
cost related to non-stipended volunteers when the Corporation 
encourages their recruitment and allows them to receive cost 
reimbursements other than the stipend.
    Response: The rule on non-stipended volunteers is a restatement of 
the language in the program's authorizing legislation. The rule cannot 
be changed without a change in the law.

Section 2552.121(c) Compensation for Service

    Comments: Requested clarifying language for subsection (3) which 
states that station support shall not be a precondition to the 
assignment of volunteers, and subsection (4) which states that the 
sponsor shall withdraw services if the station is unable to provide 
monetary and in-kind support.
    Response: The Corporation modified both subsections by moving the 
last sentence in subsection (3) and inserted it as the first sentence 
in subsection (4). This adjustment clarifies the Corporation's position 
that a volunteer station's ability to provide cash or in-kind support 
shall not be a precondition to the assignment of volunteers to that 
station. However, if a station agrees to provide support under a 
Memorandum of Understanding, and later decides to withdraw that support 
in a manner that reduces or diminishes the ability of the project to 
fulfill its obligations under the grant, then the sponsor can withdraw 
volunteer services from that station.

Regulatory Flexibility Act and Unfunded Mandates Reform Act

    The General Counsel, in accordance with the Regulatory Flexibility 
Act (5 U.S.C. 606(b)), has reviewed this regulation and by approving 
certifies that this final rule will not have a significant impact on 
small business entities.
    Under the Unfunded Mandates Reform Act of 1995, the Corporation 
certifies that this final rule does not include any Federal mandate 
that may result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of 
$100,000,000 or more (adjusted annually for inflation) in any one year.

Paperwork Reduction Act of 1995

    These final regulations have been examined under the Paperwork 
Reduction Act of 1995 and have been found to contain no information 
collection requirements.

Intergovernmental Review

    This program is subject to the requirements of Executive Order 
12372. The objective of the Executive Order is to foster an 
intergovernmental partnership and strengthened federalism by relying on 
processes developed by State and local governments for coordination and 
review of proposed Federal financial assistance. In accordance with the 
Order, this

[[Page 14126]]

document is intended to provide early notification of the Corporation's 
specific plans and actions for this program.

Executive Order 12866

    This regulation has been drafted and reviewed in accordance with 
Executive Order 12866. The Office of Management and Budget has reviewed 
this rule and has determined that this rule is not a ``significant 
regulatory action'' under Executive Order 12866, section 3(f), 
Regulatory Planning and Review.

                           Distribution Table
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                                                             New 45  CFR
                    Old 45 CFR part 1208                      part  2552
------------------------------------------------------------------------
1208.1-1...................................................      2552.11
1208.1-2...................................................      2552.12
1208.1-3...................................................      2552.23
1208.2-1...................................................         None
1208.2-2...................................................      2552.92
1208.2-3...................................................      2552.21
1208.2-4...................................................      2552.91
1208.2-5...................................................      2552.91
1208.2-6...................................................      2552.91
1208.2-7...................................................      2552.93
1208.2-8...................................................      2552.31
1208.3-1...................................................      2552.23
1208.3-2...................................................      2552.25
1208.3-3...................................................      2552.24
1208.3-4...................................................      2552.62
1208.3-5...................................................      2552.41
1208.3-6...................................................      2552.71
1208.3-7...................................................      2552.81
1208.4-1...................................................     2552.111
1208.5-1...................................................     2252.121
1208.5-2...................................................     2552.122
------------------------------------------------------------------------

List of Subjects

45 CFR Part 1208

    Aged, Grant programs--social programs, Reporting and recordkeeping 
requirements, Volunteers.

45 CFR Part 2552

    Aged, Grant programs--social programs, Volunteers.
    For the reasons set out in the preamble, and under the authority of 
42 U.S.C. 12501 et seq., part 1208 in 45 CFR chapter XII is 
redesignated as part 2552 in 45 CFR chapter XXV and is revised to read 
as follows:

PART 2552--FOSTER GRANDPARENT PROGRAM

Subpart A--General

Sec.
2552.11  What is the Foster Grandparent Program?
2552.12  Definitions.

Subpart B--Eligibility and Responsibilities of a Sponsor

2552.21 Who is eligible to serve as a sponsor?
2552.22  What are the responsibilities of a sponsor?
2552.23  What are a sponsor's program responsibilities?
2552.24  What are a sponsor's responsibilities for securing 
community participation?
2552.25  What are a sponsor's administrative responsibilities?
2552.26  May a sponsor administer more than one program grant from 
the Corporation?

Subpart C--Suspension and Termination of Corporation Assistance

2552.31  What are the rules on suspension, termination, and denial 
of refunding of grants?

Subpart D--Foster Grandparent Eligibility, Status and Cost 
Reimbursements

2552.41  Who is eligible to be a Foster Grandparent?
2552.42  What income guidelines govern eligibility to serve as a 
stipended Foster Grandparent?
2552.43  What is considered income for determining volunteer 
eligibility?
2552.44  Is a Foster Grandparent a federal employee, an employee of 
the sponsor or of the volunteer station?
2552.45  What cost reimbursements are provided to Foster 
Grandparents?
2552.46  May the cost reimbursements of a Foster Grandparent be 
subject to any tax or charge, be treated as wages or compensation, 
or affect eligibility to receive assistance from other programs?

Subpart E--Foster Grandparent Terms of Service

2552.51 What are the terms of service of a Foster Grandparent?
2552.52  What factors are considered in determining a Foster 
Grandparent's service schedule?
2552.53  Under what circumstances may a Foster Grandparent's service 
be terminated?

Subpart F--Responsibilities of a Volunteer Station

2552.61 When may a sponsor serve as a volunteer station?
2552.62  What are the responsibilities of a volunteer station?

Subpart G--Foster Grandparent Placements and Assignments

2552.71  What requirements govern the assignment of Foster 
Grandparents?
2552.72  Is a written volunteer assignment plan required for each 
volunteer?

Subpart H--Children Served

2552.81 What type of children are eligible to be served?
2552.82  Under what circumstances may a Foster Grandparent continue 
to serve an individual beyond his or her 21st birthday?

