ESG by xiuliliaofz

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									To:           Units of Local Government and
              Non-Profit Homeless Providers

From:         Bertie McKie, OEO Senior Program Manager for ESG

Date:         March 29, 2006

Re:           REQUEST FOR APPLICATIONS (RFA)
              Emergency Shelter Grants Program
              Budget Available: $1,474,017

The Office of the Governor, Office of Economic Opportunity (OEO) is soliciting applications for the
Program Year 2006 Emergency Shelter Grants (ESG) Program. ESG is a United States Department of
Housing and Urban Development (HUD) grant authorized under the 1988 Stewart B. McKinney Homeless
Assistance Act. According to the Act, the State may make grants to Units of Local Government and Non-
Profit, 501(c)3, Organizations that have certification from their Unit of Local Government to carry out the
duties of the grant. ESG funds may be used for the following purposes:

         ∙   to help improve the quality of existing emergency shelters for the homeless;
         ∙   to help make available additional emergency shelters;
         ∙   to help meet the cost of operating emergency shelters;
         ∙   to provide certain essential services to homeless individuals so that these persons have access to
             a safe an sanitary shelter; and
         ∙   to alleviate the problem of homelessness through the funding of preventive services and
             activities, and the provision of financial assistance to those ―at risk‖ of becoming homeless.

All grant funds will be awarded through a competitive process. The maximum agency award for the FY
$75,000.

Organizations interested in applying for funds must submit a complete application package in compliance
with the requirements stipulated in the enclosed Request for Applications (RFA) package to the OEO no later
than 5:00 p.m. on May 2, 2006.
PY 2006 ESG RFA                                                                                         Page 2
March 29, 2006


Complete applications should be forwarded to:

Margaret H. Gibson
OEO Program Coordinator
SC Governor‘s Office of Economic Opportunity
1205 Pendleton Street, Room 361
Columbia, SC 29201

Only applications that fully adhere to the RFA and are received on or before May 2, 2006 at 5:00 p.m.
will be considered responsive. Faxed applications are not allowable.

A pre-award workshop to orient prospective applicants on the various program components and the
applications procedures has been scheduled as follows:

Event:         ESG Pre-Award Workshop

Date:          April 7, 2006

Time:          10:00 a.m.—2:00 p.m.

Location:      The Edgar Brown Building
               Room 467
               1205 Pendleton Street
               Columbia, SC 29201


Units of Local Government are encouraged to circulate this information to all homeless providers within
their jurisdiction.

The OEO has reserved twenty-five (25) parking spaces for workshop attendees in the parking lot located on
the corner of Assembly and Pendleton Streets (diagonally across from Wachovia Bank). These spaces will
be available on a first-come-first-served basis. Please see attachment for the list of specific parking space
numbers.

All questions pertaining to the program will be addressed during the workshop. However, if you have any
other questions or require additional information, please contact me at (803)734-0673, or Margaret Gibson at
(803)734-1266.

Enclosure

c:       Ashlie Lancaster, OEO Director
         Margaret Gibson, OEO Program Coordinator
         PY 2006 ESG Control File



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PY 2006 ESG RFA                                                                                     Page 3
March 29, 2006


         Available Parking Spaces for the Pre-Award Workshop on April 7, 2006

Lot is located on the corner of Assembly and Pendleton Streets (diagonally across for Wachovia Bank).
Please note the only the below listed space numbers have been made available:


                                                 # 2101
                                                 # 2102
                                                 # 2103
                                                 # 2104
                                                 # 2105
                                                 # 2106
                                                 # 2107
                                                 # 2108
                                                 # 2109
                                                 # 2110
                                                 # 2111
                                                 # 2112
                                                 # 2113
                                                 # 2114
                                                 # 2115
                                                 # 2116
                                                 # 2117
                                                 # 2118
                                                 # 2119
                                                 # 2120
                                                 # 2121
                                                 # 2122
                                                 # 2123
                                                 # 2124
                                                 # 2125




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                        Application Suggestions

• Adopt the mind-set of a review panel that may be reviewing as many as fifteen
  applications.

• Consider using the evaluation process (RFA Appendix A) when preparing the
  application to ensure that all the required components have been addressed.

• Tabs with section names printed on them make the review easier for the
  review panel by automatically highlighting the required sections.

• Ensure that the agency name appears on the front cover of the application for
  easier identification.

• Support letters should specifically detail how the collaborating agency will
  assist the applicant with the implementation of its program services and
  activities. [Quality is better than quantity.]

• A simple statement of fact works better than a carefully worded narrative
  explanation. Consider that the reviewer will be reading a considerable amount
  of information.

• Submit 3 bound and 1 unbound application packets. Ensure that the unbound
  application contains original signatures.

• If the applicant offers something unique, it should be mentioned repeatedly
  throughout the application. [Stress what sets you apart from other agencies.]

• Avoid typographical errors.

• Accurately provide dollar amounts and dates.
                               PY 2006 ESG Grant Application Checklist

   Applicant: __________________________________________________________________________

        Project Narrative

        Certification of Commitment (OEO ESG Form 1—Appendix C)

        Past Performance

        Statement of Need

        Goals and Objectives

        Project Activities

        Leveraging Documentation (i.e. Letters of Support, description and amounts of leveraging)

        Certification of Authorized Signature (OEO ESG Form 2—Appendix D)

        Letter of Commitment for Applicant’s Board Chairperson

        Timetable That The Project Will Be Completed Within The Grant Period

        Budget (OEO ESG Form 5—Appendix E) & Budget Narrative

        Certification of Matching Funds—Appendix G

        Current Fidelity Bond (Declaration Page)

        Certified Independent Audit Review, if applicable

        Endorsement from Unit of Local Government (ULG) For Non-Profits
        (OEO ESG Form 6—Appendix F, or Letter With Same Information)

        Certification Regarding Drug-Free Workplace—Appendix H

        Certification Regarding Debarment and Suspension—Appendix I

        Certification Regarding Lobbying—Appendix J

        Certification of Safe Environs—Appendix K

        501(c)3 Tax Exempt Status (Certificate Copy)

        Policy For Termination of Assistance

        Policy on Homeless Involvement

        Current Board Roster

        Map Showing Location of Shelter

        Site Plan (In Cases of Conversion or Major Rehabilitation. Include Photos)

        Outcome Measures

        Lease Agreement Or Proof of Ownership (For Those Involved In Rehabilitation)

        Project Review Form 106—Appendix L (As Applicable)

ANY APPLICABLE DOCUMENTATION NOT INCLUDED IN THE PROPOSAL UPON REVIEW WILL
CAUSE THE APPLICATION TO BE CONSIDERED NON-RESPONSIVE.

                PLEASE ENSURE OTHER REQUIRED ITEMS (AS NECESSARY) ARE INCLUDED
                  Office of the Governor



            Office of Economic Opportunity
                 1205 Pendleton Street
                  Columbia, SC 29201
                 Phone: (803)734-0662
                   Fax: (803)734-0356


   PY 2006 Emergency Shelter Grants Program



                Request For Applications



                  Ashlie Lancaster, OEO Director

 Bertie McKie, Senior Manager for Emergency Shelter Grants Program

Margaret Gibson, OEO Emergency Shelter Grants Program Coordinator
                                       OFFICE OF THE GOVERNOR
                                   OFFICE OF ECONOMIC OPPORTUNITY




                  PY 2006 EMERGENCY SHELTER GRANTS PROGRAM




                                        REQUEST FOR APPLICATIONS




                                                    Instructions


The Office of the Governor, Office of Economic Opportunity (OEO), is requesting applications for the PY 2006
Emergency Shelter Grants (ESG) Program.

All units of local government and public & private non-profit organizations (with certification from the unit of local
government in their area) that provide services to the homeless are eligible to apply for ESG funds. One application
per agency/organization should be submitted to the OEO for consideration. Private non-profit organizations must
have a 501(c)3 certification and be registered in the State of South Carolina.

Applications for ESG Program funds must be prepared in accordance with the instructions provided in this Request
for Applications (RFA). The contents of the application should be concise and objective. When statistics are cited,
the source of the data is to be completely referenced.

Any questions regarding this RFA or the ESG Program should be directed to Bertie A. McKie, Senior Manager for
ESG, at (803) 734-0673, or Margaret Gibson, ESG Program Coordinator, at (803) 734-1266, 1205 Pendleton Street,
Room 361, Columbia, South Carolina 29201.

The OEO must receive an original unbound application and three (3) bound copies no later than 5:00 p.m., on May 2,
2006. Only applications received on or before the due date will be considered for funding.




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                                    OFFICE OF THE GOVERNOR
                                OFFICE OF ECONOMIC OPPORTUNITY

                      PY 2006 EMERGENCY SHELTER GRANTS PROGRAM
                                REQUEST FOR APPLICATIONS


PART I:    OVERVIEW OF THE PROGRAM

      A.   Scope and Purpose

           The State of South Carolina‘s ESG Program exists as a result of the 1988 Stewart B. McKinney
           Homeless Assistance Act as codified by 24 CFR Part 576. According to the Act, the State can make
           grants to units of local government and non-profit organizations (which have certification from their
           unit of local government) for the following purposes:

                  to help improve the quality of existing emergency shelters for the homeless;
                  to help make available additional emergency shelters;
                  to help meet the cost of operating emergency shelters;
                  to provide certain essential services to homeless individuals so that these persons have access
                   to a safe and sanitary shelter; and,
                  to alleviate the problem of homelessness through the funding of preventive services and
                   activities and the provision of financial assistance to those ―at risk‖ of becoming homeless.

