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LIHEAP FY 2010 Carryover and Reallotment Report

Published: July 14, 2010

DATED 7/14/10                          



SUBJECT:     Carryover and Reallotment Report

RELATED:     Section 2607 Low Income Home Energy Assistance Act,
REFERENCES:  title XXVI of the Omnibus Budget Reconciliation Act
             of 1981, Public Law 97-35, as amended; 45 CFR 96.81
             in the Department of Health and Human Services block
             grant regulations; and OMB approval 0970-0106,
             expires 6/30/2011.

PURPOSE:     To remind LIHEAP grantees of the required Carryover
             and Reallotment Report due August 2, 2010, to
             transmit the optional Carryover and Reallotment
             Report form, and to advise grantees that FY 2011
             grant awards will not be made until the Carryover
             and Reallotment Report for FY 2010 is submitted to

CONTENT:     Section 2607(b)(2)(B) of the LIHEAP statute as
             amended by Title III of the Augustus F. Hawkins
             Human Services Reauthorization Act of 1990, Public
             Law 101-501, states that:

             No amount may be held available under this
             paragraph for a State from a prior fiscal year to
             the extent such amount exceeds 10 percent of the
             amount payable to such State for such prior fiscal
             year.  For purposes of the preceding sentence, the
             amount payable to a State for a fiscal year shall
             be determined without regard to any amount held
             available under this paragraph for such State for
             such fiscal year from the prior fiscal year.

             Grantees may request to carry forward from one
             fiscal year to the next up to 10% of the amount
             payable to the grantee for the first fiscal year.
             The funds that are carried over must be obligated
             by the grantee by the end of the fiscal year
             following the year in which they are appropriated.
             For example, at least 90% of the funds allocated to
             you for FY 2010 must be obligated by September 30,
             2010, the end of FY 2010.  Up to 10% may be carried
             over for use in FY 2011, but those funds must be
             obligated no later than September 30, 2011.
             (Please note that this requirement applies to
             obligation only, not expenditure of funds.)

             Any funds carried over are not to be included in
             the base for calculating carryover in the following
             year.  If more than 10% of a grantee's funds
             payable remains unobligated at the end of the
             fiscal year for which they were allotted, these
             excess funds must be returned to HHS and are
             subject to reallotment among all grantees in the
             next fiscal year.

             The 10% carryover limit does not apply to LIHEAP
             leveraging incentive award funds.  The period of
             obligation for the entire amount of leveraging
             incentive funds awarded to a grantee is the award
             period (the fiscal year in which these funds were
             awarded) and the following fiscal year, as
             explained in our regulations at 45 CFR 96.87(k).

             The LIHEAP statute and regulations require
             LIHEAP grantees to report information to HHS
             concerning funds to be carried forward and funds
             subject to reallotment.  The 1994 reauthorization
             of the LIHEAP statute, the Human Services
             Amendments of 1994 (Public Law 103-252), requires
             that the Carryover and Reallotment Report for one
             fiscal year be submitted to HHS by the grantee
             before the allotment for the next fiscal year may
             be awarded.

             Consequently, HHS will not make a grant award to
             a grantee for FY 2011 until we have received that
             grantee's Carryover and Reallotment Report for FY
             2010.  Attachment C includes tables showing FY 2010
             block grant and contingency fund allotments,
             excluding leveraging awards, and the allowable 10%
             maximum carryover amounts for each grantee.

             Note to States, Territories, and Tribes/Tribal
             Organizations:  The receipt of all FY 2010 block
             grant funds and the contingency funds released in
             January 2010 should be included in your carryover
             calculations.  Because the Carryover and
             Reallotment Report is due August 1, before the end
             of the fiscal year, you may find that your
             estimates later prove to be inaccurate.  If this
             occurs, please submit a corrected report as soon
             as possible.

             Note to Tribes/Tribal Organizations:  Please inform
             us as soon as possible if you expect to have more
             than 10% in carryover funds.  This will allow us to
             redirect the excess funds to the States so that
             they can serve tribal households until the end of
             FY 2010 with the remaining funds.  This would
             prevent the reallotment of the excess carryover
             funds.  (For suggestions of alternate ways to
             obligate LIHEAP funds, please see LIHEAP-IM-2001-13,
             "Uses of LIHEAP Funds", dated 1/10/01, which can be
             found on the LIHEAP website under "Guidance,
             Policies, and Procedures, Special Topics".)

             Report Requirements and Reporting Form

             An optional form for submission of the Carryover
             and Reallotment Report (OMB approval 0970-0106,
             expiration date - 6/30/2011) is attached.

             Completion of this form is voluntary but will
             clarify what information is to be covered in the
             report.  Instructions for determining carryover are
             in Attachment A; the report form is included as
             Attachment B.  The report should include the
             requirements set out in our regulations at 45 CFR
             96.81 that the Carryover and Reallotment Report be
             submitted to HHS by August 1 of each calendar year
             and contain:

             1.  The amount of the grantee's allotment for the
             current fiscal year that the grantee desires to
             remain available for obligation in the succeeding
             fiscal year, not to exceed 10% of the amount
             payable to such grantee for the fiscal year;

             2.  The amount of funds, if any, to be subject to

             3.  If funds are carried forward, a statement of
             the reasons that these funds will not be used in
             the fiscal year for which they were allotted; and

             4.  A description of the types of assistance to be
             provided with the amount held available for the
             following fiscal year.

             The Carryover and Reallotment Report must be made
             in writing, since it will potentially form the
             basis for modification of grant awards.  All
             grantees must submit a report, even if no funds are
             to be carried over or made available for
             reallotment.  As August 1 falls on a Sunday this
             year, these reports must be submitted no later than
             August 2, 2010 to:

                    Administration for Children and Families
                    Office of Community Services, ACF, HHS
                    Division of Energy Assistance
                    370 L'Enfant Promenade, S.W.
                    5th Floor West
                    Washington, D.C.  20447
                    Attention:  Imani Kirk

ATTACHMENTS: (A) Simplified Instructions for Timely Obligation
                 of FY 2010 LIHEAP Funds and Reporting Funds for
                 Carryover and Reallotment
             (B) Form for Carryover and Reallotment Report for
                 FY 2010
             (C) FY 2010 LIHEAP Allotments and 10% Maximum
                 Carryover Amounts for States/Tribes/Territories

INQUIRIES:   Nick St. Angelo, Director
             Division of Energy Assistance
             Office of Community Services, ACF, HHS
             370 L'Enfant Promenade, S.W.
             Washington, D.C.  20447
             Telephone:  (202) 401-9351
             FAX:  (202) 401-5661


                              Nick St. Angelo
                              Division of Energy Assistance
                              Office of Community Services