PI-93-16

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-93-16	2. Issuance Date: December 10, 1993
	3. Originating Office: Children's Bureau
	4. Key Word: Independent Living Program - Permanent Reauthorization

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: Permanent Reauthorization of the Independent Living Program; Instructions for Applying for FY 1994 and Future Year Funds.

LEGAL AND RELATED REFERENCES: Sections 472, 474, 475 and 477 of Title IV-E of the Social Security Act; ACYF-PI-90-16 dated October 2, 1990; and the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66).

BACKGROUND: The Independent Living Program (ILP) was initially authorized by Public Law (P.L.) 99-272, through the addition of section 477 to title IV-E of the Social Security Act (the Act). Since that time, amendments have been made to sections 474, 475 and 477 of the Act to increase the amount of funding, to expand the population eligible for services, and to ensure that the ILP is integrated into the requirements of State child welfare services programs.

The Congress has recognized the exceptional needs of youth age 16 and over who are in foster care, or who have been in foster care, as they exit the child welfare services system and make the difficult transition to independent living. As a result, the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66) permanently reauthorized the ILP effective October 1, 1992.

Despite its authorization under title IV-E, the ILP is not a foster care maintenance program; it provides funds directed towards one goal -- assisting youth who are or were in foster care to become independent adults.

The program concentrates its efforts for a short period of time on youth age 16 and older. As Congress intended, the Department has implemented the program with minimum requirements and specifications. States have the flexibility to design services to meet a wide range of individual needs and circumstances for youth, and to coordinate services with other Federal, State and local agencies engaged in similar activities. States also have some options regarding the youth to be served and the specific services to be provided.

The Administration on Children, Youth and Families (ACYF) supports and encourages State efforts to integrate this program with the existing child welfare services system, to coordinate with other programs and resources, and to include the ILP in the joint planning process for developing and implementing title IV-B State Plans.

PURPOSE: The purposes of this Program Instruction (PI) are to: (1) specify application procedures for States to use in applying for fiscal year (FY) 1994 and future year funds; (2) reiterate the fiscal and program reporting requirements for this program; and (3) encourage States to integrate the ILP into its continuum of child welfare services. In addition, the ACYF urges the States to improve data collection and reporting as the basis for an ongoing assessment of the ILP.

CONTENT: Now that the ILP is a permanent program, States are encouraged to review their administration of the program, consider how the ILP can be included as a part of the continuum of child welfare services, and evaluate their ILP policies and procedures.

INSTRUCTIONS: Availability of Funds: Under section 477(e)(1), each State is allotted a share of the amount appropriated for the ILP 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 1994, the amount appropriated is $70 million. Attachment B provides the FY 1994 ILP allotments for each State and includes both the basic amount (i.e., the State's share of the $45 million for which no matching funds are required) and the additional amount available for State match (i.e., the State's share of the additional amount appropriated.) As appropriations are made for succeeding years, State allocation tables will be issued as Information Memoranda.

States will continue to be entitled to their share of the $45 million with no requirement for matching funds. However, State match (cost sharing) will be required for any State which Independent Living Program - Permanent Reauthorization wishes to receive some or all of its share of the additional amounts.

State funds which are eligible to be used as match for the additional ILP funds must meet the regulatory requirements at 45 CFR Part 92 which establish the rules for cost sharing or matching funds. States should consult the regulations directly for a full and accurate understanding of the requirements. However, to restate in brief the provisions of 45 CFR Part 92, State funds eligible to be used as matching funds, among other things: (1) must not be Federal grant funds, unless specifically allowed by Federal statute; (2) must not be used to match any other Federal grant; and (3) must be used for costs which are otherwise allowable.

Eligible matching contributions may be cash or in-kind contributions of services, equipment, or property; and may originate with a third party.

The State contribution may not be any part of the funds otherwise used by the State to fulfill the requirement of section 477(e)(3) of the Act which stipulates that Federal ILP funds are to ". . . supplement and not replace any other funds which may be available for the same general purposes in the localities involved." In other words, for a State to be entitled to its full basic amount and its full additional amount, the total amount expended by a State must be the sum of: (1) non- Federal funds expended for independent living services prior to Federal funds becoming available in FY 1987, (2) State matching contributions to the additional funds made available for the fiscal year, and (3) the sum of Federal funds provided under the basic allocation and additional funds of the ILP.

The State matching contribution, whatever its nature, must be used for the independent living purposes described in section 477 of the Act. This means, for example, that expenditures for room and board would not be eligible components of the State matching contribution.

As part of the ILP application process, each State must (1) indicate whether or not it will apply for and match any 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 ILP funds; and (4) specify the minimum and maximum amount of reallotted funds the State will apply for and match, if available.

Information regarding State match should be included on Attachment C. The information provided will be considered permanent and will remain in effect unless rescinded by the State, after notification in writing to the Commissioner, Administration on Children, Youth and Families (ACYF). Specific requests for each year's additional and reallotted funds (including State match) must be submitted as part of the annual application update.

