; or (ii) for a public organization that is an eligible entity to become a private, nonprofit organization that is a public charity. (B) Availability after second quarter Any funds not obligated for merger, combination, or privatization incentives described in subparagraph (A) by the end of the second quarter of the fiscal year shall be available for other authorized purposes described in this subsection. (b) Limitation None of the funds allocated under subsection (a) may be used for expenses or salaries of Federal employees or of Federal contractors performing services that would otherwise be performed by Federal employees. (c) Grants, contracts, and cooperative agreements The activities described in subsection (a)(1)(A) shall be carried out annually by the Secretary through grants, contracts, or cooperative agreements with appropriate entities, which shall include all statewide associations of eligible entities that meet the requirements for receipt of Federal funds. 683. State monitoring of eligible entities In order to determine whether eligible entities receiving subgrants under this subtitle meet performance benchmarks described in section 678(f)(1), administrative standards, financial management requirements, and other requirements under this subtitle, the State shall conduct the following reviews of eligible entities: (1) A full onsite review of each eligible entity at least once during each 3-year period. (2) An onsite review of each newly designated eligible entity immediately after the completion of the first year in which such entity receives funds through the community services block grant program under this subtitle. (3) Followup reviews, including onsite reviews scheduled in a corrective action plan (including return visits), within a calendar quarter for eligible entities with programs, projects, or services that fail to meet the State’s performance criteria, standards, financial management requirements, and other significant requirements established under this subtitle. (4) Other reviews as