APRIL 2015 84.169 INDEPENDENT LIVING STATE GRANTS State Project/Program: NORTH CAROLINA STATEWIDE INDEPENDENT LIVING COUNCIL, INC. U. S. DEPARTMENT OF EDUCATION OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES Federal Authorization: Rehabilitation Act of 1973, as amended, Title VII, Chapter 1, Part B. N. C. Department of Health and Human Services Division of Vocational Rehabilitation Services Agency Contact Person Program Pam Lloyd (919) 855-3523 Pamela.Lloyd@dhhs.nc.gov Agency Contact Person Financial Patricia Harper (919) 855-3592 Trish.Harper@dhhs.nc.gov N. C. DHHS Confirmation Reports: SFY 2015 audit confirmation reports for payments made to Counties, Local Management Entities (LMEs), Boards of Education, Councils of Government, District Health Departments and NC DHHS/Division of Health Service Regulation Grant Subrecipients will be available by mid September at the following web address: http://www.ncdhhs.gov/control/auditconfirms.htm. At this site, click on the link entitled Audit Confirmation Reports (State Fiscal Year 2014-2015). 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 2013-2015). 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 In accordance with the Rehabilitation Act of 1973, as amended, states are permitted to use Part B funds for the operational expenses of a State Independent Living Council (SILC). The current N. C. State Plan for Independent Living (SPIL) allocated Part B funds for the operational expenses of the N. C. SILC, Inc. The law further stipulates that the designated state unit(s) shall receive, disburse and account for Part B funds, which for N. C. means that the N. C. Division of Vocational Rehabilitation Services (DVRS) and the N. C. Division of Services for the Blind (DSB) receive, disburse and account for Part B funds. II. PROGRAM PROCEDURES North Carolina Statewide Independent Living Council, Inc. has agreed to: B-4 84.169-1 1
Jointly develop and sign (in conjunction with the N. C. Division of Vocational Rehabilitation Services and Division of Services for the Blind) the N. C. State Plan for Independent Living (N. C. SPIL) required in section 704 of the Rehabilitation Act; Monitor, review, and evaluate the implementation of the N. C. SPIL; Coordinate activities with the N. C. Division of Vocational Rehabilitation Services State Rehabilitation Council, Division of Services for the Blind State Rehabilitation Council established under section 105 and other state councils that address the needs of specific disability populations and issues under Federal law; Ensure that all regularly scheduled meetings of the N. C. SILC are open to the public and sufficient advance notice is provided; Submit to the Secretaries of the U. S. Department of Education and/or Health and Human Services such periodic reports as the Secretary may reasonably request, and keep such records, and afford such access to such records, as the Secretary finds necessary to verify the periodic reports; Hold any hearings and forums as the N. C. SILC may determine to be necessary to carry out the duties of the N. C. SILC; Prepare (in conjunction with the N. C. Division of Vocational Rehabilitation Services and Services for the Blind) a resource for the provision of resources, including staff and personnel, made available under Part B of Chapter 1 of title VII of the Act and from other public and private sources that may be necessary to carry out the functions of the N. C. SILC under this part; Be fiscally responsible for the proper expenditure of funds and use of resources that it receives under the resource plan; Supervise and evaluate its staff and other personnel as may be necessary to carry out its functions under the contract, consistent with State law; Pay for the operational expenses of the N. C. SILC, as allocated in the N. C. SPIL; and Reimburse members of the N. C. SILC for reasonable and necessary expenses of attending N. C. SILC meetings and performing N. C. SILC duties and to pay compensation to a member of the N. C. SILC, if such member is not employed or must forfeit wages from other employment, for each day the member is engaged in performing N. C. SILC duties. III. COMPLIANCE REQUIREMENTS A. ACTIVITIES ALLOWED OR UNALLOWED Funds are used to support the North Carolina Statewide Independent Living Council, Inc. Funds will be used to provide for the operational expenses of the N. C. SILC pursuant to the N. C. State Plan for Independent Living (SPIL). 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 B-4 84.169-1 2
developmental disabilities to exercise self-determination, be independent, be productive, and be integrated and included in all facets of community life (PL 106-402, Sec. 121(1)(2)). Activities described in the 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 106-402, 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 www.whitehouse.gov/omb/circulars. 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 N. C. 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 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. B-4 84.169-1 3
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 106-402, 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 shown 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 106-402, 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 N. C. Division of Vocational Rehabilitation Services after 60 calendar days may not be reimbursable. The North Carolina Statewide Independent Living Council, Inc. shall compile all submitted 704 Annual Performance Report for Centers for Independent Living Program, Part II Instrument. M. SUBRECIPIENT MONITORING The N. C. 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 North Carolina Statewide Independent Living Council, Inc. 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 North Carolina Statewide Independent Living Council, Inc. is required by the N. C. 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 five 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 three year retention period, the records must be retained until the completion of the action and resolution of all issues which arise from it, or until the end of the regular three year period, whichever is later. Therefore, North Carolina Statewide Independent Living Council, Inc. shall not destroy, purge or dispose of records related to these funds without the express written consent of the N. C. Division of Vocational Rehabilitation. B-4 84.169-1 4
Audit Objective To ensure the N. C. 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 funding disbursed by the Division to North Carolina Statewide Independent Living Council, Inc. Conflict of Interest and Certification of no Overdue Tax Debts 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. 143C-6.2 for fiscal years beginning on or after July 1, 2005. These requirements include the submission of a Notarized Conflict of Interest Policy (see G. S. 143C-6-2(b1)) and a written statement (if applicable) that the entity does not have any overdue tax debts as defined by G. S. 105-243.1 at the federal, State or local level (see G. S. 143C-6-2(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-4 84.169-1 5