Tobacco-Free Communities in Minnesota
Grantee Reference Guide
Updated November 2015
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Table of Contents
Introduction .................................................................................................................................... 3
Overview ......................................................................................................................................... 4
Grant Program Requirements and Expectations ............................................................................ 4
General Requirements ................................................................................................................ 4
Staffing Requirements................................................................................................................. 5
Program Requirements ............................................................................................................... 5
Communications Requirements .................................................................................................. 5
Reporting Requirements ............................................................................................................. 6
Financial Requirements and Fiscal Responsibilities .................................................................... 8
Financial Documentation and Record Retention............................................................................ 9
Payment and Reporting Procedures and Deadlines ..................................................................... 10
Monthly Invoicing...................................................................................................................... 10
Invoicing Periods and Due Dates............................................................................................... 10
Invoicing .................................................................................................................................... 12
Financial Items Requiring MDH Prior Approval ........................................................................ 13
Unallowable Uses of TFC Grant Funds .......................................................................................... 17
Lobbying ........................................................................................................................................ 18
Appendix: Terminology ................................................................................................................. 19
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Introduction
The Minnesota Legislature dedicates $3.2 million annually for Tobacco Use Prevention funding
under Minnesota Statute 144.396 for the Commissioner of Health to award. The goal of these
funds is to reduce tobacco use among youth in Minnesota and to promote statewide and local
tobacco use prevention activities.
The Minnesota Department of Health’s (MDH) Tobacco Prevention and Control (TPC) Unit is
responsible for implementing the Tobacco-Free Communities in Minnesota (TFC) grant
program. Approximately $1.95 million in state grant funds were awarded through a competitive
process through the TFC grant program. TPC is also responsible for managing, monitoring and
evaluating the grantees’ activities and budgets and providing a bi-annual report to the
Legislature.
The TFC grant program seeks to: prevent the initiation of tobacco use, reduce current tobacco
use among adults and youth, eliminate exposure to secondhand smoke, and identify and
eliminate tobacco-related health disparities. TPC will address these strategic priorities through
TFC and American Indian grant funding and by implementing or supporting other statewide
initiatives and strategic approaches.
The TFC grant program focuses on implementing local tobacco control policy, systems, and
environmental change (PSE) efforts through a range of evidence-based strategies and
statewide technical assistance and training to assist the grantees in their efforts.
The focus of the TFC grant program is to address tobacco-related disparities in Minnesota.
Tobacco use and exposure rates are highest among specific populations in Minnesota. In an
effort to address and reduce tobacco-related disparities, the targeted populations for the TFC
include but are not limited to: youth; young adults; populations of low socio-economic status
(SES); racial and ethnic populations; the lesbian, gay, bisexual and transgender population; and
other at-risk or high risk populations. A copy of the TFC Request for Proposals (RFP) may be
found at www.health.mn.gov/tfc under “Grantee resources”.
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Overview
This guide is intended to assist TFC grantees to ensure program success. It contains topics
related to 2013-2016 TFC grant period including program, financial, and procedural
requirements that govern the grant process. It does not replace established state policies or
regulations governing the administration of grants.
This information is based on established policies and regulations that are current as of the date
of publication. Grantees are responsible for being aware of and abiding by all applicable
statues, regulations, principles and policies; for abiding by the grant agreement with MDH; and
for staying abreast of changes or issuances relating to the administration of grants.
Grant Program Requirements and Expectations
The TFC grant program is state-funded, public program and as such it is subject to oversight by
the state of Minnesota and must follow certain requirements and laws. In order to maintain the
integrity of the TFC grant program, grantees are expected to exercise caution in determining
how their funds will be spent to support implementation of the strategies included in their
work plans.
These TFC funding requirements and restrictions apply to all TFC grantees. MDH has assigned a
TFC Community Specialist to oversee your grant agreement with the state. The TFC Community
Specialist’s role is to ensure grant program success and to assist grantees with administrative
and reporting requirements. Grantees and subcontractors are required to comply with the
following grant requirements:
General Requirements
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Participate in site visits, risk assessment, and grant reconciliation processes with MDH.
Participate in all state-sponsored technical assistance calls, webinars, trainings, and all
state-sponsored conference calls.
Attend state-sponsored conferences, meetings, and in-person trainings.
Ensure funds are not used for lobbying, which is defined as advocating for a specific
public policy after it has been formally introduced to a legislative body. Educating
people about the importance of policies as a public health strategy is allowed with TFC
funds. Education includes providing facts, assessment data, reports, program
descriptions, and information about budget issues and population impacts without
making a recommendation on a specific piece of legislation. Education may be provided
to public policy makers, other decision makers, specific stakeholders, and the general
community. Lobbying restrictions do not apply to informal/private policies. Refer to
page 18 for more details on lobbying.
