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Attachment A FY05 HOMELAND SECURITY GRANT PROGRAM writing by that local unit of government or urban area. States holding grant funds on behalf of local units of government or urban areas must enter into a formal MOU with the local unit of government or urban area specifying the amount of funds to be retained by the state and the intended use of funds. This MOU request must be initiated by the local unit of government or urban area. States are encouraged, but not required, to submit these MOUs to their ODP Preparedness Officer for review by the DHS Office of General Counsel (OGC) to ensure compliance. A final, executable copy of the MOU must be kept on file with the SAA and must be made available to DHS upon request. A model MOU is available for reference in Appendix C: Template for MOU. Drawdown of Funds Grantees are permitted to drawdown funds up to 120 days prior to expenditure, which echoes the recommendation of the Funding Task Force. These funds may be placed in either an interest - bearing or non - interest bearing account. Interest earned on funds placed in an interest- bearing account must be treated as program income and reinvested into allowable activities within the respective program area in which it was earned. Grantees and subgrantees must retain detailed documentation showing which funding stream(s) interest/program income was earned and how it was reinvested. Grantees must also report all interest earned at the state and local level on the quarterly Financial Status Reports. This information must be made available to DHS upon request for programmatic and /or audit purposes. State and Urban Area Homeland Security Strategies State and Urban Area Homeland Security Strategies must serve as the guiding direction for all grant programs in HSGP, and security and preparedness officials at all levels should leverage all available funding and resources from multiple sources wherever possible. Grantees and subgrantees should not restrict their activities to federal funding alone to achieve the goals outlined within their strategies. Rather, special attention should be given to leveraging relevant funding sources and resources that support implementation of these strategies. This includes, but is not limited to: • Other federal preparedness programs, including those offered by HHS through CDC, HRSA, and the U.S. Food and Drug Administration (FDA); the U.S. Department of Agriculture (USDA); the U.S. Department of Justice (DOJ); the U.S. Department of Transportation (DOT); FEMA; DHS Science and Technology (S &T); DHS Information Analysis and Infrastructure Protection (IAIP); and other relevant organizations • Other state homeland security and preparedness programs and resources • Local and tribal homeland security and preparedness programs and resources • Private sector homeland security preparedness programs and resources. ODP expects grantees and subgrantees to take a holistic approach to implementing their strategic homeland security goals and objectives by considering all available support and assistance programs, regardless of the source. In FY05, if they have not DEPARTMENT OF HOMELAND SECURITY I OFFICE FOR DOMESTIC PREPAREDNESS 22 w b rt yfi e y y X. E