Retired and Senior Volunteer Program

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 1209 and 2553

RIN 3045-AA19

Retired and Senior Volunteer Program

AGENCY: Corporation for National and Community Service.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Corporation for National and Community Service

(hereinafter the ``Corporation'') proposes to amend the regulations

governing the administration of the Retired and Senior Volunteer

Program (RSVP). These amendments will: implement changes in the

program's authorizing legislation; establish minimum program

requirements with greater clarity; update program operations to make

them responsive to changes that have occurred since the regulations

were last published; consolidate requirements from outdated sources

into one user friendly document; balance increased flexibility with

increased responsibility and accountability at the local level; and

incorporate new concepts of programming to highlight the

accomplishments and impact of senior service.

The format used is designed to make the requirements easy for local

sponsors and project managers to understand. It integrates related

topics under one heading for easy reference.

Upon adoption, the proposed amendments will supersede the old

ACTION regulations, and RSVP Operations Handbook 4700 dated May 1989.

DATES: Comments must be submitted on or before November 2, 1998.

ADDRESSES: Comments should be sent to the Corporation for National

Service, Director, National Senior Service Corps, 1201 New York Avenue,

NW., Washington, DC 20525.

FOR FURTHER INFORMATION CONTACT: John Keller, (202) 606-5000 ext 285.

SUPPLEMENTARY INFORMATION: The requirements governing the

administration of RSVP projects are currently embodied in two

documents: 45 CFR Part 1209 which was last published in the Federal

Register on June 10, 1983, and the RSVP Operations Handbook. The

proposed amendments will combine all minimum program requirements in

just one document to make it easier for interested parties to secure

basic program information.

The proposed amendments include modifications to current program

requirements including those applicable to: the responsibilities of a

RSVP sponsor, community participation in local project operations,

full-time project director, authority to approve grants, waiver of non-

federal support, and compensation for service.

The proposed amendments also reflect changes in the program's

administrative structure resulting from the merger of the former ACTION

agency into the Corporation in April 1994.

Regulatory Flexibility Act and Unfunded Mandate Reform Act

The General Counsel, in accordance with the Regulatory Flexibility

Act (5 U.S.C. 606(b)), has reviewed this regulation and by approving

certifies that this proposed rule will not have a significant impact on

small business entities.

Under the Unfunded Mandates Reform Act of 1995, the Corporation

certifies that this proposed rule does not include any Federal mandate

that may result in the expenditure by State, local, and tribal

governments, in the aggregate, or by the private sector, of

$100,000,000 or more (adjusted annually for inflation) in any one year.

Paperwork Reduction Act of 1995

These proposed regulations have been examined under the Paperwork

Reduction Act of 1995 and have been found to contain no information

collection requirements.

Intergovernmental Review

This program is subject to the requirements of Executive Order

12372.

[[Page 46973]]

The objective of the Executive order is to foster an intergovernmental

partnership and strengthened federalism by relying on processes

developed by State and local governments for coordination and review of

proposed Federal financial assistance.

In accordance with the order, this document is intended to provide

early notification of the Corporation's specific plans and actions for

this program.

Executive Order 12866

This regulation has been drafted and reviewed in accordance with

Executive Order 12866. The Office of Management and Budget has reviewed

this rule and has determined that this rule is not a ``significant

regulatory action'' under Executive Order 12866, section 3(f),

Regulatory Planning and Review.

Participation in the Rulemaking

The RSVP Program Council, a group established to provide advice to

the Corporation on program related issues, was consulted, reviewed and

gave recommendations on initial drafts of the proposed regulations.

Council membership is comprised of RSVP project staff and sponsor

representatives, as well as selected staff from the Corporation's field

offices. A similar opportunity was given to all Corporation field

staff, a group that plays an important role in the implementation of

program regulations.

Distribution Table

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New 45 CFR

Old 45 CFR Part 1209 Part 2553

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1209.1-1................................................... 2553.11

1209.2-1................................................... 2553.22

1209.3-1................................................... 2553.31

1209.4-1................................................... 2553.41

1209.5-1................................................... 2553.51

2553.61

2553.71

2553.81

2553.91

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List of Subjects

45 CFR Part 1209

Aged, Government contracts, Grant programs--social programs,

Reporting and recordkeeping requirements, Volunteers.

45 CFR Part 2553

Aged, Grant programs--social programs, Volunteers.

