CHAPTER 57 - TOBACCO TRUST FUND COMMISSION
section .0100 – general provisions
02 NCAC 57 .0101 POLICY
(a) North Carolina's prosperity
has historically been supported by its agricultural economy and particularly by
the tobacco-related segment of its agricultural economy.
(b) The tobacco-related segment
of the State's economy is experiencing severe economic hardship as it confronts
a national decline in the use and demand for tobacco products.
(c) The Master Settlement
Agreement between North Carolina and various cigarette manufacturers has
contributed to the decline in the tobacco-related segment of the State's
economy. It is therefore appropriate for some of the money from the Master
Settlement Agreement to be spent for the public purpose of alleviating or
avoiding unemployment and fiscal distress in the tobacco-related segment of the
State's economy, stabilizing local tobacco-dependent economies, stabilizing and
maintaining local tax bases, and optimally using natural resources.
History Note: Authority G.S.
143-715; 143-718;
Temporary Adoption Eff. May
15, 2002;
Eff. April 15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0102 AUTHORIZATION
(a) The Tobacco Trust Fund
Commission is authorized by G.S. 143, Article 75 to develop Compensatory
Programs and Qualified Agricultural Programs to provide financial assistance
from the Tobacco Trust Fund to eligible recipients.
(b) As part of its authority to
develop guidelines and criteria for eligibility for disbursement of funds, to
determine forms of direct and indirect economic assistance to be awarded, and
to develop procedures for applying for and reviewing applications for
assistance from the Fund, the Commission may periodically set a list of funding
priorities which it will follow in awarding grants for qualified agricultural
programs and in granting compensatory programs. The Commission may also
request proposals to address specific funding priorities or to encourage
specific programs intended to alleviate or avoid unemployment and fiscal
distress in the tobacco-related segment of the State's economy, stabilize local
tobacco-dependent economies, stabilize and maintain local tax bases, and
optimally use natural resources. The Commission may work cooperatively with
other government agencies and agricultural and rural entities to develop
Compensatory Programs and Qualified Agricultural Programs. Actions of the
Commission will be based on rules established by the Commission.
History Note: Authority G.S.
143-715; 143-718;
Temporary Adoption Eff. May
15, 2002;
Temporary Adoption Eff. June
29, 2002;
Eff. April
15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0103 DEFINITIONS
In addition to the definitions
contained in G.S. 143-716 the following definitions apply:
(1) Lost Quota. The
difference in total aggregate annual tobacco quota poundage between the year in
question and 1997;
(2) Person. An individual
human being;
(3) Tobacco allotment. An
amount of tobacco allowed to be grown on a tract of land;
(4) Tobacco allotment
holder. A person who, at the time of the grant application, owns a certain
amount of tobacco quota on a tract of land, as determined by the U.S. Farm
Service Agency records for the county in which the quota is located;
(5) Tobacco grower. Tobacco
producer;
(6) Tobacco producer. A
person or entity actively engaged in planting, growing, harvesting and
marketing tobacco, or who shares in the expense of producing the crop, and for
that reason is entitled to share in the revenues derived from marketing the
crop;
(7) Tobacco products.
Cigarettes, cigars, smokeless tobacco, pipe tobacco, roll your own tobacco or
any other tobacco product sold at retail intended for human consumption; and
(8) Tobacco-related segment
of the State's agricultural economy. That part of the State's agricultural
economy that includes tobacco producers, tobacco allotment holders, persons who
work on tobacco farms and tobacco auction-related workers or warehousemen and
others in tobacco-dependent communities as determined by the Commission in a
grant or contract approval.
History Note: Authority G.S.
143-716; 143-718;
Temporary Adoption Eff. May
15, 2002;
Temporary Adoption Eff. June
29, 2002;
Eff. April 15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
SECTION .0200 - COMPENSATORY PROGRAM
GRANTS
02 NCAC 57 .0201 PURPOSE
The purpose of the Commission's
Compensatory Program is to directly or indirectly compensate or indemnify
tobacco producers, tobacco allotment holders, individuals displaced from tobacco-related
employment and persons engaged in tobacco-related business for economic losses
resulting from lost quota and declining market conditions caused by the Master
Settlement Agreement as determined by the Commission according to these Rules.
History Note: Authority G.S.
