[Federal Register: April 12, 1999 (Volume 64, Number 69)]
[Rules and Regulations]
[Page 17869-17918]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12ap99-26]
[[pp. 17869-17918]] Temporary Assistance for Needy Families Program (TANF)
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work with States if any problem arises. However, if a State has not
filed a complete and accurate TANF Data Report or Financial Report by
the end of the quarter, we would give the State an opportunity to
dispute our determination that it had failed to file a complete and
accurate report and to provide a ``reasonable cause'' explanation. We
would also take into consideration the extent of the incompleteness or
unreliability of the data. See Sec. 262.5, ``Under what general
circumstances will we determine that a State has reasonable cause?''.
(c) Step three: Penalty liability.
We would provide notice to the chief executive officer of the State
if the State has not met the complete, accurate, and timely reporting
requirements without reasonable cause. We would take this action, for
example, following a pattern of serious omissions, chronic delays,
failure to respond, or disregard of requirements. See Sec. 262.6,
``What if a State does not demonstrate reasonable cause?''. The State
may accept the penalty or enter into a corrective compliance plan.
We do acknowledge, however, that it is inevitable that there will
be occasional missing data elements and nonsystemic reporting errors in
any stage of a data reporting system, regardless of how long the system
has been in operation, whether the State reports universe or sampled
data, or how sophisticated or well-operated the system is. We want to
emphasize that it is not our intent to penalize a State for these kinds
of occasional errors.
Changes Made in the Final Rule
We have made two changes in Sec. 265.7 of the final rule. First, in
paragraph (b)(4)(ii), we have deleted the words ``* * * selected in a
sample that meets the minimum sample size requirements * * *'' and
inserted the words ``* * * meets the specifications and procedures in
the TANF Sampling Manual * * *.'' This language clarifies that a State
must meet the sampling requirements as specified in the TANF Sampling
Manual as a part of the definition of a ``complete and accurate'' data
report, not just the minimum sample size requirements.
Second, we have deleted the word ``its'' from the sentences ``The
reported data accurately reflects information available to the State in
its case-records, financial records, and automated data systems'' in
paragraphs (b)(1), (c)(1), and (d)(1). In deleting this word, we intend
to emphasize and clarify that we hold the State accountable for the
correctness of the data reported to us, not just the data that may be
available at the State-level. Some commenters seemed to believe that
States should not be held accountable for data that originated from
local jurisdictions or from other agencies. Our purpose in making this
change is to convey that, regardless of the source, the State is
responsible for reporting complete and accurate data.
We have made several changes in Sec. 265.8 of the final rule.
First, we have revised the title to better comport with the content of
this section. The new title of Sec. 265.8 is ``Under what conditions
will we take action to impose a reporting penalty for failing to submit
quarterly and annual reports?''
Second, in response to commenters' concerns, we have specified in
paragraph (a) of this section the data that are subject to the penalty.
Third, in paragraph (a)(1), in response to requests for greater
clarity and specificity, we have deleted the words ``on a timely
basis'' and inserted the words of the statute ``within 45 days of the
end of the quarter.'' This responds to commenters who were confused by
what they described as ``two due dates'' for these reports.
Finally, we have made editorial changes in paragraph (a)(3) for
clarity; in paragraph (a)(5) to delete references to the annual program
and performance report (which we have eliminated from part 265) and to
reflect the changes made in the annual report under Sec. 265.9; in
paragraph (d) to clarify that we will not impose the reporting penalty
if the State files the quarterly reports or the annual report by the
end of the quarter that immediately succeeds the fiscal quarter for
which the reports were required; and in paragraph (f) to add a
conditional phrase in relation to the application of the penalty.
We did not agree with commenters who recommended that we:
(1) Delete the definition of ``complete and accurate'' in its
entirety;
(2) Delete the proposed definition of ``complete and accurate'' and
enter into discussions with States to develop standards for complete
and accurate reports;
(3) Apply penalties only for the data elements pertaining to the
work participation rates;
(4) Accept the State's best effort to meet reporting requirements
on a temporary basis and apply no penalty;
(5) Automatically assume all reporting errors are in good faith and
forgive them; and
(6) Waive the penalties when a State is in ``substantial
compliance'' even though not all data elements are reported. (It was
not clear what the commenter meant by ``substantial compliance.''
However, if the missing data elements met the limited conditions for
reasonable cause, as specified in Sec. 262.5, the State may provide a
``reasonable cause'' explanation.)
It is important to reiterate that, as we discussed in the preamble
for Secs. 260.40, 262.5, and 265.5, we have added a reasonable cause
criterion at Sec. 262.5(b)(1) that will provide some penalty relief to
States that cannot report their first two quarters of TANF data on time
due to Y2K compliance activities.
Comment: Several commenters asked for clarification of the penalty
provision. They stated it was unclear in the NPRM whether the penalty
was four percent per year or four percent per quarter.
Response: Our interpretation of section 409(a)(2) is that the
Secretary is to reduce the grant payable to a State by four percent for
each quarter that the State does not submit quarterly reports within 45
days of the end of the quarter. The Secretary is to rescind the penalty
if a State submits the data by the end of the quarter.
However, there are other provisions of law that also are applicable
and that must be applied. Under section 409(c) of the Act, the
Secretary may not impose a penalty until after the State has had an
opportunity to correct its noncompliance. If a State submits a
corrective compliance plan, carries it out, and achieves compliance,
the State is not subject to the penalty. If it submits a corrective
compliance plan and fails to carry it out or fails to achieve
compliance, the Secretary shall assess some or all of the penalty.
Therefore, the State has the opportunity to correct its reporting
problems, and the Secretary has the flexibility to reduce the potential
impact of a penalty, based on progress achieved.
If, for example, a State failed to correct its quarterly reporting
noncompliance for a particular quarter, the Secretary could take into
account the State's reporting compliance in other quarters and make an
appropriate reduction of the penalty. On the other hand, if the State
did not make good faith efforts to comply, the Secretary could impose
the full four percent penalty. We have revised paragraph (f) to reflect
this process.
Secton 265.9--What Information Must the State File Annually?
(Sec. 275.9 of the NPRM)
This section of the NPRM proposed two annual reports: one annual
report as an addendum to the fourth quarter TANF Financial Report (or
Territorial Financial Report) and one annual program and performance
report.
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Paragraphs (a) and (b) of the NPRM proposed the information that
States must submit in the annual addendum. Paragraph (a) proposed four
items of information on the TANF program. Paragraph (b) proposed eight
items of information on separate State programs by cross-reference to
Sec. 273.7. Appendix D of the NPRM also contained the proposed content
of the annual addendum.
Paragraph (c) proposed that States submit an annual program and
performance report containing information on the characteristics and
achievements of each State's TANF program, including unique features
and innovations, for the Secretary's report to Congress.
Summary of Comments on This Section
A number of States and national organizations provided a variety of
both general and specific comments and recommendations on the proposed
annual addendum and the annual program and performance report.
Generally, commenters objected to reporting these data, because, as
some believed, we could find most of the TANF program information in
the State TANF plan, and this constituted a duplicate reporting burden.
Others believed there was no statutory basis for requiring these data,
particularly the data on separate State programs. One national
organization representing State interests supported reporting the
information on separate State programs in paragraph (b) as a substitute
for reporting the disaggregated and aggregated data on separate State
programs in the SSP-MOE Data Report. In addition, one State suggested
that we should gather information on separate State programs not from
States but from other sources, as there ``is a wealth of information on
separate State programs from private and academic studies.''
We have made several changes in this section of the final rule,
primarily in response to comments. We have eliminated the proposed
annual program and performance report in paragraph (c) of the NPRM.
(See the detailed discussion of this provision following our discussion
of the annual reporting requirements as they appear in the final rule.)
We summarize the major changes related to the Annual Report and discuss
these and other recommendations in greater detail below.
(1) We no longer require the annual report to be submitted as an
addendum to the TANF Financial Report, and we dropped the term
``addendum'' to refer to the annual report.
(2) For clarity, we consolidated the annual reporting requirements
in this section. This section now includes all but one of the items of
information on the TANF program proposed in paragraph (a) of the NPRM
and the items of information on the State's MOE program(s) proposed in
paragraph (b) of the NPRM by cross-reference to Sec. 273.7.
(3) We deleted one TANF reporting requirement related to child-only
cases in paragraph (a)(1) of the NPRM.
(4) We moved the proposed requirement for information on TANF child
care disregards from the quarterly TANF Data Report to the Annual
Report. (See comments and responses below for further discussion.)
(5) As discussed elsewhere in the preamble, we added new
requirements in paragraphs (b)(5) and (b)(6) for reporting on State
strategies and procedures for serving victims of domestic violence and
on the nature of nonrecurrent, short term benefits provided under the
State's TANF program.
(6) We added an annual reporting requirement for information on
State displacement procedures in paragraph (b)(7); on State programs
and activities directed at the third and fourth purposes of the TANF
program in paragraph (b)(8); and, if available, ``the number of
individuals who participated in subsidized employment under
Sec. 261.30(b) or (c)'' in paragraph (b) (9).
