[Federal Register Volume 66, Number 39 (Tuesday, February 27, 2001)]
[Notices]
[Pages 12688-12721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-4242]



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Part V





Department of Health and Human Services





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Administration for Children and Families



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Request for Applications Under the Office of Community Services' Fiscal 
Year 2001 Assets for Independence Demonstration Program (IDA Program); 
Notice

  Federal Register / Vol. 66 , No. 39 / Tuesday, February 27, 2001 / 
Notices  

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

[Program Announcement No. OCS-2001-04]


Request for Applications Under The Office of Community Services' 
Fiscal Year 2001 Assets for Independence Demonstration Program (IDA 
Program)

AGENCY: Office of Community Services (OCS), Administration for Children 
and Families, Department of Health and Human Services

ACTION: Announcement of availability of funds and request for 
competitive applications under the Office of Community Services' Assets 
for Independence Demonstration Program.

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SUMMARY: The Administration for Children and Families (ACF), Office of 
Community Services (OCS), invites eligible entities to submit 
competitive grant applications for new demonstration projects that will 
establish, implement, and participate in the evaluation of Individual 
Development Accounts for lower income individuals and families. 
Applications will be screened and competitively reviewed as indicated 
in this Program Announcement. Awards will be contingent on the outcome 
of the competition and the availability of funds.

DATES: To be considered for funding applications must be postmarked on 
or before June 12, 2001. Applications postmarked after that date will 
not be accepted for consideration. See Part IV of this announcement for 
more information on submitting applications.

FOR FURTHER INFORMATION CONTACT: Sheldon Shalit (202) 401-4807, 
[email protected], or Richard Saul (202) 401-9341, 
[email protected], Department of Health and Human Services, 
Administration for Children and Families, Office of Community Services, 
370 L'Enfant Promenade, SW, Washington, DC, 20447.
    In addition, this Announcement is accessible on the OCS WEBSITE for 
reading or downloading at: http://www.acf.dhhs.gov/programs/ocs/ under 
``Funding Opportunities.''
    The Catalog of Federal Domestic Assistance (CFDA) number for this 
program is 93.602. The title is Assets for Independence Demonstration 
Program (IDA Program).

SUPPLEMENTARY INFORMATION: This program announcement consists of seven 
parts plus Attachments:
    Part I: Background Information: Legislative authority, program 
purpose, project goals, definition of terms, and program evaluation.
    Part II: Program Objectives and Requirements: Program priority 
areas, eligible applicants, project and budget periods, funds 
availability and grant amounts, project eligibility and requirements, 
non-Federal matching funds requirements, preferences, multiple 
applications, treatment of program income, and agreements with 
partnering financial institutions.
    Part III: The Project Description, Program Proposal Elements and 
Review Criteria: Purpose, project summary/abstract; objectives and need 
for assistance, results or benefits expected, approach, organizational 
profiles, budget and budget justification, non-Federal resources, and 
evaluation criteria.
    Part IV: Application Procedures: Application development/
availability of forms, application submission, intergovernmental 
review, initial OCS screening, consideration of applications, and 
funding reconsideration.
    Part V: Instructions for Completing Application Forms: SF424, 
SF424A, SF424B.
    Part VI: Contents of Application and Receipt Process: Content and 
order of program application, acknowledgment of receipt.
    Part VII: Post Award Information and Reporting Requirements: 
Notification of grant award, attendance at technical assistance and 
evaluation workshops/conferences, reporting requirements, audit 
requirements, prohibitions and requirements with regard to lobbying, 
applicable Federal regulations.
    Attachments: Application forms and required attachments.

Paperwork Reduction Act of 1995

    Public reporting burden for this collection of information is 
estimated to average 10 hours per response, including the time for 
reviewing instructions, gathering and maintaining the data needed and 
reviewing the collection information.
    The project description is approved under OMB control number 0970-
0139 which expires 12/31/2003.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number.

Part I. Background Information

A. Legislative Authority

    The Assets for Independence Demonstration Program (IDA Program) was 
established by the Assets for Independence Act (AFI Act), under Title 
IV of the Community Opportunities, Accountability, and Training and 
Educational Services Act of 1998 (Pub. L. 105-285, 42 U.S.C. 604 Note), 
as amended.

B. Program Purpose

    The purpose of the program is, in the language of the AFI Act: to 
provide for the establishment of demonstration projects designed to 
determine:
    (1) The social, civic, psychological, and economic effects of 
providing to individuals and families with limited means an incentive 
to accumulate assets by saving a portion of their earned income;
    (2) The extent to which an asset-based policy that promotes saving 
for postsecondary education, homeownership, and microenterprise 
development may be used to enable individuals and families with limited 
means to increase their economic self-sufficiency; and
    (3) The extent to which an asset-based policy stabilizes and 
improves families and the community in which the families live.
    There are some 300 IDA programs of various designs operating today 
in different communities across the country. Most are quite new and all 
are in the process of learning what design features work best with a 
variety of circumstances and target populations. Applicants are 
encouraged to contact these programs to see what might be learned from 
their experiences: what pitfalls to avoid, what successes might be 
emulated or adapted. An excellent source of information and discussion 
about existing IDA programs is the website operated by the Corporation 
for Enterprise Development (CFED), and its ``IDA Learning Network'' and 
related ListServe. These can be reached at www.idanetwork.org. In 
addition, the OCS Demonstration Division expects its website to be up 
in February 2001 at www.acf.dhhs.gov/programs/ocs/demo.

C. Project Goals

    The ultimate goals of the projects to be funded under the Assets 
for Independence Demonstration Program are:
    (1) To create, through project activities and interventions, 
meaningful asset accumulation opportunities for households eligible for 
Temporary Assistance for Needy Families (TANF) and other eligible 
individuals and working families.
    (2) To evaluate the projects to demonstrate the effectiveness of 
these activities and interventions and of the

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project designs through which they were implemented, and the extent to 
which an asset-based program can lead to economic self-sufficiency of 
members of the communities served through one or more qualified 
expenses; and
    (3) Thus to make it possible to determine the social, civic, 
psychological, and economic effects of providing to individuals and 
families with limited means an incentive to accumulate assets by saving 
a portion of their earned income, and the extent to which an asset-
based policy stabilizes and improves families and the community in 
which the families live.

D. Definition of Terms

    For the purposes of this Announcement:
    (1) AFI Act means the Assets for Independence Act (Title IV of the 
Community Opportunities, Accountability, and Training and Educational 
Services Act of 1998, as amended) which authorizes this program.
    (2) Custodial Account means an alternative structure to a Trust for 
the establishment of an Individual Development Account, as described in 
PART II, Section G(5).
    (3) Eligible Individual means an individual who meets the income 
and net worth requirements of the program as set forth in PART II, 
Section G(3)(a) below.
    (4) Emergency Withdrawal means a withdrawal of only those funds, or 
a portion of those funds, deposited by the eligible individual (Project 
Participant) in an Individual Development Account of such individual. 
Such withdrawal must be approved by the Project Grantee, must be made 
for an allowable purpose as defined in the AFI Act and under the 
Project Eligibility Requirements set forth in Part II of this 
Announcement, and must be repaid by the individual Project Participant 
within 12 months of the withdrawal. [See Part II, Section G(7)(b)]
    (5) Household means all individuals who share use of a dwelling 
unit as primary quarters for living and eating separate from other 
individuals.
    (6) Individual Development Account (IDA) means a trust or a 
custodial account created or organized in the United States exclusively 
for the purpose of paying the qualified expenses of an eligible 
individual, or enabling the eligible individual to make an emergency 
withdrawal, but only if the written governing instrument creating the 
trust or custodial account meets the requirements of the AFI Act and of 
the Project Eligibility and Requirements set forth in this 
Announcement. [See Part II, Section G(4) and (5).]
    (7) Net Worth of a Household means the aggregate market value of 
all assets that are owned in whole or in part by any member of the 
household, exclusive of the primary dwelling unit and one motor vehicle 
owned by a member of the household, minus the obligations or debts of 
any member of the household.
    (8) Project Grantee means a Qualified Entity as defined in 
paragraph (11) below, which receives a grant pursuant to this 
Announcement.
    (9) Project participant means an Eligible Individual as defined in 
paragraph (3) above who is selected to participate in a demonstration 
project by a qualified entity.
    (10) Project Year means, with respect to a funded demonstration 
project, any of the 5 consecutive 12-month periods beginning on the 
date the project is originally awarded a grant by ACF.
    (11) Qualified Entity means an entity eligible to apply for and 
operate an assets for independence demonstration project, under 
Priority Area 1.0, as one or more not-for-profit 501(c)(3) tax exempt 
organizations, or a State or local government agency or a tribal 
government submitting an application jointly with such a not-for-profit 
organization, or an entity that--
    (I) is--
    (a) a credit union designated as a low-income credit union by the 
National Credit Union Administration (NCUA); or
    (b) an organization designated as a community development financial 
institution (CDFI) by the Secretary of the Treasury (or the Community 
Development Financial Institutions Fund); and
    (II) can demonstrate a collaborative relationship with a local 
community-based organization whose activities are designed to address 
poverty in the community and the needs of community members for 
economic independence and stability.
    (12) Qualified Expenses means one or more of the expenses for which 
payment may be made from an individual development account by a project 
grantee on behalf of the eligible individual in whose name the account 
is held, and is limited to expenses of (A) post-secondary education, 
(B) first home purchase, and/or (C) business capitalization, as defined 
below:
    (A) Post-Secondary Educational Expenses means post-secondary 
educational expenses paid from an individual development account 
directly to an eligible educational institution, and includes:
    (i) Tuition and Fees required for the enrollment or attendance of a 
student at an eligible educational institution.
    (ii) Fees, Books, Supplies, and Equipment required for courses of 
instruction at an eligible educational institution, including a 
computer and necessary software.
    (iii) Eligible Educational Institution means the following:
    (I) Institution of Higher Education--An institution described in 
Section 101 or 102 of the Higher Education Act of 1965.
    (II) Post-Secondary Vocational Education School--An area vocational 
education school (as defined in subparagraph (C) or (D) of section 
521(4) of the Carl D. Perkins Vocational and Applied Technology 
Education Act (20 U.S.C. 2471(4)) which is in any State (as defined in 
section 521(33) of such Act) as such sections are in effect on the date 
of enactment of the AFI Act.
    (B) First-Home Purchase means qualified acquisition costs with 
respect to a principal residence for a qualified first-time homebuyer, 
if paid from an individual development account directly to the persons 
to whom the amounts are due. Within this definition:
    (i) Principal Residence means a main residence, the qualified 
acquisition costs of which do not exceed 120 percent of the average 
purchase price applicable to a comparable residence in the area.
    (ii) Qualified Acquisition Costs means the cost of acquiring, 
constructing, or reconstructing a residence, including usual or 
reasonable settlement, financing, or other closing costs.
    (iii) Qualified First-Time Homebuyer means an individual 
participating in the project involved (and, if married, the 
individual's spouse) who has no present ownership interest in a 
principal residence during the 3-year period ending on the date on 
which a binding contract is entered into for purchase of the principal 
residence to which this subparagraph applies.
    (C) Business Capitalization means amounts paid from an individual 
development account directly to a business capitalization account that 
is established in a Qualified Financial Institution and is restricted 
to use solely for qualified business capitalization expenses of the 
eligible individual in whose name the account is held. Within this 
definition:
    (i) Qualified Business Capitalization Expenses means qualified 
expenditures for the capitalization of a qualified business pursuant to 
a qualified plan, when so certified by a Qualified Entity (Grantee) as 
meeting the requirements of sub-paragraphs (ii), (iii), and (iv) below.

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    (ii) Qualified Expenditures means expenditures included in a 
qualified plan, including but not limited to capital, plant, equipment, 
working capital, and inventory expenses.
    (iii) Qualified Business means any business that does not 
contravene any law or public policy (as determined by the Secretary).
    (iv) Qualified Plan means a business plan, or a plan to use a 
business asset purchased, which--
    (I) is approved by a financial institution, a microenterprise 
development organization, or a nonprofit loan fund having demonstrated 
fiduciary integrity;
    (II) includes a description of services or goods to be sold, a 
marketing plan, and projected financial statements; and
    (III) may require the eligible individual to obtain the assistance 
of an experienced entrepreneurial advisor.
    (D) Transfers to IDAs of Family Members--Amounts paid from an 
individual development account directly into another such account 
established for the benefit of an eligible individual who is--
    (i) the individual's spouse; or
    (ii) any dependent of the individual with respect to whom the 
individual is allowed a deduction under section 151 of the Internal 
Revenue Code of 1986.
    (13) Qualified Financial Institution means a Federally insured 
Financial Institution, or a State insured Financial Institution if no 
Federally insured Financial Institution is available.
    (14) Qualified Savings of the Individual for the Period means the 
aggregate of the amounts contributed by an eligible individual from 
earned income to the individual development account of the individual 
during the period.
    (15) Secretary means the Secretary of Health and Human Services, 
acting through the Director of the Office of Community Services.
    (16) Tribal Government means a tribal organization, as defined in 
section 4 of the Indian Self-Determination and Education Assistance Act 
(24 U.S.C. 450b) or a Native Hawaiian organization, as defined in 
section 9212 of the Native Hawaiian Education Act (20 U.S.C. 7912).
    (17) Trust Agreement means the instrument by which an Individual 
Development Account is established as a trust in the partnering 
Financial Institution under Part II Section G(4).
    (18) Trustee means the Qualified Financial Institution responsible 
for management of an Individual Development Account established as a 
trust pursuant to a Trust Agreement.

E. Program Evaluation

    Section 414 of the Assets for Independence Act requires that the 
Secretary enter into a contract with an independent research 
organization to evaluate the demonstration projects conducted under the 
Act, individually and as a group, including evaluating all qualified 
entities participating in and sources providing funds for the 
demonstration projects conducted under the AFIA Act. To support this 
evaluation, the AFIA also provides that not less than 2% of funds in 
the Reserve Fund be used by grantees to provide the independent 
research organization with such information regarding the demonstration 
project as may be required for the evaluation. The Secretary has 
contracted with Abt Associates, in Cambridge, Massachusetts, to carry 
out the required evaluation. OCS and ACF's Office of Planning, Research 
and Evaluation (OPRE) have worked together with the contractor in the 
development of an evaluation design whose implementation will get 
underway in the Spring of 2001.
    Section 414 also lists the factors to be addressed by the research 
organization in its evaluation, which include:
    (1) The effect of incentives and institutional support on savings 
behavior;
    (2) The savings rates of individuals based on demographic 
characteristics and income;
    (3) The economic, civic, psychological and social effects of asset 
accumulation and how such effects vary among different populations or 
communities;
    (4) The effects of IDA's on savings rates, home ownership, level of 
post secondary education attained, and self-employment, and how such 
effects vary among different populations or communities;
    (5) The potential financial returns to the Federal Government and 
to other public and private sector investors in IDA's over a 5 and 10 
year period;
    (6) The lessons to be learned from the demonstration projects and 
if a permanent program of IDA's should be established; and
    (7) Such other factors as the Secretary may prescribe.
    The section then stipulates that in evaluating any demonstration 
project under the AFIA, the research organization shall, before, during 
and after the project, obtain such quantitative data as are necessary 
to evaluate the program thoroughly. To this end OCS and its technical 
assistance contractor, PeopleWorks, Inc., have worked with OPRE and the 
research organization to develop a reporting format for AFIA grantees, 
and expect to make available to all grantees an Asset Development 
Information System to facilitate the maintenance, collection, 
verification and reporting of the data. In addition, section 414 
directs that the research organization shall develop a qualitative 
assessment, derived from sources such as in-depth interviews, of how 
asset accumulation affects individuals and families.
    Section 414 of the AFIA, as amended, further provides that of the 
funds appropriated for each Fiscal Year, beginning with FY 2001, 
$500,000 will be available to carry out the evaluation.

Part II. Program Objectives and Requirements

    The Office of Community Services (OCS) invites qualified entities 
to submit competing grant applications for new demonstration projects 
that will establish, support, manage, and participate in the evaluation 
of Individual Development Accounts for eligible participants among 
lower income individuals and working families.

A. Program Priority Areas

    There is one Program Priority Area under this program for Fiscal 
Year 2001: Priority Area 1.0, under which OCS will accept applications 
from Qualified Entities as described below and in Section G. 
Applications for continuation of grants funded under Priority Area 2.0 
of the Fiscal Year 1999 Assets For Independence Program Announcement 
are not covered by this Program Announcement; but will be the subject 
of direct correspondence between OCS and the grantees.

B. Eligible Applicants

    (1) In general. Eligible applicants for the Assets for Independence 
Demonstration Program Priority Area 1.0 are one or more not-for-profit 
501(c)(3) tax exempt organizations, or a State or local government 
agency or a tribal government submitting an application jointly with 
such a not-for-profit organization, or an entity that--
    (I) is--
    (a) a credit union designated as a low-income credit union by the 
National Credit Union Administration (NCUA); or
    (b) an organization designated as a community development financial 
institution by the Secretary of the Treasury (or the Community 
Development Financial Institutions Fund); and
    (II) can demonstrate a collaborative relationship with a local 
community-

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based organization whose activities are designed to address poverty in 
the community and the needs of community members for economic 
independence and stability.
    Not-for-profit Applicants, including those filing jointly with 
government agencies or Tribal Governments, must provide documentation 
of their tax exempt status. The applicant can accomplish this by 
providing a copy of the applicant's listing in the Internal Revenue 
Service's (IRS) most recent list of tax-exempt organizations described 
in Section 501(c)(3) of the IRS code or by providing a copy of their 
currently valid IRS tax exemption certificate. Failure to provide 
evidence of Section 501(c)(3) tax exempt status will result in 
rejection of the application. Similarly, eligible credit unions and 
CDFI's must provide written documentation of their status and evidence 
of their collaborative relationship with an appropriate local 
community-based organization.
    (2) Applications submitted jointly by state or local government 
agencies or tribal governments and tax exempt non-profit organizations. 
Joint applications by government agencies and non-profit organizations 
must clearly identify the joint applicants; and the SF 424 Application 
for Federal Assistance must be signed by one of the joint applicants. 
The applicant signing the SF 424 will be responsible for proper 
implementation of the grant in accordance with the approved work 
program and the terms and conditions of the grant. (It may be either 
the government agency applicant or a non-profit applicant). In either 
case, a Reserve Fund must be established for the Project by a non-
profit Joint Applicant, and maintained and managed as agreed by the 
Joint Applicants. The Reserve Fund must be established in accordance 
with Section G, Paragraphs (1) and (2), below; and where the project 
includes a group or consortium of operating partners, may include both 
a central and local Reserve Funds as described there. Such joint 
applications must also include:
    (a) proof of tax exempt status of the non-profit Joint Applicant, 
as described in Paragraph (1), above; and
    (b) a Joint Applicant Agreement, signed by the responsible 
officials of both Joint Applicants, setting forth the responsibilities 
of each Joint Applicant for implementation of the proposed project, 
including management and oversight of the Reserve Fund and carrying out 
of the project activities and interventions described in Element II of 
the proposal narrative. (See Part III, below.) The Joint Applicant 
Agreement should be the first Appendix to the Application, and the 
responsibilities it sets out should be described in the Project 
Narrative under Elements I and II, Part III, Section I Evaluation 
Criteria (below).
    (3) Applications submitted by a lead agency on behalf of a 
consortium of partnering organizations. Where the Applicant is applying 
as the lead agency for a consortium or group of partnering 
organizations, each of these organizations must be briefly described in 
the Application, and background materials citing their relevant 
experience and staff capabilities should be included in the Appendix. 
In such cases the Applicant should document its capability and 
experience in managing such consortia, and the roles and 
responsibilities of all Participating agencies should be clearly set 
forth in signed Partnering Agreements between the Applicant and each of 
the Partnering members. Copies of the Partnering Agreements should be 
included in the Appendix, and the roles and responsibilities of each 
participating agency clearly explained in Part III, Element I and 
Element II(b), Project Design, and reflected in the Work Plan under 
Element II(d). These explanations must include the plans for 
establishing one or more Reserve Fund(s), and how and where IDA 
Accounts and Parallel Match Accounts will be maintained, as reflected 
in the Financial Institution Agreement(s)/Statement of Policy under 
Part III, Element II(c). (See also Section G. Paragraph (1), and 
Section M, below.)

C. Project and Budget Periods under Priority Area 1.0

    This announcement is inviting applications under Priority Area 1.0 
for project and budget periods of five (5) years. Grant actions, on a 
competitive basis, will award funds for the full five year project and 
budget period. As noted below in Section E., subject to the 
availability of funds, grantees may be offered the opportunity to 
submit applications for supplementary funding in later years during the 
five-year project.