      B.   The Program’s Clientele

           The grant is intended to address the needs of the individuals and families who are homeless or at risk
           of becoming homeless. The Federal government has defined ‗homeless‘ to mean:

           An individual who lacks a fixed, regular, and adequate nighttime residence; and;

           An individual who has a primary nighttime residence that is either

            A supervised public or privately operated shelter designed to provide temporary living
             accommodations (including welfare hotels, congregate shelters, and transitional housing for the
             mentally ill);
            An institution that provides a temporary residence for individuals intended to be institutionalized;
             or
            A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation
             for human beings.

           The term ―homeless‖ does not include any individual imprisoned or otherwise detained under an act
           of Congress or a state law.

           At risk individuals include people who are at imminent risk of losing their housing because they are
           being evicted from private dwelling units or are being discharged from an institution and have no
           primary nighttime residence.

      C.   Amount Limitation

           For the 2006 Program Year, applicants may apply for a maximum amount of $75,000. There is no
           minimum amount. Only one application is allowed per agency or organization.

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D.   Matching Requirement

     ESG funds require a dollar-for-dollar match. Applicants must submit certification of a local match.
     A match may either be in the form of a cash contribution or donated/in-kind resources such as the
     value of buildings, equipment and volunteer services. Resources used for match in previous ESG
     grants or in other current grants cannot by used for this funding period. Volunteer services will be
     computed at $5.00 per hour. [Note: Volunteers providing professional services such as medical or
     legal services are valued at the reasonable and customary rate in the community.]

     Section 832 of the 1990 Cranston Gonzales National Affordable Housing Act has allowed a waiver of
     the match requirements for up to the first $100,000 of a state‘s allocation for applicants who are least
     capable of leveraging local resources to meet ESG matching requirements. Agencies applying for
     this waiver must provide a justification as to why they are incapable of leveraging local resources.

E.   Eligible Activities

     ESG funds can be expended under the following allowable categories:

     1.    RENOVATION, MAJOR REHABILITATION AND CONVERSION—24 CFR 576.3(See
           Section F. Use Requirements): Renovations and minor rehabilitation means rehabilitation that
           involves costs of 75% or less of the value of the building before rehabilitation. Conversion and
           major rehabilitation means a change in the use of the building where the cost of the conversion
           and any rehabilitation costs exceed 75% of the value of the building. Value of the building
           means the monetary value assigned to a building by an independent real estate appraiser, or as
           otherwise reasonably established by the grantee or the State subgrantee. Subgrantees must
           follow all OEO procurement policies outlined in OEO Fiscal/Technical Assistance
           Memorandum F02-01-Revised September 9, 2005, when procuring professional services. (See
           Appendix M)

           Depending upon the nature of the rehabilitation, buildings to be rehabilitated with ESG funds
           may require an environmental review after the project has been approved. The environmental
           review process can take up to 90 days to be completed; therefore, timelines for rehabilitation
           projects must be incorporated into the agency‘s timetable.

           Note: Lead-based paint work is a renovation/rehab/conversion activity.

           Ineligible rehabilitation or renovation costs include:

                  Acquisition of real property
                  New construction
                  Property clearance or demolition
                  Rehabilitation administration
                  Staff training or fund raising activities associated with rehabilitation
                  Building maintenance and repairs (See Operations—#4, page 5)

     2.    ESSENTIAL SERVICES—24 CFR 576.3 (not to exceed 30% of the grant amount):
           Essential services include a broad range of support services in the areas of employment, health,
           drug abuse or education that address the immediate needs of the homeless, and help enable
           homeless persons to become more independent and to secure permanent housing. Essential
           services are available to homeless persons who are residing in emergency and transitional
           shelters receiving PY 06 ESG funds. In addition, essential services for homeless persons may
           be funded in day shelters or soup kitchens that are designed to serve predominantly homeless
           persons. Finally, essential services may also be provided by shelters or day shelters that address
           the needs of persons residing on the street.
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     Essential services include but are not limited to:

               Assistance in obtaining permanent housing,
               Medical and psychological counseling and supervision,
               Employment counseling,
               Nutritional counseling,
               Substance abuse treatment and counseling,
               Assistance in obtaining other Federal, State and local assistance including mental health
                benefits, employment counseling; medical assistance; Veteran‘s benefits; and income
                support assistance such as Supplemental Security Income benefits, Temporary
                Assistance for Needy Families, General Assistance, and Food Stamps,
               Other services such as child care, transportation, job placement and job training, and
               Staff salaries necessary to provide the above services. Salaries charged must be for ESG
                activities only. Subgrantees must provide position descriptions for salaries charged to
                this grant.

     Ineligible essential services costs include:

               Existing services and staff (services must be new or provided to more persons)
               Salary of case management supervisor when not working directly on participant issues
               Advocacy, planning, and organizational capacity building
               Staff recruitment/training
               Transportation costs not directly associated with service delivery

3.   PREVENTIVE SERVICES—24 CFR 576.3 (not to exceed 30% of the grant amount):
     Preventive Services are activities or programs designed to prevent the incidence of
     homelessness. ESG funds for homeless prevention must be expended within 180 days of the
     start of the grant period (by December 27, 2006). Prevention services include but are not
     limited:

     a.       Short term subsidies to defray rent and utilities. (A copy of the eviction or cut-off notice
              must be maintained in the client file.)
     b.       Security deposits or first month‘s rent only for the purpose of preventing a family from
              becoming homeless to move into an apartment. (A copy of the rental agreement must be
              maintained in the client file.)
     c.       Mediation programs for landlord-tenants disputes.
     d.       Legal services programs for the representation of indigent tenants in eviction proceedings.
     e.       Payments to prevent foreclosure on a home.
     f.       Other innovative programs and activities designed to prevent the incidence of
              homelessness.

     Federal regulations require that all funds allocated to preventive services be expended within
     180 days of the grant award.

     If grant funds are to be used under this section to prevent homelessness such as by providing
     financial assistance to families who have received eviction notices or notices of termination of
     utility services, the following criteria are to be met:

               The inability of the family to make the required payments must be the result of a sudden
                reduction in income;
               The assistance must be necessary to avoid eviction of the family or termination of
                utility services to the family;
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                   There must be a reasonable prospect that the family will be able to resume payments
                    within a reasonable period of time; and
                   The assistance must not supplant funding for preexisting homeless prevention activities
                    from other sources.

            Ineligible homeless prevention costs include:

                   Housing/services to homeless persons
                   Direct payments to individuals
                   Long-term assistance beyond several months
                   Application for Federal Funds

     4.     OPERATIONAL COSTS—24 CFR 576.21(a)(3):

            a. Maintenance and Operations - This category includes expenses incurred by a subgrantee
               operating a facility with respect to:

                   The administration, maintenance, repair, and security of such housing; and
                   Operations, rent, repairs, security, fuel, equipment, insurance, utilities, food, and
                    furnishings for the shelter only.

            b. Operational Staff Costs (including fringe benefits cannot exceed 10% of the total
               grant award.) Administrative staff costs for operations are the only costs that should be
               reflected in this category. Costs charged must be provided at a reasonable cost and be
               directly related to an ESG eligible expenditure category. Subgrantees must submit position
               descriptions and cost share method, if applicable, for all salaries charged to this grant.
               Executive Director salaries may only be charged to ESG if they are involved in the
               provision of ESG-funded services and activities.

            Ineligible operating or maintenance costs include:

                   Recruitment or on-going training of staff
                   Depreciation
                   Costs associated with the organization rather than the supportive housing project
                    (advertisements, pamphlets about organization, surveys, etc.)
                   Staff training, entertainment, conferences or retreats
                   Public Relations or fund raising
                   Bad debts/late fees
                   Mortgage payments
                   Direct assistance payments to clients

F.   Certifications of Use Restrictions Requirement

     If any grant funds are to be used for activities under section E(1) the following must be adhered to:

         In the case of assistance involving major rehabilitation or conversion, subgrantee shall certify that
          the building for which assistance is used will be maintained as a shelter for homeless individuals
          and families for not less than a ten year period; or
         In the case of assistance involving rehabilitation (other than major rehabilitation or conversion),
          subgrantee shall certify that the building for which assistance is used will be maintained as a
          shelter for homeless individuals and families for not less than a three year period;
         Any renovation carried out shall be sufficient to ensure that the building involved is safe and
          sanitary.
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     ESG funds are not guaranteed for subsequent years. For this reason, applicants engaging in any
     activity outlined in E(1) Eligible Activities are required to substantiate a strategy to maintain the
     shelter for the required time period.

     Substantial community support has proven to be an essential component of an applicant‘s ability to
     obtain the needed resources to maintain and develop the shelter in subsequent years.

     F-1. Lease Agreements

     Every lease agreement for an emergency shelter must be for the required time period; 3 years, in the
     case of minor rehabilitation, and 10 years in the case of major rehabilitation. Each applicant
     requesting funds for rehabilitation will be required to submit a lease agreement along with their
     application.

G.   Faith-Based Activities

     Organizations that are religious or faith-based are eligible, on the same basis as any other
     organization, to participate in the ESG program. Neither the Federal governments nor a State or local
     government receiving ESG shall discriminate against an organization on the basis of the
     organization‘s religious character or affiliation.

     Organizations that are directly funded under ESG may not engage in inherently religious activities,
     such as worship, religious instruction, or proselytization as part of the programs or services funded
     under this part. If an organization conducts such activities, the activities must be offered separately,
     in time or location, from the programs or services funded under this part, and participation must be
     voluntary for the beneficiaries of the HUD-funded programs or services.

