PURPOSE: This rule contains procedures and provisions for solid waste management districts to qualify for grant funds from the Solid Waste Management Fund as provided for in section 260.335.2, RSMo.

PUBLISHER’S NOTE: The publication of the full text of the material that the adopting agency has incorporated by reference in this rule would be unduly cumbersome or expensive. Therefore, the full text of that material will be made available to any interested person at both the Office of the Secretary of State and the office of the adopting agency, pursuant to section 536.031.4, RSMo. Such material will be provided at the cost established by state law.

1. (1) Definitions. Definitions for key words used in this rule may be found in 10 CSR 80- 2.010. Additional definitions specific to this rule are as follows:

   1. (A) Allocated district funds. Monies from the Solid Waste Management Fund that are set aside to be disbursed to each district by the department;
   2. (B) Competitive bid process. Procurement of goods or services that follows the guidelines outlined in 1 CSR 40;
   3. (C) Disbursed district funds. District funds paid to each district or subgrantee;
   4. (D) Disposal cost. Fees charged to collect, transport or deposit solid waste in a landfill, transfer station or other approved facility;
   5. (E) District administrative grant. Planning and organizational grants disbursed by the department to each district prior to August 28, 2004;
   6. (F) District carryover. Any remaining district funds of any completed grants that have been disbursed by the department to each district for district administrative grants, district operations grants, plan implementation grants or district subgrants;
   7. (G) District funds. The revenue generated from the solid waste tonnage fee collected and deposited in the Solid Waste Management Fund and allocated to each district pursuant to section 260.335.2, RSMo, plus district carryover, interest income earned and state required local match funds;
   8. (H) Executive board. The board established by each district’s solid waste management council or by the alternative management structure chosen by a district as provided for in section 260.315.4(2), RSMo;
   9. (I) Interest income. All interest earned by each district from the holding of revenue generated from the Solid Waste Management Fund;
   10. (J) Project. All approved components of an organized undertaking described in a proposal, including any supporting documents as required by project type;
   11. (K) Solid Waste Management Fund. The fund created in section 260.330, RSMo, to receive the tonnage fee charges submitted by sanitary and demolition landfills for waste disposed of in Missouri and transfer stations for waste transported out of state for disposal;
   12. (L) State required local match funds. Funds committed by local governments to each district as match for district administrative grants; and
   13. (M) Unencumbered district funds. District funds that have not been obligated by the executive board for goods and services in the form of purchase orders, contracts or other form of documentation.

2. (2) Eligibility.

   1. (A) Applicability. This rule applies to the 10 CSR 80-9

members of the executive boards of all department-recognized solid waste management districts in Missouri.

1. (B) Projects. The district funds are to be allocated for projects in accordance with the following provisions:

   1. 1. Grant monies made available by this

rule shall be allocated by the district for projects contained within the district’s approved solid waste management plan. These funds will be used for solid waste management projects as approved by the department. However, no grant funds will be made available for incineration without energy recovery;

1. 2. In the event that the district solid

waste management plan has not been submitted to the department, any eligible projects approved by the district and allocated monies made available by this rule shall be included in the district’s solid waste management plan prior to submission;

1. 3. In the event that the district solid

waste management plan has been submitted to the department, any eligible projects approved by the district and allocated monies made available by this rule, but not contained within the plan, shall be considered an addenda to the plan. The addenda will be evidenced in quarterly and final project reports required under subsection (6)(B) of this rule. Projects serving as addenda to the plan in this manner must be included in any documents required by the department to be submitted by the districts that update the plan or that verify implementation of the plan pursuant to section 260.325.5, RSMo;

1. 4. District funds shall not be awarded

for a project whose applicant is directly involved in the evaluation and ranking of that particular project;

1. 5. District funds shall not be awarded

for a project that displaces existing resource recovery services, unless the proposed project demonstrates how it will result in improvement or expansion of service; and

1. 6. District funds shall not be awarded

for a project that collects solid waste for disposal on a continuous basis.

1. (C) Grant Funds.