    Note: Applicants should be aware that OCS funds awarded pursuant 
to this Announcement will be from FY 2001 funds and may not be 
expended after the end of the five-year Project/Budget Period to 
support administration of the project or matching contributions to 
Individual Development Accounts which may be open at that time. 
Consequently, Applicants should consider carefully the length of 
time participants will need to achieve their savings goals and at 
what point in the project they may wish to discontinue the opening 
of new accounts. Consequently, and as noted below, deposit of non-
Federal share funds needs to be carried out on a schedule consistent 
with the planned schedule of new account opening. Applicants should 
provide assurance that in every case provision will be made for 
payment of all promised matching deposits to IDA accounts opened by 
project participants in the course of the demonstration project.

D. Funds Availability and Grant Amounts under Priority Area 1.0

    In Fiscal Year 2001 OCS expects approximately $13 million to be 
available under Priority Area 1.0 for funding commitments to 
approximately 45 new projects, generally not to exceed $500,000 each 
for the five-year project and budget periods. However, in special 
circumstances where applicants have secured over $500,000 in non-
Federal share contributions which they will lose if not able to secure 
a Federal grant of equal amount, applications for up to $1 million will 
be considered; but the agency would prefer to limit initial grants to 
not more than $500,000, with the possibility open to additional 
supplemental funding in years two and three of the project. Applicants 
are reminded that grant awards are limited to the amount of committed 
non-Federal cash matching contributions; and that OCS recognizes that 
this is a limiting factor in the amount of grant funds requested. 
Applicants are assured that OCS will welcome requests for less than the 
maximum grant amounts, and are urged to make realistic projections of 
project activity over the five year project and propose project budgets 
accordingly. As in the past, subject to the availability of funds and 
the progress of individual demonstration projects, grantees that have 
raised additional cash non-Federal share contributions may be given the 
opportunity to request supplementary funding in later years during the 
five-year project. Draw-down of grant funds over the five-year budget 
period may be made in amounts that will match non-Federal deposits into 
the Project Reserve Fund. (See Section G. Paragraph (2) and Section I, 
below).

E. Funds Availability for Supplementing FY 1999 and 2000 Grantees

    As explained in the FY 1999 and 2000 Assets for Independence 
Program Announcements and noted above, subject to availability of funds 
and the progress of individual demonstration projects, grantees may be 
offered the opportunity to submit requests for supplementary funding 
during the five-year project, if there were a determination that this 
would be in the best interest of the government. Pursuant to those 
Announcements, approximately $7 million of FY 2001 funds will in like 
manner be made

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available for supplementary grants to FY 1999 and 2000 grantees which 
will be solicited directly by OCS. Any funds not expended for 
supplementary grants will be available for new project grants under 
Priority Area 1.0, and vice versa.

F. Funds Availability and Grant Amounts for Continuation Funding of 
Grandfathered State Grantees (FY 1999 Priority Area 2.0 Grantees: 
Indiana and Pennsylvania)

    In Fiscal Year 2001 up to approximately $2 million is expected to 
be available under Priority Area 2.0 for up to two continuation grants 
not to exceed $1 million each for the third budget year of a five-year 
State project funded under Priority Area 2.0 of the FY 1999 Assets for 
Independence Program Announcement. Any funds not expended in FY 2001 
for these Continuation Grants will be available for project grants 
under Priority Area 1.0 or for supplementary grants as described above 
in Paragraph E.

G. Project Eligibility and Requirements under Priority Area 1.0

    To be eligible for funding under Priority Area 1.0, projects must 
be sponsored and managed by Qualified Entities and must meet the 
following requirements:
(1) Reserve Fund
    Every project funded under this Announcement must establish and 
maintain a Reserve Fund in accordance with this paragraph. Such Reserve 
Fund must be maintained in accordance with the accounting regulations 
prescribed by the Secretary (See 65 FR 10027, Feb. 25, 2000), in a 
Qualified Financial Institution or other insured financial institution 
satisfactory to the Secretary.


    Note: Where an applicant is lead agency for a consortium or 
group of partnering organizations, each of which will be 
implementing an IDA program under the Applicant's grant pursuant to 
this Announcement, the Applicant/lead agency must maintain a Reserve 
Fund into which all required non-Federal share matching contribution 
funds and OCS grant funds shall be deposited in accordance with sub-
Paragraph (a). The consortium has two alternatives for maintenance 
of Reserve Fund(s) in its IDA programs: First, participating 
organizations may all operate out of the one central Reserve Fund 
maintained by the Applicant/lead agency. In this case separate 
accounting structures would be maintained for each of the 
organizations and the funds assigned for their use in accordance 
with agreements between the Applicant and each organization. Or 
second, in addition to the Central Reserve Fund, participating 
organizations may each establish a local Reserve Fund in their 
community into which the Applicant/lead agency will deposit from the 
Central Reserve Fund the funds (grant and non-Federal share) 
allocated for use by the particular organization. Central and local 
Reserve Funds will be subject to all of the requirements of this 
Section. Whatever the arrangement, it must be spelled out and agreed 
to in the Partnering Agreements required under Section B. Paragraph 
(3) between the Applicant and each consortium member.


    (a) Amounts in the reserve fund. As soon after receipt as is 
practicable, grantees shall deposit in the Reserve Fund the non-Federal 
matching contributions received pursuant to the ``Non-Federal Share 
Agreement'' or Agreements reached with the provider(s) of non-Federal 
matching contributions. Once such non-Federal funds are deposited in 
the Reserve Fund, grantees may draw down OCS grant funds in amounts 
equal to such deposits. Similarly, as soon after receipt as practical, 
grantees shall deposit in the Reserve Fund the income received from any 
investment made of those funds (see paragraph (d) below).
    (b) Use of amounts in the reserve fund. Grantees shall use the 
amounts in such Reserve Fund as follows:
    (A) at least 85% of the federal grant funds, and an equal amount of 
the required non-Federal share funds, shall be used as matching 
contributions, equally divided between federal and non-federal monies, 
to individual development accounts for project participants, in an 
agreed upon ratio to deposits made in those accounts by project 
participants from earned income.
    (B) at least 2% but no more than 15% of the Federal grant funds 
shall be used toward the expense of collecting and providing to the 
research organization evaluating the demonstration project the data and 
information required for the evaluation.
    (C) up to 7.5% of the Federal grant funds may be used for 
administration of the demonstration project and, and an additional 5.5% 
shall go toward non-administrative support expenses of assisting 
project participants to obtain the skills (including economic literacy 
classes, budgeting, and business management skills), training, and 
information necessary to achieve economic self-sufficiency through 
activities requiring qualified expenses. If the cost of such non-
administrative support expenses is less than 5.5% of the Federal grant 
funds, then any unused portion may be used for administrative expenses.
    (D) up to 15% of the required matching non-Federal funds may be 
used for expenses outlined in Paragraphs (B) and (C), above, or other 
project-related expenses as agreed by the Applicant and the providing 
entity.


    Note: If a grantee mobilizes matching non-Federal contributions 
in excess of the required 100 percent match, such non-Federal funds 
may be used however the grantee and provider of the funds may agree. 
Where the use of such funds is proposed within a Program Element/
Proposal Review Criterion which formed the basis for the grant 
award, Grantees will be held accountable for commitments of such 
excess matching funds and additional resources, even though over the 
amount of the required non-Federal match.


    (c) Authority to invest funds. A grantee shall invest the amounts 
in its Reserve Fund that are not immediately needed for payment under 
paragraph (b), in a manner that provides an appropriate balance between 
return, liquidity, and risk, and in accordance with Guidelines which 
will be issued by the Secretary prior to making of grant awards and 
provided to grantees at the time of grant award.
    (d) Use of investment income. Income generated from investment of 
Reserve Fund monies that are not allocated to existing Individual 
Development Accounts may be added by grantees to the funds committed to 
program administration, participant support, or evaluation data 
collection. As noted in Paragraph M, below, once funds have been 
committed as matching contributions to Individual Development Accounts, 
then any income subsequently generated by such funds must be deposited/
credited to the credit of such accounts.


    Note:  No part of such income is to be considered as a Federal 
funds contribution subject to the $2000/$4000 limitations under 
Paragraph (5)(b), below.


    (e) Joint project administration. If two or more qualified entities 
are jointly administering a project, none shall use more than its 
proportional share for the purposes described in subparagraphs (B) and 
(C), of paragraph (b).
(2) Use of Grant Funds by State and Local Government Agencies and 
Tribal Governments.
    As set forth in Section B. Paragraph (2) above, grantees who are 
State or local government agencies or Tribal governments are required 
to submit applications jointly with tax exempt non-profit 
organizations. In such cases, whether the lead applicant signing the SF 
424 is the government agency or the non-profit organization, a Reserve 
Fund must be established for the Project by the non-profit Joint 
Applicant and maintained and managed as agreed by the Joint Applicants. 
The Reserve Fund

[[Page 12693]]

shall be subject to the requirements of Paragraph (1) above, and 
Section I, below.
(3) Eligibility and Selection of Project Participants
    (a) Participant eligibility. Eligibility for participation in the 
demonstration projects is limited to individuals who are members of 
households eligible for assistance under TANF, or of households whose 
adjusted gross income does not exceed the earned income amount 
described in Section 32 of the Internal Revenue Code of 1986, which 
establishes eligibility for the Earned Income Tax Credit (EITC)(taking 
into account the size of the household), or of households whose annual 
income does not exceed 200% of the poverty income guidelines as 
established and published by the Department of Health and Human 
Services, and whose net worth as of the end of the calendar year 
preceding the determination of eligibility does not exceed $10,000, 
excluding the primary dwelling unit and one motor vehicle owned by a 
member of the household.


    Note: The most recent EITC Earned Income Guidelines which set 
the limits on annual income for eligibility in the IDA Program are 
as follows:


--for a household without a child: $10,380.
--for a household with one child: $27,413.
--for a household with more than one child: $31,152.

    The most recent Poverty Income Guidelines (published in February 
2000) are set forth in Attachment M to this Announcement. Annual 
revisions of these Guidelines are normally published in the Federal 
Register in February or early March of each year. Where relevant to IDA 
Project criteria, grantees will be required to apply the most recent 
guidelines throughout the project period. These revised guidelines may 
be obtained at public libraries, Congressional offices, or by writing 
the Superintendent of Documents, U.S. Government Printing Office, 
Washington, DC 20402. They are also accessible on the OCS Website for 
reading and/or downloading (www.acf.dhhs.gov/programs/ocs).
    Applicants are reminded that there is also a net worth assets test 
for eligibility in the program, as noted above.
    (b) Participant Selection. In keeping with the statutory preference 
in Section 405(d)(3) of the AFI Act for applications that target 
individuals from neighborhoods or communities that experience high 
rates of poverty or unemployment, grantees in their selection of 
Project Participants may restrict participation in such neighborhoods 
or communities targeted by their demonstration projects to individuals 
and households with lower incomes and net worth than set forth above, 
provided that they shall nonetheless select individuals who they 
determine are well suited to participate in the demonstration project.
(4) Establishment of Individual Development Accounts
    Project Grantees must create, through written governing 
instruments, either (a) Trusts, under this paragraph, or (b) Custodial 
Accounts described in Paragraph (5) below, which will be Individual 
Development Accounts on behalf of Project Participants. Trustees of 
Trusts must be Qualified Financial Institutions. Custodians of 
Custodial Accounts may be Qualified Financial Institutions, other 
insured financial institutions satisfactory to the Secretary, or 
Demonstration Project Grantees. In every case the Participant's 
personal savings from earned income shall be deposited in the 
Participant's Individual Development Account in a participating insured 
financial Institution, which in the case of Qualified Entities which 
are eligible Credit Unions or CDFI's, may be the Qualified Entity 
itself. In every case where the participating insured financial 
institution and the Demonstration Project Grantee are not one and the 
same, both shall be parties to the written governing instruments 
creating the Trust or Custodial Account. Such instruments must contain 
the following provisions:
    (a) All contributions to the accounts must be either in cash, by 
check, money order, or by electronic transfer of funds.
    (b) The assets of the account will be invested in accordance with 
the direction of the Project Participant after consultation with the 
grantee and pursuant to the guidelines of the Secretary (which will be 
issued prior to the making of grant awards and made available to 
grantees at the time of grant award).
    (c) The assets of the account will not be commingled with other 
property except in a common trust fund or parallel account or common 
investment fund.
    (d) In the event of the death of the Project Participant, any 
balance remaining in the account shall be distributed within 30 days of 
the date of death to another Individual Development Account established 
for the benefit of an eligible individual as directed by the deceased 
Participant in the Savings Plan Agreement under sub-paragraph (g), 
below; provided, that the Participant may at their option direct the 
disposition of any funds in the account which were deposited in the 
account by the Participant as he or she may see fit, except that where 
such disposition is not to another Individual Development Account, all 
matching contributions made by the grantee to the account, and any 
income earned thereby, shall be returned to the Reserve Fund. [Note 
that this will mean that each Project Participant must provide such 
direction at the time the Individual Development Account is 
established. Provision should be made by grantees for modification of 
such directions during the course of the project, in the event of 
changing circumstances.]
    (e) Except in the case of the death of the Project Participant, 
amounts in the account attributable to deposits by the grantee from 
grant funds and matching non-federal contributions, and any interest 
thereon, may be paid, withdrawn or distributed out of the account only 
for the purpose of paying qualified expenses of the Project Participant 
including transfers under Paragraph (7)(d), below).
    (f) The procedures governing the withdrawal of funds from the 
Individual Development Account, for both Qualified Expenses and 
Emergency Withdrawals, must comply with the provisions of Paragraph (7) 
Withdrawals from Individual Development Accounts, below.
    (g) A ``Savings Plan Agreement'' between the grantee and the 
Project Participant, which may be incorporated by reference, and which 
should include: (1) Savings goals (including a proposed schedule of 
savings deposits by the Participant from earned income, which may be 
for a period of less than five years); (2) the rate at which 
participant savings will be matched (from one dollar to eight dollars 
for each dollar in savings deposited by Participant, the Federal grant 
funds portion of which may not exceed $2000 during the five-year 
project period); (3) the proposed qualified expense for which the 
Account is maintained, (4) agreement by the grantee to provide and the 
Participant to attend classes in Economic Literacy; (5) any additional 
training or education related to the qualified expense which the 
Grantee agrees to provide and of which the Participant agrees to 
partake, (6) contingency plans in the event that the Participant 
exceeds or fails to meet projected savings goals or schedules, (7) any 
agreement as to investments of assets described in subparagraph (b), 
above, (8) an explanation of withdrawal procedures and limitations, 
including the consequences of unauthorized withdrawal, (9) provision 
for disposition of the funds in the account

[[Page 12694]]

in the event of the Participant's death (see sub-Paragraph (d), above; 
and (10) provision for amendment of the Agreement with the concurrence 
of both Grantee and Participant.
(5) Custodial Accounts
    As provided in Paragraph (4), above, Grantees may, in the 
alternative, create, through written governing instruments, Custodial 
Accounts which shall be Individual Development Accounts on behalf of 
Project Participants, except that they will not be trusts. As in the 
case of trusts established under paragraph (4), the written governing 
instruments of the accounts must contain the requirements outlined in 
subparagraphs (a) through (g) of that paragraph, with the following 
exceptions. Whereas trustees of the trusts created under Paragraph (4) 
must be Qualified Financial Institutions, the assets of the custodial 
account may be held by a bank or another ``person'' (or institution) 
who demonstrates to the satisfaction of the Secretary that the manner 
in which the account will be administered will be consistent with the 
provisions of the AFI Act, and that the IDA's will be created and 
maintained as described in paragraph (4) and Section 404(5)(A) of the 
AFI Act. In addition, in the case of a custodial account treated as a 
trust by reason of this paragraph, the custodian of such account may be 
the Project Grantee, provided that it can assure compliance with the 
requirements of Paragraph (4) above, and Section 404(5)(A) of the AFI 
Act. These arrangements would place the ``custodial'' responsibilities 
with the grantee, and relieve financial institutions of trustee 
obligations. The Secretary has determined that the assets of any such 
accounts must be held in an insured financial institution and be 
subject to the provisions of Paragraph M, below, pertaining to 
agreements between applicants/grantees and participating financial 
institutions.
    Within the meaning of this OCS Program Announcement, IDA 
``Custodial Accounts'' in which project participants deposit their 
savings may be solely owned by the participant and in the sole name of 
the participant. Funds in the account may only be expended for 
``Qualified Expenses'' or an ``Emergency Withdrawal'' as defined in the 
AFIA and this Program Announcement; and in keeping with this 
restriction, any withdrawals must be approved in writing by a 
responsible official of the project grantee. At the same time, if the 
participant requests approval for an ``unauthorized withdrawal'', that 
is, for other than a ``Qualified Expense'' or ``Emergency Withdrawal'' 
as defined in the AFIA, and Part I, Section D (4) and (12), above, the 
project grantee must agree to approve such an ``Unauthorized 
Withdrawal'', with the explicit understanding on the part of both the 
grantee and the participant, that the participant thereby loses any 
matching funds credited to the account, and must exit the program.
(6) Deposits in Individual Development Accounts
    (a) Matching contributions. Not less than once every three months 
during the demonstration project grantees will make deposits into 
Individual Development Accounts as matching contributions to deposits 
from earned income made by Project Participants during the period since 
the previous deposit. Such deposits may be made either into the 
accounts themselves or into a parallel account maintained by the 
grantee in an insured financial institution (or in the grantee 
institution itself, in the case of grantees which are eligible Credit 
Unions or CDFI's).

    Note: Deposits made by Project Participants shall be deemed to 
have been made from earned income so long as the Participant's 
earned income (as defined in Section 911(d)(2) of the Internal 
Revenue Code of 1986) during the period since the Participant's 
previous deposit in the account is greater than the amount of the 
current deposit.


    Section 911(d)(2) provides, in relevant part, ``the term `earned 
income' means wages, salaries, or professional fees, and other amounts 
received as compensation for personal services actually rendered''.
    Matching contributions (as deposits to IDA accounts or to parallel 
accounts) must be made to IDA's in equal amounts from Federal grant 
funds and the non-Federal public and private funds committed to the 
project as matching contributions, as described in Section I below, and 
Sections 405(c)(4) and 406(b)(1) of the AFI Act. Such matching 
contribution deposits by grantees may be from $0.50 to $4 in non-
Federal funds and an equal amount in Federal grant funds, for each 
dollar of earned income deposited in the account by the Project 
Participant in whose name the account is established. At the time 
matching contribution deposits are made, the grantee will also deposit 
into the Individual Development Account (or the parallel account) any 
interest or income that has accrued since the last deposit on amounts 
previously deposited in or credited to that IDA in the parallel 
account.
    (b) Additional matching contributions. Once such equal matching 
contribution deposits are made, grantees may make additional matching 
contributions to IDA's from other non-Federal sources, or other Federal 
sources, such as TANF, where the legislation or policies governing such 
programs so permit. Such additional matching contributions would not be 
a use of funds falling within any Program Element/Proposal Review 
Criterion under Part III below, which formed the basis for the grant 
award, and as such, grantees will not be held accountable for their 
commitment to the project.
    (c) Limitations on matching contributions. Over the course of the 
five year demonstration, not more than $2,000 in Federal grant funds 
shall be provided through matching contributions to any one individual; 
and not more than $4,000 shall be provided to IDA's in any one 
household. [As noted in Paragraph (1)(d), above, no part of any 
investment income earned by monies in the Reserve Fund or a parallel 
account credited to the Participant is to be considered as a Federal 
funds contribution subject to this limitation.]
(7) Withdrawals From Individual Development Accounts
    (a) Limitations. Under no circumstances may funds be withdrawn from 
an Individual Development Account earlier than six months after the 
initial deposit by a Project Participant in the Account. Thereafter 
funds may be withdrawn from such account only upon written approval of 
the Project Participant and of a responsible official of the project 
grantee, and only for one or more Qualified Expenses (as defined in 
Part I) or for an Emergency Withdrawal. (But see Paragraph (5) 
Custodial Accounts, above, for the Participant's right to make 
``unauthorized withdrawals'' and the consequences thereof.)
    (b) Emergency withdrawals. An Emergency Withdrawal may only be of 
those funds, or a portion of those funds, deposited in the account by 
the Project Participant, and only for the following purposes:
    (i) expenses for medical care or necessary to obtain medical care 
for the Project Participant or a spouse or dependent of the 
Participant;
    (ii) payments necessary to prevent eviction of the Project 
Participant from, or foreclosure on the mortgage for, the principal 
residence of the Participant;
    (iii) payments necessary to enable the Project Participant to meet 
necessary living expenses (food, clothing, shelter--including utilities 
and heating fuel) following loss of employment.