Subpart I--Application and Fiscal Requirements

2552.91  What is the process for application and award of a grant?
2552.92  What are project funding requirements?
2552.93  What are grants management requirements?

Subpart J--Non-Stipended Foster Grandparents

2552.101  What rule governs the recruitment and enrollment of 
persons who do not meet the income eligibility guidelines to serve 
as Foster Grandparents without stipends?
2552.102  What are the conditions of service of non-stipended Foster 
Grandparents?
2552.103  Must a sponsor be required to enroll non-stipended Foster 
Grandparents?
2552.104  May Corporation funds be used for non-stipended Foster 
Grandparents?

Subpart K--Non-Corporation Funded Foster Grandparent Program Projects

2552.111  Under what conditions can an agency or organization 
sponsor a Foster Grandparent project without Corporation funding?
2552.112  What benefits are a non-Corporation funded project 
entitled to?
2552.113  What financial obligation does the Corporation incur for 
non-Corporation funded projects?
2552.114  What happens if a non-Corporation funded sponsor does not 
comply with the Memorandum of Agreement?

Subpart L--Restrictions and Legal Representation

2552.121  What legal limitations apply to the operation of the 
Foster Grandparent Program and to the expenditure of grant funds?
2552.122  What legal coverage does the Corporation make available to 
Foster Grandparents?

    Authority: 42 U.S.C. 4950 et seq.

Subpart A--General


Sec. 2552.11  What is the Foster Grandparent Program?

    The Foster Grandparent Program provides grants to qualified 
agencies and organizations for the dual purpose of: engaging persons 60 
and older, particularly those with limited incomes, in volunteer 
service to meet critical community needs; and to provide a high quality 
experience that will enrich the lives of the volunteers. Program funds 
are used to support Foster Grandparents in providing supportive, person 
to

[[Page 14127]]

person service to children with exceptional or special needs.


Sec. 2552.12  Definitions.

    (a) Act. The Domestic Volunteer Service Act of 1973, as amended, 
Pub. L. 93-113, Oct. 1, 1973, 87 Stat. 396, 42 U.S.C. 4950 et seq.
    (b) Adequate staffing level. The number of project staff or full-
time equivalent needed by a sponsor to manage NSSC project operations 
considering such factors as: number of budgeted volunteers/Volunteer 
Service Years (VSYs), number of volunteer stations, and the size of the 
service area.
    (c) Annual income. Total cash and in-kind receipts from all sources 
over the preceding 12 months including: the applicant or enrollee's 
income and, the applicant or enrollee's spouse's income, if the spouse 
lives in the same residence. The value of shelter, food, and clothing, 
shall be counted if provided at no cost by persons related to the 
applicant/enrollee, or spouse.
    (d) Chief Executive Officer. The Chief Executive Officer of the 
Corporation appointed under the National and Community Service Act of 
1990, as amended, (NCSA), 42 U.S.C. 12501 et seq.
    (e) Child. Any individual who is less than 21 years of age.
    (f) Children having exceptional needs. Children who are 
developmentally disabled, such as those who are autistic, have cerebral 
palsy or epilepsy, are visually impaired, speech impaired, hearing 
impaired, orthopedically impaired, are emotionally disturbed or have a 
language disorder, specific learning disability, have multiple 
disabilities, other significant health impairment or have literacy 
needs. Existence of a child's exceptional need shall be verified by an 
appropriate professional, such as a physician, psychiatrist, 
psychologist, registered nurse or licensed practical nurse, speech 
therapist or educator before a Foster Grandparent is assigned to the 
child.
    (g) Children with special needs. Children who are abused or 
neglected; in need of foster care; adjudicated youth; homeless youths; 
teen-age parents; and children in need of protective intervention in 
their homes. Existence of a child's special need shall be verified by 
an appropriate professional before a Foster Grandparent is assigned to 
the child.
    (h) Corporation. The Corporation for National and Community Service 
established under the NCSA. The Corporation is also sometimes referred 
to as CNCS.
    (i) Cost reimbursements. Reimbursements provided to volunteers such 
as stipends to cover incidental costs, meals, and transportation, to 
enable them to serve without cost to themselves. Also included are the 
costs of annual physical examinations, volunteer insurance and 
recognition which are budgeted as Volunteer Expenses.
    (j) In-home. The non-institutional assignment of a Foster 
Grandparent in a private residence or a foster home.
    (k) Letter of Agreement. A written agreement between a volunteer 
station, the sponsor and the parent or persons legally responsible for 
the child served by the Foster Grandparent. It authorizes the 
assignment of a Foster Grandparent in the child's home, defines the 
Foster Grandparent's activities and delineates specific arrangements 
for supervision.
    (l) Memorandum of Understanding. A written statement prepared and 
signed by the Foster Grandparent project sponsor and the volunteer 
station that identifies project requirements, working relationships and 
mutual responsibilities.
    (m) National Senior Service Corps (NSSC). The collective name for 
the Foster Grandparent Program (FGP), the Retired and Senior Volunteer 
Program (RSVP), the Senior Companion Program (SCP), and Demonstration 
Programs established under Title II Parts A, B, C, and E, of the Act. 
NSSC is also referred to as the ``Senior Corps''.
    (n) Non-Corporation support (required). The percentage share of 
non-Federal cash and in-kind contributions, required to be raised by 
the sponsor in support of the grant.
    (o) Non-Corporation support (excess). The amount of non-Federal 
cash and in-kind contributions generated by a sponsor in excess of the 
required percentage.
    (p) Parent. A natural parent or a person acting in place of a 
natural parent, such as a guardian, a child's natural grandparent, or a 
step-parent with whom the child lives. The term also includes otherwise 
unrelated individuals who are legally responsible for a child's 
welfare.
    (q) Project. The locally planned and implemented Foster Grandparent 
Program activity or set of activities as agreed upon between a sponsor 
and the Corporation.
    (r) Qualified individual with a disability. An individual with a 
disability (as defined in the Rehabilitation Act, 29 U.S.C. 705 (20)) 
who, with or without reasonable accommodation, can perform the 
essential functions of a volunteer position that such individual holds 
or desires. If a sponsor has prepared a written description before 
advertising or interviewing applicants for the position, the written 
description may be considered evidence of the essential functions of 
the volunteer position.
    (s) Service area. The geographically defined area in which Foster 
Grandparents are recruited, enrolled, and placed on assignments.
    (t) Service schedule. A written delineation of the days and times a 
Foster Grandparent serves each week.
    (u) Sponsor. A public agency or private non-profit organization 
that is responsible for the operation of a Foster Grandparent project.
    (v) Stipend. A payment to Foster Grandparents to enable them to 
serve without cost to themselves. The amount of the stipend is 
determined by the Corporation and is payable in regular installments. 
The minimum amount of the stipend is set by law and shall be adjusted 
by the CEO from time to time.
    (w) Trust Act. The National and Community Service Trust Act of 
1993, Pub. L. 103-82, Sept. 21, 1993, 107 Stat. 785.
    (x) United States and States. Each of the several States, the 
District of Columbia, the U.S. Virgin Islands, the Commonwealth of 
Puerto Rico, Guam and American Samoa, and Trust Territories of the 
Pacific Islands.
    (y) Volunteer assignment plan. A written description of a Foster 
Grandparent's assignment with a child. The plan identifies specific 
outcomes for the child served and the activities of the Foster 
Grandparent.
    (z) Volunteer station. A public agency, private non-profit 
organization or proprietary health care agency or organization that 
accepts the responsibility for assignment and supervision of Foster 
Grandparents in health, education, social service or related settings 
such as hospitals, homes for dependent and neglected children, or 
similar establishments. Each volunteer station must be licensed or 
otherwise certified, when required, by the appropriate state or local 
government. Private homes are not volunteer stations.

