ACYF-PR-80-1 Issued 12/23/80

Dated: December 22, 1980

Cesar A. Perales, Assistant Secretary for Human Development Services

Approved: December 23, 1980

Patricia Roberts Harris,
Secretary of Health and Human Services.

A. In 45 CFR, Chapter XIII, Subchapter F, Administration for Children, Youth and Families, Child Welfare Services; Foster Care Maintenance Assistance and Adoption Assistance, new Parts 1355, 1356 and 1357 are established to contain the rules for child welfare services, foster care maintenance assistance and adoption assistance programs as follows:

PART 1355--GENERAL

1355.10 Program scope.
1355.20 Definitions of terms.

PART 1356--REQUIREMENTS APPLICABLE TO TITLE IV-E

1356.10 Program scope.
1356.20 State plan requirements--general.
1356.30 Organization and administration.
1356.40 Foster Care Maintenance Program.
1356.50 Voluntary placements.
1356.60 Adoption Assistance Program.
1356.70 Plan format and approval.
1356.75 Withholding of funds for non-compliance with an approved Title IV-E State Plan.
1356.80 Fiscal requirements (IV-E).

PART 1357--REQUIREMENTS APPLICABLE TO TITLE IV-B

357.10 Program scope and definitions
357.20 State Child Welfare Services Plan requirements under Title IV-B.
357.30 Requirements for State eligibility for additional payments.
357.40 Development of the State's Child Welfare Services Plan.
357.45 Requirements for direct payments to Indian Tribal Organizations.
357.50 Fiscal requirements (IV-B). Authority: Adoption Assistance and Child Welfare Act of 1980, Pub. L. 96-272, 42 U.S.C. 670 et seq., 94 Stat. 501, 42 U.S.C. 620, 94 Stat. 516 et seq., Section 1102 of the Social Security Act, as amended, 42 U.S.C. 1302.

PART 1355--GENERAL

s 1355.10 Scope.

Scope. Parts 1355, 1356 and 1357 apply to State programs under titles IV-E and IV-B of the Social Security Act, as amended.
Purpose. Parts 1355, 1356 and 1357 set forth the requirements which must be met to receive Federal financial participation under titles IV-E and IV-B of the Social Security Act, as amended.
Background. The purpose of these programs and regulations are--
1. To make needed improvements in child welfare and social services programs;
2. To strengthen and improve the program of Federal support for foster care of needy and dependent children;
3. To establish a program of Federal support to encourage adoptions of children with "special needs".
4. To preserve, strengthen and rehabilitate family life in order to prevent disruption and unnecessary or precipitous removal of children from their homes;
5. To provide preventive services through early identification of problems and provision of supportive and supplemental services to families and individual children;
6. To protect and promote the welfare of handicapped children and all other vulnerable children;
7. To prevent or remedy neglect, abuse, exploitation, or delinquency of children and youth;
8. To provide children temporarily removed from their families with foster care that meets their particular needs, and to ensure the earliest possible return of children to their families;
9. To seek an adoptive homes for eligible children including those with special needs in foster care who cannot be returned to their own homes;
10. To provide for other permanent arrangements through legal guardianship, independent living, or planned, long-term foster care in those exceptional cases where it is appropriate;
11. To protect the welfare of children, while respecting parental rights and responsibility for custody and guardianship, and avoiding unnecessary disruption of family relationships; and
12. To promote effective and efficient management and delivery of services to children, youth and families.

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s 1355.20 Definition of terms.

Unless otherwise specified, the following terms as they appear in Parts 1355, 1356, and 1357 of this title are defined as follows--

The Act means the Social Security Act, as amended.
ACYF means the Administration for Children, Youth and Families, Office of Human Development Services, United States Department of Health and Human Services.
ASHDS means the Assistant Secretary for Human Development Services, United States Department of Health and Human Services.
Child care institution means a licensed or approved public residential child care facility that accommodates no more than 25 children, or a private, nonprofit residential child care facility that is licensed or approved, by the agency of the State responsible for licensing or approval of institutions of this type, (or with respect to child care institutions on Indian reservations, by an Indian Tribal Council as defined in Section 1396.1 of this title), as meeting the standards established for licensing. Group homes are included in the term if they are licensed or approved as meeting licensing standards by the State as a child care facility. The term shall not include correctional facilities, forestry camps, training schools or any other facility operated primarily for the detention, care, or treatment of children who have been found or are alleged to be juvenile delinquents.
Commissioner means the Commissioner, Administration for Children, Youth and Families (ACYF), Office of Human Development Services, United States Department of Health and Human Services.
DHHS means the United States Department of Health and Human Services.
Family means persons related by blood, adoption or marriage, including siblings, cousins, aunts, uncles, grandparents and relatives in-law.
Foster care means 24-hour, out-of-home care provided in a licensed or approved foster family home, group home, or child care institution.
Foster family home means the home of an individual or family licensed or approved by the State licensing authority(ies) (or with respect to foster family homes on Indian reservations, by an Indian Tribal Council as defined in Section 1396.1 of this titles), that provides 24-hour out-of-home care for children. The term may include group homes if they are licensed or approved by the State as foster homes.
Initiation of court proceedings means the point at which a petition or other legal document seeking removal of a child from his or her home is filed with a court of competent jurisdiction.
OHDS means the Office of Human Development Services, United States Department of Health and Human Services.
Parents means biological or adoptive parents or legal guardians, as determined by applicable State law.
Regional Administrator (RA) means the Regional Administrator of Human Development Services, United States Department of Health and Human Services.
Regional Programs Director (RPD) means the Regional Program Director, Administration for Children, Youth and Families.
State agency means the State agency administering or supervising the administration of the title IV-B and IV-E State plans.
State means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands and the Commonwealth of the Northern Mariana Islands.
Secretary means the Secretary of Health and Human Services, United States Department of Health and Human Services.

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PART 1356--REQUIREMENTS APPLICABLE TO TITLE IV-E

s 1356.10 Program scope.

These regulations apply to State programs for foster care maintenance payments, adoption assistance payments and related administrative expenditures under title IV-E of the Act.

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s 1356.20 State plan requirements--general. A State plan for foster care and adoption assistance must provide that the requirements of the following sections are met:

Section 1356.30
Section 1356.40
Section 1356.50
Section 1356.60
Section 1356.70
Section 1356.80

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s 1356.30
Organization and administration.

Designation of a State Agency.
The State plan shall provide for designation of a State agency by the Chief Executive Officer of the State or as otherwise provided by State law that will have authority to administer or supervise the administration of the State's program for foster care maintenance payments and adoption assistance.
1. The State agency designated to administer or supervise the administration of the foster care and adoption assistance program under title IV-E shall be the same agency that administers or supervises the administration of the State's title IV-B program.
2. Plan in Effect Statewide. The State plan shall be in effect in all political subdivisions of the State and, if administered by the political subdivisions, shall be mandatory upon them.
3. Monitoring and Evaluation. The State plan shall provide for monitoring and periodic evaluation of the implementation of the programs and activities conducted under title IV-E which shall include--
  1. Annual review of valid statistically selected samples of case records of individual services recipients to ensure that the requirements of Section 1356.40 and 1356.50 are met as they apply in each case;
  2. Review and evaluation of other Federal requirements under this Part no less frequently than once every three years and a description of the methods to be used and the schedule to be followed;
  3. The reviews and evaluations shall be documented and supporting documentation shall be available for inspection and duplication by ACYF, DHHS, other Federal staff or the appropriate committees and staff of Congress.
Coordination of Services.
1. The State plan shall assure coordination of services between titles IV-A. IV-B, IV-D, IV-E, XIX and XX and any other appropriate Federal or State program to ensure maximum availability and utilization of resources that promote and enhance the welfare of children, youth, and families served under titles IV-B and IV-E.
2. The State plan shall provide for procedures that will ensure coordination of services including--
  1. An assessment of the relevance and appropriateness of other programs and services to the needs of children and their families;
  2. Provision of information to local agencies on the relevance and availability of related programs and services;
  3. Establishment of policies and procedures to facilitate referrals at the local level;
  4. Periodic assessment of the effectiveness of the State agency's arrangements for coordination of program services and activities;

Reporting Child Abuse and Neglect.

The State plan shall provide that the State agency has procedures to ensure that employees and other public and private service providers of any State agency who have reason to believe that the health or well-being of a child is harmed or threatened with harm shall bring the condition to the attention of the appropriate court or law enforcement agency, as well as to the State agency mandated to receive reports. The procedures shall apply to all children whose care is funded in whole or in part under title IV-E or IV-B of the Act whose home or institution is unsuitable due to suspected neglect, abuse or exploitation as defined in Section 1340 of this title, Child Abuse and Neglect.

Safeguarding Information.

The State plan shall provide for the establishment and maintenance of methods to safeguard the use and disclosure of information with respect to persons applying for or receiving foster care maintenance and adoption assistance, or child welfare services. The provisions of Section 1391.3 of this title, Safeguarding Information for Social Services Programs, shall be applicable to programs and activities funded under title IV-E. For the purposes of this paragraph, Section 1391.3, of this title, shall also apply to disclosure of information for purposes directly related to the administration of State plans approved under title V of the Act.

