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Land Entity White Paper <br />November 30, 1999 <br />how it does its business. In varying degrees, each government imposes comprehensive <br />conditions on the receipt of a grant or assistance. All faur govemments have accountability <br />requirements; funds wili need to be matched to specific tasks carried out in specific time <br />periQds, with record.s demonstrating that fvnds were expended as approved. Several key federal <br />regulations raise issues beyond accountability that may affect haw the role of the Land Entity is <br />viewed, potentialiy affecting its structure or selectian among optians. For that reason they are <br />described below. Whether or not requirements are discussed in the white paper, the Land Entity <br />will, of course, need to satisfy all nf the state and federal regulations for contracts or grants. <br />i. Con,fIects ojlnteresr <br />Federal regulations prohibit persons who would personally benefit fram being <br />part of the decision-making process in entities that are to receive government funds. One <br />solution is to prohibit anyone who might ever offer land to the Pragram from serving on the <br />board or commission gaveming the Land Entity. This coutd make it difficult to represent lacal <br />interests appropriately in decision-making. This is a relatively comman problem in setting up <br />progzams involving stakeholders. A narrawer svlution is for landowner representatives to avoid <br />participating in decisions that affect them personally. This may include mare than just skipping <br />discussions or votes concerning their own 1and. "I'll vote for yours and you vate for mine" was a <br />concern, along with the idea that acquisition poticies could be shaped to make land owned by <br />board members the most desirable to acquire. One idea suggested was structuring the governing <br />board or cvuncil such that a landawner couid not participate in any issues related to acquisition, <br />onty management. Another was that a representative could nat offer land to the Program for at <br />least five years aRer leaving the board. <br />Federal regulations are alsa designed to avoid having a non-profit or state or local <br />government benefit from receiving federal funds beyond the ciirect benefit intended by the grant <br />or agreement. For that reason> entities receiving federal funds generaliy canno# apply them to <br />adnninistrative costs of the organization vr invest them to earn interest during the period between <br />receiving the federal funds and disbursing them for their intended use. These prahibitions may <br />affect how the Pragram assigns responsibilities for adminisuative costs within the land <br />component's management structure. The use of federal funds in setting up endowment funds <br />associated with particulax habitat lands may also he limited. <br />H. Use of Government Funds to Acquire Interests in Land <br />Real property acquisition using federal or state funds is subject to complex and <br />time-consuming processes including appraisals and assessments of the market. The federal <br />appraisal process is required whenever federal funds are used in whale or in part to buy land, and <br />irrespective af the source of funds if iands are acquired by the National Fish and Wildlife <br />Faundation. Where funds from multiple government sources are used, it may be necessary to <br />satisfy both federal and state procedural re4uirernents. <br />A- 3