Low Income Home Energy Assistance Program
Division of Energy Assistance/OCS/ACF

Carryover and Reallotment Report

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THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR
CHILDREN AND FAMILIES IN LIHEAP INFORMATION MEMORANDUM TRANSMITTAL
NO. LIHEAP-AT-2001-4, DATED 6/01/01

TO:          LOW INCOME HOME ENERGY ASSISTANCE PROGRAM (LIHEAP)
             GRANTEES AND OTHER INTERESTED PARTIES

SUBJECT:     Carryover and Reallotment Report

RELATED      Section 2607(b) of the Low Income Home Energy
REFERENCES:  Assistance Act, Title XXVI of Public Law 97-35, the
             Omnibus Budget Reconciliation Act of 1981, as
             amended; the Augustus F. Hawkins Human Services
             Reauthorization Act of 1990 (Public Law 101-501);
             the Human Services Amendments of 1994 (Public Law
             103-252); 45 CFR 96.81 as amended 5/1/95 (60
             Federal Register 21322);  LIHEAP Action Transmittal
             2000-2, dated November 18, 1999, which transmitted
             the Final Rule amending the Block Grant
             Regulations, as published in the Federal Register
             on October 15, 1999 (64 FR 55843-55858); and OMB
             approval 0970-0106, expires 9/30/2001.

             Section 155 of Public Law 97-377 (Warner
             Amendment); 48 Federal Register 6082, published on
             2/9/83; 51 Federal Register 33808 published on
             9/23/86; and 51 Federal Register 35566, published
             on 10/6/86 (Exxon); 52 Federal Register 26742,
             published on 7/16/87 (Stripper Well).

PURPOSE:     To remind LIHEAP grantees of the required carryover
             and reallotment report due August 1, 2001, and to
             advise grantees that FY 2002 grant awards will not
             be made until the carryover and reallotment report
             for FY 2001 is submitted to HHS.

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

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

             Grantees may request to carry forward from one
             fiscal year to the next up to 10% of the amount
             payable to the grantee for the first fiscal year.
             The funds that are carried over must be obligated
             by the grantee by the end of the fiscal year
             following the year in which they are appropriated.
             For example, at least 90% of the funds allocated to
             you for FY 2001 must be obligated by September 30,
             2001, the end of FY 2001.  Up to 10% may be carried
             over for use in FY 2002, but those funds must be
             obligated no later than September 30, 2002.
             (Please note that this requirement applies to
             obligation only, not expenditure of funds.)

             LIHEAP emergency contingency funds were awarded to
             grantees in September 2000, but were not made
             subject to the 90% obligation requirement for FY
             2000.  Even though you may have obligated these FY
             2000 contingency funds for use in the winter of
             2000/2001, you may not carry them over to FY 2002
             or count them in the base for FY 2001 for purposes
             of calculating the maximum carryover amount.  All
             the contingency funds awarded in FY 2000 must be
             obligated by September 30, 2001.

             If more than 10% of a grantee's funds payable
             remains unobligated at the end of the fiscal year
             for which they were allotted, these excess funds
             must be returned to HHS and are subject to
             reallotment among all grantees in the next fiscal
             year.

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

             For those States and territories that received
             Petroleum Violation Escrow Funds under Public Law
             97-377, Section 15 (Warner Amendment), from the
             Exxon Oil Overcharge case or from the Stripper Well
             settlement agreement for use under LIHEAP in FY
             2001, such funds are to be treated like funds
             appropriated under LIHEAP with respect to section
             2607(b) of Public Law 97-35 and must be reflected
             in the carryover and reallotment report.  If you
             find that unobligated oil overcharge funds will
             cause you to exceed the 10% carryover limit, we
             suggest you talk to your Department of Energy
             support office about de-designating the funds for
             FY 2001 and re-designating them for a future fiscal
             year.  The LIHEAP reporting requirements as they
             relate to the Exxon and Stripper Well settlement
             funds are included in FSA-IM-87-12 issued July 22,
             1987.

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

             Consequently, HHS will not make a grant award to a
             grantee for FY 2002 until we have received that
             grantee's carryover and reallotment report for FY
             2001.  Because the Carryover and Reallotment Report
             is due August 1, before the end of the fiscal year,
             you may find that your estimates later prove to be
             inaccurate.  If this occurs, please submit a
             corrected report as soon as possible.

             Report Requirements

             Our regulations at 45 CFR 96.81 require that the
             carryover and reallotment report be submitted to
             HHS by August 1 of each calendar year and contain:

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

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

             3.  If funds are carried forward, a statement of
             the reasons that these funds will not be used in
             the fiscal year for which they were allotted and a
             description of the types of assistance to be
             provided with the amount held available for the
             following fiscal year.

             The carryover and reallotment report must be made
             in writing, since it will form the basis for
             modification of grant awards.  All grantees must
             submit a report, even if no funds are to be carried
             over or made available for reallotment.  These
             reports must be submitted no later than August 1,
             2001 to:

             Administration for Children and Families
             Office of Community Services
             Division of Energy Assistance
             Aerospace Building - 5th Floor West
             370 L'Enfant Promenade, S.W.
             Washington, D.C.  20447
             Attention:  Rosemary Murray

ATTACHMENT:  Simplified Instructions for Timely Obligation of FY
             2001 LIHEAP Funds and Reporting Funds for Carryover
             and Reallotment

INQUIRIES    Division of Energy Assistance
TO:          Office of Community Services, ACF, HHS
             370 L'Enfant Promenade, S.W.
             Washington, D.C.  20447
             Telephone:  (202) 401-9351
             FAX: (202) 401-5661 or 5718

                              ________________/s___________
                              Janet M. Fox
                              Director
                              Division of Energy Assistance
                              Office of Community


                                                  ATTACHMENT


                     SIMPLIFIED INSTRUCTIONS
           FOR TIMELY OBLIGATION OF 2001 LIHEAP FUNDS
        AND REPORTING FUNDS FOR CARRYOVER AND REALLOTMENT


1.   Add together the funds you received from HHS in FY 2001 in the
     form of LIHEAP block grant awards, any emergency contingency
     funds that may have been awarded in FY 2001, and any oil
     overcharge funds designated for use in LIHEAP for FY 2001.
     (Do not include contingency funds awarded to you in FY 2000,
     even if they were obligated in FY 2001.)  You may carry over
     up to 10% of this total for obligation in FY 2002.

2.   At least 90% of the total funds available to you in FY 2001,
     as calculated in Paragraph #1, must be obligated by you for
     use in LIHEAP no later than September 30, 2001, which is the
     end of FY 2001.  (Please note that this requirement applies
     to obligation only, not expenditure of funds.)

3.   No more than 10% of the funds available to you for FY 2001, as
     calculated in Paragraph #1, may be carried over for
     obligation in FY 2002.  These carryover funds must be
     obligated by you for use in LIHEAP no later than September
     30, 2002, or they must be returned to HHS.

4.   FY 2001 funds that are not obligated by you by September 30,
     2001, and that exceed 10% of the total as calculated in
     Paragraph #1, must be returned to HHS, which will reallocate
     them to LIHEAP grantees in FY 2002.

5.   Submit a report to HHS on your estimated carryover and
     reallotment by August 1, 2001.  Include a brief explanation
     of why you want to carry over the funds and how you will use
     them.  If you later find that your estimates are not
     accurate, submit a corrected report as soon as possible.  FY
     2002 grant awards will not be issued to you until the
     Carryover and Reallotment Report for FY 2001 is received by
     HHS.

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