     A religious organization that participates in ESG will retain its independence from the Federal, State,
     and local governments, and may continue to carry out its mission, including the definition, practice,
     and expression of its religious beliefs, provided that it does not use ESG funds to support any
     inherently religious activities, such as worship, religious instruction, or proselytization.

     An organization that participates in the ESG program shall not, in providing program assistance,
     discriminate against a program beneficiary or prospective program beneficiary on the basis of religion
     or religious belief.

     ESG may not be used for the rehabilitation of structures to the extent that those structures are used for
     inherently religious activities. ESG may be used for the rehabilitation of structures only to the extent
     that those structures are used for conducting eligible activities under this part. Where a structure is
     used for both eligible and inherently religious activities, ESG may not exceed the cost of those
     portions of the rehabilitation that are attributable to eligible activities in accordance with the cost
     accounting requirements applicable to ESG in this part. Sanctuaries, chapels, or other rooms that an
     ESG-funded religious congregation uses as its principal place of worship, however, are ineligible for
     ESG-funded improvements. Disposition of real property after the term of the grant, or any change in
     use of the property during the term of the grant, is subject to government-wide regulations governing
     real property disposition (See 24 CFR parts 84 and 85).

     H.      Performance Requirements

     The grant period for ESG projects is one year; effective on the date the state makes funds available to
     the subgrantee. In general, projects requesting funds for rehabilitation may encounter a delay in
     obtaining results for the environmental review from the various agencies involved. Environmental

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     reviews generally take 60-90 days to complete. Applicants may want to consider this factor in
     determining where to use local match.

     ESG funds must be obligated within 180 days after the date the state makes the funds available to the
     ESG subgrantee and must be expended within one year of the date the state makes the funds available.
     Homeless Prevention funds as defined in 24 CFR Part 576.21 funds must be obligated within 30 days.

                      ESG funds used for Homeless Prevention must also be expended
                      within 180 days of the date the State made the funds available. This
                      180 day threshold only applies to funds allocated for Homeless
                      Prevention.

     All projects must begin within three (3) months of the date the state made the funds available to the
     applicant. If the program has not started within three (3) months of the award date, without written
     and justifiable cause, the state reserves the right to rescind the grant award. Start-up is defined as
     significant expenditure of funds. In addition, agencies must provide the OEO with written
     notification of closure within fifteen (15) days prior to actual closure.

     The state reserves the right to recapture ESG funds under the following circumstances:

          a.   Those who do not meet the performance requirements outlined in the approved project;
          b.   Those who are unable to comply with the regulatory deadlines on obligation and
               disbursement as outlined at 24 CFR Part 576.55(a) (2); and,
          c.   Those who otherwise, without appropriate justification, have failed to implement the project
               as set forth in their approved ESG Grant Application.

     Applicants are required to submit a timetable outlining the tasks required for accomplishment
     of project goals. The timetable submitted will be used to monitor project performance.

     I.        Performance Threshold

     Non-responsible performance means failure to expend funds, provide services and perform in
     accordance with the criteria outlined in the Grant Agreement.

J.   Method of Payment

     Disbursement of funds will follow a cost reimbursement procedure and will be for actual funds
     expended. Subgrantees shall only be reimbursed for costs that have been incurred within the current
     grant year and corroborated with paid invoices or other evidence of subgrantee expenditure or outlays.
     The grant, however, allows a one-time capital advance of up to $5,000 to assist subgrantees with
     project start-up. The capital advance will be deducted from the initial request for reimbursement.
     Subgrantees are limited to one monthly reimbursement. All requests for reimbursement must be
     submitted by the tenth of each month.

     Subgrantees must also submit all remaining requests for reimbursement to the OEO within 20 days
     after the expiration of the grant period.

     Applicants are reminded that any costs incurred prior to the beginning of the start-up date or
     after the ending date cannot be reimbursed by the grant.




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      K.     Homeless Involvement

             To the maximum extent practical, each subgrantee must ensure that homeless individuals are involved
             in the operation of facilities and related endeavors such as employment, construction services, and all
             other activities funded through ESG.

             The OEO shall require that all applicants submit a policy statement on homeless involvement as
             an attachment to the application.

      L.     Timetable

             The State will make available to units of general local government and non-profit organizations all
             ESG Program funds within 65 days of the date the state receives its grant award notice from the U.S.
             Department of Housing and Urban Development. A tentative timetable for the 2006 ESG, based
             on HUD’s pending approval, is as follows:

             March 29, 2006        State issues Requests for Applications (RFA) statewide solicitation

             April 7, 2006         State holds pre-application (orientation) workshop, provides ESG Application
                                   overview, and other pertinent information

             May 2, 2006           ESG Applications due at the OEO for 2006 funding consideration and review

             June 23, 2006         State informs applicants of the awards

             June 28, 2006         Post award workshop—Emergency Shelter Grant Program Grant Agreements
                                   distributed and signed

             July 1, 2006-
             June 15, 2007         Program Year 2006 grant period

             As indicated above, this is a tentative timetable, therefore subject to change at the discretion of
             OEO.

PART II:     APPLICATION PROCESS

      Do not alter OEO forms.

      A.     MINIMUM REQUIREMENTS FOR GRANT APPLICATION

             1.    Project Narrative
             2.    Identification of Funding Sources & Past Performance
             3.    Statement of Need
             4.    Goals/Objectives
             5.    Project Activities
             6.    Leveraging of Local Resources
             7.    Local Capacity and Timetable
             8.    Project Budget
             9.    Current Fidelity Bond
             10.   Most Recent Certified Independent Audit, if required
             11.   Assurances, Certifications, Current Board Roster, and Supporting Documentation
             12.   Outcome Measures

            Each section must begin on a separate page and be appropriately labeled.
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       An original unbound and three (3) bound copies of the application must be submitted to the
       OEO by the application due date. The original and copies should have tabs to mark each
       requirement in ―A‖ above.

        At the discretion of the OEO, a grant may not be awarded to an emergency shelter which has a
        serious, outstanding audit or monitoring finding involving the potential for significant
        monetary restitution, non-responsiveness, or non-responsible performance on any previously
        funded ESG grant.

                                     Section 1:       Project Narrative

The narrative should be clear and concise and include the following:

A.      Identification of the applicant organization, the exact location of the shelter and not more than one
        paragraph summarizing the applicant‘s capability.

B.      Reason(s) for the grant request.

C.      Objectives to be achieved.

D.      The target population and the shelter‘s days /hours of operation.

E.      Summary of major activities to be conducted using ESG funds.

F.      The total cost of the project; the amount of ESG funds being requested; and the matching resources
        already committed.

G.      Applicants with projects involving rehabilitation are required to complete Section 106 Project Review
        Form included in the appendices, in addition to the project narrative.


                     Please be very concise. The narrative should not exceed one page.


                  Section 2:      Identification of Funding Sources & Past Performance

Applicants must list all sources of funding for the agency. This information should be presented in a format
that identifies the source of funds and the total dollar amount of funds provided by the funding source.
Additionally, past and present ESG subgrantees must provide a factual representation of past performance
achieved by ESG-funded services and activities.

                                     Section 3:       Statement of Need

In the statement of need, the applicant must describe, as accurately as possible, the homeless situation as it
exists in its service area. The following components must be addressed:

A.    1. Identify the target population of homeless persons (for example homeless children, homeless
         families, homeless veterans, victims of domestic violence) that you are seeking to serve. Define
         your service area and include specific data on the estimated number of these homeless persons in
         your service area, with reference to the data sources. Describe any unique characteristics of your
         target population that may impact the type, manner, and scope of the services that are provided
         and/or needed.
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      2. Describe any substantially unmet needs of homeless persons in your service area in terms of
         housing and support services, particularly among your target population.

      3. Describe any other special conditions that make the homeless problem especially difficult in your
         service area.

B.    Describe the problems affecting your target population and/or the needs that you are seeking to address
      through your proposed project. Please list problems/needs in order of priority, starting with the most
      important need.

C.    List other shelters and resources available to assist the homeless in your service area, and for each,
      briefly describing the following:

      1.      Target population;
      2.      Maximum capacity (e.g. no. of beds) and allowable length of stay;
      3.      Hours of operation; and
      4.      A brief description of the services provided.
      5.      Explain how your agency will fill a need not met by current resources.

                                      Section 4:       Goals and Objectives

A.         Each applicant should list, in order of importance, the appropriate goal(s) to be accomplished for the
           proposed project. A goal is a general statement of the desired results and/or the program‘s overall
           purpose.

           Example: To meet the immediate needs of homeless families by providing the resources and support
                    needed to attain permanent housing and independent living skills.

B.         Each goal should then be translated into an objective, which is a brief action-oriented statement of a
           specific, measurable, time-limited outcome that is to be achieved to meet the goal. Briefly, the
           objectives should describe how goals will be met.

           Example: During the grant period, the agency will provide assistance toward obtaining permanent
                    housing and services which will assist families in their preparation toward re-entering
                    the community as independent citizens.

                                        Section 5:       Project Activities

Applicants should describe, in detail, based on the major program categories, the work to be performed or
activities to be undertaken, and explain how their activities relate to the goal(s) stated in Section 3. Applicants
are advised to carefully design this section. The Grantee will not approve any project revision during the
grant period, except under extra-ordinary circumstances.