Accordingly, and under the authority of 42 U.S.C. 12501 et seq.,

the Corporation proposes to amend 45 CFR chapters XII and XXV as

follows:

PART 1209--[REDESIGNATED AS PART 2553]

1. Part 1209 in 45 CFR chapter XII is redesignated as part 2553 in

45 CFR chapter XXV and is revised to read as follows:

PART 2553--THE RETIRED AND SENIOR VOLUNTEER PROGRAM

Subpart A--General

Sec.

2553.11 What is the Retired and Senior Volunteer Program?

2553.12 Definitions.

Subpart B--Eligibility and Responsibilities of a Sponsor

2553.21 Who is eligible to serve as a sponsor?

2553.22 What are the responsibilities of a sponsor?

2553.23 What are a sponsor's program responsibilities?

2553.24 What are a sponsor's responsibilities for securing

community participation?

2553.25 What are a sponsor's administrative responsibilities?

2553.26 May a sponsor administer more than one program grant from

the Corporation?

Subpart C--Suspension, Termination and Denial of Refunding

2553.31 What are the rules on suspension, termination and denial of

refunding of grants?

Subpart D--Eligibility, Cost Reimbursements and Volunteer Assignments

2553.41 Who is eligible to be a RSVP volunteer?

2553.42 Is a RSVP volunteer a federal employee, an employee of the

sponsor or of the volunteer station?

2553.43 What cost reimbursements are provided to RSVP volunteers?

2553.44 May cost reimbursements received by a RSVP volunteer be

subject to any tax or charge, treated as wages or compensation, or

affect eligibility to receive assistance from other programs?

Subpart E--Volunteer Terms of Service

2553.51 What are the terms of service of a RSVP volunteer?

2553.52 Under what circumstances may a RSVP volunteer's service be

terminated?

Subpart F--Responsibilities of a Volunteer Station

2553.61 When may a sponsor serve as a volunteer station?

2553.62 What are the responsibilities of a volunteer station?

Subpart G--Application and Fiscal Requirements

2553.71 Application and award process.

2553.72 Project funding requirements.

2553.73 Grants management requirements.

Subpart H--Non-Corporation Funded Projects

2553.81 Under what conditions may an agency or organization sponsor

a RSVP project without Corporation funding?

2553.82 What benefits are a non-Corporation funded project entitled

to?

2553.83 What financial obligation does the Corporation incur for

non-Corporation funded projects?

2553.84 What happens if a non-Corporation funded sponsor does not

comply with the Memorandum of Agreement?

Subpart I--Restrictions and Legal Representation

2553.91 What legal limitations apply to the operation of the RSVP

Program and to the expenditure of grant funds?

2553.92 What legal coverage does the Corporation make available to

RSVP volunteers.

Authority: 42 U.S.C. 4950 et seq., 5001.

Subpart A--General

Sec. 2553.11 What is the Retired and Senior Volunteer Program?

The Retired and Senior Volunteer Program (RSVP) provides grants to

qualified agencies and organizations to engage persons 55 and older in

volunteer service roles, matching their skills and personal interests

to help meet significant community needs.

Sec. 2553.12 Definitions.

(a) Act. The Domestic Volunteer Service Act of 1973 as amended,

Pub. L. 93-113, Oct. 1, 1973, 87 Stat. 396, 42 U.S.C. 4950 et seq.

(b) Adequate Staffing Level. The number of project staff or full-

time equivalent needed by a sponsor to manage NSSC project operations

considering such factors as: number of budgeted volunteers, number of

volunteer stations, and the size of the service area.

(c) Assignment. The activities, functions or responsibilities to be

performed by volunteers identified in a written outline or description.

(d) Budget Period. The time interval for which a project grant is

awarded, as specified in the Notice of Grant Award (NGA). This is

usually for 12 months.

(e) Chief Executive Officer. The Chief Executive Officer of the

Corporation appointed under the Trust Act.

(f) Corporation. The Corporation for National and Community Service

established under the Trust Act. The Corporation is also sometimes

referred to as CNCS.

(g) Cost Reimbursements. Reimbursements budgeted as Volunteer

Expenses and provided to volunteers to cover incidental costs, meals,

transportation, volunteer insurance, and recognition to enable them to

serve without cost to themselves.

[[Page 46974]]

(h) Letter of Agreement. A written agreement between a volunteer

station, the sponsor, and person(s) served or the person legally

responsible for that person. It authorizes the assignment of a RSVP

volunteer in the home of a client, defines RSVP volunteer activities,

and specifies supervision arrangements.

(i) Memorandum of Understanding. A written statement prepared and

signed by the RSVP project sponsor and the volunteer station that

identifies project requirements, working relationships and mutual

responsibilities.

