Appendix D- Attach-ment 2_MOU_.docx

Attachment 2 – Memorandum of Understanding between Grant Recipient and Coalition

As the Statement of Legal Eligibility, attach either Attachment 1 or Attachment 2. Use Attachment 1 if the coalition is applying for this grant on its own behalf. Use Attachment 2 if the coalition is partnering with an outside agency as its grant award recipient/legal applicant. The signatures on the Memorandum of Understanding (MOU) must include that of the grant recipient/legal applicant and the coalition. The date must not be older than 12 months at the time of application. A sample MOU is provided on the following page. The MOU submitted in the application should reflect the working relationship between the grant recipient/legal applicant and the coalition. Below are considerations when developing a relationship with an outside partnering agency serving as the grant recipient/legal applicant on behalf of a community coalition:

1. Through the Drug-Free Communities Act of 1997, it is the intent of Congress to fund the work of community coalitions addressing youth substance use. While it is allowable for the recipient to retain a portion for administration of the CARA grant, CARA funds are not meant to substantially supplement the budget of a partnering agency. CARA funds are specifically intended to support the work of the community-based coalition.

2. A coalition’s volunteer leadership must have a management role in all financial decisions related to a CARA grant applied for on their behalf by a partnering organization.

3. The recipient and coalition may want to seek professional guidance such as an attorney and/or accountant when entering into such an agreement. Both the recipient and coalition should be fully aware of and understand the commitment in which they plan to enter.

Accounting Requirements Another consideration for applicants of this grant is the administration of accounts receivable and payable. In accordance with the Office of Management and Budget's (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (commonly called "Uniform Guidance") 2 C.F.R. 200 and for HHS Awards 45 C.F.R. Part 75, a federal grant recipient must be capable of accounting for the expenditure of federal funds. Upon award of grant funds, the grant recipient is subject to a Financial Capability Review.

The review typically includes an examination of:

· Financial statements

· Reports issued to stockholders

· lending institutions

· SEC filings

· Cash flow forecasts

· loan agreements and evidence showing compliance

· Aging of accounts receivable and payable

· Financial history of the grant recipient

Details discussed in this circular should be reviewed by the grant recipient/legal applicant.

Sample Memorandum of Understanding between Grant Recipient/Legal Applicant and Coalition

This agreement between [Grant Award Recipient/Legal Applicant] and [Coalition name] shall be from [Month/Date/Year] until terminated by mutual agreement:

RESPONSIBILITIES OF THE COALITION:

a. Set policy for and oversee its own programs including goals and objectives in alignment with the CARA grant Terms and Conditions.

b. Participate, advise, and/or direct staff and volunteers, set goals and objectives for contract employees, and negotiate and make recommendations for contracts in collaboration with the grant recipient/legal applicant.

c. Create, approve, and partner in the management of the CARA budget in compliance with grant requirements.

d. Provide copies of all required documentation to the grant recipient/legal applicant as requested.

e. Reimburse grant recipient/legal applicant for any indirect or direct expenses incurred by the coalition with prior approval.

f. Be solely responsible for liabilities arising out of its program and its interaction with program participants.

g. Other

RESPONSIBILITIES OF THE LEGAL APPLICANT/GRANT RECIPIENT:

a. Provide the coalition staff with office space.

b. Compile financial reports on a mutually agreed upon schedule and provide to coalition.

c. Provide accounting services to prepare and distribute payroll, pay invoices, prepare and submit the appropriate forms for employment, wages and payroll taxes on behalf of the coalition.

d. Negotiate and/or bid and approve contracts in collaboration with the coalition.

e. Maintain all records pertaining to costs and expenses to reflect costs of labor, materials, equipment, supplies, services, and other costs and expenses when reimbursement is claimed or payment is made and share such information with the coalition.

f. Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to ONDCP or HHS in the case of a sub-recipient. ONDCP and HHS does not impose any other record retention requirements upon non-Federal entities. The only exceptions are the following:

(a)If any litigation, claim, or audit is started before the expiration of the 3-year period, the records must be retained until all litigation, claims, or audit findings involving the records have been resolved and final action taken.

(b) When the non-Federal entity is notified in writing by HHS for audit, ONDCP for audit, ONDCP for indirect costs, or HHS to extend the retention period.

(c) Records for real property and equipment acquired with Federal funds must be retained for 3 years after final disposition.

(d) When records are transferred to or maintained by ONDCP or HHS, the 3-year retention requirement is not applicable to the non-Federal entity.

(e) Records for program income transactions after the period of performance. In some cases, recipients must report program income after the period of performance. Where there is such a requirement, the retention period for the records pertaining to the earning of the program income starts from the end of the non-Federal entity's fiscal year in which the program income is earned.

(f) Indirect cost rate proposals and cost allocations plans. This paragraph applies to the following types of documents and their supporting records: Indirect cost rate computations or proposals, cost allocation plans, and any similar accounting computations of the rate at which a particular group of costs is chargeable (such as computer usage chargeback rates or composite fringe benefit rates).

g. Obtain Workman's Compensation Insurance and liability coverage for the coalition’s employees.

h. Other

[Grant Award Recipient/Legal Applicant] and [Coalition name] mutually agree to abide by all applicable federal and state anti-discrimination statutes, regulations, policies, and procedures. This agreement shall be subject to all applicable provisions of state and federal law and regulations related to the delivery and funding of grant activities.

Grant Award Recipient/Legal Applicant’s Name Grant Award Recipient/Legal Applicant’s Signature

Title Date

Official Coalition Representative’s Name Official Coalition Representative’s Signature

Title Date NOTE: All forms must be dated between January 1, 2020 and the deadline for the submission of this application. All forms require handwritten signatures and dates or they will be screened out and not move forward to merit review.