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Staffing Requirements
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Designate or hire a full-time staff project coordinator or equivalent. This person will be
responsible for coordinating the activities of the grant and serve as the primary contact
person.
Obtain written prior approval from your TFC Community Specialist to make any changes
in the level of staffing. This includes reducing or increasing the hours staff are working.
Contact your TFC Community Specialist when new staff is hired.
Contact your TFC Community Specialist if grant staff have submitted a letter of
resignation.
Program Requirements
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Submit a revised work plan and budget by their due dates. Work with your TFC
Community Specialist to finalize work plans and budget. The revised work plan and
budget must be approved by your TFC Community Specialist.
Demonstrate and track outcomes identified in your work plan.
Contact your TFC Community Specialist for prior approval of any significant work plan
changes.
Contact your TFC Community Specialist if you encounter difficulty implementing your
activities.
Communications Requirements
All communications materials developed with TFC funds by TFC grantees, subcontractors or
mini-grant recipients must be approved by the TFC Community Specialist prior to the printing,
posting or release.
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Obtain written prior approval for development and/or placement of the following paidmedia or print communications:
o Radio, television, billboards, and movie theater ads;
o Ads in newspapers, magazines, journals, trade or association publications,
electronic newsletters, or websites;
o Posters, flyers, brochures, or pamphlets
Obtain written prior approval for the development and implementation of the following
evaluation tools:
o Surveys (development and implementation), survey questions, survey results;
o Focus group questions, process, and results
Consult with your TFC Community Specialist on the development of press releases,
blogs, public service announcements, and news conferences.
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Acknowledgement Guidelines
Consult with your TFC Community Specialist to determine the acknowledgement guidelines for
all communication materials, including earned and paid media, developed under the TFC grant.
Communication pieces must conform to uniform standards. This includes:
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News releases or press packets;
Ads for radio, television, billboards, and movie theaters;
Ads in newspapers, magazines, journals, trade or association publications, electronic
newsletters, or websites;
Posters, flyers, brochures, or pamphlets;
Social media (Facebook, Twitter, etc.), paid-media, or print communications
The following language must appear on items printed and produced with TFC grant funds:
“This [message, publication, etc.] is made possible through a Tobacco-Free Communities
grant from the Minnesota Department of Health.”
Journal articles should include a disclaimer:
“Contents are solely the responsibility of the authors and do not necessarily represent the
official views of the Minnesota Department of Health.”
The following language must be stated for oral credit, during a presentation or interview:
“This [insert name program/project] is funded by a Tobacco-Free Communities grant from the
Minnesota Department of Health.”
Notify your TFC Community Specialist in writing:
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Before submitting an abstract or call for presentations at a national or state conference
paper, an article for publication, or presentation for a conference, including a poster
session, which would publicize your work. Draft versions of these items should be
shared with your TFC Community Specialist.
Before submitting a manuscript for publication based on work funded by this TFC grant.
If a paper, article, presentation or poster has been accepted for publication or a
conference.
Reporting Requirements
All TFC grantees are required to submit monthly progress reports by the deadline set by MDH
(approximately 30 days after the end of the reporting period). TFC grantees must use the TFC
reporting templates available on the TFC web site. TFC grantees must:
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Email monthly progress reports and invoices to your TFC Community Specialist
according to the schedule below.
The monthly progress report must show progress toward meeting the work plan
objectives. Monthly progress reports should correlate with invoices submitted for the
same time period.
Provide grant summary information to MDH upon request for incorporation in
legislative and other MDH reports.
Monthly Progress Reporting Periods and Due Dates
Monthly progress reports shall be submitted according to the schedule below. Your TFC
Community Specialist will provide guidance regarding the required content of the reports.