(j) National Senior Service Corps (NSSC). The collective name for

the Foster Grandparent Program (FGP), the Retired and Senior Volunteer

Program (RSVP), and the Senior Companion Program (SCP), and

Demonstration Programs established under Parts A, B, and E, Title II of

the Act. NSSC is also referred to as the ``Senior Corps'.

(k) Non-Corporation Support (Required). The percentage share of

non-Federal cash and in-kind contributions required to be raised by the

sponsor in support of the grant, including non-Corporation federal,

state and local governments and privately raised contributions.

(l) Non-Corporation Support (Excess). The amount of non-Federal

cash and in-kind contributions generated by a sponsor in excess of the

required percentage.

(m) Notice of Grant Award (NGA). The official grant document signed

by the Corporation and the sponsor. It documents the Corporation's

obligation to provide financial support to the sponsor, and the

sponsor's commitment to fulfill specific programmatic objectives and

financial obligations.

(n) Project. The locally planned and implemented RSVP activity or

set of activities in a service area as agreed upon between a sponsor

and the Corporation.

(o) Qualified Individual With a Disability. An individual with a

disability who, with or without reasonable accommodation, can perform

the essential functions of a volunteer position that such individual

holds or desires. For purposes of the Americans With Disabilities Act,

consideration shall be given to a sponsor's or volunteer station's

judgment as to what functions of a volunteer position are essential. If

a sponsor has prepared a written description before advertising or

interviewing applicants for the position, the written description shall

be considered evidence of the essential functions of the volunteer

position. This definition includes an individual with a physical or

mental impairment as defined in section 101(8) of the Americans With

Disabilities Act of 1990 (42 U.S.C. 12111(8)).

(p) Service Area. The geographically defined area approved in the

grant application, in which RSVP volunteers are recruited, enrolled,

and placed on assignments.

(q) Sponsor. A public agency or private nonprofit organization that

is responsible for the operation of a RSVP project.

(r) Trust Act. The National and Community Service Trust Act of

1993, Public Law 103-82, Sept. 21, 1993, 107 Stat. 785.

(s) United States and States. Each of the several States, the

District of Columbia, the U. S. Virgin Islands, the Commonwealth of

Puerto Rico, Guam and American Samoa, and Trust Territories of the

Pacific Islands.

(t) Volunteer Station. A public agency, nonprofit private

organization or proprietary health care agency or organization that

accepts responsibility for assignment, supervision and training of RSVP

volunteers. Each volunteer station must be licensed or otherwise

certified, when required, by appropriate state or local government.

Private homes are not volunteer stations.

Subpart B--Eligibility and Responsibilities of a Sponsor

Sec. 2553.21 Who is eligible to serve as a sponsor?

The Corporation awards grants to public agencies, including Indian

tribes and non-profit private organizations, in the United States that

have the authority to accept and the capability to administer a RSVP

project.

Sec. 2553.22 What are the responsibilities of a sponsor?

(a) A sponsor is responsible for fulfilling all project management

requirements necessary to accomplish the purposes of the RSVP program

as specified in the Act.

(b) A sponsor shall not delegate or contract these responsibilities

to another entity.

(c) A sponsor shall comply with all regulations contained in this

part, policies, and grant provisions prescribed by the Corporation.

Sec. 2553.23 What are a sponsor's program responsibilities?

A sponsor shall:

(a) Focus RSVP resources to have a positive impact on critical

human and social needs within the project service area.

(b) Assess on an ongoing basis or collaborate with other community

organizations in the assessment of the needs of the community or

service area and develop strategies to respond to those needs using the

resources of RSVP volunteers.

(c) Develop and manage a system of volunteer stations to provide a

wide range of placement opportunities that appeal to persons age 55 and

over by:

(1) Insuring that a volunteer station is a public or non-profit

private organization or an eligible proprietary health care agency

capable of serving as a volunteer station for the placement of RSVP

volunteers to meet locally identified needs;

(2) Ensuring the placement of RSVP volunteers is governed by a

Memorandum of Understanding:

(i) That is negotiated prior to placement;

(ii) That specifies the mutual responsibilities of the station and

sponsor; and

(iii) That is renegotiated at least every three years; and

(3) Annually assessing the placement of RSVP volunteers to ensure

the safety of volunteers and their impact on meeting the needs of the

community.

(d) Consider the demographic make-up of the project service area in

the enrollment of RSVP volunteers, making special efforts to recruit

eligible individuals from minority groups, persons with disabilities

and under represented groups.

