I






                ISSUF,:  f@lajo r investments of Regional l@ledi-cal Programs
                        grant funds in revenue producingequipment



                     The Division Staff suggests the following as a recommendation

                of the Council:


                     "In order to be considered for final  recomendation  by  the

                National Advisory Council, applications for projects which Inc    e
                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           @Mi Grants AcbiinisLIration
                Manual Issuance, entitled Disposition of  Grant-Related  Income);


                        Adequate,evi-dence that the project plan, including the
                acquiring of the equipment., has been reviewed, and if  necessary
                approved, by the approprieue local plannin@ acencies.11






                                                                       February 1-969