   1. 1. As determined by statute, an amount

of the revenue generated from the solid waste tonnage fee collected and deposited in the Solid Waste Management Fund shall be allocated annually to the executive board of each officially recognized solid waste management district for district grants. Further, each officially recognized solid waste management district shall be allocated, upon appropriation, a minimum amount for district grants pursuant to section 260.335.2, RSMo.

1. 2. The district shall enter into a financial

assistance agreement with the department prior to the disbursement of district funds. The financial assistance agreement shall, at a minimum, specify that all district funds will be managed in accordance with statute and this rule. Financial assistance agreements shall be provided to the districts by the department at the beginning of the state fiscal year.

1. 3. Quarterly the department shall notify

the executive board of each district of the amount of grant funds for which the district is eligible. Upon request, the department will provide to a district the reported tonnages and tonnage fees paid into the Solid Waste Management Fund.

1. 4. Grant money available to a district

under subsection (2)(C) of this rule within a fiscal year may be allocated for district operations, projects that further plan implementation and subgrantee projects of cities and counties within the district pursuant to section 260.335.2, RSMo.

1. 5. Any district funds allocated to a dis-

trict but not requested by the district following the procedures outlined in this rule within twenty-four (24) months of the end of the state fiscal year in which it was allocated may be reallocated by the department pursuant to section 260.335.2, RSMo.

1. 6. At the end of a district’s fiscal year,

any district carryover funds and interest income in excess of twenty thousand dollars ($20,000) shall be allocated for projects other than district operations in the district’s next request for project proposals in accordance with section 260.335, RSMo, unless approved by the department.

1. 7. A solid waste management district

may elect to use more than one fiscal year’s allocation of funds to finance a project. Prior to the department encumbering funds for this project, the district shall submit a request to the department for approval that provides justification and financial supporting documentation. Following the department’s approval, the district may request that these funds be transmitted to the district. All interest income earned by the district shall be obligated to this project until the total amount needed is reached.

1. 8. All district funds shall be used for

implementation of a solid waste management plan, district operations, solid waste management, waste reduction, recycling and related services as approved by the district executive board and the department.

1. (D) Costs. In general, the following paragraphs list eligible and ineligible costs for district funds. Items not listed in this section or in subsections (3)(A) and (4)(B) should be discussed with the department.

   1. 1. Eligible costs. Applicants can request

monetary assistance in the operation of eligible projects for the following types of costs. Eligible costs may vary depending on the services, materials and activities, as specified in the grant application:

1. A. Collection, processing, manufac-

turing or hauling equipment;

1. B. Materials and labor for construc-

tion of buildings;

1. C. Engineering or consulting fees;
2. D. Salaries and related fringe benefits

directly related to the project;

1. E. Equipment installation costs

including installation, freight or retrofitting of the equipment;

1. F. Development and distribution of

informational materials;

1. G. Planning and implementation of

informational forums including, but not limited to, workshops;

1. H. Travel as necessary for project

completion;

1. I. Overhead costs directly related to

the project;

1. J. Laboratory analysis costs; and
2. K. Professional services.
3. 2. Ineligible costs. The following costs

are considered ineligible for district grant funding:

1. A. Operating expenses, such as

salaries and expenses that are not directly related to district operations or the project activities;

1. B. Costs incurred before the project

start date or after the project end date;

1. C. Taxes;
2. D. Legal costs;
3. E. Contingency funds;
4. F. Land acquisition;
5. G. Gifts;
6. H. Disposal costs, except for projects

as indicated in paragraph (2)(B)6. of this rule;

1. I. Fines and penalties;
2. J. Food and beverages for district

employees, board members or subgrantees at non-working meetings;

1. K. Memorial donations for board

members, district employees, or subgrantees;

1. L. Office decorations, except as indi-

cated in paragraph (3)(A)4. of this rule; and

1. M. Lobbyists, pursuant to section

105.470, RSMo.

1. (3) District Operations.