(e) Encourage the most efficient and effective use of RSVP

volunteers by coordinating project services and activities with related

national, state and local programs, including other Corporation

programs.

(f) Develop, and regularly update, a strategic plan that includes

the sponsor's vision and goals for the project.

(g) Develop, and annually update, a plan for promoting service by

older adults within the project service area.

(h) Conduct an annual assessment of the accomplishments and impact

of the project and how they meet the identified needs and problems of

the community.

(i) Provide RSVP volunteers with cost reimbursements specified in

Sec. 2553.43.

Sec. 2553.24 What are a sponsor's responsibilities for securing

community participation?

(a) A sponsor shall secure community participation in local project

operation by establishing an Advisory Council or a similar

organizational structure with a membership that includes persons:

(1) Knowledgeable about human and social needs of the community;

(2) Competent in the field of community service and volunteerism;

[[Page 46975]]

(3) Capable of helping the sponsor meet its administrative and

program responsibilities including fund-raising, publicity and impact

programming;

(4) With an interest in and knowledge of the capability of older

adults; and (5) Of a diverse composition that reflects the demographics

of the service area.

(b) The sponsor determines how this participation shall be secured,

consistent with the provisions of paragraphs (a)(1) through (a)(5) of

this section.

Sec. 2553.25 What are a sponsor's administrative responsibilities?

A sponsor shall:

(a) Assume full responsibility for securing maximum and continuing

community financial and in-kind support to operate the project

successfully.

(b) Develop a written delegation of authority that carefully

defines and clearly delineates project roles and responsibilities

retained by the sponsor from those delegated to project staff.

(c) Provide levels of staffing and resources appropriate to

accomplish the purposes of the project and carry out project management

responsibilities outlined in the above mentioned delegation of

authority and provide necessary administrative and fiscal support to

such staff.

(d) Employ a full-time project director to accomplish program

objectives and manage the functions and activities delegated to project

staff for NSSC program(s) within its control. A full-time project

director shall not serve concurrently in another capacity, paid or

unpaid, during established working hours. The project director may

participate in activities to coordinate program resources with those of

related local agencies, boards or organizations. A sponsor may

negotiate the employment of a part-time project director with the

Corporation when it can justify that such an arrangement will result in

a proportionate cost savings in Federal and Non-federal funds without

adversely affecting the size, scope and quality of project operations.

(e) Consider all project staff as sponsor employees subject to its

personnel policies and procedures.

(f) Compensate project staff at a level that is comparable with

similar staff positions in the sponsor organization and/or project

service area.

(g) Establish risk management policies and procedures covering

project and RSVP activities. This includes provision of appropriate

insurance coverage for RSVP volunteers and vehicles used in the

project.

(h) Establish record keeping and reporting systems in compliance

with Corporation requirements that ensure quality of program and fiscal

operations, facilitate timely and accurate compliance; and cooperate

with Corporation evaluation and data collection efforts.

(i) Comply with and ensure that all volunteer stations comply with,

all applicable civil rights laws and regulations, including providing

reasonable accommodation to qualified individuals with disabilities.

Sec. 2553.26 May a sponsor administer more than one program grant from

the Corporation?

A sponsor may administer more than one Corporation program grant.

Subpart C--Suspension, Termination and Denial of Refunding

Sec. 2553.31 What are the rules on suspension, termination and denial

of refunding of grants?

(a) The Chief Executive Officer or designee is authorized to

suspend further payments or to terminate payments under any grant

providing assistance under the Act whenever he/she determines there is

a material failure to comply with applicable terms and conditions of

the grant. The Chief Executive Officer shall prescribe procedures to

insure that:

(1) Assistance under the Act shall not be suspended for failure to

comply with applicable terms and conditions, except in emergency

situations for thirty days;

(2) An application for refunding under the Act may not be denied

unless the recipient has been given:

(i) Notice at least 75 days before the denial of such application

of the possibility of such denial and the grounds for any such denial;

and

(ii) Opportunity to show cause why such action should not be taken;

(3) In any case where an application for refunding is denied for

failure to comply with the terms and conditions of the grant, the

recipient shall be afforded an opportunity for an informal hearing

before an impartial hearing officer, who has been agreed to by the

recipient and the Corporation; and

(4) Assistance under the Act shall not be terminated for failure to

comply with applicable terms and conditions unless the recipient has

been afforded reasonable notice and opportunity for a full and fair

hearing.