[[Page 12695]]

    (c) Reimbursement of emergency withdrawals. A Project Participant 
shall reimburse an Individual Development Account for any funds 
withdrawn from the account for an Emergency Withdrawal, not later than 
12 months after the date of the withdrawal. If the Participant fails to 
make the reimbursement, the Project Grantee must transfer back to its 
Reserve Fund Federal and non-Federal matching contributions deposited 
into the account or a parallel account, and any income generated 
thereby. Any remaining funds deposited by the Project Participant (plus 
any income generated thereby) shall be returned to such Project 
Participant.
    Applicants are urged to consider the establishment of a separate 
alternative crisis or emergency loan fund that can respond to 
participant emergencies without having them risk putting their IDA in 
jeopardy because of an inability to make reimbursement within the 
required timeframe.
    (d) Transfers to individual development accounts of family members. 
At the request of a Project Participant, and with the written approval 
of a responsible official of the grantee, amounts may be paid from an 
individual development account directly into another such account 
established for the benefit of an eligible individual who is--
    (i) the Participant's spouse, or
    (ii) any dependent of the Participant with respect to whom the 
Participant is allowed a deduction under section 151 of the Internal 
Revenue Code of 1986.
    Note that such transfers may be made to dependents who in turn 
would become IDA project participants who would be able to use these 
funds for any of the Qualified Expenditures defined in Part I. 
Applicants are reminded of the limit of $4000 in Federal IDA matching 
contributions per household.

H. Project Eligibility and Requirements Under Priority Area 2.0

     As previously noted in Part II Section A, there is no Priority 
Area 2.0 under this Announcement. Applications for continuation of 
grants funded under Priority Area 2.0 of the Fiscal Year 1999 Assets 
For Independence Program Announcement will be the subject of direct 
correspondence between OCS and the grantees.

I. Non-Federal Matching Funds Requirements

     Applicants must obtain firm commitments for at least one hundred 
percent of the requested OCS grant amount in cash non-Federal share for 
deposit to the Reserve Fund as matching contribution. Public sector 
resources that can be counted toward the minimum required match include 
funds from State and local governments, and funds from various block 
grants allocated to the States by the Federal Government provided that 
the authorizing legislation for these grants permits such use. Note, 
for example, that Community Development Block Grant (CDBG) funds may be 
counted as matching funds; Community Services Block Grant (CSBG) funds 
may not. With regard to State TANF funds, any State funds that comprise 
Maintenance Of Effort (MOE) under the TANF regulations may NOT be used 
as required non-Federal share under this Announcement. (But see 
discussion of Additional Matching Contributions in Paragraph (6)(a), 
above.)
    To be considered for funding an Application must include a copy of 
a ``Non-Federal Share Agreement'' or Agreements in writing executed by 
the Applicant and the organization or organizations providing the 
required non-Federal matching contributions, signed for the 
organization by a person authorized to make a commitment on behalf of 
the organization, and signed for the Applicant by the person signing 
the SF424. Such Agreement(s) must include: (1) a commitment by the 
organization to provide the non-Federal funds contingent only on the 
grant award; and (2) an agreement as to the schedule of the opening of 
Individual Development Accounts by the Applicant, and the schedule of 
deposits by the organization to the project's Reserve Fund, such that 
the two schedules will together assure that there will be at all times 
in the Reserve Fund non-Federal matching contribution funds sufficient 
to meet the maximum pledges of matching contributions under the 
``Savings Plan Agreements'' for all Individual Development Accounts 
then open and being maintained by the grantee as part of the 
demonstration project.
    Thus, for example, if the provider of non-Federal share only agrees 
to a fixed schedule of deposits, this non-Federal share requirement can 
be met by the Applicant agreeing to a schedule for opening new accounts 
that will assure that new IDA accounts will only be opened when there 
are sufficient funds in the Reserve Fund to meet the maximum amount of 
matching contributions pledged under the ``Savings Plan Agreements''.
    Where the Applicant is itself providing any of the required cash 
non-Federal share, it must include a statement of commitment, on 
applicant letterhead, signed by the official signing the SF 424 and 
countersigned by the Applicant's Board Chairperson or Treasurer, that 
the non-Federal matching funds will be provided, contingent only on the 
OCS grant award, and that non-Federal share deposits to the Reserve 
Fund and the opening of Individual Development Accounts will be 
coordinated so that new accounts will only be opened when there are 
sufficient funds in the Reserve Fund to cover the maximum matching 
requirements of the Savings Plan Agreements.
    With regard to Applicants which are State or local government 
agencies or Tribal governments, submitting jointly with tax exempt non-
profit organizations, note that under Section G Paragraphs (1) and (2), 
above, Reserve Funds are required to be established as in other 
applications/projects.
    OCS has determined that the strict legislative limitations on the 
use of Federal grant funds and of the minimum required non-Federal 
match (under the recent amendments to the AFIA, at least 85% of each 
must go toward matching deposits in Individual Development Accounts) 
mean that important training, counseling and support activities, 
critical to the success of a project, may best be supported by 
additional resources, both of the applicant itself and mobilized by the 
applicant in the community. Consequently, Applicants are encouraged to 
mobilize additional resources, which may be cash or in-kind 
contributions, Federal or non-Federal, for support of project 
administration and assistance to Project Participants in obtaining 
skills, knowledge, and needed support services. (See Part III, Element 
V) Applicants are reminded that they will be held accountable for 
commitments of such additional resources even if over the amount of the 
required non-Federal match.

J. Preferences

    In accordance with the provisions of the AFI Act, in considering an 
application to conduct a demonstration project under this Announcement, 
OCS will give preference to an application that:
    (1) demonstrates the willingness and ability of the applicant to 
select eligible individuals for participation in the project who are 
predominantly from households in which a child (or children) is living 
with the child's biological or adoptive mother or father, or with the 
child's legal guardian.


    Note: Applications that target TANF eligible households will be 
deemed to have met this preference.



[[Page 12696]]


    (2) provides a commitment of non-Federal funds with a 
proportionately greater amount of such funds committed from private 
sector sources; and
    (3) targets individuals residing within one or more relatively 
well-defined neighborhoods or communities (including rural communities) 
that experience high rates of poverty or unemployment.


    Note: Applications which target residents of Empowerment Zones, 
Enterprise Communities, Public Housing, or CDFI Fund-designated 
Distressed Communities will be deemed to have met this preference. 
(For information on CDFI Fund designation of Distressed Communities 
applicants may visit the CDFI Help Desk Website at: http://www.cdfifundhelp.gov.)


    Each of these preferences will be valued at 2 points in the 
Application Review process, so that applicants not meeting these 
preferences will have 2 points subtracted from its score for a given 
Proposal Element for each preference not met. [Preferences (1) and (3) 
fall under Proposal Element II(a); Preference (2) falls under Proposal 
Element V(a)]. In the case of a consortium of organizations operating 
programs funded through a lead agency, if a majority of the 
participating organizations meet these legislative preferences, the 
Application as a whole will be awarded these points.

K. Multiple Applications

    Qualified Entities may submit more than one application for 
different demonstration projects, but no more than one such application 
will be funded to the same Qualified Entity pursuant to this 
Announcement.

L. Treatment of Program Income.

    As noted in Section G Paragraph (1)(d), above, income generated 
from investment of unallocated funds in the Reserve Fund may be added 
to the funds already committed from the Reserve Fund to program 
administration, participant support, or evaluation data collection. 
However, once funds have been committed as matching contributions to 
Individual Development Accounts, then any income subsequently generated 
by such funds must be deposited proportionately to the credit of such 
accounts.

    Note: No part of such income is to be considered as a Federal 
funds contribution subject to the $2000/$4000 limitations under 
Section G Paragraph (6)(c), above.


M. Agreements with Partnering Financial Institutions/Statements of 
Policy

    One of the most critical parts of a successful IDA project is the 
relationship between the project operator and a partnering financial 
institution, be it a bank or credit union. Not only does the financial 
institution provide the situs of the Individual Development Accounts, 
but it also represents for IDA holders their doorway to mainstream 
economic life: savings and checking accounts, ATM machines, payroll 
deduction savings, home mortgages, and the opportunity for credit 
repair, student and business loans, all within a framework of sound 
financial planning. Moreover, many banks see non-Federal share 
contributions to the project's Reserve Fund as sound investments which 
not only offer them tax deductions and CRA credit, but also introduce 
them to a whole new body of potential long-term clients.
    For all these reasons it is vitally important for applicants to 
develop strong and mutually supportive relationships with the financial 
institutions which will be their partners in carrying out the IDA 
project. Thus, all applicants under this Announcement must enter into 
agreements with one or more insured Financial Institutions, in 
collaboration with which Reserve Funds and Individual Development 
Accounts will be established and maintained. [For applicants which are 
eligible Credit Unions or CDFI's, see Note at end of this Section, 
below.]
    To be considered for funding, an Application submitted by other 
than an eligible Credit Union or Community Development Financial 
Institution must include a copy of an Agreement or Agreements with one 
or more partnering insured Financial Institutions which include(s) the 
provisions set out in Part III Element II(c), which state(s) that the 
accounting procedures to be followed in account management will conform 
to Guidelines (CFR Part 74) established by the Secretary (Note: Such 
regulations may be found at 45 CFR part 1000), and under which the 
partnering insured Financial Institution agrees to provide data and 
reports as requested by the applicant. In the case of IDA's established 
as Trusts under Section G Paragraph (4), above, the partnering 
financial institution must be a Qualified Financial Institution as 
defined in PART I Section D(12). In the case of IDA's established as 
Custodial Accounts, the partnering financial institution must be 
insured and must meet the requirements of Section G Paragraph (5), 
above, to the satisfaction of the Secretary. [For applications 
submitted by eligible Credit Unions or Community Development Financial 
Institutions (CDFI's) see Note below.]
    The Agreement may also include other services to be provided by the 
partnering Financial Institution that could strengthen the program, 
such as Financial Education Seminars, favorable pricing or matching 
contributions provided by the Financial Institution, and assistance in 
recruitment of Project Participants. Strong and complete Agreements 
with financial institutions will be recognized in the application 
review process under Sub-Element II(c) of the application Evaluation 
Criteria under Part III, below.


    Note: In the case of applications submitted by eligible Credit 
Unions or Community Development Financial Institutions, where the 
Reserve Fund and IDA accounts are to be held by the applicant 
Institution itself, the applicant must submit, in lieu of a 
Financial Institution Agreement, a Statement of Policy, approved by 
its Board of Directors and attested to by its Chairperson and Chief 
Financial Officer, which meets the requirements set forth in this 
section (M.) and in Part III Sub-Element II(c). This Statement of 
Policy will be considered in the application review process under 
Sub-Element II(c). Where such applicants are proposing the 
establishment of Reserve Fund(s) or IDA's in other partnering 
Financial Institutions, they must submit as part of their 
applications copies of Agreements with such Partnering Financial 
Institution(s) in accordance with this section (M.).

Part III. The Project Description, Program Proposal Elements and 
Review Criteria

A. Purpose

    The project description provides the major means by which an 
application is evaluated and ranked to compete with other applications 
for available assistance. The project description should be concise and 
complete and should address the activity for which Federal funds are 
being requested. Supporting documents should be included where they can 
present information clearly and succinctly. Applicants are encouraged 
to provide information on their organizational structure, staff, 
related experience, and other information considered to be relevant. 
Awarding offices use this and other information to determine whether 
the applicant has the capability and resources necessary to carry out 
the proposed project. It is important, therefore, that this information 
be included in the application. However, in the narrative the applicant 
must distinguish between resources directly

[[Page 12697]]

related to the proposed project from those that will not be used in 
support of the specific project for which funds are requested.

B. Project Summary/Abstract

    Provide a summary of the project description (a page or less) with 
reference to the funding request.

C. Objectives and Need for Assistance

    Clearly identify the physical, economic, social, financial, 
instructional, and/or other problem(s) requiring a solution. The need 
for assistance must be demonstrated and the principal and subordinate 
objectives of the project must be clearly stated; supporting 
documentation, such as letters of support and testimonials from 
concerned interests other than the applicant, may be included. Any 
relevant data based on planning studies should be included or referred 
to in the endnotes/footnotes. Incorporate demographic data and 
participant/beneficiary information, as needed. In developing the 
project description, the applicant may volunteer or be requested to 
provide information on the total range of projects currently being 
conducted and supported (or to be initiated), some of which may be 
outside the scope of the program announcement.

D. Results or Benefits Expected

    Identify the results and benefits to be derived. For example, 
describe the population to be recruited to the IDA program, how many 
accounts are projected to be opened, what qualified expenses are 
expected to be achieved, and how they will assist participants to move 
towards self-sufficiency.

E. Approach

    Outline a plan of action which describes the scope and detail of 
how the proposed work will be accomplished. Account for all functions 
or activities identified in the application. Cite factors which might 
accelerate or decelerate the work and state your reason for taking the 
proposed approach rather than others. Describe any unusual features of 
the project such as design or technological innovations, reductions in 
cost or time, or extraordinary social and community involvement.
    Provide quantitative monthly or quarterly projections of the 
accomplishments to be achieved for each function or activity in such 
terms as the number of people to be served and the number of accounts 
opened. When accomplishments cannot be quantified by activity or 
function, list them in chronological order to show the schedule of 
accomplishments and their target dates.
    If any data is to be collected, maintained, and/or disseminated, 
clearance may be required from the U.S. Office of Management and Budget 
(OMB). This clearance pertains to any ``collection of information that 
is conducted or sponsored by ACF''.
    List organizations, cooperating entities, consultants, or other key 
individuals who will work on the project along with a short description 
of the nature of their effort or contribution.

F. Organization Profiles

    Provide information on the applicant organization(s) and 
cooperating partners such as organizational charts, financial 
statements, audit reports or statements from CPAs/Licensed Public 
Accountants, Employer Identification Numbers, names of bond carriers, 
contact persons and telephone numbers, child care licenses and other 
documentation of professional accreditation, information on compliance 
with Federal/State/local government standards, documentation of 
experience in the program area, and other pertinent information. Any 
non-profit organization submitting an application must submit proof of 
its non-profit status in its application at the time of submission. The 
non-profit agency can accomplish this by providing a copy of the 
applicant's listing in the Internal Revenue Service's (IRS) most recent 
list of tax-exempt organizations described in Section 501(c)(3) of the 
IRS code, or, by providing a copy of the currently valid IRS tax 
exemption certificate, or, by providing a copy of the articles of 
incorporation bearing the seal of the State in which the corporation or 
association is domiciled.

G. Budget and Budget Justification

    Provide a line item detail and detailed calculations for each 
budget object class identified on the Budget Information form. Detailed 
calculations must include estimation methods, quantities, unit costs, 
and other similar quantitative detail sufficient for the calculation to 
be duplicated. The detailed budget must also include a breakout by the 
funding sources identified in Block 15 of the SF-424.
    Provide a narrative budget justification that describes how 
categorical costs are derived. Discuss the necessity, reasonableness, 
and allocability of the proposed costs.
    The following guidelines are for preparing the budget and budget 
justification. Both Federal and non-Federal resources shall be detailed 
and justified in the budget and narrative justification. For purposes 
of preparing the budget and budget justification, ``Federal resources'' 
refers only to the ACF grant for which you are applying. Non-Federal 
resources are all other Federal and non-Federal resources. It is 
suggested that budget amounts and computations be presented in a 
columnar format: first column, object class categories; second column, 
Federal budget; next column(s), non-Federal budget(s), and last column, 
total budget. The budget justification should be a narrative.
Personnel
    Description: Costs of employee salaries and wages.
    Justification: Identify the project director or principal 
investigator, if known. For each staff person, provide the title, time 
commitment to the project (in months), time commitment to the project 
(as a percentage or full-time equivalent), annual salary, grant salary, 
wage rates, etc. Do not include the costs of consultants or personnel 
costs of delegate agencies or of specific project(s) or businesses to 
be financed by the applicant.
Fringe Benefits
    Description: Costs of employee fringe benefits unless treated as 
part of an approved indirect cost rate.
    Justification: Provide a breakdown of the amounts and percentages 
that comprise fringe benefit costs such as health insurance, FICA, 
retirement insurance, taxes, etc.
Travel
    Description: Costs of project-related travel by employees of the 
applicant organization (does not include costs of consultant travel).
    Justification: For each trip, show the total number of traveler(s), 
travel destination, duration of trip, per diem, mileage allowances, if 
privately owned vehicles will be used, and other transportation costs 
and subsistence allowances. Travel costs for key staff to attend ACF-
sponsored workshops should be detailed in the budget.
Equipment
    Description: ``Equipment'' means an article of nonexpendable, 
tangible personal property having a useful life of more than one year 
and an acquisition cost which equals or exceeds the lesser of (a) the 
capitalization level established by the organization for the financial 
statement purposes, or (b) $5,000. (Note: Acquisition cost means the 
net invoice unit price of an item of equipment,

[[Page 12698]]

including the cost of any modifications, attachments, accessories, or 
auxiliary apparatus necessary to make it usable for the purpose for 
which it is acquired. Ancillary charges, such as taxes, duty, 
protective in-transit insurance, freight, and installation shall be 
included in or excluded from acquisition cost in accordance with the 
organization's regular written accounting practices.)
    Justification: For each type of equipment requested, provide a 
description of the equipment, the cost per unit, the number of units, 
the total cost, and a plan for use on the project, as well as use or 
disposal of the equipment after the project ends. An applicant 
organization that uses its own definition for equipment should provide 
a copy of its policy or section of its policy which includes the 
equipment definition.
Supplies
    Description: Costs of all tangible personal property other than 
that included under the Equipment category.
    Justification: Specify general categories of supplies and their 
costs. Show computations and provide other information which supports 
the amount requested.
Contractual
    Description: Costs of all contracts for services and goods except 
for those which belong under other categories such as equipment, 
supplies, construction, etc. Third-party evaluation contracts (if 
applicable) and contracts with secondary recipient organizations, 
including delegate agencies and specific project(s) or businesses to be 
financed by the applicant, should be included under this category.
    Justification: All procurement transactions shall be conducted in a 
manner to provide, to the maximum extent practical, open and free 
competition. Recipients and subrecipients, other than States that are 
required to use Part 92 procedures, must justify any anticipated 
procurement action that is expected to be awarded without competition 
and exceed the simplified acquisition threshold fixed at 41 USC 403(11) 
(currently set at $100,000.) Recipients might be required to make 
available to ACF pre-award review and procurement documents, such as 
request for proposals or invitations for bids, independent cost 
estimates, etc.

    Note: Whenever the applicant intends to delegate part of the 
project to another agency, the applicant must provide a detailed 
budget and budget narrative for each delegate agency, by agency 
title, along with the required supporting information referred to in 
these instructions.

Other
    Enter the total of all other costs. Such costs, where applicable 
and appropriate, may include but are not limited to insurance, food, 
medical and dental costs (noncontractual), professional services costs, 
space and equipment rentals, printing and publication, computer use, 
training costs, such as tuition and stipends, staff development costs, 
and administrative costs.
    Justification: Provide computations, a narrative description and a 
justification for each cost under this category.

H. Non-Federal Resources

    Amounts of non-Federal resources that will be used to support the 
project as identified in Block 15 of the SF-424. The firm commitment of 
these resources must be documented and submitted with the application 
in order to be given credit in the review process. A detailed budget 
must be prepared for each funding source.

I. Evaluation Criteria

Proposal Elements and Review Criteria for Applications
    Each application which passes the initial screening will be 
assessed and scored by three independent reviewers. Each reviewer will 
give a numerical score for each application reviewed. These numerical 
scores will be supported by explanatory statements on a formal rating 
form describing major strengths and weaknesses under each applicable 
criterion published in the Announcement. Scoring will be based on a 
total of 100 points, and for each application will be the average of 
the scores of the three reviewers.
    The competitive review of proposals will be based on the degree to 
which applicants:
    (1) Adhere to the requirements in Part II and incorporate each of 
the Elements and Sub-Elements below into their proposals, so as to:
    (2) Describe convincingly a project that will develop new asset 
accumulation opportunities for households eligible for TANF and other 
eligible individuals and working families that can lead to a transition 
from dependency to economic self-sufficiency through the accumulation 
of assets and the pursuit of activities requiring one or more qualified 
expenses; and
    (3) Provide for the collection and validation of relevant data to 
support the national evaluation to be carried out by the independent 
research organization, under contract with ACF, of the project design, 
implementation, and outcomes of this Demonstration Program.
    In order to simplify the application preparation and review 
process, OCS seeks to keep grant proposals cogent and brief. 
Applications with project narratives (excluding Project Summaries, 
Budget Justifications and Appendices) of more than 30 letter-sized 
pages of 12 c.p.i. type or equivalent on a single side will not be 
reviewed for funding. Applicants should prepare and assemble their 
project description using the following outline of required project 
elements. They should, furthermore, build their project concept, plans, 
and application description upon the guidelines set forth for each of 
the project elements.
    Project descriptions are evaluated on the basis of substance, not 
length. Pages should be numbered and a table of contents should be 
included for easy reference. For each of the Project Elements or Sub-
Elements below there is at the end of the discussion a suggested number 
of pages to be devoted to the particular element or sub-element. These 
are suggestions only; but the applicant must remember that the overall 
Project Narrative must not be longer than 30 pages.