(7) We revised paragraph (c) to clarify that the annual MOE
reporting requirements apply to all State programs for which MOE
expenditures are claimed, i.e., both those in TANF and in separate
State programs.
(8) We added one data element in paragraph (c)(4) to obtain
information on State expenditures claimed as MOE under these programs.
(See comments and responses below for further discussion.)
(9) We added a new paragraph (d) to specify the two circumstances
when we would not require the re-submission of data in the annual
report.
(10) We added a new paragraph (e) to provide that, if a State makes
a substantive change in certain data elements in paragraphs (b) and
(c), it must file a copy of the changed information with the next
quarterly data report or as an amendment to its State Plan. The State
must also indicate the effective date of the change.
(11) We made editorial changes for clarity.
Comment: Several commenters urged that we not require States to
submit the annual addendum as a part of the fourth quarter Financial
Report. They stated that this provision made the State Comptroller
accountable for program data that were outside his or her financial
expertise. They were also concerned that a program addendum might
interfere with a timely filing of the Financial Report, and thus
subject the State to a penalty.
As an alternative, almost all commenters on this section
recommended that the information in the annual report be included in
the TANF State Plan (if it was not already there) or be submitted as a
free-standing report. They based this recommendation on the
programmatic nature of the information, its similarity to other State
Plan information, and the fact that most of the information was
relatively stable over time. They also recommended that, because it was
relatively stable, we should require that States submit this
information on a one-time only basis and allow States to amend it only
if the information changed, rather than requiring its re-submittal
every year.
Response: We agree with these recommendations. First, we defer to
State concerns about the role and responsibility of the State's
Comptroller or Chief Financial Officer and have specified in paragraph
(a) that a State may submit the annual report either as a free-standing
report or as an addendum to the fourth quarter TANF Data Report.
Second, we have specified in paragraph (d) that if the State has
submitted the information required in paragraphs (b) and (c) in the
State Plan, it may meet the annual reporting requirements by reference
in lieu of re-submission.
Third, in paragraph (d), we further provide that if the information
has not changed since the previous annual report, the State may
reference this information in lieu of re-submission.
We would point out, however, that not all information in the annual
report is relatively stable. At a minimum, for example, States will
need to develop annual information on child care disregards required
under paragraph (b)(4), on the annual total number of families served
for which MOE expenditures are claimed in paragraph (c)(5), and on
State and MOE expenditures in each TANF-MOE and SSP-MOE program in
paragraph (c)(4). The annual report is due at the same time as the
fourth quarter TANF Data Report, i.e., November 15 of each year.
Comment: Several commenters urged that we assure that the
information in the annual report is current. They were concerned that
changes could occur in State definitions of services or program
eligibility--information that was important to them for monitoring
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purposes--that would not be known until the following annual report,
perhaps as much as eleven months later.
Response: We agree and have added new paragraph (e) to this section
to require that, if a State makes a substantive change in certain
information required as a part of its annual report, it must file a
copy of the change with the next quarterly Data Report or as an
amendment to its State Plan. The State must also indicate the effective
date of the change. This requirement is applicable only to the
information in paragraphs (b)(1), (b)(2), (b)(3), (c)(1), (c)(2),
(c)(3), (c)(6), (c)(7), and (c)(8).
Comment: As we discussed in the earlier preamble section entitled,
``Child-only Cases,'' a number of commenters objected to reporting the
information on certain families excluded from the State's definition of
families receiving assistance as proposed in Sec. 275.9(a)(1), i.e.,
the number of cases excluded from the calculations of the overall
participation rate, the two-parent work participation rate, and the
time-limit calculations. They believed we had created a time-consuming,
costly reporting burden ``to prevent something that HHS has no
indication that is actually occurring.'' They also cited a number of
legitimate reasons for child-only cases.
Response: We have deleted this provision. However, we will be
collecting case-record information on families receiving assistance
that will help inform us about the number and nature of child-only
cases, as well as new conversions to child-only cases.
Comment: Commenters strongly objected to four items of
disaggregated data in the NPRM on child care services.
Response: Our explanation in the NPRM was that this was a
requirement of the Child Care and Development Block Grant (CCDBG)
statute and that TANF reporting provided the most cost-effective way to
collect these data.
However, we reviewed the CCDBG statute and determined that this was
not a disaggregated data collection requirement, but an annual
aggregate reporting requirement. Therefore, we have removed these data
elements from the TANF Data Report and have added this reporting
requirement in paragraph (b)(4), to more closely follow the specific
provisions of the CCDBG statute. The information in paragraph (b)(4)
that States will report parallels the annual information that the State
Child Care agency will report in ACF-800, State-level Data Standards,
CCIS Technical Bulletin #1, revised January 23, 1998.
Comment: We received many comments on Sec. 273.7 of the NPRM, ``How
will we determine State expenditures?'' Because we have moved the
annual reporting requirements on State MOE program(s), proposed in
Sec. 273.7 to Sec. 265.9(c) of the final rule, we are addressing these
comments here.
Some commenters generally supported the collection of these data.
Other commenters strongly urged that we require additional data,
particularly on expenditures. Others objected to the proposed data
collection on the grounds that MOE expenditures are a financial
commitment on the part of a State, not a program commitment. They
alleged that the program information we proposed to collect went beyond
the requirements in the statute. Alternatively, they recommended that
only financial information on MOE programs be collected. Still other
commenters objected to the reporting burden of specific provisions in
Sec. 273.7.
Response: In Sec. 273.7 of the NPRM, we proposed that the State
must submit eight items of information on its separate State MOE
program(s). This information included descriptive program information,
a definition of work activities under separate State programs,
eligibility criteria, certain expenditure information, and a
certification that families served under separate State programs met
the State's criteria for ``eligible families.''
The preamble to the NPRM explained that these data, in addition to
the data in the TANF Financial Report, were necessary to our ability to
monitor whether State expenditures met the definition of ``qualified
expenditures.'' In addition, Congress recognized that State
contributions would play an important role in making welfare reform a
success. The NPRM and this final rule reflect widespread public
interest in learning about the ways in which States help move families
toward economic self-support and self-sufficiency. Given this interest,
we intend to publish information on our web site regarding State MOE
programs.
We disagree that the MOE requirements represent only a financial
commitment. We continue to believe that minimal program and expenditure
information on State MOE programs is necessary for assessment and
monitoring purposes.
Comment: Several commenters requested that we clarify whether the
annual reporting requirements on MOE programs apply to only those under
the TANF program, to separate State programs, or to both.
Response: We have revised the language in paragraph (c) to clarify
that the annual reporting requirements in paragraph (c) apply to any
MOE program for which the State claims MOE expenditures.
We also want to clarify that the State must report the information
in paragraph (c) only to the extent that the information is applicable
to expenditures claimed as MOE. For example, the State need not report
on the total number of persons served under an MOE program; only on the
number of persons served for whom MOE expenditures are claimed. We
believe we have made this clear throughout paragraph (c).
Comment: Two commenters provided detailed analysis and
recommendations for additional MOE expenditure data. They believed
that, unless the Department obtained these data, we would not be able
to determine whether States met MOE requirements, including whether
State expenditures claimed for MOE purposes met the ``new spending''
requirement in section 409(a)(7)(B)(II) of the Act. (These provisions
limit countable expenditures for certain State or local programs to
spending above FY 1995 levels.)
They recommended that States be required to report:
(1) Expenditure data on MOE programs under both the TANF program
and separate State programs;
(2) Total State expenditures and total expenditures claimed as MOE
under each program for the current year;
(3) Total 1995 expenditures for all programs in which State
spending is claimed toward the MOE requirement;
(4) 1995 State spending on eligible families; and
(5) 1995 State expenditures used to draw down Federal AFDC-related
matching funds.
Response: We reviewed these recommendations, and we have accepted
two of the recommendations as follows:
(1) As noted above, we have revised paragraph (c) to clarify that
the annual report requirements apply to both MOE programs under TANF
and separate State programs.
(2) We have added a new paragraph (c)(4) to require, for each MOE
program, both the total annual State expenditures and total annual
State expenditures claimed as MOE.
We agree, in part, with the third recommendation. The NPRM proposed
to collect FY 1995 expenditures for each program/activity not
authorized and allowable (under title IV-A) as of August 21, 1996. We
have retained this provision in paragraph (c)(8). We intend that this
provision collect expenditure data on all MOE programs not
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previously authorized and allowable under section 403 of prior law and
have added that language to paragraph (c)(8).
We disagree, however, with the recommendation to collect FY 1995
expenditure data on all FY 1995 programs. FY 1995 data on programs
funded under section 403 are only needed to the extent that the
expenditures in the program are claimed for MOE and the ``new
spending'' requirements apply.
We also did not accept recommendations four and five. For a full
discussion of the issues raised by these recommendations, please refer
to the preamble discussion related to Sec. 263.5.
While not accepting all of these recommendations, we have
significantly strengthened the reporting on MOE programs under this
final rule. The MOE requirements in TANF are central to the success of
welfare reform. Under the final rule, we believe that we will be in a
good position to ensure that States maintain the investments in needy
families that Congress intended.