Subpart B--Eligibility and Responsibilities of a Sponsor


Sec. 2552.21  Who is eligible to serve as a sponsor?

    The Corporation awards grants to public agencies, including Indian 
tribes and non-profit private organizations, in the United States that 
have the authority to accept and the capability to administer a Foster 
Grandparent project.

[[Page 14128]]

Sec. 2552.22  What are the responsibilities of a sponsor?

    A sponsor is responsible for fulfilling all project management 
requirements necessary to accomplish the purposes of the Foster 
Grandparent Program as specified in the Act. A sponsor shall not 
delegate or contract these responsibilities to another entity. A 
sponsor shall comply with all program regulations and policies, and 
grant provisions prescribed by the Corporation.


Sec. 2552.23  What are a sponsor's program responsibilities?

    A sponsor shall:
    (a) Focus Foster Grandparent resources on critical problems 
affecting children with special and exceptional needs within the 
project's service area.
    (b) Assess in collaboration with other community organizations or 
utilize existing assessment of the needs of the client population in 
the community and develop strategies to respond to those needs using 
the resources of Foster Grandparents.
    (c) Develop and manage a system of volunteer stations by:
    (1) Ensuring that a volunteer station is a public or non-profit 
private organization, or an eligible proprietary health care agency, 
capable of serving as a volunteer station for the placement of Foster 
Grandparents;
    (2) Ensuring that the placement of Foster Grandparents will be 
governed by a Memorandum of Understanding:
    (i) That is negotiated prior to placement;
    (ii) That specifies the mutual responsibilities of the station and 
sponsor;
    (iii) That is renegotiated at least every three years; and
    (iv) That states the station assures it will not discriminate 
against Foster Grandparents or in the operation of its program on the 
basis of race, color, national origin, sex, age, political affiliation, 
religion, or on the basis of disability, if the participant or member 
is a qualified individual with a disability; and
    (3) Reviewing volunteer placements regularly to ensure that clients 
are eligible to be served.
    (d) Develop Foster Grandparent service opportunities to support 
locally-identified needs of eligible children in a way that considers 
the skills and experiences of Foster Grandparents.
    (e) Consider the demographic make-up of the project service area in 
the enrollment of Foster Grandparents, taking special efforts to 
recruit eligible individuals from minority groups, persons with 
disabilities, and under-represented groups.
    (f) Provide Foster Grandparents with assignments that show direct 
and demonstrable benefits to the children and the community served, the 
Foster Grandparents, and the volunteer station; with required cost 
reimbursements specified in Sec. 2552.45; with not less than 40 hours 
of orientation of which 20 hours must be pre-service, and an average of 
4 hours of monthly in-service training.
    (g) Encourage the most efficient and effective use of Foster 
Grandparents by coordinating project services and activities with 
related national, state and local programs, including other Corporation 
programs.
    (h) Conduct an annual appraisal of volunteers' performance and 
annual review of their income eligibility.
    (i) Develop, and annually update, a plan for promoting senior 
service within the project's service area.
    (j) Annually assess the accomplishments and impact of the project 
on the identified needs and problems of the client population in the 
community.
    (k) Establish written service policies for Foster Grandparents that 
include but are not limited to annual and sick leave, holidays, service 
schedules, termination, appeal procedures, meal and transportation 
reimbursements.


Sec. 2552.24  What are a sponsor's responsibilities for securing 
community participation?

    (a) A sponsor shall secure community participation in local project 
operation by establishing an Advisory Council or a similar 
organizational structure with a membership that includes people:
    (1) Knowledgeable of human and social needs of the community;
    (2) Competent in the field of community service, volunteerism and 
children's issues;
    (3) Capable of helping the sponsor meet its administrative and 
program responsibilities including fund-raising, publicity and 
programming for impact;
    (4) With interest in and knowledge of the capability of older 
adults; and
    (5) Of a diverse composition that reflects the demographics of the 
service area.
    (b) The sponsor determines how such participation shall be secured 
consistent with the provisions of paragraphs (a)(1) through (a)(5) of 
this section.


Sec. 2552.25  What are a sponsor's administrative responsibilities?

