DEPARTMENI' OF HEALTH, EDUCA-I'ION, A@t)
     .MLMORANDUM
                                                                 PUBLIC I-IEALTII SERVICE
                                                              HEALTH  RESOURCES  ADMINISTRATION
                                                          BUREAU OF HEALTH RESOURCES DEVELOPMENT
      TO          Acting Director, DRMP                                DATE:  August 28, 1974




      FROM        Acting Chief, GM


      SUBJECT:    Policy Manual


                  We are in the process of revising the booklet entitled, Guidelines And
                  information for Assisting RNPs in Phasing Out RMPS Support.  Tom
                  Simonds has been assigned the responsibility and  will  be  the  author.
                  The.purpose for the proposed revision is two-fold.  First, some of
                  the policy statements contained in it require changes to make them
                  more accurate or clearer and there is also a need for additional
                  policies.  Secondly, we would endeavor to prepare a manuai which
                  could be used by the emerging health  organization  or  at  least  serve
                  as a solid basis for operating during the transition period.  As
                  the new organization develops and matures, a policy manual
                  tailored to it will probably be required; however, the one we are
                  developing should offer the framework on which to build it.
                  Therefore, we are beginning by editing the existing "phase-out
                  manual-it and making the necessary changes   We will  then  develop  new
                  policies on a variety of subjects.  Some of these are:

                             Loan of excess property to grantees
                             Compensation for part-time federal employees
                             Reimbursement for advisory group members
                             Discretionary funding
                  We will then introduce additional sections which are not necessarily
                  policy in nature but which would  assist  grantees  -  particularly  new
                  ones - in the management of government grants.  These will cover
                  topics which have proven to be troublesome to new and unsophisti-
                  cated grantees and, in fact, to some not so new, who consider
                  themselves to be experienced.
                  The existing "phase-out manual" has been well received by the RNPs
                  generally and acclaimed by some as the most useful document pro-
                  duced by DRMP.  We are of the opinion that building on this to
                  produce a more timely manual should be  equally  well  received  by  and
                  useful to the new organizations which  will  replace  RMP  and  CHP.  It
                  should also be beneficial in avoiding problems for new and
                  inexperienced grantees.









                                         DRMP
               Page 2   Acting Director,

               There is attached for your information an outline of the manual we-
               will develop.  We would appreciate any thoughts you may have for
               topics to be included.



                                                 G. Lee Teets


               Attachment


                cc:  Acting Deputy Director, DRMP






               Preface
                   A.  Broad description of organization
                       1.  Mission
                       2.  Responsibilities
                           a.  Grants
                           b.  Grantees


                   introduction
                   A.  Composition of Manual (general statement)
                   B.  Documents grantee should have access to and where obtained.
                       1.  CFR
                       2.  Fed-Register
                       3.  Grants Administration Manual
                   C.  Order of Precedence of policies in event of conflict
                       1.  Fed. legislation
                       2.  Fed. Regulations
                       3.  @ Grants Administration Manual
                       4.  Policies in this manual


            11.    Funding @d Application
                   A.  Funding determination based on approval
                   B.  Notice of Grant Award (general and brief statement)
                   C.  Cont:inuation
                       1.  Application
                   D.  Unobl:Lgated Balances
                       1.  ]ROB
                       2.  Treatment of unobli at   ed balances
                                                 9
                           a.     Offset
                           b.  Carryover
                           r-.    Refund



           III.    Costs
                   A.  General statement regarding direct and indirect costs
                   B.  Grantee responsibilities
                   C.  Direct costs
                       1.  Definition
                       2.  identify and explain each
                           a.  Identify pertinent DHEW Grants Administration Manual
                                Chapter.
                       3.  Add  policy on air conditioning being considered as a
                           utility cost
                   D.  Ind:L-rect  Costs
                           Applicable cost Principle and Procedures
                           a.  Brochures available describing procedure for computing

             IV.   Payment
                   A.  Monthly Cash Request
                   B.  Lettet of Credit
                   C.  Reimbursement by Treasury -Check






            Page  2




              V.  Grant Related Income



             VI.  Equipment Accountability
                  A.  Loan of excess property to grantees


           VII.  Contracting by.Grantee