ACYF-PI-93-01 Issued 1/15/93

ACF Administration for Children and Families	U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Administration for Children, Youth and Families
	1. Log No.: ACYF-PI-93-01	2. Issuance Date: January 15, 1993
	3. Originating Office: Children's Bureau
	4. Key Word: Independent Living Initiatives

PROGRAM INSTRUCTION

TO: State Agencies Administering or Supervising the Administration of Title IV-E of the Social Security Act; and State Independent Living Coordinators

SUBJECT: Availability of Fiscal Year 1993 funds for the Federal Independent Living Program (ILP)

LEGAL AND RELATED REFERENCES: Sections 472, 474, 475 and 477 of Title IV-E of the Social Security Act; P.L. 102-394; 45 CFR Part 92; ACYF-PI-90-01 issued January 12, 1990; ACYF-PI-90-16 issued October 2, 1990; and ACYF-IM-91-25 issued November 19, 1991

BACKGROUND: The Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law (P.L.) 99-272), through the addition of section 477 to title IV-E of the Social Security Act (the Act), authorized $45 million for fiscal years (FYs) 1987 and 1988 for service programs and activities to assist eligible children 16 and over who were receiving title IV-E foster care maintenance payments to make the transition from foster care to independent living.

Public Law 99-272 also required that, for youth 16 and over, the case plan must include a written description of the independent living programs and services that will be provided.

The Technical and Miscellaneous Revenue Act of 1988 (P.L. 100-647) continued the authorization of the Independent Living Program (ILP) through FY 1989, authorized States to elect to serve non-IV-E eligible foster care youth, provided for Independent Living services up to six months after discharge from foster care, specifically prohibited payments for room and board, and required that dispositional hearings, for youth 16 and over, address the services that youth need to transition from foster care to independent living.

The Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239) continued the ILP authorization for FY 1990 through FY 1992, increased the funding incrementally from $45 million to $70 million, and amended sections 474 and 477 of the Act to provide for State matching of funds (cost sharing) over the $45 million base amount effective in FY 1991.

Section 477 (a)(2)(C) of P.L. 100-647, which previously allowed States to provide Independent Living (IL) services up to six months after discharge from foster care, was amended by P.L. 101-508 to give States the option to provide IL services to youth 16 and over who are in foster care, or who had been in foster care after their 16th birthday up to the age of 21.

The authorization for the Independent Living Program under section 477(a)(1) expired on September 30, 1992. Currently, authorization for the program is based on the Departments of Labor, Health and Human Services and Education, and Related Agencies Appropriations Act, 1993, (Appropriations Act), P.L. 102-394, which appropriated $70 million for the Independent Living Program for FY 1993.

PURPOSE: The purposes of this Program Instruction (PI) are to specify the application procedures for States to use in applying for FY 1993 funds; and to set forth the reporting requirements prescribed for States which receive these funds.

CONTENT: Although section 477(a)(1) of the Social Security Act (the Act), was not reauthorized for FY 1993, Congress, in fact, appropriated funding for the Independent Living Program (ILP) for fiscal year 1993. Accordingly, the Administration on Children, Youth and Families (ACYF) will continue to follow the provisions of section 477 implementing the ILP. In the event a law is passed reauthorizing the ILP which contains provisions that are materially different from those set forth in the former section 477, the Administration on Children, Youth and Families will notify all grant eligible entities of the changes and make any necessary adjustments to grant awards.

Availability of Funds: Under Section 477(e)(1) each State is allotted a share of the amount appropriated for IL equal to the ratio of the State's average monthly number of youth receiving title IV-E foster care maintenance payments in FY 1984 to the average monthly number of youth receiving such payments for all States in FY 1984.

For FY 1993 the amount appropriated is $70 million. States will continue to be entitled to their share of $45 million with no requirement for matching funds. However, cost sharing will be required for any State which wishes to receive some or all of its share of the additional amount.

Program Instruction ACYF-PI-90-16 dated October 20, 1990 (Attachment A) was issued to provide information on the requirement for dollar-for-dollar State match of Federal IL funds over $45 million. ACYF-PI-90-16 also provides instructions on regulatory requirements as well as on other limitations regarding State match.

As part of the IL application process, each State must (1) indicate whether or not it will apply for and match the additional funds over the $45 million basic amount; (2) specify the amount of the funds it will apply for and match, if applicable; (3) indicate whether or not it will accept and match additional funds that may become available through the reallotment of IL funds; and (4) specify the minimum and maximum amount of reallotted funds the State will apply for and match, if available. Matching information which should be included in each State's application is displayed at Attachment B. This information may be provided in the format of the State's choice, or the format provided in Attachment B may be used.

