Attachment 4_Legal Eligibility.docx

Attachment 4. Legal Eligibility

Applicants must complete either the Statement of Legal Eligibility or Memorandum of Understanding between Grant Award Recipient and Coalition template below and submit one document to satisfy this eligibility requirement. To determine if you are required to submit a Statement of Legal Eligibility or Memorandum of Understanding between Grant Award Recipient and Coalition, an applicant should answer the two questions identified below:

If the answer to any of these questions is “no,” then the coalition must enter into a relationship with an entity eligible to receive federal funds and submit a Memorandum of Understanding between Grant Award Recipient and Coalition.

If the answer to both questions is “yes,” then the coalition is applying for this grant on its own behalf (as the Legal Applicant eligible to receive federal funding). The applicant coalition must sign and date the Statement of Legal Eligibility.

PLEASE NOTE: Although your coalition may exist within another organization that is eligible to receive federal funding, a Memorandum of Understanding (MOU) will be required. If the coalition’s name does not appear on Item #8 of the submitted SF-424 with the corresponding Employer/Taxpayer Identification Number (EIN/TIN), then a MOU must be submitted as part of the coalition’s application. Not doing so, will deem the application statutorily ineligible and will not move forward to merit review.

Use the MOU if a coalition that is partnering with an outside agency as its legal applicant/grant award recipient. The outside agency cannot be a currently funded DFC grant recipient. The signatures on the MOU must include that of the legal applicant/grant award recipient and the coalition. The date must be dated between January 2020 and the deadline for this application. The MOU submitted in the application should reflect the working relationship between legal applicant/grant award recipient and the coalition. Below are considerations when developing a relationship with an outside partnering agency serving as the legal applicant/grant award recipient on behalf of a community coalition:

· 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 DFC grant, DFC funds are not meant to substantially supplement the budget of a partnering agency. DFC funds are specifically intended to support the work of the community-based coalition.

· It is the intent of the DFC Support Program that a coalition’s volunteer leadership has a management role in all financial decisions related to a DFC grant applied for on their behalf by a partnering organization.

· 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 OMB Circular A-110, 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, including those contained in reports issued to stockholders, lending institutions, and SEC filings; cash flow forecasts; loan agreements and evidence showing compliance with these agreements; aging of accounts receivable and payable; and financial history of the grant recipient and affiliated concerns. Details discussed in this circular should be reviewed by the grant recipient/legal applicant.

For further assistance on understanding issues regarding the grant recipient’s role, responsibilities, or expectations, refer to Grants Staff Contact in Section G. Agency Contacts in this NOFO.

See following pages for templates.

See Section H. Other Information of the NOFO (FOA CDC-RFA-CE21-2107) for instructions to upload this attachment.

Statement of Legal Eligibility I, [Coalition Representative] hereby certify that [Coalition Name] is legally eligible to receive federal funding.

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

Title Date

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

Memorandum of Understanding between Grant Award 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 DFC Support Program’s 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 DFC budget in compliance with grant requirements.

d. Provide copies of all required documents 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 employee.

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.

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

Title Date

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