Dear Commission Colleagues:

As we discussed at the Executive Director’s meeting in September 2008, Commissions and the Corporation need to ensure unexpended funds do not build up in the formula grants. Attached is the document we distributed last September that describes the process we are using to review Commission expenditure levels and to work with you to ensure full expenditure of the funds or to secure agreement to relinquish funds for which you have no plans.

Your grants officer has reviewed your FSR for the period ending 9/30/08 and in several cases, commissions are above the percentages we established indicating excess unexpended amounts. Grants officers will be calling those states to discuss the reasons for the high levels, determine whether the state has good plans for use of the funding in the coming year, and identify amounts states will relinquish.

We will follow the same process for your FFR for the period ending 3/31/09. Most states are in year 2 of their grants and should have less than 30% showing as unexpended (the unobligated balance of federal funds). To facilitate that process, if your commission is above the threshold (calculate by dividing the Unobligated Balance of Federal Funds [line 10h] by the Total Federal Funds Authorized [line 10d]) when you submit your next FFR, please note the following in the remarks section of the FFR:

1. Do you have plans to use all or some of the unexpended funds in program year 2009-10; and if not,
2. Enter the amount of funds you will relinquish.

Or, if your commission reported $0 in the Unobligated Balance of Federal Funds line (line 10h), please note in the remarks section of the FFR the actual amount of any unexpended funds your programs will have. Additionally, please answer the same two questions above regarding your intentions for these funds.