(b) In order to assure equal access to all recipients, such

hearings or other meetings as may be necessary to fulfill the

requirements of this section shall be held in locations convenient to

the recipient agency.

(c) The procedures for suspension, termination, and denial of

refunding, that apply to the Retired and Senior Volunteer Program are

specified in 45 CFR Part 1206.

Subpart D--Eligibility, Cost Reimbursements and Volunteer

Assignments

Sec. 2553.41 Who is eligible to be a RSVP volunteer?

(a) To be an RSVP volunteer, an individual must:

(1) Be 55 years of age or older;

(2) Agree to serve without compensation;

(3) Reside in or nearby the community served by RSVP;

(4) Agree to abide by all requirements as set forth in this part.

(b) Eligibility to serve as a RSVP volunteer shall not be

restricted on the basis of formal education, experience, race,

religion, color, national origin, sex, age, handicap or political

affiliation.

Sec. 2553.42 Is a RSVP volunteer a federal employee, an employee of

the sponsor or of the volunteer station?

RSVP volunteers are not employees of the sponsor, the volunteer

station, the Corporation, or the Federal Government.

Sec. 2553.43 What cost reimbursements are provided to RSVP volunteers?

RSVP volunteers are provided the following cost reimbursements

within the limits of the project's available resources:

(a) Transportation. RSVP volunteers may receive assistance with the

cost of transportation to and from volunteer assignments and official

project activities, including orientation and training, meetings, and

recognition events. On-the-job or assignment related transportation

costs are the responsibility of the volunteer station or a third party.

(b) Meals. RSVP volunteers may receive assistance with the cost of

meals taken while on assignment.

(c) Recognition. RSVP volunteers are provided recognition for their

service.

(d) Insurance. A RSVP volunteer is provided with the Corporation-

specified minimum levels of insurance as follows:

(1) Accident insurance. Accident insurance covers RSVP volunteers

for personal injury during travel between their homes and places of

assignment, during their volunteer service, during meal periods while

serving as a volunteer, and while attending project sponsored

activities. Protection shall be provided against claims in excess of

any benefits or services for medical care or treatment available to the

volunteer from other sources.

[[Page 46976]]

(2) Personal liability insurance. Protection is provided against

claims in excess of protection provided by other insurance. It does not

include professional liability coverage.

(3) Excess automobile liability insurance. (i) For RSVP volunteers

who drive in connection with their service, protection is provided

against claims in excess of the greater of either:

(A) Liability insurance volunteers carry on their own automobiles;

or

(B) The limits of applicable state financial responsibility law, or

in its absence, levels of protection to be determined by the

Corporation for each person, each accident, and for property damage.

(ii) RSVP volunteers who drive their personal vehicles to or on

assignments or project-related activities shall maintain personal

automobile liability insurance equal to or exceeding the levels

established by the Corporation.

Sec. 2553.44 May cost reimbursements received by a RSVP volunteer be

subject to any tax or charge, treated as wages or compensation, or

affect eligibility to receive assistance from other programs?

No. RSVP volunteers' cost reimbursements are not subject to any tax

or charge and are not treated as wages or compensation for the purposes

of unemployment insurance, worker's compensation, temporary disability,

retirement, public assistance, or similar benefit payments or minimum

wage laws. Cost reimbursements are not subject to garnishment, do not

reduce or eliminate the level of or eligibility for assistance or

services a volunteer may be receiving under any governmental program.

Subpart E--Volunteer Terms of Service

Sec. 2553.51 What are the terms of service of a RSVP volunteer?

A RSVP volunteer shall serve multiple hours a week, on a regular

basis, or intensively on short-term assignments. An active volunteer

must serve at least once a month.

Sec. 2553.52 Under what circumstances may a RSVP volunteer's service

be terminated?

(a) A sponsor may remove a RSVP volunteer from service for cause.

Grounds for removal include but are not limited to: extensive and

unauthorized absences; misconduct; inability to perform assignments;

and failure to accept supervision.

(b) The sponsor shall establish appropriate policies on service

termination as well as procedures for appeal from such adverse action.

Subpart F--Responsibilities of a Volunteer Station

Sec. 2553.61 When may a sponsor serve as a volunteer station?

In areas where needs have been identified and no volunteer station

is available, the RSVP sponsor may assume responsibility to implement

new programming initiatives on a temporary basis for up to three years.

Sec. 2553.62 What are the responsibilities of a volunteer station?

