EMPOWERMENT ZONE AND ENTERPRISE COMMUNITIES Information Memorandum |
U.S. Department of Health and Human Services |
Transmittal No. 6 Date: August 27, 2009
TO:
State Agency recipients of Special Social Services Block Grants (known as “EZ/EC SSBG funds” and “OCS EZ/EC Grants”) for activities in Round One Empowerment Zone Project Areas and Conversion Site (CS) Areas.
Managers of community revitalization projects in Round One Empowerment Zone (EZ) Project Areas, Enterprise Community (EC) Project Areas and Conversion Site Areas.
SUBJECT:
Guidance to State agencies and local-level EZ, EC and CS project lead entities about “Close Out” of OCS EZ/EC SSBG grants.
RELATED REFERENCE:
Omnibus Reconciliation Act of 1993 (Pertinent parts are codified at 42 U.S.C. Section 1387f)
U.S. Department of Health and Human Services Block Grant Regulations (45 C.F.R. Part 96)
Previous guidance for States and local-level entities concerning the OCS EZ/EC Grants
OCS internet page at:http://www.acf.hhs.gov/programs/ocs/ez-ec/
DEFINITIONS:
OCS EZ/EC Grants – Special Social Services Block Grants that the Federal Office of Community Services (OCS) awarded to specific State agencies to support community revitalization activities in EZ Project Areas, EC Project Areas and CS Areas.
Round One Empowerment Zones and Enterprise Communities Program - A Federal program managed jointly by the U.S. Department of Health and Human Services, the U.S. Department of Agriculture and the U.S. Department of Housing and Urban Development. The program provides flexible grant funding (OCS EZ/EC Grants), Federal tax incentives and other assistance to encourage comprehensive revitalization in specified urban and rural places.
Round One EZ or EC Project Area – A geographic area selected by the Federal government in 1994 for participation in the Round One EZ and EC Program.
Conversion Site Area – A geographic area that was a Round One EZ or EC Project Area from December 1994 until January 1, 2002. These areas were reclassified as “Conversion Site Areas” when the U.S. Department of Housing and Urban Development announced the Renewal Community Program.
Obligations – Orders placed, contracts and subcontracts awarded, goods and services received, and similar transactions during a given period that will require payment by the grantee during the same or future period.
Outlays – (Expenditures) Charges made to the project or programs. They may be reported on a cash or accrual basis. For reports prepared on a cash basis, outlays are the sum of actual cash disbursement for direct charges for goods and services, the amount of indirect expenses incurred, the value of in-kind contributions applied, and the amount of cash advances and payments made to contractors and subgrantees. For reports prepared on an accrued expenditure basis, outlays are the sum of actual cash disbursements, the amount of indirect expenses incurred, the value of in-kind contributions applied, and the new increase (or decrease) in the amounts owed by the grantees for goods and other property received, for services performed by employees, contractors, subgrantees, subcontractors, and other payees, and other amounts becoming owed under programs for which no current services or performance are required, such as annuities, insurance claims, and other benefit payments.
Unliquidated Obligations – For reports prepared on a cash basis, this means the amount of obligations incurred by the grantee that has not been paid. For reports prepared on an accrued expenditure basis, they represent the amount of obligations incurred by the grantee for which an outlay has not been recorded.
BACKGROUND:
The Office of Community Services (OCS), Administration for Children and Families (ACF), is the lead agency in the U.S. Department of Health and Human Services for community-based human development services. Its mission is to increase the capacity of individuals and families to become more self-sufficient and to help build, revitalize and strengthen their community. It administers the Community Services Block Grant, the Social Services Block Grant, Urban and Rural Economic Development project grants, Assets for Independence “Individual Development Account” project grants, the Compassion Capital Fund and a number of other programs that support community building, asset development and job creation activities for low-income people.
OCS is particularly interested in assisting States and local-level organizations that manage efforts in EZ, EC and CS Project Areas to provide supportive services that help low-income families become economically self-sufficient.
OCS collaborates closely with the U.S. Department of Agriculture (USDA) and the U.S. Department of Housing and Urban Development (HUD) to administer the overall Round One EZ and EC program. In 1994-1995, OCS awarded $1,000,000,000 in OCS EZ/EC grant funds to States in support of comprehensive community revitalization activities in the 104 localities that were designated as Federal EZ or EC Project Areas.
The terms of the OCS EZ/EC grant stipulate that the project periods will expire on December 31, 2009. A copy of the terms and conditions is attached to this memorandum.
CONTENTS:
This memorandum provides guidance about the “Close Out” process and related matters.
CLOSE OUT PROCEDURE:
Grantee State agencies are to implement a grant close out procedure that is consistent with the procedure used for its own grants.
FINAL AUDIT:
A final audit is required to the extent that the State grantee agency requires an audit at the close out of its own grants, or that the State implementing agency has authority to require an audit and chooses to require one.
OCS/ACF highly recommends that the State grantee agency should conduct a review of all uses of the OCS EZ/EC SSBG funds prior to the close out process to ensure that the EZ/EC lead entities and other sub-recipients have used the funds for allowed projects and activities.
DISPOSITION OF ASSETS FINANCED WITH GRANT FUNDS:
State grantee agencies are encouraged, to the extent allowed by State law and procedure, to enable the EZ/EC or CS lead entities to continue using any asset, including real property, that is acquired with the OCS EZ/EC SSBG grants and that it owns as of December 31, 2009, for the purposes consistent with the authorizing legislation.
It is anticipated that any asset, including real property that was financed in whole or in part with OCS EZ/EC SSBG funds but is owned by an organization other than the local EZ/EC or CS lead entity as of December 31, 2009, will remain the property of that organization and will remain available for purposes consistent with the authorizing legislation.
DISPOSITION OF UNLIQUIDATED OBLIGATIONS:
All amounts reported on the final report (Standard Form 269) as “unliquidated obligations” as of the end of the grant close out period must be remitted to the U.S. Department of Health and Human Services/Administration for Children and Families via check from the State. ACF will issue a negative grant award notice to cover all unliquidated balances.
CLOSE OUT PERIOD:
The State grantee agency may implement grant close out procedures starting no later than December 31, 2009 and ending no later than June 30, 2010.
The State grantee agency may continue to draw down funds during the close out period to liquidate an obligation that was properly incurred by the local EZ/EC or CS project lead entity prior to December 31, 2009.
FINAL REPORT:
The State grantee agency is required to submit a completed Federal Financial Status Report form (Standard Form 269) for each Empowerment Zone and Enterprise Community supported with an OCS EZ/EC SSBG grant.
FINAL REPORT DUE DATE:
States are required to submit a final report for each EZ and EC project by June 30, 2010.
REPORT SUBMISSION: Send Final Reports of the close out period to:
ATTN: Joseph Lonergan
Administration for Children and Families
Office of Mandatory Grants
370 L’Enfant Promenade, S.W., 6th Floor East
Washington, D.C. 20447
INQUIRIES: Please direct inquiries to:
Latasha Abney
Office of Community Services
Administration for Children and Families
U.S. Department of Health and Human Services
370 L’Enfant Promenade, S.W., 5th Floor West
Washington, D.C. 20447
Tel: (202) 401-5324
Email: Latasha.Abney@acf.hhs.gov
/s/
___________________________
Yolanda J. Butler, Ph.D.
Acting Director
Office of Community Services