016.20.05 Ark. Code R. 005

Current through Register Vol. 49, No. 9, September, 2024

Rule 016.20.05-005 - 2006 - 2007 Community Services Block Grant Program

TO: COMMUNITY SERVICES BLOCK GRANT DIRECTORS

WOULD YOU PLEASE COMPLETE THIS FORM ASAP AND RETURN IT TO:

016.20.05-005

Department of Health and Human Services Administration for Children and Families Office of Community Services/Division of State Assistance/CSBG Branch 370 L'Enfant Plaza Promenade, S.W. 5^th Floor/West Wing Washington, D.C. 20447 _________________________________________________________________

COMMUNITY SERVICES BLOCK GRANT PROGRAM

ARKANSAS

STATE ORGANIZATION

NAME OF OFFICIAL TO RECEIVE CSBG GRANT AWARD:

Thomas E. Green, Assistant Director

(Name & Title)

Office of Community Services

(Department/Agency/Office)

P.O. Box 1437/Slot S330, Little Rock, Arkansas 72203-1437

(Street Address)

(501) 682-8715

(Area code/Telephone Number)

CONTACT PERSON FOR CSBG ISSUES:

Thomas E. Green, Assistant Director, Office of Community Services

(Name, Title & Organization)

P.O. Box 1437/Slot S330 (7^thand Main Street)

(Street Address)

Little Rock, Arkansas 72203-1437

(City, State, Zip Code)

(501)682-8715

(Area code/Telephone Number)

CONTACT PERSON ON AUDIT ISSUES:

Bob Lewis, Director of Audit, Audit/Fiscal Review (501)682-6231

(Name, Title & Telephone Number)

GENERAL CSBG APPLICATION COMPLIANCE FOR FISCAL YEARS 2006-2007

Ninety Percent Pass Through Provision

Section 675

In compliance with the Community Services Block Grant Act, section 675 (C) (a) (1), the State of Arkansas will not use less than ninety percent of the funds allotted to the State to make grants to eligible entities for the purposes described in section 676 (b) (1) of the Act.

The Formal Request

Section 676

In compliance with the Community Services Block Grant Act, specifically with Section 672 (2), the State of Arkansas hereby submits the application for its Fiscal Years 2006-2007 allotment of

Community Services Block Grant funds. This application contains the necessary provisions, which adequately describe the programs for which assistance is sought under this subtitle, and which are consistent with the requirements of Section 676 of this Act.

Designation of Lead Agency

Section 676 (a) (1)

The Chief Executive Officer of the State shall designate, in an application, an approved State Agency for the purpose of carrying out activities under this subtitle.

Assurance: Governor Mike Huckabee designates the Arkansas

Department of Health and Human Services as the lead agency to be responsible for carrying out activities under this subtitle for the State of Arkansas. In addition, through Act 345 of 1985, the Legislature has made the Department responsible for carrying out all aspects of the Act.

Through the administrative rule-making process, the State has established policies and procedures to be followed by eligible entities in carrying out the CSBG program in their specific service areas both generally and specifically consistent with the requirements of the Federal Act and regulations.

The OCS Policy Manual is submitted as Attachment i and is part of the fiscal years 2006-2007 Arkansas State Plan.

These policies and procedures, together with the following, constitute the plan:

Duties of Lead Agency

Section 676(a) (2)

Duties of the lead agency shall be to:

A. develop the State Plan to be submitted to the Secretary,

B. holds at least one public hearing in the State, with sufficient time and statewide distribution of notice of such hearing, to provide opportunity for public comment on the proposed use and distribution of Community Services Block Grant funds, and

C. conduct reviews of eligible entities under Section 678 B.

In fiscal years 2006-2007, Arkansas will submit a plan covering two fiscal years not later than 30 days prior to the beginning of the first fiscal year covered. The plan will contain such information as the Secretary shall require.

The Act requires the State to conduct at least one State Public Hearing to provide the public an opportunity to comment on the proposed use and distribution of funds in conjunction with development of the State Plan. The State will hold 5 such hearings. The public will be offered opportunity to comment on proposed use and distribution of funds for the plan period,

this will be fiscal years 2006-2007.

The Act also calls for reviews of eligible entities. In fiscal years 2006-2007, OCS staff will conduct, at a minimum, an annual on-site program evaluation and compliance review of eligible entities in order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements and other requirements of the State.

As established in Section 678 B, the State will also conduct:

(1) an on-site review of each newly designated entity immediately after the completion of the first year in which such entity receives funds;

(2) follow-up reviews including prompt return visits to eligible entities, and their programs, that fail to meet the goals, standards, and requirements established by the State; and

(3) other reviews as appropriate, including reviews of entities with programs that have had other Federal, State, or local grants (other than CSBG) terminated for cause.

Assurance: Governor Mike Huckabee so assures. Legislative Hearing

Section 676(a) (3)

The Legislature of the State shall hold at least one legislative hearing every three (3) years in conjunction with development of the State Plan.

Assurance: Governor Mike Huckabee assures that the State

Legislative Body will conduct a legislative hearing for fiscal years 2006-2007 prior to the first fiscal year covered in the plan and prior to approval by the Secretary. The results of

Hearing will be forwarded to the Secretary. By Act 345 of 1985,

the Arkansas Legislature institutionalized the Community

Services Program in Arkansas and determined that it is to be carried out primarily through the Arkansas local Community

Action Agencies. It determined service areas of these agencies to include all seventy-five counties and mandated 90 percent pass through of CSBG funds to these agencies. Services will be provided in all seventy-five counties through the Community

Action Agencies network. The Act also limits state administration expenditure out of CSBG funds to five percent.

The remaining five percent of funds will be used as discretionary funds. The types of community services to be provided are consistent with requirements of the CSBG Federal

Act. See Attachment iii for documentation of legislative hearing.

State Application and Plan

Section 676(b)

A State shall prepare and submit to the Secretary an application and State Plan covering a period of not less than 1 fiscal year and not more than 2 fiscal years. The plan shall be submitted not later than 30 days prior to the beginning of the first fiscal year covered by the plan.

Assurance: Governor Mike Huckabee assures the State will submit an application and State Plan covering two fiscal years, 2006-2007, not later than 30 days prior to the beginning of the first fiscal year covered by the plan, and the plan shall contain such information as the Secretary shall require. The application is in a form based on guidance from the Federal Department of

Health and Human Services and the Arkansas Department of Health and Human

Services will be directly responsible for carrying out for the Governor and for the State of Arkansas the necessary compliances.

COMPLIANCE WITH FEDERAL STATUTORY ASSURANCES

Assurance 1 - "Use of Funds"

Section 676(b) (1) (A)

The Chief Executive Officer shall assure, that funds made available to the State, will be used to support activities designed to assist low-income families and individuals,

including families and individuals receiving assistance under part A of

Title IV of the Social Security Act (42 U.S.C. 601 et seq.),

homeless families and individuals, migrant or seasonal farm workers, and elderly low-income individuals and families; and a

description of how such activities will enable the families and individuals to:

1. remove obstacles and solve problems that block the achievement of self-sufficiency (including self-sufficiency for families and individuals who are attempting to transition off a State program carried out under part A of Title IV of the Social Security Act);

2. secure and retain meaningful employment;

3. attain an adequate education, with particular attention toward improving literacy skills of the low-income families in the communities involved, which may include carrying out family literacy initiatives;

4. make better use of available income;

5. obtain and maintain adequate housing and a suitable living environment;

6. obtain emergency assistance through loans, grants, or other means to meet immediate and urgent family and individual needs; and

7. achieve greater participation in the affairs of the communities involved, including the development of public and private grassroots partnerships with local

law enforcement agencies, local housing authorities, private foundations and other public and private partners to:

(a) document best practices based on successful grassroots intervention in urban areas, to develop methodologies for widespread replication; and

(b) strengthen and improve relationships with local law enforcement agencies, which may include participation in activities such as neighborhood or community policing efforts. Governor Mike Huckabee so assures.

Section 676(b) (1) (B)

The Chief Executive Officer assures funds are used to address the needs of youth in low-income communities through youth development programs that support the primary role of the family, give priority to the prevention of youth problems and crime, and promote increased community coordination and collaboration in meeting the needs of youth, and support development and expansion of innovative community-based youth development programs that have demonstrated success in preventing or reducing youth crime, such as; programs for the establishment of violence-free zones that would involve youth development, and intervention models and after-school child care programs.

Governor Mike Huckabee so assures.

Section 676(b) (1) (C)

Governor Huckabee assures that funds will be used to make more effective use of, and to coordinate with, other programs related to the purposes of this subtitle (including State Welfare Reform efforts).

Governor Mike Huckabee so assures.

Assurance 2 - "Use of Discretionary Funds"

Section 676(b) (2)

Governor Huckabee assures that five percent of funds will be used to include activities such as:

1. providing training and technical assistance to entities in need of such training and assistance;

2. coordinating State-operated programs and services, and at the option of the State, locally-operated programs and services targeted to low-income children and families with services provided by eligible entities and other organizations funded under this subtitle, including detailing appropriate employees of State or local agencies to entities funded under this subtitle,

to ensure increased access to services;

3. supporting statewide coordination and communication among eligible entities;

4. analyzing the distribution of funds made available under this subtitle within the State to determine if such funds have been targeted to the areas of greatest need;

5. supporting asset-building programs for low-income individuals, such as programs supporting individual development accounts;

6. supporting innovative programs and activities conducted by Community Action Agencies or other neighborhood-based organizations to eliminate poverty, promote self-sufficiency, and promote community revitalization;

7. supporting State charity tax credits; and

8. supporting other activities, consistent with the purposes of this subtitle.

Governor Mike Huckabee so assures.

Assurance 3 - "Secure Information From Eligible Entities"

Section 676 (b) (3)

The Governor assures the State agency will provide the following:

(a) a description of the service delivery system, for services provided or coordinated with funds made available through grants made under 675 C (a), targeted to low-income individuals and families in communities,

(b) a description of how linkages will be developed to fill identified gaps in the services, through the provision of information, referrals, case management and follow up consultations,

(c) a description of how funds made available through grants made under section 675 C (a), will be coordinated with other public and private resources, and

(d) a description of how the local entity will use the funds to support innovative community and neighborhood-based initiatives related to the purposes of this subtitle, this may include fatherhood initiatives and other initiatives with the goal of strengthening families and encouraging effective parenting.

The Governor so assures.

Assurance 4 - "Nutrition and Emergency Assistance"

Section 676(b) (4)

Governor Mike Huckabee assures that eligible entities in the State will provide, on an emergency basis, for the provision of such supplies and services, nutritious foods, and related services, as may be necessary to counteract conditions of starvation and malnutrition among low-income individuals.

The Governor so assures.

Assurance 5 - "Coordination and Linkages"

Section 676 (b) (5)

Governor Mike Huckabee assures that the State and the eligible entities in the State will coordinate, and establish linkages between, governmental and other social services programs to assure the effective delivery of such services to low-income individuals and to avoid duplication of such services, and a description of how the

State and the eligible entities will coordinate the provision of employment and training activities,

as defined in section 101 of such Act, in the State and in communities with entities providing activities through statewide and local workforce investment systems under the Workforce

Investment Act of 1998.

The Governor so assures.

Assurance 6 - "Coordination Between Anti-Poverty Programs"

Section 676(b) (6)

The Governor assures that the State will ensure coordination between antipoverty programs in each community in the State, and ensure, where appropriate, that Emergency Energy Crisis Intervention Programs under Title XXVI (relating to low-income home energy assistance) are conducted in such community.

The Governor so assures.

Assurance 7 - "Permit and Cooperate With Federal Investigations"

Section 676(b) (7)

The Governor assures that the State Agency will permit and cooperate with federal investigations undertaken in accordance with section 678D concerning the agency handling of funds and will make it a condition of funding that all eligible entities agree in writing to permit and assist in any such investigation of funds committed to them out of the CSBG.

The Governor so assures.

Assurance 8 - "Notice and Opportunity for Hearing by Secretary Prior to Termination of Funding"

Section 676(b) (8)

"Provide assurance that any eligible entity in the State that received funding in the previous fiscal year, through a

Community Services Block Grant made under this subtitle, will not have its funding terminated under this subtitle, or reduced below the proportional share of funding the entity received in the previous fiscal year, unless, after providing notice and an opportunity for a hearing on the record, the State determines that cause exists for such termination or such reduction,

subject to review by the Secretary as provided in section 678 C (b)."

The Governor so assures. State Policies and Procedures allow for such notice, opportunity for public hearing on the record and State determination subject to review by the Secretary.

Assurance 9 - "Program Coordination and Partnerships"

Section 676(b) (9)

"Provide assurance that the State Agency and eligible entities will, to the maximum extent possible, coordinate programs with and form partnerships with other organizations serving low-income residents of the communities and members of the groups served by the State, including religious organizations, charitable groups, and community organizations."

The Governor so assures.

Assurance 10 - "Procedures to Petition for Adequate Board

Representation"

Section 676(b) (10)

"Provide assurance that the State will require each eligible entity in the State to establish procedures under which a low-income individual, community organization, or religious organization, or representative of low-income individuals that considers its organization, or low-income individuals, to be inadequately represented on the board (or other mechanism) of the eligible entity to petition for adequate representation."

The Governor so assures. State Policies and Procedures allow for eligible entities to establish procedures for low-income individuals, community groups, or organizations to petition for adequate board representation.'''

Assurance 11 - "Community Action Plan"

Section 676(b) (11)

"Assurance to secure community action plan from eligible entities."

The Governor assures that, as a condition to receive CSBG

funding, the State will secure a community action plan from each eligible entity in the State (which shall be submitted to the Secretary, at the request of the Secretary, with the State Plan)

that includes a community needs assessment for the community served, which may be coordinated with community-needs assessments conducted for other programs.

Assurance 12 - "Participation in ROMA"

"Assurance to participate in ROMA."

The Governor assures that the State and all eligible entities in the State will, not later than fiscal year 2001, participate in the Results Oriented Management and Accountability System, another performance measure system for which the Secretary facilitated development pursuant to section 678 E (b), or an alternative system for measuring performance and results that meets the requirements of that section, and a description of outcome measures to be used to measure eligible entity performance in promoting self-sufficiency, family stability, and community revitalization.

The Governor so assures.

Assurance 13 - "Implementation of Assurances"

Section 676(b) (13)

"Assurance that the State will provide information in this plan describing how the State will carry out the assurances in the Act."

The Governor so assures.

PLAN FOR CARRYING OUT FEDERAL STATUTORY ASSURANCES

Plan for Compliance with Section 676 (b) (1) (A-C) Use of Funds

Consistent with Federal and State Policies and Procedures, each eligible entity is required, in order to be eligible for CSBG funding, by the seventh month prior to the end of the first fiscal year covered in the agency's two year plan, conduct a community needs assessment on the needs of the low-income persons in their area, and hold a public hearing to provide to the public an opportunity to comment on the proposed use and distribution of funds based on the results of the needs assessment. As a result of the hearing, the board must adopt a Statement of Purposes and Strategy, which indicates the primary poverty problems of the area, which the eligible entity will address each year, and the share of available funds to be allocated to each problem area. This serves as a basis for the service's projects proposed by the local board for funding. The needs assessment may be coordinated with community-needs assessments conducted for other programs.

The State has designated as eligible for funding out of the CSBG grant only those activities listed as eligible for funding in the Act. Activities include those which:

2. secure and retain meaningful employment;

3. attain an adequate education; with particular attention toward improving literacy skills of low-income families;

4. make better use of available income;

5. obtain and maintain adequate housing and a suitable living environment;

6. obtain emergency assistance through loans, grants, or other means to meet immediate and urgent family and individual needs;

7. achieve greater participation in the affairs of the communities involved; including the development of public and private grassroots partnerships with local law enforcement agencies, local housing authorities, private foundations, and other public and private partners to:

(a) document best practices based on successful grassroots intervention in urban areas; to develop methodologies for widespread replication; and

(b) strengthen and improve relationships with local law enforcement agencies, which may include participation in activities such as neighborhood or community policing efforts;

8. address the needs of youth in low-income communities through youth development programs that support the primary role of the family, give priority to the prevention of youth problems and crime, and promote increased community coordination and collaboration in meeting the needs of youth, and support development programs that have demonstrated success in preventing or reducing youth crime; and

9. make more effective use of, and to coordinate with, other programs related to the purposes of this subtitle (including State welfare reform efforts).

The State will not approve an application which does not address a minimum number of designated services called for in Section 676 (b)(1)(A-C) of the Act and no activities are approved which are outside the scope of services called for in that section of the Act. In that way, the requirements of Section 676 (b) (1) (A-C) about use of the funds for provision of allowable community services are met from a planning aspect. The State requires, as a condition of continued funding, that eligible entities provide monthly fiscal reports and quarterly program reports to assure that the programs and expenditures are progressing consistently with the approved plans. Any downward program variances of 20% or more where eligible entities did not meet their plan must be satisfactorily explained. Corrective actions must be supplied where appropriate. In addition to the reports submitted and reviewed, each eligible entity is visited annually for an on-site evaluation of program performance and a compliance monitoring with Federal and State Policies and Procedures regulatory requirements. These are intended to assure that the funds are going to provide the community services to low-income clients as in the approved plan. Spot checks of client records are carried out to verify the documentation provided by the eligible entities, and interviews with randomly selected clients are conducted to verify that services were provided as reported and to see whether clients are satisfied with services received. A satisfaction survey will be completed on each randomly selected client. The program reviews will be conducted, at a minimum, annually as stated earlier, in accordance with section 678 B of the Act.