Attachment C provides the FY 1993 IL allotments for each State and includes both the basic amount (the State's share of $45 million) and the additional amount available for State match (the State's share of the additional amount appropriated).

States may not use Federal funds to replace already existing State funds being used for IL activities. Federal funds are to be used to supplement, not replace, current State funds.

If any State does not apply for its share of the title IV-E-IL funds by the due date established in this Program Instruction, or does not submit an acceptable application, that State's allotted funds will be reallotted to other States that have applied, using the same statutory formula for the distribution of funds (Section 477(e)(2)).

Definition of Eligible Participants: Persons eligible for services under the title IV-E-IL program are: (1) youth, age 16 and over, for whom foster care maintenance payments are being made under title IV-E; and (2) at the option of the State, (a) any other youth, age 16 and over, who are in foster-care (non-title IV-E eligible) under the responsibility of the State and (b) former foster care youth who were in foster care after the age of 16. The State also has the option to provide IL services to any of the above youth until the age of 21 (section 477(a)(2)(C).

Programs and Activities: Expenditures must be related to the specific purposes of the ILP. As stated in section 477(d) of the Act, such purposes may include programs to:

enable participants to seek a high school diploma or its equivalent or to take part in appropriate vocational training;
provide training in daily living skills, budgeting, locating and maintaining housing, and career planning;
provide for individual and group counseling;
integrate and coordinate services otherwise available to participants;
provide for the establishment of outreach programs designed to attract individuals eligible to participate in the program;
provide each participant with a written transitional independent living plan which shall be based on an assessment of his or her needs and which shall be incorporated into his or her case plan, as described in section 475(1); and
provide participants with other services and assistance designed to improve their transition to independent living.

States may use varying methods and strategies to achieve the program objectives. They may wish to include an assessment of existing programmatic and systemic barriers to the successful transition of a youth into independent living who is either in foster care or who has left foster care. Training programs for agency staff may be a critical element. Specialized training and consultation for foster parents and other child care providers may assist in the development and improvement of an important link for the youth between dependence and independence.

Other activities under the ILP may include, but are not limited to, the following:

counseling and other similar assistance related to educational and vocational training; preparation for a General Equivalency Diploma (GED); preparation for higher education and academic support; job readiness, job search assistance and placement programs;
counseling and instruction in basic living skills such as money management, home management, consumer skills, parenting, health care; access to community resources, transportation, housing options and location;
individual and group counseling; participation by the youth in workshops and conferences; and interpersonal and social skills training and development;
coordination with other components of the State's ILP such as supervised practice living; establishment of linkages with Federal, State and local agencies and organizations such as the Department of Education, special and vocational education programs and local education agencies, State universities, colleges and community colleges, and Department of Labor, Employment and Training Administration programs;volunteer programs; medical and dental public and private providers; State and community mental health agencies and organizations; and local housing advisors;
establishment of an outreach system which would encourage youth in foster care and youth formerly in foster care to participate in ILPs and the development of community organizational efforts and ongoing support networks, and
involvement of biological parents and, if appropriate, relatives, mentors and foster parents in the development of the youth's independent living skills.

Prohibition: Title IV-E-IL funds may not be used for the provision of room or board for youth receiving IL services.

INSTRUCTIONS: Application Requirements: In order for a State to receive its allotment as set forth under section 477, the State agency must submit an application that meets the requirements of section 477 and this Program Instruction. There is no specified fiscal form or application. The application may be in the format of the State's choice; however, it must be signed by the administrator of the State Title IV-E agency or his or her designee and contain the following descriptions, assurances, and certifications:

Responsible State Agency. A statement that the State agency administering the title IV-E program will administer the Independent Living Program as set forth under section 477 (section 477(b)). A State must include in its application the name and employer identification number (EIN) of the agency which will be administering the Independent Living Program;
Description. An updated description of the services and activities that the State plans to carry out with the allotted funds in the fiscal year covered by the application; how the State will build on activities and expenditures from prior fiscal years; the number of youth age 16 or over expected to be in care (including non-IV-E youth if appropriate), the number of youth age 16 or over expected to participate in the ILP during the year (including non-IV-E and former foster care youth, if appropriate); the status of the State agency's current ILP efforts; a summary of problems and barriers to successful ILP implementation; and expected results and outcomes of the ILP for the year covered by the application.

