UNITED STATES DEPARTMENT OF AGRICULTURE RURAL BUSINESS-COOPERATIVE SERVICE VALUE-ADDED PRODUCER GRANT AGREEMENT
Exhibit 10.27
UNITED STATES DEPARTMENT OF AGRICULTURE RURAL BUSINESS-COOPERATIVE SERVICE
This Grant Agreement (Agreement) dated September 27, 2007, between MinnErgy, LLC
(Grantee), and the United States of America, acting through the Rural Business-Cooperative Service
of the Department of Agriculture (Grantor), for $ 300,000 in grant funds under the VAPG
program, delineates the agreement of the parties.
NOW, THEREFORE, in consideration of the grant;
The parties agree that all the terms and provisions of the VAPG Notice of Solicitation of
Applications (NOSA) and application submitted by the Grantee for this VAPG grant, including any
attachments or amendments, are incorporated and included as part of this Agreement. Any changes to
these documents or this Agreement must be approved in writing by the Grantor.
The Grantor agrees to make available to the Grantee for the purpose of this Agreement funds in an
amount not to exceed the Grant funds, subject to the terms and conditions of this Agreement.
As a condition of the Agreement, the Grantee certifies that at least 51 percent of the outstanding
interest in the project has membership or is owned by those who are either citizens of the United
States or reside in the United States after being legally admitted for permanent residence.
As a condition of the Agreement, the Grantee certifies that it is in compliance with and will
comply in the course of the Agreement with all applicable laws, regulations, Executive Orders, and
other generally applicable requirements, including those contained in 7 CFR parts 3015, 3019, 4284,
and the VAPG NOSA, which are incorporated into this agreement by reference, and such other
statutory provisions as are specifically contained herein. The Grantee will comply with title VI of
the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, the Age Discrimination
Act of 1975, the Americans with Disabilities Act, Executive Order 12898, and Executive Order 12250.
As a condition of the Agreement, the Grantee certifies that its management has read and understands
the requirements of 7 CFR parts 3015, 3017, 3018, 3019, and 4284.
NOW, THEREFORE, the parties do hereby agree as follows:
NOW, THEREFORE, the parties do hereby agree as follows:
1. Grant
A. The total amount of grant funds payable to the Grantee by the Grantor shall not exceed
$300,000 (Grant). Any unexpended Grant funds remaining at the time of project
completion or termination of the Agreement shall be returned to the Grantor within 30 calendar days
from the date of project completion or termination of the Agreement.
B. Grantee will match Grant funding with an amount equal to or greater than
$300,000. The matching funds will be spent at a rate equal to or in advance of grant funds, with
the expenditure of matching funds not to occur until the date the Grant begins.
C. The funding period of this grant will begin on October 1, 2007 and will conclude
within 365 days of the starting date, but no later than December 31, 2008. The Grantee may charge
to the Grant only allowable costs resulting from obligations incurred during the funding period.
D. The Grantee shall use Grant funds and matching funds only for the purposes and activities
specified in detail in EXHIBIT A, entitled “GRANT WORK PLAN AND BUDGET” which is attached hereto
and incorporated herein. Any uses not provided for in EXHIBIT A must be approved in writing by the
Grantor in advance of expenditure by the Grantee.
2. Financial Management
A. The Grantee shall relate financial data to performance data and develop unit cost information
whenever practical.
B. The Grantee shall maintain a financial management system in accordance with 7 CFR 3019.21.
C. Payment shall be made in accordance with 7 CFR 3019.22. If the Grantee cannot maintain a
financial management system in accordance with 7 CFR 3019.21 or if Grantee fails to satisfactorily
meet any other conditions set forth in this Agreement, the Grantee may be paid on a reimbursement
basis, at the discretion of the Grantor.
i. If payment is to be made by advance, the Grantee shall request advance payment, but not more
frequently than once every 30 days, of grant funds by using Standard Form 270, “Request for Advance
or Reimbursement.” Receipts, hourly wage rate, personnel payroll records, or other documentation
must be provided upon request from the Agency.
ii. If payment is to be made by reimbursement, the Grantee shall request reimbursement of grant
funds, but not more frequently than once every 30 days, by using Standard Form 270, “Request for
Advance or Reimbursement.” Receipts, hourly wage rate, personnel payroll records, or other
documentation, as determined by the Agency, must be provided with the request to justify the
amount.
