DEVELOPMENT DISABILITIES BASIC SUPPORT AND ADVOCACY GRANTS

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1 DEVELOPMENT DISABILITIES BASIC SUPPORT AND ADVOCACY GRANTS APRIL 2010 State Project/Program: DISABILITY RESOURCE CENTER, INC. U. S. Department of Health and Human Services Administration for Children and Families Federal Authorization: Public Law (PL) ; United State Code (USC) 42, et seq. N. C. Department of Health and Human Services Division of Vocational Rehabilitation Services Agency Contact Person Program Cynthia Temoshenko (919) Agency Contact Person Financial Patricia Harper (919) N. C. DHHS Confirmation Reports: SFY 2010 audit confirmation reports for payments made to Counties, Area Programs, Board of Education, Councils of Government, District Health Departments, DCD State Level Contractors and HRSA Bioterrorism Grant Subrecipients will be available by around late August to early September at the following web address: At this site, page down to Letters/reports/forms for ALL Agencies and click on Audit Confirmation Reports (State Fiscal Year ). Additionally, audit confirmation reports for Nongovernmental entities receiving financial assistance from the DHHS are found at the same website except select Non-Governmental Audit Confirmation Reports (State Fiscal Years ). The auditor should not consider the Supplement to be safe harbor for identifying audit procedures to apply in a particular engagement, but the auditor should be prepared to justify departures from the suggested procedures. The auditor can consider the Supplement a safe harbor for identification of compliance requirements to be tested if the auditor performs reasonable procedures to ensure that the requirements in the Supplement are current. The grantor agency may elect to review audit working papers to determine that audit tests are adequate. I. PROGRAM OBJECTIVES The objective of the Development Disabilities Basic Support and Advocacy Grant funds disbursed to Disability Resource Center, Inc. is to support a Center for Independent Living in Wilmington, NC. The Contractor will provide independent living core services, in accordance with The Rehabilitation Act of 1973, as amended, Sections 702 and 705 standards and assurances, to persons with disabilities residing in the following counties: New Hanover and Brunswick. B

2 II. PROGRAM PROCEDURES Disability Resources Center has agreed to: Plan, conduct, administer, and evaluate a Center for Independent Living consistent with the standards and assurances identified in section 725(b) and (c) of the Rehabilitation Act, and subparts F and G of 34 CFR part 366; Serve eligible consumers within New Hanover and Brunswick counties which have been identified as unserved or underserved counties by the NC State Plan for Independent Living; Ensure that the majority of the Center s staff and individuals in decision making positions are individuals with disabilities; Provide equal access to the four Independent Living Core services for eligible consumers who are members of groups that have been traditionally under-represented (including, members of racial or ethic minority groups, women, elderly individuals, children and youth); As part of nondiscriminatory employment practices, Disability Resource Center shall ensure that its personnel are selected for employment with regard to race, color, national origin, gender, age or disability; and to the extent that it will encourage application for employment from persons who are members of groups that have been traditionally under-represented, including members of racial or ethic minority groups, women, elderly individuals; Disability Resource Center shall ensure that individuals with significant disabilities will be substantially involved in planning policy direction, and management of the center, and those individuals with significant disabilities will be employed by the center; Disability Resource Center shall ensure that over 50% of the Center s decision makers, board members and staff shall be individuals with significant disabilities; Provide the following Independent Living Core Services: Information and Referral, Peer Counseling, IL Skills Training, and Individual and Systems Advocacy. III. COMPLIANCE REQUIREMENTS A. Activities Allowed or Unallowed Funds are used to support a Center for Independent Living in Wilmington, NC. Funds will be use to provide independent living core services, in accordance with The Rehabilitation Act of 1973, as amended, Sections 702 and 705 standards and assurances, to persons with disabilities residing in the following counties: New Hanover and Brunswick. B. Allowable Costs/Cost Principles Activities/services described in I., Program Objectives, are allowable activities of a developmental disabilities grant. These include promoting systems change that contribute to a coordinated consumer- and family-directed, comprehensive system of community services, individualized supports, and other forms of assistance that enable individuals with developmental disabilities to exercise self-determination, be independent, be productive, and be integrated and included in all facets of community life (PL , Sec. 121(1)(2)). Activities described in the B