Training and technical assistance is provided during the course of a year to further enhance the quality of the services and program. The assistance provided by the State is primarily by CSBG staff, but consultant services are utilized from outside the agency when necessary.

A Community Action Agency Peer Review will be conducted on at least six eligible entities annually. The purpose of the Peer Review is to assess the design, performance, efficiency, and effectiveness of the agency's management systems, which are in place to ensure compliance with applicable laws, rules and regulations, to safeguard the agency's assets, to ensure that planned outcomes are achieved, and to project eligible entity vision/values through the organization into its community.

Plan for Compliance with Section 676 (b) (2) Use of Discretionary Funds

No more than 5% of the grant will be spent as a discretionary fund within the State agency to fund activities deemed to be useful to advance the purposes of the Act. In fiscal years 2006-2007, approximately 20% of CSBG funds will be set aside for victims of natural disasters who meet the poverty guidelines. Approximately 40% will be used to provide technical assistance and training needed by eligible entities and organizations which serve the low-income communities, which training and assistance would not otherwise be available to them. The remaining 40% will be used to fund discretionary projects of nonprofit agencies and organizations. The percentages are only estimates of discretionary fund usage. The State's needs will dictate the criteria and guidelines for such projects.

Plan for Compliance with Section 676 (b) (3) Secure Information from Eligible Entities

Eligible entities will provide information to the State containing:

(a) a description of the service delivery system, for services provided or coordinated with the funds made available through grants made under section 675 C(a), targeted to low-income individuals and families;

(b) a description of how linkages will be developed to fill identified gaps in services, through the provision of information, referrals, case management, and follow-up consultations;

(c) a description of how funds made available through grants made under section 675 C(a) will be coordinated with other public and private resources, and

(d) a description of how the local entity will use the funds to support innovative community and neighborhood initiatives related to the purposes of this subtitle, which may include fatherhood initiatives and other initiatives with the goal of strengthening families and encouraging effective parenting.

Plan for Compliance with Section 676 (b) (4) Nutrition and Emergency Assistance

Eligible entities will comply with the federal requirement to provide, on an emergency basis, for the provision of such supplies and services, nutritious foods, and related services, as may be necessary to counteract conditions of starvation and malnutrition among low-income individuals.

Plan for Compliance with Section 676 (b) (5) Coordination and Linkages

The State and eligible entities will coordinate and establish linkages between, governmental and other social services programs to assure the effective delivery of such services to low-income individuals and to avoid duplication of such services; and provide a description of how the State and eligible entities will coordinate the provision of employment and training activities, as defined in section 101 of such Act, in the State and in communities with entities providing activities through statewide and local workforce investment systems under the Workforce Investment Act of 1998.

Plan for Compliance with Section 676 (b) (6) Coordination between Anti-Poverty Programs

Both the CSBG program and the State HEAP program for Emergency Crisis Intervention are located in the same agency of State Government, the Department of Health and Human Services. The Governor and the Director of the Department of Health and Human Services have made it clear to both programs that they support and encourage the coordination of local anti-poverty activities with the crisis intervention program. This has been affected for several years. The eligible entities have utilized the HEAP Program in both assuring appropriate disbursals of crisis funds to eligible persons, and also in supporting weatherization services through this program.

Plan for Compliance with Section 676 (b) (7) Permit and Cooperate with Federal Investigations

The director and staff persons of the State Agency are directed and required to cooperate fully with any federal investigation relative to State use or eligible entity use of CSBG funds. Any additional resources of State Government necessary to assist in such investigations are pledged, and will be provided. Each eligible entity is required as a condition of funding to provide written assurances they will allow and cooperate with any Federal or State investigation relative to the use of CSBG funds.

Plan for Compliance with Section 676 (b) (8) Hearing by Secretary

As outlined in section 678C (b) of the Act, the State will comply with the hearing review requirement when the State determines an eligible entity's designation will be terminated or funds reduced.

Plan for Compliance with Section 676 (b) (9) Program Coordination and Partnerships

The State Agency and eligible entities will, to the maximum extent possible, coordinate programs with and form partnerships with other organizations serving low-income residents of the communities and members of the groups served by the State, including religious organizations, charitable groups, and community organizations. As a condition for funding, eligible entities will describe how they will coordinate with programs.

Plan for Compliance with Section 676 (b) (10) Procedures to Petition for Adequate Board Representation

Each eligible entity will be required to establish procedures for a low-income individual, community organization, or religious organization, or representative of low-income individuals that considers its organization, or low-income individuals, to be inadequately represented on the board (or other mechanism) of the eligible entity to petition for adequate representation.

Plan for Compliance with Section 676 (b) (11) Community Action Plan

The State will comply with the requirement to secure from each eligible entity in the State, as a condition for funding, a community action plan. Each community action plan will include: a community needs assessment for the community served; a description of the service delivery system targeted to low-income individuals and families in the service area; a description of how linkages will be developed to fill identified gaps in services through information, referral, case management if applicable, and follow-up consultation; a description of outcome measures to be used to monitor success in promoting self-sufficiency, family stability, and community revitalization. Community needs assessments may be coordinated with community needs assessments conducted for other programs.

Plan for Compliance with 676 (b) (12) Participation in ROMA

The State and all eligible entities in the State will, not later than fiscal year 2001; participate in the Results Oriented Management and Accountability System, another performance measurement system that meets the requirements of section 678E (b), or an alternative system for measuring performance and results that meets the requirements of that section, and a description of outcome measures to be used to measure eligible entity performance promoting self-sufficiency, family stability, and community revitalization.

The State and eligible entities began implementation of ROMA in fiscal year 1997, and fiscal year 2006 will be the tenth year the State and eligible entities will participate in ROMA.

Plan for Compliance with 676 (b) (13) Implementation of Assurances

This section entitled "Plan for Compliance with Federal Statutory Assurances"; section 676(b) (1-13) describes how the State will carry out the assurances outlined in the Act.

HEARINGS AND PUBLIC REVIEWS

The State will hold one legislative public hearing and five additional statewide public hearings around the State. The public will be offered opportunity to comment on proposed use and distribution of funds for fiscal years 2006-2007.

Copies of the plan are available at the State Library, Department of Health and Human Services, Legislative Council, CAAs, and internet. Notice of the five statewide hearings was provided in a statewide newspaper.

A legal notice was published May 23-29, 2005 in a newspaper with statewide circulation advertising the five statewide Community Services Block Grant Program public hearings. The public inspection and comment period was 30 days. Those who wished to comment could respond orally at any of the hearings, submit written comments through their local Community Action Agency, or submit comments directly to the Office of Community Services.

The five statewide hearings were held as follows:

PUBLIC HEARING SCHEDULE

DATE/TIME	CITY	ADDRESS
*May 31, 2005/10:30 A.M.*	*Forrest City*	*St Francis Courthouse, Quorum Court Room, 313 South Izard Street*
*June 1, 2005/ 2:00 P.M.*	*Hope Center,*	*SWADC Senior Citizens 104 Main Street*
*June 2, 2005/10:00 A.M.*	*Harrison*	*Ozark Opportunities, Inc., 701 East Prospect Street*
*June 2, 2005/10:30 A.M.*	*Warren Community Action*	*Southeast Arkansas* *Corporation, 1208 North Myrtle*
*June 3, 2005/10:30 A.M.*	*Hot Springs Development*	*CSO Head Start Child* *Center, 401 Garden Street*

The State Plan in its proposed form will be available at all sixteen Community Action Agencies and at the State Office for 30 days.

The legislative hearing was in addition to the five statewide public hearings and will be held separately from those hearings. Proof of the legislative hearing, including its date, time and location will be submitted after the hearing.

STATE ADMINISTRATIVE STRUCTURE

The Department of Health and Human Services is the lead agency responsible for carrying out Community Services Block Grant activities in the State of Arkansas. More specifically, the Office of Community Services, within the Division of County Operations of the Department will be responsible for administration of the Community Services Block Grant Program.

The State conducts financial and compliance audits of block grant funds, which the State receives under the CSBG Act. Each audit will cover a one-year period and will be conducted in accordance with standards established by the Comptroller General for the audit of the governmental organizations, programs, activities and functions. Use of the Office of Management and Budget cost and accounting standards will apply. A copy of the audit conducted by the Legislative Audit staff will be made available to the State Legislature 30 days after completion, a copy is provided the Legislative Audit Committee, and a copy will be forwarded to the Secretary. Appropriate books, documents, papers, and records shall be made available to the Secretary and Comptroller General of the United States, or any duly authorized representatives.

CSBG is not audited as a major program under the State's single audit. It is audited by the State's Legislative Audit Division as part of the Department of Health and Human Services' audit. The latest audit for the Department was dated February 20, 2004, and covered the period July 1, 2002 through June 30, 2003.

Grants Process

In order to be eligible for CSBG funding, each eligible entity shall by the seventh month prior to the first fiscal year covered in the agency's two year plan, conduct a public hearing on the needs of the low-income persons in the service area. The needs assessment of the primary poverty problems of the area, including the causes and effects of poverty, shall be updated at this time through citizen's input. Poverty problems to be addressed shall include problems of low-income persons in:

1. securing and retaining meaningful employment;

2. attaining an adequate education;

3. making better use of available income;

4. obtaining and maintaining adequate housing and a suitable living environment;

5. obtaining emergency assistance; including urgently needed health services, nutritional food, and other human services;

6. removing obstacles and solving problems blocking attainment of self-sufficiency;

7. participating in decisions which affect their lives;

8. addressing the needs of youth in low-income communities; and

9. making more effective use of and coordinating with other programs.

As a result of this hearing the board shall adopt a Statement of Purposes and Strategy which will indicate the primary poverty problems the eligible entity will address and the share of available funds to be allocated to each.

This statement (and any subsequent amendments) must be approved by the eligible entity's Board of Directors and will serve as a basis for the projects proposed by the board for CSBG funding. OCS approval is not required for the contents of the Statement of Purposes and Strategy, but an informational copy of this document must be forwarded to OCS upon adoption or amendment by the eligible entity.

No later than ninety days before the end of its two-year grant period, the eligible entity shall submit a funding application to OCS. Applications shall be submitted based on the federal fiscal year.

Distribution of funds - Ninety (90) percent of funds made available to the State will be used to make grants to eligible entities for stated purposes of the Community Services Block Grant program. A total of 35% of funds will be awarded based on poverty in the area and 65% of funds will be awarded based on hold harmless. As stated earlier, prior to receipt of funding by CAAs, each must submit an application (community action plan), which includes a community needs assessment.

Board Representation

The State requires eligible entities to describe in their by-laws the procedure to ensure low-income individuals, community organizations, or religious organizations, or representatives of low-income individuals that consider its organization or low-income individuals, to be inadequately represented on the board (or other mechanism) to petition for adequate representation.

State policy 3200 E 3 states if there is no private nonprofit organization identified or determined to be qualified to serve as an eligible entity, the Governor may solicit application from, and designate a political subdivision to serve as an eligible entity to provide services in the non-served area. The political subdivision shall have a tripartite board or other mechanism to assure decision-making and participation by low-income individuals in the development, planning, implementation, and evaluation of programs. The board shall be constituted so as to assure that no less than 1/3 of the members are representatives of low-income individuals and families in the neighborhoods and that they reside in the neighborhoods served.

Eligible Entity Designation Process

State policy 3200 E entitled, "Establishing Eligible Entity Status", is as below:

If an existing eligible entity terminates its service, the Governor will solicit applications from eligible entities and designate an eligible entity to provide services in the non-served area. The eligible entity shall be:

1. A private nonprofit organization (which may be an eligible entity), that is geographically located in the non-served area, that is capable of providing a broad range of CSBG services designed to eliminate poverty and foster self-sufficiency. Special consideration will be given to qualifying organizations that are providing related services in the non-served area, consistent with the needs identified by a community-needs assessment.

2. A private nonprofit eligible entity that is geographically located in an area contiguous to or within reasonable proximity of the non-served area and that is already providing related services in the non-served area. The nonprofit eligible entity selected shall have its board constituted so as to assure adequate board representation as follows:

a. The private nonprofit eligible entity shall administer the Community Services Block Grant Program through a tripartite board that fully participates in the development, planning, implementation, and evaluation of the program to serve low-income communities.

b. The members of the board shall be selected by the entity.

c. The board shall be composed so as to assure that:

(1) elected public official or their permanent representatives shall comprise one-third of the board;

(2) representatives of low-income persons shall comprise at least one-third of the board; and

(3) representatives of business, industry, labor, religious, law enforcement, education or other major groups and interests in the community shall comprise the remainder of the board.

3. No Qualifying Organizations in or Near Area. If there is no private non-profit organization identified or determined to be qualified to serve as an eligible entity, the Governor may solicit application from, and designate a political subdivision to serve as an eligible entity to provide services in the non-served area. The political subdivision shall have a tripartite board or other mechanism to assure decision-making and participation by low-income individuals in the development, planning, implementation, and evaluation of programs. The board shall be constituted so as to assure that no less than one-third of the members are representatives of low-income individuals and families in the neighborhoods and that they reside in the neighborhoods served.

Monitoring

Before funds will be released to an eligible entity receiving an initial contract using OCS funds, the eligible entity shall submit a statement to OCS certifying that its accounting system meets OCS financial requirements and standard acceptable accounting practices. The accounting system must have internal controls adequate to safeguard their assets, check the accuracy and reliability of accounting data, promote operating efficiency, and encourage compliance with OCS policies. The certification must be furnished by an independent Certified Public Accountant (CPA).

Reporting - As a condition for funding, the eligible entity signs assurances that it will provide monthly financial reports and quarterly progress reports, in the form and at the time the Office of Community Services requires. State policy 4140 M requires that the eligible entity shall provide monthly fiscal reports on the operation of funded project. This policy also states at the end of each quarter of its program year, the eligible entity shall report on the status of the implementation and operation of its work programs. All quarterly reports submitted to OCS subsequent to the last board meeting shall be presented for review and approval by the board. In addition to other safeguards, assurances are signed that the agency will, on an annual basis, conduct a single agency audit in accordance with OMB circular A-133 covering all funds received by the agency. A copy of the report will be provided to the Department of Health and Human Services.

In accordance with section 678, below is a description of monitoring activities:

Eligible entities must provide monthly financial reports documenting expenditure of funds requested. Reports are reviewed by OCS and the Division of Administrative Services staffs to ensure funds requested are consistent with planned expenditures. Payment is made based on the monthly requests.

As part of the eligible entities community action plan (application), a budget is submitted detailing the proposed use of funds. The community action plan (application) containing the proposed budget is reviewed and approved by the Office of Community Services.

The Office of Community Services monitors will conduct, at a minimum an annual on-site program evaluation and compliance review of eligible entities in order to determine whether eligible entities meet the performance goals, administrative standards, financial management requirements, and other requirements of the State.

Official Notification - The Office of Community Services monitor contacts the eligible entity by telephone to establish monitoring dates for the program evaluation or compliance review. Follow-up correspondence is sent to the agency as official notification of the monitoring dates.

Entrance Conference - The entrance conference is held with the executive director or designee(s) to discuss the purpose, process, format, and procedures to be followed during the monitoring visit. Emphasis is placed on the positive nature of the monitoring assessment to be conducted.

Exit Conference - An exit conference is held with the executive director or designee(s) to report findings during the monitoring visit. The executive director or designee(s) is given the opportunity to provide comments and present additional evidence where a finding may be disputed by the agency.

Report to Agency - A monitoring report is forwarded to the agency. All monitoring reports must be reviewed and approved by the agency's Board of Directors.

Grantee Action Plans - When there are findings, the eligible entity will be notified in writing, provided suggested recommendations for improvement, and required to submit a plan detailing the actions it will take to correct monitoring findings. Plans should be submitted within the timeframe specified by OCS. Plans are reviewed by OCS to ensure all findings have been adequately addressed. Where findings are not adequately addressed, OCS will make necessary contacts with the eligible entity until all findings have been appropriately addressed, and will notify the agency when their plan is accepted.

The Program Evaluation - The program evaluation is primarily concerned with the quality of program reporting system and service delivery as indicated by records and client interviews. During the on-site program evaluation, agency records are reviewed in order to support actual services provided by the eligible entity and reported to OCS. Case management records are reviewed to determine agency and client's progress made in reaching the client's established self-sufficiency goals. Monitors verify documentation at the eligible entities sites, and interviews with randomly selected clients are conducted to verify that services were provided as reported and to determine whether clients are satisfied with services received. A satisfaction survey is completed on each randomly selected client interviewed.

Compliance Review - The compliance review is primarily concerned with the review of eligible entity program administration and planning, financial functions, board leadership and development, agency director leadership and other requirements of the State.