Nothing contained in these regulations or the methods, provisions, or rules developed by the State shall be used to restrict the Federal government's access to statistical data which in the judgment of the Secretary, his/her designee, or the appropriate Committees of Congress, are necessary to the proper and efficient administration and supervision of these programs.
A State may establish standards which restrict disclosure of information other than statistical data to purposes more limited than those specified in these regulations, or which, in the case of adoption, may prevent disclosure entirely.

Appeals, Fair Hearings and Grievances.

The State plan shall provide for a system for fair hearings, appeals and grievances and the methods of informing applicants and recipients of their rights under the system.
The State's system for fair hearings and appeals shall provide a process under which applicants and recipients, or someone acting on their behalf, may appeal denial, reduction, or termination of service(s) or benefit(s) or the failure of the State agency to act on a request for services or benefits with reasonable promptness. For purpose of this paragraph, the provisions of Section 205.10 of this title, Hearings, shall apply.
There shall also be a system through which recipients of service(s) or benefit(s) may present grievances to the State agency about the operation of a service or benefit program.

Program Manuals and Policy Issuances.

The State plan shall provide that program manuals and other policy issuances that affect the public, including regulations governing client rights and responsibilities, are maintained in the State office and each local office for review, study or reproduction by individuals, upon request, on regular workdays during regular work hours.

Reports and Evaluations.

The State shall submit statistical reports and participate in such evaluations as the Secretary may require with respect to children for whom payments are made. The reports shall be in a form specified by the Secretary, or his/her designee. The State agency shall comply with any provisions established by the Secretary needed to ensure the correctness and verification of these reports.

Audits

The State plan shall provide for audits of the programs assisted under title IV-E no less frequently than once every three years and conducted in accordance with standards and procedures as the Secretary may require.

Personnel Standards.

The State plan shall provide for use of methods relating to the establishment and maintenance of a personnel system on a merit basis in accordance with Federal standards and procedures as the Secretary may require.

General Requirements.

The following DHHS regulations are applicable to programs funded under title IV-E-- 45 CFR Part 16--DHHS Grant Appeals Process.

45 CFR Part 91--Non-discrimination on the Basis of Age in DHHS Programs and Activities Receiving Federal Financial Assistance (when issued).

45 CFR 1396.53--Restriction on State's share in claiming FFP.

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s 1356.40 Foster Care Maintenance Program.

Application of Eligibility Criteria.

The plan shall provide for foster care maintenance payments on behalf of a child who would meet the definition of Section 406(a) or 407 of the Act but for his or her removal from the home of a relative specified in Section 406(a) of the Act, if:

The removal was the result of a judicial determination that the child's continued residence in the home would be contrary to his or her welfare; or
The child's removal from the home was the result of a voluntary placement agreement entered into (after September 30, 1980 and before October 1, 1983) by the child's parent(s); and
The child's placement and care are the responsibility of the State agency administering or supervising the administration of the State plan; or any other public agency with which the State agency administering or supervising the administration of the State plan approved as meeting the requirements of Section 1356.20 has made an agreement which is still in effect; and
The child received assistance under the State plan approved under title IV-A (AFDC) of the Act in or for the month in which the voluntary agreement was entered into or judicial proceedings leading to the removal of the child from the home were initiated; or the child would have received assistance under AFDC in or for that month if an application had been made; or the child had been living with a relative specified in Section 406(a) of the Act within six months prior to the month the judicial proceedings were initiated or voluntary agreement entered into and would have received AFDC in or for that month if in that month he or she had been living with such relative and an application for AFDC had been made; and
The child has been placed in a licensed or approved foster family home or a child care institution as a result of a voluntary placement agreement or judicial determination referred to in paragraphs (1) and (2) of this Section.
Effective October 1, 1983, reasonable efforts have been made to prevent removal from the home and to make return possible.

Foster Care Maintenance Payments.

The State plan must provide--

a Statewide standard for foster care rates, expressed in money amounts, to be used in determining the amount of the foster care payment, and to be applied uniformly throughout the State; and
the method used in determining the amount of the foster care payment; and
for taking into consideration the income available to the child in determining the amount of the foster care maintenance payment.

Foster care maintenance payments shall be made only on behalf of an eligible child who is placed in a foster family home or a child care institution, whether the payments are made directly to the foster parent(s) or the child care institution or to a public or non-profit private child placement or child care agency.
Federal financial participation is available for allowable costs in foster care maintenance payments to cover the cost of (and the cost of providing) food, clothing, shelter, daily supervision, school supplies, a child's personal incidentals, liability insurance with respect to a child, and reasonable travel to the child's home for visitation. In the case of child care institutions, payments shall also include the reasonable cost of administration and operation that are necessarily required to provide the items described in this paragraph.
For purposes of determining eligibility (initial and continuing) and the income and resources of the child, the State's procedures under the State's approved title IV-A plan shall apply.

Eligibility for Other Services.

For purposes of eligibility for services under title XIX and title XX, a child eligible for foster care maintenance payments under title IV-E shall be considered to be a dependent child as defined in Section 406 of the Act and shall be considered to be a recipient of AFDC under title IV-A of the Act.

Case Review System.

The State agency shall develop and implement a case review system that shall ensure, for each child receiving foster care maintenance payments under the State title IV-E plan, a case plan, periodic review of the child's status, and procedural safeguards regarding the rights of the child and the parent(s).

Definition of Terms.

Appropriate Notice to the Child means written notice or person-to-person discussion that takes into account the child's ability to understand what is being conveyed without raising excessive anxiety or fear.
Child of Appropriate Age means that the child is able to understand the circumstances and implications of the situation in which he or she is involved and is able to participate in the decision or process without excessive anxiety or fear.
Close Proximity to Parent(s) Home means a placement nearest the home community or residence of the child's parent(s) or legal guardian(s) that is consistent with the child's best interest and special needs. Factors to be considered include ease with which the child, his or her parent(s) and family may visit each other and the availability of services the child may require.
Determining the Continuing Necessity and Appropriateness of Placement means an assessment of the conditions in the child's own home to determine whether the child should return home. If the review of the home indicates that continued foster care is required, the assessment shall also include a determination of whether the placement and the services provided are appropriate to the child's needs and whether the service goals in the case plan are still appropriate.
Placement in the Least Restrictive Setting means the most family-like setting that can provide the environment and services needed to serve the child's best interests and special needs. In order of consideration, this means placement with relative(s), tribal member(s), foster family care, group home care and institutional care.

Case Plan.--

The State agency shall develop written policies and appropriate procedures to be in effect throughout the State which will assure that children will be placed in the least restrictive setting available and in close proximity to the parent(s)' or family home, consistent with the best interests and special needs of the child. The State agency shall develop a Statewide procedure for approving out-of-state placements or placements beyond a specified distance from the child's home.
The case plan shall be a separate, identifiable written document which includes for each child a relevant history and diagnostic assessment, sets goals, and describes significant transactions involving the child, including, after October 1, 1983, the services which were offered or provided to prevent removal from the home prior to placement.
The case plan shall be developed within a 30 day period, starting at the time the agency assumes responsibility for providing services or placing the child, and shall include at a minimum--

After October 1, 1983 a description of the services offered or provided which were intended to help the child remain with his family;
A description of the type of home or institution in which the child is to be placed;
A justification of appropriateness of placement that discusses the child's best interests and any special needs, and whether the placement is in the least restrictive setting available and in the closest proximity to the parent(s)' home; and
A statement of all requirements of the court at the time of judicial determination or recommendations of the administrative review panel and a discussion of how the agency responsible for the child's care will meet the requirements and recommendations.
An analysis of the circumstances that necessitated the placement and the improvements required for the child's return to his or her home.
A statement of the goals, developed in consultation with the child and his family, to be achieved during the period of placement, a description of the services to be provided to the child, the child's parent(s), and family, and a discussion of the appropriateness of these services in meeting the goals and the child's special needs, if any;
A statement of the agency's plan for assuring that the child receives proper care while in the foster home or institution including services to the foster parent(s) to facilitate and support the child's adjustment, and that services are provided to the parent(s), child and other appropriate family members in order to improve the conditions in the parent(s)' home;
An estimated date by which a decision will be made to return the child to his or her parent(s) or family, or to seek an alternative permanent placement including adoption;
A description of the extent to which the child, if of appropriate age, the parent(s) or other relatives participated in the development of the case plan.
Where long term foster care is determined to be the plan for the child's future, the responsible agency shall include a statement in the case plan of the special needs or circumstances that would not allow the child to be returned home or placed for adoption, and shall specify the efforts that were made to place the child with parent(s) or other family or in adoption.
All parties to the development of the case plan, including the child of appropriate age, his or her parent(s) or other relative(s), shall receive a of the plan, which will include, whenever possible, signature(s) indicating that they have read and understood the plan.
The case record shall contain a continuing, updated notation of the results of each court and administrative action or review affecting the child, and significant agency actions, services, or encounters relative to the case plan.

Periodic Review.--

The case review system shall provide for a review of the status of each child no less frequently than once every six months by a court, or by an administrative review. The periodic review shall include--

A determination of the continuing necessity for and appropriateness of the child's placement;
A discussion of the extent to which all parties have complied with the case plan and achieved the goals described in the plan;
A summary of progress toward alleviating or mitigating the circumstances necessitating placement; and
A target date by which the child may be returned home or placed for adoption, legal guardianship or other permanent placement.