    A sponsor shall:
    (a) Assume full responsibility for securing maximum and continuing 
community financial and in-kind support to operate the project 
successfully.
    (b) Provide levels of staffing and resources appropriate to 
accomplish the purposes of the project and carry out its project 
management responsibilities.
    (c) Employ a full-time project director to accomplish program 
objectives and manage the functions and activities delegated to project 
staff for NSSC program(s) within its control. A full-time project 
director shall not serve concurrently in another capacity, paid or 
unpaid, during established working hours. The project director may 
participate in activities to coordinate program resources with those of 
related local agencies, boards or organizations. A sponsor may 
negotiate the employment of a part-time project director with the 
Corporation when it can be demonstrated that such an arrangement will 
not adversely affect the size, scope, and quality of project 
operations.
    (d) Consider all project staff as sponsor employees subject to its 
personnel policies and procedures.
    (e) Compensate project staff at a level that is comparable with 
other similar staff positions in the sponsor organization and/or 
project service area.
    (f) Establish risk management policies and procedures covering 
project and Foster Grandparent activities. This includes provision of 
appropriate insurance coverage for Foster Grandparents, vehicles and 
other properties used in the project.
    (g) Establish record keeping/reporting systems in compliance with 
Corporation requirements that ensure quality of program and fiscal 
operations, facilitate timely and accurate submission of required 
reports and cooperate with Corporation evaluation and data collection 
efforts.
    (h) Comply with and ensure that all volunteer stations comply with 
all applicable civil rights laws and regulations, including providing 
reasonable accommodation to qualified individuals with disabilities.


Sec. 2552.26  May a sponsor administer more than one program grant from 
the Corporation?

    A sponsor may administer more than one Corporation program grant.

Subpart C--Suspension and Termination of Corporation Assistance


Sec. 2552.31  What are the rules on suspension, termination, and denial 
of refunding of grants?

    (a) The Chief Executive Officer or designee is authorized to 
suspend further payments or to terminate payments under any grant 
providing assistance under the Act whenever he/she determines there is 
a material

[[Page 14129]]

failure to comply with applicable terms and conditions of the grant. 
The Chief Executive Officer shall prescribe procedures to ensure that:
    (1) Assistance under the Act shall not be suspended for failure to 
comply with applicable terms and conditions, except in emergency 
situations for thirty days;
    (2) An application for refunding under the Act may not be denied 
unless the recipient has been given:
    (i) Notice at least 75 days before the denial of such application 
of the possibility of such denial and the grounds for any such denial; 
and
    (ii) Opportunity to show cause why such action should not be taken;
    (3) In any case where an application for refunding is denied for 
failure to comply with the terms and conditions of the grant, the 
recipient shall be afforded an opportunity for an informal hearing 
before an impartial hearing officer, who has been agreed to by the 
recipient and the Corporation; and
    (4) Assistance under the Act shall not be terminated for failure to 
comply with applicable terms and conditions unless the recipient has 
been afforded reasonable notice and opportunity for a full and fair 
hearing.
    (b) In order to assure equal access to all recipients, such 
hearings or other meetings as may be necessary to fulfill the 
requirements of this section shall be held in locations convenient to 
the recipient agency.
    (c) The procedures for suspension, termination, and denial of 
refunding, that apply to the Foster Grandparent Program are specified 
in 45 CFR part 1206.

Subpart D--Foster Grandparent Eligibility, Status and Cost 
Reimbursements


Sec. 2552.41  Who is eligible to be a Foster Grandparent?

    (a) To be a Foster Grandparent an individual must:
    (1) Be 60 years of age or older;
    (2) Be determined by a physical examination to be capable, with or 
without reasonable accommodation, of serving children with exceptional 
or special needs without detriment to either himself/herself or the 
children served;
    (3) Agree to abide by all requirements as set forth in this part; 
and
    (4) In order to receive a stipend, have an income that is within 
the income eligibility guidelines specified in this subpart D.
    (b) Eligibility to be a Foster Grandparent shall not be restricted 
on the basis of formal education, experience, race, religion, color, 
national origin, sex, age, handicap, or political affiliation.


Sec. 2552.42  What income guidelines govern eligibility to serve as a 
stipended Foster Grandparent?

    (a) To be enrolled and receive a stipend, a Foster Grandparent 
cannot have an annual income from all sources, after deducting 
allowable medical expenses, which exceeds the program's income 
eligibility guideline for the state in which he or she resides. The 
income eligibility guideline for each state is the higher amount of 
either:
    (1) 125 percent of the poverty line as set forth in 42 U.S.C. 9902 
(2); or
    (2) 135 percent of the poverty line, in those primary metropolitan 
statistical areas (PMSA), metropolitan statistical areas (MSA) and non-
metropolitan counties identified by the Corporation as being higher in 
cost of living, as determined by application of the Volunteers in 
Service to America (VISTA) subsistence rates. In Alaska the guideline 
may be waived by the Corporation State Director if a project 
demonstrates that low-income individuals in that location are 
participating in the project.
    (b) Annual income is counted for the past 12 months and includes 
the applicant or enrollee's income and that of his/her spouse, if the 
spouse lives in the same residence. Sponsors shall count the value of 
shelter, food, and clothing, if provided at no cost by persons related 
to the applicant, enrollee, or spouse.
    (c) Allowable medical expenses are annual out-of-pocket medical 
expenses for health insurance premiums, health care services, and 
medications provided to the applicant, enrollee, or spouse which were 
not and will not be paid by Medicare, Medicaid, other insurance, or 
other third party pay or, and which do not exceed 15 percent of the 
applicable income guideline.
    (d) Applicants whose income is not more than 100 percent of the 
poverty line shall be given special consideration for enrollment.
    (e) Once enrolled, a Foster Grandparent shall remain eligible to 
serve and to receive a stipend so long as his or her income, does not 
exceed the applicable income eligibility guideline by 20 percent.


Sec. 2552.43  What is considered income for determining volunteer 
eligibility?

    (a) For determining eligibility, ``income'' refers to total cash 
and in-kind receipts before taxes from all sources including:
    (1) Money, wages, and salaries before any deduction, but not 
including food or rent in lieu of wages;
    (2) Receipts from self-employment or from a farm or business after 
deductions for business or farm expenses;
    (3) Regular payments for public assistance, Social Security, 
Unemployment or Workers Compensation, strike benefits, training 
stipends, alimony, child support, and military family allotments, or 
other regular support from an absent family member or someone not 
living in the household;
    (4) Government employee pensions, private pensions, and regular 
insurance or annuity payments; and
    (5) Income from dividends, interest, net rents, royalties, or 
income from estates and trusts.
    (b) For eligibility purposes, income does not refer to the 
following money receipts:
    (1) Any assets drawn down as withdrawals from a bank, sale of 
property, house or car, tax refunds, gifts, one-time insurance payments 
or compensation from injury.
    (2) Non-cash income, such as the bonus value of food and fuel 
produced and consumed on farms and the imputed value of rent from 
owner-occupied farm or non-farm housing.