   1. (A) Eligible Costs. The department shall allocate funding for the costs that are reasonable and necessary for proper and efficient performance and administration of the district. District operations costs must be specifically for the purpose of district operations and may include:

      1. 1. Salaries and related fringe benefits of

employees;

1. 2. Cost of materials and supplies

acquired, consumed or expended;

1. 3. Rental or leasing of office space;
2. 4. Office decorations costing less than

five hundred dollars ($500) per year;

1. 5. Equipment and other capital expendi-

tures;

1. 6. Travel expenses incurred;
2. 7. The cost of utilities, insurance, secu-

rity, janitorial services, upkeep of grounds, normal repairs and alterations and the like to the extent that they keep property at an efficient operating condition, do not add to the permanent value of property or appreciably prolong the intended life and are not otherwise included in rental or other charges for space;

1. 8. Contracted services for eligible costs

acquired through a competitive bid process;

1. 9. Non-cash service awards which are

reasonable in cost; and

1. 10. Legal costs for contract review and

other costs directly related to the district grant administration.

1. (B) Grant Application. Districts eligible to receive district operations grant funding shall submit a written request to the department, on forms provided by the department, that includes:

   1. 1. A completed district operations bud-

get, containing such detail as specified by the department, that has been approved by the executive board, including an executive summary and list of tasks for the budget period.

1. 2. Copies of any contracts in effect for

district operations services.

1. 3. If applicable, documentation of the

bidding process used to procure district operations services.

1. 4. The grant and budget period shall

cover up to a one (1)-year time period, unless otherwise approved by the department.

1. 5. Districts may apply for district oper-

ations funds at any time during the year, provided that all requirements outlined in this section are followed.

1. (4) Plan Implementation Projects.

   1. (A) Projects. The department shall allocate plan implementation funds for projects in accordance with the following provisions:

      1. 1. Grant monies made available by this

rule shall be allocated by the district for projects contained within the district’s solid waste management plan or which enable the district to plan and implement activities pursuant to section 260.325, RSMo;

1. 2. Projects shall be conducted by district

staff or through a contract with the district. Contracted services must be procured through a competitive bid process;

1. 3. Projects should benefit the counties

or cities who are members of the district; and

1. 4. A project period shall be determined

that allows for the purpose of the project to be accomplished and for adequate reporting of the results of the project to determine if the project met its intended goals. Project and budget periods may allow for up to a two (2)- year time period for project completion. A maximum of one (1) six (6)-month extension may be allowed beyond the two (2) years when approved by the executive board. Any extension of the project or budget periods beyond two (2) years and six (6) months must have the prior approval of the executive board and the department.

1. (B) Eligible Costs. Districts may request monetary assistance in the operation of eligible plan implementation projects for the types of costs listed in paragraph (2)(D)1. of this rule. Eligible costs may also include costs associated with revising the district’s solid waste management plan.

2. (C) Grant Application. Districts eligible to receive plan implementation grant funding shall submit a written request to the department that includes copies of all plan implementation project proposals approved by the executive board as documented in meeting minutes. At a minimum, project proposals must include:

   1. 1. An executive summary of the project

objectives and the problem to be solved, referencing the district’s solid waste management plan component to which it applies;

1. 2. The location of the project, project

name, and the project number assigned by the district;

1. 3. A work plan which identifies project

tasks, the key personnel and their qualifications;

1. 4. A timetable showing anticipated dates

for major planned activities and expenditures, including the submittal of quarterly reports and the final report;

1. 5. A budget that includes an estimate of

the costs for conducting the project. Estimates shall be provided for all major planned activities or purchases by category;

1. 6. Documentation that all required pro-

posal content has been received and reviewed by the district executive board including cost estimates, verification that all applicable federal, state and local permits, approvals, licenses or waivers necessary to implement the project are either not needed or have been applied for, and demonstration of compliance with local zoning ordinances;

1. 7. The type of waste and estimated ton-

nage to be diverted from landfills or other measurable outcomes;

1. 8. A description of the evaluation proce-

dures to be used throughout the project to measure the success or benefit of the project;

1. 9. For projects involving awards over

fifty thousand dollars ($50,000), supporting documentation must be provided to demonstrate technical feasibility, including a preliminary project design, preliminary engineering plans and specifications for any facilities and equipment required for a proposed project, if applicable; and

1. 10. If requested by the department,

copies of any or all approved project proposals and supporting documents.

