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Form HEW-30 Rev. (1/6 ROUTE SLIP GPO: le73 © ~ 517-324
"RE ATES SP ATOD MSI
fORANDUM EPA ISN

FROM

SUBJECT:

TTENDEES :

AE
3

 
  
  

‘ALEPH, EDUCATION, AND WELFARE
“HEALTH SERVICH *
ES ADMINISTRATION
MULEAL OF EDALTIL RESOURCES DEVELOPMENT
Acting Deputy Director DATE: October 7, 1974
Division of Regional Medical Frograms

 

Acting Chief
Grants Management

Record of Meeting Concerning RMP Phase Out, Friday Gctover 4, 3-5:00 p.m.

Mr. Tony Garrick ~ HRA, Grants and Contracts
my. doe Amoroso - HRA, Grants and Contracts
My. Ted Moore - H, Grants and Contracts

Ms. Marsha Dungan - CHP

G. Lee Teets - DRMP, Grants Management

The announced purpose of this meeting was to help Mr. Ted Moore identify
the problems involved in the granting programs phase out. He has the
specific task to: “Assess Problems Involved in Phase Out and Take Action
As Necessary. "

Apparently, Mr. Moore's charge and this meeting emanate from a series uf
memoranda related to FY 1975 Work Plans. Attached are copies of all three
memoranda. There was, from the outset, quite a bit of confusion due to @
lack of a mutual understanding of the words "ohase out", “termination™,

ond "close-out." Having finally decided that acequate instructions exist

with regard to grant terminations and close-out, the focus of this

meeting became that of relating to problems attendant to phase out.

The following problem areas were identified by the under signed to fur-
ther the purpose of this meeting and for subsequent appropriate action
by the Cffices of Grants and Contracts at both the H and HRA levels:

e RMP Program Staffs terminate dune 30,

1975 but some Projects
will perhaps, continue on to June 30, 197

G.
@ DHEW policy allows transfer of title and accountability of
equipment from Grantees to Affiliated Institutions upon

completion of RMP funding.

  

c -ablished between Affiliates
and whatever Se¢i Federal government ultimat
c and fiscal monitoriag and $
one {

 

-

Direct linkaga must be

  
 

     

responsibie for programac
ance of Projects upon the damise of the Program SLeé

 
Page 2 - Acting Deputy Director

e Obligation/De-Obligation of funds grantee awarded for project
activities may become a problem in.the establishment of re-
sponsibility linkages.

@ Reports of Expenditures (ROEs) and Summary Reports of Expendi-
tures (SROEs) will have to be processed.

e Severance Pay policy must be announced - not as to its
allowability as a direct cost - but as to the last date when a
program is phasing out such a policy can be developed.

e Contingency funding must be allowed in grant programs which are
phasing out to accommodate costs related to breaking leases,
paying of severance pay, etc. (OMB Circular A-21 prohibits
contingency funds). Source of funds to accommodate such costs
at the Federal level should be determined when contingency funds

are not allowed.

e Pay systems must be carefully analyzed and appropriate procedures
established to provide continuity of reimbursement.

@ Policies and procedures need be developed for programs which are
phasing out related to funding determinations and allocations.
Phasing out programs do not have the ability to meet indirect
cost needs subsequent to the final allocation of available funds.
RMP response to this problem was to move to a system of allo-
cating total funds to accommodate both direct and indirect
requirements.

e Administrative funding adjustments in a phasing out program
cannot be made since there are no more funds available. Sources
of Federal funding need be explored and identified.

Mr. Moore stated that he felt that this meeting was helpful in that it
provided a means of drawing up a "laundry list" of problems which he can
assess and perhaps provide HRA and its granting programs some assistance
in solving. Further, he indicated that perhaps another meeting or so
would be required prior to his being able to offer any definitive
solution to the problems. No date was set for the next meeting.

I explained to Mr. Moore that I was willing to attend further meetings
and provide him whatever assistance I could in the development of a
"laundry list." However, I explained to him that Dr. Pahl, on
Page 3 - Acting Deputy Director

September 9, 1974 had asked all DRMP staff members to request that "Requests
for Information" be submitted in writing to or through the Director's

office.
G. Lee Teets
cc:
Attendees
Judy Silsbee
GM Staff

Cy Young