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SSBG IM 04-2001 Reporting of Funds Transferred from Temporary Assistance to Needy

Published: April 20, 2001
Audience:
Social Services Block Grants (SSBG)
Category:
Guidance, Policies, Procedures, Information Memorandums (IM)

U.S. Department of Health and Human Services
Administration for Children and Families
Office of Community Services
Division of State Assistance
370 L'Enfant Promenade, S.W.
Washington, D.C. 20447

DATE:

April 20, 2001

TO:

Social Services Block Grant (SSBG) State Officials
Social Services Block Grant (SSBG) State Program Contacts

SUBJECT:

Reporting of Funds Transferred from Temporary Assistance to Needy
Families (TANF) to the Social Services Block Grant (SSBG)

The purpose of this memorandum is to clarify for grantees how States should report expenditures of TANF transfer funds on the annual SSBG post-expenditure report.

FUNDS TRANSFERRED TO SSBG FROM TANF

When funds are transferred to SSBG from TANF, and expended during a reporting period, these expenditures must be included with SSBG expenditures on the SSBG post-expenditure report.

As stated in the TANF Final Rule published on April 12, 1999 in the Federal Register (64 FR 17917). All funds transferred to the SSBG program are subject to the statute and regulations of the recipient SSBG program in place for the current fiscal year at the time when the transfer occurs.

The instructions for the completion of the SSBG post-expenditure report form direct that transferred in funds should be reported in Item 30a, Transfers In. However, this is not the only place to report the use of these funds on the form.

Title 45 of the Code of Federal Regulations, Part 96 (45 CFR Part 96) contains the regulations that are applicable to several of the block grant programs in the Department of Health and Human Services, including the Social Services Block Grant (SSBG). Subparts A-F of Part 96 apply to all the HHS block grants. Appendix B to Part 96--SSBG Reporting Form and Instructions) states: 12. Item 30 in the "Total SSBG $" column should contain other expenditures and income as follows: a. "Transfers in" should contain funds transferred from other federal block grants to the SSBG program. A listing of the source(s) of block grant funds and their amounts should appear elsewhere in the annual report.

States should include TANF transfer funds in with SSBG funds when they are reporting SSBG expenditures for each of the service categories. If States have included TANF transfer funds in with SSBG funds, they should also list the amount of SSBG funds included from TANF funds on the Transfers In line.

EXPENDITURES

Subpart G of Part 96 applies to Social Services Block Grant, Appendix B to Part 96 - SSBG Reporting Form and Instructions states: 9. Under "Expenditures--SSBG $" enter the total SSBG funds expended for each service. This column should be totaled, and the sum placed at the bottom of the column in the "totals" box.

Item 30 on the SSBG post-expenditure report form contains other information about funds that were either expended or not expended, but it is not appropriate to add these numbers in the total. Only administrative costs (item 30e) which are an actual category of expenditures, should be added in with the total at the bottom.

INCOME LIMIT FOR USE OF TRANSFERRED FUNDS

There is also another statutory requirement limiting the use of the transferred funds. Section 404(d)(3)(B) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 requires that all (TANF) amounts .that are used to carry out State programs pursuant to title XX shall be used only for programs and services to children or their families whose income is less than 200 percent of the income official poverty line.applicable to a family of the size involved.

EXPENDITURE PERIOD

Funds transferred into SSBG from TANF pursuant to section 404(d)(3)(A) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) shall not be subject to the requirements of TANF (except as required under 404(d)(3)(B)) but are subject to the rules and regulations pertaining to the SSBG program corresponding to the fiscal year when the funds are transferred. The transferred funds and regular SSBG funds granted the State during a fiscal year are subject to the two-year timely filing provisions contained in 45 CFR Part 95.1.

If TANF funds transferred pursuant to section 404(d)(3)(A) remain unliquidated by the end of the two-year expenditure time limit the State may transfer these funds back to TANF if the transfer back to TANF occurs before the end of the two-year expenditure period. The funds transferred back to TANF must be included in the prior year unobligated balances (corresponding to the year the funds were awarded the TANF agency) and expended on TANF assistance.

Please address inquiries to

Marsha Werner
Social Services Block Grant Program Manager
Office of Community Services
U.S. Department of Health and Human Services
370 L'Enfant Promenade, S.W.
Washington, D.C. 20447
Telephone: (202) 401-5281
Fax: (202) 401-5718
Email: mwerner@acf.dhhs.gov

Margaret Washnitzer, DSW
Director
Division of State Assistance
Office of Community Services