1. (5) District Subgrantee Procedures.

   1. (A) Notification by the Districts. The district executive boards shall request project proposals by giving written notification to the governing officials of each member county and city over five hundred (500) in population and by publishing a notice in a newspaper officially designated by the chief elected official of each member county, for public notices for every member county and city with a population over five hundred (500) within the district. The district executive board shall provide the written notification and newspaper notice at least thirty (30) days prior to when proposals are due. If the district executive board will request project proposals more often than annually, the district executive board may issue the written notification and newspaper notice annually specifying when the district will be accepting project proposals for the upcoming year.

   2. (B) Proposal Content and Supporting Documents. The districts shall, as appropriate, require the proposals to include but not be limited to the following information:

      1. 1. An executive summary of the project

objectives and the problem to be solved, referencing the district’s solid waste management plan component to which it applies;

1. 2. The location of the project and name,

address and phone number of the official subgrant recipient(s);

1. 3. A work plan which identifies project

tasks, the key personnel and their qualifications;

1. 4. A timetable showing anticipated dates

for major planned activities and expenditures, including the submittal of quarterly reports and the final report;

1. 5. A budget that includes an estimate of

the costs for conducting the project. Estimates shall be provided for all major planned activities or purchases by category and shall be supported by documentation showing how each cost estimate was determined. If the project includes matching 10 CSR 80-9

funds, the budget must delineate the percentages and dollar amounts of the total project costs for both district funds and applicant contributions;

1. 6. Verification that all applicable feder-

al, state and local permits, approvals, licenses or waivers necessary to implement the project are either not needed or have been obtained or applied for and will be obtained prior to an award;

1. 7. Demonstration of compliance with

local zoning ordinances;

1. 8. A description of the evaluation proce-

dures to be used throughout the project to quantitatively and qualitatively measure the success or benefit of the project;

1. 9. Documentation that shows a commit-

ment for the match, if applicable;

1. 10. The following supporting documents

for projects involving allocations over fifty thousand dollars ($50,000):

1. A. To demonstrate technical feasibili-

ty, a preliminary project design, preliminary engineering plans and specifications for any facilities and equipment required for a proposed project, if applicable;

1. B. A financial report including:

   1. (I) A three (3)-year business plan

for the proposed project. For projects involving recycling and reuse technologies, the plan shall include a market analysis with information demonstrating that the applicant has secured the supply of and demand for recovered material and recycled products necessary for sustained business activity;

1. (II) A description of project financ-

ing, including projected revenue from the project; and

1. (III) A credit history; and/or up to

three (3) years’ previous financial statements or reports; or for governmental entities a bond rating;

1. 11. Confidential business information

and availability of information. Any person may assert a claim of business confidentiality covering a part or all of that information by including a letter with the information which requests protection of specific information from disclosure. Confidentiality shall be determined or granted in accordance with Chapter 610, RSMo. However, if no claim accompanies the information when it is received by the department, the information may be made available to the public without further notice to the person submitting it; and

1. 12. In the event that more than one (1)

solid waste management district proposes to participate in a project as joint subgrantees, each participating district’s responsibilities will be outlined in the subgrantee Financial Assistance Agreement. One (1) of the participating districts must be designated as project manager. The project will be administered as provided for in sections (5) and (6) of this rule.

1. (C) A project period shall be determined that will allow an adequate time period for the subgrantee to accomplish the purpose of the project and provide reporting of the results and accomplishments. Project and budget periods may allow for up to a two (2)- year time period for project completion. A maximum of one (1) six (6)-month extension may be allowed beyond the two (2) years when approved by the executive board. Any extension of the project or budget periods beyond two (2) years and six (6) months must have the prior approval of the executive board and the department.

2. (D) Proposal Review and Evaluation. The executive boards must review, rank and approve proposals as outlined in this subsection. The executive board may appoint a committee to review and rank proposals. The executive board shall make final approval.

