[Code of Federal Regulations]
[Title 7, Volume 6]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR634.15]

[Page 415-416]
 
                          TITLE 7--AGRICULTURE
 
   CHAPTER VI--NATURAL RESOURCES CONSERVATION SERVICE, DEPARTMENT OF 
                               AGRICULTURE
 
PART 634--RURAL CLEAN WATER PROGRAM--Table of Contents
 
              Subpart B--Project Authorization and Funding
 
Sec. 634.15  Agreements.

    The State Conservationist, NRCS, upon receiving notice of an 
approved project, is to enter into a grant agreement with the 
administering agency, except in those cases where USDA is to administer 
the program. When USDA retains administration, the State 
Conservationist, NRCS, is to enter into a fund transfer agreement with 
the State Executive Director, ASCS.
    (a) Grant agreements. Grant agreements detail the working 
arrangements and applicable operating regulations between NRCS and the 
administering agency. A written grant agreement identifying the parties 
involved, their responsibilities for carrying out the program, and the 
amount of program funds to be encumbered by NRCS is to be executed by 
the parties. This agreement is the fund obligating document. It also 
sets out the necessary working arrangements between parties for 
determining and allocating the administering agency's costs. All grants 
to administering agencies are to be in

[[Page 416]]

accordance with OMB Circular No. A-102, Department of the Treasury 
Circular No. 1075, and Federal Management Circular No. 74-4. State or 
local administering agency grants will be funded under Letter-of-Credit 
serviced by the U.S. Treasury Regional Disbursing Office, or by NRCS 
approved advance/reimbursement financing arrangements subject to the 
terms and conditions of the grant agreement.
    (1) The grant agreement will provide for payment of cost-sharing for 
BMP (Sec. 634.5(j)) and administrative costs (Sec. 634.5(c)).
    (2) The grant agreement may provide for payment of technical 
assistance costs when the administering agency has the capability, and 
the NRCS designates that agency to provide this assistance to RCWP 
participants.
    (3) The administering agency is to monitor the performance of 
activities supported by RCWP grant funds to assure that time schedules 
and participant RCWP contract requirements are being met. Performance 
goals are to be measured against the terms of the grant agreement and 
program directives. When NRCS determines that onsite technical 
inspections, certified completion data, and financial status reports do 
not provide adequate grant evaluation data, the following information 
may be requested:
    (i) A comparison of actual accomplishments with the objectives 
established for the plan,
    (ii) Reasons why established objectives were not met, and
    (iii) Objectives established for the next reporting period.
    (4) Grant agreements may be amended by mutural agreement of the 
parties to the agreement. NRCS may unilaterally amend agreements when 
the sole consideration is a change in the cost and the Administrator, 
NRCS, based on NRCWCC recommendations, determines that such an 
adjustment is necessary to carry out the program efficiently and 
effectively.
    (b) Fund transfer agreements. When it is impractical for NRCS to 
enter into agreements with local soil conservation districts, State soil 
and water conservation agencies, or State water quality agencies to 
administer the program in a project area, USDA will retain program 
administration. In this case, the State Executive Director, ASCS, and 
the State Conservationist, NRCS, are to enter into an agreement for the 
transfer of funds to ASCS through county ASC committees for activities 
included in administrative cost (Sec. 634.5(c)) and BMP cost 
(Sec. 634.5(j)). The following general working arrangements are to 
apply:
    (1) Administering contracts, making cost-share payment, and program 
reporting are to be provided by ASCS as the administering agency.
    (2) NRCS, or its designee, with appropriate Federal or State agency 
support, will provide technical assistance to participants in preparing 
RCWP contracts and in carrying out their water-quality plans.
    (c) Agreements for services. NRCS may enter into an agreement for 
services with a State or local agency. The designee must meet the 
requirements of OMB Circular No. A-102.
    (d) Contracts for services. NRCS may enter into contracts for 
services with individuals or firms for providing technical assistance.