Chapter 3704-2 | Grants and Project Costs

Rule 3704-2-01 | Definitions.

• Effective: December 23, 2023
• Promulgated Under: 119.03

The following definitions shall apply to all rules promulgated by the commission on minority health, unless a specific paragraph explicitly defines or uses the word or term in a different manner:

(A) "Commission" means the commission on minority health.

(B) "Community-based health groups" mean any public or private nonprofit organizations providing services in Ohio whose primary functions include health awareness, health promotion, health risk reduction, health education, disease prevention; and/or whose primary function is to serve minority groups; and which are located in or have established ties to minority communities.

(C) "Minority groups" mean residents of Ohio who are economically disadvantaged members of the following groups: Blacks/African Americans, Native American Indians, Hispanics/Latino Americans and Asian American Pacific Islanders.

(D) "Administrative Compliance" means program or fiscal review to determine grantee compliance to the conditions of the grant. This review can include on site or desktop review as deemed necessary by the commission.

Last updated December 27, 2023 at 7:40 AM

Supplemental Information

Authorized By: 3701.78
Amplifies: 121.22
Five Year Review Date: 12/23/2028
Prior Effective Dates: 7/1/2000

Rule 3704-2-02 | Grantee criteria for funding.

• Effective: October 18, 2013
• Promulgated Under: 119.03

(A) Priority shall be given to grant applicants who develop services in accordance with the mission of the commission pursuant to rule 3704-1-02 of the Administrative Code. To receive consideration for funding, applicants must demonstrate:

(1) That at least twenty per cent of its funds and/or resources are received from sources other than grants awarded by the commission on minority health;

(2) Be a public or private nonprofit organization;

(3) Develop a plan which establishes a management board for the administration of the grant, composed of proportionate representation of the population to be served and submit said plan with the grant application;

(4) Provide services in close proximity to minority communities or include minority communities in their stated service area; and

(B) The following are ineligible for funding consideration:

(1) Individuals.

(2) National organizations. Local chapters or affiliates of national organizations may be eligible if they meet the definition of a "community-based health group" in paragraph (B) of rule 3704-2-01 of the Administrative Code.

(3) Organizations applying for the sole purpose of acquiring funds to supplement existing programs without any plan for enlarging their scope of work.

(4) Organizations in the process of creating or starting a community-based health group for the sole purpose of applying for grants from the commission.

Last updated February 21, 2024 at 11:44 AM

Supplemental Information

Authorized By: 119, 3701.78
Amplifies: 121.22
Five Year Review Date: 2/1/2029

Rule 3704-2-03 | Notification of availability of funds.

• Effective: January 29, 2024
• Promulgated Under: 119.03

The commission shall notify prospective grantees that grant dollars for the year and biennium are available by:

(A) Distributing requests for proposals to those organizations who are subscribed to our general listserv. To subscribe, please go to our website and click on stay connected at the bottom of the page. The request for proposal in any fiscal year shall clearly delineate the following:

(1) Priority areas for funding during the grant period;

(2) Limitations on utilization of resources or activities; and

(3) The manner in which applications will be reviewed and the criteria utilized for funding decisions;

(B) Placing funding announcements on our website for requests for proposals to announce the availability of funds and the process to obtain a grant application.

Last updated February 6, 2024 at 1:48 PM

Supplemental Information

Authorized By: 3701.78
Amplifies: 121.22
Five Year Review Date: 1/29/2029
Prior Effective Dates: 4/4/1988

Rule 3704-2-04 | Application process.

• Effective: October 18, 2013
• Promulgated Under: 119.03

(A) Consideration for prospective grantees shall be limited to agencies meeting the criteria set forth in rule 3704-2-02 of the Administrative Code and those who submit a completed application within the time period specified in the request for proposal. The deadline for consideration shall be based on receipt of the application in the commission office by the date and time indicated on the grant application.

A completed application must include the following documents:

(1) An internal revenue service tax exempt certificate. Agencies using the tax exemption of a national parent organization, must also submit a letter of authority to use the certificate. The letter must be on original letterhead of the parent organization and bear the original signature of the CEO of the parent organization;

(2) Evidence of compliance with Titles VI and VII of the 1964 Civil Rights Act and amendments thereto, which prohibit discrimination because of race, sex, national origin, age or color;

(3) Evidence of compliance with Section 504 of the 1973 Rehabilitation Act and any amendments thereto, which prohibit discrimination in any facet of the agency's operation; and

(4) A W-9 form.

