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

Carryover and Reallotment Report

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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); OMB approval 0970-0106,
             expires 8/31/98.

             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,
             1998, and to advise grantees that FY 1999 grant
             awards will not be made until the carryover and
             reallotment report for FY 1998 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 and not transferred pursuant to section.

             2604(f).states that:

               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 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
             1998, 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 1998 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 1999 until we have received that
             grantee's carryover and reallotment report for FY
             1998.  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, 1998 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:  Kathleen Moore

ATTACHMENT:  Simplified Timely Instructions for Obligation of 1998
             LIHEAP Funds and Reporting Funds for Carryover and Reallotment

INQUIRIES
TO:          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



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



ATTACHMENT


                     SIMPLIFIED INSTRUCTIONS
            FOR TIMELY OBLIGATION OF 1998 LIHEAP FUNDS
        AND REPORTING FUNDS FOR CARRYOVER AND REALLOTMENT


1.   Add together the funds you received from HHS in FY 1998 in
     the form of LIHEAP block grant awards, any emergency
     contingency funds that may have been awarded, and any oil
     overcharge funds designated for use in LIHEAP for FY 1998.
     You may carry over up to 10% of this total for obligation in
     FY 1999.

2.   At least 90% of the total funds available to you in FY 1998,
     as calculated in Paragraph #1, must be obligated by you for
     use in LIHEAP no later than September 30, 1998,(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 1998,
     as calculated in Paragraph #1, may be carried over for
     obligation in FY 1999.  These carryover funds must be
     obligated by you for use in LIHEAP no later than September
     30, 1999, or they must be returned to HHS.

4.   FY 1998 funds that are not obligated by you by September 30,
     1998, 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 1999.

5.   Submit a report to HHS on your estimated carryover and
     reallotment by August 1, 1998.  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
     1999 grant awards will not be issued to you until the
     Carryover and Reallotment Report for FY 1998 is received by
     HHS.








OMB No.:  0970-0106                  Expiration Date 8/31/98

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