D. If program income is earned during the time period of the grant, it may be used to replace other
sources of matching funds if prior approval is received from the Agency. Program income that is not
used as matching funds for the grant project must first be added to the total project costs and
used to further eligible project or program objectives. Program income earned in excess of funds
that can be used for matching funds or eligible expenses must be deducted from the total project or
program allowable cost and will result in a reduction of the Federal share. Costs incident to the
generation of program income may be deducted from gross income to determine program income,
provided these costs have not been charged to the award.
E. The Grantee shall provide satisfactory evidence to the Grantor that the Grantee has complied
with the bonding or insurance requirements specified by EXHIBIT B, “BONDING COVERAGE,” which is
attached hereto and incorporated herein.
The Grantee is subject to the audit requirements specified in EXHIBIT C, “AUDIT REQUIREMENTS,”
which is attached hereto and incorporated herein.
3. Property Standards
The Grantee must adhere to the property standards outlined in 7 CFR 3019.31 through 3019.37.
4. Procurement Standards
The Grantee must adhere to the procurement standards outlined in 7 CFR 3019.41 through 3019.48.
5. Reports
The Grantee shall submit financial and project performance reports satisfactory to the Grantor in
accordance with EXHIBIT D, entitled “REPORTING REQUIREMENTS,” which is attached hereto and
incorporated herein.
6. Site Visits
The Grantee will allow the Grantor to conduct site visits as needed for monitoring the Grantee’s
progress and auditing the Grantee’s financial records related to the performance under the
Agreement. Failure to allow the Grantor to conduct site visits shall be grounds for terminating the
grant.
7. Records
The Grantee shall retain and provide access to records as required by 7 CFR 3019.53.
8. Termination
The award that is the subject of this Agreement shall only be terminated in accordance with 7 CFR
3019.61.
9. Enforcement
The terms and conditions of this award will be enforced using the provisions of 7 CFR 3019.62.
10. Extensions
If the grant will not be completed by the end of the funding period, as defined in paragraph 1.C.,
the Grantee may request an extension. The extension must be requested at least 30 days prior to the
end of the funding period or it will not be considered. The request must be in writing and
addressed to the State Director. It must include the following information: (1) the time period of
the extension requested; (2) a revised budget and work plan demonstrating that funds will be
completely expended by the end of the extension; (3) the reason(s) why the extension is being
requested; and (4) what steps will be taken by the Grantee to ensure that the project is completed
by the end of the extension. Submission of a request for an extension does not guarantee that the
Agency will approve the extension. The Agency may grant one no-cost extension of up to one year at
its discretion. However, extensions will only be approved in cases where significant circumstances
beyond the Grantee’s control prohibited timely performance of grant activities. Extensions will not
be approved for changes in scope.
11. Other Conditions
If the Grantee is a xxxxxx or rancher cooperative, the Grantee’s Board of Directors must take
director training on cooperative governance and the responsibilities of cooperative directors
during the time period of the Grant. Members on the Board of Directors that have taken this
training previously can certify, in writing, to the Grantor the specifics of the training and when
it was completed. Any new members or members who have not completed the training previously must
complete the training as approved by the Grantor.
