Local Economic Development Grant

LOCAL ECONOMIC DEVELOPMENT GRANT

FISCAL YEAR 2010-2011

TECHNICAL ASSISTANCE GUIDE

WEST VIRGINIADEVELOPMENT OFFICE

STATE CAPITOL COMPLEX

BUILDING 6, ROOM 553

CHARLESTON, WEST VIRGINIA 25305-0311

LOCAL ECONOMIC DEVELOPMENT GRANT

FISCAL YEAR 2010-2011

Technical Assistance Guide

I.BACKGROUND

The West Virginia Legislature has appropriated funds for Fiscal Year 2010-2011 (July 1, 2010-June 30, 2011) to support county or multi-county economic development efforts through a matching grant program. The program is administered through the West Virginia Development Office. Grant awards are made to county or regional economic development corporations or authorities that commit to following the guidelines established through the Certified Development Communities (CDC) program and who also meet the grant program criteria. Guidelines for the CDC program may be obtained by viewing our website at: or by calling our office at (304) 558-2234 or 1-800-982-3386.

Local Economic Development (LED) Grants are available on a first-come, first-served basis only. Applications will be received and considered only untilApril 30, 2011.

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II.ELIGIBLE ORGANIZATIONS

Grant money will be available to the following:

County development corporations or authorities designated by the county commission as the county’s lead economic development organization.

A multi-county or regional development corporation or authority, if it is designated as the lead economic development authority for the participating counties. The authority or corporation must submit the following with their application:

• A resolution stating that the counties are working together on economic development; and
• A resolution passed by the county commissions of the participating counties that designates the applicant as their lead economic development corporation or authority.

Regional Planning and Development Councils that have been designated by the county commissions as the lead economic development organization for the county. The council must submit the following with their application:

• A resolution stating that certain counties within their region are working together on economic development;
• A resolution agreeing to adhere to the CDC program guidelines;
• A resolution passed by the county commission establishing the council as their lead economic development corporation or authority; and
• The local cash match must be over and above the council’s program budget in existence on July 1, 2010, and must come from those counties designating the council as their lead economic development organization.

III.AMOUNT OF AWARD AND USE OF GRANT MONIES

The maximum amount to be awarded to each county will be $31,008. The grant amount actually awarded will be based upon the cash match of the local organization. LED grant funds must be used for economic development activities.

IV.CDC PROGRAM REQUIREMENT

The CDC certification has been an integral part of our community and economic development programs for the past 18 years. To date, 47 counties have received CDC designation. It is our goal that all 55 counties complete the certification process by 2011.

Non-Certified Communities

In September 2008, our office introduced the entrepreneurialtrack for the CDC program. The purpose of the additional track is to offer communities that have not been certified an option in completingtheir certification.

Effective July 1, 2009, each non-certified community was asked to declare which track it would be completing, provide a timeline of activities, and show substantial progress towards completion of CDC certification by June 30, 2010. For this application year, each non-certified community must show substantial progress towards certification by June 30, 2011. Approval of the LED grant will be contingent upon the evaluation of the progress made toward CDC certification using their declared track.

Certified Communities

Each community’s Certified Development Community (CDC) status is valid for three years from the date of approval of your CDC application. During this three-year period, each certified community shall participate in an ongoing Recertification Program, as described below. Within four months prior to the CDC expiration date, each CDC must submit a Recertification Application Package to the West Virginia Development Office, Community Development Division.

At your option, you may recertify under either program.

For additional CDC information, please view our website at:

V.GENERAL REQUIREMENTS

1. Resolution from county commission (s)

All applicants must have a resolution from the county commission(s) designating the applicant as the lead economic development organization for the county. The resolution must be dated between July 1, 2010, and April 30, 2011.

1. Certified Development Community (CDC) application

All LED applicants must have a Certified Development Community (CDC)applicationcommitting the applicant to completion of the CDC program.

1. Department of Environmental Protection REAP Program

All applicant counties must be active participants in the Department of Environmental Protection REAP Program. If your county has not met 12 of the 16 program requirements, you will not be eligible to receive an LED grant. Please submit letter of compliance from the WVDEP with the LED application. For additional information, please contact our office at (304) 558-2234 or 1-800-982-3386.

1. 2010-2011 LED Grant-Proposed Budget

All applicants must submit a Proposed Budget for Fiscal Year2010-2011that reflects expenditure of the grant and match. Submit budget on Form 1, which is included in the LED Grant Application. This form should reflect only the grant and match amount. Any additional funds available to the organization may be listed on the Organizational Budget Form 2.