143-718; 143-720;
Temporary Adoption Eff. May
15, 2002;
Eff. April
15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0202 TYPES OF PROGRAMS
Grants from Compensatory Programs
shall compensate or indemnify grant beneficiaries for losses occurring in 1998
and after. Grants for financial assistance shall be for no more than one year
at a time.
History Note: Authority G.S.
143-718; 143-720;
Temporary Adoption Eff. May
15, 2002;
Eff. April 15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0203 ELIGIBILITY TO RECEIVE GRANTS
Persons receiving, or
organizations administering, Compensatory Program grants shall be, or shall
benefit, one or more of the following:
(1) Tobacco producers,
allotment holders or persons engaged in tobacco-related businesses who can
quantify adverse economic effects in North Carolina to themselves individually
from the Master Settlement Agreement after payment of any funds from the
National Tobacco Grower Settlement Trust;
(2) Tobacco producers,
allotment holders or persons engaged in tobacco-related businesses who can
quantify economic loss to themselves individually resulting from lost tobacco
quota due to the Master Settlement Agreement;
(3) Tobacco producers who can
quantify a decline in the value of tobacco-related personal property assets due
to the Master Settlement Agreement;
(4) Tobacco product component
businesses which are adversely affected by the Master Settlement Agreement and
which need financial assistance to:
(a) Retool machinery
or equipment; or
(b) Retrain workers in
order to convert to the production of new products or non-tobacco use of
existing products; or
(c) Effect other
similar changes;
(5) Persons engaged in
tobacco-related businesses who can quantify individual financial losses due to
the Master Settlement Agreement; or
(6) Individuals displaced
from tobacco-related employment who can show that the Master Settlement
Agreement caused their displacement and who can further show that the
displacement has resulted in actual economic loss to them.
History Note: Authority G.S.
143-718; 143-720;
Temporary Adoption Eff. May
15, 2002;
Eff. April
15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0204 APPLICATIONS FOR GRANTS
(a) The Commission shall designate specific dates for
submission of grant applications based on the amount of funds available. Grant
application submission dates will be announced by the Commission at least 30 days
before the date applications are due.
(b) Grant proposals shall be typed or printed and an
original and four copies timely submitted to the Commission by hand-delivery,
by a designated delivery service authorized pursuant to G.S. 1A-1, Rule 4, or
by U.S. Mail. Applications shall be deemed timely submitted if delivered by
hand to the Commission’s physical office and signed for by Commission staff
before 5:00 p.m. on the submission date; or by designated delivery service,
whereby the parcel bears a shipping date on or before the submission date; or
by placing into the U.S. Mail, addressed to 1080 Mail Service Center, Raleigh,
NC 27699, and postmarked on or before the submission date. Applicants may
also provide an electronic courtesy copy formatted in Microsoft Word or Adobe
Acrobat.
(c) To be considered for funding, applicants shall complete
the Tobacco Trust Fund Grant Application Form which shall contain the following
information:
(1) Names, mailing addresses, telephone
numbers, and signatures of the applicant;
(2) If the applicant is an organization,
consortium, cooperative or other entity representing multiple eligible
beneficiaries, a description of the applying organization including history,
mission statement, fiscal information, audit statements (if available),
organizational goals and members of the Board of Directors. If the applicant
involves more than one organization, person or entity, it shall identify
participating organizations, persons or entities and define their roles in
completing the Compensatory Program;
(3) A description of the Compensatory Program,
its goals and objectives, and the manner in which it will accomplish its goals
and objectives, including how the applicant will quantify actual losses due to
the Master Settlement Agreement that are not compensated by payments from the
National Tobacco Grower Settlement Trust;
(4) A statement of the projected cost of the
Compensatory Program, including any administrative costs and including expected
funding from any other source;
(5) A description of how the project will be
completed including time lines;
(6) A description of the accounts that will be
set up and used and an assurance that all accounts can be audited by the
Commission or the State Auditor;
(7) An explanation of how the project's results
will be evaluated;
(8) At least two references who may be
contacted by the Commission;
(9) Any other information required by G.S. 143,
Article 75 or these Rules in order to make a decision on the grant proposal;
(10) An explanation of how the project will
enhance North Carolina's tobacco-related economy for the common good; and
(11) A list and history of the applicant's past
projects funded by grants or awards.
(d) As a condition of applying for or of receiving a grant
for a Compensatory Program, applicants or grantees must allow the Commission or
the Commission staff to make site visits at the Commission's convenience.
