Temporary Assistance for Needy Families Policy Announcement |
U.S. Department of Health and Human Services Administration for Children and Families Office of Family Assistance Washington, DC 20447 |
No. TANF-ACF-PA-98-1 |
Date: January 7, 1998 |
TO: |
INDIAN TRIBES ADMINISTERING APPROVED TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) PLANS AND OTHER INTERESTED PARTIES |
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SUBJECT: |
Guidance concerning proper use of Tribal TANF grant funds, negotiated indirect cost rates and other provisions in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. |
REFERENCES: |
Title I of Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). Sections 401(a), 409(a)(1), and 412(g)(1) of Title IV-A of the Social Security Act (the Act), as amended by PRWORA. |
PURPOSE: |
We have received inquiries from a number of Tribes operating TANF programs about the proper use of Tribal TANF grant funds and the application of negotiated indirect cost rates to Tribal TANF grant funds. The purpose of this policy announcement is to provide guidance as to what are considered proper uses of Tribal TANF grant funds, how these indirect cost rates may be applied to the Tribal TANF grant, and how the penalty provisions of the Act will be applied for improper application of indirect cost rates to the Tribal TANF grant. |
POLICY: |
TANF funds may only be used for welfare-related services or activities reasonably calculated to accomplish the purposes of Title IV-A of the Act. We consider it a reasonable interpretation of the purposes of the TANF program, as stated at section 401 of the Act, that a substantial majority of Tribal TANF grant funds be available for program assistance and/or services. Furthermore, amounts paid to recipients in the form of cash assistance with TANF block grant funds must be considered as passthrough funds and therefore may not be included in the base amount when a negotiated indirect cost rate is applied to a TANF grant. |
DISCUSSION:
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Administrative expenditures consist of both direct administrative costs and indirect costs. Negotiated indirect cost rates which apply to TANF grant funds are considered to be administrative expenditures and, thus, are not available for program assistance and/or services. |
EFFECTIVE DATE: |
July 1, 1997 |
INQUIRIES: |
ACF Regional Administrators |
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