Year 1: Monthly Progress Reporting Period
February 1, 2013 – February 28, 2013
March 1, 2013 – March 31, 2013
April 1, 2013 – April 30, 2013
May 1, 2013 – May 31, 2013
June 1, 2013 – June 30, 2013
July 1, 2013 – July 31, 2013
August 1, 2013 – August 31, 2013
September 1, 2013 – September 30, 2013
October 1, 2013 – October 31, 2013
November 1, 2013 – November 30, 2013
December 1, 2013 – December 31, 2013
January 1, 2014 – January 31, 2014
Due Date:
March 31, 2013
April 30, 2013
May 31, 2013
June 30, 2013
July 31, 2013
August 31, 2013
September 30, 2013
October 31, 2013
November 30, 2013
December 31, 2013
January 31, 2014
February 28, 2014
Year 2: Monthly Progress Reporting Period
February 1, 2014 – February 28, 2014
March 1, 2014 – March 31, 2014
April 1, 2014 – April 30, 2014
May 1, 2014 – May 31, 2014
June 1, 2014 – June 30, 2014
July 1, 2013 – July 31, 2014
August 1, 2014 – August 31, 2014
September 1, 2014 – September 30, 2014
October 1, 2014 – October 31, 2014
November 1, 2014 – November 30, 2014
December 1, 2014 – December 31, 2014
January 1, 2015 – January 31, 2015
Due Date:
March 31, 2014
April 30, 2014
May 31, 2014
June 30, 2014
July 31, 2014
August 31, 2014
September 30, 2014
October 31, 2014
November 30, 2014
December 31, 2014
January 31, 2015
February 28, 2015
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Year 3: Monthly Progress Reporting Period
February 1, 2015 – February 28, 2015
March 1, 2015 – March 31, 2015
April 1, 2015 – April 30, 2015
May 1, 2015 – May 31, 2015
June 1, 2015 – June 30, 2015
July 1, 2013 – July 31, 2015
August 1, 2015 – August 31, 2015
September 1, 2015 – September 30, 2015
October 1, 2015 – October 31, 2015
November 1, 2015 – November 30, 2015
December 1, 2015 – December 31, 2015
January 1, 2016 – January 31, 2016
Due Date:
March 31, 2015
April 30, 2015
May 31, 2015
June 30, 2015
July 31, 2015
August 31, 2015
September 30, 2015
October 31, 2015
November 30, 2015
December 31, 2015
January 31, 2016
February 28, 2016
Year 4: Monthly Progress Reporting Period
February 1, 2016 – February 28, 2016
March 1, 2016 – March 31, 2016
April 1, 2016 – April 30, 2016
May 1, 2016 – May 31, 2016
June 1, 2016 – June 30, 2016
July 1, 2016 – July 31, 2016
August 1, 2016 – August 31, 2016
September 1, 2016 – September 30, 2016
October 1, 2016 – October 31, 2016
Due Date:
March 31, 2016
April 30, 2016
May 31, 2016
June 30, 2016
July 31, 2016
August 31, 2016
September 30, 2016
October 31, 2016
November 30, 2016
The Final Grant Narrative Report is due to MDH on December 15, 2016. Your TFC Community
Specialist will provide guidance regarding the required content of the report.
Evaluation Reports and Due Dates
The Evaluation Report for Year 1 is due to MDH on February 28, 2014, for Year 2 on February
28, 2015, for Year 3 on February 28, 2016, and Year 4 on November 30, 2016.
Financial Requirements and Fiscal Responsibilities
Grantees must be good stewards of the TFC grant funds they are awarded. Being a good
steward means grantees need to act in a fiscally responsible manner and spend grant funds
responsibly. Grantees should account for grant funds in accordance with state laws and
procedures for expending and accounting for its own funds, and be able to:
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Prepare required reports, and trace funds to a level of expenditures adequate to
establish that funds have not been used in violation of program restrictions.
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Provide for accurate, current, and complete disclosure of financial results of grant
activities.
Maintain accounting records which identify the source and use of grant funds to include
awards, obligations, unobligated balances, assets, liabilities, expenditures, and income.
Maintain internal controls that account for grant cash, property, and assets, safeguard
such, and assure that they are used solely for authorized purposes.
Compare actual expenditures with budgeted amounts, and relate financial information
to performance.
Determine the reasonableness and allowability of costs in accordance with program
requirements and terms of the grant agreement and charge the grant for only the
activities that were in the approved work plan and budget.
Support accounting records with source documentation.
Submit monthly invoices according to the schedule in the grant agreement also located
on page 10. All financial transactions will be on a reimbursement basis only.
Obtain prior approval from MDH for all subcontracts or mini-grants over $5,000.
Obtain prior approval for significant changes in grant activities, and changes of more
than 25 percent to any budget line item.
Meet audit requirements.
Ensure that administrative costs are explained and justifiable.
Allocate 5-10% of overall funds for evaluation and designate a person to facilitate
evaluation tasks. Evaluation funds may be used for staff time or in the form of an
outside evaluation contractor. Report to the state other funding sources, including
grants from other sources, that are directed toward tobacco activities and have
accounting systems in place to track MDH-funded activities separately from activities
funded through other sources.