A.         The major program categories allowable in 24 CFR part 576.21 are:

           1. Conversion, renovation or major rehabilitation

               If the applicant has allocated funds for renovation, conversion or major rehabilitation as defined
               in 24 CFR Part 576.3 and as summarized in Part 1, section E1 of this RFA, the applicant must
               indicate the following:

                 a.    The exact location of the building;
                                                                                                               16
             b.    The ownership of the building;
             c.    The lease agreement, if applicable;
             d.    Documentation of the value of the building to be rehabilitated or converted; and
             e.    Documentation on any environmental reviews that have been performed on the building
                   during the past 24 months.

             The applicant must also provide a detailed description of the renovation activity to be
             performed. A plan of the building, indicating the areas to be renovated, is required.

       2. Essential Services (not to exceed 30% of the ESG grant request)

             a.    Applicants using this category must prove that the service is (a) a new service or (b) a
                   quantifiable increase in the level of services above that which the unit of local
                   government provided during the 12 calendar months prior to the current request for ESG
                   funds.

             b.    Applicants must indicate the staff (e.g. employees, consultants) that will be hired to
                   provide essential services or specify whether ESG funds will be used to fund existing
                   staff.

       3. Preventive Services (not to exceed 30% of ESG grant request)

             a.    ESG funds used for homeless prevention must be obligated within 30 days of the date the
                   State makes the funds available. Written notification of the subgrantee‘s obligation of
                   funds (budget) must be submitted to the OEO within the 30-day period.

             b.    ESG funds used for homeless prevention must be expended within 180 days of the date
                   the state made the funds available.

       4. Operational Costs

             a.    Maintenance and Operations: Applicants can be reimbursed for maintenance, operations,
                   food, rent, repair, security, fuel and equipment, insurance, utilities and furnishings.

             b.    Operational Staff Costs: Staff costs for administration should be limited to actual staff
                   costs, including fringe benefits, for operations and cannot exceed 10% of total ESG funds
                   being requested. Applicants must indicate the staff that will be covered under this
                   category and describe their ESG related duties.

           All staff costs must be limited to the grant period. The state shall not approve staff costs
           that exceed the grant period.

       All procurements of goods and services must comply with both State and Federal government
       procurement guidelines (See OEO Fiscal/Technical Assistance Memorandum F02-01-Revised
       September 9, 2005). Furthermore, all bids submitted with the application will be used for
       evaluation purposes only. Approval of the application shall therefore not constitute approval of
       the bids. Subgrantees will be required to submit new bids for the purposes of the program.

                             Section 6:      Leveraging of Local Resources

ESG requires a dollar-for-dollar match. The match can be either in cash contribution, donated resources, or
volunteer services. Please refer to 24 CFR part 576.71 and/or Part I, Section D of this RFA to determine
allowable sources for match. Applicants must:

                                                                                                         17
A.        Identify the sources(s), amount(s) and specific use of all local matching funds and resources. Special
          Note: You will be expected to produce and use any funds/resources listed here. Please ensure that
          any funds/resources listed here are available for your use. Applicants are reminded that resources
          used in previous ESG cycles as subgrantee contribution cannot be utilized. Additionally, resources
          used to fulfill the match requirement of another grant within the same program year as the ESG grant
          received cannot be utilized.

B.        Include commitment letters for every component of local funds. The commitment letter must include,
          but is not limited to, the following information:

          1.        Language which indicates that funds or in-kind contributions have been committed by
                    individuals or organizations authorized to award the funds.

          2.        The specific dollar amount/resource and time period.

          3.        An itemization of any in-kind contributions and a description of how the value was determined.

          4.        Signature of authorized official.

C.        The provision of comprehensive assistance to the homeless individuals either through direct services
          or referrals to other human services providers is a requirement of the ESG grant. State how you
          propose to provide the homeless with supportive services or state the agency(s) that you will
          coordinate with to provide those services. Be as specific as possible, listing the agency, nature and
          amount of service or assistance provided.

D.        Describe the extent to which the homeless clients‘ needs could be adequately addressed by other
          resources in your community without the requested ESG services.

                                    Section 7:          Local Capacity and Timetable

     Applicants must:

     A.        1.     Identify the person(s) in their organization(s) who will be responsible for the administration
                      of the ESG award and identify their responsibilities with respect to this project.

               2.     Using ESG Form 2, identify all individuals who are responsible for signing checks and
                      requesting reimbursements.

     B.        Each applicant must submit a timetable outlining how and when the various facets of the project
               will be executed.

     C.        Applicants are required to describe their financial management capacity and procedures.

     D.        Applicants filing for a waiver of the match requirement must submit documentation demonstrating
               financial hardship.

     E.        Applicants must submit documentation or a plan on how the shelter will be maintained in
               subsequent years.




                                                                                                                18
                                            Section 8: Budget

A.     Each applicant must submit a budget for all funds requested and applicant‘s contribution. If
       awarded, funds cannot be expended until the budget is approved by OEO and the grant agreement
       has been executed.

B.     Applicants must make sure they do not exceed the budget caps associated with the various service
       elements.

C.     Applicants must include a detailed Budget Narrative, including estimated costs for services to be
       procured or equipment to be purchased. (NOTE: Approval of budget does not imply approval
       for proposed purchases of goods and/or services. Please adhere to OEO Fiscal/Technical
       Assistance Memo F02-01-Revised September 9, 2005, for proper Procurement Procedures).

                                         Section 9: Fidelity Bond

       The purchase of a fidelity bond is an allowable cost for ESG, in accordance with OMB Circular A
       122. The agency‘s Board of Directors must deem the purchase of a fidelity bond to be a necessary
       cost. The agency will be required to submit Board minutes approving the purchase of a fidelity
       bond. The OEO will only approve a reimbursement not to exceed the grants actual pro rata share of
       the bond.

                            Section 10: Certified Independent Audit Report

       Applicants must submit a copy of the most recent certified independent audit report if required by
       Federal law. New shelter applicants will have nine (9) months after the first fiscal year to submit
       their audit report. OEO audit staff will perform an interim audit to ensure that the agency is in
       compliance with all applicable federal and state regulations. An independent audit must be
       submitted to the OEO within nine months of the grant award. In accordance with OMB Circular
       A-133, the cost of audits are allowable charges provided the agency has federal award
       expenditures of greater than $500,000 and the audit costs are allocated proportionately across
       audited programs such that the percentage of costs charged shall not exceed the percentage
       derived by ESG funding in relationship to the total federal expenditures. (See OEO
       Fiscal/Technical Assistance Memorandum F 08-01-Revised October 17, 2005—Appendix N.)

      Section 11: Assurances, Certifications, Current Board Roster and Supporting Documents

A.   Attach to your application an endorsement from the unit of local government that authorizes the
     submission of the application and identifies and commits the local match funds, if appropriate. If, due
     to scheduling, the governing body cannot provide an endorsement, a letter signed by the chief elected
     or duly authorized representative (i.e., City or County Manager) may be substituted for the
     endorsement. If the shelter is within an incorporated area, then the local government endorsement
     must be from that representative body.

B.   Attach to your application a letter of commitment from the chairperson of the agency‘s Board of
     Directors. The letter must state the commitment of the Board and the shelter toward this project.

C.   Please attach a map showing the location of the proposed project(s). In the case of renovations,
     identify the current space and the area to be renovated.



                                                                                                        19
          D.   The following certifications must be executed and returned as a part of this application. Each
               certification must be signed by the Executive Director, Board Chairperson or the Chief Elected
               Official of the unit of local government, in cases where the unit of local government is the subgrantee.

                     1. Certification (Endorsement) of Local Government Commitment (ESG Form 6). This is not
                         required where the unit of local government is the applicant.
                     2. Certification of Matching Funds. (ESG Form 4)
                     3. Certification Regarding the Use of Debarred and Suspended Contractors
                     4. Certification Regarding Lobbying
                     5. Certification Regarding a Drug Free Workplace Requirement
                     6. Certification of Safe Environs (ESG Form 7)

          E.   A copy of the most recent review and rating documentation conducted at the facility to meet license
               and code requirements must be submitted—for example, a DHEC inspection report stating that the
               facility is in compliance with all applicable health & safety requirements.

          F.   All applicants must submit documentation to demonstrate their non-profit status. Private non-
               profit organizations must have a 501(c) 3 certification and be registered in the State of South
               Carolina.

          G.   Applicants must submit a formal policy on termination of assistance, which recognizes the
               individual’s right to a hearing.

          H.   Applicants must submit a policy on homeless involvement.

          I.   Current Board Roster

                                               Section 12: Outcome Measures

               In accordance with new Federal requirements, applicants must submit detailed documentation
               concerning outcome measures. Explain the types of services offered to the agency‘s clients beyond
               those specifically intended to meet the emergency needs. Outcome measures demonstrate the
               applicant‘s ability to move their clients toward self-sufficiency. For example, an outcome measure
               for an applicant might be the number of shelter clients placed into a transitional housing program.


PART III:      SELECTION PROCESS

     A.        Evaluation:

               Each complete application will be evaluated by an independent review panel. The evaluation
               instrument is included. Each major application section will be rated according to the total points that
               have been allotted to the section. The state will endeavor to ensure grant awards are made to shelters
               within each region of the state to ensure a continuum of care. In addition, priority consideration will
               be given to applications that demonstrate the following:

               1. Locality has no shelter for the homeless and desperately needs one.

               2. An existing shelter is in danger of closing.
                                                                                                                   20
                 3. ESG funds are needed to address facility concerns creating critical health or safety issues which
                    may impact clients or client safety.

                 4. Maximum support services will be provided by the shelter in coordination with other human
                    services agencies.

                 5. The shelter has substantial community/public support for the project.

                 6. Homeless individuals will be extensively involved in the operation of the shelter, or in other
                    related activities. (for example, client mentoring programs).