Evaluation Criteria 1: Organizational Profiles

Element I. Organizational Experience and Administrative Capability; 
Ability to Assist Participants. (0 to 20 points)
    Criterion: The capability and relevant experience of the applicant 
and its partners and collaborators in developing and operating programs 
which deal with poverty problems similar to those to be addressed by 
the proposed project. Applicants should include their experience and 
capability in providing supportive services to TANF recipients and 
other low income individuals and working families seeking to achieve 
economic stability and self-sufficiency; and in recruiting, educating, 
and assisting project participants to increase their economic 
independence and general well-being through economic literacy education 
and the accumulation of assets.
    Applications should briefly cite a few specific, concrete examples 
of successful programs and activities, with accomplishments, with which 
applicant has been involved which have contributed to its experience 
and capability to carry out the proposed project. This should include 
experience in working with the target or similar populations, as well 
as collaborative programming and operations which involve financial 
institutions and

[[Page 12699]]

financial planning, budget counseling, educational guidance, 
preparation for home ownership, and/or self-employment training.
    Applications should identify applicant agency executive leadership 
in this section and briefly describe their involvement in the proposed 
project and provide assurance of their commitment to its successful 
implementation. (This can be achieved by a statement or letter from 
agency executive leadership which may be included in the Appendix.) The 
application should note and justify the priority that this project will 
have within the agency including the facilities and resources that it 
has available to carry it out.
    The application must also identify the individual staff person(s) 
who will have the most responsibility for managing the project, 
coordinating services and activities for participants and partners, and 
for achieving performance targets. The focus should be on the 
qualifications, experience, capacity and commitment to the program of 
the key staff person(s) who will administer and implement the project, 
and the application should indicate the amount of time (in FTE) each 
will be expected to devote to the project. The person identified as 
Project Director should have supervisory experience, experience in 
working with financial institutions and budget related problems of the 
poor, and experience with the target population. Because this is a 
demonstration project within an already-established agency, OCS expects 
that the key staff person(s) would be identified, if not hired, in 
which case a resume or resumes should be included in the Appendix. If 
the person or persons have not been identified, then Position 
Description(s) should be included in the Appendix.
    Finally, the application should cite the roles, responsibilities, 
and experience of any other organizations that will be collaborating 
with the Applicant to assist and support Project Participants in the 
pursuit of their goals under the project. Supporting documentation 
concerning these partnering agencies and their commitment to 
participation in the project should be included in the Appendix to the 
proposal.
    Where the Applicant is applying as the lead agency for a consortium 
of partnering organizations, each of these organizations should be 
briefly described in this section of the Project Narrative; and 
background materials citing their relevant experience and staff 
capabilities should be included in the Appendix. In such cases the 
Applicant should document its capability and experience in managing 
such consortia, and the roles and responsibilities of all participating 
agencies should be clearly set forth in Partnering Agreements between 
the Applicant and each of the member organizations. Copies of the 
Agreements should be included in the Appendix, and the roles and 
responsibilities clearly explained in Element II(b), Project Design, 
and reflected in the Work Plan under Element II(d).
    It is suggested that applicants use no more than 5 pages for this 
sub-Element, not counting actual resumes or position descriptions, 
which should be included in an Appendix to the proposal. Background 
materials on consortium members (if any) and other collaborating 
agencies, supportive materials, and Partnering Agreements with members 
should also be included in the Appendix.

Evaluation Criteria 2: Approach I

Element II. Sufficiency of the Project Theory, Design, and Plan (0-45 
points)
    Criterion: The degree to which the project described in the 
application appears likely to result in the establishment of a 
workable, fiscally sound program that will provide a structure of 
incentives and supports for TANF eligible households and other working 
families of limited means that will enable them to increase their 
economic self sufficiency through economic literacy training and asset 
accumulation for one or more ``qualified expenses''.
    OCS seeks to learn from the application why and how the project as 
proposed is expected to establish the creation of new opportunities for 
asset accumulation by eligible individuals and families that can lead 
to significant improvements in individual and family self-sufficiency 
through activities requiring one or more qualified expenses: for post-
secondary education, home ownership, and/or qualified business 
capitalization.
    Applicants are urged to design and present their project in terms 
of a conceptual cause-effect framework that makes clear the 
relationship between what the project plans to do and the results it 
expects to achieve.
Sub-Element II(a). Description of Target Population, Analysis of Need, 
and Project Assumptions (0-10 points)
    In this sub-element of the proposal the applicant must precisely 
identify the target population(s) to be served. The geographic area to 
be impacted should then be briefly described, citing the percentage of 
residents who are low-income individuals and TANF recipients, as well 
as the unemployment rate, and other data that are relevant to the 
project design. Note: Both the poverty rate and unemployment rate of 
the target community(s) are needed to be set forth in the Application 
so that its eligibility for the legislative preference may be 
determined (see below).
    The project design or plan should begin with identifying the 
underlying assumptions about the program. These are the beliefs on 
which the proposed program is built. They should begin with assumptions 
about the strengths and needs of the population(s) to be served; about 
how the accumulation of assets will enable project participants to 
build on those strengths in their quest to achieve self-sufficiency; 
and about what anticipated needs of the participants could be barriers 
to that achievement.
    In other words, the underlying assumptions of the program are the 
applicant's analysis of the participant strengths and potential to be 
supported and their needs and problems to be addressed by the project, 
and the applicant's theory of how its proposed interventions will 
address those strengths and needs to achieve the desired result. Thus a 
strong application is based upon a clear description of the strengths, 
opportunities, needs and problems to be supported and addressed, and a 
persuasive understanding of the nature of the opportunities and causes 
of the problems.
    The application should include a discussion of the identified 
personal barriers to employment, job retention and greater self-
sufficiency faced by the population to be targeted by the project. 
(These might include such problems as illiteracy, substance abuse, 
family violence, lack of skills training, health or medical problems, 
need for childcare, lack of suitable clothing or equipment, or poor 
self-image.) The application should also include an analysis of the 
identified community systemic barriers which the applicant will seek to 
overcome. These might include lack of public transportation; lack of 
markets; unavailability of financing, insurance or bonding; inadequate 
social services (employment service, child care, job training); high 
incidence of crime; lack of housing; inadequate health care; or 
environmental hazards. Applicants should be sure not to overlook the 
personal and family services and support needed by project participants 
which will enhance job retention and advancement, so as to assure 
continued ability to save from earned income, and

[[Page 12700]]

which will also help to assure that benefits attainable through asset 
accumulation are not diverted by crises beyond the participants' 
control which would lead to emergency withdrawals. The applicant should 
thus be prepared to demonstrate that the proposed project activities 
will provide participants with realistic prospects for being able to 
overcome these barriers and make the investments needed to acquire the 
assets which are the goal of the IDA.
    Where applicant is the lead agency for a group or consortium of 
organizations, this narrative should briefly summarize the location, 
character, and unemployment and poverty status of the different target 
populations. More detailed information for each of the participating 
organizations should be included in the Appendix to the Application.


    Note: In accordance with the legislative preferences set forth 
in Part II Section J, above, the maximum score for this sub-Element 
in the review of applications under Priority Area 1.0 will only be 
given to applications which:
    (1) demonstrate the willingness and ability of the applicant to 
select individuals for participation in the project who are 
predominantly from households in which a child (or children) is 
living with the child's biological or adoptive mother or father, or 
with the child's legal guardians. (Applications which target TANF 
eligible households will be deemed to have met this preference); and
    (2) target individuals residing within one or more relatively 
well-defined neighborhoods or communities (including rural 
communities, public housing developments, Empowerment Zones and 
Enterprise Communities) that experience high rates of poverty or 
unemployment. (Applications which target residents of Empowerment 
Zones, Enterprise Communities, Public Housing, or CDFI Fund-
designated Distressed Communities will be deemed to have met this 
preference.) (See Part II, Section J)

    Each of these preferences will be valued at 2 points in the 
proposal review, so that the absence of one will reduce the review 
score for the sub-Element by 2 points; the absence of both will reduce 
the review score by 4 points.
    In the case of a consortium of organizations operating programs 
funded through a lead agency, if a majority of the participating 
organizations meet these legislative preferences, the Application as a 
whole will be awarded these points.
    It is suggested that applicants use no more than 5 pages for this 
Sub-Element, not including any more detailed information about separate 
target populations, which should be included in the Appendix.
Sub-Element II(b). Project Approach and Design: Interventions, 
Outcomes, and Goals (0-15 points)
    The Application should outline a plan of action which describes the 
scope and detail of how the proposed activities will be undertaken. 
This Sub-Element should begin with a concise statement of the number of 
IDAs that are proposed to be established for each of the ``Qualified 
Expenses'' under the AFI Act, the projected monthly savings by IDA 
holders and the planned rate of matching contributions, and the 
projected savings goals of the participants. [It is recognized that 
these projections may be revised during the course of the project, 
based on actual experience of the participants.] The applicant should 
demonstrate that projected savings goals have a true relation to the 
ability of the Participant to save and to the value or cost of the 
``Qualified Expense'' for which the IDA is to be used, be it housing, 
postsecondary education, or business capitalization.
    Next, the Applicant should present a clear and straightforward 
description, from the point of view of the Project Participant, of just 
how the proposed IDA Project will operate. This description should take 
an eligible member of the target population through project activities 
from recruitment through the payment for the ``Qualified Expense'' (and 
beyond, if appropriate). It is suggested that the description generally 
follow the outline below, plus any additional activities that the 
Applicant proposes to undertake as part of its project:
    (1) How/where does the potential participant learn information 
about the Project that will excite his/her interest? (Recruitment)
    (2) Once interested, how, when, by whom, and on what basis is the 
recruit selected to participate in the project? (Selection)
    (3) How and when and with what assistance (Case Management? Family 
Development?) does the new participant make decisions concerning the 
amount of weekly or monthly savings and the selection of ``Qualified 
Expense''? Or is this part of the Selection Process? (Consultation)
    (4) When and where and with whom does the Participant reach 
agreement on and sign a ``Savings Plan Agreement''? [Include here a 
brief discussion of the provisions of the Agreement, or refer to a 
sample provided in the Appendix.] (Savings Plan Agreement)
    (5) Where, when and how does the Participant actually open his/her 
IDA account with the Insured Financial Institution? Where is the 
Institution in relation to the Participant's home/place of work? How 
does the Participant get to the Institution? [Include here a brief 
discussion of the role of the Financial Institution in account 
management, data collection and reporting, and any other services it 
will provide, referring to copies of the agreement(s) with the 
Financial Institution(s) in the Appendix.] (Opening of the IDA/Role of 
the Financial Institution)
    (6a) How and where will participant make savings deposits? In 
person? By mail? Through payroll deduction? (Savings Deposits)
    (6b) What happens if a scheduled deposit is missed? Will the 
participant be sent a post card? Receive a supportive phone call? 
(Delinquency)
    (7a) Where and when and from whom does the participant receive 
``Economic Literacy'' or ``Budgeting'' training, and do childcare and 
transportation need to be provided? (Training and Support)
    (7b) Where and when and from whom does participant receive Credit 
Repair Services if they are needed; and are there ways to escape from, 
or avoid Predatory Lenders? (Credit Repair)
    (8a) Where and when and from whom does the participant receive 
needed support to remain on the job with opportunity for advancement 
(So as to assure continued savings from earned income)? (Post 
Employment Support Services)
    (8b) Where and when and from whom does the participant receive 
emergency services so as to avoid having to make Emergency Withdrawals? 
(Crisis Intervention)
    (9) Where and when and from whom does the participant receive 
``Qualified Expenditure'' training related to home ownership, pursuit 
of educational goals, or business plan development and business 
management? (Qualified Expenditure Support)
    (10) When the IDA savings/match goals have been achieved, where, 
when and how does the participant make or arrange withdrawals to 
support the ``Qualified Expenses''? (Withdrawals)
    In this description the applicant should discuss all of the planned 
activities and interventions, including those supported by other 
available resources, and should explain the reasons for taking the 
approaches proposed. The description should give a clear picture of how 
the project as a whole will operate from day to day, including the 
recruiting, financial, program support, and data collection 
responsibilities of the applicant and any

[[Page 12701]]

partners in the project, and just how they will interact with the 
financial institutions and other participating agencies.
    Where the Applicant is a lead agency for a group or consortium of 
organizations, the role of each must be clearly defined in this section 
of the application. In such cases Applicants should attach copies of 
signed Partnering Agreements with each of the member organizations 
setting forth the roles and responsibilities of each. (See Element I 
and PART II Section B.(3) above.)
    Finally, and following the above description, the Applicant should 
explain how the proposed project activities will result in outcomes 
which will build on the strengths of the Program Participants and 
assist them to overcome the identified personal and systemic barriers 
to achieving self-sufficiency. In other words, what will the project 
staff do with the resources available to the project and how will what 
they do (interventions) assist project participants to accumulate 
assets in Individual Development Accounts and use those assets for 
``Qualified Expenses'' in a manner that will help lead them to self-
sufficiency?
    It is suggested that applicants use no more than 9 pages for this 
Sub-Element, not including copies of agreements with financial 
institutions, partnering agencies or organizations, or sample ``Savings 
Plan Agreement'', which should be in an Appendix.
Sub-Element II(c). Financial Institution Agreement/Statement of Policy 
(0-10 points)

    Note: In the case of applications submitted by eligible Credit 
Unions or Community Development Financial Institutions, where the 
Reserve Fund and IDA accounts are to be held by the applicant 
Institution itself, the applicant must submit, in lieu of a 
Financial Institution Agreement, a Statement of Policy, approved by 
its Board of Directors and attested to by its Chairperson and Chief 
Financial Officer, which sets forth the provisions listed under this 
Sub-Element, and which will be considered in like manner in the 
competitive review process. Where such applicants are proposing the 
establishment of Reserve Fund(s) or IDA's in other partnering 
Financial Institutions, they should submit as part of their 
applications copies Agreements with such Partnering Financial 
Institution(s) in accordance with this Sub-Element. It is suggested 
that applicants need not include discussion of these Agreements/
Statements of Policy in their Proposal Narrative, but should only 
identify the Financial Institution(s) and reference the Agreement/
Statement of Policy as included in an Appendix to the Application.


    Applicants other than eligible Credit Unions or CDFI's must 
identify the Qualified Financial Institution(s) with which they are 
partnering in the development and implementation of its IDA Project, 
and all applicants must include in an Appendix a copy of a signed 
Agreement between the Applicant and the Financial Institution(s), or, 
in the case of eligible Credit Unions or CDFI's, a Statement of Policy, 
which sets forth:
    (1) that the project's Reserve Fund will be established in the 
Financial Institution;
    (2) that its management will conform to the requirements of the 
AFIA (see Part II-G(1) above);
    (3) the rate of interest to be paid on amounts in the Reserve Fund;
    (4) that IDA accounts will be established in the Financial 
Institution through written governing instruments in accordance with 
the requirements of Part II, Section G (4), paragraphs (a) through (g), 
above, including the requirements for deposits (by cash, check, money 
order or electronic transfer) and withdrawals (signature of the account 
holder and of a responsible official of the project grantee required);
    (5) how, when, and where participant deposits will be made;
    (6) how and when matching contributions will be made (e.g. in a 
parallel account);
    (7) the rate and frequency of interest payments on accounts, 
including matching contributions;
    (8) that the accounting procedures to be followed in account 
management will conform to the Guidelines established by the Secretary 
as set forth at CFR part 1000 published 65 FR 10027, Feb. 25, 2000:
    (9) the data and reports that will be furnished to the grantee 
concerning the Reserve Fund and IDA accounts;
    (10) the Non-Federal Share contribution, if any, being made by the 
Financial Institution for deposit in the Reserve Fund, and the schedule 
of deposits of such contribution; and
    (11) other services to be provided by the Financial Institution(s) 
that could strengthen the project, such as Financial Education 
Seminars, favorable pricing on fees, out-stationing of services in 
community facilities, or assistance in recruitment of Project 
Participants.
    Agreements/policies which meet the basic requirements of paragraphs 
(1) through (9), above will be awarded up to eight (8) points in the 
competitive review process. To be awarded a higher score Agreements/
Statements of Policy must include some provisions from those included 
in paragraphs (10) and (11).
    As noted above, the applicant need only identify the partnering 
Financial Institution(s) under this Sub-Element, and reference the 
Agreement(s) or Statement of Policy in the Appendix to the Application.
Sub-Element II(d). Work Plan, Projections, Time Lines (0-10 points)
    Applicant should provide quantitative quarterly projections of the 
activities to be carried out and such information as the projected 
number of participants to be enrolled in each quarter, the number of 
Individual Development Accounts projected to be opened in each quarter 
for each of the ``Qualified Expenses'', the number and amount of 
projected deposits in each quarter, a projected schedule of IDA 
completions and qualified expense payments, and the number and types of 
services provided to participants. The plan should briefly describe the 
key project tasks, and show the timelines and major milestones for 
their implementation. Where the Applicant is a lead agency for a group 
or consortium of organizations, this information should be broken out 
for each of the member organizations. Applicant may be able to use a 
time line chart to convey this aspect of the work plan in minimal 
space.


    Note: Applicants should make sure that these projections relate 
accurately to the amount of grant funds requested and rates of 
matching contributions that are planned for IDA's. In other words, 
applicants should not project a greater number of IDA accounts than 
that number that can be matched by the grant funds that will be 
available to the project. Applicants should also be aware that OCS 
funds awarded pursuant to this Announcement will be from FY 2001 
funds and may not be expended after the end of the five-year 
Project/Budget Period to support administration of the project or 
matching contributions to Individual Development Accounts which may 
be open at that time. Consequently, Applicants should consider 
carefully the length of time participants will need to achieve their 
savings goals and at what point in the project they may wish to 
discontinue the opening of new accounts. Applicants should provide 
assurance that in every case provision will be made for payment of 
all promised matching deposits to IDA accounts opened by project 
participants in the course of the demonstration project.


    This Element of the Proposal should also include a management plan 
or chart showing the responsibilities of the applicant agency, key 
personnel, and all partnering agencies and consortium members (where 
applicable), with an indication of who will be performing various tasks 
such as recruiting, training, economic education instruction, and 
support activities. (This

[[Page 12702]]

plan or chart should be included in the Appendix to the Application.)
    It is suggested that applicants use no more than 3 pages for this 
Sub-Element, not counting the management plan/chart, which should be 
included in the Appendix.

Evaluation Criteria 3: Budget and Budget Justification

Element III. Appropriateness of Budget and Proposed Use of Cash and In-
Kind Resources (0-5 points)
    Criteria: Completeness of the Budget Justification, and the degree 
to which a description of the allocation of both cash and in-kind 
resources available to the project (including any income generated for 
the project by the Reserve Fund) demonstrates a thoughtful plan that 
reflects the needs of Project Participants and the responsive 
activities and interventions to be undertaken by the Applicant and its 
partners.
    Every application must include a Budget Justification, placed after 
the Budget Forms SF 424 and 424A, explaining the sources and uses of 
project funds, and completed in accordance with instructions found in 
Section G, above. The Budget Justification will not be counted as part 
of the Project Description subject to the thirty page limitation. 
Applicant should briefly but thoroughly describe how all of the 
resources available to the Project will be employed to carry out the 
Work Plan described in Element II, including those training elements 
and support services designed to help assure participant success in 
meeting their savings commitments and their chosen ``qualified 
expense'' use of their Individual Development Account assets. In the 
budget forms and supporting Budget Justification, Applicants must 
clearly distinguish between AFI Act/OCS grant funds and other funds, 
and between cash and in-kind resources described.
    As noted above, the Budget Justification will not be counted as 
part of the Project Description subject to the thirty page limitation.

Evaluation Criteria 4: Approach II

Element IV. Project Data: Adequacy of Plan for Collecting, Validating 
and Providing Project-related Data for Management Information, 
Reporting, and Evaluation Purposes. (0-5 points)
    Criteria: Adequacy of the plan for collecting, validating and 
providing relevant, accurate and complete data for internal management 
information, statutory reporting and project evaluation purposes; and 
clear expression of a commitment to cooperate with the statutorily 
mandated evaluation of the national Assets for Independence 
Demonstration Program.


    Note: Under the AFI Act project grantees are required to use at 
least 2%--but not more than 15%--of grant funds to provide the 
research organization evaluating the demonstration project with such 
information with respect to the demonstration project as may be 
required for the evaluation.


    The AFI Act allocates a portion of the appropriated funds to 
support an evaluation of the overall demonstration program in addition 
to the funds grantees are required to expend on data collection. This 
Element requires the Applicant to provide a well thought-out plan for 
collecting, validating and reporting or providing the necessary data in 
a timely fashion. The Applicant is also encouraged to identify the 
kinds of data it believes would facilitate the management information, 
reporting, and evaluation purposes. The Applicant should also declare 
its agreement to cooperate with the evaluation of the national program, 
and include a brief explanation of its perception of what that 
cooperation would entail. Applicants are urged to carry out an ongoing 
assessment of the data and information collected as an effective 
``process'' management/feedback tool in implementing the project. If 
the Applicant anticipates such an undertaking, the plans should be 
briefly outlined here.