Ensure TFC funding does not supplant work funded through other sources. Use TFC
funds to develop new activities, expand or modify current activities that work to reduce
tobacco use and exposure, and/or replace discontinued funds from the state, the
federal government, or another third party previously used to reduce tobacco use and
exposure. Grantees may not use TFC funds to replace federal, state, local, or tribal
funding Grantee currently uses to reduce tobacco use and exposure.
Financial Documentation and Record Retention
TFC Grantees are responsible for keeping documentation to support all grant expenditures,
including payroll records; receipts for all grant related expenses; contracts and invoices with
subcontractors, consultants, and mini-grants; travel logs; and cancelled checks. The grantee
shall maintain the payroll books, payroll records, documents, accounting procedures and
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practices of the grant, and make them available to the state for six years from the end of the
grant. Grantees may receive a request for this information and must submit this documentation
to MDH upon request.
Payment and Reporting Procedures and Deadlines
Per the grant agreement with MDH: If grant deliverables are not completed satisfactorily, the
state has the authority to withhold and/or recover TFC funds as well as to terminate the project
agreement. Please see your grant agreement for more details and information.
Monthly Invoicing
All grantees are required to submit monthly invoices by the due dates listed below using the
standard TFC invoicing forms. These forms are available online at the TFC website and should
be completed and signed by the grantee’s fiscal agent. Invoices should be submitted
electronically via the Microsoft Excel-formatted document (not PDF) to your TFC Community
Specialist. If you do not have an electronic signature, you may type in the name.
All financial transactions will be on a reimbursement basis only. From Office of Grants
Management Policy 08-08, a “cost reimbursement payment” is a type of grant payment in
which the grantee incurs the expenses before requesting repayment from the grantor. This
means the cost must be paid by the grantee before it can be reimbursed. Expenditures on the
invoice submitted to MDH should agree with expenditure accounting records. Source:
http://mn.gov/admin/images/grants_policy_08-08.pdf.
Grantee requests for reimbursement must correspond to the line items in the approved grant
budget. The TFC Community Specialist shall review each invoice for reimbursement against the
approved grant budget, grant expenditures to-date, and the latest grant progress report before
approving payment. MDH reserves the right not to honor invoices that are submitted more
than 30 days after the submission date specified on page 12.
Invoicing Periods and Due Dates
Monthly invoices shall be submitted according to the schedule below.
Year 1: Monthly Invoicing Period
Due Date:
February 1, 2013 – February 28, 2013
March 31, 2013
March 1, 2013 – March 31, 2013
April 1, 2013 – April 30, 2013
May 1, 2013 – May 31, 2013
June 1, 2013 – June 30, 2013
July 1, 2013 – July 31, 2013
August 1, 2013 – August 31, 2013
April 30, 2013
May 31, 2013
June 30, 2013
July 31, 2013
August 31, 2013
September 30, 2013
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September 1, 2013 – September 30, 2013
October 1, 2013 – October 31, 2013
November 1, 2013 – November 30, 2013
December 1, 2013 – December 31, 2013
January 1, 2014 – January 31, 2014
October 31, 2013
November 30, 2013
December 31, 2013
January 31, 2014
February 28, 2014
Year 2: Monthly Invoicing Period
February 1, 2014 – February 28, 2014
March 1, 2014 – March 31, 2014
April 1, 2014 – April 30, 2014
May 1, 2014 – May 31, 2014
June 1, 2014 – June 30, 2014
July 1, 2013 – July 31, 2014
August 1, 2014 – August 31, 2014
September 1, 2014 – September 30, 2014
October 1, 2014 – October 31, 2014
November 1, 2014 – November 30, 2014
December 1, 2014 – December 31, 2014
January 1, 2015 – January 31, 2015
Due Date:
March 31, 2014
April 30, 2014
May 31, 2014
June 30, 2014
July 31, 2014
August 31, 2014
September 30, 2014
October 31, 2014
November 30, 2014
December 31, 2014
January 31, 2015
February 28, 2015
Year 3: Monthly Invoicing Period
February 1, 2015 – February 28, 2015
March 1, 2015 – March 31, 2015
April 1, 2015 – April 30, 2015
May 1, 2015 – May 31, 2015
June 1, 2015 – June 30, 2015
July 1, 2013 – July 31, 2015
August 1, 2015 – August 31, 2015
September 1, 2015 – September 30, 2015
October 1, 2015 – October 31, 2015
November 1, 2015 – November 30, 2015
December 1, 2015 – December 31, 2015
January 1, 2016 – January 31, 2016
Due Date:
March 31, 2015
April 30, 2015
May 31, 2015
June 30, 2015
July 31, 2015
August 31, 2015
September 30, 2015
October 31, 2015
November 30, 2015
December 31, 2015
January 31, 2016
February 28, 2016
Year 4: Monthly Invoicing Period
February 1, 2016 – February 28, 2016
March 1, 2016 – March 31, 2016
April 1, 2016 – April 30, 2016
May 1, 2016 – May 31, 2016
Due Date:
March 31, 2016
April 30, 2016
May 31, 2016
June 30, 2016
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June 1, 2016 – June 30, 2016
July 1, 2016 – July 31, 2016
August 1, 2016 – August 31, 2016
September 1, 2016 – September 30, 2016
October 1, 2016 – October 31, 2016
July 31, 2016
August 31, 2016
September 30, 2016
October 31, 2016
November 30, 2016
The Budgets with Narrative Reports for Year 2 (February 1, 2014-January 31, 2015), Year 3
(February 1, 2015-January 31, 2016), and Year 4 (February 1, 2016-October 31, 2016) are due
on January 15, 2014, January 15, 2015, and January 15, 2016 respectively.