• Specific objectives (measurable results of the projects) need to be listed for every line item in the Fiscal Year 2010-2011 budget (Form 1). These objectives should describe what will be accomplished (the outcomes) with each line item in the 2010-2011 budget and when it will be completed.

******NOTE you are now required to add specific details to your activities. Breakdown cost per activity and list. You may add an addition sheet if you prefer. Your Total amount budgeted for each activity should be listed and broken-down into specific amounts spent.

For example: (This is a sample only, not the actual Form 1)

1. Audit

To comply with legislation and to better account for expenditures for the LED Grant Program, we are implementing an audit requirement. The following state grant audit requirements have been amended within Senate Bill No. 4006. This Bill amended and reenacted Chapter 12-4-14 of the West VirginiaState Code of West Virginia as of September 13, 2005 (effective date). These requirements relate to accountability of state grant fund expenditures which require audit reports or sworn financial statements. The following is a summary of the audit requirements:

1. If you are a governmental entity, such as a unit of a county commission, the LED grant funds (state grant funds) will be included within the county commission audit performed by the WV State Auditors Office-Chief Inspector Division (CID) or a CPA firm contracted with the CID to perform audits. This audit report will satisfy the audit requirements of (b)(1).

1. If you are not a governmental entity, an independent certified public accountant must be procured for the purpose of auditing these state grant funds or a sworn statement of state grant fund expenditures must be provided.

1. The entity that receives one or more state grants in the amount of fifty thousand dollars or more in the state’s fiscal yearshall be required to provide an audit report of the disbursement of state funds (b)(1).

1. The entity that receives one or more state grants in the amount of less than fifty thousand dollars in the state’s fiscal year shall be required to file a sworn statement of expenditures (b)(2).

1. The reports and sworn statement of expenditures shall be filed with our office within two years of the end of the entity’s fiscal year in which the disbursement of state grant funds by the grantor was made.

1. The report shall be made by an independent certified public accountant at the cost of the entity receiving the state grant. The scope of the report is limited to showing that the state grant funds were spent for the purpose intended.

1. Actions will be taken, as noted within subsection (c)(1), if these reporting requirements are not met.

1. Cash Match

The Local Cash Match Must Consist Of Funds Designated For Expenditure On Fiscal Year 2010-2011 Economic Development Activities.

• Applicants representing a single county must have a cash match equal to the amount of the grant, i.e., a $31,008 grant request must be matched by $31,008 in cash.

• Applicants representing multi-county or regional economic development corporations or authorities must have cash to match half the amount of the grant, i.e., a development authority representing two counties could receive a $62,016 grant with a $31,008 cash match.

• In-kind donations are not acceptable, and the cash match may not be comprised of any state funds, including proceeds from the Synfuels Tax. LED Grant funds from the previous fiscal year cannot be used for any portion of the local cash match. The funds being used for the match must be controlled by the local development authority and be designated for use by the development authority for economic development activities.

• Applicants must provide evidence of the local match by one of the following:

• A resolution from the county commission(s) stating the amount of the cash pledge, with evidence of the transfer of funds into an account solely for use of the development organization;
• Copy of checks, made payable to the development organization, and bank deposit slip(s) that total the amount of the cash match;
• Signed pledge(s) from private sector sources. For the requiredpledge forms, please contact our office at (304) 558-2234 or 1-800-982-3386.

• Applicantsmust also provide a signed original of the state/local agreement (contract) verifying use of the funds and that the local match will be spent as pledged. This Contract will be provided after approval of the application. Additionally, an original Resolution authorizing theExecutive Director, or other official representative, to act in connection with the Contract will need to be executed by the Board of Directors and submitted with the Contract. We will be unable to process a grant agreement until the signed original of the contract and resolution are returned to this office.

1. Professional Development

1. A representative of the economic development organization must attend 30 hours of professional training that specifically addresses economic development and/or develops skills that are necessary to lead and conduct an effective economic development program. A representative can include the director, staff, or board member.

1. If the director, staff, or board members attended hours in addition to the 30 required hours of professional training, 10 hours maximum may be carried forward to the next fiscal year. However, the hours must be counted in the next fiscal year, and they cannot be carried into a subsequent year.

• Information on course listings that have been approved to meet this requirement can be accessed through the West Virginia Economic Development Council (WVEDC) website at:

• For training not listed on the WVEDC website, please contact our office for approval and credit hours, prior to course enrollment.

• In order to receive LED funds, the applicant must provide evidence of Fiscal Year 2010-2011course registration and show proof of attendance.

• A one-time professional education credit, in the fiscal year following the achievement, is available for those who receive the following designations:

• Certified Economic Developer (CEcD) designation certified through the International Economic Development Council (IEDC) – 20 hours of credit.

