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1. A separate grant, identified by a unique grant document number, is issued to a State for each Empowerment Zone or Enterprise Community located within its boundaries. The State will use this grant document number when requesting funds from the DHHS Payment Management System or reporting expenditure data on the SF-269 "Financial Status Report."
2. The State must carry out the grant in accordance with Title XX of the Social Security Act, as amended by Part VI of the Omnibus Budget Reconciliation Act of 1993, "Social Services in Empowerment Zones and Enterprise Communities", and the Zones' and communities' Strategic Plans.
3. The following sections of the DHHS regulations at 45 CFR Part 96 "Block Grants" apply.
96.11 -"Basis of award to the States"
96.12 -"Grant Payment"
96.15 - "Waivers"
96.30 - "Fiscal and Administrative Requirements"
96.31 - "Audits"
96.32 - "Financial Settlement"
96.33 - "Referral of Cases to the Inspector General"
96.50 - "Complaints"
96.51 - "Hearings"
96.52 - "Appeals"
4. U.S. Department of Housing and Urban Development (HUD) regulations at 24 CFR Part 597 "Designation of Empowerment Zones and Enterprise Communities" apply.
5. U.S. department of Agriculture (USDA) regulations at 7 CFR Part 25 "Designation of Rural Empowerment Zones and Enterprise Communities" apply.
6. The State must obligate these Federal funds within two years of the date of this grant award. 45 CFR Part 92 defines an obligation as amounts of orders placed, contracts and sub-grants awarded, goods and services received, and similar transactions during a given period that will require payment by the grantee during the same or future period.
Funds not obligated within two years will be recouped by DHHS/ACF via the issuance of a negative grant award.
7. If the designation of an Empowerment Zone or Enterprise Community is terminated before the end of the Federal fiscal year, which is awarded, the State shall submit an interim financial report (SF-269) within 30 days.
ACF will issue a negative grant award to recoup an amount equal to the total of the grant award issued during that fiscal year with respect to an individual Zone or Community, multiplied by that proportion of the fiscal year remaining after the designation of the individual Zone or Community ends.
8. In the event that HUD or USDA sends a warning letter (pursuant to HUD 24 CFR Part 25.403; USDA 7 CFR Part 25.403) regarding possible termination to a designated Zone or Community and the nominating State and local governments, the State shall not release funds to satisfy obligations subsequently incurred by the designee, until it is informed by HUD or USDA that the designation will not be terminated HUD or USDA that the designation will not be terminated.
9. In the event a designation is terminated, the State shall repay to DHHS/ACF within 30 days any of these grant funds not obligated by the Empowerment Zone or Enterprise Community prior to receipt of a warning letter.
10. The State must obligate and expend these grant funds in accordance with the laws and procedures applicable to the obligation and expenditure of its own funds.
11. The provision of 31 CFR Part 205 "Rules and Regulations for Funds Transfer" applies. If this grant program is not covered by a Treasury-State Cash Management Improvement Act (CMIA) agreement, the provisions of 31 CFR Part 205.20 "Cash Advances" apply.
Section 205.20(a) states that "Cash advances to a State shall be limited to the minimum amounts needed and shall be timed to be in accord only with the actual, immediate cash requirements of the State in carrying out a program or project. The timing and amount of cash or cash advances shall be as close as is administratively feasible to the actual cash outlay by the State for direct program costs and the proportionate share of any allowable indirect costs.
12. These grant funds may not be used to supplant Federal or non-Federal funds for services and activities, which promote the purposes of Section 2007 of the Social Security Act.
13. These grant funds may not be used to meet the matching requirements of other Federal grant programs.
14. Disposition of assets, including real property, which the Empowerment Zones or Enterprise Communities acquired with these funds, but not liquidated by the expiration of the designation, will be governed by State law and procedures.
15. Financial Status Reports (SF-269) for each Empowerment Zone or Enterprise Community grant identified by unique grant document numbers, are due as follows:
Annual Reports:
90 days after the end of each grant year. The grant year
extends twelve months from the date of the grant award.
Obligation data on the second annual report will be used to compute the amount
of unobligated balances to be returned to the Federal Government.
Interim Reports:
30 days after the termination of an Empowerment Zone or Enterprize Community designation, whether it is during the first two-year period of the grant program or thereafter.
Final Report:
180 days after the designation of all Empowerment Zones and Enterprise Communities in the State has expired.
Send financial reports to:
Administration for Children and Families
Office of Financial Management, DFEBG
Aerospace Building, Room 703
370 L'Enfant Promenade, S.W.
Washington, D.C. 20447
16. All amounts reported on the final SF-269 as unliquidated obligations must be remitted back to DHHS/ACF either via a check from the State, or if funds have not been drawn, via a negative grant award.
17. The expenditure of funds under this program is subject to the annual audit requirements under the Single Audit Act of 1984 (P.L. 98-502) and the Office of Management and Budget Circulars A-128 (State Agencies) and A-133 (non-profit entities).
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If you have questions or comments, please e-mail James Gatz of the Office of Community Services.
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This document was last modified 3/27/2001 10:19am EST