The funds awarded for FY 1994 and succeeding years must be obligated and expended (liquidated) by the last day (September 30) of the fiscal year following the fiscal year for which the funds were awarded (section 477(f)). The ILP has a two-year expenditure period and there is no authority to liquidate funds after September 30 of the second fiscal year. This means, for example, that FY 1994 funds must be liquidated by September 30, 1995.

Reallotment of Funds: Some States may not use some or all of the title IV-E ILP funds allotted to them for a particular fiscal year because they do not choose to apply for funds, do not choose to match some or all of the additional amounts available, or because their applications do not meet all the requirements of section 477 of the Act or this Program Instruction. The failure of a State to apply for its share of ILP 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)(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.

Definition of Eligible Participants: All youth age 16 and over for whom foster care maintenance payments are being made under title IV-E are eligible for services under the title IV-E ILP.

The State has the option to provide independent living services to (1) any other youth age 16 and over who are in foster care (non-IV-E eligible) under the responsibility of the State; and (2) all former foster care youth who were in foster care after the age of 16. The State also has the option to provide ILP services to any of the above youth, including title IV-E eligible youth, until the age of 21 (section 477(a)(2)(B) and (C)).

As part of the ILP application process, the State should explicitly indicate which additional youth, if any, the State elects to serve, and must provide information on how this option will be integrated into the State's overall planning and implementation of ILP services. Information regarding the population to be served should be included on Attachment C. The information provided will be considered permanent and will remain in effect unless rescinded by the State, after notification in writing to the Commissioner, ACYF.

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 will be based on a n assessment of his or her needs and which will 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 youth into independent living. Training programs for agency staff may be a critical element. Specialized training and consultation for foster parents and other youth 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, as well as 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 ILP funds may not be used Independent Living Program - Permanent Reauthorization for the provision of room or board (section 477(e)(3)).

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 application form. 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 ILP 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 ILP (see Attachment C).
Description. The State must submit an updated description of:
1. the services and activities that the State plans to carry out with the allotted funds in the fiscal year covered by the application;
2. how the State will build on activities and expenditures from prior fiscal years;
3. the number of youth age 16 or over expected to be in care (include a breakdown of the number of IV-E eligible youth and the number of non-IV-E eligible youth);
4. the number of youth age 16 or over expected to participate in the ILP during the year (include a breakdown of the number of IV-E eligible youth and the number of non-IV-E eligible youth);
5. the number of former foster care youth expected to participate in the ILP during the year;
6. the status of the State agency's current ILP efforts;
7. a summary of problems and barriers to successful ILP implementation; and
8. expected results and outcomes of the ILP for the year covered by the application.
The description should also include the budget for the current fiscal year (e.g., FY 1993) and the projected fiscal year (e.g., FY 1994). The budget for each year should show a breakdown of Federal and State funds (not including foster care maintenance payments) expended for independent living programs, services and activities.
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 independent living 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 section 477 (section 477(f)(1);
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 independent living 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), (section 477(d)(6));
6. where appropriate, for youth age 16 or over, the case plan must include a written description of the programs and services which will help the youth prepare for the transition from foster care to independent living (section 475(1));
7. for youth age 16 or over, the dispositional hearing must address the services needed to assist the youth to make the transition from foster care to independent living (section 475(5));
8. payments to the State will be used for the purpose of conducting activities and providing services to carry out the programs involved directly or under contracts with local governmental entities or private non-profit organizations (section 477 (b));
9. 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
10. grant funds will not be used for the provision of room or board (section 477(e)(3)).
Certifications. The following certifications, which are found at Attachment D, are required to be submitted with the application:
1. 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 statewide assurance to the Department of Health and Human Services;
2. 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
3. Debarment Certification. Pursuant to 45 CFR 76.500, the certification that no principals have been debarred must be submitted with the application.
4. 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 independent living plan, the rules that will govern th use of and disbursement from such funds, and the safeguards that will be employed to ensure that no Federal ILP funds contributed to the trust fund are later used for the provision of room and board.
Information regarding trust funds should be included on Attachment C. The information provided will be considered permanent and will remain in effect unless rescinded by the State, after notification in writing to the Commissioner, ACYF.

Application Submittal. Beginning in FY 1994, ILP applications for FY 1994 and succeeding years will be reviewed and approved in the Administration for Children and Families (ACF) Regional Offices (ROs).