IN WITNESS WHEREOF, Grantee has this day authorized and caused this Agreement to be signed it its
name and its corporate seal to be hereunto affixed and attested by its duly authorized officers
thereunto, and the Grantor has caused this Agreement to be duly executed on its behalf by:
Grantor:
UNITED STATES OF AMERICA
RURAL BUSINESS-COOPERATIVE SERVICE
UNITED STATES OF AMERICA
RURAL BUSINESS-COOPERATIVE SERVICE
/s/ Xxxxx Xxxxxxxx
|
9/28/2007 | |||||
XXXXX XXXXXXXX |
||||||
Business & Cooperatives Programs Director |
||||||
Grantee: |
||||||
MinnErgy, LLC |
||||||
/s/ Xxxxxx X. Xxxxxx
|
10-5-07 | |||||
Signature
|
Date | |||||
Xxxxxx X. Xxxxxx |
||||||
Chairman |
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EXHIBITI A
GRANT WORK AND BUDGET
The plant work force will include approximately five team leaders/supervisors to oversee day
to day operations and production employees. The company also intends to hire production positions,
which will staff a four crew operation, and material handlers for an estimated total of fifteen
employees. The material handlers will include rail attendants, truck attendants, a grain sampler
and entry level floater.
The company intends on hiring a utilities and safety manager and a maintenance manager. The
company also plans on hiring five maintenance positions including a boiler operator, welder,
electrician, electronic technician and general worker.
The lab staff will consist of a manager and two lab technicians
The company intends to hire an office staff to help with administrative items. The company may
chose to hire one or more secretary/general clerk depending on the qualifications of the other
office personnel.
Work plan/Budget
MinnErgy, LLC formally organized on March 31, 2006 and began developing the work plan to
construct and operate a 50 million gallon dry mill corn-processing ethanol plant utilizing natural
gas-fired boilers. The budget for the project in it’s’ entirety is $133,000,000.
The initial phase of the project was to identify local investors with an interest in creating
an organization that would agree with the development objective. This accomplished, a Board of
Governors was established and PRX Geographic was engaged to prepare a feasibility study concerning
the viability of the project. Concurrently the legal firm of Xxxxxxxx & Xxxxxx was retained, as was
the accounting firm of Xxxxxxxxxxxx and Associates. An Operating Committee was developed to
identify and initiate project tasks. This committee identified prospective building sites. Site
evaluation criteria consisted of: fatal flaw assessment, infrastructure and other assets necessary
for an ethanol plant including grain availability, road and rail access and transportation
infrastructure at the site, utilities including electricity stores, natural gas, water and waste
water disposal, ethanol and co-product market proximity, labor availability, community services
such as welding, electrical shop, plumbing, schools, fire protection, hospital, airport, and
location relative to communities and homes. Contracts were developed with the environmental firm of
Natural Resource Group and the civil engineering firm of Xxxxx Xxxxx Associates. Meetings were
held with the DM&E Railroad to discuss the requirements necessary for access and service, and also
with a variety of companies that were capable of supplying the engineering, procurement, and
construction requirements of the project.
Land option agreements were developed and committed to upon selection of prospective site
locations. A Letter Of Intent was signed in March 2007 with the design-build firm of Xxxxx, Inc.
Engineering services are currently planned to proceed during October 2007 with plant construction
to begin April 2008. A production well and observation well has been drilled by Thein Well Company
and a seven day ground water pumping test was completed April 21, 2007.
The firms of American Engineering Testing, Inc. and Brookfield Resources, Inc. have performed
subsurface exploration and geotechnical review services for the plant site.
The environmental permitting process is underway currently. The environmental permitting firm
the Natural Resource Group has been contracted to direct this process. It is expected that the
applications will be submitted to the appropriate governmental agencies in June of 2007. We expect
to receive permit approval prior to 2007 year end.
In March of 2007 the Board of Governors began working on the task of developing the various
committees and committee chairpersons and has completed all of the committees and chairpersons
except one. The various committees will be: Communications, PR, Fund Raising-Xxxx Xxxxxxxx,
Chairman; Finance Committee — Xxx Xxxxxxxx, Chairman; Grain, Energy Procurement-End Product
Marketing- Chairperson, TBD; Site Construction & Permitting Committee — Xxx Xxxxxxxxxx, Chairman;
Legal Committee — Xxx Xxxxxx, Chairman.
A relationship is being developed with an entity to purchase corn for the process. We expect
to begin developing forward contracts for corn delivery as much as one year prior to substantial
completion. Relationships will also be developed during the construction phase with marketing
companies for the sale of the ethanol and the DDGS.