    Note: To attain a maximum score for this Element, the Applicant 
must state its agreement to use the ``MIS IDA'' information system 
software developed by the Center for Social Development, or a 
comparable and compatible Asset Development Information System, now 
in development, which OCS expects to provide to grantees for the 
maintenance, collection, and transmission of data from the proposed 
project.


    It is suggested that applicants use no more than 2 pages for this 
Element.

Evaluation Criteria 5: Non-Federal Resources

Element V. Commitment of Resources. (Total of 0-15 points)
Sub-Element V(a). Proportion of Public/Private Required Non-Federal 
Matching Contributions. (0-2 points)
    Criterion: Whether a proportionately greater amount of committed 
required non-Federal matching contribution funds are from private 
sector as opposed to public sources.
    In accordance with the legislative preferences set forth in Part 
III Section J Preferences, above, applications which provide a 
commitment of required non-Federal cash matching contributions with a 
proportionately greater amount of such funds committed from private 
sector as opposed to public sources will receive 2 points under this 
Element.
    Applicants are reminded that as noted in Part II Section I Non-
Federal Matching Funds Requirements, where the Applicant is itself 
providing any of the required cash non-Federal share, it must include 
in the Appendix a statement of commitment, on applicant letterhead, 
signed by the official signing the SF 424 and countersigned by the 
Applicant's Board Chairperson or Treasurer, that the non-Federal 
matching funds will be provided, contingent only on the OCS grant 
award, and that non-Federal share deposits and the opening of 
Individual Development Accounts will be coordinated so that new 
accounts will only be opened when there are sufficient funds in the 
Reserve Fund to cover the maximum matching requirements of the Savings 
Plan Agreements.
Sub-Element V(b). Availability of Additional Resources. (0-13 points)
    Criterion: The extent to which additional resources (beyond the 
required amount of direct funds from non-federal public sector and from 
private sources that are formally committed to the project as matching 
contributions) will be available to support those activities and 
interventions identified in sub-Element II(b), such as economic 
literacy classes, ``qualified expense''-related training, counseling, 
case management, post-employment support services, and crisis 
intervention.
    As noted below in Part IV, Paragraph D Initial OCS Screening, the 
only applications which will be considered for competitive review are 
those which include written documentation of a commitment, contingent 
only on award of the OCS grant, from the provider(s) of non-Federal 
share, in cash as distinguished from in-kind, of at least the amount of 
the total Federal grant requested.
    OCS has determined that the strict legislative limitations on the 
use of Federal grant funds and of the minimum required non-Federal 
match (at least 85% of each must go toward matching deposits in 
Individual Development Accounts) mean that important training, 
counseling and support activities, critical to the success of a 
project, can best be supported by additional resources, both of the 
applicant itself and from the community.
    In order to receive points in the review process under this sub-
Element, the applicant must identify those

[[Page 12703]]

additional resources, cash and in-kind, which will be dedicated to 
support of those activities and interventions identified in sub-Element 
II(b), such as economic literacy classes, training, counseling, case 
management, post-employment support services, and crisis intervention; 
and any staff data collection/verification activities described in 
Element III. Such resources may be existing programs of the applicant 
or a project partner, such as Family Development, Economic Literacy 
classes, or Small Business Training, in which Project Participants will 
be enrolled as part of their efforts to achieve self-sufficiency. This 
Element will be judged in the review process on the adequacy of the 
available resources to support the activities and interventions 
described in sub-Element II(b). The commitment of such resources to the 
project must be documented in writing and submitted as an Appendix to 
the Application. Because such additional resources are not part of the 
legislatively mandated non-Federal matching requirement, these 
additional resources may be of Federal or non-Federal origin, public or 
private, in cash or in-kind. Applicants are reminded that they will be 
held accountable for commitments of such additional resources even if 
over the amount of the required match.
    It is suggested that no more than 3 pages be used for this Element, 
not including non-Federal Share Agreements, assurances, letters of 
commitment, partnership agreements, or Memoranda of Understanding, 
which should be put in an Appendix to the proposal.

Evaluation Criteria 6: Results or Benefits Expected

Element VI. Significant and Beneficial Impacts/Critical Issues or 
Potential Problems (0-10 points)
    Criteria: The extent to which proposed project is expected to 
produce permanent and measurable results that will reduce the incidence 
of poverty in the community and lead TANF eligible households and other 
eligible individuals and working families toward economic self-
sufficiency through economic literacy education and accumulation of 
assets; and the extent to which applicant convincingly explains how the 
project will meet any critical issues or potential problems in 
achieving these results.
    Applicants should set forth their realistic goals and projections 
for attainment of these and other beneficial impacts of the proposed 
project and should demonstrate that projected savings goals have a true 
relationship to the ability of the participant to save the projected 
amounts and to the value or cost of the ``Qualified Expense'' for which 
the IDA is to be used.
    Results are expected to be quantifiable in terms of the number of 
Individual Development Accounts opened, their rate of growth, the 
number and size of withdrawals for each of the three ``Qualified 
Expenses'', and the impact of the payment of those expenses on the 
participants' movement toward self-sufficiency.
    Applicants should also in this Element explicitly address critical 
issues or potential problems that might affect the achievement of 
project objectives, with an explanation of how they would be overcome, 
and how the objectives will be achieved notwithstanding any such 
problems.
    It is suggested that no more than 3 pages be used for this Element.

Part IV. Application Procedures

A. Application Development/Availability of Forms

    In order to be considered for a grant under this program 
announcement, an application must conform to the Program Requirements 
set out in Part II and be prepared in accordance with the guidelines 
set out in Part III, above. It must be submitted on the forms supplied 
in the attachments to this Announcement and in the manner prescribed 
below. Attachments A through I contain all of the standard forms 
necessary for the application for awards under this OCS program. These 
attachments and Parts IV and V of this Announcement contain all the 
instructions required for submittal of applications.
    Additional copies may be obtained by writing or telephoning the 
office listed under the section entitled FOR FURTHER INFORMATION 
CONTACT: at the beginning of this announcement. In addition, this 
Announcement is accessible on the Internet through the OCS WEBSITE for 
reading or downloading at: http://www.acf.dhhs.gov/programs/ocs/ under 
``Funding Opportunities''.
    The applicant must be aware that in signing and submitting the 
application for this award, it is certifying that it will comply with 
the Federal requirements concerning the drug-free workplace, the 
Certification Regarding Environmental Tobacco Smoke, and debarment 
regulations set forth in Attachments G, H, and I.
    Part III contains instructions for the substance and development of 
the project narrative. Part V contains instructions for completing 
application forms. Part VI, Section A describes the contents and format 
of the application as a whole.

B. Application Submission

    (1) Number of copies required. One signed original application and 
two copies should be submitted at the time of initial submission. (OMB 
0976-0139). Two additional optional copies would be appreciated to 
facilitate the processing of applications.
    (2) Deadline. Mailed applications shall be considered as meeting 
the announced deadline of June 12, 2001 if they are either received on 
or before the deadline date or postmarked on or before the deadline 
date and received by ACF in time for the independent review. Mailed 
applications must be sent to: U.S. Department of Health and Human 
Services, Administration for Children and Families, Office of Grants 
Management, Office of Child Support Enforcement, ``Attention: IDA 
Program'', 370 L'Enfant Promenade, SW., Washington, DC 20447.
    Applications submitted via overnight/express delivery services 
should be addressed to the Administration for Children and Families, 
Office of Grants Management, Office of Child Support Enforcement, 
``Attention IDA Program'', 901 D Street SW, Fourth Floor, Washington, 
DC 20024.
    Applicants must ensure that a legibly dated U.S. Postal Service 
postmark, or a legibly dated machine produced postmark of a commercial 
mail service, or an official dated receipt of an overnight/express 
delivery service, is affixed to the envelope/package containing the 
application(s). To be acceptable as proof of timely mailing, a postmark 
from a commercial mail service or receipt from an overnight/express 
delivery service company must include the logo/emblem of the company 
and must reflect the date the package was received by the company from 
the applicant. Private Metered postmarks shall not be acceptable as 
proof of timely mailing.
    Applications handcarried by applicants, applicant couriers, or by 
other representatives of the applicant shall be considered as meeting 
an announced deadline if they are received on or before the deadline 
date, between the hours of 8:00 a.m. and 4:30 p.m., EST, at the U.S. 
Department of Health and Human Services, Administration for Children 
and Families, Office of Grants Management, Office of Child Support 
Enforcement, Mailroom, 2nd Floor (near loading dock), Aerospace Center, 
901 D Street, SW, Washington, DC 20024, between Monday and Friday 
(excluding Federal holidays). The address must

[[Page 12704]]

appear on the envelope/package containing the application with the note 
``Attention: IDA Program''.
    ACF cannot accommodate transmission of applications by fax or 
through other electronic media. Therefore, applications transmitted to 
ACF electronically will not be accepted regardless of date or time of 
submission and time of receipt.
    (3) Late applications. Applications which do not meet the criteria 
above are considered late applications. ACF shall notify each late 
applicant that its application will not be considered in the current 
competition.
    (4) Extension of deadlines. ACF may extend an application deadline 
for applicants affected by acts of God such as floods and hurricanes, 
or when there is widespread disruption of the mails. A determinations 
to waive or extend deadline requirements rest with ACF's Chief Grants 
Management Officer.

C. Intergovernmental Review

    This program is covered under Executive Order 12372, 
``Intergovernmental Review of Federal Programs,'' and 45 CFR Part 100, 
``Intergovernmental Review of Department of Health and Human Services 
Program and Activities.'' Under the Order, States may design their own 
processes for reviewing and commenting on proposed Federal assistance 
under covered programs.
    *All States and Territories except Alabama, Alaska, Arizona, 
Colorado, Connecticut, Hawaii, Idaho, Indiana, Kansas, Louisiana, 
Massachusetts, Minnesota, Montana, Nebraska, New Jersey, New York, 
Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Tennessee, Vermont, 
Virginia, Washington, Wyoming, American Samoa and Palau have elected to 
participate in the Executive Order process and have established Single 
Points of Contact (SPOCs). Applicants from these twenty-eight 
jurisdictions need take no action regarding E.O. 12372. Applicants for 
projects to be administered by Federally-recognized Indian Tribes are 
also exempt from the requirements of E.O. 12372. Otherwise, applicants 
should contact their SPOCs as soon as possible to alert them of the 
prospective applications and receive any necessary instructions. 
Applicants must submit any required material to the SPOCs as soon as 
possible so that the program office can obtain and review SPOC comments 
as part of the award process. It is imperative that the applicant 
submit all required materials, if any, to the SPOC and indicate the 
date of this submittal (or indicate ``not applicable'' if no submittal 
is required) on the Standard Form 424, item 16a.
    Under 45 CFR 100.8(a)(2), a SPOC has 60 days from the application 
deadline to comment on proposed new or competing continuation awards.
    SPOCs are encouraged to eliminate the submission of routine 
endorsements as official recommendations.
    Additionally, SPOCs are requested to clearly differentiate between 
mere advisory comments and those official State process recommendations 
which may trigger the ``accommodate or explain'' rule.
    When comments are submitted directly to ACF, they should be 
addressed to: Department of Health and Human Services, Administration 
for Children and Families, OCSE Office of Grants Management, 370 
L'Enfant Promenade, S.W., 4th floor East, Washington, D.C. 20447.
    A list of the Single Points of Contact for each State and Territory 
is included as Attachment J to this Announcement.

D. Initial OCS Screening

    Each application submitted under this program announcement will 
undergo a pre-review to determine that the application was postmarked 
by the closing date and submitted in accordance with the instructions 
in this announcement.
    All applications that meet the published deadline requirements as 
provided in this Program Announcement will be screened for completeness 
and conformity with the following requirements. Only complete 
applications that meet the requirements listed below will be reviewed 
and evaluated competitively. Other applications will be returned to the 
applicants with a notation that they were unacceptable and will not be 
reviewed.
    The following requirements must be met by all Applicants except as 
noted:
    (1) The application must contain a signed Standard Form 424 
``Application for Federal Assistance'' (SF-424), a budget (SF-424A), 
and signed ``Assurances'' (SF 424B) completed according to instructions 
published in Part V and Attachments A, B, and C of this Program 
Announcement. The SF-424 and the SF-424B must be signed by an official 
of the organization applying for the grant who has authority to 
obligate the organization legally. Applicants must also be aware that 
the applicant's legal name as required on the SF-424 (Item 5) must 
match that listed as corresponding to the Employer Identification 
Number (Item 6).
    (2) A project narrative must also accompany the standard forms. OCS 
requires that the narrative portion of the application be limited to 30 
letter-size pages, numbered, and typewritten on one side of the paper 
only with one-inch margins and type face no smaller than 12 characters 
per inch (c.p.i.) or equivalent. Applications with project narratives 
(excluding Project Summaries and appendices) of more than 30 letter-
sized pages of 12 c.p.i. type or equivalent on a single side will not 
be reviewed for funding. The Joint Applicant Agreement (where 
applicable), non-Federal share agreement, Budget Narrative, Charts, 
exhibits, resumes, position descriptions, letters of support or 
commitment, Agreements with Financial Institutions and other partnering 
organizations, and Business Plans (where required) are not counted 
against this page limit, and should be in the Appendix. It is Strongly 
Recommended That Applicants Follow the Format and Content for the 
Narrative Described in the Program Elements Set Out in Part III.
    (3) Application must contain documentation of the applicant's (or 
joint applicant's) tax exempt status as required under Part II, Section 
A.
    (4) Application must include a copy of a ``Non-Federal Share 
Agreement'' or Agreements in writing executed with the entity or 
entities providing the required non-Federal matching contributions, 
signed by a person authorized to make a commitment on behalf of the 
entity and signed for the Applicant by the person signing the SF424. 
Such Agreement(s) must include: (1) A commitment by the organization to 
provide the non-Federal funds contingent only on the grant award; and 
(2) an agreement as to the schedule of the opening of Individual 
Development Accounts by the Applicant, and the schedule of deposits by 
the organization to the project's Reserve Fund, such that the two 
schedules will together assure that there will be at all times in the 
Reserve Fund non-Federal matching contribution funds sufficient to meet 
the maximum pledges of matching contributions under the ``Savings Plan 
Agreements'' for all Individual Development Accounts then open and 
being maintained by the grantee as part of the demonstration project.
    Where Applicants (or Joint Applicants) themselves are providing 
non-Federal share funding, then with regard to those funds the 
application should include an assurance, written on the Applicant's 
letterhead, signed by the person signing the SF424, and countersigned 
by the board Chairperson or Treasurer, that the required non-Federal 
share funds will be provided

[[Page 12705]]

and that deposits and the opening of Individual Development Accounts 
will be coordinated so that new accounts will only be opened when there 
are sufficient funds in the Reserve Fund to cover the maximum matching 
requirements of the Savings Plan Agreements. (See Part II, Section I.)
    Applicants are strongly encouraged to mobilize additional 
resources, which may be cash or in-kind contributions, Federal or non-
Federal, for support of project administration and assistance to 
Project Participants in obtaining skills, knowledge, and needed support 
services. [See PART III-I Element V(b)]
    (5) All Applications other than those submitted by eligible Credit 
Unions or CDFI's must include a copy of an Agreement between the 
Applicant and one or more Qualified Financial Institutions, which 
includes the provisions set out in PART III, Element II(c), which 
states that the accounting procedures to be followed in account 
management will conform to Guidelines (45 CFR Part 74) established by 
the Secretary, and under which the partnering financial institution 
will agree to provide data and reports as requested by the applicant. 
[Note: the Accounting Guidelines may be found at 65 FR 10027, Feb. 25, 
2000.]

E. Consideration of Applications

    Applications which pass the initial OCS screening will be reviewed 
and rated by an independent review panel on the basis of the specific 
review criteria described and discussed in Part III, above. 
Applications will be reviewed and rated under the Program Elements and 
Review Criteria set forth in PART III Section I. The review criteria 
were designed to assess the quality of a proposed project, and to 
determine the likelihood of its success. The review criteria are 
closely related and are considered as a whole in judging the overall 
quality of an application. Points are awarded only to applications 
which are responsive to the review criteria and program elements within 
the context of this Program Announcement. The results of these reviews 
will assist the Director and OCS program staff in considering competing 
applications. Reviewers' scores will weigh heavily in funding 
decisions, but will not be the only factors considered.
    Applications generally will be considered in order of the average 
scores assigned by reviewers. However, highly ranked applications are 
not guaranteed funding since other factors are taken into 
consideration, including, but not limited to, the timely and proper 
completion by applicant of projects funded with OCS funds granted in 
the last five (5) years; comments of reviewers and government 
officials; staff evaluation and input; the amount and duration of the 
grant requested and the proposed project's consistency and harmony with 
OCS goals and policy; geographic distribution of applications; previous 
program performance of applicants; compliance with grant terms under 
previous HHS grants, including the actual dedication to program of 
mobilized resources as set forth in project applications; audit 
reports; investigative reports; and applicant's progress in resolving 
any final audit disallowances on previous OCS or other Federal agency 
grants.
    Since non-Federal reviewers will be used for review of 
applications, Applicants may omit from the application copies which 
will be made available to the non-Federal reviewers, the specific 
salary rates or amounts for individuals identified in the application 
budget. Rather, only summary information is required. OCS reserves the 
right to discuss applications with other Federal or non-Federal funding 
sources to verify the applicant's performance record and the documents 
submitted.

F. Reconsideration

    After Federal fund are exhausted for this grant competition, OCS 
may decide to reconsider applications which have been independently 
reviewed and ranked but have no final disposition (neither approved nor 
disapproved). Reconsideration may occur at any time funds become 
available within twelve (12) months following ranking. If a competition 
involving applications with no final disposition should occur, 
applications will be reviewed by independent reviewers in a new 
competition and ranked according to the new score. Applicants that will 
be reconsidered for possible funding will be afforded an opportunity to 
request reviewer comments from the prior competition, and can revise 
and reapply under the new competition. In this instance, the previous 
application will be discarded and the new application will be 
considered.

Part V. Instructions for Completing Application Forms

    The standard forms attached to this announcement shall be used to 
apply for funds under this program announcement.
    It is suggested that you reproduce single-sided copies of the SF-
424 and SF-424A, and type your application on the copies. Please 
prepare your application in accordance with instructions provided on 
the forms (Attachments A and B) as modified by the instructions set 
forth in PART III G., above, and the OCS specific instructions set 
forth below:
    Provide line item detail and detailed calculations for each budget 
object class identified on the Budget Information form. Detailed 
calculations must include estimation methods, quantities, unit costs, 
and other similar quantitative detail sufficient for the calculation to 
be duplicated. The detailed budget must also include a breakout by the 
funding sources identified in Block 15 of the SF-424.
    Provide a narrative budget justification which describes how the 
categorical costs are derived. Discuss the necessity, reasonableness, 
and allocability of the proposed costs. (Note: The Budget detail and 
Narrative Budget Justification should follow the SF 424 and 424A, and 
are not counted as part of the Project Narrative.)

A. SF-424--Application for Federal Assistance (Attachment A)

Top of Page
    Where the applicant is a previous Department of Health and Human 
Services grantee, enter the Central Registry System Employee 
Identification Number (CRS/EIN) and the Payment Identifying Number, if 
one has been assigned, in the Block entitled Federal Identifier located 
at the top right hand corner of the form (third line from the top).
    Item 1. For the purposes of this announcement, all projects are 
considered Applications; there are no Pre-Applications.
    Item 7. If applicant is a State, enter ``A'' in the box. If 
applicant is an Indian Tribe enter ``K'' in the box. If applicant is a 
non-profit organization enter ``N'' in the box.
    Item 9. Name of Federal Agency--Enter DHHS-ACF/OCS.
    Item 10. The Catalog of Federal Domestic Assistance number for OCS 
programs covered under this announcement is 93.602. The title is 
``Assets for Independence Demonstration Program (IDA Program)''.
    Item 11. In addition to a brief descriptive title of the project, 
indicate the priority area for which funds are being requested. Use the 
following letter designations: I--Individual projects under Priority 
Area 1.0
    Item 13. Proposed Project--The project start date must begin on or 
before September 30, 2001; the ending date should be calculated on the 
basis of 60-month Project Period.
    Item 15a. This amount should be no greater than $1,000,000 for 
applications under Priority Area 1.0.

[[Page 12706]]

    Item 15b-e. These items should reflect both cash and third-party, 
in-kind contributions for the Project Period (60 months).