Invoicing
For the first invoice of the grant period (February 2013): your TFC Community Specialist will
send their grantees their monthly invoice document (as a Microsoft Excel spreadsheet) which
has been customized for each grantee. Grantees will use the same document every month
throughout the grant period. Every month, grantees will update the invoice with monthly
expenditures and details and save the document as “Grantee Name_Monthly
Invoice_MonthYear”.
Instructions for Completing and Submitting Your Monthly Invoice
Beginning the first of the month, grantees may begin completing the invoice for the month
before (e.g., on March 1, 2013, grantees may begin completing the invoice for February 1February 28, 2013).
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Salary and Fringe Benefits
Contractual/Evaluation Services
Travel In-state
Travel Out-of-state
Supplies & Equipment
Other
Administrative Costs
Note: For each of the above categories (except Administrative Costs), provide the amount of
grant funds spent, along with a brief description of each expense.
Your TFC Community Specialist will review the invoice. If approved, your TFC Community
Specialist will print and sign the invoice and send to Financial Management (FM) at MDH for
processing. If your TFC Community Specialist has questions about invoice expenditures, they
will follow-up to clarify and revise as needed.
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FM will process the invoice and submit reimbursement within 30 days from the date the state
receives it.
Note: By statute, the state has 30 days from the receipt of the invoice at MDH to issue
payment to the vendor.
Financial Items Requiring MDH Prior Approval
Some grant items require MDH prior approval before incurring an expense or making a change
to your TFC approved budget. These include the following: budget revisions, contractual
services (subcontracts or mini-grants), out-of-state travel, and other costs. Below is a
description of each area.
Budget Revisions
Grantees are expected to expend funds in accordance with the negotiated line item budgets
and budget narrative approved by MDH. If the grantee anticipates changes that are 25% or
greater in the approved overall budget line items, the grantee must request a budget revision in
writing and submit a revised budget to their TFC Community Specialist for approval. MDH may
or may not approve the requested budget revision.
Contractual Services (Subcontracts or Mini-grants)
TFC grantees may contract (also known as subcontract) with another person or organization to
perform part of the grantee duties. TFC grantees may also offer mini-grants with another
organization to perform part of the work plan duties. TFC grantees must obtain prior approval
from MDH for all subcontracts or mini-grants over $5,000.
TFC grantees are responsible for holding any subcontractors and mini-grant recipients to the
same grant fiscal standards required of them. The same restrictions grantee’s have with TFC
funds apply to the subcontractor or mini-grant recipient.
TFC requirements for consultants/contractors:
 Must be selected and vetted based on demonstrated expertise and merit.
 Work must be directly TFC related.
 Must be included in the final work plans or budgets (by the end of the grant period).
 May not be selected if listed on the state’s prohibited vendors list.
 May not be selected if they have a conflict of interest to employees or officials of a TFC
Project.
 May not receive payment for grant writing.
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TFC grantees are required to:
 Obtain prior approval from your TFC Community Specialist before modifying or adding
any new subcontracts over $5,000. Recipients of mini-grants are considered contractors.