During the on-site compliance review, agency records are reviewed in order to determine compliance in specific areas including but not limited to: obligation to provide services in designated area; adequate board representation; board powers, responsibilities and training; composition of board committees; by-laws requirements; public hearings; statement of purposes and strategy, and needs assessment requirement; eligible activities; eligible populations and residency; requirements for funding application; grant award; citizens access; code of conduct; and financial record keeping. During the on-site review, monitors verify records to determine agency compliance with CSBG policies and procedures. Board members and in some instances the Executive Director are interviewed to determine the level of knowledge of board powers, roles and responsibilities, as well as responsibilities of the Executive Director.

Monitoring of newly designated entities - OCS will conduct an on-site review of each newly designated entity immediately after the completion of the first year in which such entity receives funds. Follow-up reviews will be conducted including prompt return visits to eligible entities, and their programs, that fail to meet the goals, standards, and requirements established by the State. And other reviews will be conducted as appropriate, including reviews of entities with programs that have had other Federal, State or local grants (other than CSBG) terminated for cause.

Termination or Reduction of Funding

Section 3200 of the CSBG policies outlines the procedures for termination or reduction of funding. The section is entitled, "Corrective Action, Suspension, Termination and Establishment of Eligible Entity Status". The policy is as follows:

A. Corrective Action: OCS shall require an agency to submit a Quality Improvement Plan (QIP) when OCS determines that an eligible entity has failed to comply with and meet the requirements contained in regulations or published administrative requirements of OCS, has failed to fulfill its funded work program, or has breached the terms of its funding agreement with OCS.

If the OCS Assistant Director determines that an emergency situation exists due to threat of imminent loss or waste of OCS funds and that immediate action is required due to the seriousness of the violation and/or is necessary to protect OCS funds or property:

1. OCS shall notify the agency (by certified mail) of the deficiency to be corrected and may require that the eligible entity develop a Quality Improvement Plan to correct the deficiency within sixty days from date of notice. OCS will establish a reasonable time frame for the eligible entity to correct the deficiency.

2. OCS may immediately suspend the agency from participation pending an opportunity for appeal.

3. OCS may offer training and technical assistance, if appropriate, to help correct the deficiency.

When technical assistance is offered by the State, OCS will prepare and submit to the Secretary a report describing the training and technical assistance offered within 60 days from the date of notification for QIP. If the State determines that such training and technical assistance are not appropriate, OCS will prepare and submit to the Secretary a report stating the reasons for this determination within sixty days from date of notification for QIP.

OCS will review the Quality Improvement Plan submitted by the agency and inform the eligible entity of its approval or disapproval status within 30 days from the date the Quality Improvement Plan is received by OCS.

If the plan is not approved, OCS will notify the eligible entity of disapproval (by certified mail), specify reason the plan was not approved, and give notice of suspension.

B. Suspension: The suspension notification shall include a date beyond which no OCS funds may be expended by the entity, or alternatively, such other restrictions on OCS expenditures as OCS may require. If the eligible entity wishes to appeal this determination, it must submit a written request to the Assistant Director to remove the suspension. This request must be made within twenty days of the date of the suspension notice. The eligible entity may include a request for a meeting with the DCO Director upon which the DCO Director shall schedule such a meeting to be held within ten days of receipt of the request and issue a finding, in writing, within ten days of adjournment of the meeting.

If entity requests review by HHS, no funds determination is final until HHS reviews. If the DCO Director denies the appeal, the eligible entity may appeal to the DHHS Director, in writing within ten days. The DHHS Director shall schedule such an appeal to be held within ten days of receipt of the request and shall issue written findings within ten days of adjournment of the appeal hearing. If the DHHS Director denies the appeal, OCS may initiate termination of status of the agency as an eligible entity.

C. Termination of Funding

1. OCS may initiate procedures to terminate the status as an eligible entity of a Community Action Agency in the following instances:

a. Where an eligible entity has been suspended under 3200 B, following either passage of the twenty days allotted for the eligible entity's appeal or a denial of the appeal by the DHHS Director.

b. As provided in any exclusion or debarment law or rule.

2. The procedures for termination of status as an eligible entity of a subgrantee shall be as follows:

a. OCS shall provide the eligible entity with written notice (by certified mail) of OCS' intent to terminate the status of the eligible entity and the reasons for the termination. The notice shall specify the effective date of termination of status and termination of all OCS funded activities, which date shall be no sooner than sixty days from the time of sending such notice to the eligible entity. The notice shall also provide necessary program instructions, including any restrictions on eligible entity expenditures, pending the effective date of termination of status.

b. The eligible entity may appeal, in writing, to the DCO Director within twenty calendar days following receipt of the notice of OCS' intent to terminate status. This appeal shall address the reasons for termination and, where appropriate, any corrective action taken, or proposed to be taken, by the eligible entity. The appeal may also include a request by the eligible entity that the DCO Director or his/her designee hold a public hearing before making a decision, in which case such a public hearing "on the record" shall be held within twenty days. At this hearing the eligible entity shall have the right to present evidence and argument on all issues contained in the appeal.

c. The DCO Director shall make specific written findings of fact and conclusions of law and enter one of the following decisions:

(1) Reverse the agency decision and remove the notice of intent to terminate.

(2) Reverse the termination, but affirm the specific corrective action that must be taken in order for the agency to maintain its status as an eligible entity. If the eligible entity subsequently fails to take corrective action, OCS may terminate the agency.

(3) Affirm the agency action. The eligible entity may request review by the federal funding agency. If an agency requests a review by the federal funding agency, no determination, other than an emergency action shall be effective until the Federal funding agency affirms or rejects the State's finding of cause. The DHHS Director's decision is the final agency determination.

D. Voluntary Suspension of Status as Eligible Entity

An eligible entity may request and OCS may approve voluntary suspension of the status of the eligible entity for a stated period of time. OCS shall make arrangements it deems necessary to assure the continued provision of services during the period of voluntary suspension. The voluntary status of suspension shall be lifted at the agreed upon time. If upon completion of the period of voluntary suspension, OCS determines that suspension shall continue, normal steps for corrective action prior to suspension shall apply, including the rights of appeal by the eligible entity. The eligible entity may request and OCS may approve the extension of the period of voluntary suspension.

E. Establishing Eligible Entity Status

This subject is specifically addressed in previous section of this plan entitled, "Eligible Entity Designation Process", page 21.

COMMUNITY SERVICES NETWORK DESCRIPTION

Act 345 of 1985 designates the Community Action Agencies to carry out the Community Services Block Grant Program in Arkansas and defines the geographic coverage of each. Together they give full statewide coverage. Below are eligible entities, counties served, budget and clients served for the latest available annual reporting period:

Eligible Entities	Counties
ARVAC	Bob Adkison, Executive Director	Franklin
Arkansas River Valley Area	Logan
Council, Inc.	Perry
Post Office Box 808	Conway
Dardanelle, Arkansas 72834	Yell
Telephone: (479) 229-4861	Johnson
FAX: (479) 229-4863	Pope
Email: arvac@arvacinc.org	Polk
CSBG Allocation: $700,091	Scott
Clients Served: 8,501
BRAD	James Jansen, Executive Director	Clay
Black River Area Development	Lawrence
Corporation	Randolph
1403 Hospital Drive
Pocahontas, Arkansas 72455
Telephone: (870) 892-4547
FAX: (870) 892-0707
Email: jjansen@bradcorp.org
CSBG Allocation: $194,005
Clients Served: 6,913
CADC	Larry Cogburn, Executive Director	Saline
Central Arkansas Development	Hot Spring
Council	Dallas
Post Office Box 580	Montgomery
Benton, Arkansas 72018	Pike
Telephone: (501) 315-1121	Ouachita
FAX: (501) 778-9120	Columbia
Email: hfelty@cadc.cc	Calhoun
Web: www.cadconline.net	Union
LR	Office Number: 603-0909	Clark
LR Address: 5620 West 12^th Street	Pulaski
CSBG Allocation: $2,042,906	Lonoke
Clients Served: 11,271
CAPCA	Phyliss Fry, Executive Director White
Community Action Program for Central	Faulkner
Arkansas, Inc.	Cleburne
707 Robins Way/ STE-118
Conway, Arkansas 72032
Telephone: (501) 329-3891
FAX: (501) 329-8642
Email: phyliss@capcainc.org
Web: www.cap-ca.org
CSBG Allocation: $348,008
Clients Served: 11,271
CRDC	Robert Wilford, Executive Director	Craighead
Crowley's Ridge Development	Greene
Council, Inc.	Jackson
Post Office Box 1497	Poinsett
Jonesboro, Arkansas 72401	Cross
Telephone: (870) 802-7100	Crittenden
FAX: (870) 935-0291	Woodruff
Email: rwilford@crdcnea.com	St. Francis
Web: www.crdcnea.com
CSBG Allocation: $865,693
Clients Served: 32,559
C-SCD	C Weldon Ramey, Executive Director	Crawford
Crawford-Sebastian Community	Sebastian
Development Council, Inc.
Post Office Box 4069
Fort Smith, Arkansas 72914
Telephone: (479) 785-2303
FAX: (479) 785-2341
Email: wramey@cscdccaa.org
Web: www.cscdccaa.org
CSBG Allocation: $335,060
Clients Served: 15,060
CSO	Leon Massey, Executive Director	Garland
Community Services Office, Inc.
Post Office Box 1175
Hot Springs, Arkansas 71901
Telephone: (501) 624-5724
FAX: (501) 624-1645
Email: lemass@csohs.org
CSBG Allocation: $304,562
Clients Served: 5,745
EOAWC	Kathleen Randall, Executive Director Washi	ngton
Economic Opportunity Agency of
Washington County, Inc.
614 East Emma Avenue, Suite M401
Springdale, Arkansas 72764
Telephone: (479) 872-7479
FAX: (479) 872-7482
Email: krandall41@yahoo.com
Web: www.eoawc.org
CSBG Allocation: $310,097
Clients Served: 6,744
MCAEOC	Samuel Scruggs, Executive Director	Mississippi
Mississippi County, Arkansas Economic
Opportunity Commission, Inc.
Post Office Drawer 1289
1400 North Division Street
Blytheville, Arkansas 72316-1289
Telephone: (870) 776-1054
FAX: (870) 776-1875
Email: vdavn@arkansas.net
CSBG Allocation: $300,030
Clients Served: 25,440
M-DCS	Margaret Staub, Executive Director Phi	llips
Mid-Delta Community Services, Inc.	Monroe
Post Office Drawer 745	Prairie
Helena, Arkansas 72342	Lee
Telephone: (870) 338-6406
FAX: (870) 338-3629
Email: mmstaub@cox-internet.com
CSBG Allocation: $329,071
Clients Served: 13,446
NADC	Larry Goodwin, Executive Director	Fulton
Northcentral Arkansas Development	Izard
Council, Inc.	Sharp
Post Office Box 3349	Stone
Batesville, Arkansas 72503 Telephone: (870) 793-5765	Independence
FAX: (870) 793-2167
Email: nadc_larry@yahoo.com
CSBG Allocation: $247,870
Clients Served: 7,094
OHC	Al West, Executive Director	Benton
Office of Human Concern, Inc.	Carroll
Post Office Box 778	Madison
Rogers, Arkansas 72757
Telephone: (479) 636-7301
FAX: (479) 636-7312
Email: alwest@eohc.org
Web: www.ohc.org
CSBG Allocation: $290,909
Clients Served: 4,313
OOI	Roger Ratchford, Executive Director Van B Ozark Opportunities, Inc.	uren Searcy
Post Office Box 1400	Boone
Harrison, Arkansas 72602	Marion
Telephone: (870) 741-9406	Baxter
FAX: (870) 741-0924	Newton
Email: ooi@alltel.net
CSBG Allocation: $459,597
Clients Served: 8,773
PB-JCEOC	Betty Smith, Executive Director	Jefferson
Pine Bluff-Jefferson County Economic	Arkansas
Opportunities Commission, Inc.	Lincoln
Post Office Box 7228	Cleveland
Pine Bluff, Arkansas 71611	Grant
Telephone: (870) 536-0046
FAX: (870) 535-7558
Email: pbjceoc@cei.net
CSBG Allocation: $393,392
Clients Served: 2,731
SEACAC	Larry Henderson, Executive Director	Bradley
Southeast Arkansas Community Action Drew
Corporation	Desha
Post Office Box 312	Ashley
Warren, Arkansas 71671	Chicot
Telephone: (870) 226-2668
FAX: (870) 226-5637
Email: larry.Henderson@ccc-cable.net
CSBG Allocation: $340,864
Clients Served: 8,540
SWADC	Tom Lockard, Executive Director	Little River
Southwest Arkansas Development	Hempstead
Council, Inc.	Miller
3902 Sanderson Lane	Lafayette
Texarkana, Arkansas 71854	Howard
Telephone: (870) 773-5504	Sevier
FAX: (870) 772-2974	Nevada
Email: cirby@cableone.net
CSBG Allocation: $355,528
Clients Served: 21,441

Scope of CSBG Services provided Statewide

CSBG funds will be used in accordance with PL 105-285 676 (b). Eligible entities submitted information describing the programs, services and activities to be conducted in fiscal years 2006-2007-2004.

The general program components to be addressed are self-sufficiency, employment, education, income maintenance, housing, emergency services, nutrition, community participation, health and welfare independence. Eligible entities will provide services and activities under program components to address the needs of clients. Conditions to be addressed are a result of needs assessments conducted by eligible entities. The latest information is for customers served in fiscal year 2004.

Program Components and Services

Self-Sufficiency	Served
EMPLOYMENT
Placed in full time jobs	910
Placed in part time jobs	136
Placed in training or work experience	199
Referred to job training or jobs	4,037
Follow-up on Placements	509
Other	5,791
EDUCATION
Provided early childhood education	17,740
Number of persons provided counseling or tutorial services	1,509
Received college loan or other financial assistance	444
Families assisted to allow students to stay in school	949
Provided Adult Basic Education, GED, college preparation	247
Provided literacy services	3,370
Referrals to educational programs	1,948
Other	66,473
INCOME MAINTENANCE
Attend class in income utilization (Number of persons)	5,821
Received individual income counseling (Number of persons)	1,535
Number of persons assisted in preparing family budget	1,832
Provided consumer education	16,455
Assisted in tax preparation (number of persons)	2,215
Referrals in income counseling	1,303
Referrals to legal services	199
Other	540
HOUSING
Houses repaired	52
Houses weatherized	1,146
Housing referrals	1,874
Assisted in housing loan preparation	818
Other	3,093
EMERGENCY SERVICES
Provided check for utility assistance	70,366
Persons provided food, clothing, or travel assistance	12,834
Emergency lodging provided (number of persons)	27,736
Provided information about available services	47,744
Referrals to emergency services	5,054
Other	21,430
NUTRITION
Received commodities or other foods	93,334
Hot meals provided (congregate, number of persons)	176,545
Hot meals provided (home delivered, number of persons)	276,682
Childcare feeding program (summer, number of persons)	495,829
Childcare feeding program (daycare homes, number of persons)	2,553
Childcare feeding program (centers, number of persons)	155,477
Provide nutrition program referrals	2,409
Provide nutrition training	10,071
Other	115,374
COMMUNITY PARTICIPATION
Placed on community decision making bodies	1,997
Participated in organized crime prevention activities	1,754
Community improvements achieved	164
Participated in organized youth crime prevention activities	2,031
Board and committee meetings (number of persons)	6,937
Speeches outside agency about needs of low-income persons	495
Number of volunteers recruited and retained	18,322
Hours of volunteer service provided	587,814
Hours spent developing and maintaining linkages with area groups	8,241
Other	642
WELFARE INDEPENDENCE
Persons removed from welfare rolls	13
Welfare participants referred to other agencies for assistance	623
Other: referrals to child support offices	318
Other	133,948
HEALTH
Persons provided alcohol/drug abuse services	16,395
Persons assisted in obtaining medical assistance	4,196
Number of persons assisted in obtaining family planning services	2,644
Pregnant youth provided agency services (number of persons)	19
Referrals health services	16,356
Other	157,939
ECONOMIC DEVELOPMENT
Increase income for clients: Number/Average income gain	11
Agency return on investments	1,512
Other	2

(ROMA) IMPLEMENTATION

CSBG funds are used to "support activities that are designed to assist low-income families and individuals, including families and individuals receiving assistance under part A of Title IV of the Social Security Act (42U.S.C. 601 et seq.), homeless families and individuals, migrant or seasonal farm workers, and elderly low-income individuals and families". Following is a description of the system the State and eligible entities use to measure performance and results of the CSBG program.

Eligible entities are mandated to report outcomes for the six national goals. Eligible entities are encouraged to report outcome measures under each appropriate goal for all major programs and activities administered. Reporting on measures is an important component of the broader community action initiative to use results-focused management principles to revitalize and strengthen the community services network.

Case management is one process which may be used by some agencies to assist some clients to reach their established goals and move them toward self-sufficiency. Although outcomes are reported under the measures selected, the range of activities and services provided by the agency to assist the client to achieve outcomes are reported by program component (i.e. education, housing, emergency services, etc.).

Case management activities, if conducted by an eligible entity, are monitored annually as a part of the regular program evaluation of agencies. Statewide training sessions are provided to all CAAs. If there is a need for training and technical assistance during routine monitoring visits, state monitors will provide training or provide needed assistance at the time of monitoring visit.