        B.       Pre-Award Site Visit:

                 The OEO staff may conduct a pre-award visit to shelters to make an on-site appraisal of the program.

        C.       Notification:

                 The OEO will notify all applicants in writing and host a post-award workshop with the selected
                 applicants.

PART IV:         APPENDICES

This part contains the following:

             1. APPENDIX A: Evaluation criteria
             2. APPENDIX B: Past Performance Explanation form
             3. APPENDIX C: Certification of Commitment
             4. APPENDIX D: Signature Authorization form
             5. APPENDIX E: Budget form
             6. APPENDIX F: Certification of Local Government Approval form
             7. APPENDIX G: Certification of Matching Funds form
             8. APPENDIX H: Certification Regarding Drug-Free Workplace
             9. APPENDIX I: Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion
             10. APPENDIX J: Certification Regarding Lobbying
             11. APPENDIX K: Safe Environs Certification
             12. APPENDIX L: Section 106 Project Review Form
             13. APPENDIX M: OEO Fiscal/Technical Assistance Memorandum F02-01-Revised (Procurement)
             14. APPENDIX N: OEO Fiscal/Technical Assistance Memorandum F 08-01-Revised (Independent Audit)




                                                                                                                   21
                                                                                                             APPENDIX A




                                          EVALUATION PROCESS
                                           Emergency Shelter Grants Program


                                               NEED (Maximum 30 points)


 Need for the type of project proposed in the area to be served and that the proposed project will be coordinated
  with other service and housing providers in the community and will effectively and appropriately fill a gap in the
  community's response to homelessness.

 The percentage of homeless who are sleeping in emergency shelters (including hotels or motels used as shelter for
  homeless individuals) and other facilities not meant for human habitation such as cars, parks, sidewalks, or
  abandoned buildings. This includes homeless persons who are in a hospital or other institution on a short-term
  basis (short-term basis is considered to be 30 consecutive days or less). The applicant's description of its strategy
  for reaching this population will be a factor in this rating.

 The area has an increasing homeless population and the project is to expand and improve on the present building
  and/or services, accommodate more clients, and address their immediate needs.

 The shelter has significant space to accommodate most of its clients but is in dire need of funds to provide services
  to their clients and to maintain and operate the shelter.



                         LEVERAGING AND LOCAL SUPPORT (Maximum 25 points)


 Applicants who demonstrate a cash match of at least twenty-five (25%) will be awarded two (2) points. All
  applications must provide a demonstration that a local match of cash and/or in-kind resources has been fully
  committed for the project in compliance with ESG regulations.

 Applicants demonstrate substantial local support with movement towards a continuum of care strategy, which
  could include nonprofit organizations, governmental agencies, other providers, private foundations, neighborhood
  groups and others. This can be accomplished with letters of support and other commitments and should reflect
  broad-based community support and not be restricted to agencies affiliated with the formal human services
  delivery system.

 The extent to which volunteers have been associated with the operation of the shelter and how they defray the costs
  of other professionals whom otherwise would be required to perform their functions.




                                                                                                                    22
                                QUALITY OF PROJECT (Maximum 25 points)


 Homeless individuals and/or families will achieve greater self-determination including being involved with project
  decision-making and operation.

 For transitional housing projects, the applicant demonstrates that persons completing a transitional housing
  program will be assisted in locating and remaining in permanent affordable housing and how the applicant will
  assure that necessary follow-up services will be provided to such persons.

 Homeless individuals and/or families will obtain and/or enhance their ability to secure and/or remain in permanent
  housing.

 Justification is concise, outlining the appropriateness of the proposed project and supportive services given the
  needs of the population proposed to be served.

 The proposed project represents an innovative approach when viewed nationally or statewide and promises to be
  successful and repeatable in meeting the needs for shelter and/or services for the homeless.

 Two (2) points will be deducted from the applicant‘s score if the application package is not presented in
  accordance with Part II. Application Process, Section A, Minimum Requirements (page 8).




                                        CAPACITY (Maximum 20 points)


 Timeliness with which the project will become operational, taking into account each phase of the project proposed
  for funding and the target date for completion of the various phases.

 Experience of staff in carrying out similar activities to those proposed either as an ongoing provider of housing
  and/or services to homeless people.

   As applicable, this criterion will also consider prior performance with any previous HUD McKinney grants or
    other HUD-administered programs, including the ability to meet grant requirements and any serious, outstanding
    audit or monitoring findings that directly affect the proposed project.




                                                                                                                 23
                                                                                               APPENDIX B


                             Past Performance Explanation

Has your agency received an Emergency Shelter Grants (ESG) Program award in the past?

YES_______            NO_______


        If YES, please explain briefly how the funds were expended (cite budget categories).




Were the awarded ESG funds expended in their entirety?

YES_______            NO_______


        If NO, please explain briefly why the funds were not expended.




ESG Form 20 (3/06)



                                                                                                      24
                                                                                                         APPENDIX C
                                       STATE OF SOUTH CAROLINA
                                   OFFICE OF ECONOMIC OPPORTUNITY
                                EMERGENCY SHELTER GRANTS APPLICATION
                                    CERTIFICATION OF COMMITMENT

BLOCK 1 - PROJECT TITLE: _____________________________________________________

BLOCK 2 - FUNDING SOURCES:
                                                                       AMOUNT       PERCENT

    A. PY 2006ESGP Federal Funds Requested                            ______________        _____________
    B. Local Cash                                                     ______________        _____________
    C. Local In-Kind                                                  ______________        _____________
    D. GRANT TOTAL                                                    ______________                 100.00
    E. *Other                                                         ______________        _____________
    F.     GRAND TOTAL                                                ______________        _____________
           *Identify Sources:   ____________________________________________________________________
           _____________________________________________________________________________________
BLOCK 3 - ADMINISTERING AGENCY:
             (check one)
    Local Government        __________       Non-Profit/Shelter   __________
Local Government
         Contact Person:    ________________________________________________________
         Agency:            ________________________________________________________
         Address:           ________________________________________________________
         Zip Code:          ________________________________________________________
         Telephone No.:     ________________________________________________________
Non-profit/Shelter
         Contact Person:    ________________________________________________________
         Shelter Name:      ________________________________________________________
         Address:           ________________________________________________________
         Zip Code:          ________________________________________________________
         Telephone No.:     ________________________________________________________
BLOCK 4 - PROJECT SUMMARY: ________________________________________________________
    _______________________________________________________________________________
    _______________________________________________________________________________
    _______________________________________________________________________________
    _______________________________________________________________________________
    _______________________________________________________________________________

BLOCK 5 - Authorized Signature:                               Authorized Signature for Shelter:


    Chief Executive Official & Title:                         Authorized Official for Shelter & Title:

    Date:                                                     Date:
OEO ESG Form 1 (3/06)

                                                                                                              25
                                                                                             APPENDIX D



MAIL COMPLETED FORM TO:

Bertie A. McKie, OEO Senior Manager ESGP   OFFICE OF ECONOMIC OPPORTUNITY
Office of the Governor
Office of Economic Opportunity             AUTHORIZED SIGNATURES FOR REQUEST
1205 Pendleton Street                      FOR PAYMENT AND CHECKS - BANK NAME
Columbia, South Carolina 29201
BLOCK I:          SUB-GRANTEE NAME AND ADDRESS
 AGENCY:
                                                                       GRANT NO:


BLOCK II: Signatures of Individuals Authorized to draw on the Request for Payment and Sign Checks
NOTE: A minimum of two (2) signatures is required on each check. Only one (1) signature is required on the
Request for Payment.
A. Please Print or Type                            B. Please Print or Type
Name: _____________________________________ Name: _________________________________________
Title: _____________________________________ Title: _________________________________________
Agency:____________________________________ Agency:________________________________________
Address:____________________________________ Address:________________________________________
_________________________ Zip: _____________ _____________________________ Zip: _____________
Phone Number:                                      Phone Number:
____________________________________________________________________________________________
Signature:                                         Signature:

                                             BLOCK III: Administering Agency Contact
C. Please Print or Type                      ____ Local Government ____ Non-Profit(Shelter)
Name: _____________________________________ Name: _________________________________________
Title: _____________________________________ Title: _________________________________________
Agency:____________________________________ Agency:________________________________________
Address:____________________________________ Address:________________________________________
_________________________ Zip: _____________ _____________________________ Zip: _____________
Phone Number:                                Phone Number:
____________________________________________________________________________________________
Signature:                                   Signature:

BLOCK V. I certify that the Signatures in Block II,   BLOCK IV. MAIL CHECKS TO:
A, B, & C are of the individuals authorized to draw   Authorized Bank/Agency Name
payment vouchers for the Grant request for Payment    _______________________________________________
and sign checks.                                      Bank/Agency Address: ___________________________
Name and Address of Authorized Official as listed     _______________________________________________
on Grant Award:                                       Bank Account No.                  Zip: __________
Name: _____________________________________           _______________________________________________
Title:            Executive Director                  BLOCK VI. APPROVED BY APPLICANT’S
Agency:____________________________________            BOARD OF DIRECTORS
Address:____________________________________
Phone Number:________________ Zip:__________          _______________________________________________
___________________________________________            Chairperson, Board of Directors     Date
Signature and Date:

                                                                                  OEO ESG Form 2 (3/06)

                                                                                                       26
                                                                                                 APPENDIX E
                          Emergency Shelter Grant Program Application
                                                 PY 2006 Budget

Subgrantee Name:



