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

LIHEAP Carryover and Reallotment Report

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THIS CONTAINS INFORMATION ISSUED BY THE U.S. ADMINISTRATION FOR CHILDREN AND
FAMILIES IN LIHEAP ACTION TRANSMITTAL NO. LIHEAP-AT-97-2, DATED 7/9/97


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

SUBJECT:      Carryover and Reallotment Report

RELATED
REFERENCES:   Section 2607(b) of the Low Income Home Energy 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); and 45 CFR 96.81 as amended 5/1/95 (60 Federal
              Register 21322).

              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, 1997, and the
              limitation in the amount that grantees may carry
              forward, and to advise grantees that FY 1998 grant awards will
              not be made until the carryover and reallotment report for FY
              1997 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:

                 ...(B) 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 and not transferred pursuant to section
              2604(f).  For purposes of the preceding sentence, the amount
              payable to a State but not transferred by the 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. (It should
              be noted that the authority under section 2604(f) of the
              LIHEAP statute to transfer LIHEAP funds to another HHS block
              grant expired at the end of FY 1993.  Beginning in FY 1994, no
              LIHEAP funds may be transferred to another HHS block grant.)

              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 applies to regular LIHEAP block grant
              funds and to energy emergency contingency funds that were
              awarded to grantees on January 15 and January 31, 1997.  It
              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 1997, 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 1997 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 1998 until we have received that grantee's carryover and
              reallotment report for FY 1997.  Because the Carryover and
              Reallotment Report is due August 1, before the end of the
              fiscal year, you may find that your estimates later prove to
              be inaccurate.  If this occurs, please submit a corrected
              report as soon as possible.   Note:  Tribal LIHEAP
              applications are due by September 1.

              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, 1997 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:  Linda Bunn

ATTACHMENT:   Simplified Timely Instructions for Obligation of
              1997 LIHEAP Funds and Reporting Funds for Carryover and
              Reallotment


INQUIRIES
TO:           Janet M. Fox, Director
              Division of Energy Assistance
              Office of Community Services, ACF, HHS
              370 L'Enfant Promenade, S.W.
              Washington, D.C.  20447
              Telephone:  (202) 401-9351
              FAX: (202) 401-5718 or 4687
              (or contact your LIHEAP Regional Liaison)




                      _______________/s________________
                      Janet M. Fox
                      Director
                      Division of Energy Assistance
                      Office of Community Services


                                                       ATTACHMENT


          SIMPLIFIED TIMELY INSTRUCTIONS FOR OBLIGATION OF 1997
     LIHEAP FUNDS AND REPORTING FUNDS FOR CARRYOVER AND REALLOTMENT



1.    Add together the funds you received from HHS in FY 1997 in the form of
      LIHEAP block grant awards and LIHEAP contingency fund awards and any oil
      overcharge funds designated for use in LIHEAP for FY 1997.  You may carry
      over up to 10% of this total for obligation in FY 1998.

2.    At least 90% of the total funds available to you in FY 1997, as
      calculated in Paragraph #1, must be obligated by you for use in LIHEAP no
      later than September 30, 1997 (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 1997, as
      calculated in Paragraph #1, may be carried over for obligation in FY 1998.
      These carryover funds must be obligated by you for use in LIHEAP no later
      than September 30, 1998.

4.    FY 1997 funds that are not obligated by you by September 30, 1997, 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 1998.

5.    Submit a report to HHS on your estimated carryover and reallotment by
      August 1, 1997.  If you later find that your estimates are not accurate,
      submit a corrected report as soon as possible.  FY 1998 grant awards will
      not be issued to you until the Carryover and Reallotment Report for FY 1997
      is received by HHS.

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