Current through Register Vol. 49, No. 2, February 2024
I.
Introduction
Overview
As a key component of Governor Asa Hutchinson's 2015 Military Affairs
Initiative, to grow, support, and promote the state's military missions,
installations and related economic development interests, inaugural funding was
appropriated to the Arkansas Economic Development Commission (AEDC) in 2016 to
establish the Military Affairs Grant Program (MAGP).
Funds allocated to the MAGP may be granted, at the discretion of the
AEDC Executive Director (Executive Director), to applicants meeting eligibility
requirements for projects and programs that strengthen and sustain military
installations in Arkansas, resulting in economic growth in host communities,
surrounding regions, and the State of Arkansas. As such, grants are intended to
leverage, not supplant, other funding sources.
Pursuant to authority granted under §
15‐4‐209(a)(1) and §
15‐4‐209(b)(5), AEDC has established these rules governing
administration of the MAGP.
Program Rule Summary
1. AEDC will periodically solicit MAGP
applications as funding becomes available.
2. Eligible applicants shall submit completed
applications, on forms prescribed by AEDC and in accordance with submittal
deadlines, to request grant funding from the MAGP.
3. The AEDC Military Affairs Director
(Director), with advice from the Governor's Military Affairs Steering Committee
(Committee), shall review and recommend applications for grant funding to the
Executive Director.
4. Applicants
receiving approval from the Executive Director shall execute grant agreements
with AEDC specifying grant terms and conditions.
5. Grant funding shall be made available to
grantees on a cost incurred basis, subsequent to submittal of requests for
payment on forms prescribed by AEDC.
6. Grantees shall submit quarterly progress
reports throughout the duration of the grant project in accordance with grant
terms and conditions.
7. A
contingency of up to ten percent (10%) of the grant award may be withheld from
final payment until all closeout documents have been submitted and have been
approved by AEDC.
Contact Information
For more information, please contact:
Arkansas Economic Development Commission
Military Affairs Director
900 West Capitol
Little Rock, AR 72201
(501) 682-5196
II.
Rulemaking Authority
The AEDC has authority, at § 15‐4‐209(b)(5),
to promulgate rules necessary to administer the MAGP.
III.
Definitions
1. "AEDC" means the Arkansas Economic
Development Commission;
2. "City"
means any city of the first class, city of the second class, or any
incorporated town in this state;
3.
"Committee" means the Governor's appointed Military Affairs Steering
Committee;
4. "County" means any
county in this state;
5. "Economic
development organization" means an organization registered in good standing
with the Secretary of State's Office whose major objectives are to promote
community and economic development in a geographic area within the State of
Arkansas;
6. "Eligible applicant"
means a:
A. City;
B. County;
C. Economic development
organization;
D. Military Community
Council;
E. Military installation;
and
F. State agency;
7. "Ineligible costs" means:
A. Obligations incurred prior to the
eligibility date for incurring project costs as specified in the grant
agreement;
B. Expenditures for
routine repair, maintenance, and operation;
C. Expenditures that are unsupported by
documentation;
D. Project
administration costs, including salaries and benefits for grantee personnel, in
excess of ten percent (10%) of the grant award;
E. Lobbying expenditures;
F. Purchases of alcohol;
G. Entertainment expenses, including meals
and activity fees;
H. Travel not
directly related to the project; and
I. Purchases of material and services that
result in benefits accruing to areas outside the State of Arkansas;
8. "MAGP" means the Military
Affairs Grant Program as administered by the Arkansas Economic Development
Commission;
9. "Military Community
Council" means an organization registered in good standing with the Arkansas
Secretary of State's Office whose major objectives are to promote cooperation
between military and civilian components of its designated geographic area by
providing required infrastructure, safe and secure communities, support
services, and a high quality of life through the adoption and implementation of
matters of joint interest. Proof of documentation of Military Community
Councils shall consist of:
A. Proof of legal
organization as a business entity in good standing with the Arkansas Secretary
of State's Office;
B. A copy of the
council's current bylaws or governing documents approved by the council's
governing board;
C. A map of the
geographic region covered by the council;
D. The identity of each public organization
and private organization comprising the council and the role each organization
will undertake in the project; and
E. A list of the current members of the
council's board of directors;
10. "Military installation" means:
A. Facilities located in Arkansas under the
jurisdiction of the United States Department of Defense or the Arkansas State
Military Department, including a:
(i)
Base;
(ii) Camp;
(iii) Post;
(iv) Station;
(v) Yard;
(vi) Center; and
(vii) Homeport facility for any
ship.
