IM-84-9 5/23/84

ACF Administration for Children and Families	U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Administration for Children, Youth and Families
	1. Log No.: IM-84-9	2. Issuance Date: 5/23/84
	3. Originating Office: Formula Grants Branch, MSD
	4. Key Word: Key Word: FY84 IV-B Funds; Allotments and Reallotments; Transfers from IV-E-FC to IV-B

INFORMATION MEMORANDUM

TO: STATE AGENCIES ADMINISTERING OR SUPERVISING THE ADMINISTRATION OF TITLE IV-B OF THE SOCIAL SECURITY

SUBJECT: FY 1984 ALLOTMENTS FOR TITLE IV-B, AND PROCEDURES FOR APPLYING FOR: (1) A STATE'S SHARE OF FUNDS AVAILABLE UNDER TITLE IV-B IN FY 1984; (2) REALLOTTED IV-B FUNDS; AND (3) FUNDS TO BE TRANSFERRED FROM TITLE IV-E-FOSTER CARE.

LEGAL AND RELATED REFERENCES: SECTIONS 421, 422, 423, 427, 474(c) and 475 OF THE SOCIAL SECURITY ACT and 45 CFR 1355.30, 1356.65, 1356.70, and 1357.30.

CONTENT: This transmittal establishes the procedures for States to follow in order to apply for:

Title IV-B funds available to a State from its share of FY 1984 funds;
Title IV-B FY 1984 funds that will become available for reallotment to other States; and
Transfer of funds not needed for foster care under title IV-E to title IV-B.

The procedures that a State must follow in order to receive title IV-B funds for FY 1984 are the same as those that were in effect in FY 1983. They are again detailed below, with updated amounts of funds.

ACTION REQUIRED:

Funds available to a State from its share of FY 1984 funds.

Under the appropriation for FY 1984, Congress has made available a total of $165M for title IV-B (Child Welfare Services). The allotments showing each State's share of $141M and $165M are listed in Enclosure 1.

States are advised that, under section 428 of the Act and 45 CFR 1357.40, direct grants are made to eligible Indian Tribal Organizations from the allotment of the State in which the ITO or portion of it is located.

In order to receive its share of $141M, a State need only meet the general requirements of the program and submit a properly completed Form CWS-101. In order to receive its share of the additional title IV-B funds (share of $165M), a State must, in addition:
1. Be meeting and continue to meet the requirements of section 427 of the Social Security Act ("the Act");
2. Certify, by August 15, 1984, that it is meeting the requirements of (a), above. States that have certified previously that they are eligible need not re-certify unless they have withdrawn their certification for the previous year. A copy of the form to be used for certification was sent to States as part of ACYF-PI-82-04, issued April 16, 1982.
3. Submit to ACYF by August 15, 1984 a CWS-101 requesting funds up to the State's share of $165M or whatever portion of its share over $141M a State can obligate during FY 1984; and
4. (d) Jointly plan with ACYF Regional staff the use of those funds applied for.
Title IV-B FY 1984 funds that will become available for reallotment to other States.

Some States may not use title IV-B funds allotted to them for FY 1984, either because they do not meet the requirements of section 427 of the Act or because they cannot obligate all of the funds during FY 1984. (Note: Under 45 CFR 74.74, obligations for salaries must be used for services received during the fiscal year in which we award them, unless State purchasing laws permit otherwise or the services are provided under a contract entered into during the fiscal year.)

In order to apply for reallotted FY 1984 title IV-B funds, a State must meet all the same conditions listed under 1(a), (b), (c), and (d), above.

Failure of a State to apply for funds by the required date will be considered equivalent to certification that the funds will not be required by the State during FY 1984, in accordance with 45 CFR 1357.30(g)(2). These funds will then be available for reallotment to other States.
Transfer of fund not needed for foster care under title IV-E to title IV-B.

Under 45 CFR 1356.70, a State may transfer funds not needed for foster care under title IV-E-Foster Care to title IV-B for child welfare services. In FY 1984, as was the case in FY 1983, there are no mandatory allotment limitations on States for foster care under title IV-E. However, for purposes of possible transfer, hypothetical allotments have been calculated on the same basis as if they were mandatory (Enclosure 2). The Act mandates that a State's allotment limitation be the higher amount under paragraph (A) or (B) of section 474(b)(3). (Paragraph (C) does not apply to transfers. Since there is no mandatory allotment limitation, paragraph (C) is irrelevant in FY 1984.) Therefore, Enclosure 2 shows the amount of the hypothetical foster care allotment limitation and indicates only the paragraph ((A) or (B)) which resulted in the greater amount. In order to apply for the transfer, a State must:
1. Submit by August 15, 1984 a Form IV-E-1 (Quarterly Estimate of Expenditures) for the fourth quarter, with all sections applicable to foster care completed;
2. Submit by August 15, 1984 Form IV-E-2's (Quarterly Statements of Expenditures) for the quarters ended December 31, 1983, March 31, 1984 and June 30, 1984;
3. Meet the requirements of the 1(a), (b), and (d), above, regarding section 427 and joint planning; and
4. Submit by August 15, 1984, a separate CWS-101 requesting the funds to be transferred. Transfer funds are further limited in two ways:
  1. Under 45 CFR 1356.70(a)(3), the total funds each State may transfer to title IV-B may not, when added to the funds received under title IV-B directly or by reallotment ((1) and (2) above), exceed the amount the State would have been allotted under title IV-B if $266M had been appropriated and allotted to States (Enclosure 3); and
  2. Funds are limited to the amount made available to the Department by the Congress under the appropriation for FY 1984.

Summary

Only one section 427 certification need be filed by August 15, 1984 for all types of funds: (1) those directly allotted above the State's share of $141M, (2) those reallotted from funds not used by other States and (3) those transferred from title IV-E-Foster Care. One CWS-101 may be filed for the directly allotted and reallotted funds ((1) and (2)). A separate CWS-101 must be filed for transfer funds (3). However, in all cases, the amounts requested for the quarter, the year and the total expenditures should be cumulative.

States which have not yet requested the full amount of their allotment and wish to do so are strongly encourage to send their revised CWS-101's requesting the increased amounts under their own allotments as soon as possible. Early receipt of such requests would enable all States to receive all funds directly allotted to them at an early date, possibly as a part of their fourth quarter award. States may request a share of reallotted funds on the same CSW-101. Transfer requests must necessarily await the filing of claims for IV-E-Foste Care expenditures for the third quarter of this fiscal year, ended June 30, 1984.

EFFECTIVE DATE: Effective upon issuance.

INQUIRIES: Regional Program Director for Children, Youth and Families

Lucy C. Biggs
Acting Commissioner
Administration for Children, Youth and Families

Attachments

Attachment 1-    Final Apportionment of Title IV-B Funds, FY 1984
Attachment 2-    Hypothetical FY 1984 Foster Care Allotments
Attachment 3-    Title IV-B Hypothetical Allotments at $266M
Attachment 4-    Sample Forms