         Description                   ESG Federal           Subgrantee                       Total
                                          Funds          Contribution/Match                   Grant
                                        Requested       Cash           In-Kind
1. SHELTER:
Rehab. (minor)
Rehab. (major)
Conversion
   Shelter Total:

2. ESSENTIAL SERV.
Client Assistance
Counseling
Education
Other (Specify)
   Essential Total:
(Cannot Exceed 30% of Grant)


3. PREVENT. SERV.
Client Assistance
Other (Specify)
   Preventive Total:
(Cannot Exceed 30% of Grant)


4. OPERATIONAL:
Equipment
Rent
Insurance
Utilities
Food
Furnishings
*Staff Cost
Other (Specify)
   Operational Total:


*{Staff Costs Only - Cannot
exceed 10% of T otal Grant}

GRAND TOTAL:


                Executive Director Signature                             Date



                Board Chairperson Signature                              Date
For OEO Use Only: (Please Initial & Date)             Approved By   D isapproved By
              OEO Program Coordinator
              OEO Senior Manager
              OEO Fiscal
              OEO Director                                                            OEO ESG Form 5 {3/06}


                                                                                                              27
                                                                                       APPENDIX F


         CERTIFICATION OF LOCAL GOVERNMENT APPROVAL FOR NONPROFIT
                               ORGANIZATIONS



I, __________________________________, (name and title) duly authorized to act on behalf of the

_________________________________ (name of jurisdiction) hereby approve the following project(s)

proposed by ___________________________________ (name of nonprofit) which is (are) to be located in

_____________________________________ (name of jurisdiction):


_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________


BY: ____________________________________________________________________
            (Name and Title)

__________________________________________            ________________________
             (Signature)                                        (Date)




                                                                                    ESG FORM 6 (3/99)




                                                                                                  28
                                                                        APPENDIX G



                      PY 2006 Emergency Shelter Grants Program
                            Certification of Matching Funds


     ESGP (State) Total:                                          $
     Local Match Total: $
     *Other Funds Total:                                          $

     GRANT TOTAL            $


                                    certifies that the matching supplemental funds
(City/Town/County Executive Director) required by the regulations at 24 CFR 576.71
and 576.85(a)(3), will be provided. Attached to this certification is a description
of the sources and amounts of such supplemental funds.

============================================
==


Authorized Official (City/Town/County)


Typed Name and Title                                                  Date

============================================
==
By SUBGRANTEE:

Authorized Official (Shelter)


Typed Name and Title                                                  Date




                                                                  ESG Form 4 (3/06)



                                                                                29
                                                                                                              APPENDIX H


              CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENT

The certification set out below is a material representation upon which reliance is placed by the U.S. Department of
Housing and Urban Development in awarding 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 U.S. Department of
Housing and Urban Development, in addition to any other remedies available to the Federal Government, may take
action authorized under the Drug-Free Workplace Act.

CERTIFICATION

 1.     The grantee certifies that it will 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 a 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 state required by paragraph (a) that, as a condition of employment
                under this grant, the employee will:

                1. Abide by the terms of the statement; and
                2. Notify the employer of any criminal drug statute conviction for a violation occurring in the
                   workplace no later than five (5) days after such conviction;

        (e)     Notifying the U.S. Department of Housing and Urban Development within ten days after receiving
                notice under subparagraph (d)(2) from an employee or otherwise receiving actual notice of such
                conviction;

        (f)     Taking one of the following actions, within 30 days of receiving notice under subparagraph (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;
                   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).

 2.     The grantee shall insert in the space provided on the attached “Place of Performance” form the site(s) for
        the performance to work to be carried out with the grant funds (including street address, city, county, state,
        and zip code). The grantee further certifies that, if it is subsequently under the grant, it shall notify the U.S.
        Department of Housing and Urban Development immediately upon the decision to use such additional sites
        by submitting a revised “Place of Performance” form.




ESG Form 5 Cover 03/06

                                                                                                                      30
                                     PLACE OF PERFORMANCE
                FOR CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS


Name of Sub-Grantee:

Grant Program Name:

Grant Number:

Date:


The sub-grantee shall insert in the space provided below the site(s) expected to be used for the
performance of work under the grant covered by the certification:

Place of Performance (include street address, city, county, state, zip code for each site):




        Agency name and site(s) for the performance of work done in connection with the grant:
               ___________________________________________________________
               ___________________________________________________________
               ___________________________________________________________
               ___________________________________________________________


____________________________________________________________________________________________
Name and Title of Authorized Official (Typed or Printed)


____________________________________________________________________________________________
Signature of Authorized Official                                             Date Submitted




ESG Form 5 03/06



                                                                                                 31
                                                                                                                                                 APPENDIX I

       CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION
                                                LOWER TIER COVERED TRANSACTIONS


This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 34 CFR Part
85. Section 85.510. Participant responsibilities. The regulations were published as Part VII of the May 26, 1988 Federal
Register (pages 19160-19211).

                           (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS BELOW)

(1)    The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals are
       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.

Name and Address of Participant:




                                                                                                        Grant Number




Name and Title of Authorized Representative


Signature                                                          Date

                                                          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, 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 any time the prospective
lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.
4. The terms ―covered transaction‖, ―debarred‖, as used in this clause, have the meanings set out in the Definitions and Coverage sections of rules
implementing Executive Order 12549.
5. The prospective lower tier 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, 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 include the clause titled ―Certification Regarding Debarment,
Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions‖, 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 transaction that is not 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 check the Nonprocurement List.
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 transaction with a person who is suspended, debarred, ineligible, or voluntary 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.




                                                                                                                                                          32
                                                                                APPENDIX J


                          CERTIFICATION REGARDING LOBBYING

                           OFFICE OF ECONOMIC OPPORTUNITY
                            Emergency Shelter Grants Programs



Program:

Period:


The undersigned certifies, to the best of his/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 any 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, continuation, renewal, amendment, or modification of any Federal contract,
      grant, loan or cooperative agreement.

(2)   If any funds other than Federal appropriated 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 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 by included in the
      award document for 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 when 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 USC. 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.




Signature                                         Title
                                                                                   APPENDIX K

Agency/Organization                               Date


                                   SUB-GRANTEE/SHELTER

                        EMERGENCY SHELTER GRANTS PROGRAM

                                                                                              33
                                SAFE ENVIRONS CERTIFICATION

............................................................................
                                     ..
We,            ___________________________________________,                   (Sub-Grantee)        and
_____________________ _________________________ (Shelter Operator), of the State of South
Carolina, __________________ ___________________ (County), do certify that every reasonable
measure will be taken to ensure that this shelter’s environment is the safest possible. We guarantee to
the               extent               possible,              that           these            premises
____________________________________________________ (Shelter Name), will be free of alcohol
and illegal drugs. Further, that the shelter residents and/or these premises will be protected from the
illegal use, possession, or distribution of alcohol and drugs.

We understand that our commitment to the State of South Carolina is made in the best interest of all
shelter residents and staff, knowing that an alcohol and drug-free environment better ensures our safety.
While every effort will be made to comply with these assurances, we understand that no services are to
be denied any client on the basis of failure to meet these objectives.

This certification is in compliance with the State of South Carolina’s Comprehensive Housing
Affordability Strategy (CHAS) and is in agreement with the basic safety requirements set forth in the
regulations governing the Emergency Shelter Grants Program (see 24 CFR Part 24, Subpart f and 24
CFR Part 576.75).




............................................................................
..


Signature and Title of Authorized Official/State           Date



Signature and Title of Authorized Official/Sub-Grantee                                        Date



Signature and Title of Authorized Official/Shelter         Date




ESG Form 7 (rev. 2/99)



                                                                                                      34
                                                                                                                    APPENDIX L

                                   SECTION 106 PROJECT REVIEW FORM



APPLICANT ________________________________________ CONTACT PERSON ______________________________

APPLICANT‘S ADDRESS _________________________________ CITY ________________ STATE _____ ZIP ________

TELEPHONE ________________________

PROJECT NAME ______________________________________________ COUNTY ______________________________

   1.   Project Description ______________________________________________________________________________
                          ________________________________________________________________________________
                          ________________________________________________________________________________

   2.   Attach a USGS topographic may or county map indicating the precise location of the project.

   3.   How many acres are in the project area? ______________________

   4.   Are there any structures on the property (houses, factories, barns, old garages, sheds, etc.)?   YES ____ NO ____

   5.   If so, what is the approximate age of each structure?

   6.   Attach 35mm black and white photographs of front and rear elevations of any structures built before World War II.

   7.   Will the project involve a rehabilitation, relocation or demolition of any structures? Please explain _______________

        ______________________________________________________________________________________________

   8.   Are there any pre-World War II structures adjacent to the proposed project? YES ____ NO ____ (If so, attach
        35mm black and white photographs)

   9.   Has the ground at the project location been disturbed other than by agriculture (grading, major landscape alterations,
        etc.)?

 10.    Describe the present use and condition of the property:

        ______________________________________________________________________________________________

        ______________________________________________________________________________________________


        If necessary, elaborate on the above questions and include any additional information which you think would be
        helpful in the review of this project.

        The completed form and clear location map (and any photographs) should be sent to the State Historic Preservation
        Officer, S.C. Department of Archives and History, P.O. Box 11669, Columbia, S.C. 29211.
        Telephone (803) 734-8609.

