peparle Tame

ISSUE: Major investments of Regional Medical Programs pond
grant funds in revenue producing equipment Lev te
Kok f ht?

The Division Staff suggests the following as a recommendation

of the Council:

"In order to be considered for final recommendation by the
National Advisory Council, applications for projects which include
requests for purchase of major items of revenue-producing equipment
must include .

A statement of the rationale for charging any or all of
purchase price of the equipment to the grant, and of the justification
for the proportioning of the shared costs among those involved in

the purchase;

A proposed plan for accounting and fiscal control of the
revenues accruing to the project (see attacked HEW Grants Administration

Manual Issuance, entitled Disposition of Grant-Related Income) ;

Adequate evidence that the project plan, including the
acquiring of the equipment, has been reviewec, and if necessary

approved, by the appropriate local planning agencies."

February 1969