Administrative Review.--

When the periodic review is an administrative review it shall be conducted by a panel of appropriate persons, at least one of whom is not a part of the direct line of supervision in the delivery of services to the child or parent(s) being reviewed. The review panel may include agency staff, staff of other agencies, officers of the court and citizens qualified by experience, professional background or training.
Members of the administrative review panel shall receive instructions which will enable them to understand the review process and their roles as participants.
The administrative review shall be open to the participation of the parent(s) and the child, if of appropriate age, and may include the foster parents. The agency shall develop methods and procedures for assuring that written notice will be sent to the child's parent(s) two weeks prior to the review, notifying them of the date and location of the review, and the rights of parent(s) and the child to be accompanied by a representative of their choice.
Following the review, a written statement of the conclusions and recommendations shall be made available to all participants in the review, subject to agency safeguards relative to the confidentiality of information.

Dispositional Hearings.--

The case review system shall require a dispositional hearing for each child no later than 18 months after placement; and shall have additional dispositional hearing(s) annually thereafter, unless otherwise determined by a court of competent jurisdiction.
The dispositional hearing shall he held by a family, juvenile or other court of competent jurisdiction, including a tribal court, or by an administrative body appointed or approved by the court.
The hearing shall determine the child's future status, including whether--

The child should be returned to his or her parent(s) or other family member(s);
The child should be continued in foster care for a specified period;
The child should be placed for adoption or legal guardianship; or
The child, because of exceptional circumstances, should remain in foster care on a long term basis as a permanent plan or with a goal of independent living.

Procedural Safeguards for the Rights of Parents and Child.--

Procedural safeguards shall be applied with respect to the rights of parent(s), family and child pertaining to--

Removal of the child from the home of his or her parent(s) or other family members;
Any change in the child's foster care placement; and
Any determination affecting the visitation arrangements of the parent(s) or other family member(s).

Procedural safeguards shall include--

Prior written notice to the parent(s) or relative(s) with whom the child is living of the agency's intent to petition the court to remove a child from the home of his or her parent(s) or other family members. Notice shall be provided two weeks in advance of the intended action and shall specify the nature of the hearing; how counsel may be obtained; the right to written findings from the hearings and how they may be obtained; and the right to appeal. The State shall have a method of verifying that the parent(s) or family received the notice. This prior notice requirement will apply to all court proceedings with regard to neglect, dependency or termination of parental rights unless the child's health or well-being would be endangered if prior notice were given.
A method of ensuring that notice of the intent to petition the court to remove the child from the home or to terminate parental rights is given in the language of the family and is given orally if there are indications that the parent does not read.
Written notice of any intended change in placement or visitation agreement. The notice shall be sent to the parent(s) or family two weeks in advance of the change, with a statement advising them of their right to object, unless the child's health or well-being is endangered by delaying the action or would be endangered if prior notice were given;
Procedures which shall ensure review of the parent(s) objection(s) and provide for a discussion of the proposed change with the parent(s); and
Appropriate notice to the child of the intended change in placement or visitation arrangement, given two weeks in advance of the change, unless the child's health or well-being is endangered by delaying the action or would be endangered if prior notice were given.

Efforts to Prevent Removal from the Home and to Reunify Families.--

By October 1, 1983 the State agency shall develop and implement policies and procedures to ensure that in each case reasonable efforts shall be made to provide the services described in Section 1357.30(b)(4) to prevent or eliminate the need for removal of a child from his or her own home and to provide the services described in Section 1357.30(a)(5) to make it possible for each child in foster care to return to his or her own home.

Establishment of Specific Foster Care Goals.--

On or before October 1, 1982, the State shall enact a statute that provides specific goals for reducing the number of children receiving assistance under title IV-E who will be in foster care more than 24 months.

goals shall be set for each fiscal year, beginning with the fiscal year that starts on October 1, 1983;
the goals shall be stated in absolute number of children in foster care or as a percentage of all children for whom assistance is provided during the year, and shall apply to children who at any time during the year will have been in foster care for a period in excess of 24 months.

The State Plan shall contain a description of the steps the State will take to achieve its foster care goals.
Placements Outside the State.--If a child is in foster care outside the State, the State agency shall retain responsibility for foster care payments, and for services under titles XIX and XX of the Act, and for ensuring that protections under the case plan, case review and reunification procedures are provided, until--

The State agency has been relieved of its responsibility by court action; or
A voluntary agreement has expired or has been revoked; or
The date that the receiving state indicates that it will begin payments and services.

Standards for Foster Care Homes and Child Care Institutions.--

The State shall establish and maintain Statewide standards for foster family homes and child care institutions receiving funds under titles IV-E and IV-B. These standards shall be reasonably in accord with recommended standards of national standard-setting organizations.
The State shall identify the particular national standards, or a combination of national standards, with which its standards are reasonably in accord.
The standards for child care institutions established by the following national organizations shall be used in the development of State standards--

Child Welfare League of America;
National Association of Homes for Children;
Council on Accreditation Services for Families and Children, Inc.;
Interstate Consortium on Residential Care for Children; or
Joint Commission on Accreditation of Hospitals.

The State standards shall be incorporated into State licensing or approval requirements for foster family homes private child care institutions, and for manuals for State-administered child care institutions as appropriate.

Licensing requirements established for foster family homes shall cover, at a minimum, the following areas--

Character, physical and emotional health, and financial status, of the foster families;
Maximum number of children per home, including the maximum number of children under the age of two;
Participation of foster parent(s) in case planning when requested by the agency; and
Participation of foster parent(s) in available training deemed appropriate by the agency.

Licensing requirements established for child care institutions shall cover, at a minimum, the following areas--

Organization, administration, and financial management;
Policies for admission, personnel, and operation;
Case recordkeeping;
Treatment plans;
Services which provide for the child's developmental, social, and educational needs;
Policies and procedures for assisting permanency planning for children;
Coordination of the child's treatment plan with services provided to family;
Education and experience qualifications of administrative, social work and child care staff;
Staff-child ratio;
Physical plant and equipment safety; and
Health care.

The State licensing or approval requirements shall provide for sanctions for failure to comply with the requirements by a licensed or approved facility.
Review of State Standards.--

The State agency shall conduct a review of its standards for child care institutions and foster family homes no less frequently than once every three years to assure their continuing appropriateness to the child care setting and to the service needs of children.

Review of Foster Care Maintenance Payments.--

The amount of the State's payments for foster care maintenance payments shall be reviewed no less frequently than once every two years to ensure their continuing appropriateness. The review shall include an examination of the costs of maintaining a child in foster care and the criteria for setting rates for foster care maintenance payments.

Public Participation in Review of State Standards and Payment.--

The method of review of the State's standards for child care institutions and foster family homes, and for review of the payment systems shall be developed by the State agency. However, there shall be public participation in the review so that, at a minimum, representatives of the following groups shall have an opportunity to participate--

Advisory Boards;
Foster parent(s);
Child care institutions;
Other public and private child welfare, human services and advocacy organizations; and
Parent(s) of children for whom foster care has been, or is being, provided.

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s 1356.50 Voluntary placements

Federal financial participation is available for allowable costs in expenditures made after September 30, 1980 and before October 1, 1983, when the requirements of this Section, Sections 1356.40(a) and 1357.30(b) are met for foster care maintenance payments and adoption assistance payments made for a dependent child removed from his or her home pursuant to a voluntary placement agreement.
Federal financial participation is limited to expenditures made within the first 180 days of voluntary placement unless there has been a judicial determination by a court of competent jurisdiction within the first 180 days of placement to the effect that the continued voluntary placement is in the best interests of the child.
Definitions.--

Voluntary Placement means an out-of-home placement of a minor, by or with the participation of a State agency, after parent(s) of a minor have requested the assistance of the agency and signed a voluntary placement agreement.
Voluntary Placement Agreement means an executed written agreement, binding on all parties, between the State agency or another agency authorized to execute voluntary placement agreement(s) and the parent(s) of a child. The agreement shall specify at a minimum the legal status of the child; the rights, obligations, and responsibilities of the parent(s) the child, and the placing agency while the child is in placement; and the conditions under which the agreement may be terminated by the parent(s).

Certain Voluntarily Placed Children.--

Federal financial participation is available for allowable costs in expenditures for foster care maintenance payments for children who were voluntarily removed from the home of a relative prior to October 1, 1978 if--

There was a judicial determination prior to October 1, 1978, to the effect that continuation therein would be contrary to the welfare of the child; and
The child is found to be in need of foster care. Each such child is considered to have been removed as a result of judicial determination if and from the date that a case plan meeting the requirements of Section 1356.40(d)(2) and a case review meeting the requirements of Section 1356.40(d) have been made for each child. The date of the voluntary removal shall be deemed to be the date on which court proceedings were initiated which led to the child's removal.