History Note: Authority G.S. 143-718; 143-720;
Temporary Adoption Eff. May 15, 2002;
Eff. April 15, 2003;
Amended Eff. December 1, 2008;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0205 SPECIAL
INFORMATION NEEDED FOR DIRECT COMPENSATORY PROGRAMS
If a request is for direct
compensation or indemnification or for a program to administer direct
compensation or indemnification to an eligible beneficiary or beneficiaries,
then the application for the Compensatory Program must contain the following:
(1) Documentation
demonstrating the amount of actual loss of tobacco-related income in North Carolina in 1998 or years subsequent. An applicant may make such demonstration with:
(a) A verified letter
from a Certified Public Accountant or an attorney licensed in North Carolina
that details the amount of the actual loss; or
(b) That portion of a
federal or state income tax return that shows a loss of tobacco-related
income. (Please be aware that any such tax information included in an
application will become part of the public record); or
(c) A verified
statement from a North Carolina employer quantifying the applicant's loss in
tobacco-related income in North Carolina for any given year from 1998 forward;
or
(d) Any other similar
reliable, accurate and verifiable documentation which the Commission may accept
as proof of actual loss;
(2) Documentation
demonstrating that the amount of actual loss of tobacco-related income is
attributable to the Master Settlement Agreement and not simply because of a
decline in quota not caused by the Master Settlement Agreement. Applicants may
demonstrate the actual loss with verified information from an independent
expert in the field, which expert may be, but is not limited to, an economist
or an accountant. The Commission will compare this demonstration with any
independent expert information it may have about losses caused by the Master
Settlement Agreement and losses compensated by the National Tobacco Grower
Settlement Trust; and
(3) Documentation of any
compensation received from the National Tobacco Grower Settlement Trust, or any
other source to cover actual losses due to the Master Settlement Agreement, or
a verified statement that no compensation was received from the National
Tobacco Growers' Settlement Trust or from any other source to compensate losses
caused by the Master Settlement Agreement.
History Note: Authority G.S.
143-718; 143-720;
Temporary Adoption Eff. May
15, 2002;
Eff. April
15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0206 OUT OF CYCLE AWARD OF GRANTS
History Note: Authority G.S. 143-718;
Temporary Adoption Eff. May 15, 2002;
Eff. April 15, 2003;
Repealed Eff. December 1, 2008.
02 NCAC 57 .0207 REVIEW OF PROPOSALS
(a) The Executive Director of the Commission or Commission
staff or designee shall screen applications to see if they are complete.
Commission staff shall notify applicants if the grant application is
incomplete.
(b) Applications that are complete will be forwarded to a
Grant Review Committee of the Commission. The Grant Review Committee members
shall be Commissioners.
(c) During the review and evaluation of proposals, the
Grant Review Committee may solicit information from persons who have expertise
in technical or specialized areas or request that the Commission staff or
designee make reports on any site visits that may be required for consideration
of the grant proposal. The Grant Review Committee will make recommendations to
the Commission. Scoring and rating of proposals may be determined by using any
consistent rating methodology, including adjectival, numerical or ordinal
rankings.
(d) The Commission will receive the suggestions of the
Grant Review Committee and will evaluate proposals as set out in G.S. 143-720.
(e) In making this evaluation the Commission may consider
who will benefit from the grant, how many will benefit from the grant, the cost
of administering the grant and whether the grant will benefit tobacco dependent
economies of the State in a measurable manner. Proposals will be given a
preference for statewide impact and for containing a delivery mechanism to
intended beneficiaries.
(f) No grant shall be awarded for a project that is
unlawful.
History Note: Authority G.S. 143-718; 143-720;
Temporary Adoption Eff. May 15, 2002;
Eff. April 15, 2003;
Amended Eff. December 1, 2008;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0208 AWARD OF GRANTS
(a) The Commission will award
grants if it determines that it has sufficient funds to do so. All applicants
will be notified in writing whether they have received a grant or not.
(b) The grant proposal shall be incorporated
into the grant, and the goals, time lines and other grant objectives shall be
performance standards for the grant.
(c) Funds will be conveyed to
grantees through contracts with the Commission.
(d) Of the total funds granted
for each project, up to 100 percent may be paid upon signing of the contract if
such payment is requested as part of the grant application and the Commission
determines that the initial request is necessary for administration of the
grant program.
(e) Other payments to successful
applicants shall be paid upon receipt of expenditure reports or invoices at
mutually agreed upon periodic intervals.