Comment: One commenter recommended that we allow States to report
either the average monthly number or the total number of persons served
under State MOE program(s), given the variation in how States collect
such information.
Response: We agree and have amended paragraph (c)(5) to reflect
this option. The commenter was also concerned that the numbers reported
would not be an unduplicated count of persons served. We believe that a
requirement for an unduplicated count of persons served for purposes of
this report would be unduly burdensome on States and have chosen not to
require it.
Comment: Several commenters questioned the need for the
certification proposed in Sec. 273.7(b)(8) on the grounds that it was
either unnecessary or inappropriate. The NPRM required a certification
that the families served under MOE programs met the State's criteria
for eligible families.
Response: We disagree that a certification is unnecessary. Under
many Federal programs, it is standard procedure to require such a
certification, particularly for critical program information needed for
accountability and for expenditure data.
We agree, however, that the certification as proposed in paragraph
(b)(8) was not intended to apply to all families served under MOE
programs but only to those families for which the State is claiming MOE
expenditures. We have made this change in paragraph (c)(9) of this
section.
We have also accepted the following suggestions for editorial
clarity recommended by commenters:
<bullet> The description of work activities in paragraph (c)(3)
must be reported only if applicable to a State's MOE programs. (Some
commenters appeared to believe that this reporting requirement meant
that the State must offer work activities as a part of their MOE
programs.)
Please note that paragraph (c)(3) is the only requirement in
Sec. 265.9(c) that applies only to separate State MOE programs. That is
because we ask for a description of the work activities under the MOE
program(s) in TANF in paragraph (b)(1).
<bullet> We deleted paragraph (a) as it appeared in Sec. 273.7 of
the NPRM. Paragraph (a) duplicated the requirement that States submit a
quarterly TANF Financial Report in Sec. 265.3(c).
Specific Comments on the Proposed Annual Program and Performance Report
Under section 411(b) of the Act, the Secretary is required to
submit an annual report to Congress six months after the end of fiscal
year 1997 and every year thereafter. The report is to describe whether
the States are meeting the work participation rates; the objectives of
increasing employment and earnings of needy families as increasing
child support collections and decreasing out-of-wedlock pregnancies and
child poverty; the demographic and financial characteristics of
families applying for assistance, families receiving assistance, and
families that became ineligible to receive assistance; the
characteristics of each State program funded under this part; and the
trends in employment and earnings of needy families with minor children
living at home.
In the NPRM, we proposed that States supplement the information
that we would obtain through the TANF Data Reports and TANF Financial
Reports by providing information in an annual program and performance
report. We would include that information in the Department's annual
report to Congress on the TANF program.
We proposed that States would describe the characteristics and
achievements of each State program; the design and operation of the
program; the services, benefits, and assistance provided; and the
extent to which the State has met its goals and objectives for the
program. We also proposed that States could include additional
materials on unique features of their programs, accomplishments and
innovations they wished to highlight, or other information appropriate
to the report to Congress.
Comment: Without exception, all who commented on this section
strongly objected to this requirement. They alleged that we lacked
statutory authority for the proposed report and inappropriately shifted
the burden of the Secretary's report to States. States also believed
that they were also providing much of this information in State plans
or that we could obtain it by more efficient and less costly means,
e.g., we could conduct national sampling studies in cooperation with
the States.
Response: In preparing the NPRM, we were cognizant of the data that
we would obtain from the TANF Data and Financial Reports, as well as
other sources. We found that State plans varied in the amount of
information they contained, and we did not believe we could rely on
them as a source of information for the annual report to Congress. We
believed that other State and national research and evaluation studies
might provide some, but not all, of the information specified in the
statute.
We have accepted the recommendation to delete this provision. We
will also continue to consider and evaluate multiple sources of data in
preparing the report to Congress; for example, we expect to compile
information on program characteristics from State plans. If we identify
substantive weaknesses in the data we have available through this
approach, we will assess our options. We appreciate the offer from
States to work together to collect this information in the most
efficient way possible.
Additional Reporting Requirements
The discussion above relates to the information now included in the
annual report based on the provisions of the NPRM. Following our review
of comments and consideration of policy issues that arose in the
development of the final rule, we have added five new reporting
requirements in Sec. 265.9. While we dropped our proposal for a
separate annual program and performance report, we still need
information on key aspects of State programs in order to prepare the
annual report to Congress. To the maximum extent possible, we will draw
upon data available through the State plans and other reports submitted
by States.
(1) Family Violence Option
If a State has adopted the Family Violence Option and wants Federal
recognition of its good cause domestic
[[Page 17873]]
violence waivers under subpart B of part 260 of this chapter, the State
must provide: (1) A description of the strategies and procedures in
place to ensure that victims of domestic violence receive appropriate
alternative services, and (2) an aggregate figure for the total number
of good cause waivers granted.
This new reporting requirement in paragraph (b)(5) of this section
will tell us and other interested parties about the activities States
are carrying out to ensure that individuals granted waivers receive
appropriate attention from TANF staff, access to services, and
appropriate consideration of their safety issues. In addition, at
Secs. 260.54, 260.58, and 260.59, we have specified that a State may
receive special penalty consideration under these regulatory provisions
if it submits this information.
(2) Nature of Nonrecurrent, Short-Term Benefits
In paragraph (b)(6) of this section, we are asking States to
provide a description of the nonrecurrent, short-term benefits they are
providing, including:
<bullet> The eligibility criteria for these benefits (together with
any restrictions on the amount, duration, or frequency of payments);
<bullet> Any policies they have instituted that limit such payments
to families eligible for assistance or that have the effect of delaying
or suspending eligibility for assistance; and
<bullet> Any procedures or activities developed under the TANF
program to ensure that individuals diverted from TANF assistance
receive appropriate information about, referrals to, and access to
Medicaid, food stamps, and other programs that provide benefits that
could help them successfully transition to work.
To the extent that a State provides the required information,
either in the State plan or in the annual report, it would not have to
duplicate this information.
As discussed earlier in the preamble, we strongly believe that
effective procedures to ensure that diverted individuals access
Medicaid, food stamps, or other programs are critical to the success of
TANF programs in achieving lasting employment for the families they
serve. In addition, such procedures might help States avoid compliance
and legal problems in other programs. Given the importance of this
issue, the additional information on State practices that we are
requiring in the annual report will be extremely helpful in assuring
the role TANF agencies are playing with individuals receiving diversion
benefits.
For more detailed information, see our discussion on
``Nonrecurrent, short-term benefits'' at Sec. 260.31.
(3) Displacement Procedures
We have added a new reporting requirement in paragraph (b)(7) of
this section. Under this provision, each State must include a
description of the grievance procedures that are in place in the State
to resolve complaints that it receives about displacement.
Each State must create displacement procedures under section 407(f)
of the Act. This provision and the related provision at section
403(a)(5)(J) of the Act (which applies to the WtW program) reflects
longstanding concern among unions, labor groups, and others about the
possibility that welfare recipients being placed at work sites could
displace other workers from their jobs. States are also concerned about
displacement because of its potential negative effect on their labor
force and the long-term success of their TANF programs. Given these
multiple concerns, we believe it is important that we monitor State
activity in this area. For further discussion, see the preamble
discussion on ``Recipient and Workplace Protections.''
(4) Activities Directed at Other Purposes of the Act
It is clear from the statement of findings in section 101 of
PRWORA, the stated TANF goals at Sec. 260.20, the preamble discussions
on allowable uses of Federal and MOE funds, and activities underway
outside the scope of these rules that the TANF legislation recognizes
out-of-wedlock pregnancy prevention and family formation as critical
components of welfare reform; and, subject to some general
restrictions, State may spend Federal TANF and State MOE dollars on
such efforts.
Because of the significance of this issue, in paragraph (b)(8), we
are asking States to include a description of the activities that they
provide under their TANF program to address both these purposes. (We
are also asking States annually to provide a break-out of their
expenditures on these activities in the TANF Financial Report.)
(5) Number of Individuals in Subsidized Employment
Given our more narrow definition of assistance, we will not be
collecting disaggregated information from States on the number of
individuals who have participated in subsidized employment under
Sec. 261.30(b) or (c). In paragraph (b)(9), we are asking States to
estimate this information as an annual aggregate number. We believe
this information is highly relevant to understanding the efforts State
are making to move individuals, particularly hard-to-place individuals,
into employment and accomplishing the second goal of the TANF program.
Section 265.10--When Are Annual Reports Due? (Sec. 275.10 of the NPRM)
This section of the NPRM proposed due dates for the annual addendum
and the annual program and performance report. We received no
substantive comments on this section.
In light of the decision to delete the annual program and
performance report in Sec. 265,9, we have deleted paragraph (b) of this
section as it appeared in the NPRM. We have revised the language of
this section to specify that the annual report is due at the same time
as the fourth quarter TANF Data Report, i e., November 15 of each year.
XI. Regulatory Impact Analyses
A. Executive Order 12866
Executive Order 12866 requires that regulations be drafted to
ensure that they are consistent with the priorities and principles set
forth in the Executive Order. The Department has determined that this
rule is consistent with these priorities and principles. This
rulemaking implements statutory authority based on broad consultation
and coordination. It reflects our response to comments received both on
the burden estimates for the proposed data collection and on the NPRM
that we issued on November 20, 1997.