Voluntary Placement Agreement.--Upon request of the parent(s) or legal guardian(s) and after the State agency has determined that a voluntary placement would be in the best interests of the child, a written agreement, binding on all parties, shall be executed between the child's parent(s) and the State agency (or another agency acting on its behalf).
Revocation of the Voluntary Placement Agreement.--

In order to request return of a child placed under a voluntary placement agreement, the parent(s) of the child shall give written notice to the agency at least five (5) working days in advance of the effective date.
The Voluntary Placement Agreement shall be considered to be revoked on the effective date of the request unless the State agency has obtained a judicial determination under applicable State law that return to the home would be contrary to the child's best interest. s 1356.60 Adoption Assistance Program.

Eligibility Criteria.--Adoption assistance payments shall be made under an adoption assistance agreement to adoptive parents who, after the effective date of the title IV-E State Plan, adopt a child--

Who at the time adoption proceedings were initiated, met the requirements of Section 406(a) or Section 407 of the Act or would have met those requirements except for his removal from the home of a relative (specified in Section 406(a)) as a result of judicial determination to the effect that continuation therein would be contrary to the welfare of that child, or under a voluntary placement agreement entered into after September 30, 1980 and before October 1, 1983; and
Who received aid under the State plan approved under Section 402 of the Act in or for the month in which court proceedings leading to the removal of that child from the home were initiated; or would have received the aid in or for that month if application for the aid had been made; or had been living with a relative specified in Section 406(a) of the Act, within six months prior to the month in which the proceedings were initiated, and would have received the aid in or for that month if in that month he had been living with a specified relative and application for the aid had been made; and
With respect to whom a determination has been made that the child cannot or should not return to his parent(s); and
Who is determined by the State to be a child with special needs.

Child with Special Needs means a child whom the State has determined has specific factor(s) or condition(s) such as ethnic background, age, minority or sibling group membership, medical conditions, or physical, mental or emotional handicaps that would make unassisted adoption unlikely; and
For whom reasonable, but unsuccessful, efforts to place without adoption assistance have been made, unless the best interests of the child would not be served by such efforts, as in the case of a child who has significant emotional ties to prospective adoptive parent(s) while in the care of such parent(s) as a foster child.

Who meets all the requirements of title XVI of the Act with respect to eligibility for Supplemental Security Income benefits and paragraphs (3) and (4) of this subsection.
Adoption Assistance Agreement.--

A written adoption assistance agreement binding on the parties to the agreement between the State agency, other relevant agencies, and the prospective adoptive parent(s), must be in effect for any child for whom adoption assistance payments are made. The agreement shall be signed and in effect prior to the final decree of adoption. A of the signed agreement shall be given to each party.
For the purposes of eligibility for services under titles XIX and XX of the Act, a child for whom adoption assistance payments are made under title IV-E shall be considered to be a dependent child as defined in Section 406 of the Act and shall be considered to be a recipient of AFDC under title IV-A of the Act.
The agreement shall specify, at a minimum--

The amount of assistance payments;
The additional assistance or services to be provided by the State, and how the costs for these items are to be met;
The duration of the agreement;
The process for recertification and that failure to recertify will result in termination of the agreement (see paragraph (f) of this section, Recertification);
That the child is eligible for benefits and services under the State's title XIX and title XX of the Act;
How adoptive parent(s) shall notify the agency of changes in the needs of the child or circumstances of the adoptive family that would affect the eligibility for, or amount of, adoption assistance payments;
How adoptive parent(s) shall be notified or any changes in the rates of adoption assistance payments and how they may request changes in the adoption assistance agreement;
Whether the adoption assistance agreement remains in effect if the adoptive parent(s) move out of State; and
Contain provisions for the protection of the interests of the child in cases where the adoptive parent(s) and child move to another State while the agreement is effective.

Effective with respect to agreements entered into on or after October 1, 1983, the adoption assistance agreement shall remain in effect regardless of the State in which the adoptive family resides.
Adoption Assistance Payments.--

There shall be no income eligibility requirement (means test) for the prospective adoptive parent(s) in determining eligibility for adoption assistance payments.
The amount of the adoption assistance payments--

Shall not exceed the foster care maintenance payment levels for that child if he or she were in a foster family home;
Shall be based upon the needs of the child and the circumstances of the adoptive family; and
Shall be determined by agreement between the prospective adoptive parent(s) and the State agency.

Payment shall begin after final decree of adoption or from the date of an interlocutory decree.

Interlocutory decree means a court order granting legal custody or guardianship to the adoptive petitioners prior to the final decree of adoption.

Adjustments in payments may be made only with the concurrence of the adoptive parent(s) and may be based upon changes in the needs of the child, the circumstances of the adoptive family or changes in the adoption assistance payment rate.
Termination of Adoption Assistance Payments.--

No payments shall be made to adoptive parents--

For any child who reaches the age of 18 (or 21, if the State determines that the child has a mental or physical handicap that warrants continuation); or
If the State determines that the adoptive parent(s) are no longer legally responsible for the support of the child; or
If the State determines that the child is no longer receiving any support from the adoptive family.

Review of Adoption Assistance Payments.--

The State's system of adoption assistance payments shall be reviewed no less frequently than once every two years to ensure their continuing appropriateness.
There shall be public participation in the review that shall involve, at a minimum, representatives of the following groups--

Advisory Boards;
Adoptive parents; and
Public and private child welfare, human services and advocacy organizations.

Recertification.--

The State agency shall develop a process for annual recertification of adoption assistance agreements to determine whether changes in the needs of the child or the circumstances of the family affect eligibility for, or amount of, adoption assistance payments. The process of recertification shall ensure:

That written notice of the recertification requirement is given to the adoptive parent(s) no less than 60 days prior to the anniversary date of the adoption assistance agreement;
that assistance will not be terminated without a legally sufficient second notice to the adoptive parents, and
that the adoptive parents are aware that termination of adoption assistance will result from failure to recertify.

Entitlement to Other Services and Benefits.--

The State making the adoption assistance payment shall retain financial responsibility for services under titles XIX regardless of the child's State of residence.
If an adoptive family moves to another State, they may apply for services under title XX in that State. (The child for whom an adoption assistance payment is made is eligible for title XX services as though he/she were an AFDC recipient.) However, if the needed service(s) spelled out in the adoption assistance agreement are not available, the State making the adoption assistance payment remains financially responsible for providing the service(s).

Promotion of the Adoption Assistance Program.--The State agency shall actively seek ways to promote the adoption assistance program, including--

Distribution of written notices to local offices and private agencies with whom the State contracts for adoption services; foster parents and foster parent organizations; community-based agencies and networks including civic, social and religious organizations affiliated with the population of children who are in need of placement; caretakers for children in institutions and residential treatment centers; and other interested persons and organizations about the availability of adoption subsidies.
The notice shall specify the eligibility criteria for children and describe the benefits available and the procedures through which interested persons may apply to become adoptive parents under the State's adoption assistance program.

Federal Financial Participation.--

Federal financial participation may be claimed for any child adopted on or after June 17, 1980 if all other requirements of this part have been met.
Federal financial participation is available for allowable costs in adoption assistance payments in accordance with a valid adoption assistance agreement and these regulations.

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s 1356.70 Plan format and approval.

General.--

The State plan shall certify that the State's program will conform with the statutory requirements of title IV-E, these regulations, and other applicable DHHS issuances.
The State plans for titles IV-E and IV-B of the Act may be combined for submittal to ACYF. However, the State shall clearly identify those programs and activities to be funded under title IV-E and those to be funded under title IV-B.

Plan Amendments.--

The State title IV-E plan provisions shall be amended when necessary to reflect new or revised Federal statutes or regulations and court decisions. After approval of the original State Plan, all relevant changes shall be submitted to the RPD, ACYF to determine whether the State Plan continues to meet Federal requirements and policies.

Submittal of State Plans.--

The State title IV-E plan shall be submitted to the Governor's Office, or his/her designated agency; for review and comment in accordance with Office of Management and Budget Circular A-95 prior to OHDS/ACYF approval.
State plans (new or amendments thereto) for the title IV-E program shall be submitted to the RPD in the format and within the period set in implementing instructions.

Review and Approval of State Plans.--

The ACYF Regional Program Director shall determine whether a State plan or amendment conforms to the requirements under the Act and these regulations no later than 45 days after the plan or amendment is received in the appropriate ACYF Regional Office.
The effective date of a new plan or plan amendment(s) shall be no earlier than the first day of the quarter in which an approvable plan or plan amendment is submitted.

Review of State and Local Administration and Implementation.--

To provide a basis for determining that State agencies are adhering to federal requirements and to the substantive legal and administrative provisions of the State plan, ACYF will review State and local program administration and implementation. The review shall include analysis of procedures and policies of State and local agencies, examination of case records of individual services recipients and a review of supporting documentation.

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s 1356.75 Withholding of funds for non-compliance with the approved Title IV-E State Plan.

A State agency shall be cited for non-compliance when it fails substantially to comply with the requirements of this Part. An issue of non- compliance exists when--

A State plan which has been approved by the Regional Program Director no longer complies with the provisions of this Part.
In the administration of the plan there is a substantial failure to comply with provisions of the plan; or
When the State fails to amend its approved plan to conform to new federal requirements for State plans.