GOALS AND OUTCOMES

Goal 1: Low-income People Become More Self-sufficient
A.	Number of participants seeking employment who obtain it	1,418
B.	Number of households in which adult members obtain and maintain employment for at least ninety days.	426
C.	Number of participating families moving from substandard housing into stable standard housing, as compared with total number of participating families	173
D.	Number of households which obtain home ownership	405
E.	Number of households which maintain home ownership	175
F.	Number of minority households which obtain home ownership	103
G.	Number of minority households which maintain home ownership	32
H.	Number of people progressing toward literacy and/or GED	3,054
I.	Number of people making progress toward post-secondary degree or vocational training	693
J.	Number of children enrolled in a child development program who demonstrate achievement of age appropriate outcomes	5,925
K.	Other	6,498
Goal 2: The Conditions in Which Low-income People Live are Improved
A.	Number of accessible, living wage jobs created and/ or retained	60
B.	Increase in value of homes as a result of rehabilitation projects	177
C.	Increase in access to community services and resources by low-income people	284
D.	Increase in available housing stock through new construction	6
E.	Increase/maintained the availability and affordability of essential services	163
F.	Other	1,121
Goa	l 3: Low-income People Own a Stake in Their Community

A.	Number of households owning or actively participating in the management of their housing as a result of agency intervention	73
B.	Amount of "community investment" brought into the community by the Network and targeted to low-income people	$4,740,984
C.	Participation of low-income people in advocacy and intervention activities regarding funding levels, distribution policies, oversight, and distribution procedures for programs and funding streams targeted for the low-income community	4,462
D.	Other	3,764
Goal 4: Partnerships Among Providers of Services to Low-income People are Achieved
A.	Number of partnerships established and/or maintained with other public and private entities to mobilize
and leverage resources to provide services to low-income people	1,617
B.	Number of partnerships established and/or maintained with other public and private entities which ensure ethnic, cultural, and other special needs considerations are appropriately included in the delivery service system	344
C.	Number of agencies that achieve and maintain commitments from other service and resource partners
to carry out agency mission	16
D.	Number of agencies that establish and maintain commitment to provide resources to partner organizations that serve agency customers	16
E.	Other	1,867
Goa	l 5: Agencies Increase Their Capacity to Achieve Results

A.	Total Dollars mobilized by the agency	$90,838,060
B.	Total dollars mobilized by the agency as compared with CSBG dollars (Only CSBG Dollars Shown)	$7,818,313
C.	Number of Boards making changes as a result of a periodic organizational assessment	16
D.	Number of families having their situation improved as a result of comprehensive developmental services (case management)	1,611
E.	Increase in community revitalization as a result of program	83
F.	Number of agencies increasing their number of funding sources and increasing the total value of resources available for services to low-income	16
G.	Number of agencies where customers served accurately represents the ethnic diversity of the service territory	16
H.	Number of development contacts as a result of outreach programs	138
I.	Number of special populations showing improvement as a result of programs aimed at the population (Elderly, youth, teen, pregnancy, parent education, health, Hispanic)	41
J.	Number of agencies that achieve and maintain compliance with all applicable federal, state, and local statutes, regulations, and requirements	16
K.	Number of agencies that achieve and maintain a governance process that is inclusive, representative of, and accountable to the community	16
L.	Number of agencies that establish and maintain a process where evaluations are used to improve services	16

M.	Other	1,172
Goal 6: Low-income People, Especially Vulnerable Populations, Achieve Their Potential by Promoting Family and Other Supportative Environments
A.	Number of aged households maintaining an independent living situation	11,135
B.	Number of disabled or medically challenged persons maintaining an independent living situation	1,893
C.	Number of households in crisis whose emergency needs are ameliorated	299,764
D.	Number of participating families moving from homeless or transitional housing into stable, standard housing	51
E.	Number of households in which there has been an increase in children's involvement in extracurricular activities
E.		4,600
F.	Number of high consumption households realizing a reduction in energy burden	37,643
G.	Number of households moving upward one or more levels on at least one dimension of a scale	969
H.	Other: Number of households realizing an increase in food security	144,521
I.	Other: Number of persons whose health has improved since participating in agency services	16,050
J.	Other	141

PLANNED USE OF CSBG FUNDS

Grants to Eligible Entities

The State of Arkansas will not use less than ninety percent of the funds allotted to the State to make grants to private non-profit eligible entities (Community Action Agencies) for the purposes described in 42 USC 9901.

The State has designated as eligible for funding out of CSBG only those activities listed as eligible for funding in the Act. Activities include those which:

1. remove obstacles and solve problems that block the achievement of self sufficiency (including self sufficiency for families and individuals who are attempting to transition off a State program carried out under Part A of Title IV of the Social Security Act);

2. secure and retain meaningful employment;

3. attain an adequate education, with particular attention toward improving literacy skills of low-income families;

4. make better use of available income;

5. obtain and maintain adequate housing and a suitable living environment;

6. obtain emergency assistance through loans, grants, or other means to meet immediate and urgent family and individual needs;

7. achieve greater participation in the affairs of the communities involved, including the development of public and private grassroots partnerships with local law enforcement agencies, local housing authorities, private foundations, and other public and private partners to:

a. document best practices based on successful grassroots intervention in urban areas, to develop methodologies for widespread replication; and

b. strengthen and improve relationships with local law enforcement agencies, which may include participation in activities such as neighborhood or community policing efforts.

9. make more effective use of, and to coordinate with, other programs related to the purposes of the subtitle (including State welfare reform efforts).

State Administration

The Department of Health and Human Services, Division of County Operations, Office of Community Services, will use 5% of the total allocation for administration at the State level.

Discretionary Funds

The remaining 5% will be spent as a discretionary fund within the State agency to fund activities deemed to be useful to advance the purposes of the Act. Approximately 20% of CSBG funds will be set aside for victims of natural disasters who meet the poverty guidelines. Another 40% will be used to provide technical assistance and training needed by eligible entities and organizations, which serve the low-income communities, which training and assistance would not otherwise be available to them. The remaining 40% will be used to fund discretionary projects of nonprofit agencies and organizations. The percentages are only estimates of fund usage. The State's needs will dictate the criteria and guidelines for such projects.

Recapture and Redistribution of Funds

State policy 4140 K states any unobligated funds of an eligible entity exceeding 20% carryover at the end of the program year may be redistributed by OCS to fund activities consistent with the purposes of the CSBG Act.

COORDINATION AND LEVERAGING OF OTHER FUNDING AT STATE LEVEL

The plan calls for the State Agency and eligible entities, to the maximum extent possible, to coordinate programs with and form partnerships with other organizations serving low-income residents of the communities and members of the groups served by the State, including religious organizations, charitable groups, and community organizations. As a condition for funding, CSBG Policy 4140 B 5 requires eligible entities to coordinate and establish linkages between governmental and other social services programs to assure the effective delivery of such services to low-income individuals. Eligible entities will describe in their plans how they will coordinate with other programs.

The Office of Community Services participated in the statewide workgroup to assist in development of the Workforce Investment Act unified State Plan, an eligible entity Executive Director was appointed by the Governor to serve on the Arkansas Workforce Investment Board, and local eligible entities serve on local Workforce Investment Boards.

Attachments

Attachment (i)

Arkansas Community Services Block Grant Policies and Procedures Manual

1000MISSION OF THE OFFICE OF COMMUNITY SERVICES

It is the mission of the Office of Community Services (OCS) to be the lead agency in state government in dealing with the problems of the poor. This agency is responsible for providing technical assistance to local communities and local agencies in providing community services to low-income persons. OCS is responsible for administration of the Community Services Block Grant (CSBG), Emergency Shelter Grants Program (ESGP), Home Energy Assistance Program (HEAP), Weatherization Assistance Program (WAP) and other grant programs designated by state government to be administered by OCS. OCS is also responsible for addressing the needs of the homeless in the state. OCS is charged with informing the Governor, Legislature and state government about the problems of the poor and the overall efforts of the agency and eligible entities to improve the quality of life for these Arkansans.

2000INTRODUCTION

OCS policies and procedures are designed to maintain programmatic and fiscal control over all grants administered by OCS and its eligible entities. These policies and procedures are, in principle, a plan of organization under which the duties are so described as to ensure effective operation of all programs.

The purpose of this manual is to set forth procedures that contribute to sound organizational functioning.

2100Administration of OCS Programs

The OCS of the Division of County Operations (DCO) of the Arkansas Department of Health and Human Services (DHHS) has been designated by the Governor as the agency responsible for administering CSBG, HEAP and WAP. Other Divisions of DHHS provide certain support functions for OCS. OCS negotiates subgrant agreements with local agencies and governments, primarily with local eligible entities, to administer specific OCS program functions.

The relationship between OCS and eligible entities is described in the various subgrant agreements. In general, eligible entity responsibilities include outreach, application intake, eligibility determination, provision of services, and other administrative functions specified in the various subgrant agreements and in this manual. Eligible entities are responsible for effective and efficient program implementation in accord with program requirements.

OCS responsibilities include program planning and coordination, development of policy, procedures and forms, evaluation of program implementation by program monitoring, management of program funds, and other administrative functions specified in the various subgrant agreements and in this manual.

All OCS programs will be coordinated in every way feasible to assure that a comprehensive package of services is offered to low-income persons within the resources available.

2110Applicability of Manual

This manual is organized as follows: General sections apply to all OCS programs except as specified otherwise. The remaining sections contain policies particular to specific OCS programs.

2120Severability

The provisions of these regulations are severable, and if any provision is held unconstitutional or a violation of statute by any court of competent jurisdiction, or shall otherwise cease to be effective, all other provisions of these regulations shall remain in effect.

2130Implementation and Waiver

Each eligible entity shall take all necessary steps, including but not limited to the adoption of amendments to existing by-laws, in order to comply with the requirements of these regulations at the effective date of these regulations. In the event that compliance with any requirement(s) set forth in these regulations would pose a hardship for any eligible entity, that agency may request a waiver. Such a request shall be in writing and shall state with particularity the requirement for which the waiver is sought, the length of delay of implementation requested and the reasons for the request. The Assistant Director of Community Services or his/her designee shall grant or deny the request in writing.

2140Maintenance of the Manual

Material in this manual will be reviewed periodically and will be updated as necessary by OCS consistent with the requirements of the State Administrative Procedures Act.

Eligible entities will be provided copies of modifications to these materials in a format determined by OCS. Eligible entities are responsible for filing issuance letters, in numerical order, in the front of this manual.

3100.Citizen Access and Privacy

A. The following documents must be made available for public inspection:

1. Funding applications submitted to OCS for funds;

2. The eligible entity's most recent Articles of Incorporation, by-laws, board membership list, needs assessment and Statement of Purposes and Strategy;

3. All contracts (including funding, consulting, goods and services) pertaining to OCS funds;

4. All final reports (including audits) made to OCS on projects funded with OCS funds;

5. Minutes of the meetings of the Board of Directors;

6. Position titles, salary ranges and job descriptions for all compensated positions.

B. These documents may be made available to the public at the eligible entity's office at a reasonable time scheduled by the eligible entity and as agreed to by the person requesting the information. If the requesting person wishes copies of the document and it is feasible to provide such copies, the eligible entity may request a reasonable fee, not to exceed actual costs; for the copying of such documents.

C. Privacy: State and federal regulations shall apply for privacy of personal data held by the eligible entity relative to OCS-supported personnel, programs and activities.

3110Personnel Policies and Procedures

A.Published Personnel Policies: To provide for the consistent and equitable treatment of employees and to insure that all such employees fully understand the terms and conditions of their employment, each eligible entity shall issue published personnel policies which include:

1. Access to a salary schedule listing the salary or salary range with steps for each position or group of positions.

2. Access to a job description for each agency position.

3. Agency rules governing vacations, sick leave, periodic employer evaluations, periodic salary increases and other conditions of employment.

4. A description of any benefit plans with details on agency and employee contributions to those plans.

5. Agency rules governing promotion, separation, resolution of grievances and regulations of employee conduct.

6. Code of Conduct for employees as set forth in 3120.

7. A hiring process for the position of the eligible entity's Executive Director, including at a minimum the recruitment and screening process, criteria for selection, annual evaluation, board role in the selection process and other such relevant procedures.

8. Procedures and policies to meet the requirements set forth in 3110 C.

B.Standards Governing the Selection of Personnel for Employment in OCS-Funded Programs.

1. Each eligible entity shall employ persons who can perform their duties with competence and integrity.

Every consideration must be given to providing employment opportunity to low-income persons who have been denied the benefit of formal education. Each eligible entity shall make certain that its recruiting procedures afford adequate opportunity for the hiring and advancement of people to be served by community action programs. The attainment of a high level of education may be important to performance in certain positions. However, formal educational or licensing qualifications, unless required by state or local law, shall not be made a requirement for employment or advancement in either professional or non-professional capacities if a candidate has the ability to perform the duties of the position.

2. When the eligible entity Executive Director position is vacated or about to be vacated, the eligible entity board shall notify OCS as soon as possible.

3. No eligible entity shall discriminate in its hiring and personnel procedures against any applicant for employment or any employee because of race, creed, or color, national origin, religion, handicap, sex or age.

C.Personnel Practices

1. The salary for each position shall be in accord with prevailing practices for comparable positions in local public and/or private non-profit agencies. The eligible entity shall maintain records of comparability studies that support such salary determination and make them available to OCS on request.

2. An eligible entity may provide for periodic salary increases that are in accord with prevailing practice in comparable local public and/or private non-profit agencies.

3. An eligible entity may participate in existing benefit plans or establish new plans which are in accord with prevailing practice in comparable local public and/or private non-profit agencies. Grant funds may not be used to provide benefits in excess of the State of Arkansas employee benefit plan or an approved alternate plan.

4. Travel reimbursement policies must be included in the eligible entity's published personnel policies. These policies must not exceed the State of Arkansas travel reimbursement polices or approved alternate plan.

5. Employee grievances shall be given prompt and fair consideration. Eligible entities shall make provision for review of personnel actions by the governing body in any case in which there is a claim of unfair treatment or of dismissal without cause in compliance with the procedures set forth in the eligible entity personnel policies.

6. Eligible entities shall enforce the following provisions relating to outside employment of their employees:

a. Such employment shall not interfere with the efficient performance of the employee's duties with the eligible entity.

b. Such employment shall not involve the performance of duties which the employee shall perform as part of his/her employment with the eligible entity.

c. Such employment shall not occur during the employee's regular or assigned working hours in the eligible entity agency unless the employee, during such employment, is on either annual leave, compensatory leave or leave without pay.

D.Maintenance of Personnel Records. Eligible entities shall keep the following records on all employees.

1. Appropriate records on all personnel actions including hiring and discharge, status as exempt or non-exempt, promotion and discipline.

2. Records on the salary and any salary increases received by each full time employee.

3. Time and attendance records for all employees signed by both the employee and the employee's supervisor.

3120Code of Conduct

The eligible entity shall observe the following minimum standards governing the conduct of board members, employees and their immediate families.

For the purpose of these requirements, immediate family members shall be defined as follows: Husband, Wife, Father, Father-in-law, Mother, Mother-in-law, Brother, Brother-in-law, Sister, Sister-in-law, Son, Son-in-law, Daughter and Daughter-in-law.

A. Board members, employees and members of their immediate families shall not solicit or accept gifts, gratuities, favors, or anything of monetary value from:

1. Any contractor, potential contractors or subcontractors of the eligible entity.

2. Any person applying for or receiving benefits or services through or from the eligible entity.

3. Any person in a position to benefit otherwise from the activities of the eligible entity.

B. No board member, employee or member of his/her immediate family shall have a financial interest in a contract of the eligible entity (except an employee's contract of employment) which is supported by OCS funds. This shall not be construed to deny services provided by the eligible entity to a person otherwise eligible to receive such services.

C. A board member or employee of an eligible entity agency shall not participate in any matter involving OCS funds or other funds administered by OCS which affects, to his/her knowledge, the financial interest of:

1. Such board member or employee, or his/her immediate family (this prohibition shall not apply to matters of reimbursement of board members in accordance with these regulations or to an employee's contract of employment);

2. His/her business partner(s) or a business organization with which he/she is associated;

3. Any person or organization with whom he/she is negotiating or has any arrangement concerning prospective employment.

D. No person may serve on the eligible entity board that is:

1. An employee of the eligible entity agency, Arkansas DHHS, the U. S. Department of Health and Human Services, or the U. S. Department of Energy.

E. No person shall be employed while he/she or a member of his/her immediate family serves on a board or committee of an eligible entity if that board or committee has authority to order personnel actions affecting his/her job.

F. No person shall hold a position of employment over which a member of his/her immediate family exercises supervisory authority.

G. Board members and employees of the eligible entity agency shall refrain from conduct which gives the appearance of violating any of the above standards.

H. Failure of an agency to comply with these policies shall be cause for suspension.

3130Affirmative Action

An equal opportunity and affirmative action work plan which must establish objectives to indicate compliance with federal and state laws relative to nondiscrimination in the use of OCS funds must be on file and available for review.

A. At a minimum, objectives and activities must include: Procedures for addressing any prohibited discrimination and resolving any complaints and grievances pertaining to such discrimination; means for addressing the underutilization of any protected class in employment or receipt of OCS program benefits; and methods to insure that no person is denied program access on account of handicap in accordance with federal and state law.