Six months prior to substantial completion we expect to begin hiring and training the staff
that will manage and operate the business.
Included in the budget table that follows are the estimated costs for the working capital uses
of the grant request. The grant budget time frame will start December 1, 2007 and extend to
November 30, 2008. The time frame of this budget is 365 days. The identified costs are: computer
network, computers, accounting software and implementation — $225,000; office equipment, i.e.,
phone system, copying machine, supplies — $75.000; office rent, utilities, and salaries for project
manager and administrative assistant — $160,000; inventory for plant and office supplies -
$140,000. Matching funds will be spent at a rate equal to or greater than grant funds.
| Start | End | Budget | ||||||||||||||||||||||
| Task | Date | Date | Federal | Cash | In-Kind | Total | ||||||||||||||||||
Task 1 — Computers,
Software, Network,
Implementation
Responsible Staff: |
||||||||||||||||||||||||
Xxx Xxxxxx, Xxx Xxxxxxxx |
01/1/08 | 5/30/08 | 112,500 | 112,500 | 225,000 | |||||||||||||||||||
Task 2 — Office
Equipment Responsible
Staff: Xxxx
Xxxxxxxx |
04/1/08 | 09/30/08 | 37,500 | 37,500 | 75,000 | |||||||||||||||||||
| Start | End | Budget | ||||||||||||||||||||||
| Task | Date | Date | Federal | Cash | In-Kind | Total | ||||||||||||||||||
Task 3 — Office rent,
Utilities, Salaries
Responsible Staff: Xxx |
12/1/07 | |||||||||||||||||||||||
Xxxxxxxxxx |
10/1/07 | 11/30/08 | 80,000 | 80,000 | 160,000 | |||||||||||||||||||
Task 4 — Inventory,
Supplies Responsible
Staff: Xxx
Xxxxxxxxxx |
06/1/08 | 11/30/08 | 70,000 | 70,000 | 140,000 | |||||||||||||||||||
Total Cost of Project |
300,000 | 300,000 | 600,000 | |||||||||||||||||||||
Task I — Purchase and implementation of the computer system and accounting software necessary to
support the business activities. Cost = $225,000
Xxx Xxxxxx will chair the committee responsible for this decision. Xxx has had extensive experience
working within the contract electronics manufacturing industry and has broad knowledge of
accounting and business systems. He is currently President of DCM — Tech. Serving on this
committee will also be Xxx Xxxxxxxx, currently the Chief Financial Officer of the Fastenal Company.
Xxx has considerable experience and expertise with accounting software systems. We will lean
heavily on Xxxxxxxxxxxx and Associates for advice concerning the accounting system. Xxxxxxxxxxxx
has developed software specifically for the grain and ethanol industries. It is expected that
implementation of the system will be contracted with the company supplying the system.
Timing: January 2008 — October 2008.
Subtask A - Identify computer hardware requirements. MinnErgy will deploy a business class computer
system consisting of a multiple servers and approximately 15 client work stations throughout the
facility. The servers will be fully redundant with raid array storage and multiple power supplies.
An offsite backup system will also be implemented. A computer infrastructure flow sheet will be
designed. Competing proposals will be developed for committee review and decision making. We
consider this to be a critical component of the business and will address it early in the
construction phase of the project. The grant administrator will be able to evaluate the progress of
this task through the review of proposals, submittal of invoices and review of flow sheet
development.
Timing: January 2008 — June 2008. Cost = $108,000
Subtask B - Identify and procure accounting software. MinnErgy will review business application
accounting software options typically used within the industry. We will discuss the use of the
different options with users of such software and with our consulting accounting firm Xxxxxxxxxxxx
and Associates, and McGladrey & Xxxxxx our consulting audit firm. Request of competing proposals
for committee review. This subtask may be evaluated by reviewing the business proposals and the
submission of invoices.