An original and one copy of the application must be submitted by a State to the appropriate Regional Administrator as shown in Attachment E. A copy should also be sent to:

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

The closing date for receipt of all applications is January 31 of the fiscal year for which funds are requested. Applications will be considered if they are either:
1. received on or before the deadline date of January 31 of the fiscal year for which funds are requested, or
2. sent on or before the deadline date of January 31 of the fiscal year for which funds are requested (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.
However, ACYF strongly recommends that States submit their applications as early as possible in the fiscal year prior to the January 31 deadline. Grant awards cannot be made until after the appropriation of funds; however, grant applications will be accepted starting October 1 of the fiscal year for which funds are requested. Early submission of applications will expedite the review, approval and funding process of the applications and provide States with a longer period of time to obligate and expend ILP funds. As soon as the application is approved, States will be allowed to obligate and expend ILP funds retroactive to the beginning of the fiscal year.

Early applications may be based on the expectation of level funding, or on such other anticipated funding level as a State may reasonably expect. In the event that final Congressional action results in a State receiving an allocated amount different from the amount in the State's early application, an amendment to the application may be submitted.

The State must indicate in its application for ILP funds whether the State is State or County administered. County administered States will need to provide information about the precise legal relationship between the State and counties with regard to the ILP and the expenditure of funds (e.g., how does the State enter into agreements with the counties, does the State delegate responsibility to the counties, are there written agreements, are there provisions for such arrangements in State law or in the State plan’). This information is necessary in order to ascertain whether the ILP funds are expended within the required time frame.

Information regarding how the State is administered should be included on Attachment C. The information provided will be considered permanent and will remain in effect unless rescinded by the State, after notification in writing to the Commissioner, ACYF. Fiscal Reports. expenditures under the ILP are to be reported by States on a Standard Form 269 (SF-269), Financial Status Report. To minimize the burden, SF-269s are required on a semi-annual basis, except for the first SF-269 of the two-year expenditure period which will be due at twelve months. Reports will be due 30 days after each reporting period. The final report will be due 90 days after the end of the grant year. The first report covering the period October 1 through September 30 of the first year will be due 30 days after the end of the expenditure period, or October 31. The second report covering the period October 1 through March 31 will be due 30 days after the end of the expenditure period, or April 30. The final report covering the period April 1 through September 30 of the second year will be due 90 days after the end of the expenditure period, or December 31.

FISCAL REPORT SF-269 PERIOD COVERED DUE DATE

lst year rpt. 10/1 thru 9/30 10/31

2nd Yr. semi-annual rpt. 10/1 thru 3/31 4/30

Final report 4/1 thru 9/30 12/31

Funds which are reported as unobligated or unliquidated on final reports will be recovered via a negative grant award. Financial reports are to be mailed concurrently to the appropriate ACF Regional Administrator (Attachment E) and to:

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

Program Reports. Program Reports are due not later than January 1 of the year following the end of the fiscal year for which funds were awarded. For example, the Program Report covering FY 1994 is due not later than January 1, 1995. The Program Report should include information about prior year activities not covered in the State's prior year reports. The Program Report must be submitted by a State to the appropriate Regional Administrator. A copy should also be sent to:

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

In order to provide useful information and accurate data for assessments of the ILP by the Secretary and interested youth-serving agencies, Program Reports should carefully respond to, and define the terms used in providing all of the following information:
1. an accurate description of the ILP 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 in achieving the purposes of the ILP;
2. a statement, if appropriate, explaining how the IV-E ILP 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;
3. a complete record of the purposes for which the funds were spent;
4. a statement regarding the extent to which the funds assisted youth in making the transition from foster care to independent living; and
5. 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, as appropriate.
  
  This information should include:
  1. 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.
  2. 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
  3. 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 by telephone or in writing, if appropriate. If any application appears to be unapprovable, a letter to that effect will be issued by the appropriate Regional Administrator, ACF, and the State will be given a reasonable period of time to provide an approvable application. But if, after the State has been given an opportunity to perfect its application, a Regional Administrator still regards the application as unapprovable, the Regional Administrator will refer the application to the Commissioner, ACYF, for final decision. States are encouraged to integrate the ILP into their continuum of child welfare services and the joint planning process. As a result, subsequent changes to the ILP application based on emerging issues and concerns may become necessary. The ACYF does not intend to limit the flexibility and creativity allowable under the ILP legislation.

Therefore, if a State wishes to make significant changes after the original application submission, the State should submit an Independent Living Application Amendment to the appropriate Regional Administrator, ACF. States should be aware that, under the requirements of 45 CFR Part 92 and OMB Circular A-87 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 Olivia A. Golden Commissioner

Attachments:

Attachment A:   P.L. 103-66, Section 13714 of Subchapter C - Human Resources and Income Security Amendments
Attachment B:   FY 1994 Independent Living Program Allotments
Attachment C:   State Information on the Independent Living Program
Attachment D:   Certifications
Attachment E:   List of Regional Administrators, ACF

FISCAL REPORT SF-269	PERIOD COVERED	DUE DATE
lst year rpt.	10/1 thru 9/30	10/31
2nd Yr. semi-annual rpt.	10/1 thru 3/31	4/30
Final report	4/1 thru 9/30	12/31