(f) The Commission or the
Commission staff may agree to change time lines when such changes do not
undermine the purposes and goals of the Compensatory Program.
(g) The Commission may consider
the applicant's past performance of grants and publicly funded projects when
awarding Compensatory Programs. The Commission shall not award money to an
applicant whose past performance of a Commission grant or program has been
unsatisfactory, according to these Rules.
(h) The granting agreement will
outline the standard accounting practices which the grantee will follow in
order to facilitate review by the Commission staff or the State Auditor, or an
outside auditor hired by the Commission. The grant agreement will also provide
that the grantee shall put grant money in an interest bearing account and that
any interest earned on the grant money shall be returned to the Commission at
the conclusion of the grant together with an accounting of such interest
earnings.
(i) If the Commission determines
that grant funds are not being used for the purpose for which they were
awarded, the Commission may cease making payments under the grant schedule until
the problem has been resolved or may demand immediate return of any unspent
money from the grant, with which request the grantee must comply. Grantees
must pay back to the Commission any funds that the Commission determines have
not been spent for the purpose for which they were granted as well as the
statutory interest rate on those funds.
(j) Grantees must return any
grant money which remains unspent at the conclusion of the grant project along
with any interest earned on grant money.
History Note: Authority G.S.
143-718;
Temporary Adoption Eff. May
15, 2002;
Temporary Adoption Eff. June
29, 2002;
Eff. April
15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0209 REPORTING
(a) Grantees shall submit written progress reports at three
month intervals or upon completion of the project, whichever is sooner.
Written reports shall describe the status of the Compensatory Program, progress
toward achieving program objectives, notable occurrences and any significant
problems encountered and steps taken to overcome the problems.
(b) A representative of the Commission shall review the
progress reports for completeness which shall include a showing of how the
project is meeting its stated goals and performance standards. If the
representative finds that the report is deficient in showing how the project is
meeting its stated goals and performance standards, the grantee will be
notified of the deficiency and must provide a changed and corrected report
within 30 working days to avoid having the next grant payment withheld.
(c) Upon completion of the Compensatory Program, the
grantee must make a final written report to the Commission which final report shall
include an evaluation of the success of the program.
History Note: Authority G.S. 143-718;
Temporary Adoption Eff. May 15, 2002;
Eff. April 15, 2003;
Amended Eff. December 1, 2008;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0210 POLICIES GOVERNING
COMPENSATORY PROGRAMS
(a) Successful applicants must
keep financial and other records of the Compensatory Program for five years and
must comply with audit requests. If the Commission determines that the amount
of the money awarded or the performance or alleged non-performance of the
grantee compels it, the Commission may require a compliance audit of the
Compensatory Program.
(b) All applications, attachments
to applications and written reports received by the Commission are public
records, unless determined otherwise by court order or other applicable law.
History Note: Authority G.S.
143-718;
Temporary Adoption Eff. May
15, 2002;
Eff. April
15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without substantive
public interest Eff. October 24, 2015.
SECTION .0300 - QUALIFIED
AGRICULTURAL PROGRAM GRANTS
02 NCAC 57 .0301 PURPOSE
The purpose of the Commission's
grants for Qualified Agricultural Programs is to support and foster the
vitality and solvency of the tobacco-related segment of the State's agricultural
economy, particularly the segment adversely affected by the Master Settlement
Agreement. Projects shall address one or more of the following goals:
(1) Alleviating and avoiding
unemployment in the tobacco-related sector of the State's agricultural economy;
(2) Preserving and increasing
local tax bases in agricultural areas;
(3) Encouraging the economic
stability of participants in the State's agricultural economy;
(4) Optimally using natural
resources in the tobacco-related segment of the State's agricultural economy;
or
(5) Any other goal that will
promote the public good by supporting and fostering the vitality and solvency
of the tobacco-related sector of the State's agricultural economy.
History Note: Authority G.S.
143-716; 143-718;
Temporary Adoption Eff. May
15, 2002;
Eff. April 15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57
.0302 ELIGIBILITY TO RECEIVE GRANTS
Entities receiving Qualified
Agricultural Program grants shall be one or more of the following:
(1) Agencies and departments
of the State of North Carolina;
(2) Local governmental units;
(3) Agencies and departments
of the United States government; or
(4) Members of the private
sector, including non-profit organizations.
