Farm Bill FY02 $20M ABAWD E&T Allocation Memo

July 15, 2002

Subject: $20 Million ABAWD E&T Allocation for Fiscal Year 2002

To: Program Directors / All Regions

Attached for immediate release to the 17 affected State agencies are the fiscal year (FY) 2002 additional Federal grant amounts authorized under section 4121 of the Farm Security and Rural Investment Act of 2002 (the Farm Bill) for State agencies that ensure the availability of qualifying education, training, and workfare opportunities for able–bodied adults without dependents (ABAWDs).

The Farm Bill amended the Food Stamp Act of 1977 to authorize $20 million in Federal funds each fiscal year to be allocated among State agencies that make and comply with a commitment, or "pledge," to offer a qualifying education, training, or workfare opportunity to every non–excepted, non–waived, and non–exempted ABAWD applicant and recipient in the last month of the 3–month period of eligibility for ABAWDs who are not working 20 hours a week, participating in qualifying education and training activities at least 20 hours a week, or participating in workfare. In FY 2002, 17 State agencies are operating under the pledge and are eligible for a share of this $20 million ABAWD allotment.

We calculated each pledge State agency’s portion of the $20 million using a two–part formula. We allocated $10 million based on the percentage of each State agency’s filled ABAWD slots in FY 2001 (as reported by them on their FNS–583, E&T Activity Reports) compared to the total number of filled slots reported by all 17 State agencies. We allocated the remaining $10 million based on the percentage of each State Agency’s estimated ABAWD population (using FY 1996 QC survey data adjusted for annual caseload changes) compared to the total number ABAWDs for all 17 State agencies. We believe this formula offers the most equitable way to allocate this additional ABAWD funding.

We have not yet established a method for reporting expenditures from this allocation. However, the funds must be maintained separately from the Stateagencies’ regular FY 2002 Federal E&T grants. The reason for this separation is twofold. First, the funds must be used exclusively to serve ABAWDs. Second, unlike regular "no–year" E&T grant funds (unspent amounts may be carried over into the next fiscal year) these ABAWD grants are "1–year" funds—unspent amounts cannot be carried over into the next fiscal year. Like any other account, these ABAWD funds are subject to the close–out process. We are working together with Financial Management, Accounting Division to develop specific guidance on reporting and close–out procedures. This guidance will be transmitted by September 30, 2002.

If you have any questions, contact Micheal Atwell at 703–305–2449.

/S/  Arthur Foley

Arthur T. Foley
Director
Program Development Division

Attachment  (FY 2002 E&T Allocations to "Pledge" States)

cc:
Financial Management Directors, All Regions
Deputy Administrator, Financial Management
Director Budget Division
Director Accounting Division
Director, Grants Management Division

Last modified: 11/21/2008