1. (a) An organization is eligible to receive insolvent cemetery grant funds if the organization operates a perpetual care cemetery that is insolvent or is in financial distress as determined by the State Board of Embalmers, Funeral Directors, Cemeteries, and Burial Services.
2. (b) An eligible organization includes a nonprofit organization which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code.

3. (c) Application for grant funds.

   1. (1)

      1. (A) An application for insolvent cemetery grant funds, or an application to make a change in an approved grant application, need not be in any specific form, but must be made in writing and signed in the presence of a notary.
      2. (B) The original application shall be accompanied by one (1) copy.

   2. (2) The application shall contain the following information:

      1. (A) Name of applicant;
      2. (B) Documentation demonstrating that the applicant meets the eligibility requirements;
      3. (C) Documentation demonstrating that the applicant is in good standing with all applicable federal, state, and local agencies that govern the applicant;
      4. (D)

4. (i) The name of the individual or individuals principally responsible for the care, maintenance, and operation of the insolvent cemetery.

   1. (ii) The individual or individuals must be primarily responsible for the company that controls the cemetery, and has the authority to bind the company.

      1. (iii) The individual or individuals will be held responsible to complete the required reports to the board, if the grant application is approved;
      2. (E) Amount requested by applicant;

      3. (F) A project synopsis for the use of the grant fund monies, which shall include:

         1. (i) The specific use of the funds;
         2. (ii) An itemized list of specific needs to be addressed;
         3. (iii) Projected costs for each item; and
         4. (iv) A detailed plan for implementing and completing the project;
      4. (G) The goals and objectives of the project;
      5. (H) The duration of the project;
      6. (I) Implementation timeline for use of the funds;
      7. (J) A budget summary containing a detailed summary of the proposed budget and information of other financial resources utilized; and
      8. (K) The policy and procedures of the applicant detailing the administration and oversight of the funds.
   2. (3) The board may request additional information as needed for evaluation of the request for funds.

   3. (4) Applications must be filed with the board at least twenty (20) calendar days prior to the meeting at which the grant application is to be considered.

      1. (d) Criteria for grant applications and awards.
   4. (1) The applicant must demonstrate to the board that it has the resources available to ensure that the funds are used as proposed.
   5. (2) The board may determine funding priorities and amounts based on the overall needs of an insolvent cemetery.

5. (e) Oversight for all grant expenditures.

   1. (1) The applicant shall appoint an institutional custodian of the grant fund monies.
   2. (2) The applicant shall provide documentation that it has obtained all applicable federal, state, and local permits required to disburse any granted funds.
   3. (3) A copy of the original application, and all project expenditures with invoices attached shall remain on file at the cemetery.

6. (f) Reporting and recordkeeping requirements.

   1. (1) Recipients shall submit timely quarterly reports of the progress of the project, end of the year financial reports, and a final report when the project is completed.
   2. (2) The grant fund recipient shall submit in writing, any request for changes of the approved project.
   3. (3) The books and records shall comply with generally accepted accounting principles.

7. (g) Board monitoring of use of grant funds and records.

   1. (1) The board will monitor projects through site visits, review of project reports, and review of the company’s financial records related to the project or projects.
   2. (2) The board shall annually examine the books and records of the grant fund recipient to determine compliance.

   3. (3) The examination shall include, but not be limited to:

      1. (A) Review of the books and records of the grant fund money;
      2. (B) Review of the expense reports, invoices, receipts, and bank statements; and
      3. (C) Review of the projects detailed in the application to ensure compliance with the project summary as described in the application.
   4. (4) A report of the examination shall be submitted to the board.

8. (h)

   1. (1) Grant fund recipients shall submit quarterly reports.

   2. (2) The reports are due forty-five (45) calendar days from the end of each calendar quarter.

      1. (i) The reports shall include:
   3. (1) Financial statements in accordance with generally accepted accounting principles;
   4. (2) Expense reports; and
   5. (3) Project status reports.
9. (j) Failure to submit timely quarterly or end of year reports shall provide grounds for the board to withhold disbursement of grant funds for subsequent grant requests.

10. (k) End of the year reports.

    1. (1) The reports shall be due forty-five (45) calendar days from the end of the calendar year.

    2. (2) The report shall contain:

       1. (A) Financial statements;
       2. (B) Project summary statements; and

       3. (C) Proof of expenditures from the grant award, including but not limited to:

          1. (i) Expense itemization for each grant;
          2. (ii) Date of purchase of items or services;
          3. (iii) Items or services purchased;
          4. (iv) Vendor;
          5. (v) Purchase price;
          6. (vi) Invoice or purchase order number; and
          7. (vii) Estimated completion dates of the on-going project or projects.
          8. (l) Final report.
    3. (1) Upon completion of a project the recipient shall file a final report with the board.

    4. (2) The final report shall contain:

       1. (A) Financial statements;
       2. (B) Expense reports; and

       3. (C) Proof of completion of the project.

          1. (m) Grant fund recipients shall provide the board with copy of the recipient’s federal and state tax returns within thirty (30) calendar days after submission of the federal and state tax returns.
11. (n) Funds are to be used to make infrastructure repairs and capital improvements as defined in Withdrawal from Permanent Maintenance Fund, 20 CAR pt. 831.

Codification Notes: 105(c)(3) of the Internal Revenue Code is codified at 26 U.S.C. § 501.