Timing: April 2008 — June 2008 Cost $55,000
Subtask C - Identify, procure and install grain accounting software. MinnErgy will review
business application software options typically used with the industry. We will discuss the use of
different options with users of such software including our member All American Co-op, our
consulting accounting firm Xxxxxxxxxxxx and Associates, and other firms in the grain risk
management arena. Request competing proposals for committee review and decision making. This
subtask may be evaluated by reviewing the business proposals and the submission of invoices.
Timing: June 2008 — October 2008 Cost = $62,000
Task 2 - Purchase of office equipment. $75,000
Xxxx Xxxxxxxx will chair the committee that will oversee this activity. Xxxx is currently the Plant
Manager of the Bay State Milling Company flour mill in Winona, MN. Also serving on this committee
will be Xxxxx Xxxxxx. Xxxxx is currently President of E-Tool, Inc. in Winona, MN.
Timing: April 2008 — September 2008.
Subtask A - Identify requirements of administration, laboratory, and manufacturing departments as
it relates to desks, chairs, and file storage. Review operational requirements of staff and prepare
office layout drawings of various departments. Identify preferred vendor options and request
competing proposals for committee review and decision making. Subtask may be evaluated by review of
proposals and submission of invoices.
Timing: May 2008 — June 2008 Cost —— $20,000
Subtask B - Identify office requirements of copiers, scanners, and fax machines. Review of
operational requirements of office, laboratory, and manufacturing departments. Identify preferred
vendor options and request competing proposals for committee review and decision making. Subtask
may be evaluated by review of proposals and submission of invoices.
Timing: June 2008 —July 2008 Cost $30,000
Subtask C - Identify telephone system requirements for facility. Request competing system proposals
from various vendors including system diagrams for committee decision making. Subtask may be
evaluated by review of proposals and submission of invoices.
Timing: July 2008 — September 2008 Cost $25,000
Task 3 — Office rent, salaries, utilities.
Xxx Xxxxxxxxxx will be responsible for these activities. Xxx serves as the President/CEO of
MinnErgy, LLC. Xxx owns and operates Xxxxxxxxxx Heifer Hotel a custom dairy operation.
Timing: December 2007 — November 2008.
Subtask A - Identify office space options in area of project and initiate rental agreement. Prepare
proposal for committee review. Subtask may be evaluated by review of proposals and submission of
invoices. Timing — December 1, 2007 — December 31, 2007
Cost — Rent = $7,200. ($1,800/quarter)
Subtask B — Develop project manager and office administrator job descriptions. Initiate search for
prospects and create list of qualified candidates. Interview candidates and submit proposed
decisions to committee for review and decision making. Subtask may be evaluated by submission of
copies of payroll payments.
Timing — December 2007 — January 2008: Identify and Hire Candidates
December 2007 — November 2008: Payment of payroll.
Cost = $148,600 ($37,150/quarter)
Subtask C - Submission of utility costs. Evaluate subtask by submission of copies of invoices.
Timing- December 2007 — November 2008, Cost = $4,200 ($1,050/quarter)
Task 4 — Inventory, Supplies. Cost = $140,000
Xxx Xxxxxxxxxx will own the responsibility for these tasks.
Timing: June 2008 — November 2008.
Subtask A - Determine inventory requirements for process chemicals/enzymes. Discuss usage
requirements with vendors and develop support quantities. Request proposal and submit to committee
for review and decision making. Subtask may be evaluated by review of vendor support list and
submission of invoices.
Timing: June 1 — June 30, 2008 Cost = $70,000
Subtask B - Determine maintenance supply inventory requirements. Discuss system maintenance
requirements with equipment suppliers. Request proposals from suppliers of suggested maintenance
support inventory. Present proposals to committee for review and decision making. Evaluate subtask
by review of proposals and submission of invoices.
Timing: September I — November 30, 2008 Cost = $65,000
Subtask C - Determine office inventory supply requirements of paper, envelopes, pens and pencils.
Review supplier options and request proposals. Present proposals to committee for review and
decision making. Evaluate subtask by review of proposal documentation and submission of invoices.