B. "Military
installation" does not include any facility used primarily for:
(i) National guard armories;
(ii) Civil works;
(iii) Rivers and harbors projects;
and
(iv) Flood control
projects.
IV.
Eligibility
Applicants
To be eligible to receive MAGP funding, an applicant shall:
1. Meet program objectives stated in these
rules;
2. Meet the definition of
"eligible applicant";
3. For
projects within the legal boundaries of military installations, provide written
support for the project by the commander of the military installation to which
benefits will accrue; and
4. Submit
a completed application, under forms and guidelines provided by AEDC to the
Director.
Eligible Costs
The AEDC will review all expenditure requests prior to payment to
ensure that costs are consistent with the terms and conditions of the grant
agreement and are not "ineligible costs" as defined by these rules. The AEDC
reserves the right to disallow all ineligible costs. It is the intention of
AEDC to fund only expenditures directly related to projects.
V.
Application Process
Application Submittal
The AEDC will periodically solicit MAGP applications as funding becomes
available. To request funds under the MAGP, eligible applicants shall,
utilizing forms prescribed by AEDC, submit a completed, signed application with
all supporting documentation to the Director by the specified submittal due
date. Applications shall include:
1. A
project title;
2. Applicant contact
information;
3. Organizational
information;
4. Sources of all
funds, including prior MAGP awards, for this project;
5. Previous MAGP awards not included in item
4 above;
6. Proposal
information;
7. The amount of
funding requested; and
8. Start and
completion dates of the project.
Application Review and Approval
No grant offer shall be made by the Executive Director to an applicant
until the applicant has completed the following review and approval
process.
1. The Director shall conduct
a preliminary review of each application to confirm that it:
A. Was received on or before the due date
specified in the application solicitation;
B. Was submitted by an eligible
applicant;
C. Meets the objectives
of the program;
D. Identifies
clearly defined, measurable outcomes;
E. Includes a letter of support from the
installation commander if the project is located within the legal boundaries of
the military installation; and
F.
Is complete, including all required appendices and attachments.
2. All applications meeting
preliminary review requirements, as determined by the Director, will be
forwarded to the Committee at least fifteen (15) days prior to the next
scheduled Committee meeting.
3. The
Committee shall:
A. Review each application
in accordance with the MAGP Funding Recommendation Worksheet; and
B. Forward completed MAGP Funding
Recommendation Worksheets to the Director.
4. The Director shall review each application
in accordance with AEDC scoring criteria and funding recommendations provided
by the Committee.
5. Upon
completion of reviews, the Director will provide funding recommendations to the
Executive Director.
6. The
Executive Director, after reviewing the Director's recommendations, will
specify which applicants may receive grants.
A. Unsuccessful applicants will be notified
in writing by the Director.
B.
Approved applicants will be required to execute a grant agreement with AEDC
outlining the amount, terms, and conditions of the grant.
VI.
Grant
Agreements
1. All MAGP grants shall be
awarded at the discretion of the Executive Director. Grant agreements shall
specify:
A. The eligibility date for
incurring project costs;
B. The
date by which the grantee shall complete the MAGP‐funded portion of
the project;
C. Terms and
conditions of the grant agreement;
D. The amount of approved costs, determined
through negotiations with the Director and applicant; and
E. The process by which grant funds shall be
disbursed to the grantee.
2. The amount of the grant shall be
discretionary and may be for amounts less than requested, subject to funding
availability, and Executive Director's discretion.
3. Grants may be funded from any source of
funds allocated to the MAGP.
4.
Grants will be executed according to the following process:
A. Two original copies of the grant agreement
will be prepared by the Director and forwarded to the grantee for signature and
return.
B. Upon receipt of the
signed grant agreements from the grantee, the Director will prepare an approval
letter and forward the grant agreement and the approval letter to the Executive
Director for signature.
C. One
original copy of the grant agreement will be forwarded to the grantee with the
approval letter.
VII.
Grant Disbursement
1. Expenditures incurred before the
eligibility date for incurring projects costs specified in the grant agreement
are ineligible.
2. A contingency of
up to ten percent (10%) of the grant award may be withheld from final payment
until all closeout documents have been submitted and have been approved by
AEDC.
VIII.
Reporting
Grantees shall submit quarterly progress reports throughout the
duration of the grant agreement in accordance with terms specified in the grant
agreement. Failure to submit reports in a timely manner may delay disbursement
of grant funds.
Quarterly reports shall be made available for discussion by the
Committee and Director at Committee meetings.
