(a) The Rural Development State Office shall review the docket to determine whether the proposed grant complies with this subpart and that funds are available.

(b) The Rural Development State Director shall be the approving officer on all grants made under this subpart.

(c) If at any time prior to grant approval it is decided that favorable action will not be taken on a preapplication or application, the Rural Development State Director will notify the applicant in writing of the reasons why the request was not favorably considered. The notification to the applicant will state that a review of this decision by Rural Development may be requested by the applicant in accordance with RD Instruction 1900-B.

(d) If a grant is recommended, Form RD 1940-1 and the proposed grant agreement and scope of work will be prepared and forwarded to the applicant for signature.

(e) When Form RD 1940-1 and the grant agreement and scope of work are received by the applicant, the applicant will sign these documents and forward them to the State Director.

(f) Exhibit A to RD Instruction 2015-C (available in any Rural Development office) will be prepared by the State Director and sent to the Director, Legislative and Public Affairs Staff (LAPAS), in the Rural Development National Office.

(g) If the State Director approves the project, the following actions will be taken in the order listed:

(1) The State Director, or a designee, will telephone the Finance Office requesting that grant funds for a particular project be obligated. Immediately after contacting the Finance Office, the requesting official shall furnish the requesting office's security identification code. Failure to furnish the security code will result in the rejection of the request of obligation. After the security code is furnished, the required information from Form FmHA or its successor agency under Public Law 103-354 440-1 shall be furnished to the Finance Office. Upon receipt of the telephone request for obligation of funds, the Finance Office shall record all information necessary to process the request for obligation in addition to the date and time of request.

(2) The individual making the request shall record the date and time of the request.

(3) The Finance Office will notify the Rural Development State Office by telephone when funds are reserved and the date the funds will be obligated. If funds cannot be reserved for a project, the Finance Office will notify the Rural Development State Office that funds are not available. The obligation date will be the date the request for obligation is processed.

(4) The Finance Office will send Form RD 440-57, “Acknowledgement of Obligated Funds/Check Request,” to the Rural Development State Director, informing the State Director of the reservation of funds with the obligation date inserted as required by Item 9 on the Forms Manual Insert (FMI) for Form RD 440-57.

(5) Form FmHA or its successor agency under Public Law 103-354 440-1 will not be mailed to the Finance Office.

(6) A copy of Form RD 1940-1 will be sent the Rural Development National Office.

(7) The State Director shall notify the Director, LAPAS, in the Rural Development National Office with a recommendation that the project announcement be released.

(8) An executed copy of Form FmHA or its successor agency under Public Law 103-354 440-1 shall be sent to the applicant along with an executed copy of the grant agreement and scope of work 6 working days from the date funds are obligated.

(9) The actual date of applicant notification will be entered on the original of Form FmHA or its successor agency under Public Law 103-354 440-1 and the original of the form will be included as a permanent part of the file.

(10) For planning grants, Standard Form 270, “Request for Advance or Reimbursement,” will be sent to the applicant for completion and return to Rural Development. For site acquisition and site development grants, Standard Form 271, “Outlay Report and Request for Reimbursement for Construction Programs,” will be sent to the applicant for completion and returned to Rural Development.

(11) If it is determined that a project will not be funded or if major changes in the scope of the project are made after release of the approval announcement, the Rural Development State Director will notify the Director, LAPAS by telephone or electronic mail giving the reasons for such action. The Director, LAPAS, will inform all parties who were notified by the project announcement that the project will not be funded or of major changes in the project using a procedure similar to the announcement process. Form RD 1940-10, “Cancellation of U.S. Treasury Check and/or Obligation,” will not be submitted to the Finance Office until five working days after notifying the Director, LAPAS.