History Note: Authority G.S.
143-718; 143-721;
Temporary Adoption Eff. May
15, 2002;
Eff. April 15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0303 THE PRIMARY BENEFICIARY
The primary beneficiary of
Qualified Agricultural Programs shall be the tobacco-related segment of the
State's agricultural economy.
History Note: Authority G.S.
143-716; 143-718;
Temporary Adoption Eff. May
15, 2002;
Eff. April 15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0304 APPLICATIONS FOR GRANTS
(a) The Commission shall designate specific dates for
submission of grant applications based on the amount of funds available. Grant
application submission dates shall be announced by the Commission at least 30 days
before the date applications are due.
(b) Grants proposals shall be typed or printed and an
original and four copies timely submitted to the Commission by hand-delivery,
by a designated delivery service authorized pursuant to G.S. 1A-1, Rule 4, or
by U.S Mail. Applications shall be deemed timely submitted if delivered by
hand to the Commission's physical office and signed for by Commission staff
before 5:00 p.m. on the submission date; or by designated delivery service,
which package bears a shipping date on or before the submission date; or by
placing into the U.S. Mail, addressed to 1080 Mail Service Center,
Raleigh, NC 27699 and postmarked on or before the submission date. Applicants
may also provide an electronic courtesy copy formatted in Microsoft Word or
Adobe Acrobat.
(c) To be considered for funding, applicants shall complete
the Tobacco Trust Fund Grant Application Form which shall contain the following
information:
(1) Names, mailing addresses, telephone
numbers, and signatures of the applicant;
(2) A description of the applying organization
including history, mission statement, fiscal information, audit statements (if
available), organizational goals and a list of the members of the Board of
Directors. If the applicant involves more than one person, organization or
entity, the applicant shall identify participating persons, organizations or
entities and define their roles in completing the grant;
(3) A description of the Qualified Agricultural
Program, its objectives and the manner in which it will accomplish the
requirement that the Qualified Agricultural Program foster the vitality and
solvency of the tobacco-related segment of the State's agricultural economy;
(4) A statement of the projected cost of the
Qualified Agricultural Program, including any administrative costs and
including expected funding from any other source;
(5) A description of how the project will be
completed including time lines;
(6) A description of the accounts that will be
set up and used and an assurance that all accounts can be audited by the
Commission or the State auditor;
(7) An explanation of how the project's results
will be evaluated;
(8) At least two references which the
Commission may contact;
(9) Any other information required by G.S. 143,
Article 75 or by these Rules in order to make a decision on the grant proposal;
(10) An explanation of how the project will
enhance North Carolina's tobacco-related economy for the common good; and
(11) A list and history of the applicant's past
projects funded by grants or awards.
(d) As a condition of applying for a grant or of receiving
the grant, applicants or grantees must allow the Commission or the Commission
staff to make site visits at the Commission's convenience.
History Note: Authority G.S. 143-718; 143-721;
Temporary Adoption Eff. May 15, 2002;
Eff. April 15, 2003;
Amended Eff. December 1, 2008;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0305 OUT OF CYCLE consideration of grants
History Note: Authority G.S. 143-718;
Temporary Adoption Eff. May 15, 2002;
Eff. April 15, 2003;
Repealed Eff. December 1, 2008.
02 NCAC 57 .0306 REVIEW OF PROPOSALS
(a) The Executive Director of the Commission or Commission
staff or designee shall screen applications to see if they are complete.
Commission staff shall notify applicants if the grant application is
incomplete.
(b) Applications that are complete will be forwarded to a
Grant Review Committee of the Commission. Grant Review Committee members shall
be Commissioners.
(c) During the review and evaluation of grant proposals,
the Grant Review Committee may solicit information from persons who have
expertise in technical or specialized areas or request that the Commission
staff or designee make reports on any site visits that may be required for
consideration of the grant proposal. The Grant Review Committee will make recommendations
to the Commission based on its review and evaluation. Scoring and ranking of
proposals may be determined by using any consistent rating methodology,
including adjectival, numerical or ordinal rankings.
(d) The Commission will evaluate grant proposals and
recommendations made to it by the Grant Review Committee as set out in G.S.
143-721.