B. The following information must be updated: Name of the Equal Opportunity Officer and a description of his/her duties; a description of duties of the Equal Opportunity Governing Board (if any) and a list of its members; a numerical analysis of the composition of the agency's work force by position type and the Governing Board membership on the basis of sector represented.

The agency may not appoint as its Equal Opportunity Officer the Executive Director. The eligible entity shall have this information available for review by OCS Monitors or available upon request by OCS.

3135Americans with Disabilities Act

The Americans with Disabilities Act (ADA) of 1990 prohibits discrimination against any individual with a disability in regard to employment, benefits, and services. As an integral part of its overall affirmative action plan, the eligible entities must comply with the guidelines and requirements specified in the ADA.

In accordance with ADA, the eligible entity will not discriminate against any individual with a disability and shall ensure compliance in the following areas:

A. The eligible entity will not discriminate against any employee, client, or applicant for employment because of physical or mental disability.

B. The eligible entity further agrees to comply with the rules and regulations promulgated by OCS and specified in the Americans with Disabilities Act of 1990.

C. The eligible entity agrees to post in conspicuous places relating to clients, employees and applicants for employment, any notices approved by the Director of U.S. Department of Labor or other federal funding agencies.

D. The eligible entity must notify OCS of any complaints received regarding non-compliance with ADA.

3140Prohibited Political Activities

A. The Coats Human Services Reauthorization Act of 1998

specifically makes eligible entities subject to certain provisions of the federal Hatch Act. Unless superseded by federal statute, guidelines, directives, or regulations, the following is intended to provide guidance to eligible entities as to appropriate standards of conduct relative to political activities, as well as to the use of OCS funds for political purposes.

1. Eligible entities must administer programs in a politically nonpartisan manner. The use of OCS funds, the provision of services and the assignment of personnel must not result in the identification of the program with any partisan political activity which is designed to further any election or defeat of a candidate for public or party office. In addition, the eligible entity may not use OCS funds, the provision of services, or the assignment of personnel in connection with transporting voters or potential voters to the polls.

2. Anti-poverty programs often include activities which may become the subject of political controversy. Eligible entities may, of course, undertake activities dealing with issues related to their basic program responsibilities, such as organizing and advocating for the needs of low-income persons. In carrying out their basic mission and goals, eligible entities may actively engage in campaigns connected with constitutional amendments, referenda, municipal ordinances, law reform and lawful attempts to influence government officials to respond to the grievances of the poor. Eligible entities need not avoid such activities merely because partisan officials or candidates for public office may take or have taken positions with respect to the issue. Agency officials acting in their official capacities must, however, deal with questions which have become a subject of political controversy on their merits and not because they are supported or opposed by a particular party or candidate.

3. Except as set forth in these requirements, employees of eligible entity agencies are free to engage in various kinds of political activities during their off-duty hours and in their private capacities. A broad range of participation in elections is permitted. These restrictions apply to the use of OCS funds, the provisions of services, and the assignment of agency personnel in a manner which identifies any OCS-funded programs with partisan political activity, nonpartisan activity associated with a candidate or contending faction or group in an election for public or party office, voter registration and the transportation of voters to the polls. These restrictions are, in a broad sense, designed to prohibit the use of OCS funds for certain purposes. They apply to all OCS-funded personnel. Insofar as the individual employee is concerned, however, these restrictions deal only with what he or she does as an employee.

4. The following restrictions apply to all employees, volunteers and board members:

a. Must not use their official position, authority or influence with the agency for the purpose of interfering with or affecting the result of an election or a nomination for a party or public office.

b. Must not directly or indirectly coerce, attempt to coerce, command or advise an employee or any other person who is subject to these restrictions to pay, lend or contribute personal services to a party, committee, organizations, agency or person for political purposes.

c. Must not use OCS funds for any political purpose or to influence any election for public or party office.

d. Must not permit the use of equipment or premises purchased or leased with OCS funds for any political purpose or to influence outcome of any election for public or party office. This restriction applies only to facilities when under the control of the eligible entity.

e. Must not discriminate, or threaten or promise discrimination, against or in favor of any employee or beneficiary in the program, or any potential employee or beneficiary, because of his/her political affiliations or beliefs, or require any applicant, employee or beneficiary to disclose his/her political affiliation.

f. Must not offer any person employment, promotion or benefits under the program as a reward for the support or defeat of any political party or candidate for public or party office, or threaten or create disadvantage in employment or deprivation of benefits as a penalty for such support, except that a person may be deprived of employment or subject to lesser penalties for engaging in activities which are forbidden by this subsection.

g. May not, while carrying out the programs of their agencies, engage in voter registration activity or in transporting voters or prospective voters to the polls. (Board members are not included in this restriction.) This restriction applies to the use of OCS funds, facilities or equipment purchased with OCS funds, as well as to the provision of OCS services, and the assignment of OCS-funded personnel. All persons may participate in voter registration during their off-duty hours, so long as they avoid identification of such off-duty activities with the eligible entity.

h. An eligible entity may properly conduct a citizenship education program which includes, as part of the curriculum, information about the mechanics and function of voter registration. Such a program may be valuable in educating the poor as to the legitimate and constructive roles they as citizens may play in local community life and in the American democratic process.

i. Candidates' meetings, even if all rival candidates for one or more public offices appear, shall not be sponsored or conducted with OCS funds or facilities. This restriction on the use of OCS funds does not, however, limit the rights of employees, volunteers or board members to participate in candidates' meetings, subject to these restrictions.

3150Bonding and Liability Insurance

A. The eligible entity must, as a condition for the receipt of OCS funds, secure fidelity bond coverage for appropriate eligible entity officials. Coverage must be secured for each person authorized to sign or countersign checks or to transport, maintain custody of, or disburse sizable amounts of cash (such as for payrolls) in the minimum amount equal to ten percent of the total funds awarded to be disbursed.

B. Prior to its initial agreement with OCS for funding, each eligible entity shall submit assurance that this condition has been met. This assurance shall take the form of a letter from a bonding company or agent stating the type of bond, amount and period of coverage, positions covered, and the annual cost of the bond that has been obtained. OCS must be notified by the eligible entity within thirty days of any changes in bonding coverage.

3160Travel Reimbursement

A. Travel costs will be reimbursed at actual cost not to exceed the current rate paid by the State of Arkansas to its employees.

B. The eligible entity cannot charge travel costs in excess of the maximums outlined in state agency regulations except in an alternative travel reimbursement plan approved by OCS prior to implementation by the eligible entity.

C. Receipts must be obtained for all travel expenses except meals. Travel forms showing destination and reason for the trip must be approved by the director before reimbursement for mileage.

D. The travel day shall commence at 6:00 a.m., include breakfast, lunch, dinner and one night's lodging and shall end the following morning at 6:00 a.m.

E. Before an employee can claim reimbursement for meals and lodging, an "official station" must be established by the Executive Director. Reimbursement cannot be claimed for meals and lodging within the city or town designated as the traveler's "official station". The city or town where meals and lodging were purchased must be listed on the travel form. When privately owned vehicles are used for authorized travel, the eligible entity will assume no responsibility for any maintenance, operational costs, accidents or fines incurred by the owner of the vehicle.

F. The following are not reimbursable expenses: entertaining, tips, flowers, valet service, laundry, cleaning or other similar services.

G. When traveling by air on official business, the traveler should use less than "first class" accommodations when available.

H. All claims for travel by agency employees must be made out by the traveler and payment will be made only to the traveler. One employee may not include in his travel expense statement the expenses of another employee traveling in his company.

I. Claims made out in the name of a hotel or claimant other than the traveler will not be approved for payment.

J. Expenses for rental of space, decorations, entertainment or other arrangements in connection with banquets held solely for the benefit of employees are not reimbursable.

K. For out-of-state travel, reimbursement shall be the lesser of air fare according to H above or the current state mileage reimbursement rate when a private car is used.

3170Procurement

A.Procurement Procedures. The eligible entity shall establish written procurement procedures which provide for, at a minimum, the following:

1. Proposed procurement actions shall follow a procedure to assure that unnecessary or duplicative items are not purchased. Where appropriate, an analysis shall be made of lease and purchase alternatives to determine which would be the most economically practical procurement.

2. Solicitations for goods and services shall be based on a clear and accurate description of the technical requirements for the material, product or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a "brand name or equal" description may be used as a means to define the performance or other salient requirements of a procurement, and when so used the specific features of the named brand which must be met by bidders/offerers shall be clearly specified.

3. The type of procuring instruments used, e.g., fixed price contracts, cost reimbursable contracts, purchase orders, incentive contracts, shall be determined by the procuring party but must be appropriate for the particular procurement and for promoting the best interest of the grant project or program involved. The "cost-plus-a-percentage of construction costs" method of contracting shall not be used.

4. Contracts shall be only with responsible contractors who possess the ability to perform successfully under the terms and conditions of a proposed procurement.

5. All procurement transactions shall be conducted in a manner to provide to the maximum extent practical, open and free competition.

a. Purchases up to $5,000.00 may be made without competitive bids. However, competition should be used to the maximum extent practicable.

b. Purchases that exceed $5,000.00 and up to $25,000.00 shall require at least three informal bids. These may be either verbal or written. The records should indicate these bids and how they were obtained.

c. Purchases over $25,000.00 shall be made only after receiving competitive sealed bids in response to advertised requests.

d. Written justification must be in the file if other than the lowest bid is accepted.

e. Splitting purchases to avoid competitive bids will not be allowed.

f. Notice inviting bids shall be given not less than five (5) calendar days nor more than thirty (30) calendar days preceding the date for the opening of bids by publishing such notice at least one (1) time in at least one (1) newspaper having general circulation in the state, but in all instances, adequate notice shall be given. The notice shall include a general description of the commodities or services to be procured and shall state where invitations for bid may be obtained. The notice shall also state the date, time, and place of bid opening.

g. Bids shall be opened publicly in the presence of one (1) or more witnesses at the time and place designated in the invitation for bids. Each bid, together with the name of the bidder, shall be recorded and open to public inspection.

6. Solicitations shall clearly set forth all requirements that the bidder/offerer must fulfill in order for the bid/offer to be evaluated. Awards shall be made to the responsible bidder/offerer whose bid/offer in response to the solicitation is most advantageous to the eligible entity, price and other factors considered. Factors such as discounts, transportation costs, and taxes may be considered in determining the lowest bid. Any and all bids/offers may be rejected when it is in the eligible entities interest to do so.

Eligible entities may not place unreasonable requirements on firms in order to qualify to do business or unnecessary experience and bonding requirements.

7. The eligible entity must make some form of price or cost analysis in connection with every procurement action with a total cost of $500.00 or more. Price analysis may be accomplished in various ways, including the comparison of price quotations, market prices and similar indicators together with discounts. Cost analysis is the review and evaluation of each element of cost proposed by the offerer to determine reasonableness, allocability and allowability.

8. Where an eligible entity proposes to enter into a sole-source contract, or a contract where only one bid or proposal is received, such contract shall be subject to prior approval by OCS. All contracts, where possible, must be free and open to competition.

9. Eligible entities shall maintain records sufficient to detail the significant history of procurement. These records shall include, but are not necessarily limited to, information pertinent to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection and the basis for the cost or price.

10. A system of contract administration shall be maintained to ensure contractor conformance with terms, conditions, and specifications of the contract and to ensure adequate and timely follow-up of all purchases.

B.Contracts for Procurement. All contracts for procurement of property and/or services shall be in writing and shall provide appropriate remedies to the eligible entity in case of breach of the contractor.

C.Minority Procurement. Where possible, eligible entities shall make every effort to contract with minority businesses.

3180Financial Policies and Procedures Manual

A.Financial Procedures Manual. All eligible entities are required to maintain an updated Financial Procedures Manual which establishes procedures to meet each fiscal standard as set forth in these requirements. This manual will set forth the procedures for the authorization of purchases, approval of obligations, preparation of vouchers, the signing of checks, the recording of financial data in books or record, inventory control and, in general, the safeguarding of assets and records. The completed manual (and any amendments thereto) must be approved by the eligible entity's Board of Directors and an informational copy submitted to OCS.

B.Standards for Eligible Entity Financial Management Systems. As a condition for receipt of OCS funds, the eligible entity must have a financial management system that meets the following standards:

1. Accurate, current and complete disclosure of OCS programs so that funds can be traced from receipt to actual delivery of services to low-income persons.

2. Records that identify adequately the source and application of funds for OCS-sponsored programs. The records shall contain information pertaining to awards, authorizations, obligation, unobligated balances, assets, outlays and income.

3. Effective control over and accountability for all funds, property and other assets. Agencies shall adequately safeguard all such assets and shall assure that they are used solely for authorized purposes.

4. Comparison of actual outlays with budget amounts for each grant or other agreement. Financial information should be related to performance data.

5. Procedures for determining the reasonableness, allowability and allocability of costs in accordance with the provisions of the applicable cost principles and the terms of the contract.

6. Accounting records that are supported by source documentation.

7. Audit to determine, at a minimum, the fiscal integrity of financial transactions and reports, and the compliance with laws, regulations, and administrative requirements. The eligible entity will schedule and complete such audits annually.

8. A systematic method to assure timely and appropriate resolution of audit findings and recommendations.

C.Property Management.

1.Real Property. No real property may be purchased in whole or in part with OCS funds unless specifically approved by OCS in writing.

2.Property Disposition: When property purchased with OCS funds is no longer needed for the approved project, the eligible entity shall request from OCS disposition instructions or permission to use that property in other programs consistent with OCS purposes. This provision applies to tangible personal property having a useful life of more than one year and an acquisition cost of $1,000.00 or more per unit.

3.Inventory Procedures:

a. The eligible entity shall maintain an inventory listing of all property (with a unit cost of $500.00 or more) purchased with OCS funds. This listing shall include the date of purchase, inventory number, cost, portion of OCS funds used to purchase the property, if not fully paid for by OCS funds, procurement procedures used for purchase, location of property, and the OCS contract/program for which the property was purchased. This listing shall be kept current at all times.

b. All property (with a unit cost of $500.00 or more) shall be labeled with the inventory number assigned to it by the inventory listing required below.

c. This inventory listing need not be submitted to OCS but must be made available on request.

d. A comprehensive inventory to assure inventory listing accuracy must be conducted and recorded at least every two years.

D.Cost Principles. Each eligible entity shall adhere to the Cost Principles set forth in the U. S. Office of Management and Budget (OMB) Circular A-110 and A-122 ("Cost Principles for NonProfit Organizations") (OMB Circular A-133) in the use of OCS funds. All OCS funds shall be maintained in a bank account separate from any other funds an agency might possess. However, this will be waived if the agency can demonstrate that their system provides for program identification of funds. OCS bank statements will be reconciled to the general ledger and checkbook monthly. All checks written on OCS bank accounts will require two signatures, one of which will be the Executive Director or designee.

1. Salaries and wages: Regular full-time, part-time, and extra help employees must be supported by time sheets.

2. Fringe benefits: The agency's proportion of the amounts necessary to contribute the agency's share to match the deductions from the salaries of employees for social security and other approved benefits. The maximum amount allowed in this category shall not exceed the current amount allowed for fringe benefits by the State of Arkansas to its employees.

3. Professional Fees: Expenses for contractual agreements entered into by the eligible entity with an individual, partnership, corporation or anyone other than an employee of the respective eligible entity to provide a particular document, report, speech, or study must be supported by itemized invoice authorized by the agency director.

4. Travel: Actual costs of the agency employee's travel, subsistence, meals, lodging, and transportation while traveling on official business and actual cost of travel expense for representatives of agency boards, subject to travel reimbursement provisions of 3160.

5. Space Costs and Rentals, Operating Expense: Postage, equipment, surety and performance bonds, insurance premiums, association dues and memberships, contractual services, newspaper, court cost, and equipment not capitalized must be approved by the Executive Director.

6. Lease and Purchase of Equipment: Lease or purchase of vehicles, office equipment and furniture and expenditures from this category must have the written approval of the OCS Assistant Director. Items are considered to be equipment which has a unit cost of $500.00 or more and a life of two years or more. Each agency must maintain an inventory of fixed assets which can be reconciled to the accounting records. The approval should be maintained in the property records for audit purposes.

E. Prohibition on Use of OCS Funds for Lobbying Activities. No OCS funds of a contract or grant recipient may be used to pay the salary or expenses of any staff member or agent acting for such recipients to engage in activity designed to influence legislation or appropriations pending before the U. S. Congress or the Arkansas Legislature.

F.Retention and Disposition of Records

1. Financial records, supporting documents, statistical records, and all other records pertinent to an OCS contract are covered by these requirements.

2. The retention period for each year's records starts from the end date of the eligible entity's program year.

3. Records shall be retained for a minimum of three years. If any litigation, claim or audit has not been fully resolved before the expiration of the three year period, all relevant records shall be retained until one year after resolution.

4. When records and materials are to be discarded, they will be destroyed by burning or shredding. These methods of destruction will maintain confidentiality by insuring that none of the confidential information can be obtained by unauthorized individuals.

Records, such as data forms, policy issuances, etc., which do not contain client names or information which is traceable to a client, may be discarded as the eligible entity deems best.

G.Access to Records

Eligible entities shall provide OCS and/or its authorized representative access to all books, records, documents and compilations of data relating to OCS programs.

H.Certification of Accounting System.

