OFFICE OF COMMUNITY SERVICESDIVISION OF TRIBAL SERVICES
|
|
Temporary Assistance for
Needy Families Program |
U.S. Department of Health and Human Services |
|
Transmittal No. TANF-ACF-PA-99-1 |
Date: September 3, 1999
|
| TO: |
INDIAN TRIBES ADMINISTERING APPROVED TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) PLANS AND OTHER INTERESTED PARTIES |
||||||||
| SUBJECT: | Guidance concerning obligation of Tribal Family Assistance Grant funds over the three-year funding period of a Tribal TANF program. | ||||||||
| REFERENCES: | Title I of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). Sections 404(e) and 412 of Title IV of the Social Security Act (the Act), as amended by PRWORA. | ||||||||
| PURPOSE: | We have received inquiries from a number of Tribes operating TANF programs about the ability of Tribal TANF grantees to carry-over unexpended funds from one budget period to the next. The purpose of this policy announcement is to clarify what limitations exist on the obligation of Tribal Family Assistance Grants (TFAGs) within a three-year funding period. | ||||||||
| POLICY: |
TFAGs may be obligated at any time within the three-year funding period authorized by section 412 of the Act. Obligated funds must be liquidated (expended and drawn down from PMS) no later than the end of the fiscal year succeeding the fiscal year of obligation. Any unobligated funds remaining at the end of the three-year funding period must be returned to the Federal government, except funds obligated in the third year must be liquidated by the end of the succeeding year. Within the three-year funding period, funds which are initially obligated but are not liquidated in the subsequent year are no longer considered to be obligated. Those funds may be "re-obligated" within the three-year funding period. |
||||||||
| DISCUSSION: |
Section 412 of the Act requires Tribal TANF funds to be awarded for three-year funding periods. Consequently, Indian tribes administering TANF programs may obligate TFAG funds at any time during the three-year funding period. Only TFAG funds which are not obligated or liquidated within the time frames described above must be returned to the Federal government. Section 404(e) of the Act permits TANF programs administered by States to reserve State Family Assistance Grant (SFAG) funds for the purpose of providing TANF assistance without any fiscal year limitation. By its terms, this provision of the Act does not apply to TANF programs administered by Tribal entities. TFAG funds may, however, be reserved from one year to another (i.e., one budget period to another) within the three-year funding period consistent with the statute. This policy announcement is intended to permit Tribal TANF programs to maximize their TANF block grants over the three-year funding period. It is consistent with Congressional authorization of Tribal TANF programs, and is a reasonable interpretation of the statute. To further clarify this policy, assume that a TFAG grant is awarded for $500,000. The Tribe can obligate the $500,000 at any time during the three-year funding period. The liquidation period for those funds depends upon when they are obligated by the Tribe, and can best be understood by reviewing the following chart:
If a Tribe obligates $50,000 in Year 1 but fails to liquidate those funds in Year 2, the obligation is no longer valid. The $50,000 is considered to be unobligated, and is available for reobligation in Years 2 or 3.
|
||||||||
| EFFECTIVE DATE: |
Immediately | ||||||||
| INQUIRIES TO: |
ACF Regional Administrators |
|
/s/
|
/s/
|
|
Elizabeth M. James-Duke |
Donald Syke |
--------------------------------------------
1 all funds which remain unobligated at the
end of Year 3 must be returned to the U.S. Treasury.
2 all funds which remain unliquidated at the end of the fiscal year after
Year 3 must be returned to U.S. Treasury.
RETURN TO PROGRAM ANNOUNCEMENTS | RETURN TO DTS HOME
