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Land Entity White Paper 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 four governments have accountability <br />requirements; funds will need to be matched to specific tasks carried out in specific time <br />periods, with records demonstrating that funds were expended as approved. Several key federal <br />regulations raise issues beyond accountability that may affect how the role of the Land Entity is <br />viewed, potentially affecting its structure or selection among options. 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 of the state and federal regulations for contracts or grants. <br />i. Conflicts of Interest <br />Federal regulations prohibit persons who would personally benefit from 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 Program from serving on the <br />board or commission governing the Land Entity. This could make it difficult to represent local <br />interests appropriately in decision - making. This is a relatively common problem in setting up <br />programs involving stakeholders. A narrower solution is for landowner representatives to avoid <br />participating in decisions that affect them personally. This may include more than just skipping <br />discussions or votes concerning their own land. "I'll vote for yours and you vote for mine" was a <br />concern, along with the idea that acquisition policies 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 council such that a landowner could not participate in any issues related to acquisition, <br />only management. Another was that a representative could not offer land to the Program for at <br />least five years after leaving the board. <br />Federal regulations are also designed to avoid having a non - profit or state or local <br />government benefit from receiving federal funds beyond the direct benefit intended by the grant <br />or agreement. For that reason, entities receiving federal funds generally cannot apply them to <br />administrative costs of the organization or invest them to earn interest during the period between <br />receiving the federal funds and disbursing them for their intended use. These prohibitions may <br />affect how the Program assigns responsibilities for administrative costs within the land <br />component's management structure. The use of federal funds in setting up endowment funds <br />associated with particular habitat lands may also be limited. <br />U. 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 whole or in part to buy land, and <br />irrespective of the source of funds if lands are acquired by the National Fish and Wildlife <br />Foundation. Where funds from multiple government sources are used, it may be necessary to <br />satisfy both federal and state procedural requirements. <br />A- 3 <br />