1. Before funds will be released to an eligible entity receiving an initial contract using OCS funds, the eligible entity must submit a statement to OCS certifying that its accounting system meets OCS financial requirements and standard acceptable accounting practices. The accounting system must have internal controls adequate to safeguard their assets, check the accuracy and data, promote operating efficiency and encourage compliance with OCS policies. The certification shall be furnished by an independent Certified Public Accountant (CPA).

2. Within three months after the effective date of an initial contract, an eligible entity must have its accounting system surveyed and evaluated by an independent CPA. If the independent CPA's findings show significant departure from these policies, OCS shall take steps to have the eligible entity correct the deficient practices prior to suspension or termination.

3. Although accounting system certifications are usually required only for the initial OCS contract with an eligible entity, if the submitted annual audit or finance reports indicate system deficiencies, OCS may require a new certification from an ongoing contract agency.

3200Corrective Action, Suspension, Termination and Establishment of Eligible Entity Status.

A.Corrective Action: OCS shall require an agency to submit a Quality Improvement Plan (QIP) when OCS determines that an eligible entity has failed to comply with and meet the requirements contained in regulations or published administrative requirements of OCS, has failed to fulfill its funded work program, or has breached the terms of its funding agreement with OCS.

1) OCS shall notify the agency (by certified mail) of the deficiency to be corrected and may require that the eligible entity develop a Quality Improvement Plan to correct the deficiency within sixty days from date of notice. OCS will establish a reasonable time frame for the eligible entity to correct the deficiency. 2) OCS may immediately suspend the agency from participation pending an opportunity for appeal. 3) OCS may offer training and technical assistance, if appropriate, to help correct the deficiency.

When technical assistance is offered by the State, OCS will prepare and submit to the Secretary a report describing the training and technical assistance offered within 60 days from the date of notification for QIP. If the state determines that such training and technical assistance are not appropriate, OCS will prepare and submit to the Secretary a report stating the reasons for this determination within sixty days from date of notification for QIP.

If the plan is not approved, OCS will notify the eligible entity of disapproval (by certified mail), specify reason the plan was not approved, and give notice of suspension.

B.Suspension: The suspension notification shall include a date beyond which no OCS funds may be expended by the entity, or alternatively, such other restrictions on OCS expenditures as OCS may require. If the eligible entity wishes to appeal this determination, it must submit a written request to the Assistant Director to remove the suspension. This request must be made within twenty days of the date of the suspension notice. The eligible entity may include a request for a meeting with the DCO Director upon which the DCO Director shall schedule such a meeting to be held within ten days of receipt of the request and issue a finding, in writing, within ten days of adjournment of the meeting.

C.Termination.

1. OCS may initiate procedures to terminate the status as an eligible entity of a Community Action Agency in the following instances:

a. Where an eligible entity has been suspended under 3200 B., following either passage of the twenty days allotted for the eligible entity's appeal or a denial of the appeal by the DHHS Director.

b. As provided in any exclusion or debarment law or rule.

2. The procedures for termination of status as an eligible entity of a subgrantee shall be as follows:

a. OCS shall provide the eligible entity with written notice (by certified mail) of OCS's intent to terminate the status of the eligible entity and the reasons for this termination. The notice shall specify the effective date of termination of status and termination of all OCS funded activities, which date shall be no sooner than sixty days from the time of sending such notice to the eligible entity. The notice shall also provide necessary program instructions, including any restrictions on eligible entity expenditures, pending the effective date of termination of status.

b. The eligible entity may appeal, in writing, to the DCO Director within twenty calendar days following receipt of the notice of OCS's intent to terminate status. This appeal shall address the reasons for termination and, where appropriate, any corrective action taken, or proposed to be taken, by the eligible entity. The appeal may also include a request by the eligible entity that the DCO Director or his/her designee hold a public hearing before making a decision, in which case such a public hearing "on the record" shall be held within twenty days. At this hearing the eligible entity shall have the right to present evidence and argument on all issues contained in the appeal.

c. The DCO Director shall make specific written findings of fact and conclusions of law and enter one of the following decisions:

(1) Reverse the agency decision and remove the notice of intent to terminate.

(2) Reverse the termination but affirm the specific corrective action that must be taken in order for the agency to maintain its status as an eligible entity. If the eligible entity subsequently fails to take such corrective action, OCS may terminate the agency.

(3) Affirm the agency action. The eligible entity may request review by the federal funding agency. If an agency requests a review by the federal funding agency, no determination, other than an emergency action shall be effective until the federal funding agency affirms or rejects the state's finding of cause. The DHHS Director's decision is the final agency determination.

D.Voluntary Suspension of Status as Eligible Entity

An eligible entity may request and OCS may approve voluntary suspension of the status of the eligible entity for a stated period of time. OCS shall make arrangements it deems necessary to assure the continued provision of services during the period of voluntary suspension. The voluntary status of suspension shall be lifted at the agreed upon time. If upon completion of the period of voluntary suspension, OCS determines that suspension shall continue, normal steps for corrective action prior to suspension shall apply, including the rights of appeal by the eligible entity. The eligible entity may request and OCS may approve an extension of the period of voluntary suspension.

E.Establishing Eligible Entity Status

1. A private nonprofit organization (which may be an eligible entity), that is geographically located in the unserved area, that is capable of providing a broad range of CSBG services designed to eliminate poverty and foster self-sufficiency. Special consideration will be given to qualifying organizations that are providing related services in the unserved area, consistent with the needs identified by a community-needs assessment.

2. A private nonprofit eligible entity that is geographically located in an area contiguous to or within reasonable proximity of the unserved area and that is already providing related services in the unserved area. The nonprofit eligible entity selected shall have its board constituted so as to assure adequate board representation as follows:

a. The private nonprofit eligible entities shall administer the Community Services Block Grant Program through a tripartite board that fully participates in the development, planning, implementation, and evaluation of the program to serve low-income communities.

b. The members of the board shall be selected by the entity.

c. The board shall be composed so as to assure that (1) elected public officials or their permanent representatives shall comprise one-third of the board. (2) representatives of low-income persons shall comprise at least one-third of the board. (3) Representatives of business, industry, labor, religious, law enforcement, education or other major groups and interests in the community shall comprise the remainder of the board.

3. No Qualifying Organizations in or Near Area:

If there is no private nonprofit organization identified or determined to be qualified to serve as an eligible entity, the Governor may solicit application from, and designate a political subdivision to serve as an eligible entity to provide services in the unserved area. The political subdivision shall have a tripartite board or other mechanism to assure decision making and participation by low-income individuals in the development, planning, implementation, and evaluation of programs. The board shall be constituted so as to assure that no less than 1/3 of the members are representatives of low-income individuals and families in the neighborhoods and that they reside in the neighborhoods served.

3210Abuse or Misuse of Funds

Any evidence of suspected criminal activity related to OCS funds or programs by an eligible entity or any of its staff or board members shall be referred to appropriate authorities for possible prosecution.

3220Single Agency Audit

A.Annual Audit.

1. Each eligible entity shall arrange for an annual audit to confirm that the financial statements present fairly and accurately the financial position of the eligible entity, that the eligible entity is complying with applicable OCS requirements and with general and special contract conditions, and that appropriate financial and administrative procedures and controls have been installed, are operating effectively, and are consistent with the eligible entity's Financial Procedures Manual. The audit shall cover the eligible entity's prior audit year in total and shall be submitted to OCS no later than 120 days after the eligible entity's program year ends.

2. Eligible entities are required to conduct a single agency audit in accordance with OMB Circular A-133.

3. Each eligible entity shall enter into a written agreement with an auditor for this purpose specifically stating the scope of the audit, that OCS regulations will be applied as the basis of the audit, the auditor's responsibility, the date by which the audit will be completed, and the fee to be paid by the eligible entity.

4. If an audit report does not meet the standards of the Single Agency Audit Act Amendments of 1996, the eligible entity will receive notice as to what further action, if any is necessary, to meet these requirements. The cost of an audit that does not meet these requirements may be disallowed as a charge against OCS funds.

5. On the basis of resultant findings and conclusions, OCS will determine whether any of the costs or expenditures incurred shall be disallowed as charges against OCS funds. In the event of disallowance, OCS may seek recovery of sums by appropriate means. OCS may also impose additional requirements to assure that conditions which gave rise to the disallowance have been corrected and are not likely to recur.

B.Audit Resolution

1. The eligible entity shall respond in writing to all findings, recommendations, observations, and questioned costs in its annual audit reports when requested to do so by OCS. The response shall be submitted to OCS within thirty calendar days from the date OCS notifies the eligible entity of its findings and recommendations or the stated time period requested by OCS.

2. In the response, the eligible entity may take exceptions to particular findings and recommendations. The rationale for such exceptions should be clearly set out in the response. The response should point out corrections already made and state what action is proposed and the estimated completion date of such action. Although the eligible entities need not send OCS all documentation supporting corrections unless requested to do so, documentation of actions taken is very important and must be available for review during later audits.

3. OCS will consider the response and any additional requested information in determining whether specific expenditures of OCS funds will be disallowed. If any are disallowed, OCS will send the eligible entity written notice of the determination.

4. Any appeal of disallowed expenditures shall be submitted in writing within thirty days of the notice of disallowance and shall contain a clear statement of the issue(s) which the eligible entity wishes to have considered. The eligible entity may include with the appeal statements any supporting facts or arguments which the eligible entity feels should be considered. OCS shall offer the subgrantee an informal hearing conducted by the OCS Assistant Director or his/her designee. The eligible entity is allowed legal counsel during the course of this appeal. The decision on the appeal shall be made in writing within thirty days of the hearing and be final.

Arkansas Statutes Section 5-713 provides subgrantees the right to appeal this decision to the Circuit Court of any County in which the eligible entity is located or does business or to the Circuit Court of Pulaski County. This request must be filed within thirty days of receipt of the appeal decision.

5. In the absence of an appeal, disallowances become final thirty days after the notice provided for in B.3. All final disallowances shall be satisfied within ninety days of the date on which notification of the disallowance was made through cash payments to OCS unless the eligible entity has received written notice allowing an alternative means of notification. Failure by the eligible entity to satisfy a final disallowance or take corrective action to remedy deficiencies in its accounting system and internal controls after audit may result in corrective action, suspension, termination of status as an eligible entity or other remedial action. In addition, OCS reserves the right to bring suit or take other appropriate legal action to recover the amounts in question.

C.Selection of an Auditor and Auditor Responsibilities

1. The services of an independent Certified Public Accountant shall be secured.

2. An eligible entity receiving an initial OCS contract shall, within thirty days following the contract starting date, supply OCS with the name of the auditor or auditing organization which it has selected. OCS will notify the eligible entity in writing within thirty days if the selection is not acceptable, along with the reason(s).

3. The auditor approved to conduct the preliminary audit survey may also conduct the annual audit. Once an auditor has been selected and approved, it is not necessary to re-nominate the auditor in subsequent years. However, when an eligible entity changes its auditor or when OCS notifies the eligible entity in writing that its present auditor is unacceptable and why, re-nomination must take place and approval must again be obtained from OCS.

4. The eligible entity shall furnish the auditor with copies of the OCS approved work program and budget, all official OCS contracts, and all applicable OCS requirements.

5. The auditor selected by the eligible entity is responsible for conducting a preliminary audit survey and/or annual audit in accordance with OCS requirements. The audit survey will be directed toward an evaluation of the adequacy of the eligible entity's accounting system and internal controls. The survey should determine whether sufficient internal controls have been established to safeguard assets, check the accuracy and reliability of accounting data, promote operating efficiency and encourage compliance with prescribed management policies and any additional fiscal responsibilities and accounting requirement established by OCS. The report should include an evaluation of the accounting system and internal controls and make recommendations for improvements.

6. The auditor must submit one copy of all completed audit reports to OCS concurrently with his/her submission to the eligible entity.

3230Closeout Reports

Within 45 days after the completion date of each grant administered by OCS, each eligible entity shall submit a financial closeout report and other reports, as required, by the terms and conditions of the award.

The closeout report shall consist of the following:

A. Funds carryover from the previous grant year.

B. Actual funds received for the respective grant year.

C. Cumulative interest earned on the program in which the report is intended.

D. Actual expenditures on costs incurred and paid within the program year.

4000COMMUNITY SERVICES BLOCK GRANT

Purpose and Scope

Following passage of the federal Omnibus Budget Reconciliation Act of 1981, which established the Community Services Block Grant (CSBG), the Governor designated the Office of Community Services (OCS) in the Division of County Operations (DCO) in the Department of Health and Human Services (DHHS) to administer the CSBG program in Arkansas. Act 345 of 1985 designates the same agency to administer the CSBG program. Community Action Agencies (CAAs) located throughout the state receives CSBG funds from OCS to carry out the purposes of the Act.

In order to meet the requirements of the Act and to encourage the efficient and effective use and management of these funds, OCS is issuing these regulations which are applicable to CAAs and other eligible entities.

4100Designation of Community Action Agencies

Act 477 of 1977, as amended by Act 345 of 1985, designates the Community Action Agencies of the state (which are eligible CSBG grantees) and their service areas.

As required by federal law, OCS has established reasonable program and fiscal requirements which a CAA must meet to receive (CSBG) funds from the state.

A.Purposes of a Community Action Agency. An agency designated as a Community Action Agency has the following purposes:

1. Community Action Agencies are private non-profit recognized 501 (c)(3) organizations providing to low-income persons in the state human services such as aging, health, transportation, nutrition, housing, developmental child care, and other related activities. An agency designated as a Community Action Agency has the responsibility of carrying out the purposes of the Community Services Block Grant in the counties its area encompasses.

2. At all reasonable opportunities, the CAA shall provide substantive comment on projects proposed to be operated by the State of Arkansas within its designated area(s) which are to meet the needs of low-income persons and counties.

B.Areas to be served.

1. Act 345 of 1985 specifies the counties to be included in each Community Action Agency's service area. The CAA shall carry out CSBG programs funded by OCS only in these counties, unless specifically approved to do otherwise by OCS. The CAA shall assure access to its programs for all low-income persons in its designated areas.

2. Changes of service areas may be effected only as described in Act 345 of 1985.

3. The OCS shall develop formulas for equitable distribution of CSBG funds to the various service areas, taking into account existing levels of services, the share of the state's low-income persons living in the area and other considerations the OCS deems appropriate.

4120Requirements for a CAA or Other Eligible Entity Board ofDirectors

A.Composition of the Board. The board shall consist of at least fifteen and not more than thirty-nine members, except in the case of an agency whose designated service area has a population of over 250,000 persons, in which case the board size may be not more than fifty-one.

1. Elected public officials or their permanent representatives shall comprise one-third of the board.

2. Representatives of low-income persons shall comprise at least one-third of the board.

3. Representatives of business, industry, labor, religious, law enforcement, welfare, education, and other major groups or interests in the community shall comprise the remainder of the board.

B.Public Officials.

1. For each designated eligible entity, all elected public officials in the service area of the entity shall be afforded equitable opportunity to serve or be represented on the Board of Directors.

2. In the event there are not enough elected public officials available and willing to fill positions on the board, appointed public officials may be selected. Both the elected and the appointed public officials selected to serve on the board shall have either general governmental responsibilities or responsibilities which require them to be involved with poverty-related matters. The selected public official may choose one permanent representative to serve on the board full-time in his/her stead. These representatives need not be public officials themselves, but they shall have full authority to act for the elected (or appointed) official on the board. In a case where the selected representative is not a public official, he/she shall meet the limitation on Board service requirement described in section 4120 F. If the public officials, both elected and appointed, who are willing to serve do not comprise one-third of the board, then those unfilled seats must remain vacant. (The selection of public officials to serve on the board must reasonably reflect the geographic distribution of the low-income population served by the entity.)

C.Representatives of Low-income Persons. Representatives of low-income persons shall be chosen in accordance with democratic selection procedures adequate to assure they represent the low-income persons in the geographic area served by the entity. Representatives of low-income persons may be selected either to represent a specific area, group or neighborhood served by the entity. Among the selection procedures which may be used, either separately or in combination, are the following:

1. Nominations and elections, either within the neighborhoods or within the community as a whole.

2. Selection at a meeting or conference of low-income persons such that the date, time and place of such a meeting or conference have been adequately publicized.

3. Selection on a small area basis (such as a neighborhood or town) of representatives who in turn select members for the eligible entity board.

4. The eligible entity board may recognize a group(s) or organization(s) composed primarily of low-income persons and representing the interests of the low-income population, whose membership may select one or more representatives to the eligible entity board.

Persons at or below one hundred twenty-five percent of the poverty line shall be permitted to vote in these selection processes. An eligible entity may request a waiver from this one hundred twenty-five percent of poverty line eligibility in order to establish residency or other criteria as a basis for eligibility. The eligible entity shall make the request in writing to the Assistant Director of the Office of Community Services including specific justification.

D.Representatives of Organizations. Organizations shall be selected in such a manner as to assure the board will benefit from broad community involvement. Once an organization is selected and indicates its agreement to be represented, it shall choose the person to represent it on the board.

E.Residency Requirement. Each member of the board selected to represent a specific geographic area within the community must reside in the area he/she represents.

F.Limitations on Board Service. No board member may serve more than ten years at any one community action agency. Public officials or their representatives, serve at the pleasure of the official or officials selecting them and only as long as the public official is currently holding office. A representative of a public official may not serve more than ten years even if the public official represented continues to hold office; in such cases, the public official may choose to serve directly or name a new representative.