Send to your TFC Community Specialist the following information:
o Name of organization, person or title (the intended recipient of the contract or
mini-grant)
o Which strategy/strategies will the contractor/mini-grant recipient cover?
o What is the rationale for the contractor/mini-grant support?
o What duties will the contractor/mini-grant cover?
o What is the total cost/amount of contract or mini-grant (include rate if hourly)?
o What is the time period of the contract/mini-grant (start and end date,
estimated hours)?
o How is the grantee going to monitor and manage the contract/mini-grant?
Travel (In-state and Out-of-state)
In-state travel
Mileage
The allowable TFC grant mileage reimbursement rate is the current IRS rate of $0.575 per mile
(as of January 1, 2015). The IRS mileage rate is subject to change.
Lodging
Hotel and motel accommodations incurred for TFC grantees that are in travel status, in order to
attend TFC grant-related training or required conferences may be reimbursed provided that
grantees exercise good judgment in incurring lodging costs and that charges are reasonable and
consistent with the facilities available.
Meals
While traveling for TFC grant activities, or within the state for TFC grant trainings or meetings,
meals may be reimbursed in accordance with the rates in the Commissioner’s Plan:
http://beta.mmb.state.mn.us/doc/comp/contract/CommissionersPlan.pdf.
Grantees may be reimbursed for meals including tax and a reasonable gratuity. Grantees shall
be reimbursed for meals under the following conditions:
1. Breakfast: Breakfast reimbursements may be claimed if the grantee leaves home before
6:00 a.m. or is away from home overnight.
2. Lunch: Lunch reimbursements may be claimed if the grantee is in travel status more
than 35 miles away from normal office location or is away from home overnight.
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3. Dinner: Dinner reimbursements may be claimed if the grantee cannot return home until
after 7:00 p.m. or is away from home overnight.
4. Reimbursement Amount: The maximum reimbursement for meals including tax and
gratuity shall be:
Through December 31, 2013
Breakfast
$7.00
Lunch
$9.00
Dinner
$15.00
Effective January 1, 2014
Breakfast
$9.00
Lunch
$11.00
Dinner
$16.00
Note: Alcohol purchases will not be reimbursed.
Out-of-state travel
All out-of-state travel requires prior approval from your TFC Community Specialist. Complete
the MDH TFC Out-of-state Travel Request form and send it to your TFC Community Specialist
for approval before incurring any expenses. MDH has the right to deny out-of-state travel if the
request does not relate to the grant duties or activities.
Upon approval of the TFC Community Specialist, TFC grantees in travel status may be
reimbursed for expenses described below in the amounts actually incurred not to exceed any
maximum amounts specified below.
Out-of-state travel expenses include but are not limited to:
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Conference or workshop registration fees.
Commercial transportation (air, light rail, bus, shuttle bus, taxi, etc.) provided that no air
transportation shall be by first class unless authorized by MDH. Fares for light rail, bus,
shuttle bus, and taxi will be reimbursed from the airport to hotel and from the hotel to
airport. Parking fees and toll charges will be reimbursed. Reasonable checked baggage
fees for flights will be reimbursed.
Hotel and motel accommodations will be reimbursed provided that grantees exercise
good judgment in incurring lodging costs and that charges are reasonable and consistent
with the facilities available.
Meals in accordance with the Commissioner’s Plan for out-of-state travel shall be
reimbursed.
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Supplies, Expenses and Other Costs
Supplies and equipment
 Grant funds may not be used to purchase any individual piece of equipment that costs
$5,000 or more, and all budgeted equipment purchases must be justified in your budget
narrative.
 Equipment and electronics purchases (digital cameras, computers, phones, GPS units,
interactive whiteboards, video cameras, printers, fax machines, LCD Projector, copy
machines, etc.)
Other costs
Other project-related costs include those expenses that are directly related to program
activities and referenced in the work plan. Examples include the cost of educational materials,
promotional items, incentives, and media expenses.
The following costs require prior approval from your TFC Community Specialist:
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The development and/or placement of the following paid-communications (broadcast
or publication):
o Radio, television, and movie theater ads;
o Advertisements in newspapers, magazines, journals, trade or association
publications, electronic newsletters, or websites;
o Training materials (videos, etc.);
o Posters, flyers, brochures, or pamphlets;
o Social media (Facebook, Twitter, etc.)
Promotional Items (buttons, stickers, key chains, water bottles, magnets, etc.)
Incentives must be directly related to the TFC strategy and tied to PSE change; may not
exceed $50 per person per year; may not be provided in the form of cash; may include
gift cards or food. An example is an incentive provided to participants of focus group
interview.
To obtain prior approval, send an email to the TFC Community Specialist with the following:
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Name of the item.
Brief description of the item and justification (Please limit to 2-3 sentences).