   1. 1. Review for eligibility and complete-

ness. For all proposals received by the deadline as established in their public notices to the media, the board shall determine the eligibility of the applicant, the eligibility of the proposed project, the eligibility of the costs identified in the proposal and the completeness of the proposal.

1. 2. Notice of eligibility and complete-

ness. If the district executive board determines that the applicant or the project is ineligible or incomplete, the board may reject the proposal and shall notify the applicant. A project may be resubmitted up to the application deadline.

1. 3. Proposal evaluation. The executive

board or their appointed committee shall evaluate each proposal that is determined to be eligible and complete. The board will develop a District Targeted Materials List to be used as one of the evaluation criteria. The evaluation method will include the following criteria, as appropriate per project category:

1. A. Conformance with the integrated

waste management hierarchy as described in the Missouri Policy on Resource Recovery, as incorporated by reference in this rule;

1. B. Conformance with the District

Targeted Materials List;

1. C. Degree to which the project con-

tributes to community-based economic development;

1. D. Degree to which funding to the

project will adversely affect existing private entities in the market segment;

1. E. Degree to which the project pro-

motes waste reduction or recycling or results in an environmental benefit related to solid waste management through the proposed process;

1. F. Demonstrates cooperative efforts

through a public/private partnership or among political subdivisions;

1. G. Compliance with federal, state or

local requirements;

1. H. Transferability of results;
2. I. The need for the information;
3. J. Technical ability of the applicant;
4. K. Managerial ability of the appli-

cant;

1. L. Ability to implement in a timely

manner;

1. M. Technical feasibility;
2. N. Availability of feedstock;
3. O. Level of commitment for financ-

ing;

1. P. Type of contribution by applicant;
2. Q. Effectiveness of marketing strate-

gy;

1. R. Quality of budget; and
2. S. Selected financial ratios.
3. 4. The executive board shall develop

minimum criteria for the approval of grant funding.

1. (6) District Documentation.

   1. (A) Subgrantee Proposals. The following documentation must be submitted by the district to the department as part of the grant application process:

      1. 1. A completed project request summa-

ry form provided by the department that includes, at a minimum, the following information:

1. A. Copies of the executive summaries

of the eligible proposals submitted to the executive board, or narratives prepared by the district, that describe the location of project, project objectives, tasks and general timeline of each eligible proposal;

1. B. For each project approved for an

award by the executive board indicate the name of the project, the project number assigned by the district and:

1. (I) The total amount awarded to

each project, what amount is awarded from the current undisbursed allocation funding, any carryover from previous awards by the district and the source of the carryover, and any interest accrued by the district;

1. (II) The project budget by category;
2. (III) The type of waste and estimat-

ed tonnage to be diverted from landfills or other measurable outcomes;

1. (IV) The project start and stop

dates; and

1. (V) Documentation that all

required proposal content has been received and reviewed by the district;

1. 2. The aggregate executive board rank-

ings for each of the eligible proposals or documentation that the proposals meet the minimum criteria for funding set by the executive board using the evaluation criteria as described in paragraph (5)(D)3.;

1. 3. If requested by the department,

copies of any or all approved project proposals and supporting documents;

1. 4. A copy of the notices given to the

governing bodies and published in the newspapers within the district;

1. 5. A copy of the subgrantee(s) financial

assistance agreement between the district and subgrantee(s), any amendments made to the subgrantee(s) financial assistance agreement indicated in subsection (7)(H) of this rule and invoice; and

1. 6. Documentation that the executive

board discussions and votes for approved subgrants took place in open session, in accordance with sections 610.010 to 610.200 of the Missouri Sunshine Law.

1. (B) Quarterly Reports. On quarterly status report forms provided by the department, the district shall submit the following information to the department thirty (30) days after the end of each state fiscal year quarter:

   1. 1. Project status. For each plan imple-

mentation and district subgrantee project in progress the district shall provide:

1. A. The details of progress addressing

the project tasks outlined in the plan implementation application or subgrantee financial assistance agreement;

1. B. Problems encountered in project

execution;

1. C. Budget adjustments made within

budget categories, with justifications;

1. D. The weight in tons of waste divert-

ed for each type of recovered material utilized in the project for the most recent quarter following the implementation of the diversion activity or other measurable outcomes, as appropriate;

1. E. A copy of an amended subgrantee

financial assistance agreement, if appropriate; and

1. F. Other information necessary for

proper evaluation of the progress of the projects.

