The grantee may not engage in any new or expanded provision of services until notice of the new funding becomes effective. If a grantee uses federal or state funds to fund services in an area that is already being funded, the grantee may not request an additional award for those services, and the grantee must terminate any current grant or contract for that service no later than 12 months after the grantee receives notice of the new funding.
Federal regulations may limit the maximum amount of grant funds that grantees may receive each year to not more than 15 percent of the annual budget of a use.13 For purposes of determining the maximum amount of the grant, the grantee is assumed to have expended all award funds in the previous fiscal year, and under the regulations the grantee may not request a subsequent award for the same purpose.
"We agree with the Secretary that the program may rely on a range of information, including evaluations that may or may not be in the grantee's file. However, such information does not have to be in a particular format, even though many commenters were concerned that a particular format is needed to hold an effective review of the data. We agree with commenters that the Secretary should impose some limits on the use of financial reports such as tax returns, bank statements, or other financial documents that might be relevant to the program. "
"First, regarding the frequency of financial reporting, we agree with the Secretary that allowing yet another layer of reporting would be burdensome. The purpose of the SAR involves assessing the grantee's use of its funds, which requires a complete knowledge of its financial circumstances. Further, according to the program regulations, the grantee must report on its use of funds each year. We agree with the commenters that this requirement deters grantees from reporting on their use of funds in an audit. The purpose of the SAR is to ensure adequate oversight of the program. The Secretary should address this concern by imposing annual financial reporting requirements on grantees that would not directly burden the grantee unnecessarily." d2c66b5586