Sec. 2552.44  Is a Foster Grandparent a federal employee, an employee 
of the sponsor or of the volunteer station?

    Foster Grandparents are volunteers, and are not employees of the 
sponsor, the volunteer station, the Corporation, or the Federal 
Government.


Sec. 2552.45  What cost reimbursements are provided to Foster 
Grandparents?

    Cost reimbursements include:
    (a) Stipend. Foster Grandparents who are income eligible will 
receive a stipend in an amount determined by the Corporation and 
payable in regular installments, to enable them to serve without cost 
to themselves. The stipend is paid for the time Foster Grandparents 
spend with their assigned children, for earned leave, and for 
attendance at official project events.
    (b) Insurance. A Foster Grandparent is provided with the 
Corporation-specified minimum levels of insurance as follows:
    (1) Accident insurance. Accident insurance covers Foster 
Grandparents for personal injury during travel between their homes and 
places of assignment, during their volunteer service, during meal 
periods while serving as a volunteer, and while attending project-
sponsored activities. Protection shall be provided against claims in 
excess of any benefits or services for medical care or treatment 
available to the volunteer from other sources.

[[Page 14130]]

    (2) Personal liability insurance. Protection is provided against 
claims in excess of protection provided by other insurance. It does not 
include professional liability coverage.
    (3) Excess automobile liability insurance. (i) For Foster 
Grandparents who drive in connection with their service, protection is 
provided against claims in excess of the greater of either:
    (A) Liability insurance volunteers carry on their own automobiles; 
or
    (B) The limits of applicable state financial responsibility law, or 
in its absence, levels of protection to be determined by the 
Corporation for each person, each accident, and for property damage.
    (ii) Foster Grandparents who drive their personal vehicles to or on 
assignments or project-related activities shall maintain personal 
automobile liability insurance equal to or exceeding the levels 
established by the Corporation.
    (c) Transportation. Foster Grandparents shall receive assistance 
with the cost of transportation to and from volunteer assignments and 
official project activities, including orientation, training, and 
recognition events.
    (d) Physical examination. Foster Grandparents are provided a 
physical examination prior to assignment and annually thereafter to 
ensure that they will be able to provide supportive service without 
injury to themselves or the children served.
    (e) Meals and recognition. Foster Grandparents shall be provided 
the following within limits of the project's available resources:
    (1) Assistance with the cost of meals taken while on assignment; 
and
    (2) Recognition for their service.


Sec. 2552.46  May the cost reimbursements of a Foster Grandparent be 
subject to any tax or charge, be treated as wages or compensation, or 
affect eligibility to receive assistance from other programs?

    No. Foster Grandparent's cost reimbursements are not subject to any 
tax or charge or treated as wages or compensation for the purposes of 
unemployment insurance, worker's compensation, temporary disability, 
retirement, public assistance, or similar benefit payments or minimum 
wage laws. Cost reimbursements are not subject to garnishment, and do 
not reduce or eliminate the level of, or eligibility for, assistance or 
services a Foster Grandparent may be receiving under any governmental 
program.

Subpart E--Foster Grandparent Terms of Service


Sec. 2552.51  What are the terms of service of a Foster Grandparent?

    A Foster Grandparent shall serve a minimum of nine months a year 
for an average of 20 hours of service per week. A Foster Grandparent 
shall not serve more than 1044 hours per year.


Sec. 2552.52  What factors are considered in determining a Foster 
Grandparent's service schedule?

    (a) Travel time between the Foster Grandparent's home and place of 
assignment is not part of the service schedule and is not stipended.
    (b) Travel time between individual assignments is a part of the 
service schedule and is stipended.
    (c) Meal time may be part of the service schedule and is stipended 
only if it is specified in the goal statement as part of the service 
activity.


Sec. 2552.53  Under what circumstances may a Foster Grandparent's 
service be terminated?

    (a) A sponsor may remove a Foster Grandparent from service for 
cause. Grounds for removal include but are not limited to: extensive 
and unauthorized absences; misconduct; inability to perform 
assignments; and failure to accept supervision. A Foster Grandparent 
may also be removed from service for having income in excess of the 
eligibility level.
    (b) The sponsor shall establish appropriate policies on service 
termination as well as procedures for appeal from such adverse action.

Subpart F--Responsibilities of a Volunteer Station


Sec. 2552.61  When may a sponsor serve as a volunteer station?

    (a) A sponsor may function as a volunteer station if it is:
    (1) A State organization administering a statewide Foster 
Grandparent project where the volunteer station is part of the State 
organization; or
    (2) A Federal or State-recognized Indian tribal government.
    (b) Other sponsors not included in the categories specified in 
paragraphs (a)(1) and (a)(2) of this section, can serve as a volunteer 
station provided that no more than 20 percent of its budgeted VSYs can 
be placed in programs administered by such sponsors. In special 
circumstances, the Corporation may grant a waiver to increase this 
percentage.


Sec. 2552.62  What are the responsibilities of a volunteer station?

    A volunteer station shall undertake the following responsibilities 
in support of Foster Grandparent volunteers:
    (a) Develop volunteer assignments that meet the requirements 
specified in Secs. 2552.71 through 2552.72 and regularly assess those 
assignments for continued appropriateness.
    (b) Select eligible children for assigned volunteers.
    (c) Develop a written volunteer assignment plan for each child that 
identifies the role and activities of the Foster Grandparent and 
expected outcomes for the child served.
    (d) Obtain a Letter of Agreement for Foster Grandparents assigned 
in-home. This letter must comply with all Federal, State and local 
regulations.
    (e) Provide Foster Grandparents serving the station with:
    (1) Orientation to the station and any in-service training 
necessary to enhance performance of assignments;
    (2) Resources required for performance of assignments including 
reasonable accommodation; and
    (3) Appropriate recognition.
    (f) Designate a staff member to oversee fulfillment of station 
responsibilities and supervision of Foster Grandparents while on 
assignment.
    (g) Keep records and prepare reports required by the sponsor.
    (h) Provide for the safety of Foster Grandparents assigned to it.
    (i) Comply with all applicable civil rights laws and regulations 
including reasonable accommodation for Foster Grandparents with 
disabilities.
    (j) Undertake such other responsibilities as may be necessary to 
the successful performance of Foster Grandparents in their assignments 
or as agreed to in the Memorandum of Understanding.