1. 2. In the event that a time period for a

project is less than a full year, only quarterly information appropriate to the project time period need be included in the district report.

1. 3. Project financial summary. For each

grant (district operations, plan implementation and district subgrantee project) the district shall provide:

1. A. The original award amount taken

from the accrued allocation held by the department;

1. B. Any district carryover used to fund

a project or district operations;

1. C. Any accrued interest income used

to fund a project or district operations;

1. D. Total grant award for that project

or district operation (total of subparagraphs (6)(B)3.A., B., and C. of this rule);

1. E. Cumulative amount of district dis-

bursement of funds to each subgrantee or to the district during that reporting period;

1. F. Balance of that project or district

operations during that reporting period;

1. G. Any carryover funding held by the

district that has not been obligated for projects or district operations; and

1. H. Any accrued interest income held

by the district that has not been obligated for projects or district operations.

1. 4. Final project reports. The district

shall submit to the department a final report for each plan implementation or district subgrantee project that shall contain the same information as described for project status in paragraph (6)(B)1. of this rule, as well as a comparison of actual accomplishments to the goals established and a description as to how goals were either met, not met or were exceeded.

1. 5. District operations status:

   1. A. The details of progress in com-

pleting the district operations tasks outlined in the district operations application;

1. B. Problems encountered in district

operations;

1. C. Required budget amendments; and
2. D. Other information necessary for

proper evaluation of district operations.

1. (C) District Annual Report. The district shall submit to the department within one hundred twenty (120) days of the end of the state fiscal year a report covering the following information for the state fiscal year:

   1. 1. Goals and accomplishments. A

description of the district solid waste management goals, actions taken to achieve those goals and the goals that have been set for the upcoming state fiscal year;

1. 2. Types of projects and results, includ-

ing:

1. A. A summary of the projects that

included goals to divert solid waste tonnage from landfills, including number and costs of projects, tons diverted and average cost per ton diverted, and other measurable outcomes achieved;

1. B. A summary of the projects that did

not have waste diversion goals, including number and costs of projects, and measurable outcomes achieved; and

1. C. Separate statistics for items banned

by statute from landfills and items that are not banned from landfills;

1. 3. A description of the district’s grant

proposal evaluation process; and

1. 4. A list of district council and executive

board members, including their affiliation(s).

1. (7) Executive Board Accountability.

   1. (A) The executive board shall comply with the department’s reporting requirements, pursuant to section (6) of this rule.
   2. (B) An executive board receiving funds from the Solid Waste Management Fund for district grants shall themselves maintain, and require recipients of financial assistance to maintain, an accounting system according to generally accepted accounting principles that accurately reflects all fiscal transactions, incorporates appropriate controls and safeguards, and provides clear references to the project as agreed to in the Financial Assistance Agreement. Accounting records must be supported by source documentation such as cancelled checks, paid bills, payrolls, time and attendance records, contract, and agreement award documents.
   3. (C) The executive board shall adopt a conflict of interest policy regarding grants to subgrantees. This policy shall include a requirement that any non-governmental member of the executive board, or the business or institution to which the member is affiliated, who applies for district grants shall not review, score, rank or approve any of the subgrantee applications for the same grant call.
   4. (D) Payments to grant recipients shall be on a reimbursement basis. The executive board shall retain fifteen percent (15%) of the funds from the recipient until the project is complete. A project shall be deemed complete when the project period has ended and the board gives approval to the grant recipient’s final report and the final accounting of project expenditures. The district may make payment directly to a vendor instead of reimbursing the grant recipient provided the executive board approves the direct payment, goods or services being purchased by the grant recipient have been received, and the executive board retains fifteen percent (15%) of the funds until completion of the grant project. For reimbursements or direct payments, the district may release the fifteen percent (15%) retainage prior to completion of the grant project with prior approval of the executive board and the department.