The Executive Order encourages agencies, as appropriate, to provide
the public with meaningful participation in the regulatory process. As
described elsewhere in the preamble, ACF consulted with State and local
officials and their representative organizations as well as a broad
range of advocacy groups, researchers and others to obtain their views
prior to the publication of the NPRM.
We also considered comments received in response to the NPRM and
had a small number of meetings with major national organizations that
asked for the opportunity to present their comments in person. We
respond to the comments that we received in the Supplementary
Information section of the preamble and in the discussions of
individual regulatory provisions.
To a considerable degree, these rules reflect the comments that we
received in response to the NPRM. They also reflect the intent of
PRWORA to achieve a balance between granting States the flexibility
they need to develop and operate effective and responsive
[[Page 17874]]
programs and ensuring that they meet the objectives of the statute.
Under the new law, State flexibility is achieved by converting the
welfare program into a block grant and limiting Federal rules; ensuring
that program goals are accomplished is achieved through a number of
penalty and bonus provisions and detailed data collection. The limited
scope of this regulation is also consistent with Administration policy,
as articulated in Executive Order 12866 and its Regulatory Reinvention
initiatives. At the same time, we have created a sufficient regulatory
structure to enable enforcement of key statutory requirements.
We support State flexibility in numerous ways--such as by
exercising regulatory restraint; giving States the ability to define
key program terms; and clarifying that States have the ability to
continue their welfare reform demonstrations, serve victims of domestic
violence and noncustodial parents, use State funds to provide
assistance to certain nonqualified immigrants, provide supports to
working families, and operate separate State programs that are not
subject to all the TANF requirements.
We support the achievement of program goals by ensuring that we
capture key information on what is happening under the State TANF
programs and maintaining the integrity of the work and other penalty
provisions. We take care, in provisions such as the MOE penalty
provisions, sanction penalty provisions, and caseload reduction factor
approval process, to protect against negative impacts on needy
families.
One of our key goals in developing the penalty rules was to ensure
State performance in all key areas provided under statute, including
work participation, time limits, State maintenance-of-effort, proper
use of Federal TANF funds, and data reporting. The law specified that
we should enforce State actions in these areas and also specified the
penalty for each failure. Through the ``reasonable cause'' and
``corrective compliance'' provisions in the rules we give some
consideration to special circumstances within a State to help ensure
that neither the State nor needy families within the State will be
unfairly penalized for circumstances beyond their control.
In the work and penalty areas, this rulemaking provides information
to the States that will help them understand our specific expectations
and take the steps necessary to avoid penalties. These rules may
ultimately affect the number and size of penalties that are imposed on
States, but the basic expectations on States are statutory.
The financial impacts of these rules should be minimal because of
the fixed level of funding provided through the block grant. A State's
Federal grant could be affected by the penalty decisions made under the
law and these rules, and State expenditures on needy families could be
affected indirectly by the rules on caseload reduction. (That is, as
the result of caseload reduction, a State might meet the required
participation rates and expend State funds at the 75-percent MOE level
rather than the 80-percent level.) Otherwise, we do not believe that
the rulemaking will affect the overall level of funding or
expenditures. However, it could have minor impacts on the nature and
distribution of such expenditures.
In the area of data collection, the statutory requirements are
specific--especially with respect to case-record or disaggregated data.
These rules also include data reporting with respect to program
expenditures and characteristics and, under certain circumstances,
disaggregated and aggregated case-record information on SSP cases.
These data collection requirements help ensure that States continue to
contribute meaningful amounts of State dollars to programs that assist
needy families, monies go for the intended purposes, and the financial
integrity of the program is maintained.
We have retained SSP-MOE data collection in order to assess the
overall impact of the program and enable us to determine whether the
creation of separate State programs could undermine the objectives of
the Act. However, consistent with some of the programmatic changes we
have made, we have reduced the amount of case-record data we include in
this SSP-MOE data collection and (in changing the definition of
assistance) have narrowed the types of separate State programs for
which States must provide case-record reporting.
The impacts of these rules on needy individuals and families will
depend on the choices that a State makes in implementing the new law.
Our data collection should enable tracking of these effects over time
and across States. Overall, our assessment of these rules indicates
that they represent the least burdensome approach consistent with the
regulatory objectives.
Based on the comments that we received both on the data collection
burden and the NPRM, we reassessed some of our proposed policies. We
have identified an approach to certain issues that is less burdensome
than we initially proposed, but that is still consistent with our
regulatory objectives.
This is a significant regulatory action under section (3)(f)(1) of
Executive Order 12866 and, therefore, these final rules have been
reviewed by the Office of Management and Budget in accordance with that
Order. This rule also has been determined to be a major rule under the
Small Business Regulatory Enforcement Fairness Act of 1996.
We have estimated the annualized Paperwork Reduction Act costs to
be approximately $30 million, as indicated in section D below, and the
penalty costs to be approximately $50 million, beginning in FY 2001, as
reflected in the Administration's budget.
These final rules implement the new welfare reform block grant
program, the Temporary Assistance for Needy Families program. The
legislation and these rules reflect new Federal, State, and Tribal
relationships in the administration of welfare programs; a new focus on
moving recipients into work; and a new emphasis on program information,
measurement, and performance. These rules also strengthen State efforts
to develop creative and diverse responses to help recipients become
self-sufficient; provide recipients with child care, transportation,
and other supportive services they need as they move from welfare to
work; and address the many factors that contribute to poverty and
dependency.
We believe these objectives are reflected in these final rules and
that the benefits to families and children, as well as to States, far
outweigh the costs, as reflected in the preamble sections that address
the substantive provisions of this rule.
In assessing the potential costs and benefits--both quantitative
and qualitative--of these final regulations, the Secretary has
determined that the benefits of these regulations justify the costs.
The Secretary has also determined that this regulatory action does not
unduly interfere with State, local, and Tribal governments in the
exercise of their governmental functions.
B. Regulatory Flexibility Analysis
The Regulatory Flexibility Act (5 U.S.C. Ch. 6) requires the
Federal government to anticipate and reduce the impact of rules and
paperwork requirements on small businesses and other small entities.
Small entities are defined in the Act to include small businesses,
small nonprofit organizations, and small governmental entities. This
rule will affect primarily the 50 States, the District of Columbia,
[[Page 17875]]
and certain Territories. Therefore, the Secretary certifies that this
rule will not have a significant impact on small entities.
C. Assessment of the Impact on Family Well-Being
We certify that we have made an assessment of this rule's impact on
the well-being of families, as required under section 654 of The
Treasury and General Government Appropriations Act of 1999. The purpose
of the TANF program is to strengthen the economic and social stability
of families, in part by supporting the formation and maintenance of
two-parent families and reducing out-of-wedlock child-bearing. As
required by statute, this rule gives flexibility to States to design
programs that can best serve this purpose.
D. Paperwork Reduction Act
This rule contains information collection requirements that have
been submitted to the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1995 (PRA). Under this Act, no persons are
required to respond to a collection of information unless it displays a
valid OMB control number. If you have any comments on these information
collection requirements, please submit them to OMB within 30 days. The
address is: Office of Management and Budget, Paperwork Reduction
Project, 725 17th Street N.W., Washington, D.C. 20503, Attn: ACF/DHHS
Desk Officer. The public will have an opportunity to provide comments
before OMB makes a final decision.
This final rule incorporates our response to comments regarding the
reporting burden that we received in response to the NPRM and the
Paperwork Notice we published November 27, 1997. It requires States to
submit three quarterly reports and one annual report. In addition,
States must provide documentation in support of or related to caseload
reduction credit, the reasonable cause/corrective compliance process,
the Governor's certification on State waiver programs, and the domestic
violence good cause waiver redetermination process.
We are publishing in this issue of the Federal Register the
quarterly data reports and instructions (including the specific data
elements); the quarterly financial report and instructions; and two
reporting forms: the Annual Report on State Maintenance-of-Effort
Programs and instructions (a part of the annual report information
specified in Sec. 265.9(c)) and the Caseload Reduction Report and
instructions. We discussed the burden of the content of the latter two
reporting forms in the NPRM, but we are publishing the report forms
themselves to facilitate compliance.
Quarterly Data and Financial Reports
The three quarterly reports required are the TANF Data Report
(Appendices A through C), the SSP-MOE Data Report (Appendices E through
G), and the TANF Financial Report (Appendix D) (or, as applicable, the
Territorial Financial Report). The TANF Data Report and SSP-MOE Data
Report consist of three sections each. Two of the three sections of
each Data Report contain disaggregated data elements, and one section
of each Data Report contains aggregated data elements.
We need this information collection to meet the requirements of
section 411(a) and to implement other sections of the Act, including
sections 407 (work participation requirements), 409 (penalties), and
413 (annual rankings).