3 program narrative, a unique narrative included in each approved developmental disabilities grant, are also allowable activities. Activities specifically not allowed are construction and major renovation. (PL , Sec. 123) Costs in the approved application budget are allowable costs of a developmental disabilities grant. These include the following budget categories: salaries, fringe benefits, supplies, staff travel, cost of space, equipment, contracted services, other ( other is defined in the grant application), and indirect costs. Each budget category may have explanatory remarks. Expenditures / costs are limited to those outlined in the approved budget in the application. Basic Considerations, Indirect Costs, Direct Costs, Allowable Costs, and Unallowable Costs may be found in the latest version of the federal Office of Budget and Management (OMB) Circular 122 or OMB Circular A-87 available from the OMB website at C. Cash Management Not less than monthly a Request for Reimbursement or a Report of Outlays (for projects receiving monthly advances) showing expenditures will be submitted to the NC Division of Vocational Rehabilitation Services. While no moneys may have been expended (in such case all entries will be zeros), these monthly requests are mandatory. Expenditures in arrears more than sixty (60) days, or two months of the period, for which the project is funded, will not be reimbursable. E. Eligibility An eligible recipient under a Developmental Disabilities grant must conduct activities for people with developmental disabilities that are defined as severe and chronic and: 1. Are attributable to a mental or physical impairment or combination of mental and physical impairments, 2. Are manifested before the person reaches the age of 22, 3. Are likely to continue indefinitely, 4. Result in substantial functional limitations in three or more of the following areas of major life activity: a) self-care b) receptive and expressive language c) learning d) mobility e) capacity for independent living f) economic self-sufficiency g) self-direction B

4 5. Reflect the need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. G. Matching, Level of Effort, Earmarking Funds used to match developmental disabilities funds must be either State or local. Federal funds, even though channeled through a State agency, may not be used as match (PL , Sec. 126 b (1)). H. Period of Availability of Federal Funds The Performance Agreement and budget incorporated therein will define the period of availability of federal funds. Federal funds may be spent over multiple years; however, Performance Agreements and project budgets are written for one year at a time, and project budgets are one-year budgets. The beginning and ending dates of the project are incorporated into the Performance Agreement, and all expenditures must occur within these dates. L. Reporting In addition to the monthly fiscal reports described in Section C Cash Management above, a final fiscal report must be prepared by the local service providing agency and submitted to the Council on Developmental Disabilities no later than 30 calendar days after the grant period ends (PL , Sec. 103 and ASSURANCES). Assurances are signed by the grantee and are a part of the grant application defining the terms of the grant and expectations of the grantee and grantor. Final Requests for Reimbursement received by the NC Division of Vocational Rehabilitation Services after 60 calendar days may not be reimbursable. The Center shall submit a completed 704, Annual Performance Report for Centers for Independent Living Program, Part II Instrument to the NC Statewide Independent Living Council s Expanding the Network of Centers Committee by no later than December 31 of each year. M. Subrecipient Monitoring The NC Division of Vocational Rehabilitation Services Monthly Performance Report accomplishes subrecipient monitoring. This report provides information on the number of consumers provided with IL Core Services. The Center is also required to provide a Quarterly and Annual Performance Report to the Division detailing information on the number of consumers provided with IL Core Services. N. Special Tests and Provisions Compliance Requirement Disability Resource Center is required by the Department of Health and Human Services basic records retention policy to retain all records for a minimum of five years. Policy further requires that records be retained for a period of five years following the submission of the final Federal Financial Status Report, if applicable, or three years following the submission of a revised final Federal Financial Status Report. Also, if any litigation, claim, negotiation, audit, disallowance action, or other action involving these funds has been started before expiration of the five year retention period, the records must be retained until the completion of the action and resolution of B

5 all issues which arise from it, or until the end of the regular five year period, whichever is later. Therefore, Eastern North Carolina Center for Independent Living shall not destroy, purge or dispose of records related to these funds without the express written consent of the Division of Vocational Rehabilitation. Audit Objective To ensure the Department of Health and Human Services record retention policy is followed. Suggested Audit Procedures Verify that records are kept for a minimum of three years related to the Development Disabilities Basic Support and Advocacy Grant Development Disabilities Basic Support and Advocacy Grant funding disbursed by the Division to Disability Resource Center. Conflict of Interest and Certification of No Overdue Taxes All non-state entities (except those entities subject to the audit and other reporting requirements of the Local Government Commission) that receive, use or expend State funds (including federal funds passed through the N. C. Department of Health and Human Services) are subject to the financial reporting requirements of G. S for fiscal years beginning on or after July 1, These requirements include the submission of a Notarized Conflict of Interest Policy (see G. S (b1)) and a written statement (if applicable) that the entity does not have any overdue tax debts as defined by G. S at the federal, State or local level (see G. S (b2)). All non-state entities that provide State funding to a non-state entity (except any non-state entity subject to the audit and other reporting requirements of the Local Government Commission) must hold the subgrantee accountable for the legal and appropriate expenditure of those State grant funds. B

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