(a) A volunteer station shall undertake the following

responsibilities in support of RSVP volunteers:

(1) Develop volunteer assignments that impact critical human and

social needs, and regularly assess those assignments for continued

appropriateness;

(2) Assign staff member responsible for day to day oversight of the

placement of RSVP volunteers within the volunteer station and for

assessing the impact of volunteers in addressing community needs;

(3) Obtain a Letter of Agreement for an RSVP volunteer assigned in-

home. In cases where client confidentiality needs to be protected, a

modified document that does not reveal client identities shall be used;

(4) Keep records and prepare reports as required;

(5) Comply with all applicable civil rights laws and regulations

including reasonable accommodation for RSVP volunteers with

disabilities; and

(6) Provide assigned RSVP volunteers the following support:

(i) Orientation to station and appropriate in-service training to

enhance performance of assignments;

(ii) Resources required for performance of assignments including

reasonable accommodation;

(iii) Supervision while on assignment;

(iv) Appropriate recognition; and

(v) Provide for the safety of RSVP volunteers assigned to it.

(b) A volunteer station shall undertake such other responsibilities

as may be necessary to the successful performance of RSVP volunteers in

their assignments or as agreed to in the Memorandum of Understanding.

Subpart G--Application and Fiscal Requirements

Sec. 2553.71 Application and award process.

(a) When may an eligible organization apply for a grant?

(1) An eligible organization may file an application for a RSVP

grant at any time.

(2) Before submitting an application, an applicant shall determine

the availability of funds.

(3) The Corporation may also solicit grant applicants. Applicants

solicited by the Corporation are not assured of selection or approval

and may have to compete with other solicited or unsolicited applicants.

(b) What must an eligible organization include in a grant

application?

(1) An applicant shall complete standard forms prescribed by the

Corporation.

(2) The applicant shall comply with the provisions of Executive

Order 12372, the ``Intergovernmental Review of Federal Programs,'' (3

CFR, 1982 Comp., p. 197) in 45 CFR part 1233, and any other applicable

requirements.

(c) Who reviews the merits of a RSVP application? The Corporation

reviews and determines the merit of an application by its

responsiveness to published guidelines and to the overall purpose and

objectives of the program. When funds are available, the Corporation

awards a grant in writing to each applicant whose grant proposal

provides the best potential for serving the purpose of the program.

(d) How is a RSVP project grant awarded?

(1) The Corporation awards the grant to a sponsor in writing. The

award is documented by a Notice of Grant Award (NGA).

(2) The Corporation and the sponsoring organization are parties to

the NGA. The NGA will document the sponsor's commitment to fulfill

specific programmatic objectives and financial obligations. It will

document the extent of the Corporation's obligation to provide

financial support to the sponsor.

(e) What happens if the Corporation rejects an application? The

Corporation will return to the applicant an application that is not

approved for funding, with an explanation of the Corporation's

decision.

(f) For what period of time does the Corporation award a grant? The

Corporation awards a RSVP grant for a period specified in the NGA and

this is usually a budget period of 12 months duration.

Sec. 2553.72 Project funding requirements.

(a) Is non-Corporation support required?

(1) A Corporation grant may be awarded to fund up to 90 percent of

the total project cost in the first year, 80 percent in the second

year, and 70 percent in the third and succeeding years.

(2) A sponsor is responsible for identifying non-Corporation funds

[[Page 46977]]

which may include in-kind contributions.

(b) Under what circumstances does the Corporation allow less than

the percentage identified in paragraph (a) of this section? The

Corporation may allow exceptions to the local support requirement

identified in paragraph (a) of this section in cases of demonstrated

need such as:

(1) Initial difficulties in the development of local funding

sources during the first three years of operations; or

(2) An economic downturn, the occurrence of a natural disaster, or

similar events in the service area that severely restricts or reduces

sources of local funding support; or

(3) The unexpected discontinuation of local support from one or

more sources that a project has relied on for a period of years.

(c) May the Corporation restrict how a sponsor uses locally

generated contributions in excess of the non-Corporation support

required? Whenever locally generated contributions to RSVP projects are

in excess of the non-Corporation funds required (10 percent of the

total cost in the first year, 20 percent in the second year and 30

percent in the third and succeeding years), the Corporation may not

restrict the manner in which such contributions are expended provided

such expenditures are consistent with the provisions of the Act.

(d) Are program expenditures subject to audit? All expenditures by

the grantee of Federal and Non-Federal funds, including expenditures

from excess locally generated contributions, are subject to audit by

the Corporation, its Inspector General, or their authorized agents.