In the final rule, we have significantly reduced the burden on
States of collecting case-record information on current recipients and
closed cases. As discussed in the preamble section regarding part 265,
we accepted many of the commenters' recommendations to reduce or
eliminate burden. For example, we reduced the number of data elements
in each Data Report; clarified that States are not required to track
closed cases but report only data from the month of closure; and
reduced the type of SSP-MOE programs subject to case-record reporting
under the revised definition of assistance. At the same time, we also
modified, revised, or expanded a very few data elements for clarity or
specificity, e.g., adding break-out items on case closure. In deciding
which changes to make, we focused on the statutory requirements and the
importance of the data in informing us about what was happening to
needy families under TANF.
States are required to report MOE expenditure data on the TANF
Financial Report; case-record reporting in the SSP-MOE Data Report is
optional. However, if a State claims MOE expenditures under a separate
State program and wishes to receive a high performance bonus or qualify
for caseload reduction credit, it must file disaggregated and
aggregated information on a separate State program(s) that is similar
to the data reported for the TANF program.
In response to comments and as a consequence of our more narrow
definition of ``assistance,'' we have reduced the number of data
elements in the SSP-MOE Data Report and the number of TANF and separate
State programs that are covered by the SSP-MOE Data Report. (See
Appendices E through G for the data elements.)
The TANF Financial Report consists of one form. (See Appendix D.)
We need this report to meet the requirements of sections 405(c)(2),
411(a)(2), 411(a)(3), and 411(a)(5) and to carry out our other
financial management and oversight responsibilities. These
responsibilities include providing information that could be used in
determining whether States are subject to penalties under section
409(a)(1), 409(a)(3), 409(a)(7), 409(a)(9), or 409(a)(14); tracking
expenditures under our definition of ``assistance''; learning the
extent to which recipients of benefits and services are covered by
program requirements, and helping to validate the disaggregated data we
receive on TANF and SSP cases.
Annual Report
Based on comments, we eliminated the proposed Annual Program and
Performance Report (Sec. 275.9(c) of the NPRM) and the Addendum to the
Fourth Quarter Financial Report (Sec. 275.9(a) and (b) of the NPRM).
However, the content of the proposed Addendum is now contained in and
required to be reported as a part of the Annual Report in Sec. 265.9.
In addition, Sec. 265.9 requires States to report more detailed
information on the State's MOE program(s), strategies to implement the
Family Violence Option, State diversion programs, and other program
characteristics. (We have developed a form for reporting the
information on State MOE programs; see Appendix I.)
Other Information Collection Requirements
There are four other circumstances in this rulemaking that will
create a reporting burden. The first circumstance concerns instances in
which a State wants to qualify for caseload reduction credit. The
second addresses a situation in which a State is subject to a penalty
under section 409 and wishes to avoid the penalty or receive a reduced
penalty. The third is the Governor's certification with respect to
waivers, and the fourth is the domestic violence good cause waiver
redetermination process.
<bullet> If a State elects to request a pro-rata reduction in the
minimum participation rates, based on caseload reduction, Sec. 261.41
requires that it must file certain data. We have developed a form for
States to report these data at Appendix H.
<bullet> If a State wishes to dispute a penalty determination or
wants to be considered for a waiver of a penalty based on ``reasonable
cause'' or
[[Page 17876]]
corrective compliance, Sec. 262.4 requires that the State provide us
with certain information. A State must use a similar process if it is
seeking a reduced penalty for failure to meet the work participation
rates, as discussed at Sec. 261.51.
<bullet> If a State is claiming a waiver inconsistency for work
requirements or time limits, the Governor must provide a certification
(and documentation) to the Secretary on the nature and scope of the
waiver and the inconsistency. See Sec. 260.75.
<bullet> If a State wants recognition of good cause domestic
violence waivers it issues under the Family Violence Option (subpart B
of Sec. 260), it must conduct a redetermination of the need for any
waivers extending beyond six months. (We estimate that 45 States will
conduct between 500 and 600 redeterminations annually. Only a portion
of cases receiving waivers will need redeterminations. We estimate that
each determination and redetermination will take approximately one
hour.)
Changes in the Estimate of Burden
In the NPRM, the respondents for the TANF Financial Report were
listed as the 50 States of the United States and the District of
Columbia. (We proposed that the Territories would report expenditure
data on the Territorial Financial Report.) The respondents for the
remaining reporting requirements, i.e., the TANF Data Report, the SSP-
MOE Data Report, the annual program and performance report, the
Caseload Reduction Credit documentation process, and the Reasonable
Cause/Corrective Compliance documentation process, were listed as the
50 States of the United States, the District of Columbia, Guam, Puerto
Rico, and the United States Virgin Islands. (American Samoa is eligible
for the TANF program and could use funds that it receives under section
1108 to operate the TANF program. However, it did not elect to operate
a TANF program, and we did not include this jurisdiction in our
calculation of State burden.)
In the final rule, we have generally assumed the same number of
respondents for most of the quarterly Data Reports, the quarterly
Financial Report, and the new Annual Report. However, because we
reduced the scope of the SSP-MOE reporting, we also reduced the number
of respondents to the SSP-MOE Data Report from 54 to 17. This is the
current number of States that we believe will have programs that meet
the definition of ``assistance.''
In addition, we have estimated 32 States as possible respondents to
the Governor's certification on waivers because there are 32 States
that currently operate programs under approved waivers.
We have estimated that 45 States will be respondents under the
domestic violence good cause waiver redetermination process because the
majority of States have implemented the Family Violence Option, and
many others are taking the legislative or administrative steps
necessary to implement this provision.
While the statute requires Tribal organizations with TANF programs
to submit some of the same data as States, we have not calculated the
burden for the Tribal organizations in this rule. The reporting burden
of Tribal organizations is addressed in the Tribal Work and TANF NPRM
published July 22, 1998 (63 FR 39366).
Burden Estimates
In estimating the reporting burden in the NPRM, we pointed out that
some of the reporting burden that used to exist in the AFDC program had
disappeared. We also pointed out that most of the data elements
required under the TANF Data Report were similar to previous data
elements required in the AFDC or JOBS program and built upon the data
elements in the Emergency TANF Data Report. However, States alleged
that our assumptions in this area were not totally valid.
In addition, we assumed that most States would collect the data by
means of a review sample. In the NPRM, we used as a starting point the
OMB-inventoried QC burden hours as a standard for estimating the TANF
burden. We also assumed that when a State provided us the information
for their entire caseload, there would be a one-time burden and cost of
developing or modifying its automated system.
These assumptions were based on a belief that the proposed
information was currently being collected and could be extracted from
State automated data systems. State commenters challenged both of these
assumptions and the burden estimates we derived from them. They
asserted that a significant amount of the proposed information was not
available and would require manual collection from TANF recipients. (We
note that 30 States are currently reporting data on their entire
caseload in the quarterly Emergency TANF Data Report.)
We considered these comments and recalculated what the burden
estimate would have been assuming that we had the same number of data
elements and respondents as originally proposed in the NPRM. Based on
these assumptions, the overall burden estimate would have increased
from 241,128 hours (the total burden estimate in the NPRM) to 1,153,944
hours. However, this increase has been offset significantly by the
changes we have made in the final rule, e.g., the decrease in the total
number of data elements and the substantial reduction in the number of
SSP-MOE respondents. These reductions were in large part the result of
our response to comments on the NPRM. The estimated total annual burden
hours have been reduced to 583,912.
The annual burden estimates include any time involved pulling
records from files, abstracting information, returning records to
files, assembling any other material necessary to provide the requested
information, and transmitting the information.
Table A contains our burden estimates for the final rule and
revised estimates for the NPRM. The columns entitled ``Final''
incorporate the estimates of the burden associated with the
requirements in the final rule. These estimates reflect both the
revised assumptions and the overall reductions in burden. The columns
entitled ``NPRM As Revised'' provide revised estimates of the burden
associated with the requirements in the NPRM, i.e., assuming we
retained all the data elements proposed in the NPRM. All numbers have
been rounded where indicated.
A. Recalculated Burden Estimates for the Final Rule
--------------------------------------------------------------------------------------------------------------------------------------------------------
Number of respondents Average burden hours per Total burden hours
-------------------------- response -------------------------
Instrument or requirement Yearly --------------------------
NPRM as Final submittals NPRM as NPRM as Final
revised \1\ revised \1\ Final revised \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
TANF Data Report--Sec. 265.3(b)............................. \2\ 54 \2\ 54 4 3,185 2,183 687,960 471,528
SSP--MOE Data Report--Sec. 265.3(d)......................... \3\ 54 \3\ 17 4 2,041 664 440,856 45,152
TANF Financial Report--Sec. 265.3(c)........................ \4\ 51 \4\ 51 4 12 30 2,448 6,120
[[Page 17877]]
Annual Report--Sec. 265.9(b)-(c)6........................... \5\ NA \2\ 54 1 \5\ NA 128 \5\ NA 6,912
Caseload Reduction Documentation Process--Sec. 261.41 & Sec. \2\ 54 \2\ 54 1 100 160 5,400 8,640
261.44.....................................................
Reasonable Cause/Corrective Compliance Documentation Process-- \1\ 54 \1\ 54 2 160 160 17,280 17,280
Secs. 262.4, 262.6, & 262.7; Sec. 261.51..................
