Section 691.700  Use of Grant Funds

a)         Grant awards will be issued in an amount not less than $25,000.  Funds shall be used only for the direct cost of administering, operating and maintaining a project or service in accordance with the requirements of Section 691.400.  The grant funds may not be used for organizational or community-based overhead costs, indirect costs, legal fees or levies.  Grant funds shall be used as provided by the guidelines of OMB Circular A-87 for allowable expenditures (see Section 691.200).  The following direct costs are examples of those that may be incurred when specified in the grant application budget.

1)         Personal services costs, including gross salaries and employer paid fringe benefits for full-time and part-time employees of the program being funded.

2)         Contractual services costs, including, but not limited to, medical services and printing of educational materials.

3)         Supplies/commodities as required in the operation of the program or provision of services that are directly related to its operation, which may include medical supplies and equipment supplies costing less than $100.

4)         Equipment directly related to the operation of the project.  (Equipment is defined as items costing over $100 each, with a useful life of more than one year.  Equipment costs shall include all freight and installation costs.)  Purchase of equipment items, other than those included in the approved budget, require prior written approval from the Department.

5)         Payments to the grantee shall be made on a reimbursement basis.  Grantees may request up to three months funding to be paid upon execution of the grant award.  These requests shall be made at the time of application for grant award and will be reviewed and approved by the Department.  Grantees shall provide the Department with a detailed accounting of how funding was expended.

6)         The grantee shall use the Reimbursement Certification Form provided by the Department or a reasonable facsimile of that form to request reimbursement for expenditures.

7)         The grantee shall document actual expenditures incurred for the purchase of goods and services necessary for conducting program activities or services.

8)         To be reimbursable, expenditures must be in accordance with the terms of the grant award and the program budget on file with the Department and must meet the following general criteria:

A)        Be necessary and reasonable for proper and efficient administration of the program and not be a general expense required to carry out the overall responsibilities of the agency.

B)        Be authorized or not prohibited under federal, State or local laws or regulations.

C)        Follow the application of generally accepted accounting principles appropriate to the project being funded.

D)        Not be allocable to or included as a cost of any other State or federally financed program in either the current or a prior period.

4)         The grantee shall submit requests for reimbursement monthly throughout the period of the grant.  The final request for reimbursement shall be submitted within 30 calendar days after the end of the funding period.