(e) How much of the grant must be budgeted to pay volunteer

expenses or cost reimbursements? The total volunteer expenses and cost

reimbursements for RSVP volunteers, including transportation, meals,

recognition and insurance shall be an amount equal to at least 25%

percent of the Corporation funds in the grant award. Corporation and

non-Corporation resources may be used to make up this sum.

Sec. 2553.73 Grants management requirements.

What rules govern a sponsor's management of grants?

(a) A sponsor shall manage a grant awarded in accordance with:

(1) The Act;

(2) Regulations in this part;

(3) 45 CFR Part 2541, ``Uniform Requirements for Grants and

Cooperative Agreements with State and Local Governments'', or 45 CFR

Part 2543, ``Grants and Agreements with Institutions of Higher

Education, Hospitals, and Other Non-Profit Organizations';

(4) The following OMB Circulars, as appropriate A-21, ``Cost

Principles for Institutions of Higher Education'', A-87, ``Cost

Principles for State and Local Governments'', A-122, ``Cost Principles

for Non-Profit Organizations'', and A-133, ``Audits of Institutions of

Higher Education and Other Non-Profit Organizations'' (OMB circulars

are available at the following address: Office of Administration,

Publication Office, 725 17th Street, NW, Room 2200, Washington, DC

20503); and

(5) Other applicable Corporation requirements.

(b) Project support provided under a Corporation grant shall be

furnished at the lowest possible cost consistent with the effective

operation of the project.

(c) Project costs for which Corporation funds are budgeted must be

justified as being essential to project operation.

(d) Project funds shall not be used to reimburse volunteers for

expenses, including transportation costs, incurred while performing

their volunteer assignments. Volunteers on assignment during a normal

meal period may be reimbursed for the meal cost. Equipment or supplies

for volunteers on assignment are not allowable costs. Assignment

related costs of transportation, equipment, supplies, etc. are the

responsibility of the volunteer station or a third party.

(e) Volunteer expense items, including transportation, meals,

recognition activities and items purchased at the volunteers own

expense that are not reimbursed, are not allowable as contributions to

the non-Federal share of the budget.

(f) Costs of other insurance not required by program policy, but

maintained by a sponsor for the general conduct of its activities are

allowable with the following limitations:

(1) Types and extent of and cost of coverage are according to sound

institutional and business practices;

(2) Costs of insurance or a contribution to any reserve covering

the risk of loss of or damage to Government-owned property are

unallowable unless the government specifically requires and approves

such costs; and

(3) The cost of insurance on the lives of officers, trustees or

staff is unallowable except where such insurance is part of an employee

plan which is not unduly restricted.

(g) Costs to bring a sponsor into basic compliance with

accessibility requirements for individuals with disabilities are not

allowable costs.

(h) Payments to settle discrimination allegations, either

informally through a settlement agreement or formally as a result of a

decision finding discrimination, are not allowable costs.

(i) Written Corporation State Office approval/concurrence is

required for the following changes in the approved grant:

(1) Change in the approved service area.

(2) Transfer of budgeted line items from Volunteer Expenses to

Support Expenses. This requirement does not apply if the 25 percent

cost reimbursement ratio is maintained.

Subpart H--Non-Corporation Funded Projects

Sec. 2553.81 Under what conditions may an agency or organization

sponsor a RSVP project without Corporation funding?

An eligible agency or organization who wishes to sponsor a RSVP

project without Corporation funding, must sign a Memorandum of

Agreement with the Corporation that:

(a) Certifies its intent to comply with all Corporation

requirements for the Retired and Senior Volunteer Program; and

(b) Identifies responsibilities to be carried out by each party.

Sec. 2553.82 What benefits are a non-Corporation funded project

entitled to?

(a) All technical assistance and materials provided to Corporation-

funded RSVP projects; and

(b) The application of the provisions of Section 404 (f) (1) and

Section 418 of the Act.

Sec. 2553.83 What financial obligation does the Corporation incur for

non-Corporation funded projects?

Entry into a Memorandum of Agreement with, or issuance of a NGA to

the sponsor of a non-Corporation funded project does not create a

financial obligation on the part of the Corporation for any costs

associated with the project.

Sec. 2553.84 What happens if a non-Corporation funded sponsor does not

comply with the Memorandum of Agreement?

A non-Corporation funded project sponsor's noncompliance with the

Memorandum of Agreement shall result in suspension or termination of

the Corporation's agreement and all benefits specified in Sec. 2553.82.