(e) In making this evaluation the Commission may consider
who will benefit from the grant, how many will benefit from the grant, how the
grant project will alleviate or avoid unemployment, stabilize local tax bases,
encourage the economic stability of participants in the State's agricultural
economy or encourage the optimal use of natural resources in the
tobacco-related segment of the State's agricultural economy. Proposals will be
given a preference for statewide impact, for containing a delivery mechanism to
intended beneficiaries, for providing alternate markets for tobacco or for
providing for diversification of the tobacco crop or the tobacco grower.
(f) No grant shall be awarded that is unlawful.
History Note: Authority G.S. 143-718; 143-721;
Temporary Adoption Eff. May
15, 2002;
Eff. April 15, 2003;
Amended Eff. December 1, 2008;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0307 AWARD OF GRANTS
(a) The Commission will award
grants to proposals which have the greatest impact on the long-term health of
the State's tobacco-related agricultural economy. All applicants will be
notified in writing whether they have received a grant or not. The Commission
will award grants if it determines that it has sufficient funds to do so.
(b) The grant proposal shall be
incorporated into the grant, and the goals, time lines and other grant
objectives shall be performance standards for the grant.
(c) Funds will be conveyed to
grantees through contracts with the Commission.
(d) Of the total funds granted
for each project, up to 100 percent may be paid upon signing of the contract if
such payment is requested as part of the grant application and the Commission
determines the request is necessary for the administration of the grant
program.
(e) Other payments to grantees
shall be paid upon receipt of expenditure reports or invoices at mutually
agreed upon periodic intervals.
(f) The Commission or the
Commission staff may agree to change time lines when such changes do not
undermine the purposes and goals of the grant.
(g) The Commission may consider
the applicant's past performance of grants and publicly funded projects when
awarding grants. The Commission shall not award a grant to an applicant whose
past performance of Commission grants or programs has been unsatisfactory,
according to these Rules.
(h) The granting agreement will
outline the standard accounting practices which the grantee will follow in
order to facilitate review by the Commission staff or the State Auditor, or an
outside auditor hired by the Commission. The grant agreement will also provide
that the grantee shall put grant money in an interest bearing account and that
any interest earned on the grant money shall be returned to the Commission at
the conclusion of the grant together with an accounting of such interest
earnings.
(i) If the Commission determines
that grant funds are not being used for the purpose for which they were
awarded, the Commission may cease making payments under the grant schedule
until the problem has been resolved or may demand immediate return of any
unspent money from the grant, with which request the grantee must comply.
Grantees must pay back to the Commission any funds that the Commission
determines have not been spent for the purpose for which they were granted as
well as the statutory interest rate on those funds.
(j) Grantees must return any
grant money which remains unspent at the conclusion of the grant project along
with any interest earned on grant money.
History Note: Authority G.S.
143-718; 143-721;
Temporary Adoption Eff. May
15, 2002;
Temporary Adoption Eff. June
29, 2002;
Eff. April
15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0308 REPORTING
(a) Grantees shall submit written progress reports at three
month intervals or upon completion of the project, whichever is sooner.
Written reports shall describe the status of the grant projects, progress
toward achieving project objectives, notable occurrences and any significant
problems encountered and steps taken to overcome the problems.
(b) A representative of the Commission shall review the
progress reports for completeness which shall include a showing of how the
project is meeting its stated goals and performance standards. If the
representative finds that the report is deficient in showing how the project is
meeting its stated goals and performance standards, the grantee will be
notified of the deficiency and must provide a changed and corrected report
within 30 working days to avoid having the next grant payment withheld.
(c) Upon completion of the project, the grantee must make a
final written report to the Commission which final report shall include an
evaluation of the success of the project.
History Note: Authority G.S. 143-718;
Temporary Adoption Eff. May
15, 2002;
Eff. April 15, 2003;
Amended Eff. December 1, 2008;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
02 NCAC 57 .0309 POLICIES GOVERNING QUALIFIED
AGRICULTURAL PROGRAM GRANTS
(a) Grantees must keep financial
and other records of the grant project for five years and must comply with
audit requests. If the Commission determines that the size of the grant or the
performance or alleged non-performance of the grantee compels it, the
Commission may require a compliance audit of the grant.
(b) All grant applications,
attachments to grant applications and written reports received by the
Commission are public records, unless determined otherwise by court order, or
other applicable law.
History Note: Authority G.S.
143-718;
Temporary Adoption Eff. May
15, 2002;
Eff. April 15, 2003;
Pursuant to G.S. 150B-21.3A, rule is necessary without
substantive public interest Eff. October 24, 2015.