Governor's Waiver Certification Process--Sec. 260.75........ \5\ NA 32 1 \5\ NA 40 \5\ NA 1,280
Domestic Violence Good Cause Waiver Redetermination Process-- \5\ NA 45 600 \5\ NA 1 \5\ NA 27,000
Sec. 260.55................................................
------------------------------------------------------------------------------------------
Estimated Total Annual Burden Hours: \7\............... ........... ........... ........... ........... ........... 1,153,944 583,912
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This column reflects what the burden estimate would have been assuming we retained all data elements proposed in the NPRM.
\2\ The 50 States, the District of Columbia, Guam, Puerto Rico, and the United States Virgin Islands will be respondents.
\3\ We estimate that 17 States will be respondents based on the number of States that currently have SSP-MOE programs.
\4\ The 50 States and the District of Columbia will be respondents.
\5\ Not applicable. These reporting requirements did not appear in the NPRM.
\6\ In the NPRM, the annual report referred to the Annual Program and Performance Report, now eliminated.
\7\ The total burden estimate for the NPRM (using the original assumptions) was 241,128.
Therefore, while the burden estimate would have increased by
approximately 140 percent (based on the provisions in the NPRM), the
actual burden decreased by approximately 50 percent.
We did not consider the burden for the Territorial Financial Report
because it has fewer than ten respondents and, therefore, is not
covered by the PRA. Also, we no longer require an annual addendum to
the fourth quarter TANF Financial Report (the burden for the addendum
was estimated in the NPRM as a part of the financial report). We now
include the content and burden of the Addendum as a part of the Annual
Report requirement.
Finally, in the NPRM, we proposed a caseload reduction process
requiring 40 annual burden hours per respondent. In response to
comments on the caseload reduction process and the revisions we have
made, we increased the estimated annual burden to 160 hours per
respondent and developed a form for reporting this information. (See
Appendix H.)
Cost Estimates
Many commenters expressed the opinion that we had greatly
underestimated the costs associated with significant systems overhaul
and redesign that would require substantial investment in staff and
resources, as well as the costly ongoing operations and reporting
efforts.
We have reconsidered the costs in light of these comments and have
revised our estimates accordingly. Specifically, we have increased the
estimate of the annualized cost of the hour burden from $3,520,469 to
$17,050,230. This figure is based on an estimated average hourly wage
of $29.20 (including fringe benefits, overhead, and general and
administrative costs) for the State staff performing the work
multiplied by 583,912 burden hours. (If we had not reduced the actual
burden by approximately 50 percent, the estimated cost of the hour
burden would have been $33,695,164 ($29.20 times 1,153,944 burden
hours).)
We had originally estimated average annualized capital/start-up and
operational and maintenance costs (CSO&M) to be $2,700,000 across all
States, or $50,000 per respondent. Many States expressed the opinion
that the data collection will require costly systems overhaul and
redesign and that the overall burden should be anywhere from 5 to 20
times our original estimate.
As indicated above, we have made a substantial upward adjustment in
the annualized cost of the hour burden. In addition, we have calculated
a substantial increase of 500 percent in the annualized CSO&M based on
the assertions of the States. Therefore, we have estimated annualized
CSO&M cost to be $13,500,000. When added to the $17,050,230 estimate of
the annualized cost of the hour burden, it yields a total estimated
annualized cost of $30,550,230, or an average of $565,745 per
respondent. Without the actual reduction in burden, the cost would have
been $47,195,164, or an average of $873,985 per respondent.
We considered comments by the public on these collections of
information in:
<bullet> Evaluating whether the collections are necessary for the
proper performance of our functions, including whether the information
will have practical utility;
<bullet> Evaluating the accuracy of our estimate of the burden of
the collections of information, including the validity of the
methodology and assumptions used, and the frequency of collection;
<bullet> Enhancing the quality, usefulness, and clarity of the
information to be collected; and
<bullet> Minimizing the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technology, e.g., the
electronic submission of responses.
E. Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded
Mandates Act) requires that a covered agency prepare a budgetary impact
statement before promulgating a rule that includes any Federal mandate
that may result in the expenditure by State, local, and Tribal
governments, in the aggregate, or by the private sector, of $100
million or more in any one year.
If a covered agency must prepare a budgetary impact statement,
section 205 further requires that it select the most cost-effective and
least burdensome alternative that achieves the objectives of the rule
and is consistent with the statutory requirements. In addition, section
203 requires a plan for informing and advising any small government
that may be significantly or uniquely impacted by the rule.
We have determined that the rules will not result in the
expenditure by State, local, and Tribal governments, in
[[Page 17878]]
the aggregate, or by the private sector, of more than $100 million in
any one year. Accordingly, we have not prepared a budgetary impact
statement, specifically addressed the regulatory alternatives
considered, or prepared a plan for informing and advising any
significantly or uniquely impacted small government.
List of Subjects in 45 CFR Parts 260 Through 265
Administrative practice and procedure, Day care, Employment, Grant
programs--social programs, Loan programs--social programs, Manpower
training programs, Penalties, Public assistance programs, Reporting and
recordkeeping requirements, Vocational education.
(Catalogue of Federal Domestic Assistance Programs: 93.558 TANF
programs--State Family Assistance Grants, Assistance grants to
Territories, Matching grants to Territories, Supplemental Grants for
Population Increases and Contingency Fund; 93.559--Loan Fund;
93.595--Welfare Reform Research, Evaluations and National Studies)
Dated: March 26, 1999.
Olivia A. Golden,
Assistant Secretary for Children and Families.
Approved: March 29, 1999.
Donna E. Shalala,
Secretary, Department of Health and Human Services.
For the reasons set forth in the preamble, we are amending 45 CFR
chapter II by adding parts 260 through 265 to read as follows:
PART 260--GENERAL TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF)
PROVISIONS
Subpart A--What Provisions Generally Apply to the TANF Program?
Sec.
260.10 What does this part cover?
260.20 What is the purpose of the TANF program?
260.30 What definitions apply under the TANF regulations?
260.31 What does the term ``assistance'' mean?
260.32 What does the term ``WtW cash assistance'' mean?
260.33 When are expenditures on State or local tax credits
allowable expenditures for TANF-related purposes?
260.35 What other Federal laws apply to TANF?
260.40 When are these provisions in effect?
Subpart B--What Special Provisions Apply to Victims of Domestic
Violence?
260.50 What is the purpose of this subpart?
260.51 What definitions apply to this subpart?
260.52 What are the basic provisions of the Family Violence Option
(FVO)?
260.54 Do States have flexibility to grant good cause domestic
violence waivers?
260.55 What are the additional requirements for Federal recognition
of good cause domestic violence waivers?
260.58 What penalty relief is available to a State whose failure to
meet the work participation rates is attributable to providing
federally recognized good cause domestic violence waivers?
260.59 What penalty relief is available to a State that failed to
comply with the five-year limit on Federal assistance because it
provided federally recognized good cause domestic violence waivers?
Subpart C--What Special Provisions Apply to States That Were Operating
Programs Under Approved Waivers?
260.70 What is the purpose of this subpart?
260.71 What definitions apply to this subpart?
260.72 What basic requirements must State demonstration components
meet for the purpose of determining if inconsistencies exist with
respect to work requirements or time limits?
260.73 How do existing welfare reform waivers affect the
participation rates and work rules?
260.74 How do existing welfare reform waivers affect the
application of the Federal time-limit provisions?
260.75 If a State is claiming a waiver inconsistency for work
requirements or time limits, what must the Governor certify?
260.76 What special rules apply to States that are continuing
evaluations of their waiver demonstrations?
Authority: 42 U.S.C. 601, 601 note, 603, 604, 606, 607, 608,
609, 610, 611, 619, and 1308.
Subpart A--What Rules Generally Apply to the TANF Program?
Sec. 260.10 What does this part cover?
This part includes regulatory provisions that generally apply to
the Temporary Assistance for Needy Families (TANF) program.
Sec. 260.20 What is the purpose of the TANF program?
The TANF program has the following four purposes:
(a) Provide assistance to needy families so that children may be
cared for in their own homes or in the homes of relatives;
(b) End the dependence of needy parents on government benefits by
promoting job preparation, work, and marriage;
(c) Prevent and reduce the incidence of out-of-wedlock pregnancies
and establish annual numerical goals for preventing and reducing the
incidence of these pregnancies; and
(d) Encourage the formation and maintenance of two-parent families.
Sec. 260.30 What definitions apply under the TANF regulations?
The following definitions apply under parts 260 through 265 of this
chapter:
ACF means the Administration for Children and Families.
Act means Social Security Act, unless otherwise specified.
Adjusted State Family Assistance Grant, or adjusted SFAG, means the
SFAG amount, minus any reductions for Tribal Family Assistance Grants
paid to Tribal grantees on behalf of Indian families residing in the
State and any transfers to the Social Services Block Grant or the Child
Care and Development Block Grant.
Administrative costs has the meaning specified at Sec. 263.0(b) of
this chapter.