G. The board of a political subdivision shall be constituted so as to assure that no less than 1/3 of the members are representatives of low-income persons.

4130Board Responsibility

Board members of a CAA or other eligible entity must recognize that it is they, rather than the staff of the agency to whom the CSBG award is made. The board is responsible to see the funds go to provide the services needed by the low-income persons of their area and that the funds are spent for the purposes stated. Board members may be responsible as individuals where they negligently or knowingly allow the misuse or abuse of CSBG funds. Annual training shall be conducted in order to ensure board members are knowledgeable of their legal and fiduciary responsibilities. The board is responsible for an orientation process for new members.

A.Board Responsibilities. The governing board of an eligible entity must carry out the following responsibilities:

1. To hire, fire and evaluate the performance of the Executive Director of the entity. (Evaluations must be conducted annually.)

2. To determine major personnel, organization, fiscal and program policies.

3. To determine and approve overall program goals and priorities for the entity, including provisions for evaluating programs against performance.

4. To make final approval of all programs, applications, proposals, budgets and amendments.

5. To enforce compliance with all contract and grant requirements.

6. To oversee the extent and the quality of the participation of the poor in the programs of the entity.

7. To determine rules and procedures for the governing board.

8. To select the officers and the executive committee, if any, of the governing board.

9. To develop short and long range strategic plans for the agency.

B.By-Law Requirements. The by-laws of the eligible entity shall include the following:

1. The total number of seats on the board and the allotment of seats to public officials, representatives of low-income individuals and representatives of organizations.

2. Procedures for selecting board members as follows:

a. A description of the selection process for members who are public officials or their representatives.

b. A plan for selecting representatives of low-income person, ensuring that all areas of the low-income community will be represented in proportion to their low-income population. This plan shall include procedures and safeguards to limit voting to persons 16 years of age and older, with one vote per person.

c. A plan for selecting representatives of organizations, indicating the criteria for such selection. Representatives will be allocated among business and industry, labor, religious, welfare, law enforcement, educational and other major groups or interests in the community.

3. A description of any performance standards (such as attendance, etc.) for members of the board, the violation of which may be grounds for removal. This shall include standards of conduct for board members.

4. A description of specific procedures to be followed in the case of removal of representatives of low-income persons, organizations, and public officials.

5. Procedures for selecting new board members in the case of a vacancy on the board. For the purpose of this paragraph, there is a vacancy on the board when a member has been notified of his/her official removal by the board for cause; when a member notifies the board of his/her resignation; when a member dies; when a member who is a public official leaves office or is removed by the selecting local official; or, in the case of public officials, when the selected official leaves office.

a. With respect to representatives of low-income persons, the by-laws shall include one of two methods for filling a vacancy: the selection procedure under 4120 C may be repeated, or alternatively, the remaining low-income representatives may select a replacement to serve for the remainder of the term. In the latter case, the person selected shall, to the maximum extent possible, represent the same constituency as the original representative.

b. When the seat of a representative of an organization is vacant, the board shall ask the organization to name another representative to serve the remainder of the term. In the event the organization chooses not to name a new representative, the board shall choose another organization to name a new representative.

c. When the seat of a public official is vacant, the board shall request the selecting public official to name a replacement.

6. Procedures for low-income individuals, community organizations, or religious organizations, or representatives of low-income individuals that considers its organization or low-income individuals, to be inadequately represented on the board (or other mechanism) to petition for adequate representation.

7. The quorum for a meeting of the board shall be at least 50 percent of the non-vacant seats on the board.

8. The board shall meet at least quarterly. The meetings shall be scheduled for the convenience of its members and of the general public. The eligible entity shall provide notice (in writing) of any meeting and an agenda to all members at least seven days in advance. The eligible entity shall provide public notice of its meeting at least five days in advance. The eligible entity shall provide OCS copies of meeting minutes and notices of Board meetings no later than 30 days after each meeting.

9. All meetings of the eligible entity boards shall be open to the public. Executive sessions may be held where consistent with the rules for openness of meetings in state regulations. The board shall keep written minutes for each meeting in accordance with Robert's Rules of Order. These minutes shall be signed by the Board Secretary and maintained in an orderly manner at the principle office of the eligible entity. All minutes of board meetings will be made available upon request to OCS or its designee. Minutes will also be made available for public review during normal business hours.

10. The board may appoint an executive committee composed of some of its members to transact business for the full board. Each sector of the board must be fairly represented. The executive committee shall provide a written report and obtain board ratification for its actions at the next meeting of the full board. The quorum for the executive committee may not be less than fifty percent of the non-vacant seats on the committee.

11. The board may establish any committees it considers necessary for carrying out its business. Each sector of the board must be fairly represented on such committees to the maximum extent feasible.

12. Voting by proxy is not permitted at meetings of the board or of its committees. This prohibition applies to all members of the board.

13. The by-laws shall designate the procedures, including persons responsible, for convening board meetings.

14. Alternates may be provided for only under the following conditions:

a. Selection and service of alternates must be described in the by-laws of the agency.

b. Alternates must be elected/selected in the same manner, at the same time and by the same body who have elected/selected the representative.

c. Representatives of public officials may not select alternates to substitute for them.

d. All alternates must be listed on the membership roster of the Board of Directors.

e. No alternate may be counted toward a quorum or cast a vote when his/her primary board member is attending the meeting.

f. No alternate may hold an office of the board.

4140Planning, Funding Application, and Reporting Requirements

A.Local Community Services Plans.

1. In order to be eligible for CSBG funding, each eligible entity shall by the seventh month prior to the end of their second CSBG fiscal year of a two year program, conduct a public hearing on the needs of low-income persons in the service area. The needs assessment of the primary poverty problems of the area, including the causes and effects of poverty, shall be updated at this time through citizen input. Poverty problems to be addressed shall include: problems of low-income persons in:

1) securing and retaining meaningful employment; 2) attaining an adequate education; 3) making better use of available income; 4) obtaining and maintaining adequate housing and a suitable living environment; 5) obtaining emergency assistance; including urgently needed health services, nutritional food, and other human services; 6) removing obstacles and solving problems blocking attainment of self-sufficiency; and 7) participating in decisions which affect their lives. 8) to address the needs of youth in low-income communities; and 9) to make more effective use of and coordinate with other programs. As a result of this hearing the board shall adopt a Statement of Purposes and Strategy which will indicate the primary poverty problems the eligible entity will address and the share of available funds to be allocated to each.

B.CSBG Purposes and Eligible Activities. The following eligible entity program activities are eligible for funding by OCS with Community Services Block Grant funds. In the funding application, each eligible entity shall demonstrate that its goals and objectives address, at a minimum, (1), (2) g, (3), (4), (5) and (6) of the eligible activities set forth below. In addition, the State OCS may set out goals and objectives within which the eligible entities shall develop their priorities.

1. To provide a range of services and activities having a measurable and potentially major impact on causes of poverty in the community or those areas of the community where poverty is a particularly acute problem; this may include advocacy, organizing and development of self-help institutions as means of improving community conditions.

2. To provide activities designed to assist low-income participants including the elderly poor:

a. to secure and retaining meaningful employment;

b. to attain an adequate educational level;

c. to make better use of available income;

d. to obtain and maintain adequate housing and a suitable living environment;

e. to obtain emergency assistance through loans or grants to meet immediate and urgent individual and family needs, including the need for health services, nutritious food, housing and employment related assistance;

f. to remove obstacles and solve problems which block the attainment of self-sufficiency; and g. to achieve greater participation in the affairs of the community.

3. To make more effective use of other programs related to meeting the needs of low-income persons and communities.

4. To provide on an emergency basis for the provisions of such supplies and services, nutritious foods and related services as may be necessary to counteract conditions of starvation and malnutrition among the poor.

5. To coordinate and establish linkages between governmental and other social services programs to assure the effective delivery of such services to low-income individuals.

6. To encourage the use of entities in the private sector of the community in efforts to ameliorate poverty in the community.

C.Eligible Population

1. Eligible entities shall use the most current poverty line definition as promulgated by the Director of the Office of Management and Budget and published in the U. S. Federal Register to establish eligibility of individuals to receive service provided with CSBG funds.

2. No person on the basis of race, sex, religion, national origin, age or handicap shall be excluded from participation in, or be denied the benefits of, or otherwise be subjected to discrimination in any eligible entity program funded with CSBG funds.

D.Funding Application

1. OCS shall notify the eligible entity of the amount of funds available for application in accordance with the Arkansas CSBG State Plan (as amended), any special conditions for funding, and the documents necessary for submission prior to the beginning of its program year. Those documents that are to be submitted upon request or updated and submitted:

a. any changes in the Articles of Incorporation, By-laws, and Personnel Policies and Procedures,

b. Financial Procedures,

c. Administrative Procedures,

d. evidence of current bond and Equal Opportunity and Affirmative Action

Plan,

e. current listing of eligible entity board members by sector and by county, and f. inventory list.

The eligible entity shall be notified by letter which of these documents are required to be submitted to OCS, in whole or in part, along with any other documents that are necessary. The OCS Monitor may submit required documents as part of the on-site monitoring process.

2. The eligible entity Board of Directors shall review, amend as appropriate, and approve the following agency documents: Articles of Incorporation, By-Laws, Personnel Policies and Procedures, Financial Procedures, and administrative procedures. Upon approval, the Board Chairperson must attest to the date each document was approved.

3. No later than ninety days before the end of its federal fiscal year, the eligible entity shall submit a funding application in conformance with any special requirements contained in the notification from OCS. This application shall include the following:

a. A work program with objectives and activities for the eligible entity to accomplish in each project area which the eligible entity will operate during its CSBG program year. These objectives shall state in verifiable terms the results to be achieved in each quarter of the program year.

b. A budget which specifies the CSBG program costs to accomplish each of the projects.

c. A comprehensive administrative budget for the eligible entity which indicates how CSBG funds and funds from other funding sources finance the administration of the eligible entity.

d. These work programs and budgets shall be submitted in a form prescribed by OCS.

E.Use of CSBG Funds for Agency Administration. Each eligible entity may use CSBG funds for agency administration of CSBG-related activities of an eligible entity provided the costs do not exceed 10 percent of the agency's total budget consisting of all funds received which are CSBG-related.

For purposes of this paragraph, administrative services are considered to be management and operating functions which span several or all agency functions. With the approval of the Assistant Director of OCS, a different definition for administrative services may be used by an eligible entity for purposes of this paragraph.

All requests to use CSBG funds for administration must include full justification. Additionally, where application is made to utilize CSBG funds for administrative support of programs funded from other sources than CSBG, the agency shall:

1. submit the total eligible entity budget,

2. list the amount and sources of funds in (1) above,

3. indicate the amount of funds from each source in (2) above which are actually to be used for administrative costs, and

4. document efforts by the agency to obtain the use of funds for administrative costs from each source in (2) above.

F.Match. There is no match requirement.

G.Accrued Leave. Funds must be reserved for accrued leave monthly. The amount reserved shall be based on salaries and fringe costs in effect that month. As leave is used, funds will be released from the reserve on a first in first out basis.

H.Transfer of Funds. An eligible entity may transfer up to ten percent between line items of costs within the same cost center/program activity. (An agency may not transfer funds between cost centers/program activity without a formal request to, and approval by, OCS. Additionally, a subsequent budget revision incorporating the change is required.) The Assistant Director of OCS may waive these prior approval requirements in the case of natural disaster or health threatening emergency.

I.Separate Firms. Any eligible entity whose bookkeeping/accounting is being performed by an independent accounting firm may not use the same firm for auditing purposes.

J.Carryover Funds. Eligible entities will be allowed to reprogram up to 20% CSBG funds from their annual CSBG budget. Eligible entities are encouraged to conduct periodic internal evaluations of programs, compare actual expenditures with budgets and develop appropriate programs in order to ensure a pattern of reprogramming funds is not a practice.

K.Recapture and Redistribution of Funds. Any unobligated funds of an eligible entity exceeding 20% carryover at the end of the program year may be redistributed by OCS to fund activities consistent with the purposes of the CSBG Act.

L.Grant Award. If OCS determines that the eligible entity has met the requirements for CSBG funding, OCS shall provide the eligible entity with a CSBG funding grant containing such terms and conditions as OCS may require, which shall accord with the officially adopted Arkansas CSBG State Plan, the promulgated CSBG regulations, and other state and federal laws or regulations which may be applicable. The State Agency shall notify the eligible entities of the amount of federal funds available to them ninety days prior to the application date, subject to that information being made available by the federal funding source.

When the CSBG section of OCS has completed review of the application work program and budgets, the Assistant Director of OCS will determine whether the application should be approved as submitted, or he may place special conditions on the grant, or he may require changes. He will notify the applicant agency of his decision in writing. The state agency shall reply to the eligible entity within forty five days of receipt of a completed application. If no response is sent by the state agency within forty five days, the application shall be deemed to be complete and acceptable as submitted. The state agency shall issue a Notice of Grant Award within fifteen days after a work program has been approved, subject to receipt of federal funds.

In the event the eligible entity does not accept any stated conditions or does not agree to any required changes, the eligible entity may appeal, in writing, to the Assistant Director of OCS within ten days, stating the reasons why the stated conditions or changes should not be required. If the Assistant Director does not agree with the appeal, he will so notify the eligible entity, in writing, within ten days. At this point, the eligible entity, within ten days, may request the Assistant Director of OCS to seek the advice of an appeals body to be appointed by him. The body shall be appointed and directed to meet within ten days of receipt of the request by the OCS Assistant Director. The appeals body shall consist of two eligible entity directors and a staff member of the Division of County Operations not previously involved in the decision. The appeals body shall review the application file, discuss, deliberate and issue a written recommendation to the OCS Assistant Director within five days of adjournment. If the appeals body cannot reach a consensus, dissenting members may submit separate written recommendations within the same five day period. After reviewing the advice of the appeals body, the Assistant Director of OCS will make his finding to the eligible entity, in writing, within ten days. At this point, within ten days, the eligible entity may appeal, in writing, to the DCO Director. The DCO Director shall notify the eligible entity of his finding within ten days. The eligible entity may appeal his finding, within ten days, to the Director of DHHS. The Director of DHHS shall respond within ten days. The findings of the Director of DHHS shall be final.

M.Reporting. The eligible entity shall provide a monthly fiscal report on the operation of funded projects. This report is to be submitted to OCS not later than ten days after the end of each month of the funding period. Reports will meet this requirement if postmarked by the tenth (10th) of the month. Additionally, at the end of each quarter of its program year, the eligible entity shall report on the status of the implementation and operation of its work programs. This report is to be submitted to be received in OCS not later than thirty calendar days after the end of the period covered by the report and is required for the release of funds for the second month of each program quarter. All reports submitted to OCS subsequent to the last board meeting shall be presented for review and approval by the board.

Failure to comply with this requirement by a timely and accurate reporting of financial and program activity in the format requested may result in corrective action prior to suspension of funding for the respective project. Where an eligible entity has a history of failure to comply with reporting requirements, OCS may suspend all funding to the eligible entity which fails to submit any required report in a timely and complete manner or fails to respond to any other reasonable request by OCS regarding their program. Any financial or program report at least thirty days in arrears may serve as the basis for the initiation of corrective action proceeding prior to suspension of all funding.

Monitoring and audit reports shall be submitted to the Board for review and approval.

N.Amendments. The eligible entity may propose amendments to its work program and budget at any time for approval by OCS. Amendments are required to delete, add or change work program objectives.

O.Administrative Procedures. Eligible entity will maintain an

Administrative Procedures Manual which outlines management and operating procedures.

P.Failure of agency to provide services as agreed upon in the agency approved work program. When an agency submits its quarterly program reports, it shall adequately explain any variances of twenty percent or more from the approved work program in any activity or objective when the goal was not met. The agency shall include any necessary corrective actions the agency intends to make to satisfy the work program activity or objective where the goal was not met. The Assistant Director of OCS shall determine the adequacy of the explanation and of the intended corrective actions. If they are not adequate, he will inform the agency of any steps necessary to meet the requirements of the grant and set a time for their accomplishment. If the agency does not agree to the corrective actions or fails to meet them in the stated time, the Assistant Director of OCS may withhold any further funding to the agency until such time as the conditions are met, or he may institute corrective action proceedings prior to suspension of agency funds. If no notification is sent by the OCS within thirty working days after receipt of quarterly reports, the report shall be deemed to be accepted as submitted.