Include the cost of the requested item(s).
List the strategy/strategies this item or conference will support.
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Unallowable Uses of TFC Grant Funds
Unallowable costs are expenditures in which grant funds cannot be used. MDH does have the
right to disallow expenditures if grantees do not obtain prior approval. The TFC Community
Specialist will be reviewing invoices and reserves the right to question and/or take action for
inappropriate uses of funds. The following list of unallowable uses of TFC grant funds include,
but are not limited to, the following:
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Alcohol or any illegal substance
Any cost not directly related to the TFC grant and it’s approved work plan and budget
Bad debts
Capital improvements
Cash assistance paid directly to individuals to meet their personal or family needs
Contingencies
Contributions or donations
Costs incurred prior to or after the grant award (unless otherwise indicated)
Direct patient medical services or care
Equipment with an acquisition cost of $5,000 or more per unit
Fines and penalties
Gifts for staff
Goods or services for personal use
Grant writing
Interest
Lobbying at the federal or state level
Losses on agreements or contracts
Memberships to clubs, camps, fitness centers and similar groups
Mischarging of costs
Personal electronic devices, such as Smart phones, iPhones, iPads, etc.
Political campaigns on behalf of, or in opposition to, any candidate for public office
Raffles
Research
Scholarships (e.g. camp fees and scholarships for individuals to participate in events)
Staff meals (except during approved travel)
Supplanting of funds from other sources
Transportation (except during approved travel)
Treatment of a disease or disability
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Lobbying
TFC grant funds may not be used for lobbying, which is defined as advocating for a specific
public policy after it has been formally introduced to a legislative body. Educating people about
the importance of policies as a public health strategy is allowed with TFC funds. Education
includes providing facts, assessment data, reports, program descriptions, and information
about budget issues and population impacts without making a recommendation on a specific
piece of legislation. Education may be provided to public policy makers, other decision makers,
specific stakeholders, and the general community. Lobbying restrictions do not apply to
informal/private policies.
Grantees may make educational materials pertaining to tobacco available to the public and
governmental bodies, officials, and employees. Such materials may not advocate the adoption
or rejection of an official action, but may contain facts, analysis, studies, and research.
Grantees may use other funding sources to influence an official action of a local governmental
unit or tribal government regarding tobacco, in accordance with federal and state law, grantee
policy, and funding restrictions, but must clearly document which activities are covered by
which funding source.
Grantees may not use any TFC grant funds to influence state legislation or administrative rules.
Grantees may use other funding sources to influence state legislation or administrative rules
regarding tobacco, in accordance with federal and state law, grantee policy, and funding
restrictions, but must clearly document the alternate funding source that covers the activity.
Volunteers to the grantee who spend more than $250 of their own funds in any year to
influence state legislation or administrative rules may need to register as a lobbyist under
Minnesota Statute 10A.01, subdivision 21. Information about registration is available from the
state Campaign Finance and Public Disclosure Board at (651) 296-5148 or (800) 657-3889.
Grantees may not use TFC grant funds to participate or intervene in any political campaign on
behalf of, or in opposition to, any candidate for public office.
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Appendix: Terminology
Definitions
Administrative costs
Administrative costs, or indirect costs, include items such as: accounting, human resources,
general administration, rent, and costs for upkeep and maintenance of facilities not including
repairs or capital expenditures. Salaries for supervisory staff can also be considered an
administrative expense.
Administrative costs can be calculated in one of three ways and should be consistent over the
course of the grant period:
1.
2.
3.
Federally-negotiated indirect cost rate.
Formally adopted agency-wide cost rate or cost allocation plan.
Approved informal tobacco-specific plan to allocate indirect expenses.
Budget
The budget is the financial plan of action for how a grantee will spend its funds. The budget is
included in the application but is sometimes revised during grant agreement negotiations.
Certified financial audit
A review of an organization’s financial statements, fiscal policies and control procedures by an
independent third party to determine if the financial statements fairly represent the
organization’s financial position and if organizational procedures are in accordance with
Generally Accepted Accounting Principles (GAAP). Minnesota non-profit organizations are
required to have a certified financial audit completed for any fiscal year in which they have
income of more than $350,000.
Disparate or target populations
In the context of the TFC RFP, disparate or target populations relate to any group with a
documented disproportionate burden from tobacco use and exposure. These groups include,
but are not limited to: youth and young adults; racial/ethnic minorities; people with severe and
persistent mental illness; people with low socio-economic status; lesbian, gay, bisexual, and
transgender populations.