The description should include a breakdown of Federal and State funds (not including foster care maintenance payments) expended for ILPs, services and activities during the previous Federal fiscal year and a breakdown of Federal and State funds (not including foster care maintenance payments) to be expended for IL programs, services and activities during the Federal fiscal year covered by the State's application (section 477(c));
Assurances. The State must assure that:
1. section 477 ILP funds will supplement and not replace (1) title IV-E foster care funds available for maintenance payments and administrative and training costs and (2) any other State funds which may be available for ILPs, activities and services (section 477(e)(3));
2. the program will be operated in an effective and efficient manner (section 477(c));
3. funds will be used only for the specific purposes described in this Program Instruction;
4. payments made and services provided to participants in the ILP as a direct consequence of their participation in the ILP will not be considered as income or resources for purposes of determining eligibility for aid under the State's title IV-A or title IV-E plan or for determining the level of such aid (section 477(h));
5. each participant will be provided a written transitional IL plan which will be based on an assessment of his or her needs and which will be incorporated into his or her case plan as described in section 475(1);
6. payments to the State will be used for the purpose of conducting activities and providing services to carry out the programs directly or under contracts with local governmental entities or private non-profit organizations (section 477 (b));
7. funds will be administered in compliance with Departmental regulations and policies governing the administration of grants, 45 CFR Parts 92 and 74 and OMB Circulars A-87, A-102, and A-122, including such provisions as Audits (OMB Circulars A-128 and A-133) and Nondiscrimination (45 CFR Part 80); and
8. grant funds will not be used for the provision of room or board,

Certifications. Certain certifications, which are found at Attachment E, are required to be submitted with the application:

Certification Regarding Drug-Free Workplace Requirements. Pursuant to 45 CFR 76.600, the certification must be signed and submitted with the application unless the State has submitted a State-wide assurance to the Department of Health and Human Services;

Anti-Lobbying Certification and Disclosure Form. Pursuant to 45 CFR Part 93, the certification must be signed and submitted with the application. If applicable, a Standard form LLL, which discloses lobbying payments must be submitted; and

Debarment Certification. Pursuant to 45 CFR 76.500, the certification that no principals have been debarred must be submitted with the application.

Options. The State should indicate explicitly in its application (1) whether it elects to provide IL services to youth who are non-IV-E eligible, and (2) whether it elects to provide IL services to youth after foster care and if so, provide information on how this option will be integrated into the State's overall planning and implementation of IL services; and

Trust Funds. If a State chooses to establish trust funds for youth leaving foster care, the State's application must indicate clearly how the trust funds will be financed, how they will be integrated into the overall individual IL plan, the rules that will govern the use of and disbursement from such funds, and the safeguards that will be employed to ensure that no Federal IL funds are used by the State for the provision of room and board.

Application Submittal. A State must submit an original and one copy of the application to:

Administration on Children, Youth and Families (ACYF)
330 C Street, S.W.
Switzer Building, Room 2070
Washington, D.C. 20201
Attn: Children's Bureau
Division of Child Welfare

Concurrently a copy should be sent to the appropriate Regional Administrator. A current listing of the Regional Administrators and their addresses is attached (Attachment D).

The closing date for receipt of all applications for FY 1993 is January 31, 1993. Applications will be considered if they are either:

received on or before the deadline date of January 31, 1993, or

sent on or before the deadline date of January 31, 1993 (as evidenced by a legibly dated U.S. Postal Service postmark or a legibly dated receipt from a commercial carrier or U.S. Postal Service), and received in time for the review and award process.

Reallotment of Funds: Some States may not use the title IV-E-IL funds allotted to them for fiscal year 1993 because they do not choose to apply for funds, do not choose to match any of the additional amounts available or because their applications do not meet all the requirements as set forth under section 477 of the Act or this Program Instruction. The failure of a State to apply for its share of IL funds or to meet application requirements will mean that funds will not be available to the State during that fiscal year. These funds, as well as any of the funds not requested for State matching, will then be available for reallotment to other States under the provisions set forth under section 477 (e) (1) (2).

States which submit incomplete or defective applications will be notified in writing and will be given a reasonable period of time to complete or correct the application.