• The West Virginia Development Office will recognize activities for CEcD recertification. A maximum of 9 credit hours will be considered for Level Two and Level Three activities for the IEDC Certified Economic Development Recertification Record, which can be found at:

Verification of these activities will be required. One (1) point earned under the IEDC guidelines is equal to three (3) hours of LED credit.

• Economic Development Finance Professional (EDFP) certified through The National Development Council) – 20 hours of credit.

• NXLeveL Entrepreneurship and Business Planning Course completion is worth 24 hours LED continuing education.

• Please include a copy of your certificate with the application to receive credit.

1. West Virginia Economic Development Council Meeting – Provide documentation of registration and proof of attendance for at least one West Virginia Economic Development Council meeting. Contact (304) 342-2123 or for a meeting schedule. If the executive director, staff member(s), or board member(s) attend both West Virginia Economic Development Council meetings in the same fiscal year, he/she could receive LED credit hours for the second meeting attended. These credit hours could be used toward the annual professional training, if the program included approved training.

1. Optional Training – Two optional training categories are also available for professional development credit and include Board of Directors Training and Technology Training.

• Board of Directors Training. Up to 30 hours of professional development training may be awarded for Board of Directors training. To be eligible, 3/4 of the Board must attend all training sessions. At a minimum, the training should consist of sessions covering the following topics:

• Overview of Principles of Community Development
• Overview of Principles of Economic Development
• Economic Diversification: Industrial, Entrepreneurial, Technology, and Tourism Development
• Roles, Responsibilities, and Functions of the Board of Directors
• Other Training: Establishing Office Procedures for Monitoring Activities and Performance Measures; Enhancing Communication between Board of Directors, Executive Director, Locally Elected Officials, and Community; and Fiscal Management.
• The development organization will be responsible for securing the training. The curriculum and topics to be covered must be approved by the West VirginiaDevelopment Office (WVDO), prior to training.

• Technology Training Option - Up to15 hours of the 30-hour training requirement may be earned for technology training. In order to be awarded credit for technology training, it will be necessary to submit the training agenda as well as a description of the benefit the organization expects to gain from such training. The curriculum and topics to be covered must be approved by the WVDO, prior to training.

• Technology training includes, but is not limited to, geographic information systems, website design and maintenance, accounting software, etc.

1. LED Annual Report

The annual report should follow the template below. Please refer to the previous year’s proposed budget and strategic/action plan for the information. The Annual Report should reflect the goals and objectives from FY 2009-2010. The Year in Review section should be in narrative form and should discuss what you feel led to the success of achieving the above stated goals, as well as, led to the unsuccessful completion of some of the goals.

ANNUAL REPORT

TEMPLATE

Goal Highlights

Please list, as stated in the strategic plan, each goal and its objectivesand the outcomes achieved. Following that, please provide a budget summary pertaining to that goal.

Example:

Goal 1: Develop initiatives that involve entrepreneurs in local community events.

Objectives:

1. Identify local entrepreneurs and their service/product

1. Connect these local entrepreneurs to community event planners

Outcome: Target Met

Summary: Over the past year the community committed to use local entrepreneurs’ goodand services to facilitate all community activities such as the county fair, WV State Folk Festival, and many other local events promoted by community members. This not only spurred local economic development but gave the community a chance to grow. 5 local entrepreneurs benefited from this initiative with several other local entrepreneurs committing for next year.

BudgetSummary: $7,000 was budgeted for Marketing, of which, $1,600 went toprintedmaterials and postage for the promotion of local entrepreneurs at local events such as the county fair.

Goal 2: Organize and facilitate an entrepreneurial forum

Objectives:

1. Identify entrepreneurs in the community

1. Identify concerns; accomplishments; goalsof the entrepreneurs identified in objective 1.

1. Organize forum: identify place to hold forum; identify speakers;identify date for forum; create budget for cost of forum

Outcome: Target Met

Summary: An Entrepreneur Forum was held on July 15-17, 2009, withover 200 entrepreneurs attending. We had 2 keynote speakers addressing business planning and venture capital. There were breakout sessions in between speakers that allowed attendees to ask questions and have small group discussion. The feedback received from attendees was all positive.We are already planning for the next forum to be held next year. Please see attached agenda for Forum and some feedback from attendees.

Budget Summary: The total cost of the forum was approximately $120,000. We had a registration fee of $100 to offset some of thecost. The funds used to pay for the forum consisted of LED grant funds in the amount of $31,008. The remainder of the cost was covered by funds generated from other revenue. Our goal was to keep the cost for attendees low, allowing for more to attend.