(B) Applications submitted to the commission must contain all of the following:

(1) Goals and objectives based on defined needs which are clearly stated and measurable;

(2) Demographics of targeted populations and geographic areas to be served;

(3) An implementation plan which is specifically timelined;

(4) Itemized and quantified resources needed to complete the project;

(5) A definition of the parameters of the project in order to distinguish this project from other activities conducted by the grantee;

(6) Provide statistical information and/or graphic illustrations to verify the need for proposed activities;

(7) Precautions to be taken to assure that services are provided only to specific populations and geographic areas when required by the program;

(8) Performance indicators and procedures designed to measure accomplishment of objectives during project period; and

(9) Quantified budget information stating and justifying resources needed to perform project activities. All projects must start up within thirty days of award notification.

(C) Applicants who are ineligible for grants participation will be notified in writing by the commission.

Last updated February 21, 2024 at 11:44 AM

Supplemental Information

Authorized By: 119, 3701.78
Amplifies: 121.22
Five Year Review Date: 2/1/2029
Prior Effective Dates: 1/7/1988 (Emer.)

Rule 3704-2-07 | Payment of grant funds.

• Effective: October 18, 2013
• Promulgated Under: 119.03

(A) A notice of award or acknowledgement of terms signed by the director of the commission shall activate the grant.

(B) Acceptance of responses to substantive special conditions activates the grant.

(C) Grant payments are based on reimbursement generated on a quarterly basis. Payment will be based on the amount requested as approved in the budget portion of the project application or its subsequent revision(s).

(D) Payments may be delayed if:

(1) Quarterly reports have not been received;

(2) A budget has not been approved; or

(3) If specified special conditions have not been met by the grantee.

(E) Unless stated otherwise in the grant award, the payment cycle shall coincide with the quarterly reporting period. The initial payment to a project is usually sent during the first quarter of grant funding. Subsequent payments are processed upon receipt of quarterly reports.

(1) A quarterly (program and fiscal) report is due fifteen days after the end of the quarter.

(2) Payments should be received between the end of the second month of the next period and the middle of the third month.

(F) In specific situations or upon the request of the grantee, a project may be issued two payments in a period. The first payment begins prior to receipt of a quarterly report, up to two-thirds of the anticipated amount. The second payment is processed upon receipt of the quarterly report and contains any adjustments for the quarterly allotment. The two criteria for accepting a grantee request for this payment system are:

(1) Documentation that other funding sources are unable to contribute resources within the quarter or that there are not other funding sources to meet allowable costs; and

(2) Timely submission of quarterly reports.

(G) Warrants shall be made payable to the grantee agency and notification shall be mailed to the executive director.

Last updated February 21, 2024 at 11:44 AM

Supplemental Information

Authorized By: 119, 3701.78
Amplifies: 121.22
Five Year Review Date: 2/1/2029
Prior Effective Dates: 7/1/2000

Rule 3704-2-08 | Grants management.

• Effective: October 18, 2013
• Promulgated Under: 119.03

(A) It is the responsibility of the commission to ensure grantee financial accountability by:

(1) Reviewing program plans, budget applications, budget revisions and expenditure reports;

(2) Providing a fiscal review or contracting for an independent audit when deemed necessary;

(3) Conducting an administrative compliance review as needed during the fiscal year;

(4) Processing grant payments in a timely manner; and

(5) Ruling on the acceptability of late expenditure reports or budget revision.

(B) The grantee shall:

(1) Deposit grant funds promptly, no later than three days after receipt.

(2) Account for grant funds in accordance with sound accounting principles and expend funds only for allowable and approved costs.

(3) Provide the commission with an audit conducted by a certified public accountant within one hundred twenty days after the close of the fiscal year and make available for prompt return to the commission, unspent balance on the grant. Grant awards of twenty-five thousand dollars or less are not required to be audited unless deemed appropriate by the commission.

(C) Outstanding obligations at the end of the fiscal year which are allowable costs and legally required may be paid out of the project funds. They include accounts payable for authorized services and/or goods that benefited the funded fiscal year; such as, costs for employee services during the final pay period for a fiscal year and/or supplies which were ordered and delivered during the fiscal year but paid in the following fiscal year.

(D) Only in specific circumstances may fiscal year funds be obligated and used to pay for goods and/or services to be received after the end of the fiscal year. The grantee must request prior written approval from the commission and provide a written justification explaining the benefit of such goods or services to the project during the fiscal year.

