ORANGE COUNTY TRANSPORTATION AUTHORITY (2)

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FY05 HOMELAND SECURITY GRANT PROGRAM - VERSION 2.0. 12-22-2004 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 OGC to ensure compliance. A final, executable copy of the MOU must be kept on file with the SM 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 and subgrantees will be permitted to drawdown funds up to 120 days prior to expenditure/disbursement, which echoes the recommendation of the Funding Task Force. Funds received by both grantees and subgrantees must be placed in an interest-bearing account and are subject to the rules outlined in the Uniform Rule 28 CFR Part 66, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, at http://www.access.qpo.qov/nara/cfr/waisidx04/28cfrv204.htmland the Uniform Rule 28 CFR Part 70, Uniform Administrative Requirements for Grants and Agreements (Including Subawards) with Institutions of Higher Education, Hospitals, and other Nonprofit Organizations, at http://www.access.qpo.qov/nara/cfr/waisidx 03/28cfr70 03.html. These guidelines state that subgrantees are required to promptly, but at least quarterly, remit interest earned on advances to: United States Department of Health and Human Services Division of Payment Management Services P.O. Box 6021 Rockville, MD 20852 The subgrantee may keep interest amounts up to $100 per year for administrative expenses. Please consult the OJP Financial Guide or the applicable OMB Circular for additional guidance, State grantees are subject to the interest requirements of the Cash Management Improvement Act (CMIA) and its implementing regulations at 31 CFR Part 205. Interest under CMIA will accrue from the time federal funds are credited to a state account until the time the state pays out the funds to a subgrantee or otherwise for program purposes. State and Urban Area Homeland Securitv Strateqies 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 DEPARTMENT OF HOMELAND SECURITY I OFFICE FOR DOMESTIC PREPAREDNESS 22