When a determination has been made that a State agency has failed to comply with the provisions of this Part, the State shall be entitled to reasonable notice and opportunity for a hearing in accordance with the provisions of Part 213 of this title. If after such notice and hearing, a final determination is made that the State agency has failed to comply with the provisions of this Part and the plan has not been amended to conform with the requirements, the State agency shall be notified that further payments will not be made to the State under this Part, or that such payments will be reduced by the amount which the ASHDS determines appropriate, until the ASHDS is satisfied that there is no longer failure to comply.
No further payments shall be made to the State, or the payment shall be reduced by the amount specified in the notification, until the noncompliance is corrected to the satisfaction of the Secretary.

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s 1356.80 Fiscal requirements (IV-E).

Payments to States for Foster Care Maintenance and Adoption Assistance.--

Effective October 1, 1980, Federal financial participation is available to States with an approved State plan for allowable costs in expenditures for:

Foster care maintenance payments made in accordance with this Part (subject to the limitations in paragraph (b)); and
For adoption assistance payments made in accordance with this Part.

Federal financial participation is available at the rate of the Federal medical assistance percentage as defined in section 1905(b), Definitions, of the Act, and pertinent regulations as promulgated by the Secretary, or his/her designee.
Federal Matching Funds for State and Local Training for Foster Care and Adoption Assistance under Title IV-E.

Federal financial participation is available at the rate of seventy- five percent (75%) in the costs of training for foster care and for adoption assistance under the State plan under title IV-E of the Act.
All training activities and costs funded under title IV-E shall be included in the State agency's training plan for title IV-B as required in Section 1357.20(c)(5).
Short and long term training at educational institutions and in- service training may be provided to employees of the State agency and persons preparing for employment in the State agency in accordance with the provisions of Sections 235.63 through 235.66 of this title.
Foster and adoptive parents, and staff of child care institutions providing foster care shall be eligible for short-term training at the initiation of or during their provision of care. Federal financial participation directly related to such training shall be limited to travel and per diem and the costs listed under paragraph (b) of s 235.64 of this title.

Federal Matching Funds for Other State and Local Administrative Expenditures for Foster Care and Adoption Assistance Under Title IV-E. Federal financial participation is available at the rate of fifty percent (50%) for administrative expenditures (other than training) necessary for the proper and efficient administration of the State plan. To the extent that such activities may also be claimed under another federally-assisted program, the State may decide in which program costs for such activities will be claimed, subject to the regulations under 45 CFR Part 74, Administration of Grants. The State plan shall identify which categories of program-specific costs are allowable and claimed. The State shall provide assurances and adequate controls under its cost allocation plan to prevent duplicate charges for the same activities to multiple programs and to allocate costs applicable to children not covered under title IV-E to the appropriate program.

The following are examples of allowable administrative costs necessary for the administration of the foster care program:

Determining and redetermining eligibility;
Referral to services;
Preparation for and participation in judicial determinations;
Placement of the child;
Development of the case plan;
Case reviews;
Fair hearings, appeals and grievances;
Case management and supervision;
Recruitment and licensing of foster homes and institutions; and
Rate setting.

Allowable administrative costs do not include the costs of social services provided to the child, family or foster family which provide counseling or treatment to ameliorate or remedy personal problems, behaviors or home conditions.
Funds expended with respect to nonrecurring costs of adoption proceedings for children on behalf of whom adoption assistance is provided under the State plan may not be reimbursed as administrative costs under I-VE. (d) Other Applicable Regulations. The procedures in the following sections of 45 CFR shall apply:

Section 201.5, Grants (except that ACYF shall supply appropriate forms and instructions);
Section 201.6, Withholding/Reduction of FFP;
Section 201.7, Judicial Review;
Section 201,15, Deferral;
Section 201.66, Repayment of Federal funds in installments.; and
Section 205.150, Cost Allocation.

State Allotment.

The State allotment for foster care under this Part for Fiscal Years 1981 through 1984 shall be the greater amount as determined under paragraph (1) or (2); or, at the option of the State, under paragraph (3) below. This determination is made without regard to the allotment for any prior fiscal year except as specified under paragraph (3)(iii) below. The State need not select the same option each year. The allotment is a single dollar amount, limiting Federal funds reimbursed to a State for foster care payments and related administrative expenditures (including training).

The first method provides for the calculation of the base amount and adjustments for each fiscal year as follows:

For Fiscal Year 1980, the State's allotment is the base amount increased by 21.2%.
For each of the Fiscal Years 1981 through 1984, the allotment for the State shall be an amount equal to the State's allotment for the preceding fiscal year, increased or decreased by twice the change (but not more than 10%) in the percentage of the Consumer Price Index, prepared by the U.S. Department of Labor, and used to determine the cost of living adjustments for Social Security benefits under Section 215(i) of the Act, Cost of Living Increases in Benefits. For this calculation, second quarter data of the preceding fiscal year shall be compared to those for the second preceding fiscal year. The arithmetic mean for the three months of the second quarter shall be used to establish the Consumer Price Index for the quarter.
The base amount in paragraph (1)(i) is calculated using the following formula: Maintenance payments plus attributable administrative expenditures plus attributable training expenditures. For the purposes of this formula:

Maintenance payments are determined by:

The amount of Federal funds that have been or may be paid on behalf of allowable claims for foster care maintenance payments for FY 1978 submitted to DHHS in accordance with Section 306 of Pub. L. 96-272 (94 Stat 530); and
The amount of Federal funds that would have been paid for allowable claims on behalf or children meeting all requirements of Section 408 of the Act for FY 1978 except that the State, on a Statewide basis, did not make such payments under State law, regulation or policy solely because the foster care was provided by relative(s) of a child;

Attributable Administrative Expenditures means State expenditures for fiscal year 1978 attributable to the performance of activities required under Section 408 of the Act for children for whom maintenance payments are included under paragraph (A)(1) and above, regardless of whether payment for the administrative expenditures might have been made under Section 403 of the Act. Expenditures which may be included are limited to costs of conducting for those children: eligibility determination and redetermination, quality control, fair hearings, agency activities, judicial determination, placement, case review, case management, case supervision, rate- setting, recruitment of foster care homes and institutions, licensing and a proportionate share of general related agency overhead. The amount of these expenditures is determined: by one of the following three methods:

By actual administrative expenditures attributable to the provision of foster care maintenance payments for Fiscal Year 1978, multiplied by 50%, if a State submits a report of these expenditures which is satisfactory to the Secretary and which is supported by documentation,
By an amount determined by the following formula: (i) The State's total AFDC administrative expenditures for fiscal year 1978 divided by State's average monthly number of AFDC cases in fiscal year 1978; (ii) The result of step (i) multiplied by 50%; (iii) The product of step (ii) multiplied by the average monthly number of AFDC-FC cases in Fiscal Year 1978; or (3) By an amount determined as follows: (i) The State's administrative expenditures (as limited in paragraph (e)(1)(iii)(B) of this section) attributable to foster care maintenance payments made under title IV-E or IV-A during a period of three or more calendar months of FY 1981 divided by the number of months in the period; (ii) The result of (1) reduced to the comparable FY 1978 amount by use of the Implicit Price Deflator for State and Local Government Purchases (issued by the U.S. Department of Commerce); (iii) The result in (ii) multiplied by the ratio of the average monthly number of AFDC-Foster Care cases in FY 1978 compared to the comparable number for the period used in (i); (iv) The product in (iii) multiplied by 12 (for an annual amount); and (v) The product in (iv) multiplied by 50 percent (the FFP rate in administrative expenditures). (vi) The data in paragraph (i) need not have been or be claimed under Section 403 or 474 of the Act. They must be reported to the RPD no later than 30 days after the end of fiscal year 1981 and must be in accordance with instructions from the Commissioner.

Attributable Training Expenditures are determined by:

Actual training expenditures attributable to the provision of foster care maintenance payments for FY 1978 multiplied by 75%, if a State submits a report of these expenditures which is satisfactory to the Secretary and supported by documentation; or
An amount determined by the following formula: (i) The State's total AFDC training expenditures for FY 1978 divided by the State's average monthly number AFDC cases in FY 1978; (ii) The result of (i) multiplied by 75%; (iii) The product of (ii) multiplied by the average monthly number of AFDC-FC cases in FY 1978.

Sources of Data and Documentation.

All claims in this section must be submitted on forms provided by the Secretary and in accordance with the constraints of Section 306 of the Pub. L. 96-272 (94 Stat. 530).
All reports to establish the claims which would have been allowable under sub-paragraph (iii)(A) (2), (iii)(B) (1) or (iii)(C)(1) of this paragraph must be submitted on forms provided by the Secretary within forty-five (45) days after the end of the second quarter of FY 1981. (e)(1)(iii)(E) Disputed Claims or Reports.

Only the following claims or reports in which DHHS and a State have a dispute will be included in the base amount:

For maintenance payments, the claims submitted to DHHS in accordance with Section 306 of Pub. L. 96-272, and the reports submitted to DHHS on expenditures and reported numbers of children under paragraph (iii)(A)(2) of this section;
For attributable administrative expenditures, the dollar amount reported to DHHS in accordance with paragraph (iii)(B)(1);
For attributable training expenditures, the dollar amount reported to DHHS in accordance with paragraph (iii)(C)(1);

Any claims or reported data in which a State and the Secretary have a dispute will be included in the base amount until the beginning of the fiscal year after the fiscal year in which the dispute is finally resolved by the Department. Allotments for fiscal years after resolution of the dispute will be computed using the revised base amount.
Under the second method, the allotment for the State equals an amount which bears the same ratio to $100 million as the under age 18 population of that State bears to the under 18 population of the fifty States and the District of Columbia.
Eligible States may select that their allotment be calculated by a third method.