Subpart G--Foster Grandparent Placements and Assignments


Sec. 2552.71  What requirements govern the assignment of Foster 
Grandparents?

    Foster Grandparent assignments shall:
    (a) Provide for Foster Grandparents to give direct services to one 
or more eligible children. Foster Grandparents cannot be assigned to 
roles such as teacher's aides, group leaders or other similar positions 
that would detract from the person-to-person relationship.
    (b) Result in person-to-person supportive relationships with each 
child served.
    (c) Support the development and growth of each child served.
    (d) Be meaningful to the Foster Grandparent.

[[Page 14131]]

    (e) Be supported by appropriate orientation, training and 
supervision.


Sec. 2552.72  Is a written volunteer assignment plan required for each 
volunteer?

    (a) All Foster Grandparents shall receive a written volunteer 
assignment plan developed by the volunteer station that:
    (1) Is approved by the sponsor and accepted by the Foster 
Grandparent;
    (2) Identifies the individual child(ren) to be served;
    (3) Identifies the role and activities of the Foster Grandparent 
and expected outcomes for the child;
    (4) Addresses the period of time each child should receive such 
services; and
    (5) Is used to review the status of the Foster Grandparent's 
services in working with the assigned child, as well as the impact of 
the assignment on the child's development.
    (b) If there is an existing plan that incorporates paragraphs 
(a)(2), (3), and (4) of this section, that plan shall meet the 
requirement.

Subpart H--Children Served


Sec. 2552.81  What type of children are eligible to be served?

    Foster Grandparents serve only children and youth with special and 
exceptional needs who are less than 21 years of age.


Sec. 2552.82  Under what circumstances may a Foster Grandparent 
continue to serve an individual beyond his or her 21st birthday?

    (a) Only when a Foster Grandparent has been assigned to, and has 
developed a relationship with, a mentally retarded child, that 
assignment may continue beyond the individual's 21st birthday, provided 
that:
    (1) Such individual was receiving such services prior to attaining 
the chronological age of 21, and the continuation of service is in the 
best interest of the individual; and
    (2) The sponsor determines that it is in the best interest of both 
the Foster Grandparent and the individual for the assignment to 
continue. Such a determination will be made through mutual agreement by 
all parties involved in the provision of services to the individual 
served.
    (b) In cases where the assigned Foster Grandparent becomes 
unavailable to serve a particular individual, the sponsor may select 
another Foster Grandparent to continue the service.
    (c) The sponsor may terminate service to a mentally retarded 
individual over age 21, if it determines that such service is no longer 
in the best interest of either the Foster Grandparent or the individual 
served.

Subpart I--Application and Fiscal Requirements


Sec. 2552.91  What is the process for application and award of a grant?

    (a) How and when may an eligible organization apply for a grant?
    (1) An eligible organization may file an application for a grant at 
any time.
    (2) Before submitting an application an applicant shall determine 
the availability of funds from the Corporation.
    (3) The Corporation may also solicit grants. Applicants solicited 
under this provision are not assured of selection or approval and may 
have to compete with other solicited or unsolicited applications.
    (b) What must an eligible organization include in a grant 
application?
    (1) An applicant shall complete standard forms prescribed by the 
Corporation.
    (2) The applicant shall comply with the provisions of Executive 
Order 12372 ``Intergovernmental Review of Federal Programs,'' (3 CFR, 
1982 Comp., p.197) in 45 CFR Part 1233, and any other applicable 
requirements.
    (c) Who reviews the merits of an application and how is a grant 
awarded?
    (1) The Corporation reviews and determines the merit of an 
application by its responsiveness to published guidelines and to the 
overall purpose and objectives of the program. When funds are 
available, the Corporation awards a grant in writing to each applicant 
whose grant proposal provides the best potential for serving the 
purpose of the program. The award will be documented by Notice of Grant 
Award (NGA).
    (2) The Corporation and the sponsoring organization are the parties 
to the NGA. The NGA will document the sponsor's commitment to fulfill 
specific programmatic objectives and financial obligations. It will 
document the extent of the Corporation's obligation to provide 
financial support to the sponsor.
    (d) What happens if the Corporation rejects an application? The 
Corporation will return an application that is not approved for funding 
to the applicant with an explanation of the Corporation's decision.
    (e) For what period of time does the Corporation award a grant? The 
Corporation awards a Foster Grandparent grant for a specified period 
that is usually 12 months in duration.


Sec. 2552.92  What are project funding requirements?

    (a) Is non-Corporation support required? A Corporation grant may be 
awarded to fund up to 90 percent of the cost of development and 
operation of a Foster Grandparent project. The sponsor is required to 
contribute at least 10 percent of the total project cost from non-
Federal sources or authorized Federal sources.
    (b) Under what circumstances does the Corporation allow less than 
the 10 percent non-Corporation support? The Corporation may allow 
exceptions to the 10 percent local support requirement in cases of 
demonstrated need such as:
    (1) Initial difficulties in the development of local funding 
sources during the first three years of operations; or
    (2) An economic downturn, the occurrence of a natural disaster, or 
similar events in the service area that severely restrict or reduce 
sources of local funding support; or
    (3) The unexpected discontinuation of local support from one or 
more sources that a project has relied on for a period of years.
    (c) May the Corporation restrict how a sponsor uses locally 
generated contributions in excess of the 10 percent non-Corporation 
support required? Whenever locally generated contributions to Foster 
Grandparent projects are in excess of the minimum 10 percent non-
Corporation support required, the Corporation may not restrict the 
manner in which such contributions are expended provided such 
expenditures are consistent with the provisions of the Act.
    (d) Are program expenditures subject to audit? All expenditures by 
the grantee of Federal and non-Federal funds, including expenditures 
from excess locally generated contributions in support of the grant, 
are subject to audit by the Corporation, its Inspector General or their 
authorized agents.
    (e) How are Foster Grandparent cost reimbursements budgeted? The 
total of cost reimbursements for Foster Grandparents, including 
stipends, insurance, transportation, meals, physical examinations, and 
recognition, shall be a sum equal to at least 80 percent of the amount 
of the federal share of the grant award. Federal, required and excess 
non-Corporation resources can be used to make up the amount allotted 
for cost reimbursements.
    (f) May a sponsor pay stipends at a rate different than the rate 
established by the Corporation? A sponsor shall pay stipends at the 
same rate as that established by the Corporation.