B. SF-424A--Budget Information--Non-Construction Programs (Attachment 
B)

    In completing these sections, the Federal Funds budget entries will 
relate to the requested OCS funds only, and Non-Federal will include 
mobilized funds from all other sources--applicant, state, local, and 
other. Federal funds other than requested OCS funding should be 
included in Non-Federal entries. Sections A, B, and C of SF-424A should 
reflect budget estimates for each year of the Project Period.
Section A--Budget Summary
    You need only fill in lines 1 and 5 (with the same amounts)
    Col. (a): Enter ``IDA Program'' as Item number 1. (Items 2, 3, 4, 
and 5 should be left blank.)
    Col. (b): Catalog of Federal Domestic Assistance number is 93.602. 
Col. (c) and (d): not relevant to this program.
    Column (e)-(g): enter the appropriate amounts in items 1. and 5. 
(Totals) Column e should not be more than $1,000,000 for applications 
under Priority Area 1.0, and in no case can it be more than the 
committed non-Federal matching cash contribution.
Section B--Budget Categories
    (Note that the following information supersedes the instructions 
provided with the Form in Attachment C)
    Columns (1)-(5): For each of the relevant Object Class Categories:
    Column 1: Enter the OCS grant funds for the full 5-year budget 
period. With regard to Class Categories, no less than eighty-five 
percent (85%) of OCS grant funds should be entered in ``h. Other'', 
representing the funds to be deposited in the Reserve Fund and which 
will be used to match participant contributions in IDA's. The balance 
of up to fifteen percent (15%) of OCS grant funds should be allocated 
to Object Class Categories in accordance with the instructions found in 
PART III Section G of this Announcement.
    Columns 2, 3 and 4 are not relevant to this program.
    Column 5: Enter not less than 85% of OCS grant funds for the five 
year budget by Class Categories under ``other'', showing a total of not 
more than $1,000,000.
Section C--Non Federal Resources
    This section is to record the amounts of ``non-Federal'' resources 
that will be used to support the project, including both the required 
cash non-Federal ``matching contributions'' share, and the ``additional 
resources'' which will bring additional support to the project, which 
may be cash or in-kind, non-Federal or Federal. In this context, ``Non-
Federal'' resources mean any and all resources other than the OCS funds 
for which the applicant is applying. Therefore, mobilized funds from 
other Federal programs, such as the Job Training Partnership Act 
program or the Welfare-to-Work program, should be entered on these 
lines. Provide a brief listing of these ``non-Federal'' resources on a 
separate sheet and describe whether it is a grantee cost or a third-
party cash or in-kind contribution. The firm commitment of these 
resources must be documented and submitted with the application in 
order to be given credit in the review process under the Non-Federal 
Resources program element.

    Note: Even though non-Federal resources mobilized may go beyond 
the amount required as match under the IDA Program, grantees will be 
held accountable for any such cash or in-kind contribution proposed 
or pledged as part of an approved application where the use of such 
funds falls within a Program Element/Proposal Review Criterion which 
formed the basis for the grant award. [See Part II, Section I. and 
Part III, Element V(b).]

    Sections D, E, and F may be left blank by Applicants under Priority 
Area 1.0. As noted in Part VI, a supporting Budget Justification must 
be submitted providing details of expenditures under each budget 
category, with justification of dollar amounts which relate the 
proposed expenditures to the work program and goals of the project.

C. SF-424B Assurances: Non-Construction Programs

    Applicants requesting financial assistance for a non-construction 
project must file the Standard Form 424B, ``Assurances: Non-
Construction Programs.'' (Attachment C) Applicants must sign and return 
the Standard Form 424B with their applications. Applicants must provide 
a certification concerning Lobbying. Prior to receiving an award in 
excess of $100,000, applicants shall furnish an executed copy of the 
lobbying certification. (See Attachments D and E) Applicants must sign 
and return the certification with their applications. Applicants should 
note that the Lobbying Disclosure Act of 1995 has simplified the 
lobbying information required to be disclosed under 31 U.S.C. 1352.
    Applicants must make the appropriate certification on their 
compliance with the Drug-Free Workplace Act of 1988 and the Pro-
Children Act of 1994 (Certification Regarding Smoke Free Environment). 
(See Attachments G and H) By signing and submitting the applications, 
applicants are attesting to their intent to comply with these 
requirements and need not mail back the certification with the 
applications.
    Applicants must make the appropriate certification that they are 
not presently debarred, suspended or otherwise ineligible for award. 
(See Attachment I) By signing and submitting the applications, 
applicants are providing the certification and need not mail back the 
certification with the applications. Copies of the certifications and 
assurances are located at the end of this announcement.

Part VI. Contents of Application and Receipt Process

    Application pages should be numbered sequentially throughout the 
application package, beginning with a Summary/Abstract of the proposed 
project as page number one; and each application must include all of 
the following, in the order listed below:

A. Content and Order of IDA Program Application

    1. A Project Summary/Abstract--brief, not to exceed one page, on 
the Applicant's letterhead (that will not be counted as a part of the 
Project Narrative/Description) and that includes the following 
information:

--A brief identification of the geographic area to be served, 
indicating poverty and unemployment rates, and the specific population 
to be targeted by the project;
--The amount of the grant requested;
--The name of partnering financial institution(s) and collaborating 
organizations (if applicable);
--The amount of required non-Federal match committed;
--The number of IDA accounts projected to be opened in the course of 
the Demonstration Project;
--The proposed rate of matching contributions, and the types and 
numbers of ``Qualified Expenses'' expected to be achieved by 
participants; and
--A brief narrative description of the project indicating any of its 
innovative aspects.

    2. Table of Contents;
    3. A completed Standard Form 424 (Attachment A) which has been 
signed by an official of the organization applying for the grant who 
has authority to obligate the organization legally; [Note: The original 
SF-424 must bear the original signature of the authorizing 
representative of the applicant organization];

[[Page 12707]]

    4. A completed Budget Information-Non-Construction Programs (SF-
424A) (Attachment B);
    5. A Budget Justification, including narrative budget justification 
for each object class category included under Section B, as described 
in PART III, Program Element III;
    6. Proof of current tax-exempt status of Applicant or Joint 
Applicant (See Part II B.);
    7. A project narrative, limited to the number of pages specified 
below, which includes all of the required elements described in Part 
III. [Specific information/data required under each component is 
described in Part III Section I, Evaluation Criteria.]
    8. Appendices, which should include the following:
    (a) (Where Application is submitted by a State or Local government 
agency or Tribal government jointly with a tax exempt non-profit 
organization) a properly executed Joint Application Agreement as 
described in PART II B.(2), above;
    (b) Filled out, signed and dated Assurances--Non-Construction 
Programs (SF-424B), (Attachment C);
    (c) Restrictions on Lobbying--Certification for Contracts, Grants, 
Loans, and Cooperative Agreements: filled out, signed and dated form 
found at Attachment D;
    (d) Disclosure of Lobbying Activities, SF-LLL: Filled out, signed 
and dated form found at Attachment E, if appropriate (omit Items 11-15 
on the SF LLL and ignore references to continuation sheet SF-LLL-A)
    (e) Maintenance of Effort Certification (See Attachment F);
    (f) Signed Agreement(s) with partnering Financial Institution(s) 
(or Statements of Policy in the case of Credit Union or CDFI 
applicants) including identification of insurance carrier and current 
insurance number (see Part III. Program Sub-Element II(c));
    (g) Signed Agreements with providers of required non-Federal 
matching contributions (See PART II, Section I.)
    (h) Resumes and/or position descriptions (see Part III Program 
Element I);
    (i) (Where Applicant is ``lead agency'' of a collaborative or 
consortium of organizations) Copies of Partnering Agreements between 
the Applicant and each of the partnering members, setting forth their 
roles and responsibilities. (See Part III, Elements I and II(b))
    (j) Any letters and/or supporting documents from collaborating or 
partnering agencies in target communities, providing additional 
information on staffing and experience in support of narrative under 
Part III Element I. [Such documents are not part of the Narrative and 
should be included in the Appendices. These documents are therefore not 
counted against the page limitations of the Narrative.]; and
    (k) Single points of contact comments, if applicable.
    Applications must be uniform in composition since OCS may find it 
necessary to duplicate them for review purposes. Therefore, 
applications must be submitted on white 8-1/2  x  11 inch paper only 
(See Part IV D. (2), above, concerning margins, type size, etc). They 
must not include colored, oversized or folded materials. Do not include 
organizational brochures or other promotional materials, slides, films, 
clips, etc. in the proposal. They will be discarded if included. The 
applications should be two-hole punched at the top center and fastened 
separately with a compressor slide paper fastener, or a binder clip. 
The submission of bound plans, or plans enclosed in binders is 
specifically discouraged.

B. Acknowledgment of Receipt

    Acknowledgment of Receipt--All applicants will receive an 
acknowledgment with an assigned identification number. Applicants are 
requested to supply a self-addressed mailing label with their 
Application, or a FAX number or e-mail address which can be used for 
acknowledgment. The assigned identification number, along with any 
other identifying codes, must be referenced in all subsequent 
communications concerning the Application. If an acknowledgment is not 
received within three weeks after the deadline date, please notify ACF 
by telephone at (202) 401-5307.

Part VII. Post Award Information and Reporting Requirements

A. Notification of Grant Award

    Following approval of the applications selected for funding, notice 
of project approval and authority to draw down project funds will be 
made in writing. The official award document is the Financial 
Assistance Award which provides the amount of Federal funds approved 
for use in the project, the project and budget period for which support 
is provided, the terms and conditions of the award, and the total 
project period for which support is contemplated.

B. Attendance at Technical Assistance and Evaluation Workshops/
Conferences

    OCS hopes to sponsor one or more national evaluation workshops in 
Washington, DC or in other locations during the course of the five-year 
project. Project Directors will be expected to attend such workshops 
provided additional funds can be made available by OCS for expenses of 
attending.

C. Reporting Requirements

    Grantees will be required to submit a semi-annual program progress 
and financial report (SF 269) covering the six months after grant 
award, and similar reports after conclusion of the first Project Year. 
Such reports will be due 60 days after the reporting period. Thereafter 
grantees will be required to submit annual program progress and 
financial reports (SF 269), as well as a final program progress and 
financial report within 90 days of the expiration of the grant.

D. Audit Requirements

    Grantees are subject to the audit requirements in 45 CFR Part 74 
(non-profit organizations) or Part 92 (governmental entities) which 
require audits under OMB Circular A-133.

E. Prohibitions and Requirements with Regard to Lobbying

    Section 319 of Public Law 101-121, signed into law on October 23, 
1989, imposes prohibitions and requirements for disclosure and 
certification related to lobbying on recipients of Federal contracts, 
grants, cooperative agreements, and loans. It provides limited 
exemptions for Indian tribes and tribal organizations. Current and 
prospective recipients (and their subtier contractors and/or grantees) 
are prohibited from using appropriated funds for lobbying Congress or 
any Federal agency in connection with the award of a contract, grant, 
cooperative agreement or loan. In addition, for each award action in 
excess of $100,000 (or $150,000 for loans) the law requires recipients 
and their subtier contractors and/or subgrantees (1) to certify that 
they have neither used nor will use any appropriated funds for payment 
to lobbyists, (2) to submit a declaration setting forth whether 
payments to lobbyists have been or will be made out of non-appropriated 
funds and, if so, the name, address, payment details, and purpose of 
any agreements with such lobbyists whom recipients or their subtier 
contractors or subgrantees will pay with the non-appropriated funds and 
(3) to file quarterly up-dates about the use of lobbyists if an event 
occurs that materially affects the accuracy of the information 
submitted by way of declaration and certification.
    The law establishes civil penalties for noncompliance and is 
effective with

[[Page 12708]]

respect to contracts, grants, cooperative agreements and loans entered 
into or made on or after December 23, 1989. See Attachment H, for 
certification and disclosure forms to be submitted with the 
applications for this program.

F. Applicable Federal Regulations

    Attachment K indicates the regulations which apply to all 
applicants/grantees under the Assets for Independence Demonstration 
Program.

    Dated: February 14, 2001.
Robert Mott,
Acting Director, Office of Community Services.

BILLING CODE 4184-01-P

[[Page 12709]]

[GRAPHIC] [TIFF OMITTED] TN27FE01.001


[[Page 12710]]



Attachment A

Instructions for the SF-424

    Public reporting burden for this collection of information is 
estimated to average 45 minutes per response, including time for 
reviewing instructions, searching existing data sources, gathering 
and maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding the burden 
estimate or any other aspect of this collection of information, 
including suggestions for reducing this burden, to the Office of 
Management and Budget, Paperwork Reduction Project (0348-0043), 
Washington, DC 20503.
    PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF 
MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE 
SPONSORING AGENCY.
    This is a standard form used by applicants as a required 
facesheet for preapplications and applications submitted for Federal 
assistance. It will be used by Federal agencies to obtain applicant 
certification that States which have established a review and 
comment procedure in response to Executive Order 12372 and have 
selected the program to be included in their process, have been 
given an opportunity to review the applicant's submission.

Item and Entry

    1. Self-explanatory.
    2. Date application submitted to Federal agency (or State if 
applicable) and applicant's control number (if applicable).
    3. State use only (if applicable).
    4. If this application is to continue or revise an existing 
award, enter present Federal identifier number. If for a new 
project, leave blank.
    5. Legal name of applicant, name of primary organizational unit 
which will undertake the assistance activity, complete address of 
the applicant, and name and telephone number of the person to 
contact on matters related to this application.
    6. Enter Employer Identification Number (EIN) as assigned by the 
Internal Revenue Service.
    7. Enter the appropriate letter in the space provided.
    8. Check appropriate box and enter appropriate letter(s) in the 
space(s) provided:
--``New'' means a new assistance award.
--``Continuation'' means an extension for an additional funding/
budget period for a project with a projected completion date.
--``Revision'' means any change in the Federal Government's 
financial obligation or contingent liability from an existing 
obligation.
    9. Name of Federal agency from which assistance is being 
requested with this application.
    10. Use the Catalog of Federal Domestic Assistance number and 
title of the program under which assistance is requested.
    11. Enter a brief descriptive title of the project. If more than 
one program is involved, you should append an explanation on a 
separate sheet. If appropriate (e.g., construction or real property 
projects), attach a map showing project location. For 
preapplications, use a separate sheet to provide a summary 
description of this project.
    12. List only the largest political entities affected (e.g., 
State, counties, cities).
    13. Self-explanatory.
    14. List the applicant's Congressional District and any 
District(s) affected by the program or project.
    15. Amount requested or to be contributed during the first 
funding/budget period by each contributor. Value of in-kind 
contributions should be included on appropriate lines as applicable. 
If the action will result in a dollar change to an existing award, 
indicate only the amount of the change. For decreases, enclose the 
amounts in parentheses. If both basic and supplemental amounts are 
included, show breakdown on an attached sheet. For multiple program 
funding, use totals and show breakdown using same categories as item 
15.
    16. Applicants should contact the State Single Point of Contact 
(SPOC) for Federal Executive Order 12372 to determine whether the 
application is subject to the State intergovernmental review 
process.
    17. This question applies to the applicant organization, not the 
person who signs as the authorized representative. Categories of 
debt include delinquent audit disallowances, loans and taxes.
    18. To be signed by the authorized representative of the 
applicant. A copy of the governing body's authorization for you to 
sign its application as official representative must be on file in 
the applicant's office. (Certain Federal agencies may require that 
this authorization be submitted as part of the application.)


[[Page 12711]]


[GRAPHIC] [TIFF OMITTED] TN27FE01.002


[[Page 12712]]


[GRAPHIC] [TIFF OMITTED] TN27FE01.003

BILLING CODE 4184-01-C

[[Page 12713]]

Attachment B

Instructions for the SF-424A

    Public reporting burden for this collection of information is 
estimated to average 180 minutes per response, including time for 
reviewing instructions, searching existing data sources, gathering 
and maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding the burden 
estimate or any other aspect of this collection of information, 
including suggestions for reducing this burden, to the Office of 
Management and Budget, Paperwork Reduction Project (0348-0044), 
Washington, DC 20503.
    PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF 
MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE 
SPONSORING AGENCY.

General Instructions

    This form is designed so that application can be made for funds 
from one or more grant programs. In preparing the budget, adhere to 
any existing Federal grantor agency guidelines which prescribe how 
and whether budgeted amounts should be separately shown for 
different functions or activities within the program. For some 
programs, grantor agencies may require budgets to be separately 
shown by function or activity. For other programs, grantor agencies 
may require a breakdown by function or activity. Sections A, B, C, 
and D should include budget estimates for the whole project except 
when applying for assistance which requires Federal authorization in 
annual or other funding period increments. In the latter case, 
Sections A, B, C, and D should provide the budget for the first 
budget period (usually a year) and Section E should present the need 
for Federal assistance in the subsequent budget periods. All 
applications should contain a breakdown by the object class 
categories show in Lines a-k of Section B.

Section A. Budget Summary Lines 1-4 Columns (a) and (b)

    For applications pertaining to a single Federal grant program 
(Federal Domestic Assistance Catalog number ) and ? a functional or 
activity breakdown, enter on Line 1 under Column (a) the Catalog 
program title and the Catalog number in Column (b).
    For applications pertaining to a single program requiring budget 
amounts by multiple functions or activities, enter the name of each 
activity or function on each line in Column (a), and enter the 
Catalog number in Column (b). For applications pertaining to 
multiple programs where none of the programs require a breakdown by 
function or activity, enter the Catalog program title on each line 
in Column (a) and the respective Catalog number on each line in 
Column (b).
    For applications pertaining to multiple programs where one or 
more programs require a breakdown by function or activity, prepare a 
separate sheet for each program requiring the breakdown. Additional 
sheets should be used when one form does not provide adequate space 
for all breakdown of data required. However, when more than one 
sheet is used, the first page should provide the summary totals by 
programs.
    Lines 1-4, Columns (c) through (g).
    For new applications, leave Column (c) and (d) blank. For each 
line entry in Columns (a) and (b), enter in Columns (e), (f), and 
(g) the appropriate amounts of funds needed to support the project 
for the first funding period (usually a year).
    For continuing grant programs applications, submit these forms 
before the end of each funding period as required by the grantor 
agency. Enter in Columns (c) and (d) the estimated amounts of funds 
which will remain unobligated at the end of the grant funding period 
only if the Federal grantor agency instructions provide for this. 
Otherwise, leave these columns blank. Enter in columns (e) and (f) 
the amounts of funds needed for the upcoming period. The amount(s) 
in Column (g) should be the sum of amounts in Columns (e) and (f).
    For supplemental grants and changes to existing grants, do not 
use Columns (c) and (d). Enter in Column (e) the amount of the 
increase or decrease of non-Federal funds. In Column (g) enter the 
new total budgeted amount (Federal and non-Federal) which includes 
the total previous authorized budgeted amounts plus or minus, as 
appropriate, the amounts show in Columns (e) and (f). The amount(s) 
in column (g) should not equal the sum of amounts in Columns (e) and 
(f).
    Line 5--Show the totals for all columns used.

Section B Budget Categories

    In the column headings (1) through (4), enter the titles of the 
same programs, functions, and activities shown on Lines 1-4, Column 
(a), Section A. When additional sheets are prepared for Section A, 
provide similar column headings on each sheet. For each program, 
function or activity, fill in the total requirements for funds (both 
Federal and non-Federal) by object class categories.
    Line 6a-i--Show the totals of Lines 6a to 6h in each column.
    Line 6j--Show the amount of indirect cost.
    Line 6k--Enter the total of amounts on Lines 6i and 6j. For all 
applications for new grants and continuation grants the total amount 
in column (5), Line 6k, should be the same as the total amount shown 
in Section A, Column (g), Line 5. For supplemental grants and 
changes to grants, the total amount of the increase or decrease as 
shown in Columns (1)-(4), Line 6k should be the same as the sum of 
the amounts in Section A, Columns (e) and (f) on Line 5.
    Line 7--Enter the estimated amount of income, if any, expected 
to be generated from this project. Do not add or subtract this 
amount from the total project amount. Show under the program 
narrative statement the nature and source of income. The estimated 
amount of program income may be considered by the Federal grantor 
agency in determining the total amount of the grant.

Section C. Non-federal Resources

    Lines 8-11--Enter amounts of non-Federal resources that will be 
used on the grant. If in-kind contributions are included, provide a 
brief explanation on a separate sheet.
    Column (a)--Enter the program titles identical to Column (a), 
Section A. A breakdown by function or activity is not necessary.
    Column (b)--Enter the contribution to the made by the applicant.
    Column (c)--Enter the amount of the State's crash and in-kind 
contribution if the applicant is not a State of State agency. 
Applicants which are a State of State agencies should leave this 
column blank.
    Column (d)--Enter the amount of cash and in-kind contributions 
to be made from all other sources.
    Column (e)--Enter totals of Columns (b)9, (c), and (d).
    Line 12--enter the total for each of columns (b)-(e). The amount 
in Column (e) should be equal to the amount on Line 5, Column (f), 
Section A.

Section D. Forecasted Cash Needs

    Line 13--Enter the amount of cash needed by quarter from the 
grantor agency during the first year.
    Line 14--Enter the amount of cash from all other sources needed 
by quarter during the first year.
    Line 15--Enter the totals of amounts on Lines 13 and 14.