Timing: July 1 — July 31, 2008 Cost = $5,000
Following is a budget breakdown for the entire project.
| Use of Proceeds | Amount | |||||||
Plant Construction |
$ | 83,400,000 | ||||||
Material Escalation Clause |
$ | 1,668,000 | ||||||
CCI Contingency |
$ | 4,170,000 | ||||||
Land Cost |
$ | 3,675,000 | ||||||
Site Development Costs |
$ | 12,182,000 | ||||||
Construction Contingency |
$ | 1,305,000 | ||||||
Construction Performance Bond |
$ | 500,000 | ||||||
Construction Insurance Costs |
$ | 300,000 | ||||||
Administrative Building |
$ | 400,000 | ||||||
Office Equipment |
$ | 75,000 | ||||||
Computers, Software, Network |
$ | 225,000 | ||||||
Railroad |
$ | 6,000,000 | ||||||
Rolling Stock |
$ | 400,000 | ||||||
Fire Protection and Water Supply |
$ | 5,300,000 | ||||||
Capitalized Interest |
$ | 3,000,000 | ||||||
Financing Costs |
$ | 700,000 | ||||||
Organilation Costs |
$ | 1,200,000 | ||||||
Pre-Production Costs-Salaries, Utilities, etc. |
$ | 750,000 | ||||||
Working Capital |
$ | 3,750,000 | ||||||
Inventory-Corn, Chemicals, Ethanol, DDGS |
$ | 3,500,000 | ||||||
Spare Parts 7 process equipment |
$ | 500,000 | ||||||
| TOTAL | ||||||||
| $ | 133,000,000 | |||||||
Amount requested
MinnErgy, LLC is requesting a grant in the amount of $300,000 to help fund the start-up working
capital costs of the project.
EXHIBIT B
BOND COVERAGE
The Grantee shall provide satisfactory evidence to the Grantor that the Grantee holds fidelity bond
coverage in the amount of $ N/A* that covers all officers and employees of the
Grantee’s organization authorized to receive or disburse Federal funds. The bond coverage shall be
obtained from a company or companies holding certificates of authority as acceptable sureties, as
prescribed in 31 CFR part 223, “Surety Companies Doing Business With the United States.”
| * | This grant is being administered as a reimbursement grant so fidelity bond coverage is not required (3015.17). |
EXHIBIT C
AUDIT REQUIREMENTS
If a the Grantee is a non-profit corporation and the Grantee expends $500,000 or more in federal
funds in one year, the Grantee shall be audited by a Certified Public Accountant. The audit, for
the years the Grantee receives this financial assistance, will be conducted in accordance with
Generally Accepted Government Auditing Standards (GAGAS) and OMB Circular A-133. These audits are
due within 9 months after the end of the Grantee’s fiscal year. The Grantor is to receive a copy of
this audit.
If the Grantee is a nonprofit corporation and the Grantee expends less than $500,000 in federal
funds or the Grantee is a for profit corporation and the Grant amount is greater than $100,000, the
project shall be audited by a Certified Public Accountant in accordance with Generally Accepted
Government Auditing Standards (GAGAS). This audit will he a limited-scope audit focused only on the
expenditure of grant and matching funds to assess compliance with applicable laws and regulations.
It must be completed within 90 days after the funding period with a copy submitted to the Grantor.
If the Grantee is a nonprofit corporation and the Grantee expends less than $500,000 in federal
funds or the Grantee is a for profit corporation and the Grant amount is $100,000 or less, the
Grantee is subject to an audit by the Grantor of all records whose retention is required by the
Agreement. This audit will focus only on the expenditure of grant and matching funds to assess
compliance with applicable laws and regulations and must be completed within 90 days after the
funding period.
EXHIBIT D
REPORTING REQUIREMENTS
You must provide Rural Development with a paper copy original or an electronic copy that includes
all required signatures of the following reports. The reports should be submitted to the Agency
contact listed for your assigned state in Section VII of the VAPG NOSA. Failure to submit
satisfactory reports on time may result in suspension or termination of your grant. Both
performance reports and financial reports must be in compliance with 7 CFR 3019.51 and 3019.52.