[[Page 14132]]

Sec. 2552.93  What are grants management requirements?

    What rules govern a sponsor's management of grants?
    (a) A sponsor shall manage a grant awarded in accordance with:
    (1) The Act;
    (2) Regulations in this part;
    (3) 45 CFR Part 2541, ``Uniform Administrative Requirements for 
Grants and Cooperative Agreements to State and Local Governments'', or 
45 CFR Part 2543, ``Grants and Agreements with Institutions of Higher 
Education, Hospitals, and Other Non-Profit Organizations'';
    (4) The following OMB Circulars, as appropriate A-21, ``Cost 
Principles for Educational Institutions'', A-87, ``Cost Principles for 
State, Local and Indian Tribal Governments'', A-122, ``Cost Principles 
for Non-Profit Organizations'', and A-133, ``Audits of States, Local 
Governments, and Other Non-Profit Organizations'' (OMB circulars are 
available electronically at the OMB homepage www.whitehouse.gov/WH/EOP/
omb); and
    (5) Other applicable Corporation requirements.
    (b) Project support provided under a Corporation grant shall be 
furnished at the lowest possible cost consistent with the effective 
operation of the project.
    (c) Project costs for which Corporation funds are budgeted must be 
justified as being necessary and essential to project operation.
    (d) Other than reimbursement for meals during a normal meal period, 
project funds shall not be used to reimburse volunteers for expenses, 
including transportation costs, incurred while performing their 
volunteer assignments. Equipment or supplies for volunteers on 
assignment are not allowable costs. Assignment-related costs of 
transportation, equipment, supplies, etc. are the responsibility of the 
volunteer station or a third party, and are not an allowable grant 
cost.
    (e) Volunteer expense items, including transportation, meals, 
recognition activities and items purchased at the volunteers' own 
expense and which are not reimbursed, are not allowable as 
contributions to the non-Federal share of the budget.
    (f) Costs of other insurance not required by program policy, but 
maintained by a sponsor for the general conduct of its activities are 
allowable with the following limitations:
    (1) Types and extent of and cost of coverage are according to sound 
institutional and business practices;
    (2) Costs of insurance or a contribution to any reserve covering 
the risk of loss of or damage to Government-owned property are 
unallowable unless the government specifically requires and approves 
such costs; and
    (3) The cost of insurance on the lives of officers, trustees or 
staff is unallowable except where such insurance is part of an employee 
plan which is not unduly restricted.
    (g) Costs to bring a sponsor into basic compliance with 
accessibility requirements for individuals with disabilities are not 
allowable costs.
    (h) Payments to settle discrimination allegations, either 
informally through a settlement agreement or formally as a result of a 
decision finding discrimination, are not allowable costs.
    (i) Written Corporation approval/concurrence is required for the 
following changes in the approved grant:
    (1) Reduction in budgeted volunteer service years.
    (2) Change in the service area.
    (3) Transfer of budgeted line items from Volunteer Expenses to 
Support Expenses. This requirement does not apply if the 80 percent 
volunteer cost reimbursement ratio is maintained.

Subpart J--Non-Stipended Foster Grandparents


Sec. 2552.101  What rule governs the recruitment and enrollment of 
persons who do not meet the income eligibility guidelines to serve as 
Foster Grandparents without stipends?

    Over-income persons, age 60 or over, may be enrolled in FGP 
projects as non-stipended volunteers in communities where there is no 
RSVP project or where agreement is reached with the RSVP project that 
allows for the enrollment of non-stipended volunteers in the FGP 
project.


Sec. 2552.102  What are the conditions of service of non-stipended 
Foster Grandparents?

    Non-stipended Foster Grandparents serve under the following 
conditions:
    (a) They must not displace or prevent eligible low-income 
individuals from becoming Foster Grandparents.
    (b) No special privilege or status is granted or created among 
Foster Grandparents, stipended or non-stipended, and equal treatment is 
required.
    (c) Training, supervision, and other support services and cost 
reimbursements, other than the stipend, are available equally to all 
Foster Grandparents.
    (d) All regulations and requirements applicable to the program, 
with the exception listed in paragraph (f) of this section, apply to 
all Foster Grandparents.
    (e) Non-stipended Foster Grandparents may be placed in separate 
volunteer stations where warranted.
    (f) Non-stipended Foster Grandparents will be encouraged but not 
required to serve an average of 20 hours per week and nine months per 
year. Foster Grandparents will maintain a close person-to-person 
relationship with their assigned children on a regular basis.
    (g) Non-stipended Foster Grandparents may contribute the costs they 
incur in connection with their participation in the program. Such 
contributions are not counted as part of the required non-federal share 
of the grant but may be reflected in the budget column for excess non-
federal resources.


Sec. 2552.103  Must a sponsor be required to enroll non-stipended 
Foster Grandparents?

    Enrollment of non-stipended Foster Grandparents is not a factor in 
the award of new or continuation grants.


Sec. 2552.104  May Corporation funds be used for non-stipended Foster 
Grandparents?

    Federally appropriated funds for FGP shall not be used to pay any 
cost, including any administrative cost, incurred in implementing the 
regulations in this part for non-stipended Foster Grandparents.

Subpart K--Non-Corporation Funded Foster Grandparent Program 
Projects


Sec. 2552.111  Under what conditions can an agency or organization 
sponsor a Foster Grandparent project without Corporation funding?