Section E. Budget Estimates of Federal Funds Needed for Balance of the 
Project

    Lines 16-19--Enter in column (a) the same grant program titles 
shown in Column (a), Section A. A breakdown by function or activity 
is not necessary. For new applications and continuation grant 
applications, enter in the proper columns amounts of Federal funds 
which will be needed to complete the program or project over the 
succeeding funding periods (usually in years). This section need not 
be completed for revisions (amendments, changes, or supplements) to 
funds for the current year of existing grants.
    If more than four lines are needed to list the program titles, 
submit additional schedules as necessary.
    Lines 20--Enter the total for each of the Columns (b)-(e). When 
additional schedules are prepared for this Section, annotate 
accordingly and show the overall totals on this line.

Section F. Other Budget Information

    Line 21--Use this space to explain amounts for individual direct 
object class cost categories that may appear to be out of the 
ordinary or to explain the details as required by the Federal 
grantor agency.
    Line 22--Enter the type of indirect rate (provisional 
predetermined, final or fixed) that will be in effect during the 
funding period, the estimated amount of the base to which the are is 
applied, and the total indirect expense.
    Line 23--provide any other explanations or comments deemed 
necessary.

Attachment C

Assurances--Non-Construction Programs

    Public reporting burden for this collection of information is 
estimated to average 15 minutes per response, including time for

[[Page 12714]]

reviewing instructions, searching existing data sources, gathering 
and maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding the burden 
estimate or any other aspect of this collection of information, 
including suggestions for reducing this burden, to the Office of 
Management and Budget, Paperwork Reduction Project (0348-0040), 
Washington, DC 20503.
    PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE OFFICE OF 
MANAGEMENT AND BUDGET. SEND IT TO THE ADDRESS PROVIDED BY THE 
SPONSORING AGENCY.

    Note: Certain of these assurances may not be applicable to your 
project or program. If you have questions, please contact the 
awarding agency. Further, certain Federal awarding agencies may 
require applicants to certify to additional assurances. If such is 
the case, you will be notified.

    As the duly authorized representative of the applicant, I 
certify that the applicant:
    1. Has the legal authority to apply for Federal assistance and 
the institutional, managerial and financial capability (including 
funds sufficient to pay the non-Federal share of project cost) to 
ensure proper planning, management and completion of the project 
described in this application.
    2. Will give the awarding agency, the Comptroller General of the 
United States and, if appropriate, the State, through any authorized 
representative, access to and the right to examine all records, 
books, papers, or documents related to the award; and will establish 
a proper accounting system in accordance with generally accepted 
accounting standards or agency directives.
    3. Will establish safeguards to prohibit employees from using 
their positions for a purpose that constitutes or presents the 
appearance of personal or organizational conflict of interest, or 
personal gain.
    4. Will initiate and complete the work within the applicable 
time frame after receipt of approval of the awarding agency.
    5. Will comply with the Intergovernmental Personnel Act of 1970 
(42 U.S.C. Secs. 4728-4763) relating to prescribed standards for 
merit systems for programs funded under one of the 19 statutes or 
regulations specified in Appendix A of OPM's Standards for a Merit 
System of Personnel Administration (5 C.F.R. 900, Subpart F).
    6. Will comply with all Federal statutes relating to 
nondiscrimination. These include but are not limited to: (a) Title 
VI of the Civil Rights Act of 1964 (P.L. 88-352) which prohibits 
discrimination on the basis of race, color or national origin; (b) 
Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 
Secs. 1681-1683, and 1685-1686), which prohibits discrimination on 
the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, 
as amended (29 U.S.C. Sec. 794), which prohibits discrimination on 
the basis of handicaps; (d) the Age Discrimination Act of 1975, as 
amended (42 U.S.C. Secs. 6101-6107), which prohibits discrimination 
on the basis of age; (e) the Drug Abuse Office and Treatment Act of 
1972 (P.L. 92-255), as amended, relating to nondiscrimination on the 
basis of drug abuse; (f) the Comprehensive Alcohol Abuse and 
Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 
(P.L. 91-616), as amended, relating to nondiscrimination on the 
basis of alcohol abuse or alcholism; (g) Secs. 523 and 527 of the 
Public Health Service Act of 1912 (42 U.S.C. Secs. 290 dd-3 and 290 
ee 3), as amended, relating to confidentiality of alcohol and drug 
abuse patient records; (h) Title VIII of the Civil Rights Act of 
1968 (42 U.S.C. Secs. 3601 et seq.), as amended, relating to 
nondiscrimination in the sale, rental or financing of housing; (i) 
any other nondiscrimination provisions in the specific statute(s) 
under which application for Federal assistance is being made; and 
(j) the requirements of any other nondiscrimination statute(s) which 
may apply to the application.
    7. Will comply, or has already complied, with the requirements 
of Title II and III of the Uniformm Relocation Assistance and Real 
Property Acquisition Policies Act of 1970 (P.L. 91-646) which 
provide for fair and equitable treatment of persons displaced or 
whose property is acquired as a result of Federal or federally-
assisted programs. These requirements apply to all interests in real 
property acquired for project purposes regardless of Federal 
participation in purchases.
    8. Will comply, as applicable, with provisions, of the Hatch Act 
(5 U.S.C. Secs. 1501-1508 and 7324-7328) which limit the political 
activities of employees whose principal employment activities are 
funded in whole or in part with Federal funds.
    9. Will comply, as applicable, with the provisions of the Davis-
Bacon Act (40 U.S.C. Secs. 276a to 276a-7), the Copeland Act (40 
U.S.C. Sec. 276c and 18 U.S.C. Sec. 874), and the Contract Work 
Hours and Safety Standards Act (40 U.S.C. Secs. 327-333), regarding 
labor standards for federally-assisted construction subagreements.
    10. Will comply, if applicable, with flood insurance purchase 
requirements of Section 102(a) of the Flood Disaster Protection Act 
of 1973 (P.L. 93-234) which requires recipients in a special flood 
hazard area to participate in the program and to purchase flood 
insurance if the total cost of insurable construction and 
acquisition is $10,000 or more.
    11. Will comply with environmental standards which may be 
prescribed pursuant to the following: (a) institution of 
environmental quality control measures under the National 
Environmental Policy Act of 1969 (P.L. 91-190) and Executive Order 
(EO) 11514; (b) notification of violating facilities pursuant to EO 
11783; (c) protection of wetlands pursuant to EO 11990; (d) 
evaluation of flood hazards in floodplains in accordance with EO 
11988; (e) assurance of project consistency with the approved State 
management program developed under the Coastal Zone Management Act 
of 1972 (16 U.S.C. Secs. 1451 et seq.); (f) conformity of Federal 
actions to State (Clean Air) Implementation Plans under Section 
176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. 
Secs. 7401 et seq.); (g) protection of underground sources of 
drinking water under the Safe Drinking Water Act of 1974, as amended 
(P.L. 93-523); and, (h) protection of endangered species under the 
Endangered Species Act of 1973, as amended (P.L. 93-205).
    12. Will comply with the Wild and Scenic Rivers Act of 1968 (16 
U.S.C. Secs. 1271 et seq.) related to protecting components or 
potential components of the national wild and scenic rivers system.
    13. Will assist the awarding agency in assuring compliance with 
Section 106 of the National Historic Preservation Act of 1966, as 
amended (16 U.S.C. Sec. 470), EO 11593 (identification and 
protection of historic properties), and the Archaeological and 
Historic Preservation Act of 1974 (16 U.S.C. Secs. 469a-1 et seq.).
    14. Will comply with P.L. 93-348 regarding the protection of 
human subjects involved in research, development, and related 
activities supported by this award of assistance.
    15. Will comply with the Laboratory Animal Welfare Act of 1966 
(P.L. 89-544, as amended, 7 U.S.C. Secs. 2131 et seq.) pertaining to 
the care, handling, and treatment of warm blooded animals held for 
research, teaching, or other activities supported by this award of 
assistance.
    16. Will comply with the Lead-Based Paint Poisoning Prevention 
Act (42 U.S.C. Secs. 4801 et seq.) which prohibits the use of lead-
based paint in construction or rehabilitation of residence 
structures.
    17. Will cause to be performed the required financial and 
compliance audits in accordance with the Single Audit Act Amendments 
of 1966 and OMB Circular No. A-133, ``Auditis of States, Local 
Governments, and Non-Profit Organizations.''
    18. Will comply with all applicable requirements of all other 
Federal laws, executive orders, regulations, and policies governing 
this program.
----------------------------------------------------------------------
Signature of Authorized Certifying Official

----------------------------------------------------------------------
Title

----------------------------------------------------------------------
Applicant Organization

----------------------------------------------------------------------
Date Submitted

Attachment D

Certification Regarding Lobbying

Certification for Contracts, Grants, Loans, and Cooperative Agreements

    The undersigned certifies, to the best of his or her knowledge 
and belief, that:
    (1) No Federal appropriated funds have been paid or will be 
paid, by or on behalf of the undersigned, to any person for 
influencing or attempting to influence an officer or employee of an 
agency, a Member of Congress, an officer or employee of Congress, or 
an employee of a Member of Congress in connection with the awarding 
of any Federal contract, the making of any Federal grant, the making 
of any Federal loan, the entering into of any cooperative agreement, 
and the extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.

[[Page 12715]]

    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
infuence an officer or employee of any agency, a Member of Congress, 
an officer or employee of Congress, or an employee of a Member of 
Congress in connection with this Federal contract, grant, loan, or 
cooperative agreement, the undersigned shall complete and submit 
Standard Form-LLL, ``Disclosure Form to Report Lobbying,'' in 
accordance with its instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards 
at all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all 
subrecipients shall certify and disclose accordingly. This 
certification is a material representation of fact upon which 
reliance was placed with this transaction was made or entered into. 
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, 
U.S. Code. Any person who fails to file the required certification 
shall be subject to a civil penalty of not less than $10,000 and not 
more than $100,000 for each such failure.

Statement for Loan Guarantees and Loan Insurance

    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or 
an employee of a Member of Congress in connection with this 
commitment providing for the United States to insure or guarantee a 
loan, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure Form to Report Lobbying,'' in accordance with its 
instructions. Submission of this statement is a prerequisite for 
making or entering into this transaction imposed by section 1352, 
title 31, U.S. Code. Any person who fails to file the required 
statement shall be subject to a civil penalty of not less than 
$10,000 and not more than $100,000 for each such failure.
----------------------------------------------------------------------
Signature

----------------------------------------------------------------------
Title

----------------------------------------------------------------------
Organization


BILLING CODE 4184-01-P

[[Page 12716]]

[GRAPHIC] [TIFF OMITTED] TN27FE01.004

BILLING CODE 4184-01-C

Attachment E

Instructions for Completion of SF-LLL, Disclosure of Lobbying 
Activities

    This disclosure form shall be completed by the reporting entity, 
whether subawardee or prime Federal recipient, at the initiation or 
receipt of a covered Federal action, or a material change to a 
previous filing, pursuant to title 31 U.S.C. section 1352. The 
filing of a form is required for each payment or agreement to make 
payment to any lobbying entity for influencing or attempting to 
influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a 
Member of Congress in connection with a covered Federal action. 
Complete all items that apply for both the initial filing and 
material change report. Refer to the implementing guidance published 
by the Office of Management and Budget for additional information.
    1. Identify the type of covered Federal action for which 
lobbying activity is and/or has been secured to influence the 
outcome of a covered Federal action.
    2. Identify the status of the covered Federal action.
    3. Identify the appropriate classification of this report. If 
this is a followup report caused by a material change to the 
information previously reported, enter the year and quarter in which 
the change occurred. Enter the date of the last previously submitted 
report by this reporting entity for this covered Federal action.
    4. Enter the full name, address, city, State and zip code of the 
reporting entity. Include Congressional District, if known. Check 
the appropriate classification of the reporting entity that 
designates if it is, or expects to be, a prime or subaward 
recipient. Identify the tier of the subawardee, e.g., the first 
subawardee of the prime is the 1st tier. Subawards include but are 
not limited to subcontracts, subgrants and contract awards under 
grants.
    5. If the organization filing the report in item 4 checks 
``Subawardee,'' then enter the full name, address, city, State and 
zip code of the prime Federal recipient. Include Congressional 
District, if known.
    6. Enter the name of the Federal agency making the award or loan 
commitment. Include at least one organizational level below agency 
name, if known. For example,

[[Page 12717]]

Department of Transportation, United States Coast Guard.
    7. Enter the Federal program name of description for the covered 
Federal action (item 1). If known, enter the full Catalog of Federal 
Domestic Assistance (CFDA) number for grants, cooperative 
agreements, loans, and loan commitments.
    8. Enter the most appropriate Federal identifying number 
available for the Federal action identified in item 1 (e.g., Request 
for Proposal (RFP) number, Invitation for Bid (IFB) number; grant 
announcement number; the contract, grant, or loan award number; the 
application/proposal control number assigned by the Federal agency). 
Include prefixes, e.g., ``RFP-DE-09-001.''
    9. For a covered Federal action where there has been an award or 
loan commitment by the Federal agency, enter the Federal amount of 
the award/loan commitment for the prime entity identified in item 4 
or 5.
    10. (a) Enter the full name, address, city, State and zip code 
of the lobbying registrant under the Lobbying Disclosure Act of 1995 
engaged by the reporting entity identified in item 4 to influence 
the covered Federal action.
    (b) Enter the full names of the individual(s) performing 
services, and include full address if different from 10(a). Enter 
Last Name, First Name, and Middle Initial (MI).
    11. The certifying official shall sign and date the form, print 
his/her name, title, and telephone number.

    According to the Paperwork Reduction Act, as amended, no persons 
are required to respond to a collection of information unless it 
displays a valid OMB Control Number. the valid OMB control number 
for this information collection is OMB No. 0348-0046. Public 
reporting burden for this collection of information is estimated to 
average 10 minutes per response, including time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. Send comments regarding the burden 
estimate or any other aspect of this collection of information, 
including suggestions for reducing this burden, to the Office of 
Management and Budget, Paperwork Reduction Project (0348-0046), 
Washington, DC 20503.

Certification Regarding Maintenance Of Effort

    In accordance with the applicable program statute(s) and 
regulation(s), the undersigned certifies that financial assistance 
provided by the Administration for Children and Families, for the 
specified activities to be performed under the ________________ 
Program by ________________ (Applicant Organization), will be in 
addition to, and not in substitution for, comparable activities 
previously carried on without Federal assistance.
----------------------------------------------------------------------
Signature of Authorized Certifying Official

----------------------------------------------------------------------
Title

----------------------------------------------------------------------
Date

Attachment G

Certification Regarding Drug-Free Workplace Requirements

    This certification is required by the regulations implementing 
the Drug-Free Workplace Act of 1988: 45 CFR Part 76, Subpart, F. 
Sections 76.630(c) and (d)(2) and 76.645(a)(1) and (b) provide that 
a Federal agency may designate a central receipt point for STATE-
WIDE AND STATE AGENCY-WIDE certifications, and for notification of 
criminal drug convictions. For the Department of Health and Human 
Services, the central point is: Division of Grants Management and 
Oversight, Office of Management and Acquisition, Department of 
Health and Human Services, Room 517-D, 200 Independence Avenue, SW 
Washington, DC 20201.

Certification Regarding Drug-Free Workplace Requirements (Instructions 
for Certification)

    1. By signing and/or submitting this application or grant 
agreement, the grantee is providing the certification set out below.
    2. The certification set out below is a material representation 
of fact upon which reliance is placed when the agency awards the 
grant. If it is later determined that the grantee knowingly rendered 
a false certification, or otherwise violates the requirements of the 
Drug-Free Workplace Act, the agency, in addition to any other 
remedies available to the Federal Government, may take action 
authorized under the Drug-Free Workplace Act.
    3. For grantees other than individuals, Alternate I applies.
    4. For grantees who are individuals, Alternate II applies.
    5. Workplaces under grants, for grantees other than individuals, 
need not be identified on the certification. If known, they may be 
identified in the grant application. If the grantee does not 
identify the workplaces at the time of application, or upon award, 
if there is no application, the grantee must keep the identity of 
the workplace(s) on file in its office and make the information 
available for Federal inspection. Failure to identify all known 
workplaces constitutes a violation of the grantee's drug-free 
workplace requirements.
    6. Workplace identifications must include the actual address of 
buildings (or parts of buildings) or other sites where work under 
the grant takes place. Categorical descriptions may be used (e.g., 
all vehicles of a mass transit authority or State highway department 
while in operation, State employees in each local unemployment 
office, performers in concert halls or radio studios).
    7. If the workplace identified to the agency changes during the 
performance of the grant, the grantee shall inform the agency of the 
change(s), if it previously identified the workplaces in question 
(see paragraph five).
    8. Definitions of terms in the Nonprocurement Suspension and 
Debarment common rule and Drug-Free Workplace common rule apply to 
this certification. Grantees' attention is called, in particular, to 
the following definitions from these rules.:
    Controlled substance means a controlled substance in Schedules I 
through V of the Controlled Substances Act (21 U.S.C. 812) and as 
further defined by regulation (21 CFR 1308.11 through 1308.15);
    Conviction means a finding of guilt (including a plea of nolo 
contender) or imposition of sentence, or both, by any judicial body 
charged with the responsibility to determine violations of the 
Federal or State criminal drug statutes;
    Criminal drug statute means a Federal or non-Federal criminal 
statute involving the manufacture, distribution, dispensing, use, or 
possession of any controlled substance.
    Employee means the employee of a grantee directly engaged in the 
performance of work under a grant, including: (i) All direct charge 
employees; (ii) All indirect charge employees unless their impact or 
involvement is insignificant to the performance of the grant; and, 
(iii) Temporary personnel and consultants who are directly engaged 
in the performance of work under the grant and who are on the 
grantee's payroll. This definition does not include workers not on 
the payroll of the grantee (e.g., volunteers, even if used to meet a 
matching requirement; consultants or independent contractors not on 
the grantee's payroll; or employees of subrecipients or 
subcontractors in covered workplaces).

Certification Regarding Drug-Free Workplace Requirements

Alternate I. (Grantees Other Than Individuals)

    The grantee certifies that it will or will continue to provide a 
drug-free workplace by:
    (a) Publishing a statement notifying employees that the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance is prohibited in the grantee's workplace and 
specifying the actions that will be taken against employees for 
violation of such prohibition;
    (b) Establishing an ongoing drug-free awareness program to 
inform employees about--
    (1) The dangers of drug abuse in the workplace;
    (2) The grantee's policy of maintaining a drug-free workplace;
    (3) Any available drug counseling, rehabilitation, and employee 
assistance programs; and
    (4) The penalties that may be imposed upon employees for drug 
abuse violations occurring in the workplace;
    (c) Making it a requirement that each employee to be engaged in 
the performance of the grant be given a copy of the statement 
required by paragraph (a);
    (d) Notifying the employee in the statement required by 
paragraph (a) that, as a condition of employment under the grant, 
the employee will--
    (1) Abide by the terms of the statement; and
    (2) Notify the employer in writing of his or her conviction for 
a violation of a criminal drug statute occurring in the workplace no 
later than five calendar days after such conviction;
    (e) Notifying the agency in writing, within ten calendar days 
after receiving notice under paragraph (d)(2) from an employee or 
otherwise receiving actual notice of such

[[Page 12718]]

conviction. Employers of convicted employees must provide notice, 
including position title, to every grant officer or other designee 
on whose grant activity the convicted employee was working, unless 
the Federal agency has designated a central point for the receipt of 
such notices. Notice shall include the identification number(s) of 
each affected grant;
    (f) Taking one of the following actions, within 30 calendar days 
of receiving notice under paragraph (d)(2), with respect to any 
employee who is so convicted--
    (1) Taking appropriate personnel action against such an 
employee, up to and including termination, consistent with the 
requirements of the Rehabilitation Act of 1973, as amended; or
    (2) Requiring such employee to participate satisfactorily in a 
drug abuse assistance or rehabilitation program approved for such 
purposes by a Federal, State, or local health, law enforcement, or 
other appropriate agency;
    (g) Making a good faith effort to continue to maintain a drug-
free workplace through implementation of paragraphs (a), (b), (c), 
(d), (e) and (f).
    (B) The grantee may insert in the space provided below the 
site(s) for the performance of work done in connection with the 
specific grant:
    Place of Performance (Street address, city, county, state, zip 
code)
    Check if there are workplaces on file that are not identified 
here.