(E) Project funds are not to be used for:

(1) Liquidation of bad debts;

(2) Contributions to a contingency fund;

(3) Entertainment;

(4) Fines, penalties, interest or other financial payments;

(5) Recovery of costs incurred under grant agreements for contributions or donations to civic causes, or

(6) Rental charges for grantee-owned space and equipment.

Last updated February 21, 2024 at 11:45 AM

Supplemental Information

Authorized By: 119, 3701.78
Amplifies: 121.22
Five Year Review Date: 2/1/2029
Prior Effective Dates: 1/7/1988 (Emer.)

Rule 3704-2-09 | Grant and subgrant closeout, suspension, and termination.

• Effective: October 17, 2013
• Promulgated Under: 119.03

(A) Definitions

(1) "Grant closeout" means the process by which the commission determines that all applicable administrative actions and all required work of the grant have been completed by the grantee and the commission.

(2) "Suspension" of a grant means temporary withdrawal of the grantee's authority to obligate grant funds pending corrective action by the grantee or a decision to terminate the grant.

(3) "Termination" of a grant means permanent withdrawal of the grantee's authority to obligate previously awarded grant funds before authority would otherwise expire. It also means the voluntary relinquishment of the authority by the grantee.

"Termination" does not include:

(a) Withdrawal of funds awarded on the basis of grantees underestimate of the unobligated balance in a prior period;

(b) Refusal by the commission to extend a grant or award additional funds;

(c) Withdrawal of the unobligated balance of the expiration of the grant; or

(d) Annulment, i.e. voiding of a grant upon determination that the award was obtained fraudulently, or was otherwise illegal or invalid from inception.

(B) Violation of terms

(1) When a grantee has materially failed to comply with the terms of a grant, the granting agency may suspend or terminate the grant, in accordance with the U.S. department of health and human services, Federal Code of Regulations, Title 45, Sections 74.60 - 74.62 or take such other remedies as may be legally available and appropriate to the circumstances.

(2) If a project or program is supported over more than one funding period, a grant may be suspended or terminated in the current period for failure to submit a report still due from a prior period.

(C) Suspensions

(1) When a grantee has materially failed to comply with the terms of a grant, the granting agency may, upon reasonable notice to the grantee, suspend the grant in whole or in part. The notice of suspension will state the reasons for the suspension, any corrective action required of the grantee and the effective date. The suspension may be made effective at once if a delayed effective date would be unreasonable considering the granting agency's responsibility to protect the state's interest. Suspensions shall remain in effect until the grantee has taken corrective action satisfactory to the granting agency, or given evidence satisfactory to the granting agency that such corrective action will be taken, or until the granting agency terminates the grant.

(2) New obligations incurred by the grantee during the suspension period will not be allowed unless the granting agency expressly authorizes them in the notice of suspension or an amendment to it. Necessary and otherwise allowable costs which the grantee could not reasonably avoid during the suspension period will be allowed if they result from obligations properly incurred by the grantee before the effective date of the suspension and not in anticipation of suspension or termination.

(3) Appropriate adjustments to payments under the suspended grant will be made either by withholding subsequent payments or by not allowing the grantee credit for disbursements made in payment of unauthorized obligations incurred during the suspension period.

(D) Termination

(1) Termination for cause.

The commission may terminate any grant in whole, or in part, at any time before the date of expiration, whenever it determines that the grantee has materially failed to comply with the terms of the grant. The commission shall promptly notify the grantee in writing of the determination and the reasons for termination, together with the effective date.

(2) Termination on other grounds.

Except as provided in paragraph (D)(1) of this rule, grants may be terminated in whole or in part as follows:

(a) By the commission with the consent of the grantee, in which case the two parties shall agree upon the termination conditions, including the effective date in the case of partial terminations, the portions to be terminated, or

(b) By the grantee, upon written notification to the commission, setting forth the reasons for such termination, the effective date, and in the case of partial terminations, the portion to be terminated. However, if, in the case of a partial termination, the commission determines that the remaining portion of the grant will not accomplish the purposes for which the grant was made, the commission may terminate the grant in its entirety under either paragraph (A) or (B)(1) of this rule.

(3) Termination of settlements.

When a grant is terminated, the grantee shall not incur new obligations for the terminated portion after the effective date, and shall cancel as many outstanding obligations as possible. The commission shall allow full credit to the grantee for the state share of non-cancelable obligations incurred by the grantee prior to termination.

Last updated February 21, 2024 at 11:45 AM

Supplemental Information

Authorized By: 119, 3701.78
Amplifies: 121.22
Five Year Review Date: 2/1/2029
Prior Effective Dates: 11/6/1997