[[Page 46978]]

Subpart I--Restrictions and Legal Representation

Sec. 2553.91 What legal limitations apply to the operation of the RSVP

Program and to the expenditure of grant funds?

(a) Political activities. (1) No part of any grant shall be used to

finance, directly or indirectly, any activity to influence the outcome

of any election to public office, or any voter registration activity.

(2) No project shall be conducted in a manner involving the use of

funds, the provision of services, or the employment or assignment of

personnel in a matter supporting or resulting in the identification of

such project with:

(i) any partisan or nonpartisan political activity associated with

a candidate, or contending faction or group, in an election; or

(ii) any activity to provide voters or prospective voters with

transportation to the polls or similar assistance in connection with

any such election; or

(iii) any voter registration activity, except that voter

registration applications and nonpartisan voter registration

information may be made available to the public at the premises of the

sponsor, but, in making such information available, employees of the

sponsor shall not express preferences or seek to influence decisions

concerning any candidate, political party, election issue, or voting

decision.

(3) The sponsor shall not use grant funds in any activity for the

purpose of influencing the passage or defeat of legislation or

proposals by initiative petition, except:

(i) In any case in which a legislative body, a committee of a

legislative body, or a member of a legislative body requests any

volunteer in, or employee of such a program to draft, review or testify

regarding measures or to make representation to such legislative body,

committee or member; or

(ii) In connection with an authorization or appropriations measure

directly affecting the operation of the RSVP Program.

(b) Nondisplacement of Employed Workers. A RSVP volunteer shall not

perform any service or duty or engage in any activity which would

otherwise be performed by an employed worker or which would supplant

the hiring of or result in the displacement of employed workers, or

impair existing contracts for service.

(c) Compensation For Service. (1) An agency or organization to

which NSSC volunteers are assigned, or which operates or supervises any

NSSC program shall not request or receive any compensation from NSSC

volunteers or from beneficiaries for services of NSSC volunteers.

(2) This section does not prohibit a sponsor from soliciting and

accepting voluntary contributions from the community at large to meet

its local support obligations under the grant; or, from entering into

agreements with parties other than beneficiaries to support additional

volunteers beyond those supported by the Corporation grant.

(3) A RSVP volunteer station may contribute to the financial

support of the RSVP Program. However, this support shall not be a

required precondition for a potential station to obtain or retain RSVP

volunteers. If a volunteer station agrees to provide funds to support

additional volunteers or pay for other volunteer support costs, the

agreement shall be stated in a written memorandum of agreement.

(4) The sponsor shall withdraw services if the station's inability

to provide monetary or in-kind support to the project diminishes or

jeopardizes the project's financial capabilities to fulfill its

obligations.

(5) Under no circumstances shall a RSVP volunteer receive a fee for

service from service recipients, their legal guardian, members of their

family, or friends.

(d) Labor and Anti-Labor Activity. The sponsor shall not use grant

funds directly or indirectly to finance labor or anti-labor

organization or related activity.

(e) Fair Labor Standards. A sponsor that employs laborers and

mechanics for construction, alteration, or repair of facilities shall

pay wages at prevailing rates as determined by the Secretary of Labor

in accordance with the Davis-Bacon Act, as amended.

(f) Nondiscrimination. A sponsor or sponsor employee shall not

discriminate against a RSVP volunteer on the basis of race, color,

national origin, sex, age, religion, or political affiliation, or on

the basis of disability, if the volunteer with a disability is

qualified to serve.

(g) Religious activities. A RSVP volunteer or a member of the

project staff funded by the Corporation shall not give religious

instruction, conduct worship services or engage in any form of

proselytization as part of his/her duties.

(h) Nepotism. Persons selected for project staff positions shall

not be related by blood or marriage to other project staff, sponsor

staff or officers, or members of the sponsor Board of Directors, unless

there is written concurrence from the Advisory Council or community

group established by the sponsor under subpart B of this part, and with

notification to the Corporation.

Sec. 2553.92 What legal coverage does the Corporation make available

to RSVP volunteers?

It is within the Corporation's discretion to determine if Counsel

is employed and counsel fees, court costs, bail and other expenses

incidental to the defense of a RSVP volunteer is paid in a criminal,

civil or administrative proceeding, when such a proceeding arises

directly out of performance of the volunteer's activities. The

circumstances under which the Corporation may pay such expenses are

specified in 45 CFR part 1220.

Dated: August 25, 1998.

Thomas L. Bryant,

Acting General Counsel.

[FR Doc. 98-23302 Filed 9-2-98; 8:45 am]

BILLING CODE 6050-28-P