Fiscal and Reporting Requirements: These funds must be administered in compliance with 45 CFR Part 92, the Department of Health and Human Services' rules on the administration of grant funds awarded to State and local governments. As the funding period for these grants is FY 1993, in accordance with section 92.23(a) all funds must be obligated by the end of the funding period, September 30, 1993. Although States would normally be required to liquidate those funds within 90 days of the end of the funding period, ACYF is exercising its discretion under the regulation to extend the liquidation period to one year. Accordingly, States must liquidate these funds by the end of fiscal year 1994, or September 30, 1994.

Fiscal Reports. Expenditures under the ILP are to be reported by States quarterly on a Standard Form 269 (SF-269), Financial Status Report. Fiscal year 1993 final financial reports (covering the period July 1 through September 30, 1994) are to be submitted no later than December 31, 1994. Funds which are reported as unobligated or unliquidated on final reports will be recovered via a negative award. Financial reports are to be mailed to:

Administration for Children and Families (ACF)
Office of Financial Management
Division of Formula, Entitlement and Block Grants
370 L'Enfant Promenade, S.W.
Washington, D.C. 20447

A copy of the SF-269 is to be sent to the appropriate Regional Administrator.

Program Reports. Program Reports for FY 1993 are due not later than January 1, 1994. The report should include information about prior year activities not covered in the State's prior year reports. Reports are to be mailed to:

Administration on Children, Youth and Families (ACYF)
330 C Street, S.W.
Switzer Building, Room 2070
Washington, D.C. 20201
Attn: Children's Bureau
Division of Child Welfare

A copy of the Program Report must also be sent to the appropriate Regional Administrator. The Report must contain the following information:

an accurate description of the IL activities conducted and the services provided, including: programs modified or newly established and the current status of implementation, e.g., counseling, tutoring, basic living skills; and coordination activities undertaken by the title IV-E agency with other community agencies and the services provided by such agencies as in achieving the purposes of the IL program (section 477(g)(1)(A));

a statement, if appropriate, explaining how the IV-E-IL funded programs have been incorporated into a comprehensive State program of services to this group of youth who are in foster care or were in foster care after the age of 16 and what those services are;

a complete record of the purposes for which the funds were spent (section 477 (g) (1) (A)) ;

a statement regarding the extent to which the funds assisted youth in making the transition from foster care to independent living (section 477(g)(1)(A)); and

appropriate additional information for use by the Secretary in assessing and evaluating the findings and measuring the achievements of the State's IL programs, in developing comprehensive information and data from which decisions can be made with respect to the future of such programs, and providing information and recommendations to the Congress (section 477(g)(2)). This information must include:

a detailed description of the number and specific characteristics of the eligible population as of the beginning of the fiscal year being reported upon and a description of the individuals served during that fiscal year: e.g., age, sex, race/ethnicity, current living arrangement, special needs status, marital and parental status, and duration of foster care.

a statement of the results achieved 90 days after participants completed the program: e.g., number of youth who are employed, have completed a high school or GED program, have or are attending college, have obtained housing and other community services, and are living independently of agency maintenance programs; together with a description of the criteria employed to measure those achievements, and

recommendations for program modifications and other recommendations.

Application Approval and Changes: Approvals of the original applications will be issued in the form of grant award documents.

However, if a Regional Administrator wishes additional information prior to grant award, that information will be requested in writing. If any application appears to be unapprovable, a letter to that effect will be issued by the Commissioner, ACYF, and the State will be given a reasonable period of time to provide an approvable application.

If, after the original application submission, a State wishes to make significant changes in the application submitted for any fiscal year, the State should submit an Independent Living Application Amendment to the appropriate Regional Administrator, Administration for Children and Families (ACF).

States should be aware that, under the requirements of 45 CFR Part 92 and OMB Circular A-87 (Attachment B), any use of Federal IL funds for the purchase of equipment having a unit cost in excess of $5,000 requires prior approval of the granting agency. Requests for approval of any such purchase should be directed to the appropriate Regional Administrator. In the case of a purchase requiring prior approval, the Regional Administrator will reply in writing.

INQUIRIES:	Regional Administrators, ACF
	Regions I-X
or	Irene Hammond
	Children's Bureau, ACYF Division of Child Welfare Policy, Review and Operations Branch (202) 205-8666
	Wade F. Horn, Ph.D. Commissioner

ATTACHMENTS:

Attachment A:   ACYF-PI-90-16 (with partial attachments)
Attachment B:   State Matching Information    (Note: This attachment is not available in electronic format.)
Attachment C:   FY 1993 Independent Living Program Allotments
Attachment D:   List of Regional Administrators, Administration for Children and Families
Attachment E: Certifications    (Note: This attachment is not available in electronic format.)