A State may not exercise this option unless:

The percentage of the average monthly number of children in the State under 18 who received AFDC foster care maintenance payments as a proportion of all children under 18 in the State in FY 1978 was less than the corresponding national percentage for the 50 States and the District of Columbia;
Beginning in FY 1982, the State's average monthly number of children under 18 who received AFDC-foster care maintenance payments compared to the State's total number of children under 18 has not exceeded the corresponding national percentage of the 50 States and the District of Columbia for Fiscal Year 1978.

Under this method, the allotment is calculated as follows:

The base amount is determined by applying the provisions of paragraph (e)(1)(ii) of this section.
If for any of the fiscal years 1981-1984, the percentage of children receiving foster care maintenance payments in the State under titles IV-A or IV-E of the Act exceeds the average monthly number of such children for fiscal year 1978, the base amount for that fiscal year shall be further increased by the percentage increase in the State's foster care maintenance payment caseload over its AFDC-FC case load for fiscal year 1978. This percentage increase may not exceed: for fiscal year 1981--33.1 percent; fiscal year 1982--46.4 percent; fiscal year 1983--61.1 percent; and fiscal year 1984--77.2 percent.
Adjustments to the base amount for each fiscal year are made in accordance with paragraphs (e)(1) (i) and (ii) of this section.

If the State no longer meets the conditions for exercising the State option provided in subparagraph (e)(3)(i) of this section, but selected this option for the determination of its allotment for the preceding fiscal year, the allotment for the preceding fiscal year shall be used for the purpose of determining allotments for subsequent fiscal years through fiscal year 1984.
For the purpose of establishing the average monthly number of children receiving AFDC foster care maintenance payments under this section, children who, except for their placement with related persons, would have received AFDC-Foster Care under Section 408 of the Act shall be included even though they did not receive foster care maintenance payments.
In the event that there is a dispute between a State and the Secretary as to the number of such children (with respect to whom foster care maintenance payments were not made) for any fiscal year, then until the beginning of the fiscal year immediately following the fiscal year in which the dispute is finally resolved by DHHS, determinations under the foregoing subparagraphs shall be made on the basis of the number of such children claimed by the State.
Interim allotments for each fiscal year shall be issued by the Secretary, or his/her designee, for States eligible under the option described in paragraph (e)(3)(i) of this section not later than six months after the beginning of the fiscal year. The interim allotments shall be based on the most recent satisfactory data then available. The final allotment shall be issued not later than nine months after the end of that fiscal year and shall be based on the most recent satisfactory data then available.
The limitation on available funds imposed by the allotment will be effective only if:

The appropriation under Section 420 of the Act for that fiscal year equals or exceeds the following amounts: for fiscal year 1981--$163,550,000; 1982--$220,000,000 and for fiscal years 1983 and 1984--$266,000,000; and
With respect to each of the fiscal years 1982-1984, the appropriation for title IV-B under Section 420 of the Act has been made before the beginning of the fiscal year to which the limitation applies.

The State shall select the method for determining its allotment no later than forty-five (45) days after the end of the second quarter of the applicable (Federal) fiscal year.
Transfer of Funds from Title IV-E to Title IV-B.

Funds available to the State within the foster care allotment for title IV-E which the State does not claim as reimbursement under title IV-E may be transferred to title IV-B and claimed by the State as reimbursement under that program only if the State has selected an allotment described under paragraphs (e)(1) or (e)(2) of this section.
If the amount transferred to title IV-B, when added to the IV-B allotment, exceeds the amount which would be allotted to the State under title IV-B if the appropriation for title IV-B equaled $141 million, the State may transfer funds under subparagraph (i) only if it has met the requirements in Section 1357.30(a) of this title.
If the appropriation for the two previous fiscal years under Section 420 of the Act equaled $266,000,000, the State may transfer funds under subparagraph (i) only if it has met the requirements of Section 1357.30(b) of this title.
If the total reimbursement for expenditures under IV-B (including transferred funds) equaled the State's share of $266,000,000 for each of two fiscal years in which the limitation under this section did not apply, the State may not transfer funds under subparagraph (i) in any succeeding year unless the State has met the requirements of Section 1357.30(b) of this title.

Amount that may be Transferred from Title IV-E to Title IV-B.

The amount of funds that a State may transfer from title IV-E to title IV- B is:

For any year in which the limitation specified under this section is in effect, the amount by which the State's title IV-E foster care allotment exceeds the FFP in State expenditures for foster care maintenance payments and administrative expenditures, including training expenditures; and
For any year in which the limitation specified in this section is not in effect, the amount determined under paragraph (A), above, is further limited to the amount which when added to the amount the State receives under Section 420 of the Act (including all re-allotments) does not exceed the amount of the State's allotment under Section 420 of the Act if the amount described under Section 474(b)(2)(A) of the Act had been appropriated.

Transferred funds must be used to reimburse expenditures under title IV-B for the same fiscal year for which they were originally available.

The State must apply for approval of transfer of these funds to the Regional ACYF office no later than the end of the third quarter of the fiscal year in which they will be obligated.
The procedures for application for funds and plans under title IV-B, including joint planning, shall apply to these funds, except as modified by the Commissioner.

A State shall operate its foster care program under its State plan continuously throughout the time the plan is in effect, regardless of whether or not it has transferred funds under paragraph (e)(7) of this section.

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PART 1357--REQUIREMENTS APPLICABLE TO TITLE IV-B

s 1357.10 Scope and definitions.

Scope.

These regulations apply to State programs for child welfare services and related administrative expenditures under title IV-B.

Definition of Terms.

Child Welfare Services means public social services intended to accomplish the following purposes--

Protect and promote the welfare of all children, including handicapped, homeless, dependent or neglected children;
Prevent, remedy, or assist in the solution of problems which may result in the neglect, abuse, exploitation or delinquency of children;
Prevent the unnecessary separation of children from their families by identifying family problems, assisting families in resolving their problems and preventing the removal of a child from his/her family whenever possible;
Restore to their families children who have been removed, by providing services to the child and family;
Place children in suitable adoptive homes in cases where restoration to the birth family is not possible or appropriate; and
Assure adequate care of children away from their homes, for temporary periods or for extended periods, where the child cannot be returned home or cannot be placed for adoption.

Child Welfare Services Plan (CWSP) means the document developed through joint planning which describes the State agency's total child welfare program, including services, program deficiencies, plans for program improvement, and allocation of resources by type of service.
Joint Planning means State and Federal review and analysis of the State's child welfare services, including analysis of the service needs of children and their families, selection of unmet services needs that will be addressed in a plan for program improvement, and development of measurable goals and objectives that will assure the State's ability to meet these needs. s 1357.20 State Child Welfare Services Plan requirements under Title IV-B.

To be eligible for Federal financial participation payment under title IV- B, a State must have a child welfare services plan, jointly planned and developed by the Secretary or his/her designee, and the State agency designated under paragraph (c)(1) of this section.
Child welfare services will be available on the basis of need for services and shall not be denied on the basis of financial need or legal residence.

The State child welfare services plan shall--

Provide for designation by the Chief Executive Officer of the State, or as otherwise provided by State law, of a State agency that will administer or supervise the administration of the State's child welfare services program;

The State agency designated to administer, or supervise the administration of, the child welfare services program shall be the same agency that administers, or supervises the administration of, the social services program for individuals and families under title XX of the Act.
When the staff of the State or local agency responsible for administering, or supervising the administration of, the child welfare services plan is also responsible for furnishing child welfare services under title IV-B at the State or local level, a single organizational unit within the agency shall be responsible for providing, or supervising the provision of, child welfare services. This unit shall be under the direction of a chief other than the head of the agency and shall--

Furnish directly, or otherwise ensure delivery of, child welfare services under title IV-B; and,
On the State level, develop policy and maintain policy control for all parts of the child welfare services program funded under title IV-B; and
Directly supervise local agency program implementation or otherwise ensure proper program implementation.

If, on December 1, 1974, separate agencies at the State and/or local levels administered the title IV-A and IV-B social services programs, the requirements in paragraphs (i) and (ii) of this section do not apply but only so long as such agency is not the agency administering the State's program under title XX; and
In Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and the Virgin Islands, the plan for the child welfare services program under title IV-B and the plan for services under title IV-A shall be administered or supervised by the same agency. To the extent that child welfare services are furnished by staff of the State or local agency administering the Child Welfare Services Plan, the single organizational unit shall be responsible for providing or supervising the delivery of services under both title IV-A and IV-B.
Provide that the State agency shall ensure coordination of services in accordance with Section 1356.30(d) of this title.
Contain a description of all child welfare services as defined in Section 1357.10 (b) of this title, provided to children and their families in the State, and specify, by political subdivisions, the geographic areas where these services will be available;
Contain a description of the steps the State will take to make progress in--

Extending the services described in paragraph (3) to cover additional political subdivisions, including the basis on which the political subdivisions were chosen; and
Reaching additional children in need of services, including the basis for determining the children to be reached and their services needs.