Alternate II. (Grantees Who Are Individuals)

    (a) The grantee certifies that, as a condition of the grant, he 
or she will not engage in the unlawful manufacture, distribution, 
dispensing, possession, or use of a controlled substance in 
conducting any activity with the grant;
    (b) If convicted of a criminal drug offense resulting from a 
violation occurring during the conduct of any grant activity, he or 
she will report the conviction, in writing, within 10 calendar days 
of the conviction, to every grant officer or other designee, unless 
the Federal agency designates a central point for the receipt of 
such notices. When notice is made to such a central point, it shall 
include the identification number(s) of each affected grant. [55 FR 
21690, 21702, May 25, 1990]

Attachment H

Certification Regarding Environmental Tobacco Smoke

    Public Law 103227, Part C Environmental Tobacco Smoke, also 
known as the Pro Children Act of 1994, requires that smoking not be 
permitted in any portion of any indoor routinely owned or leased or 
contracted for by an entity and used routinely or regularly for 
provision of health, day care, education, or library services to 
children under the age of 18, if the services are funded by Federal 
programs either directly or through State or local governments, by 
Federal grant, contract, loan, or loan guarantee. The law does not 
apply to children's services provided in private residences, 
facilities funded solely by Medicare or Medicaid funds, and portions 
of facilities used for inpatient drug or alcohol treatment. Failure 
to comply with the provisions of the law may result in the 
imposition of a civil monetary penalty of up to $1000 per day and/or 
the imposition of an administrative compliance order on the 
responsible entity. By signing and submitting this application the 
applicant/grantee certifies that it will comply with the 
requirements of the Act.
    The applicant/grantee further agrees that it will require the 
language of this certification be included in any subawards which 
contain provisions for the children's services and that all 
subgrantees shall certify accordingly.

Attachment I

Certification Regarding Debarment, Suspension and Other 
Responsibility Matters

Certification Regarding Debarment, Suspension, and Other Responsibility 
Matters--Primary Covered Transactions

Instruction for Certification

    1. By signing and submitting this proposal, the prospective 
primary participant is providing the certification set out below.
    2. The inability of a person to provide the certification 
required below will not necessarily result in denial of 
participation in this covered transaction. The prospective 
participant shall submit an explanation of why it cannot provide the 
certification set out below. The certification or explanation will 
be considered in connection with the department or agency's 
determination whether to enter into this transaction. However, 
failure of the prospective primary participant to furnish a 
certification or an explanation shall disqualify such person from 
participation in this transaction.
    3. The certification in this clause is a material representation 
of fact upon which reliance was placed when the department or agency 
determined to enter into this transaction. If it is later determined 
that the prospective primary participant knowingly rendered an 
erroneous certification, in addition to other remedies available to 
the Federal Government, the department or agency may terminate this 
transaction for cause or default.
    4. The prospective primary participant shall provide immediate 
written notice to the department or agency to which this proposal is 
submitted if at any time the prospective primary participant learns 
that its certification was erroneous when submitted or has become 
erroneous by reason of changed circumstances.
    5. The terms covered transaction, debarred, suspended, 
ineligible, lower tier covered transaction, participant, person, 
primary covered transaction, principal, proposal, and voluntarily 
excluded, as used in this clause, have the meanings set out in the 
Definitions and Coverage sections of the rules implementing 
Executive Order 12549. You may contact the department or agency to 
which this proposal is being submitted for assistance in obtaining a 
copy of those regulations.
    6. The prospective primary participant agrees by submitting this 
proposal that, should the proposed covered transaction be entered 
into, it shall not knowingly enter into any lower tier covered 
transaction with a person who is proposed for debarment under 48 CFR 
part 9, subpart 9.4, debarred, suspended, declared ineligible, or 
voluntarily excluded from participation in this covered transaction, 
unless authorized by the department or agency entering into this 
transaction.
    7. The prospective primary participant further agrees by 
submitting this proposal that it will include the clause titled 
``Certification Regarding Deparment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' provided by 
the department or agency entering into this covered transaction, 
without modification, in all lower tier covered transactions and in 
all solicitations for lower tier covered transactions.
    8. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transaction that it is not proposed for debarment under 48 CFR part 
9, subpart 9.4, debarred, suspended, ineligible, or voluntarily 
excluded from the covered transaction, unless it knows that the 
certification is erroneous. A participant may decide the method and 
frequency by which it determines the eligibility of its principals. 
Each participant may, but is not required to, check the List of 
Parties Excluded from Federal Procurement and Nonprocurement 
Programs.
    9. Nothing contained in the foregoing shall be construed to 
require establishment of a system of records in order to render in 
good faith the certification required by this clause. The knowledge 
and information of a participant is not required to exceed that 
which is normally possessed by a prudent person in the ordinary 
course of business dealings.
    10. Except for transactions authorized under paragraph 6 of 
these instructions, if a participant in a covered transaction 
knowingly enters into a lower tier covered transaction with a person 
who is proposed for debarment under 49 CFR part 9, subpart 9.4, 
suspended, debarred, ineligible, or voluntarily excluded from 
participation in this transaction, in addition to other remedies 
available to the Federal Government, the department or agency may 
terminate this transaction for cause or default.

Certification Regarding Debarment, Suspension, and Other Responsibility 
Matters--Primary Covered Transactions

    (1) The prospective primary participant certifies to the best of 
its knowledge and belief, that it and its principals:
    (a) Are not presently debarred, suspended, proposed for 
debarment, declared ineligible, or voluntarily excluded by any 
Federal department or agency;
    (b) Have not within a three-year period preceding this proposal 
been convicted of or had a civil judgment rendered against them for 
commission of fraud or a criminal offense in connection with 
obtaining, attempting to obtain, or performing a public (Federal, 
State or local) transaction or contract under a public transaction; 
violation of Federal or State antitrust statutes or commission of 
embezzlement, theft, forgery, bribery,

[[Page 12719]]

falsification or destruction of records, making false statements, or 
receiving stolen property;
    (c) Are not presently indicted for or otherwise criminally or 
civilly charged by a governmental entity (Federal, State or local) 
with commission of any of the offenses enumerated in paragraph 
(1)(b) of this certification; and
    (d) Have not within a three-year period preceding this 
application/proposal had one or more public transactions (Federal, 
State or local) terminated for cause or default.
    (2) Where the prospective primary participant is unable to 
certify to any of the statements in this certification, such 
prospective participant shall attach an explanation to this 
proposal.

Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion--Lower Tier Covered Transactions

Instructions for Certification

    1. By signing and submitting this proposal, the prospective 
lower tier participant is providing the certification set out below.
    2. The certification in this clause is a material representation 
of fact upon which reliance was placed when this transaction was 
entered into. If it is later determined that the prospective lower 
tier participant knowingly rendered an erroneous certification, in 
addition to other remedies available to the Federal Government the 
department or agency with which this transaction originated may 
pursue available remedies, including suspension and/or debarment.
    3. The prospective lower tier participant shall provide 
immediate written notice to the person to which this proposal is 
submitted if at any time the prospective lower tier participant 
learns that its certification was erroneous when submitted or had 
become erroneous by reason of changed circumstances.
    4. The terms covered transaction, debarred, suspended, 
ineligible, lower tier covered transaction, participant, person, 
primary covered transaction, principal, proposal, and voluntarily 
excluded, as used in this clause, have the meaning set out in the 
Definitions and Coverage sections of rules implementing Executive 
Order 12549. You may contact the person to which this proposal is 
submitted for assistance in obtaining a copy of those regulations.
    5. The prospective lower tier participant agrees by submitting 
this proposal that, [[Page 33043]] should the proposed covered 
transaction be entered into, it shall not knowingly enter into any 
lower tier covered transaction with a person who is proposed for 
debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, 
declared ineligible, or voluntarily excluded from participation in 
this covered transaction, unless authorized by the department or 
agency with which this transaction originated.
    6. The prospective lower tier participant further agrees by 
submitting this proposal that it will included this clause titled 
``Certification Regarding Debarment, Suspension, Ineligibility and 
Voluntary Exclusion-Lower Tier Covered Transaction,'' without 
modification, in all lower tier covered transactions and in all 
solicitations for lower tier covered transactions.
    7. A participant in a covered transaction may rely upon a 
certification of a prospective participant in a lower tier covered 
transactions that it is not proposed for debarment under 48 CFR part 
9, subpart 9.4, debarred, suspended, ineligible, or voluntarily 
excluded from covered transactions, unless it knows that the 
certification is erroneous. A participant may decide the method and 
frequency by which it determines the eligibility of its principals. 
Each participant may, but is not required to, check the List of 
Parties Excluded from Federal Procurement and Nonprocurement 
Programs.
    8. Nothing contained in the foregoing shall be construed to 
require establishment of a system of records in order to render in 
good faith the certification required by this clause. The knowledge 
and information of a participant is not required to exceed that 
which is normally possessed by a prudent person in the ordinary 
course of business dealings.
    9. Except for transactions authorized under paragraph 5 of these 
instructions, if a participant in a covered transaction knowingly 
enters into a lower tier covered transactions with a person who is 
proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, 
debarred, ineligible or voluntarily excluded from participation in 
this transaction, in addition to other remedies available to the 
Federal Government, the department or agency with which this 
transaction originated may pursue available remedies, including 
suspension and/or debarment.

Certification Regarding Debarment, Suspension, Ineligibility an 
Voluntary Exclusion--Lower Tier Covered Transactions

    (1) The prospective lower tier participant certifies, by 
submission of this proposal, that neither it nor its principals is 
presently debarred, suspended, proposed for debarment, declared 
ineligible, or voluntarily excluded from participation in this 
transaction by any Federal department or agency.
    (2). Where the prospective lower tier participant is unable to 
certify to any of the statements in this certification, such 
prospective participant shall attach an explanation to this 
proposal.

Attachment J

Office of Management and Budget

    It is estimated that in 2001 the Federal Government will outlay 
$305.6 billion in grants to State and local governments. Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' was 
issued with the desire to foster the intergovernmental partnership 
and strengthen federalism by relying on State and local processes 
for the coordination and review of proposed Federal financial 
assistance and direct Federal development. The Order allows each 
State to designate an entity to perform this function. Below is the 
official list of those entities. For those States that have a home 
page for their designated entity, a direct link has been provided 
below. States that are not listed on this page have chosen not to 
participate in the intergovernmental review process, and therefore 
do not have a SPOC. If you are located within one of these States, 
you may still send application materials directly to a Federal 
awarding agency.

Arkansas

Tracy L. Copeland, Manager, State Clearinghouse, Office of 
Intergovernmental Services, Department of Finance and 
Administration, 1515 W. 7th St., Room 412, Little Rock, Arkansas 
72203, Telephone: (501) 682-1074, Fax: (501) 682-5206, 
[email protected]

California

Grants Coordination, State Clearinghouse, Office of Planning and 
Research, P.O. Box 3044, Room 222, Sacramento, California 95812-
3044, Telephone: (916) 445-0613, Fax: (916) 323-3018, 
[email protected]

Delaware

Charles H. Hopkins, Executive Department, Office of the Budget, 540 
S. Dupont Highway, 3rd Floor, Dover, Delaware 19901, Telephone: 
(302) 739-3323, Fax: (302) 739-5661, [email protected]

District of Columbia

Ron Seldon, Office of Grants Management and Development, 717 14th 
Street, NW, Suite 1200, Washington, DC 20005, Telephone: (202) 727-
1705, Fax: (202 727-1617, [email protected]

Florida

Cherie L. Trainor, Florida State Clearinghouse, Department of 
Community Affairs, 2555 Shumard Oak Blvd., Tallahassee, Florida 
32399-2100, Telephone: (805) 922-5438, (850) 414-5495 (direct), Fax: 
(850) 414-0479, [email protected]

Georgia

Georgia State Clearinghouse, 270 Washington Street, SW, Atlanta, 
Georgia 30334, Telephone: (404) 656-3855, Fax: (404) 656-7901, 
[email protected]

Illinois

Virginia Bova, Department of Commerce, and Community Affairs, James 
R. Thompson Center, 100 West Randolph, Suite 3-400, Chicago, 
Illinois 60601, Telephone: (312) 814-6028, Fax: (312) 814-8485, 
[email protected]

Iowa

Steven R. McCann, Division of Community and Rural Development, Iowa 
Department of Economic Development, 200 East Grand Avenue, Des 
Moines, Iowa 50309, Telephone: (515) 242-4719, Fax: (515) 242-4809, 
[email protected]

Kentucky

Ron Cook, Department for Local Government, 1024 Capital Center 
Drive, Suite 340, Frankfort, Kentucky 40601, Telephone: (502) 573-
2382, Fax: (502) 573-2512, [email protected]

Maine

Joyce Benson, State Planning Office, 184 State Street, 38 State 
House Station, Augusta, Maine 04333, Telephone: (207)

[[Page 12720]]

287-3261, (207) 287-1461 (direct), Fax: (207) 287-6489, 
[email protected]

Maryland

Linda Janey, Manager, Clearinghouse and Plan Review Unit, Maryland 
Office of Planning, 301 West Preston Street--Room 1104, Baltimore, 
Maryland 21201-2305, Telephone: (410) 767-4490, Fax: (410) 767-4480, 
[email protected]

Michigan

Richard Pfaff, Southeast Michigan Council of Governments, 660 Plaza 
Drive--Suite 1900, Detroit, Michigan 48226, Telephone: (313) 961-
4266, Fax: (313) 961-4869, [email protected]

Mississippi

Cathy Mallette, Clearinghouse Officer, Department of Finance and 
Administration, 550 High Street, 303 Walters Sillers Building, 
Jackson, Mississippi 39201-3087, Telephone: (601) 359-6762, Fax: 
(601) 359-6758

Missouri

Lois Pohl, Federal Assistance Clearinghouse, Office of 
Administration, P.O. Box 809, Jefferson Building, Room 915, 
Jefferson City, Missouri 65102, Telephone: (573) 751-4834, Fax: 
(573) 522-4395, [email protected]

Nevada

Heather Elliott, Department of Administration, State Clearinghouse, 
209 E. Musser Street, Room 200, Carson City, Nevada 89701, 
Telephone: (775) 684-0209, Fax: (775) 684-0260, 
[email protected]

New Hampshire

Jeffrey H. Taylor, Director, New Hampshire Office of State Planning, 
Attn: Intergovernmental Review Process, Mike Blake, 2\1/2\ Beacon 
Street, Concord, New Hampshire 03301, Telephone: (603) 271-2155, 
Fax: (603) 271-1728, [email protected]

New Mexico

Ken Hughes, Local Government Division, Room 201 Bataan Memorial 
Building, Santa Fe, New Mexico 87503, Telephone: (505) 827-4370, 
Fax: (505) 827-4948, [email protected]

North Carolina

Jeanette Furney, Department of Administration, 1302 Mail Service 
Center, Raleigh, North Carolina 27699-1302, Telephone: (919) 807-
2323, Fax: (919) 733-9571, [email protected]

North Dakota

Jim Boyd, Division of Community Services, 600 East Boulevard Ave., 
Dept 105, Bismarck, North Dakota 58505-0170, Telephone: (701) 328-
2094, Fax: (701) 328-2308, [email protected]

Rhode Island

Kevin Nelson, Department of Administration, Statewide Planning 
Program, One Capitol Hill, Providence, Rhode Island 02908-5870, 
Telephone: (401) 222-2093, Fax: (402) 222-2083, 
[email protected]

South Carolina

Omeagia Burgess, Budget and Control Board, Office of State Budget, 
1122 Ladies Street, 12th Floor, Columbia, South Carolina 29201, 
Telephone: (803) 734-0494, Fax: (803) 734-0645, 
[email protected]

Texas

Denise S. Francis, Director, State Grants Team, Governor's Office of 
Budget and Planning, P.O. Box 12428, Austin, Texas 78711, Telephone: 
(512) 305-9415, Fax: (512) 93-2681, [email protected]

Utah

Carolyn Wright, Utah State Clearinghouse, Governor's Office of 
Planning and Budget, State Capitol, Room 114, Salt Lake City, Utah 
84114, Telephone: (801) 538-1535, Fax: (801) 538-1547, 
[email protected]

West Virginia

Fred Cutlip, Director, Community Development Division, West Virginia 
Development Office, Building #6, Room 553, Charleston, West Virginia 
25305, Telephone: (304) 558-4010, Fax: (304) 558-3248, 
[email protected]

Wisconsin

Jeff Smith, Section Chief, Federal/State Relations, Wisconsin 
Department of Administration, 101 East Wilson Street--6th Floor, 
P.O. Box 7868, Madison, Wisconsin 53707, Telephone: (608) 266-0267, 
Fax: (608) 267-6931, [email protected]

Guam

Director, Bureau of Budget and Management Research, Office of the 
Governor, P.O. Box 2950, Agana, Guam 96910, Telephone: 011-671-472-
2285, Fax: 011-472-2825, [email protected]

Puerto Rico

Jose Caballero/Mayra Silva, Puerto Rico Planning Board, Federal 
Proposals Review Office, Minillas Government Center, P.O. Box 41119, 
San Juan, Puerto Rico 00940-1119, Telephone: (787) 723-6190, Fax: 
(787) 722-6783

North Mariana Islands

Ms. Jacoba T. Seman, Federal Programs Coordinator, Office of 
Management and Budget, Office of the Governor, Saipan, MP 96950, 
Telephone: (670) 664-2289, Fax: (670) 664-2272, 
[email protected]

Virgin Islands

Ira Mills, Director, Office of Management and Budget, #41 Norre Gade 
Emancipation Garden Station, Second Floor, Saint Thomas, Virgin 
Islands 00802, Telephone: (340) 744-0750, Fax: (340) 776-0069, 
[email protected]

    Changes to this list can be made only after OMB is notified by a 
State's officially designated representative. E-mail messages can be 
sent to [email protected]. If you prefer, you may send 
correspondence to the following postal address: Attn: Grants 
Management, Office of Management and Budget, New Executive Office 
Building, Suite 6025, 725 17th Street, NW, Washington, DC 20503.

Attachment K

DHHS Regulations Applying to All Applicants/Grantees Under the 
Assets for Independence DEMONSTRATION Program (IDA Program)

Title 45 of the Code of Federal Regulations

Part 16--Department of Grant Appeals Process
Part 74--Administration of Grants (grants with subgrants to 
entities)
Part 75--Informal Grant Appeal Procedures
Part 76--Debarment and Suspension from Eligibility for Financial 
Assistance
Subpart F--Drug Free Workplace Requirements
Part 80--Non-Discrimination Under Programs Receiving Federal 
Assistance through the Department of Health and Human Services 
Effectuation of Title VI of the Civil Rights Act of 1964
Part 81--Practice and Procedures for Hearings Under Part 80 of this 
Title
Part 83--Regulation for the Administration and Enforcement of 
Sections 799A and 845 of the Public Health Service Act
Part 84--Non-discrimination on the Basis of Handicap in Programs and 
Activities Receiving Federal Financial Assistance
Part 85--Enforcement of Non-Discrimination on the Basis of Handicap 
in Programs or Activities Conducted by the Department of Health and 
Human Services
Part 86--Nondiscrimination on the Basis of Sex in Education Programs 
and Activities Receiving or Benefiting from Financial Assistance
Part 91--Non-discrimination on the Basis of Age in Health and Human 
Services Programs or Activities Receiving Federal Financial 
Assistance
Part 92--Uniform Administrative Requirements for Grants and 
Cooperative Agreements to and Local Governments (Federal Register, 
March 11, 1988)
Part 93--New Restrictions on Lobbying Part 100--Intergovernmental 
Review of Department of Health and Human Services Programs and 
Activities

Attachment L

    Note: Attachment L can be found at 65 FR 10027, Feb. 25, 2000.

Attachment M

2001 Poverty Guidelines for the 48 Contiguous States and the District of
                                Columbia
------------------------------------------------------------------------
                                                      Poverty
                Size of family unit                  guideline    200%
------------------------------------------------------------------------
1..................................................     $8,590   $17,180
2..................................................     11,610    23,220
3..................................................     14,630    29,260
4..................................................     17,650    35,300
5..................................................     20,670    41,340
6..................................................     23,690    47,380
7..................................................     26,710    53,420

[[Page 12721]]

 
8..................................................     29,730   59,460
------------------------------------------------------------------------
For family units with more than 8 members, add $3,020 for each
  additional member. (For 200% add $6,040 for each additional member.)


                   2001 Poverty Guidelines for Alaska
------------------------------------------------------------------------
                                                      Poverty
                Size of family unit                  guideline    200%
------------------------------------------------------------------------
1..................................................    $10,730   $21,460
2..................................................     14,510    29,202
3..................................................     18,290    36,580
4..................................................     22,070    44,140
5..................................................     25,850    51,700
6..................................................     29,630    59,260
7..................................................     33,410    66,820
8..................................................     37,190   74,380
------------------------------------------------------------------------
For family units with more than 8 members, add $3,780 for each
  additional member. (For 200% add $7,560 for each additional member.)


                   2001 Poverty Guidelines for Hawaii
------------------------------------------------------------------------
                                                      Poverty
                Size of family unit                  guideline    200%
------------------------------------------------------------------------
1..................................................     $9,890   $19,780
2..................................................     13,360    26,720
3..................................................     16,830    33,660
4..................................................     20,300    40,600
5..................................................     23,770    47,540
6..................................................     27,240    54,480
7..................................................     30,710    61,420
8..................................................     34,180   68,360
------------------------------------------------------------------------
For family units with more than 8 members, add $3,470 for each
  additional member. (For 200% add $6,940 for each additional member.)

[FR Doc. 01-4242 Filed 2-26-01; 8:45 am]
BILLING CODE 4184-01-P