Evidence-based strategies
Evidence-based strategies have demonstrated effectiveness based on principles of scientific
evidence, including systematic uses of data and information systems, and appropriate use of
behavioral science theory in order to explicitly demonstrate effectiveness. See Part V. TobaccoPrevention & Control Resources for a list.
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Financial capacity review form
This is the standard form to be used in order to determine the financial capacity of grant
applicants. This form is to help the agency comply with the Office of Grants Management Policy
08-06, Financial Review of Nongovernmental Grantees.
Grant agreement
A legal document used for granting money to a variety of entities. Those entities can include
non-profit organizations, city or county governments, for-profit organizations, higher education
institutions, tribal governments and individuals.
Grant monitoring form
This is a standardized form that is used to conduct a programmatic and fiscal review of the
grantee’s progress. This form was developed in response to the best practices listed in the
January 2007 Office of Legislative Auditor’s report on state grant making.
Grantee
“TFC grantee” is defined as any organization that is awarded Tobacco-Free Communities in
Minnesota funding through a Minnesota Department of Health grant agreement. It is the entity
that is awarded funds and agrees to and signs the grant agreement document.
Grantee duties
These are the tasks and responsibilities in the grant agreement that the grantee must perform.
Implementation
In the context of the TFC Grant, implementation means the process of developing, adopting,
implementing, enforcing, maintaining and evaluating strategies.
Invoice
The document the grantee uses to receive payment for activities and expenses incurred as part
of the grant activities.
Prior approval
The written permission provided by MDH before the grantee may deviate from the approved
budget and/or program plans for certain expenditures.
Policy, systems, and environmental change (PSE)
A policy strategy may be a law, ordinance, resolution, mandate, regulation, or rule (both formal
and informal). Examples are laws and regulations that restrict smoking in public buildings and
organizational rules that provide time off during work hours for physical activity. Subtypes of
policies include:
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


Public policy: A set of agreements about how government shall address societal needs
and spend public funds that are articulated by leaders in all three branches of
government and embedded in many different policy instruments (e.g., ordinances and
resolutions).
Organizational policies: A set of rules and understandings that govern behavior and
practice within a business, nonprofit or government agency.
Regulatory policies: Rules and regulations created, approved, and enforced by
governmental agencies, generally at the federal or state level.
Systems strategies are changes that impact all elements of an organization, institution, or
system; they may include a policy or environmental change strategy.
Environmental strategies involve physical or material changes to the economic, social, or
physical environment.
Progress report
A report that grantees submit to the Community Specialist that details the accomplishments,
challenges, and programmatic work of the grantee at specified intervals.
Reimbursement basis only (or cost reimbursement payment)
This is a type of grant payment in which the grantee incurs the expenses before requesting
repayment from the grantor. This means the cost must be paid by the grantee before it can be
reimbursed. Expenditures on the invoice submitted to MDH should agree with expenditure
accounting records.
Request for Proposals (RFP)
RFPs are the public solicitation that notifies grant seeking agencies about opportunities to apply
for grant funds.
Risk assessment
This is a tool that is used by Community Specialists to assess the stability of a grantee’s program
and/or financial health.
Statewide Health Improvement Initiative (SHIP)
SHIP works to prevent disease before it starts by helping create healthier communities that
support individuals seeking to make healthy choices in their daily lives. SHIP addresses obesity
due to physical inactivity and poor nutrition, and tobacco use and exposure. SHIP works in the
areas of community, school, workplace and health care. SHIP funds 18 community health
boards covering 51 counties and one tribe. For more information:
http://www.health.state.mn.us/divs/oshii/ship/index.html
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Subcontract/subcontractor
An agency that a grantee contracts with to perform some or all of the grantee’s duties listed in
the grant agreement between the grantee and the state.
Termination
Permanent withdrawal of a grantee's authority to obligate previously awarded grant funds
before that authority would otherwise expire, including the voluntary relinquishment of that
authority by the grantee.
Terms of award/grant agreement
All legal requirements imposed on a grantee by MDH, whether by statute, regulation, or terms
in the grant agreement. The grant agreement includes both standard and TFC specific
provisions that are necessary to attain the objectives of the grant, facilitate post-award
administration of the grant, conserve grant funds, or otherwise protect MDH’s interests.
Unallowable cost
This is a proposed cost that may not be purchased nor reimbursed with TFC funds.
Unobligated balance
This is a portion of the TFC grant funds that have not been obligated by the recipient at the
close of the budget period.
Work plan
A work plan is an outline of planning and implementation activities that will lead to success in
achieving program objectives within a specific timeframe.
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