Section 51c.107 - [Effective 10/1/2025] Use of project funds(a) Any funds granted pursuant to this part, as well as other funds to be used in performance of the approved project, may be expended solely for carrying out the approved project in accordance with section 330 of the Act, the applicable regulations of this part, the terms and conditions of the award, and the applicable cost principles prescribed in 2 CFR parts 200 and 300, subpart E.(b) Project funds awarded under this part may be used for, but need not be limited to, the following: (1) The costs of acquiring and modernizing existing buildings (including the costs of amortizing the principal of, and paying interest on, loans), but only in accordance with subpart E of this part and as approved in the grant award;(2) The costs of obtaining technical assistance to develop and improve the management capability of the project, but only as approved by the Secretary;(3) The reimbursement of members of the grantee's governing board, if any, for reasonable expenses actually incurred by reason of their participation in board activities;(4) The reimbursement of governing board members for wages lost by reason of participation in the activities of such board if the member is from a family with an annual family income below $10,000 or if the member is a single person with an annual income below $7,000;(5) The cost of delivering health services, including services rendered on a prepaid capitation basis, to residents of the project's catchment area within the following limitations: grant funds may be used to pay the full cost of project services to individuals and families with annual incomes at or below those set forth in the poverty guidelines updated periodically in the FEDERAL REGISTER by the U.S. Department of Health and Human Services under the authority of 42 U.S.C. 9902(2) ; and to pay the portion of the cost of services provided in accordance with the schedule of discounts which, under such schedule, is uncompensated; Provided, That(i) charges will be made to such individuals and families in accordance with § 51c.303(f) of subpart C;(ii) reasonable effort shall be made to collect such charges under a billing and collections system; and(iii) the charge to grant funds shall exclude any amounts collected pursuant to paragraph (b)(5)(ii) of this section;(6) The cost of insurance for medical emergency and out-of-area coverage;(7) The cost of providing to the staff of the project training related to the provision of health services provided or to be provided by the project, and, to the staff and governing board, if any, training related to the management of an ambulatory care facility, consistent with the applicable requirements of 2 CFR parts 200 and 300; and(8) The cost of developing and maintaining a reserve fund where required by State law for prepaid health care plans.(c) Prior approval by the Secretary of revisions of the budget and project plan is required whenever there is to be a significant change in the scope or nature of project activities.41 FR 53205, Dec. 3, 1976, as amended at 81 FR 3007 , Jan. 20, 2016; 85 FR 72908 , Nov. 16, 2020 85 FR 72908 , 12/16/2020; 89 FR 80065 , 10/1/2025