   5. (E) Retention and Custodial Requirements for Records.

      1. 1. The executive board shall retain all

records and supporting documents directly related to the funds and projects for a period of three (3) years from the date of submission of the final status report and make them available to the department for audit or examination.

1. 2. If any litigation, claim, negotiation, 10 CSR 80-9

audit or other action involving the records has been started before the expiration of the three (3)-year period, the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular three (3)-year period, whichever is later.

1. (F) All general and special terms and conditions of the department applicable to the project will be applicable to recipients of awards made available by this chapter.
2. (G) The executive board shall address all deficiencies identified in a district’s audit to the satisfaction of the department. Districts failing to adequately address deficiencies identified in the audit may have funds withheld or may be required to repay any and all disbursements of funds in accordance with section (9) of this rule.
3. (H) Funding for approved subgrants will be forwarded to the districts upon receipt of a completed, signed and dated invoice and subgrantee financial assistance agreement for each individual subgrant.
4. (I) Except as otherwise provided by law, within eighteen (18) months after the effective date of this rule, the executive board shall use a competitive bid process to obtain administrative services, office space rental, and other district operations services, except for employees who are directly employed by the district. Contracts shall not exceed five

1. (5) years in duration.

   1. (J) The executive board shall have their records audited by a certified public accountant or firm of certified public accountants pursuant to section 260.325, RSMo. Districts shall arrange to have the audit conducted and submit to the department a complete audit report prepared by the certified public accountant or firm of certified public accountants within one hundred eighty (180) days of the end of the period covered by the audit.
   2. (K) For capital assets over five thousand dollars ($5,000) purchased in whole or in part with district funds and in which a security interest is held, the executive board must maintain property records. At a minimum these records shall include a description of the equipment, a serial number or other identification number, the source of the property, the acquisition date, cost of the property, percentage of state funds used in the cost of the property, and the location, use and condition of the property.
   3. (L) The executive board shall insure that a physical inventory is conducted of property purchased with district funds and the results reconciled with the property records at least once every two (2) years.
   4. (M) For capital assets over five thousand dollars ($5,000) purchased in whole or in part with district funds, by the district or subgrantee, the executive board shall ensure that insurance is procured and maintained that will cover loss or damage to the capital assets with financially sound and reputable insurance companies or through self-insurance, in such amounts and covering such risks as are usually carried by companies engaged in the same or similar business and similarly situated.
   5. (N) Pursuant to section 260.320.3, RSMo, the executive board shall appoint one (1) or more advisory committees and ensure that the advisory committee(s) meet annually, at a minimum.

   6. (O) Planning Requirements. Pursuant to section 260.325, RSMo, the board shall review the district’s solid waste management plan at least every twenty-four (24) months for the purpose of evaluating the district’s progress in meeting the requirements and goals of the plan, and shall submit plan revisions to the department and council. At a minimum, the executive board shall submit plan revisions by April 1 of each odd-numbered year that include, but are not limited to:

      1. 1. An inventory of solid waste services

in the planning area on forms provided by the department. Service information shall include:

1. A. The solid waste collection services

available to residential and commercial customers;

1. B. The recycling services available to

residential and commercial customers;

1. C. The services available for manage-

ment of items banned from Missouri landfills, pursuant to section 260.250, RSMo; and

1. D. The services available for manage-

ment of household hazardous wastes;

1. 2. Pursuant to section 260.320.3,

RSMo, a list of advisory boards, members of each and documentation of meetings; and

1. 3. A description of illegal dumping

identification, public education and household hazardous waste activities and programs established by the executive board, pursuant to section 260.320.3, RSMo.

1. (8) Awards.

   1. (A) District Awards. All district grant awards are subject to the state appropriation process. District grant awards will be disbursed to the district as provided for in subsection (2)(C) of this rule within thirty (30) days of the receipt by the department of all applicable applications and documentation per sections (3), (4), and (6) of this rule from the executive board of the district. In the case of questions regarding specific costs contained in the district operations application, the funds for costs not in question will be disbursed to the district.