Contain a description of the State agency child welfare staff development and training plan. This description shall include a summary of--

How the agency's training activities will serve the goals and objectives for improving child welfare services;
The training needs assessment process used to collect the data for the development of the training plan. The needs assessment shall cover the activities which must be performed by supervisors, social workers, paraprofessionals and volunteers; the knowledge and skills required to perform these activities; an assessment of the actual levels of competence of these staff currently providing child welfare services; and the training needs of the staff as determined through this process;
Arrangements for training and use of paid paraprofessional staff, with particular emphasis on full-time or part-time employment of persons of low income as community aides, and for use of non-paid or partially paid volunteers in providing services and in assisting any advisory committees established by the State agency;
Plans for staff recruitment and selection which will increase the number of professionally trained personnel so as to ensure that the tasks and responsibilities of child welfare workers required in the Act are handled with maximum competence; and
The agency's plan for monitoring and evaluating the overall staff development and training program and for ensuring that the training needs are met in all political subdivisions.

Provide that the standards and requirements imposed with respect to child day care under title XX of the Act shall apply to day care services under title IV-B, except with respect to eligibility for services;
Provide for appropriate use of the services, facilities, and experience of voluntary agencies including:

Coordination of State and local arrangements for development and delivery of services to children and their families; and
Emphasis on the use of community agencies and organizations which have established identification and experience with serving the unique needs of major local racial and ethnic populations.

Provide for establishment of Advisory Committees on child welfare services at the State and local levels.

The Committee(s) shall advise the agency's principal policy-setting and administrative officials on policy development, policy setting based on community needs and methods of program administration that facilitate client use of agency services.
The Committee(s) shall include representatives of other State and local agencies concerned with child welfare services; relevant professional, civic, and advocacy organizations; foster and adoptive parent organizations; private citizens interested in service programs; and clients or their representatives. Clients or their representatives shall constitute at least one-third of the membership, and shall to be selected in a manner that ensures opportunity for client participation in the selection process; and
Staff assistance from within the agency and other technical assistance shall be provided as necessary to enable the Committee(s) to function effectively. Funding assistance shall also be provided where necessary to allow client participation in the work of the Committee(s).

Provide for independently conducted audits of the programs and activities, funded in whole or in part under title IV-B of the Act, as described in Section 1356.30(j) of this title.
Reports and Evaluations.

Reports and Evaluations. Each State shall submit such reports containing such information and participate in such evaluations as the Secretary may require. The reports shall be in a form specified by the Secretary or his or her designee. The State agency shall comply with any provisions established by the Secretary needed to assure the correctness and verification of these reports.

Fair Hearings, Appeals and Grievances.

Reports and Evaluations. The provisions of Section 1356.30(g) of this title shall be applicable to programs and activities assisted in whole or in part by Federal financial participation under title IV- B of the Act and these regulations.

Safeguarding Information.

Reports and Evaluations. The provisions of Section 1356.30(f) of this title shall be applicable to programs and activities assisted in whole or in part by Federal financial participation under title IV-B of the Act and these regulations.

Personnel Standards.

Reports and Evaluations. The State agency shall use methods relating to the establishment and maintenance of personnel system on a merit basis in accordance with Federal standards and procedures as the Secretary may require.

General Requirements.

The following DHHS regulations are applicable to programs funded under title IV-B-- 45 CFR Part 16--DHHS Grant Appeals Process.

45 CFR Part 74--Administration of Grants.
45 CFR Part 80--Civil Rights.
45 CFR Part 81--Practice and Procedures for Hearings Under Part 80.
45 CFR Part 84--Non-discrimination on the Basis of Handicap.
45 CFR Part 91--Non-discrimination on the Basis of Age in DHHS Programs and Activities Receiving Federal Financial Assistance (when issued).
45 CFR 1396.53--Restriction on State's share in Claiming FFP.

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s 1357.30 Requirements for State eligibility for additional payments.

For any fiscal year after FY 1979 in which a sum in excess of $141,000,000 is appropriated under Section 420 of the Act, a State shall not be eligible for payment of an amount greater than the amount for which it would be eligible if the appropriation were equal to $141,000,000 unless the following conditions have been met--

The State has conducted an inventory of all children who have been in foster care under the responsibility of the State for a period of six months or more preceding the inventory as described in paragraph (a)(3) of this section.
The State has implemented and is operating--

A Statewide information system as described in paragraph (a)(4) of this section;
A case review system as described in Section 1356.40(d) of this title for all children receiving foster care under the supervision of the State; and
A program of services designed to reunify children with their parents or families or to provide alternative permanent placements through adoption or legal guardianship as described in paragraph (a)(5) of this section.

Inventory.

The inventory shall be a listing of all children who have been in foster care for six months or more, by case number, date of birth, date of initial and current placement, and date of last administrative or judicial review, and for each child listed in the inventory the State agency shall determine--

The appropriateness of and necessity for the current foster care placement;
Whether the child can or should be returned to his parents or freed for adoption; and
The services necessary to facilitate either return to the parents, placement for adoption or legal guardianship for the child.
In making the determinations required in this paragraph the State agency may use information from a case review conducted within the preceding six months, or the determinations may be made at the time of the child's next scheduled case review or earlier, at the option of the State. If the determinations are made independently from the case review, the State agency shall apply the consideration as referred to in subparagraphs (C) and (F) of Section 1356.40(d)(2)(iii) of this title, (Case Review System), to determine--

The appropriateness and necessity of the current foster care placement;
Whether to focus on reunification or adoption; and
The service necessary to attain the placement goals.

The State shall submit to the Secretary (in a form and manner to be prescribed) a report of the data gathered and the manner in which the inventory was conducted. The report shall be submitted no later than seven (7) months after the start of the inventory and shall include--

The total number of children in foster care at the time of the inventory, by age, legal status, race, and sex;
The number of children in foster care six months or more at the time of the inventory, by case plan goal, by age, race, and sex. Case plan goals to be used in the report shall be return to own home, place for adoption, place with legal guardians, independent living, other permanent placement, long term foster care, and other (specify);
The number of children who are free for adoption and the approximate number eligible for adoption assistance under title IV-E.

Information System.

The State agency shall establish a permanent Statewide information system. The system shall make it possible: to determine the locations of all children who have been in foster care during the preceding twelve months; to help ensure progress in moving children into permanent status wherever possible, through return home or through adoption; to document preplacement preventive services; to support proper case management; to provides a source of current data for the reporting, monitoring, evaluation and inventory requirements of the Act; and to provide the State and Federal government with information for planning, policy development, technical assistance and budgeting.

The statewide information system shall be capable of providing data from which the legal status, age, sex, ethnicity/race, family structure, location and goals for placement of every child currently receiving foster care services or who has been in foster care within the preceding twelve months, may readily be determined.
The information system shall, at a minimum, meet the following criteria--

Provide individual and aggregate data on all children receiving services for each political subdivision of the state;
Provide for the use of uniform definitions as the Secretary may require;
Provide for aggregation of data for the State consistent with dates, format and procedures as the Secretary may require; and
With respect to each child, provide that the following information is readily accessible to the State agency:

A unique identifier
Child and family information (identification of child and family: name, ID number, address, age, ethnicity/race, family structure and special needs;
Date case opened (new or reopened);
Legal custody status;
Eligibility status (IV-A, IV-B, IV-E, SSI);
Living arrangement;
Placement history for voluntary and involuntary placement beginning with the date of the current continuous placement (as appropriate), including reasons for removal from home; type of adoptive home (relatives, foster parents, other); adoption subsidy status; date freed for adoption and awaiting placement;
Case plan goals;
Time tables;
Frequency of parental contact with the child and agency over the previous six months;
Services provided;
Source of services provided (public/private agency, direct or purchased);
Dates when reviews and dispositional hearings are due and held; dispositions;
Date of revocation of voluntary placement;
Date and reason for case closure; and
Identifier for local agency, caseworker and supervisor;

Assure compliance with Part 95, Subpart F of this title (HHS approval of systems procurements in excess of $100,000 for which Federal financial participation is requested); and
Assure protection of government rights to systems developed with Federal financial participation, as described in 45 CFR 74.145, Nonrevocable, royalty-free license.
The requirements under paragraph (a)(4)(ii) of this section shall be applicable to all children in foster care on October 1, 1980, or the date upon which the State desires to be found eligible for funds.
The case-specific information described in paragraph (b)(a)(4)(ii)(D) of this section shall be maintained in a manner which will facilitate State annual reporting on Part IV-E eligible children in placement under voluntary agreement beginning in FY 81. This report shall be submitted to the ACYF on the last day of November each year.
States shall report and cooperate with studies as prescribed by the Secretary, on children served in foster care or while remaining at home and on services provided to their parent(s). Forms and instructions will be furnished to the States.
To meet Federal reporting requirements, States shall provide information as the Secretary specifies.
Services Designed To Reunify Families or Achieve Other Permanent Placements.