Attachment (ii)

Percentage Share of Arkansas Persons Living in Poverty By County And By CAAs Area

Percentage share of Arkansas' Persons Living in Poverty by Community Action agency Area*

ARVAC
Conway	0.7832%
Franklin	0.6467%
Johnson	0.8852%
Logan	0.8259%
Perry	0.3419%
Polk	0.8825%
Pope	1.9476%
Scott	0.4789%
Yell	0.7747%
TOTAL	7.5666%
BRAD
Clay	0.7385%
Lawrence	0.7689%
Randolph	0.6635%
TOTAL	2.1709%
CADC
Calhoun	0.2259%
Clark	0.9899%
Columbia	1.2543%
Dallas	0.4031%
Hot Spring	1.0207%
Lonoke	1.3332%
Montgomery	0.3769%
Ouachita	1.3504%
Pike	0.4521%
Pulaski	11.4453%
Saline	1.4304%
Union	2.0305%
TOTAL	22.3127%

CRDC
Craighead	2.9739%
Crittenden	3.0812%
Cross	0.9298%
Greene	1.1873%
Jackson	0.7091%
Poinsett	1.2968%
St. Francis	1.7814%
Woodruff	0.5673%
TOTAL	12.5268%

C-SCDC
Crawford	1.8213%
Sebastian	3.7423%
TOTAL	5.5636%

CSO
Garland	3.0514%
EOAWC
Washington	5.3680%
MCAEOC
Mississippi	2.8540%
M-DCS
Lee	0.7845%
Monroe	0.6727%
Phillips	2.0747%
Prairie	0.3531%
TOTAL	3.8850%

CAPCA
Cleburne	0.7557%
Faulkner	2.5094%
"White	2.1590%
TOTAL	5.4241%

NADC
Fulton	0.4543%
Independence	1.0467%
Izard	0.5231%
Sharp	0.7472%
Stone	0.5197%
TOTAL	3.2910%

OHC
Benton	3.6915%
Carroll	0.9415%
Madison	0.6353%
TOTAL	5.2683%

OOI
Baxter	1.0185%
Boone	1.1970%
Marion	0.5899%
Newton	0.4213%
Searcy	0.4736%
Van Buren	0.5941%
TOTAL	4.2944%

SEACAC
Ashley	1.0156%
Bradley	0.7815%
Chicot	0.9310%
Desha	1.0637%
Drew	0.8031%
TOTAL	4.5949%

SWADC
Hempstead	1.1446%
Howard	0.5248%
Lafayette	0.4739%
Little River	0.5042%
Miller	1.8461%
Nevada	0.5462%
Sevier	0.7245%
TOTAL	5.7643%

PB-JCEOC
Arkansas	0.8808%
Cleveland	0.3150%
Grant	0.4017%
Jefferson	3.9349%
Lincoln	0.5316%
TOTAL	6.0640%

*Poverty rates for 2006-2007 based on 2000 Census of Population and

Housing. Summary File 3, Demographic Profiles, Census 2000.

Prepared by: Census State Data Center, Institute for Economic Advancement,

UALR.

Documentation of legislative hearing will be furnished when we receive documentation from Legislative Committee.

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PUBLIC HEARING SCHEDULE

DATE/TIME	CITY	*ADDRESS* St Francis Courthouse,
May 31, 2005/10:30 A.M.	Forrest City	Quorum Court Room 313 South Izard Street
June 1, 2005/ 2:00 P.M.	Hope	SWADC Senior Citizens Center 104 Main Street
June 2, 2005/10:00 A.M.	Harrison	Ozark Opportunities, Inc. 701 Prospect Street
June 2, 2005/10:30 A.M.	Warren	Southeast Arkansas Community Action Corporation 1208 North Myrtle
June 3,2005/ 10:30 A.M.	Hot Springs	CSO Head Start Child Development Center 401 Garden Street

PLAN AVAILABILITY

The State Plan in its proposed form will be available at all sixteen Community Action Agencies and at the State Office from May 31 through July 3, 2005.

Attachment (iv)

State Law Designating CAAs Act 345 Of 1985

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Attachment (v)

Signed Statutory Assurances

And

Certifications

2006-2007

STATES

COMMUNITY SERVICES BLOCK GRANT STATUTORY ASSURANCES-AS AMENDED BY P. L. 105-285 COATS HUMAN SERVICES REAUTHORIZATION ACT OF 1998.

I As part of the annual or biannual application and plan

I required by Section 676 of the Community Services Block

Grant Act, as amended, (42 U.S.C. 9901 et seq.) (The Act), I the designee of the chief executive of the State hereby

I agrees to the Assurances in Section 676 of the Act-

A. Programmatic Assurances

(1) Funds made available through this grant or I allotment will be used:

(a) To support activities that are designed to

I assist low-income families and individuals,

I including families and individuals receiving

I assistance under part A of Title IV of the

Social Security Act (42 U.S.C. 601 et seq.),

I homeless families and individuals, migrant

I or seasonal farm workers, and elderly low-

I income individuals and families to enable

I the families and individuals to:

(i) remove obstacles and solve problems I that block the achievement of self-

I sufficiency (including self-

I sufficiency for families and

I individuals who are attempting to transition off a State program carried out under part A of Title IV of the Social Security Act); [GREATER THAN]

(ii) secure and retain meaningful employment;

I (iii) attain an adequate education, with I particular attention toward improving

I literacy skills of the low-income

I families in the communities involved,

I which may include carrying out family

I literacy initiatives;

I (iv) make better use of available income;

I (v) obtain and maintain adequate housing I and a suitable living environment;

I (vi) obtain emergency assistance through I loans, grants, or other means to meet

I immediate and urgent family and

I individual needs; and

I (vii) achieve greater participation in the I affairs of the communities involved,

I including the development of public

I and private grassroots partnerships

I with local law enforcement agencies,

I local housing authorities, private

I foundations, and other public and

I private partners to document best

I practices based on successful

I grassroots intervention in urban

I areas, to develop methodologies for

I widespread replication; and

I strengthen and improve relationships

I with local law enforcement agencies,

I which may include participation in

I activities such as neighborhood or

I community policing efforts;

I (b) To address the needs of youth in low-income

I communities through youth development

I programs that support the primary role of

I the family, give priority to the prevention

I of youth problems and crime, and promote

I increased community coordination and

I collaboration in meeting the needs of youth,

I and support development and expansion of

I innovative community-based youth development

I programs that have demonstrated success in

I preventing or reducing youth crime, such as

I programs for the establishment of violence-

free zones that would involve youth development and intervention models (such as models involving youth mediation, youth mentoring, life skills training, job creation, and entrepreneurship programs); and after-school childcare programs; and

(c) To make more effective use of, and to coordinate with, other programs (including State welfare reform efforts).

(2) To describe how the State intends to use discretionary funds made available from the reminder of the grant or allotment described in Section 675C(b) of the Act in accordance with the Community Services Block Grant Program, including a description of how the State will support innovative community and neighborhood-based initiatives related to the purposes of the Community Services Block Grant Program;

(3) To provide information provided by eligible entities in the State, including:

(a) a description of the service delivery system, for services provided or coordinated with funds made available through grants made under Section 675C(a) of the Act, targeted to low-income individuals and families in communities within the State;

(b) a description of how linkages will be developed to fill identified gaps in the services, through the provision of information, referrals, case management, and follow-up consultations;

(c) a description of how funds made available through grants made under Section 675(a) will be coordinated with other public and private resources; and,

(d) a description of how local entities will use the funds to support innovative community and neighborhood-based initiatives related to the purposes of the Community Services Block Grant, which may include fatherhood initiatives and other initiatives with the goal of strengthening families and encouraging effective parenting.

(4) To ensure that eligible entities in the State will provide, on an emergency basis, for the provision of such supplies and services, nutritious foods, and related services, as may be necessary to counteract conditions of starvation and malnutrition among low-income individuals.

(5) That the State and the eligible entities in the State will coordinate, and establish linkages between, governmental and other social services programs to assure the effective delivery of such services to low-income individuals and to avoid duplication of such services, and State and the eligible entities will coordinate the provision of employment and training activities in the State and in communities with entities providing activities through statewide and local workforce investment systems under the Workforce Investment Act of 1998;

(6) To ensure coordination between antipoverty programs in each community of the State, and ensure, where appropriate, that Emergency Energy Crisis Intervention Programs under Title XXVI (relating to Low-Income Home Energy Assistance) are conducted in such communities.

(7) To permit and cooperate with Federal investigations undertaken in accordance with Section 678D of the Act.

(8) That any eligible entity in the State that received funding in the previous fiscal year through a Community Services Block Grant under the Community Services Block Grant Program will not have its funding terminated under this subtitle, or reduced below the proportional share of funding the entity received in the previous fiscal year unless, after providing notice and an opportunity for a hearing on the record, the State determines that cause exists for such termination or such reduction, subject to review by the Secretary as provided in Section 678C(b) of the Act.

(9) That the State and eligible entities in the State will, to the maximum extent possible, coordinate programs with and form partnerships with other organizations serving low-income residents of the communities and members of the groups served by the State, including religious organizations, charitable groups, and community organizations.

(10) To require each eligible entity in the State to establish procedures under which a low-income individual, community organization, or religious organization, or representative of low-income individuals that considers its organization, or low-income individuals, to be inadequately represented on the board (or other mechanism) of the eligible entity to petition for adequate representation.

(11) To secure from each eligible entity in the State, as a condition to receipt of funding, a community action plan (which shall be submitted to the Secretary, at the request of the Secretary, with the State plan) that includes a community-needs assessment for the community served, which may be coordinated with community-needs assessments conducted for other programs;

(12) That the State and all eligible entities in the State will, not later than fiscal year 2001, participate in the Results Oriented Management and Accountability System, another performance measure system for which the Secretary facilitated development pursuant to Section 678E(b) of the Act.

(13) To provide information describing how the State will carry out these assurances.

B. Administrative Assurances

The State further agrees to the following, as required under the Act:

(1) To submit an application to the Secretary containing information and provisions that describe the programs for which assistance is sought under the Community Services Block Grant Program prepared in accordance with and containing the information described in Section 676 of the Act.

(2) To use not less than 90 percent of the funds made available to the State by the Secretary under Section 675A or 675B of the Act to make grants to eligible entities for the stated purposes of the Community Services Block Grant Program and to make such funds available to eligible entities for obligation during the fiscal year and the succeeding fiscal year, subject to the provisions regarding recapture and redistribution of unobligated funds outlined below.

(3) In the event that the State elects to recapture and redistribute funds to an eligible entity through a grant made under Section 675C(a)(1) when unobligated funds exceed 20 percent of the amount so distributed to such eligible entity for such fiscal year, the State agrees to redistribute recaptured funds to an eligible entity, or require the original recipient of the funds to redistribute the funds to a private, nonprofit organization, located within the community served by the original recipient of the funds, for activities consistent with the purposes of the Community Services Block Grant Program.

(4) To spend no more than the greater of $55,000 or 5 percent of its grant received under Section 675A or the State allotment received under Section 675B for administrative expenses, including monitoring activities.

(5) In states with a charity tax credit in effect under state law, the State agrees to comply with the requirements and limitations specified in Section 675(c) regarding use of funds for statewide activities to provide charity tax credits to qualified charities whose predominant activity is the provision of direct services within the United States to individuals and families whose annual incomes generally do not exceed 185 percent of the poverty line in order to prevent or alleviate poverty among such individuals and families.

(6) That the lead agency will hold at least one hearing in the State with sufficient time and statewide distribution of notice of such hearing, to provide to the public an opportunity to comment on the proposed use and distribution of funds to be provided through the grant or allotment under Section 675A or 675B for the period covered by the State plan.

(7) That the Chief Executive Officer of the State will designate, an appropriate State agency for purposes of carrying out State Community Services Block Grant Program activities.

(8) To hold at least one legislative hearing every three years in conjunction with the development of the State plan.

(9) To make available for the public inspection each plan or revised State plan in such a manner as will facilitate review of and comment on the plan.

(10) To conduct the following reviews of eligible entities:

(a) full on-site review of each such entity at least once during each three-year period;

(b) an on-site review of each newly designated entity immediately after the completion of the first year in which such entity receives funds through the Community Services Block Grant Program;

(c) follow-up reviews including prompt return visits to eligible entities, and their programs, that fail to meet the goals, standards, and requirements established by the State;

(d) other reviews as appropriate, including reviews of entities with programs that have had other Federal, State or local grants (other than assistance provided under the Community Services Block Grant Program) terminated for cause.

(11) In the event that the State determines that an eligible entity fails to comply with the terms of an agreement or the State plan, to provide services under the Community Services Block Grant Program or to meet appropriate standards, goals, and other requirements established by the State (including performance objectives), the State will comply with the requirements outlined in Section 678C of the Act, to:

(a) inform the entity of the deficiency to be corrected;

(b) require the entity to correct the deficiency;

(c) offer training and technical assistance as appropriate to help correct the deficiency, and submit to the Secretary a report describing the training and technical assistance offered or stating the reasons for determining that training and technical assistance are not appropriate;

(d) at the discretion of the State, offer the eligible entity an opportunity to develop and implement, within 60 days after being informed of the deficiency, a quality improvement plan and to either approve the proposed plan or specify reasons why the proposed plan cannot be approved;

(e) after providing adequate notice and an opportunity for a hearing, initiate proceedings to terminate the designation of or reduce the funding to the eligible entity unless the entity corrects the deficiency.

(12) To establish fiscal controls, procedures, audits and inspections, as required under Section 678D(a)(1) and 678D(a)(2) of the Act.

(13) To repay to the United States amounts found not to have been expended in accordance with the Act, or the Secretary may offset such amounts against any other amount to which the State is or may become entitled under the Community Services Block Grant Program.

(14) To participate, by October 1, 2001, and ensure that all eligible entities in the State participate in the Results Oriented Management and Accountability (ROMA) System.

(15) To prepare and submit to the Secretary an annual report on the measured performance of the State and its eligible entities, as described under '678E (a) (2) of the Act.

(16) To comply with the prohibition against use of Community Services Block Grant funds for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than low-cost residential weatherization or other energy-related home repairs) of any building or other facility, as described in Section 678F(a) of the Act.

(17) To ensure that programs assisted by Community Services Block Grant funds shall not be carried out in a manner involving the use of program funds, the provision of services, or the employment or assignment of personnel in a manner supporting or resulting in the identification of such programs with any partisan or nonpartisan political activity or any political activity associated with a candidate, or contending faction or group, in an election for public or party office; any activity to provide voters or prospective voters with transportation to the polls or similar assistance with any such election, or any voter registration activity.

(18) To ensure that no person shall, on the basis of race, color, national origin or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with Community Services Block Grant Program funds. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.) or with respect to an otherwise qualified individual with a disability as provided in Section 504 of the Rehabilitation Act of 1973 ( 29 U.S.C. 12131 et seq.) shall also apply to any such program or activity.

(19) Section 679. Operational Rule.

(a)" Religious Organizations Included as Nongovernmental Providers. - For any program carried out by the Federal Government, or by a State or local government under this subtitle, the government shall consider, on the same basis as other non-governmental organizations, religious organizations to provide the assistance under the program, so long as the program is implemented in a manner consistent with the Establishment Clause of the first amendment of the Constitution. Neither the Federal Government nor a State or local government receiving funds under this subtitle shall discriminate against an organization that provides assistance under, or applies to provide assistance under, this subtitle, on the basis that the organization has a religious character.

(b) Religious Character and Independence.

(1) In General. - A religious organization that provides assistance under a program described in subsection (a) shall retain its religious character and control over the definition, development, practice, and expression of its religious beliefs.

(2)Additional Safeguards. - Neither the Federal Government nor a State or a local government shall require a religious organization -

(A)to alter its form of internal governance, except (for purposes of administration of the Community Services Block Grant Program) as provided in section 676B; or

(B)to remove religious art, icons, scripture, or other symbols; in order to be eligible to provide assistance under a program described in subsection (a).

(3)Employment Practices. - A religious organization's exemption provided under section 102 of the Civil Rights Act of 1964 (42 U.S.C. 2000E-1) regarding employment

practices shall not be affected by its participation in, or receipt of funds from, program describe in subsection (a).

(c)Limitations of Use of Funds for Certain Purposes.

- No funds provided directly to a religious organization to provide assistance under any program described in subsection (a) shall be expended for sectarian worship, instruction, or proselytization.

(d)Fiscal Accountability. -

(1)In General. - Except as provided in paragraph (2), any religious organization providing assistance under any program described in subsection (a) shall be subject to the same regulations as other nongovernmental organizations to account in accord with generally accepted accounting principles for the use of such funds provided under such program.

(2)Limited Audit. - Such organization shall segregate government funds provided under such program into a separate account. Only the government funds shall be subject to audit by the government.

(e) Treatment of Eligible Entities and Other

Intermediate Organizations. - If an eligible entity or organization (referred to in this subsection as an 'intermediate organization'), acting under a contract, or grant or other agreement, with the Federal Government or a State or local government, is given the authority under the contract or agreement to select non governmental organizations to provide assistance under the programs described in subsection (a), the intermediate organization shall have the same duties under this section as the government."

C. Other Administrative Certifications

The State also certifies the following:

(1) To provide assurances that cost and accounting standards of the Office of Management and Budget

(0MB Circular A-110 and A-122) shall apply to a recipient of Community Services Block Grant Program funds.

(2) To comply with the requirements of Public Law 103 - 227, Part C Environmental Tobacco Smoke, also know as the Pro-Children Act of 1994, which requires that smoking not be permitted in any portion of any indoor facility owned or leased or contracted for by an entity and used routinely or regularly for the provision of health, day care, education, or library services to children under the age of 18 if the services are funded by a Federal grant, contract, loan, or loan guarantee. The State further agrees that it will require the language of this certification be included in any subawards, which contain provisions for children's services and that all subgrantees shall certify accordingly.

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Attachment (vi) Community Food and Nutrition Program Application

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016.20.05 Ark. Code R. 005

8/3/2005