(Rev. 3/99)




                                                                                                                             35
                                                                                         APPENDIX M




FISCAL/TECHNICAL
ASSISTANCE MEMORANDUM F02 – 01- REVISED

TO:            See Distribution

From:          Ann Harmon, Senior Manager of Fiscal Services

SUBJECT:       Procurement Procedures

DATE:          September 9, 2005

This memorandum supercedes OEO‘s Technical Assistance Memorandums regarding this
subject. It is the intent of this office to maximize program efficiency, ensure the
application of appropriate procedural processes, and maintain the integrity of grant funds.
These guidelines will assist Executive Directors and Boards of Directors in conducting
procurement transactions in a timelier manner and in maximizing each agency‘s
purchasing effectiveness.

Procurement Procedures

1. Procurement of equipment, supplies, services and building rehabilitation (building
   rehab applies only to ESGP) shall be based upon clear and accurate written
   descriptions, including any applicable technical specifications, of the supplies or
   equipment to be procured.

2. All professional services in excess of $500 must receive prior OEO approval.

3. All procurement expenditures must be adequately documented with a voucher/check,
   invoice, endorsed delivery receipt, requisition/purchase order for each transaction and
   applicable approval as may be required within the subgrantee's procedures.

4. The subgrantee must incorporate these guidelines into its respective procurement
   procedures as part of the Financial Policies and Procedures Manual.

5. The OEO Audit Division will review the subgrantee's procurement procedures and
   purchases during the Field Audit. Inconsistencies and non-compliance issues will be
   noted for corrective action.

6. OEO may request justification and documentation of any purchase as to how the
   purchase relates to the OEO funded program.
                  Office of Economic Opportunity • 1205 Pendleton Street
                           Columbia, SC 29201 • (803) 734-0662
7. Agencies must practice sound accounting principles when establishing accruals
   at the end of each program year. The procurement that is being accrued such as
   salaries, professional services, supplies, utilities and travel must have been: a
   transaction within the program year, based on clear and justifiable
   documentation and payments must be made to vendors when ―normally due‖
   which should be within 30 days of the close of the grant.

8. All items budgeted and procured as obligations/encumbrances against program
   funds must be received by the agency by the end of the program period.

The following state procedures shall be utilized in conducting procurements unless the
proposed purchase is from a vendor who is selected from the current State Procurement
Contract, which must be verified through the State‘s Materials Management Office
(MMO). The OEO reserves the right to question any procurement found during a
monitoring or audit visit that it considers to be unreasonable. The OEO staff may
approve the purchase or may request additional information to assist with clarifying the
justification of the purchase as it relates to program need.

              A. Small Purchases less than $1,500 may be accomplished without
                 securing competitive quotes if the prices are considered to be
                 reasonable. Such purchases shall be distributed equitably among
                 qualified vendors. When practical, a quote is to be solicited from
                 another vendor prior to placing a repeat order. This will assist in
                 verifying the reasonableness of the price and detecting instances of
                 overpricing. Larger purchases of like goods or services may not be
                 subdivided in order to circumvent the procurement requirements.

              B. Purchases greater than the cumulative of $1,500 to $5,000 will
                 require a minimum of three written quotes from qualified vendors.
                 The awards shall be made to the lowest responsive and responsible
                 source. Documentation of the quotes must be attached to the purchase
                 requisition. For any proposed purchase exceeding $1,500, the
                 subgrantee‘s Executive Director can execute the proposed purchase in
                 accordance with the requirements contained in this memorandum and
                 in the program grant agreement.

              C. Purchases greater than $5,000. Solicitation of written quotes from a
                 minimum of three qualified sources of supply shall be made and
                 documentation of the quotes attached to the purchase requisition. Any
                 purchase greater than $5,000 must be advertised in a major
                 metropolitan newspaper for three (3) consecutive days to obtain
                 competitive quotes for the purchase. The subgrantee‘s Board of
                 Directors must approve the purchase and the minutes of the approval
                 along with three competitive bids detailing the proposed purchase must
                 be forwarded to the OEO office for review. Proposed equipment
                 purchases that exceed $5,000 will require the procurement
                 documentation upon the submission of the Application Budget.



                  Office of Economic Opportunity • 1205 Pendleton Street
                           Columbia, SC 29201 • (803) 734-0662
               D. Sole Source procurement transactions may only be made with the
                  prior approval of the OEO based on written documentation from the
                  subgrantee as to the basis for the sole source procurement action. In
                  cases of reasonable doubt, competition must be solicited. Sole source
                  contractual agreements must first be approved by the OEO.

               E. Emergency Procurements may be made when there is an immediate
                  threat to public health, welfare, critical economy or efficiency, or
                  safety, and provided that such emergency procurements are made with
                  as much competition as is practical under the circumstances, with a
                  follow-up written report from the Executive Director on the basis of
                  the emergency and the selection of the vendor.

     Annual Equipment Budget Requirements

     The allowable ―equipment‖ is tangible non-expendable personal property
     charged directly to the award having a useful life of more than one (1) year and
     an acquisition cost threshold of $1,500. For the purpose of OEO funded grants, all
     technology purchases (computers, etc.) are to be listed on the Annual Equipment
     Budget form with a copy of the specifications. This is to allow OEO to
     determine if the equipment is compatible with SCROMA requirements. When
     submitting a Program Application Budget, a listing of all anticipated equipment
     purchases for the program year will be required using the Annual Equipment Budget
     form. Proposed equipment purchases will require the procurement documentation
     and justification upon the submission of the Application Budget. When OEO
     approves a subgrantee's Application Budget, the identified equipment will be
     reviewed and approved for the program year. If additional equipment is needed after
     the Application Budget is approved, a revised Annual Equipment Budget form and
     documentation must be submitted with the revised budget for OEO approval.
     Subgrantees must obtain Board approval when required. Once this process is
     accomplished and all provisions are satisfied, no further agency action will be
     required. Subgrantees must ensure equipment records such as; description, serial
     number, model, source, title, acquisition date, Federal percentage, location and
     ultimate disposal date. Procedures outlined for surplus property and equipment
     disposal are in OEO Fiscal/Technical Assistance Memorandum F09-01 revised Sept.
     9, 2005.


DISTRIBUTION:
CAA Board Chairpersons
CAA Executive Directors
CAA Program Directors
CAA Fiscal Officers
OEO Director, Program, Fiscal and Audit Staff

c:      PY 2006 ESG RFA, Handbook, Subgrantees, & Grant Agreement




                   Office of Economic Opportunity • 1205 Pendleton Street
                            Columbia, SC 29201 • (803) 734-0662
                                                                                        APPENDIX N




FISCAL/ TECHNICAL
ASSISTANCE MEMORANDUM F 08- 01 (Revised)

TO:           See Distribution

FROM:              Rosalie Smith
              Senior Manager for Audits

DATE:         October 17, 2005

RE:           Independent, Single Audit Review and Appeals Procedures for Nonprofit
              Organizations

This memorandum supersedes previously issued OEO Technical Assistance Memo F 08-01
(Revised), dated August 1, 2002.

PURPOSE

The purpose of this memorandum is to set forth standards for obtaining consistency and
uniformity among nonprofit organizations, local governments and other entities expending
federal awards. The following regulations are federal audit requirements for grant agreements
with the Office of Economic Opportunity:

      1. Human Services Reauthorization Act of 1984, Public Law 98-558.
      2. OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
         Organizations (Issued pursuant to the Single Audit Act of 1984, Public Law 98-502
         and the Single Audit Act Amendments of 1996, Public Law 104-156).
      3. OMB Circular A-110, Uniform Administrative Requirements for Grants and Other
         Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit
         Organizations.
      4. OMB Circular A-129, Policy for Federal Credit Programs and Non-Tax Receivables,
         Part V Delinquent Debt Collection.
      5. Uniform Requirements for Grants and Cooperative Agreements with State and Local
         Governments (Common Rule).
      6. OMB Circular A-122, Cost Principles for Non-Profit Organizations.




                      Office of Economic Opportunity • 1205 Pendleton Street
                               Columbia, SC 29201 • (803) 734-0662
SINGLE AUDIT

1. Definition
   An audit which includes the subgrantee‘s financial statements and the federal awards as
   described in OMB Circular A-133, Subsection .500.

2. Audit Requirements
   Subgrantees that expend $500,000 or more in a fiscal year in federal awards shall
   have a single audit conducted for that year in accordance with the provisions of this part.

   Audits must be conducted in compliance with federal and state laws and Government
   Auditing Standards established by the Comptroller General of the United States and
   Generally Accepted Auditing Standards established by the American Institute of Certified
   Public Accountants (AICPA).

3. Sanctions
   When a subgrantee demonstrates a continued inability or unwillingness to have an audit
   conducted in accordance with these standards, OEO will institute appropriate sanctions
   which could include, but are not limited to, withholding future federal awards, disallowing
   overhead costs, suspending federal awards until the audit is completed and submitted or
   terminating federal awards.

4. Audit Costs
   Professional fees associated with audits are allowable charges if made in compliance with
   OMB Circular A-133 and may be allocated as indirect cost. Generally, the percentage of
   costs charged shall not exceed the percentage derived by dividing OEO program funds by
   total federal funds expended by the subgrantee during the agency‘s fiscal year under audit.

SELECTION OF AUDITORS

When procuring audit services, the subgrantee shall use the guidelines provided in OEO
Technical Assistance Memorandum F 02-01 (Procurement Procedures). Each Request for
Proposal for audit services shall be for a period not to exceed three (3) consecutive fiscal years.
At a minimum, procurement of audit services shall include advertisement of the Request for
Proposal in the South Carolina Business Opportunities newsletter, published by the State Budget
and Control Board, and the newsletter of the South Carolina Association of Certified Public
Accountants.