   2. (B) District Subgrantee Project Awards.

      1. 1. All district subgrantee grant awards

are subject to the appropriation process.

1. 2. Before the districts distribute awarded

funds to a subgrantee, the subgrantee shall do the following:

1. A. Obtain all applicable federal, state

and local permits, approvals, licenses or waivers required by law and necessary to implement the project;

1. B. Enter into a subgrantee financial

assistance agreement, or an amended subgrantee financial assistance agreement if appropriate, issued by the district which is consistent with the Solid Waste Management Law and department rules and all terms and conditions of the district’s financial assistance agreement; and

1. C. Submit all required quarterly and

final reports.

1. (9) Withholding of District Funds.

   1. (A) The department may withhold or reduce district grant awards until the district is in compliance with the following:

      1. 1. Solid Waste Management Law and

regulations;

1. 2. Planning requirements pursuant to

section 260.325, RSMo;

1. 3. All general and special terms and

conditions of the district’s financial assistance agreement;

1. 4. Audit requirements;
2. 5. Resolution of significant audit find-

ings and questioned costs; and

1. 6. All reporting requirements and plan

revisions indicated in this rule.

1. (B) The department shall provide written notice of noncompliance prior to the withholding of funds, unless the severity of a significant audit finding requires the immediate withholding of funds. Such notice shall allow a minimum of thirty (30) days for the district to submit the documentation or conduct other tasks as indicated in the department’s notice.

2. (C) If a district fails to submit to the department a complete quarterly report, annual report or plan revision by the due date indicated in the department’s notice of noncompliance, the department shall withhold and reallocate funds equal to one percent (1%) of the district’s most recent quarterly allocation for each day past the notice due date, unless these provisions have been met:

   1. 1. The district has requested an exten-

sion prior to the notice due date and the department has granted an extension;

1. 2. The district has submitted a complete

report by the date indicated in the department approved extension; and

1. 3. The department shall use the post-

mark date as the date submitted by the district. If no postmark date is available, the department shall use the date the department receives the report.

1. (D) For questioned costs that the department determines to be inappropriate or unnecessary, the district shall repay the department or the department shall withhold from the district’s allocation the amount of the cost, following the department’s written request.
2. (E) For funds withheld from a district or repaid by a district, the department shall reallocate these funds to all districts that, at the time of the reallocation, are in compliance with all requirements and have addressed all deficiencies identified in a district’s audit to the satisfaction of the department. The reallocation shall be made to districts in accordance with the allocation criteria pursuant to section 260.335, RSMo.

1. (10) Dispute Resolution. The district and the department shall attempt to resolve disagreements concerning the administration or performance of the district. If an agreement cannot be reached within ninety (90) days of the issuance of the notice of noncompliance, the department’s Solid Waste Management Program director will provide a written decision. The Solid Waste Management Program director may consult with the Solid Waste Advisory Board prior to providing this decision. Such decision of the program director shall be final unless a request for review is submitted to the Division of Environmental Quality director within thirty (30) days of the receipt of the program director’s decision. The division director shall provide a final decision within thirty (30) days of the receipt of the district’s request. A decision by the division director shall constitute final department action. Such request shall include:

   1. (A) A copy of the program director’s written decision;
   2. (B) A statement of the amount in dispute;
   3. (C) A brief description of the issue(s) involved; and
   4. (D) A concise statement of the objections to the final decision.

AUTHORITY: sections 260.225, RSMo 2000 and 260.335, RSMo Supp. 2006.* Emergency rule filed Dec. 2, 1992, effective Dec. 12, 1992, expired April 11, 1993. Original rule filed Dec. 2, 1992, effective Aug. 9, 1993. Amended: Filed Dec. 14, 1999, effective Aug. 30, 2000. Amended: Filed Jan. 5, 2007, effective Oct. 30, 2007. *Original authority: 260.225, RSMo 1972, amended 1975, 1986, 1988, 1990, 1993, 1995 and 260.335, RSMo 1990, 1993, 1995, 2004, 2005.