2. Grants to Recipients and Subrecipients

State foresters will develop evaluation criteria for determining priorities for funding applicants for VFA money in consultation with the Forest Service (see Appendix C). State foresters are encouraged to use a committee approach to evaluate VFA applications received from rural fire departments. For example the committee could include the State fire supervisor and Statewide or regional representatives of State fire chiefs' or firefighters' associations or members of a State fire advisory council. Use of a group of evaluators generally increases the credibility of the VFA financial approval process.

An Application for Federal Financial Assistance [Standard Form (SF) - 424] is used by State foresters to apply for VFA grant funding. A sample of a completed SF-424, with its required narrative, assurances, and certification is contained in Appendix D. State fire supervisors should assist their financial management sections with preparation of the narrative, which accompanies the application. Grant applications are approved by the regional foresters of Regions 1 - 6, 8, 10, the Area Director of NA and the Director of IITF. State foresters are advised of approvals by means of "Award Letters." Some Forest Service units permit the use of consolidated State and Private Forestry grant payments including VFA funding. Others do not.

State foresters may use their own application forms and processes for awards to subgrantees such as fire departments and training academies; or they may require use of the Federal SF-424 form. State foresters must have written agreements with subrecipients for accountability of VFA expenditures.

VFA grants are awarded for a period of 1 year. If the State or the fire departments will have unobligated funding at the end of the Federal fiscal year, the State forester may request extension of the grant by submitting a supplemental SF-424 requesting the extension for an additional fiscal year. This extension must be requested prior to the end of the current fiscal year or the funding will no longer be available.

State foresters, through their financial management personnel, request advance or reimbursement of funds from the granting official using SF-270 or by electronic fund transfer. Status of funds is reported on SF-269 (or electronically) at the end of the Federal fiscal year. States' grants management personnel have these forms and are familiar with the processes. The annual VFA Program report, which is completed by the State's VFA coordinator, is discussed below in Section E, Annual Volunteer Fire Assistance Report.

Grants to State and local governments are administered according to requirements contained in the Office of Management and Budget (OMB) Circular A-102. Implementing requirements appear in Title 7 Code of Federal Regulations (CFR), Part 3016. Cost principles concerning allowable costs for these grants are contained in OMB Circular A-87.

Grants to institutions of higher education, nonprofit corporations, and hospitals are administered according to requirements contained in OMB Circular A-110. Implementing regulations appear in 7 CFR 3019. Cost principles are contained in OMB Circular A-21 for institutions of higher education and A-122 for nonprofit corporations.

State fire supervisors are encouraged to familiarize themselves with the above references. They are normally available in State offices through the section that handles grants management. Federal regulations also apply to subrecipients through the State forester.

While grants to State foresters are administered according to the requirements pertaining to State and local governments, the legal status of RFD's is often ambiguous. Most States contain fire departments of all three types mentioned below. While regulations for grants to subrecipients such as rural fire departments and fire training academies are similar whether operated by State and local governments or nonprofit corporations, the regulations are located in different CFR's. Following are examples of the status of fire protection providers:

• Municipal Fire Departments: These departments are operated directly by incorporated cities. Municipalities have taxing authority and the fire department may consist of paid, volunteer, or a mixture of paid and volunteer firefighters. Equipment management requirements are contained in 7 CFR 3016 (Appendix H).
• Fire Districts: Fire districts are also local governmental entities. These districts, like municipalities, have taxing authority and the firefighters may be paid, volunteer, or a combination of both. One or more municipalities may be included in fire districts. Equipment management requirements are contained in 7 CFR 3016 (Appendix H).
• Nonprofit Rural Fire Departments: These departments are organized as nonprofit corporations. They are not local governmental entities, although local governments sometimes contribute limited financial support. Fire departments obtain most of their funding through fund raising campaigns and by holding events such as breakfasts, spaghetti feeds, carnivals, etc. Equipment management requirements are contained in 7 CFR 3019 (Appendix I).

Most fire departments in rural areas and communities are nonprofit corporations and they consist mostly of volunteers. It is suggested that the State forester include a block on the VFA financial application form requesting the fire department's form of organization (municipal, fire district, or nonprofit corporation).

When the State forester awards subgrants to fire training academies that are operated by institutions of higher education these subgrants will be administered according to 7 CFR 3019.

Management requirements for property purchased with VFA funding are similar whether State and local governments or the nonprofits purchase the property. VFA property is discussed in Section II-D of this guide.

Uses of VFA Funding...