When requesting proposals for audit services, the objective and scope of the audit should be
made clear. Factors to consider in evaluating each proposal include responsiveness to the
proposal, relevant experience, staff professional qualifications, technical abilities, and price.
Whenever possible, the subgrantee is encouraged to make positive efforts to utilize small
businesses, minority-owned firms, and women‘s business enterprises (OMB Circular A-133).




                       Office of Economic Opportunity • 1205 Pendleton Street
                                Columbia, SC 29201 • (803) 734-0662
In compliance with the Sarbanes-Oxley Act of 2002 Sec. 203, an incumbent auditor can submit
bids for consecutive subsequent periods; however, the lead auditor or audit partner responsible
for reviewing the audit may provide such services for no more than five (5) consecutive fiscal
years. After such time, a new lead auditor or audit partner shall be appointed.

INDEPENDENT AUDIT REPORT SUBMISSION

The independent audit shall be completed and the required report submitted to OEO within nine
(9) months of the close of the agency‘s fiscal year-end. The report shall include an opinion (or
disclaimer of opinion) as to whether the subgrantee complied with the laws, regulations and
provisions of the grant agreements, Schedules of Budget and Incurred Costs, and the Schedule of
Findings and Questioned Costs.

Within thirty (30) days following receipt of the independent audit report, the subgrantee must
provide OEO:

1.   Two (2) copies of the Independent Audit Report
2.   Any necessary supporting documents
3.   An explanation of adjustments to the amounts reported on the final FSR
4.   Information that may be pertinent to the grant

The subgrantee will forward at least one (1) copy of the independent audit report to each funding
source represented in the report, exclusive of OEO‘s required copies.

OEO AUDIT RESPONSIBILITIES

1. Audit subgrantee activities to ensure that federal awards are used for authorized
   purposes and in compliance with the laws and regulations governing the provisions of each
   grant agreement;
2. Ensure that the subgrantee has satisfactorily met the fiscal year-end audit requirements;
3. Ensure the subgrantee takes appropriate and timely corrective action;
4. Follow-up on prior year‘s audit findings; and
5. Issue the Desk Audit Report.

OEO DESK AUDIT

A desk audit is performed annually to ascertain each agency‘s grant agreement compliance and to
examine questioned costs and findings as reported in the independent audit report. At the same
time, the desk audit is used to determine any fund balances due OEO and grant agreement
violations not reported in the independent audit report.




                      Office of Economic Opportunity • 1205 Pendleton Street
                               Columbia, SC 29201 • (803) 734-0662
OEO will use the Desk Audit Guide to determine audit acceptability. For each program, OEO‘s
Desk Audit Report will describe:

       A.   Audit findings or questioned costs
       B.   Justification for each such finding or question
       C.   Disposition of each questioned cost - allowed or disallowed
       D.   A decision on disallowed costs
       E.   Amount of funds involved, if any, and total sum in question

The desk audit will be conducted within six (6) months following receipt of the subgrantee‘s
independent audit report. Once the desk audit is complete, OEO will address the initial Desk
Audit Report to the subgrantee‘s Board Chairperson. A copy of the report will be sent to the
agency‘s Executive Director and appropriate OEO staff (Executive Director, Program and Fiscal
Managers).

The subgrantee shall respond to the initial report in writing to the OEO Senior Auditor within
thirty (30) business days of the date of the report. Failure to respond to the initial report within
the required time shall signify the agency‘s acceptance of the report‘s findings.

Any follow-up correspondence regarding the initial report will be sent to the subgrantee‘s
Executive Director unless otherwise requested by the subgrantee‘s Board of Directors. When the
subgrantee fails to respond to follow-up correspondence within the requested time frame,
correspondence will be sent to the Board Chairperson. The agency‘s failure to respond may
result in a suspension of future funding.

DISALLOWED COSTS

The OEO desk audit report shall identify questioned costs (i.e. over-expended line items) that
OEO has classified as disallowed. The disallowed costs shall be payable to the OEO within
forty-five (45) days from the date of the initial desk audit report. Payment methods permitted to
satisfy disallowed costs are as follows:

       1. Lump-sum Payment
          The OEO must receive the total disallowed sum within the aforementioned time
          period. If the subgrantee is financially unable to make full payment within this time
          frame, this fact must be stated to the OEO Senior Auditor in writing within twenty (20)
          business days of the date of the initial desk audit report. The subgrantee will be
          subject to an OEO field audit to document the non-federal/non-state funds available
          for repayment of delinquent debt.
       2. Installment Payments
          Subsequent to verification of the subgrantee‘s inability to repay in lump-sum, OEO



                       Office of Economic Opportunity • 1205 Pendleton Street
                                Columbia, SC 29201 • (803) 734-0662
          will establish an agreement with the subgrantee for installment payments. Those
          terms will be provided in writing. The standard repayment period is twelve months,
          not to exceed a thirty-six month maximum time allowance. Monthly payments will be
          due OEO by the 15th of each month. Quarterly payments will be due OEO by the 15th
          day of the last month in the quarter.

       3. Delinquent Payments
          If a subgrantee fails to repay funds within the required time frame, the regulations
          mandated by OMB Circular A-129, Policies for Federal Credit Programs and Non-Tax
          Receivables, Part V-Delinquent Debt Collection and 4 CFR Chapter 11-Federal
          Claims Collection Standards (General Accounting Office – Department of Justice)
          may be exercised in the collection of delinquent debt.

SUMMARY

The purpose in establishing these procedures is to permit a thorough and fair review of audit
questions and disallowances. The OEO shall revise these procedures as needed in order to
maintain compliance with state and federal requirements.

If you have any questions, you may contact me at (803) 734-0672.

ATTACHMENT: Audit Report Review

DISTRIBUTION:
CAA Board Chairpersons
CAA Executive Directors
CAA Program Directors
CAA Fiscal Officers
OEO Director, Ashlie Lancaster
OEO Staff


c:     PY 2006 ESG RFA, Handbook, Subgrantees, & Grant Agreement




                      Office of Economic Opportunity • 1205 Pendleton Street
                               Columbia, SC 29201 • (803) 734-0662
                                                                                      ATTACHMENT
                             STATE OF SOUTH CAROLINA
                             OFFICE OF THE GOVERNOR
                         OFFICE OF ECONOMIC OPPORTUNITY

                                  AUDIT REPORT REVIEW

(To be reviewed by the agency prior to submitting to the OEO two copies of the agency‘s
Independent Single Audit Report)

Auditee: _______________________________________________________________
              Community Action Agency
Audit Period: ____________________________________________________________

General                                                                         Yes        No
 1. Is the auditor independent? This is to ensure compliance with               ____       ___
    the arms-length criteria.

 2. Do the audit reports contain the required Schedules of Budget
    and Incurred Costs for all OEO administered programs?                       ___        ___

 3. Do the audit reports state that the agency is responsible for
    the financial statements?                                                   ___        ___

 4. Do the audit reports indicate the audit was conducted in                    ____       ___
    accordance with the following:

       A. Auditing standards generally accepted in the United States of
       America?                                                                 ___        ___

       B. OMB Circular A-133?                                                   ___        ___

      C. Government Auditing Standards?                                         ___        ___
5. Do the audit reports contain an opinion on the agency‘s compliance
   with respect to the agency‘s major federal programs?                         ___        ___

6. Do the audit reports identify instances of noncompliance and the
   federal program?                                                             ___        ___

7. Do the audit reports identify reportable condition(s) and the federal program(s) involved?
                                                                            ___           ___




                       Office of Economic Opportunity • 1205 Pendleton Street
                                Columbia, SC 29201 • (803) 734-0662
                                                                                Yes   No

 8. Does the audit identify reportable conditions considered to be
    material weaknesses and the federal program(s)?                             ___   ___

 9. Based on the reviewer's knowledge and review of the report, does
    it appear that there are any unreported instances of noncompliance?         ___   ___

    A. If so, include a statement that identifies the instance(s).              ___   ___

Schedule of Findings & Questioned Costs

1. Did the auditor issue a management letter?                                   ___   ___

   A. A copy of the management letter is included with this report.             ___   ___

   B. A copy of management‘s response indicating the actions taken
      to remedy the situation is included with this report.                     ___   ___

2. Are prior year findings presented in the current year‘s report?              ___   ___

   A. Does the current year Schedule of Findings and Questioned
      Costs address prior year‘s unresolved findings?                           ___   ___

3. Do current year findings provide appropriate oversight officials
    sufficient details?                                                         ___   ___

    A. Are the federal program(s) involved identified?                          ___   ___

    B. Is the incident described in sufficient detail?                          ___   ___

    C. If appropriate, is the amount identified (quantified)?                   ___   ___

    D. Does the report identify the section of the law, regulation,
       contract or grant that was violated?                                     ___   ___

    E. Are recommendation(s) for corrective actions offered?                    ___   ___


4. Does the Schedule of Findings & Questioned Cost identify:

   A. Programs considered major programs?                                       ___   ___




                       Office of Economic Opportunity • 1205 Pendleton Street
                                Columbia, SC 29201 • (803) 734-0662
                                                                               Yes   No

   B. The dollar threshold used to distinguish type A and type B
      programs?                                                                ___   ___

   C. If the auditee qualifies as low-risk? If not, explain.                   ___   ___

5. Did the auditor become aware of fraud, abuse, or illegal acts?              ___   ___

   A. Did the auditor prepare a separate written report describing the
      situation and possible effects on the financial statements?              ___   ___

   B. A copy of the report and the agency response detailing action
      taken is included with the review.                                       ___   ___




                      Office of Economic Opportunity • 1205 Pendleton Street
                               Columbia, SC 29201 • (803) 734-0662

								
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