    An eligible agency or organization who wishes to sponsor a Foster 
Grandparent project without Corporation funding, must sign a Memorandum 
of Agreement with the Corporation that:
    (a) Certifies its intent to comply with all Corporation 
requirements for the Foster Grandparent Program; and
    (b) Identifies responsibilities to be carried out by each party.


Sec. 2552.112  What benefits are a non-Corporation funded project 
entitled to?

    The Memorandum of Agreement entitles the sponsor of a non-
Corporation funded project to:
    (a) All technical assistance and materials provided to Corporation-
funded Foster Grandparent projects; and
    (b) The application of the provisions of 42 U.S.C. 5044 and 5058.


Sec. 2552.113  What financial obligation does the Corporation incur for 
non-Corporation funded projects?

    Entry into a Memorandum of Agreement with, or issuance of an NGA

[[Page 14133]]

to a sponsor of a non-Corporation funded project, does not create a 
financial obligation on the part of the Corporation for any costs 
associated with the project, including increases in required payments 
to Foster Grandparents that may result from changes in the Act or in 
program regulations.


Sec. 2552.114  What happens if a non-Corporation funded sponsor does 
not comply with the Memorandum of Agreement?

    A non-Corporation funded project sponsor's noncompliance with the 
Memorandum of Agreement may result in suspension or termination of the 
Corporation's agreement and all benefits specified in Sec. 2552.112.

Subpart L--Restrictions and Legal Representation


Sec. 2552.121  What legal limitations apply to the operation of the 
Foster Grandparent Program and to the expenditure of grant funds?

    (a) Political activities. (1) No part of any grant shall be used to 
finance, directly or indirectly, any activity to influence the outcome 
of any election to public office, or any voter registration activity.
    (2) No project shall be conducted in a manner involving the use of 
funds, the provision of services, or the employment or assignment of 
personnel in a matter supporting or resulting in the identification of 
such project with:
    (i) Any partisan or nonpartisan political activity associated with 
a candidate, or contending faction or group, in an election; or
    (ii) Any activity to provide voters or prospective voters with 
transportation to the polls or similar assistance in connection with 
any such election; or
    (iii) Any voter registration activity, except that voter 
registration applications and nonpartisan voter registration 
information may be made available to the public at the premises of the 
sponsor. But in making registration applications and nonpartisan voter 
registration information available, employees of the sponsor shall not 
express preferences or seek to influence decisions concerning any 
candidate, political party, election issue, or voting decision.
    (3) The sponsor shall not use grant funds in any activity for the 
purpose of influencing the passage or defeat of legislation or 
proposals by initiative petition, except:
    (i) In any case in which a legislative body, a committee of a 
legislative body, or a member of a legislative body requests any 
volunteer in, or employee of such a program to draft, review or testify 
regarding measures or to make representation to such legislative body, 
committee or member; or
    (ii) In connection with an authorization or appropriations measure 
directly affecting the operation of the FGP.
    (b) Non-displacement of employed workers. A Foster Grandparent 
shall not perform any service or duty or engage in any activity which 
would otherwise be performed by an employed worker or which would 
supplant the hiring of or result in the displacement of employed 
workers, or impair existing contracts for service.
    (c) Compensation for service. (1) An agency or organization to 
which NSSC volunteers are assigned, or which operates or supervises any 
NSSC program shall not request or receive any compensation from NSSC 
volunteers or from beneficiaries for services of NSSC volunteers.
    (2) This section does not prohibit a sponsor from soliciting and 
accepting voluntary contributions from the community at large to meet 
its local support obligations under the grant or from entering into 
agreements with parties other than beneficiaries to support additional 
volunteers beyond those supported by the Corporation grant.
    (3) A Foster Grandparent volunteer station may contribute to the 
financial support of the FGP. However, this support shall not be a 
required precondition for a potential station to obtain Foster 
Grandparent service.
    (4) If a volunteer station agrees to provide funds to support 
additional Foster Grandparents or pay for other Foster Grandparent 
support costs, the agreement shall be stated in a written Memorandum of 
Understanding. The sponsor shall withdraw services if the station's 
inability to provide monetary or in-kind support to the project under 
the Memorandum of Understanding diminishes or jeopardizes the project's 
financial capabilities to fulfill its obligations.
    (5) Under no circumstances shall a Foster Grandparent receive a fee 
for service from service recipients, their legal guardian, members of 
their family, or friends.
    (d) Labor and anti-labor activity. The sponsor shall not use grant 
funds directly or indirectly to finance labor or anti-labor 
organization or related activity.
    (e) Fair labor standards. A sponsor that employs laborers and 
mechanics for construction, alteration, or repair of facilities shall 
pay wages at prevailing rates as determined by the Secretary of Labor 
in accordance with the Davis-Bacon Act, as amended, 40 U.S.C. 276a.
    (f) Nondiscrimination. A sponsor or sponsor employee shall not 
discriminate against a Foster Grandparent on the basis of race, color, 
national origin, sex, age, religion, or political affiliation, or on 
the basis of disability, if the Foster Grandparent with a disability is 
qualified to serve.
    (g) Religious activities. A Foster Grandparent or a member of the 
project staff funded by the Corporation shall not give religious 
instruction, conduct worship services or engage in any form of 
proselytization as part of his or her duties.
    (h) Nepotism. Persons selected for project staff positions shall 
not be related by blood or marriage to other project staff, sponsor 
staff or officers, or members of the sponsor Board of Directors, unless 
there is written concurrence from the community group established by 
the sponsor under Subpart B of this part and with notification to the 
Corporation.


Sec. 2552.122  What legal coverage does the Corporation make available 
to Foster Grandparents?

    It is within the Corporation's discretion to determine if Counsel 
is employed and counsel fees, court costs, bail and other expenses 
incidental to the defense of a Foster Grandparent are paid in a 
criminal, civil or administrative proceeding, when such a proceeding 
arises directly out of performance of the Foster Grandparent's 
activities pursuant to the Act. The circumstances under which the 
Corporation may pay such expenses are specified in 45 CFR part 1220.

    Dated: March 15, 1999.
Thomas L. Bryant,
Acting General Counsel.
[FR Doc. 99-6630 Filed 3-23-99; 8:45 am]
BILLING CODE 6050-28-P