The program of services designed to help children return to their homes, shall include--

Day care services, homemaker or caretaker services, and family or individual counseling for parent(s) and child available to all children and families in need;
Other services which the State agency identifies as necessary and appropriate to facilitate reunification of children and families such as respite care; parent education; self-help groups; provision of, or arrangements for, mental health, alcohol and drug abuse counseling, and vocational counseling or rehabilitation.
Written guidelines which stress the value of worker involvement with the family of the child early in the placement and the importance of maintaining and strengthening parent-child relationships through frequent and regular visits. The guidelines shall contain principles, policies and procedures which workers must follow--

In determining the appropriate reunification services for each family's situation;
In providing (for at least three months) supportive services following reunification; and
In determining that a child cannot be returned home.

The program of services designed to facilitate adoption or legal guardianship shall include--

Legal services to free children for permanent placement, including voluntary relinquishment, termination of parental rights, or activities required by the State to establish legal guardianship; and
Adoptive services, including recruitment and preparation of adoptive families, registration with adoption exchanges; identification of current foster families as appropriate adoptive parents for children in their care, counseling, and follow-up services to support the placement.
Other activities identified by the agency as necessary and appropriate for permanent placement, such as training families to care for special needs children; training workers to meet legal requirements for court actions; post-adoption services, including parent support groups and other self-help groups; and
Written guidelines which contain principles, policies and procedures which workers shall follow--

In determining the most appropriate plan for the child who cannot return to his or her family, giving first consideration to adoption, followed by alternatives such as legal guardianship, or long-term foster care in exceptional circumstances; and
In determining the appropriate procedures for placement, including preparation for placement, follow-up, and support services as needed for parent(s), legal guardian(s), foster parent(s), and children.

For each child under the care of the State, the case plan as required in Section 1356.40(d) of this title, Case Review System, shall include--

Goals for reunification with families, or a discussion of factors considered in a determination that the child cannot be returned home and goals for alternative permanent placement; and
Documentation of the caseworker's actions in application of the principles, policies, and procedures set forth in the State's guidelines as required in sub-paragraph (a)(5)(i)(C) or (a)(5)(ii)(D) of this section, as appropriate.

A description of the program of services to reunify families or to achieve other permanent placement shall be submitted to the RFD for review and approval.
Determinations as to whether a State agency has met the requirements of paragraph (a) of this section shall be based upon the reports submitted and on-site surveys of implementation and shall be made prior to award of additional payments.
If,for any two consecutive fiscal years after Fiscal Year 1979, there is appropriated under Section 420 of the Act a sum equal to or greater than $266,000,000, a State's allotment amount for any fiscal year after those two consecutive fiscal years shall be reduced to an amount equal to its allotment amount for Fiscal Year 1979 unless the following conditions have been met--

The State agency has completed an inventory of children in foster care and determination of the appropriateness of placement and the report of the type specified in paragraph (a)(3) of this section;
The State agency has implemented and is operating--

A Statewide information system as described in paragraph (a)(4) of this section;
A case review system as described in Section 1356.40(d) of this title for all children receiving foster care under the supervision of the State; and
A program of services designed to reunify children with their parent(s) or families or to provide alternative permanent placement through adoption or legal guardianship as described in paragraph (a)(5) of this section.

The State agency has implemented and is operating a program of pre- placement preventive services, policies and procedures designed to help children remain with their families. The State agency's program of pre- placement preventive services shall be available to all children and families in need and shall include--

Twenty-four hour emergency caretaker, and homemaker services, day care, crisis counseling, individual and family counseling, emergency shelters, procedures and arrangements for access to available emergency financial assistance; and arrangements for the provision of temporary child care to provide respite to the family for a brief period, as part of a plan for preventing children's removal from home;
Other services which the agency identifies as necessary and appropriate such as home-based family services; self-help groups; provision of, or arrangements for, mental health, drug and alcohol abuse counseling, and vocational counseling or vocational rehabilitation;
Written guidelines which workers shall use for assessing the feasibility and appropriateness of services to support and improve family functioning or for determining when a child should be removed from a home and which specify the factors to be considered in making such a decision, including who within the agency shall be involved in the decision.
Written guidelines which specify the circumstances in which prior efforts to prevent placement would not be required, including situations when--

The circumstances in the home present a substantial risk of harm to the child's welfare; or
Preventive services have been offered but were refused by the family.

For each child under the care of the State, there shall be documentation in the case plan of caseworker efforts to prevent removal from home through the application of the principles, policies and procedures set forth in the State's guidelines as specified in paragraph (b)(3)(iii) and a statement as to why such efforts failed to prevent the child's removal or why these efforts were not appropriate.
A description of the program of pre-placement preventive services shall be submitted to the RPD for review and approval.
Determination as to whether a State agency has met the conditions of paragraph (b) of this section shall be based upon the reports submitted and onsite surveys of implementation. (c) Amounts expended by the State for the purposes of complying with the requirements of paragraphs (a) and (b) of this section shall be conclusively presumed to have been expended for child welfare services.

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s 1357.40 Development of the State's Child Welfare Services Plan.

The State Child Welfare Services Plan shall contain the following four components--

Assurances.

The Assurances are the State agency's commitment to meet the basic requirements of the law and the regulation as described in this part.
The Administrator of the State agency shall certify on a pre- printed form that the State child welfare services program meets these requirements. If the State's CWSP does not meet all of the requirements specified in the Assurances, the State shall develop goals for correcting the deficiencies. The goals shall be contained in the Long Range Strategy.

The Long Range Strategy.

The Long Range Strategy shall express in measurable goals and objectives the steps the State will take as described in Section 1357.20(c)(4) to cover additional political subdivisions, reach additional children, and strengthen, extend and otherwise improve the scope and quality of child welfare services.
The Long Range Strategy shall include--

An analysis of the deficiencies in existing services and discrepancies between the services needed and the services provided in the State as described in Section 1357.20(c)(3) and (3);
Goals and objectives for the activities the State will undertake to make progress in child welfare services program development and improved services delivery as described in Section 1357.20(c)(3) during the plan period;
(The description of the State's staff development and training plan as required by Section 1357.20(c)(5).

The State agency shall establish the program period for its Long Range Strategy beginning with either the State, local or Federal government fiscal year and extend for at least two years but not more than three years.
The Long Range Strategy shall be jointly planned and developed with ACYF Regional Office staff.
The Annual Operating Plan. The Annual Operating Plan shall--

Include a report of the State's progress in attaining the goals and objectives in the Long Range Strategy.
Include a summary of child welfare services to be provided by the State and local agencies for the current plan year with estimates of the anticipated child welfare services expenditures and the number of clients, in a form and manner to be prescribed by the Commissioner.
Be jointly planned and developed with the ACYF Regional Office staff.

The Annual Budget Request.

The Annual Budget Request is the State's request for the award of funds allotted under title IV-B which shall be based on the Federal Fiscal Year and signed by the State agency administrator and the director of the single organizational unit.
Funds will be disbursed quarterly on the basis of the Annual Budget Request without submission of additional forms.

Plan Submittal and Review.

(b)(1) The Assurances, the Long Range Strategy, the Annual Operating Plan and the Annual Budget Request of the jointly developed Child Welfare Services Plan shall be submitted to the ACYF Regional Office 30 days before the effective date in the initial year of the plan.
The Assurances shall be submitted only once and upon review and acceptance by the ACYF Regional Program Director, shall remain continuously in effect for the purposes of the Act, unless amended.
In subsequent years, the Annual Operating Plan, the Annual Budget Request and the Long Range Strategy, when appropriate, shall be submitted 30 days before the effective date.
The State Child Welfare Services Plan shall be submitted to the Governor's office or his/her designated agency for review and comment in accordance with the Office of Management and Budget Circular A-95 prior to OHDS/ACYF acceptance.
State plans (new or amendments thereto) shall be submitted to the ACYF Regional Office in the format and within the period set in the implementing instructions.
The ACYF Regional Program Director shall review the State Plan material to determine whether the requirements of Part 1357 of this title are met and that the document accurately represents the agreements reached through the joint planning process. If the requirements are not met or the document does not accurately reflect joint planning, the plan shall be revised through further discussion and negotiation between the State agency and ACYF Regional staff.
If the final plan submitted by the State agency does not meet the requirements of Section 422 (b) of the Act and Part 1357, FFP under title IV-B may be withheld, in whole or in part, after notice and opportunity for a hearing under 45 CFR Part 213.

The title IV-B State plan provisions shall be amended when necessary to reflect new or revised Federal statutes or regulations and court decisions. After acceptance of the original plan, all relevant changes shall be submitted to the ACYF Regional Program Director to determine whether the plan continues to meet federal requirements and policies.
Review of State and Local Administration and Implementation. To provide a basis for determining that State agencies are adhering to federal requirements and to the substantive legal and administrative provisions of the State plan, ACYF will review State and local program administration and implementation. The review shall include analysis of procedures and policies of State and local agencies and examination of case records of individual services recipients and a review of supporting documentation.

FFP may be denied for a specific expenditure(s) not made in accordance with the provisions of the State plan.
A grant may be terminated, in whole or in part, under 45 CFR 74.115 when the State agency has materially failed to comply with the terms of the grant.