1. Regulations
  2. title 7
  3. chapter XVIII-i1
  4. part 1944
  5. subpart I
  6. appendix-i 7

- Exhibit E to Subpart I of Part 1944—Guidance for Recipients of Self-Help Technical Assistance Grants (Section 523 of Housing Act of 1949)

7 CFR part 1944, subpart I provides the specific details of this grant program. The following is a list of some functions of the grant recipients taken from this subpart. With the list are questions we request to be answered by the recipients to reduce the potential for fraud, waste, unauthorized use or mismanagement of these grant funds. We suggest the Board of Directors answer these questions every six months by conducting their own review. Paid staff should not be permitted to complete this evaluation.

A. Family Labor Contribution1. Does your organization maintain a list of each family and a running total of hours worked (when and on what activity)?YesNo 2. Are there records of discussions with participating families counselling them when the family contribution is falling behind?YesNo 3. Are there obstacles which prevent the family from performing the required tasks?YesNo B. Use of Grant Funds1. Were grant funds used to pay salaries or other expenses of personnel not directly associated with this grant?YesNo 2. Were grant funds used to pay for construction work for participating families?YesNo 3. Were all purchases or rentals (item and cost) of office equipment authorized?YesNo 4. Are all office expenses authorized by 7 CFR part 1944, subpart I?YesNo 5. Was a record of long distance telephone calls maintained and was that log and telephone checked?YesNo 6. Was all travel and mileage incurred for official business and properly authorized in advance?YesNo 7. Were mileage and per diem rates within authorized levels?YesNo 8. Were participating families charged for use of tools?YesNo 9. Were grant funds expended to train grant personnel?YesNo 10. Was training appropriate for the individual trainee?YesNo 11. Were any technical or consultant services obtained for participating families?YesNo 12. Were the provided technical or consultant services appropriate in type and cost?YesNo C. Financial Responsibilities1. Does each invoice paid by the grant recipient match the purchase order?YesNo 2. Does each invoice paid by the borrower and FmHA or its successor agency under Public Law 103-354 match the purchase order?YesNo 3. Were purchases made from the appropriate vendors?YesNo 4. Are the invoices and itemized statements totalled for materials purchased for individual families?YesNo 5. Is there a record of deposits and withdrawals to account for all loan funds?YesNo 6. Are checks from grant funds signed by the Board Treasurer and Executive Director?YesNo 7. Are grant funds deposited in an interest bearing account?YesNo 8. Are checks from loan funds prepared by the grant recipient for the borrower's and lender's signature?YesNo 9. Are checks from loan funds accompanied by accurate invoices?YesNo 10. Are any borrower loan funds including interests, deposited in grantee accounts?YesNo 11. Are checks from loan funds submitted to FmHA or its successor agency under Public Law 103-354 more often than once every 30 days?YesNo 12. Is the reconciliation of bank statements for both grant and loan funds completed on a monthly basis?YesNo 13. If the person who issues the checks also reconciles them, does the Executive Director review this activity?YesNo 14. Are materials purchased in bulk approved by the Executive Director?YesNo 15. Was the amount of materials determined by both the Executive Director and construction staff?YesNo 16. Were any participating families consulted about the purchase of materials?YesNo 17. Were savings accomplished by the bulk purchase method?YesNo 18. Did the Executive Director review the purchase order and the ultimate use of the materials?YesNo 19. Are materials covered by insurance when stored by grantee?YesNo D. Reporting1. Are “Requests for Advance or Reimbursement” made once monthly to the FmHA or its successor agency under Public Law 103-354 District Office?YesNo 2. Has the grant recipient engaged a certified public Accountant (CPA) or CPA firm to review their operations on a regular basis: (Annually is preferable but every two years and at the end or the grant period are requirements)?YesNo 3. Are the quarterly evaluation reports submitted on time to the County Supervisor?YesNo

What, if any, problems exist that need to be corrected for effective management of the grant project?

Date President, Board of Directors (Period covered by report ______) Answer Key

The following answers should help your organization in assessing its vulnerability to fraud, waste, and abuse. You should take actions to correct practices that now generate an answer different from the key.

QuestionAnswerA. 1Yes A. 2Yes A. 3Yes B. 1No B. 2No B. 3Yes B. 4Yes B. 5Yes B. 6Yes B. 7Yes B. 8No B. 9Yes B. 10Yes B. 11Yes B. 12Yes C. 1Yes C. 2Yes C. 3Yes C. 4Yes C. 5Yes C. 6Yes C. 7No C. 8Yes C. 9Yes C. 10No C. 11No C. 12Yes C. 13Yes C. 14Yes C. 15Yes C. 16Yes C. 17Yes C. 18Yes C. 19Yes D. 1Yes D. 2Yes D. 3Yes

AUTHORITY: 5 U.S.C. 301; 42 U.S.C. 1480.