Adult means an individual who is not a ``minor child,'' as defined
elsewhere in this section.
AFDC means Aid to Families with Dependent Children.
Aid to Families with Dependent Children means the welfare program
in effect under title IV-A of prior law.
Assistance has the meaning specified at Sec. 260.31.
Basic MOE means the expenditure of State funds that must be made in
order to meet the MOE requirement at section 409(a)(7) of the Act.
Cash assistance, when provided to participants in the Welfare-to-
Work program (WtW), has the meaning specified at Sec. 260.32.
CCDBG means the Child Care and Development Block Grant Act of 1990,
as amended, 42 U.S.C. 9858 et seq.
CCDF means the Child Care and Development Fund, or those child care
programs and services funded either under section 418(a) of the Act or
CCDBG.
Commingled State TANF expenditures means expenditures of State
funds that are made within the TANF program and commingled with Federal
TANF funds.
Contingency fund means Federal TANF funds available under section
403(b) of the Act, and contingency funds means the Federal monies made
available to States under that section. Neither term includes any State
funds expended pursuant to section 403(b).
Contingency fund MOE means the MOE expenditures that a State must
make in order to meet the MOE requirements at sections 403(b)(6) and
409(a)(10) of the Act and subpart B of part 264 of this chapter and
retain contingency funds made available to the State. The only
expenditures that qualify for Contingency Fund MOE are State TANF
expenditures.
Control group is a term relevant to continuation of a ``waiver''
and has the meaning specified at Sec. 260.71.
[[Page 17879]]
Countable State expenditures has the meaning specified at
Sec. 264.0 of this chapter.
Discretionary fund of the CCDF refers to child care funds
appropriated under the CCDBG.
EA means Emergency Assistance.
Eligible State means a State that, during the 27-month period
ending with the close of the first quarter of the fiscal year, has
submitted a TANF plan that we have determined is complete.
Emergency assistance means the program option available to States
under sections 403(a)(5) and 406(e) of prior law to provide short-term
assistance to needy families with children.
Expenditure means any amount of Federal TANF or State MOE funds
that a State expends, spends, pays out, or disburses consistent with
the requirements of parts 260 through 265 of this chapter. It may
include expenditures on the refundable portions of State or local tax
credits, if they are consistent with the provisions at Sec. 260.33. It
does not include any amounts that merely represent avoided costs or
foregone revenue. Avoided costs include such items as contractor
penalty payments for poor performance and purchase price discounts,
rebates, and credits that a State receives. Foregone revenue includes
State tax provisions--such as waivers, deductions, exemptions, or
nonrefundable tax credits--that reduce a State's tax revenue.
Experimental group is a term relevant to continuation of a
``waiver'' and has the meaning specified at Sec. 260.71.
FAG has the meaning specified at Sec. 264.0(b) of this chapter.
Family Violence Option (or FVO) has the meaning specified at
Sec. 260.51.
FAMIS means the automated statewide management information system
under sections 402(a)(30), 402(e), and 403 of prior law.
Federal expenditures means expenditures by a State of Federal TANF
funds.
Federal TANF funds means all funds provided to the State under
section 403 of the Act except WtW funds awarded under section
403(a)(5), including the SFAG, any bonuses, supplemental grants, or
contingency funds.
Federally recognized good cause domestic violence waiver has the
meaning specified at Sec. 260.51.
Fiscal year means the 12-month period beginning on October 1 of the
preceding calendar year and ending on September 30.
FY means fiscal year.
Good cause domestic violence waiver has the meaning specified at
Sec. 260.51.
Governor means the Chief Executive Officer of the State. It thus
includes the Governor of each of the 50 States and the Territories and
the Mayor of the District of Columbia.
IEVS means the Income and Eligibility Verification System operated
pursuant to the provisions in section 1137 of the Act.
Inconsistent is a term relevant to continuation of a ``waiver'' and
has the meaning specified at Sec. 260.71.
Indian, Indian Tribe and Tribal Organization have the meaning given
such terms by section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b), except that the term ``Indian tribe''
means, with respect to the State of Alaska, only the Metlakatla Indian
Community of the Annette Islands Reserve and the following Alaska
Native regional nonprofit corporations:
(1) Arctic Slope Native Association;
(2) Kawerak, Inc.;
(3) Maniilaq Association;
(4) Association of Village Council Presidents;
(5) Tanana Chiefs Council;
(6) Cook Inlet Tribal Council;
(7) Bristol Bay Native Association;
(8) Aleutian and Pribilof Island Association;
(9) Chugachmuit;
(10) Tlingit Haida Central Council;
(11) Kodiak Area Native Association; and
(12) Copper River Native Association.
Individual Development Account, or IDA, has the meaning specified
at Sec. 263.20 of this chapter.
Job Opportunities and Basic Skills Training Program means the
program under title IV-F of prior law to provide education, training
and employment services to welfare recipients.
JOBS means the Job Opportunities and Basic Skills Training Program.
Minor child means an individual who:
(1) Has not attained 18 years of age; or
(2) Has not attained 19 years of age and is a full-time student in
a secondary school (or in the equivalent level of vocational or
technical training).
MOE means maintenance-of-effort.
Needy State is a term that pertains to the provisions on the
Contingency Fund and the penalty for failure to meet participation
rates. It means, for a month, a State where:
(1)(i) The average rate of total unemployment (seasonally adjusted)
for the most recent 3-month period for which data are published for all
States equals or exceeds 6.5 percent; and
(ii) The average rate of total unemployment (seasonally adjusted)
for such 3-month period equals or exceeds 110 percent of the average
rate for either (or both) of the corresponding 3-month periods in the
two preceding calendar years; or
(2) The Secretary of Agriculture has determined that the average
number of individuals participating in the Food Stamp program in the
State has grown at least 10 percent in the most recent 3-month period
for which data are available.
Noncustodial parent means a parent of a minor child receiving
assistance who:
(1) Lives in the State; and
(2) Does not live in the same household as the child.
Prior law means the provisions of title IV-A and IV-F of the Act in
effect as of August 21, 1996. They include provisions related to Aid to
Families with Dependent Children (or AFDC), Emergency Assistance (or
EA), Job Opportunities and Basic Skills Training (or JOBS), and FAMIS.
PRWORA means the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, or Pub. L. 104-193, 42 U.S.C. 1305 note.
Qualified Aliens has the meaning prescribed under section 431 of
PRWORA, as amended, 8 U.S.C. 1641.
Qualified State Expenditures means the total amount of State funds
expended during the fiscal year that count for basic MOE purposes. It
includes expenditures, under any State program, for any of the
following with respect to eligible families:
(1) Cash assistance;
(2) Child care assistance;
(3) Educational activities designed to increase self-sufficiency,
job training, and work, excluding any expenditure for public education
in the State except expenditures involving the provision of services or
assistance of an eligible family that is not generally available to
persons who are not members of an eligible family;
(4) Any other use of funds allowable under subpart A of part 263 of
this chapter; and
(5) Administrative costs in connection with the matters described
in paragraphs (1), (2), (3) and (4) of this definition, but only to the
extent that such costs do not exceed 15 percent of the total amount of
qualified State expenditures for the fiscal year.
Secretary means Secretary of the Department of Health and Human
Services or any other Department official duly authorized to act on the
Secretary's behalf.
Segregated State TANF expenditures means expenditures of State
funds within the TANF program that are not commingled with Federal TANF
funds.
Separate State program, or SSP, means a program operated outside of
[[Page 17880]]
TANF in which the expenditures of State funds may count for basic MOE
purposes.
SFAG means State family assistance grant, as defined in this
section.
SFAG payable means the SFAG amount, reduced, as appropriate, for
any Tribal Family Assistance Grants made on behalf of Indian families
residing in the State and any penalties imposed on a State under this
chapter.
Single audit means an audit or supplementary review conducted under
the authority of the Single Audit Act at 31 U.S.C. chapter 75.
Social Services Block Grant means the social services program
operated under title XX of the Act, pursuant to 42 U.S.C. 1397.
SSBG means the Social Services Block Grant.
State means the 50 States of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, the United States Virgin
Islands, Guam, and American Samoa, unless otherwise specified.
State agency means the agency that the Governor certifies as the
administering and supervising agency for the TANF program, pursuant to
section 402(a)(4) of the Act.
State family assistance grant means the amount of the basic block
grant allocated to each eligible State under the formula at section
403(a)(1) of the Act.
State MOE expenditures means the expenditure of State funds that
may count for purposes of the basic MOE requirements at section
409(a)(7) of the Act and the Contingency Fund MOE requirements at
sections 403(b)(4) and 409(a)(10) of the Act.
State TANF expenditures means the expenditure of State funds within
the TANF program.
TANF means The Temporary Assistance for Needy Families Program.
TANF program means a State program of family assistance operated by
an eligible State under its State TANF plan.
Territories means the Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, and American Samoa.
Title IV-A refers to the title and part of the Act that now
includes TANF, but previously included AFDC and EA. For the purpose of
the TANF program regulations, this term does not include child care
programs authorized and funded under section 418 of the Act, or their
predecessors, unless we specify otherwise.