A. Form SF-269 or SF-269A. A “Financial Status Report,” listing expenditures according to agreed
upon budget categories, on a semi-annual basis. Reporting periods end each March 31 and September
30. Reports are due 30 days after the reporting period ends. A final “Financial Status Report” is
due within 90 calendar days of the completion of the project. Reports will be on a cash basis.
B. Semi-annual performance reports. Reports are due as provided in paragraph (A) of this section.
These reports shall include the following:
i. A comparison of actual accomplishments to the objectives for that period. Objectives should be
reported by specific task breakdown as described in the approved work plan and budget.
ii. Reasons why established objectives were not met, if applicable.
iii. Reasons for any problems, delays, or adverse conditions which will affect attainment of
overall program objectives, prevent meeting time schedules or objectives, or preclude the
attainment of particular objectives during established time periods. This disclosure shall be
accomplished by a statement of the action taken or planned to resolve the situation.
iv. Objectives and timetables established for the next reporting period.
v. A summary at the end of the report with the following elements to assist in documenting the
annual performance goals of the VAPG program for Congress.
If funds were awarded for working capital, the Grantee must discuss the following
| • | Number of jobs created as a result of the project; | ||
| • | Any increase in producer revenues as a result of the project; | ||
| • | Any increase in customer base as a result of the project; and | ||
| • | Projects with significant energy components must report expected or actual capacity (e.g. gallons of ethanol produced annually, megawatt hours produced annually) and any emissions reductions incurred during the project. |
vi. Compliance with any special condition on the use of award funds should be discussed.
C. Final project performance reports. Reports are due as provided in paragraph (A) of this section.
These reports shall include the following:
i. A comparison of actual accomplishments to the objectives for that period. Objectives should be
reported by specific task breakdown as described in the approved work plan and budget.
ii. Reasons why established objectives were not met, if applicable.
iii. Reasons for any problems, delays, or adverse conditions which will affect attainment of
overall program objectives, prevent meeting time schedules or objectives, or preclude the
attainment of particular objectives during established time periods. This disclosure shall be
accomplished by a statement of the action taken or planned to resolve the situation.
iv. Objectives and timetables established for the next reporting period.
v. Compliance with any special condition on the use of award funds should be discussed.
vi. Responses to the following:
| a. | What have been the most challenging or unexpected aspects of this program? | ||
| b. | What advice you would give to other organizations planning a similar program. These should include strengths and limitations of the program. If you had the opportunity, what would you have done differently? | ||
| c. | If an innovative approach was used successfully, the Grantee should describe their program in detail so that other organizations might consider replication in their areas. |
vii. A summary at the end of the report with the following elements to assist in documenting the
annual performance goals of the VAPG program for Congress.
If funds were awarded for planning activities, the Grantee must discuss the following:
| • | Number of expected jobs created as a result of continuing project; | ||
| • | Any expected increase in producer revenues as a result of continuing the project; | ||
| • | Any expected increase in customer base as a result of continuing the project; and | ||
| • | Projects with significant energy components must report expected capacity (e.g. gallons of ethanol produced annually, megawatt hours produced annually) and any emissions reductions expected as a result of continuing the project. |
If funds were awarded for working capital, the Grantee must discuss the following
| • | Number of jobs created as a result of the project; | ||
| • | Any increase in producer revenues as a result of the project; | ||
| • | Any increase in customer base as a result of the project; and | ||
| • | Projects with significant energy components must report expected or actual capacity (e.g. |
| gallons of ethanol produced annually, megawatt hours produced annually) and any emissions reductions incurred during the project. |
viii. The Grantee must submit supporting documentation for completed tasks, which includes, but are
not limited to, feasibility studies, marketing plans, business plans, and an accounting of how
working capital funds were spent.
D. SF-272. If the Grantee receives advance payments, the Grantee shall submit a “Report of Federal
Cash Transactions,” listing expenditures according to agreed upon budget categories, on a quarterly
basis. Reporting periods end each March 31, June 30, September 30, and December 31. Reports are due
15 calendar days after the reporting period ends.