Tribal family assistance grant means a grant paid to a Tribe that
has an approved Tribal family assistance plan under section 412(a)(1)
of the Act.
Tribal grantee means a Tribe that receives Federal TANF funds to
operate a Tribal TANF program under section 412(a) of the Act.
Tribal TANF program means a TANF program developed by an eligible
Tribe, Tribal organization, or consortium and approved by us under
section 412 of the Act.
Tribe means Indian Tribe or Tribal organization, as defined
elsewhere in this section. The definition may include Tribal consortia
(i.e., groups of federally recognized Tribes or Alaska Native entities
that have banded together in a formal arrangement to develop and
administer a Tribal TANF program).
Victim of domestic violence has the meaning specified at
Sec. 260.51.
Waiver, when used in subpart C of this part, has the meaning
specified at Sec. 260.71.
We (and any other first person plural pronouns) means the Secretary
of Health and Human Services or any of the following individuals or
organizations acting in an official capacity on the Secretary's behalf:
the Assistant Secretary for Children and Families, the Regional
Administrators for Children and Families, the Department of Health and
Human Services, and the Administration for Children and Families.
Welfare-to-Work means the new program for funding work activities
at section 403(a)(5) of the Act.
WtW means Welfare-to-Work.
WtW cash assistance has the meaning specified at Sec. 260.32.
Sec. 260.31 What does the term ``assistance'' mean?
(a)(1) The term ``assistance'' includes cash, payments, vouchers,
and other forms of benefits designed to meet a family's ongoing basic
needs (i.e., for food, clothing, shelter, utilities, household goods,
personal care items, and general incidental expenses).
(2) It includes such benefits even when they are:
(i) Provided in the form of payments by a TANF agency, or other
agency on its behalf, to individual recipients; and
(ii) Conditioned on participation in work experience or community
service (or any other work activity under Sec. 261.30 of this chapter).
(3) Except where excluded under paragraph (b) of this section, it
also includes supportive services such as transportation and child care
provided to families who are not employed.
(b) It excludes:
(1) Nonrecurrent, short-term benefits that:
(i) Are designed to deal with a specific crisis situation or
episode of need;
(ii) Are not intended to meet recurrent or ongoing needs; and
(iii) Will not extend beyond four months.
(2) Work subsidies (i.e., payments to employers or third parties to
help cover the costs of employee wages, benefits, supervision, and
training);
(3) Supportive services such as child care and transportation
provided to families who are employed;
(4) Refundable earned income tax credits;
(5) Contributions to, and distributions from, Individual
Development Accounts;
(6) Services such as counseling, case management, peer support,
child care information and referral, transitional services, job
retention, job advancement, and other employment-related services that
do not provide basic income support; and
(7) Transportation benefits provided under a Job Access or Reverse
Commute project, pursuant to section 404(k) of the Act, to an
individual who is not otherwise receiving assistance.
(c) The definition of the term assistance specified in paragraphs
(a) and (b) of this section:
(1) Does not apply to the use of the term assistance at part 263,
subpart A, or at part 264, subpart B, of this chapter; and
(2) Does not preclude a State from providing other types of
benefits and services in support of the TANF goal at Sec. 260.20(a).
Sec. 260.32 What does the term ``WtW cash assistance'' mean?
(a) For the purpose of Sec. 264.1(b)(1)(iii) of this chapter, WtW
cash assistance only includes benefits that:
(1) Meet the definition of assistance at Sec. 260.31; and
(2) Are directed at basic needs.
(b) Thus, it includes benefits described in paragraphs (a)(1) and
(a)(2) of Sec. 260.31, but excludes benefits described in paragraph
(a)(3) of Sec. 260.31.
(c) It only includes benefits identified in paragraphs (a) and (b)
of this section when they are provided in the form of cash payments,
checks, reimbursements, electronic funds transfers, or any other form
that can legally be converted to currency.
Sec. 260.33 When are expenditures on State or local tax credits
allowable expenditures for TANF-related purposes?
(a) To be an allowable expenditure for TANF-related purposes, any
tax credit program must be reasonably calculated to accomplish one of
the purposes of the TANF program, as specified at Sec. 260.20.
(b)(1) In addition, pursuant to the definition of expenditure at
Sec. 260.30, we
[[Page 17881]]
would only consider the refundable portion of a State or local tax
credit to be an allowable expenditure.
(2) Under a State Earned Income Tax Credit (EITC) program, the
refundable portion that may count as an expenditure is the amount that
exceeds a family's State income tax liability prior to application of
the EITC. (The family's tax liability is the amount owed prior to any
adjustments for credits or payments.) In other words, we would count
only the portion of a State EITC that the State refunds to a family and
that is above the amount of EITC used as credit towards the family's
State income tax liability.
(3) For other refundable (and allowable) State and local tax
credits, such as refundable dependent care credits, the refundable
portion that would count as an expenditure is the amount of the credit
that exceeds the taxpayer's tax liability prior to the application of
the credit. (The taxpayer's liability is the amount owed prior to any
adjustments for credits or payments.) In other words, we would count
only the portion of the credit that the State refunds to the taxpayer
and that is above the amount of the credit applied against the
taxpayer's tax bill.
Sec. 260.35 What other Federal laws apply to TANF?
(a) Under section 408(d) of the Act, the following provisions of
law apply to any program or activity funded with Federal TANF funds:
(1) The Age Discrimination Act of 1975;
(2) Section 504 of the Rehabilitation Act of 1973;
(3) The Americans with Disabilities Act of 1990; and
(4) Title VI of the Civil Rights Act of 1964.
(b) The limitation on Federal regulatory and enforcement authority
at section 417 of the Act does not limit the effect of other Federal
laws, including Federal employment laws (such as the Fair Labor
Standards Act (FLSA), the Occupational Safety and Health Act (OSHA) and
unemployment insurance (UI)) and nondiscrimination laws. These laws
apply to TANF beneficiaries in the same manner as they apply to other
workers.
Sec. 260.40 When are these provisions in effect?
(a) In determining whether a State is subject to a penalty under
parts 261 through 265 of this chapter, we will not apply the regulatory
provisions in parts 260 through 265 of this chapter retroactively. We
will judge State actions that occurred prior to the effective date of
these rules and expenditures of funds received prior to the effective
date only against a reasonable interpretation of the statutory
provisions in title IV-A of the Act.
(b) The effective date of these rules is October 1, 1999.
Subpart B--What Special Provisions Apply to Victims of Domestic
Violence?
Sec. 260.50 What is the purpose of this subpart?
Under section 402(a)(7) of the Act, under its TANF plan, a State
may elect to implement a special program to serve victims of domestic
violence and to waive program requirements for such individuals. This
subpart explains how adoption of these provisions affects the penalty
determinations applicable if a State fails to meet its work
participation rate or comply with the five-year limit on Federal
assistance.
Sec. 260.51 What definitions apply to this subpart?
Family Violence Option (or FVO) means the provision at section
402(a)(7) of the Act under which a State certifies in its State plan if
it has elected the option to implement comprehensive strategies for
identifying and serving victims of domestic violence.
Federally recognized good cause domestic violence waiver means a
good cause domestic violence waiver that meets the requirements at
Secs. 260.52(c) and 260.55.
Good cause domestic violence waiver means a waiver of one or more
program requirements granted by a State to a victim of domestic
violence under the FVO, as described at Sec. 260.52(c).
Victim of domestic violence means an individual who is battered or
subject to extreme cruelty under the definition at section
408(a)(7)(C)(iii) of the Act.
Sec. 260.52 What are the basic provisions of the Family Violence
Option (FVO)?
Section 402(a)(7) of the Act provides that States electing the FVO
certify that they have established and are enforcing standards and
procedures to:
(a) Screen and identify individuals receiving TANF and MOE
assistance with a history of domestic violence, while maintaining the
confidentiality of such individuals;
(b) Refer such individuals to counseling and supportive services;
and
(c) Provide waivers, pursuant to a determination of good cause, of
normal program requirements to such individuals for so long as
necessary in cases where compliance would make it more difficult for
such individuals to escape domestic violence or unfairly penalize those
who are or have been victimized by such violence or who are at risk of
further domestic violence.
Sec. 260.54 Do States have flexibility to grant good cause domestic
violence waivers?
(a) Yes; States have broad flexibility to grant these waivers to
victims of domestic violence. For example, they may determine which
program requirements to waive and decide how long each waiver might be
necessary.
(b) However, if a State wants us to take the waivers that it grants
into account in deciding if it has reasonable cause for failing to meet
its work participation rates or comply with the five-year limit on
Federal assistance, has achieved compliance or made significant
progress towards achieving compliance with such requirements during a
corrective compliance period, or qualifies for a reduction in its work
penalty under Sec. 261.51 of this chapter, the waivers must be
federally recognized good cause domestic violence waivers, within the
meaning of Secs. 260.52(c) and 260.55, and the State must submit the
information specified at Sec. 265.9(b)(5) of this chapter on its
strategies and procedures for serving victims of domestic violence and
the number of waivers granted.
Sec. 260.55 What are the additional requirements for Federal
recognition of good cause domestic violence waivers?
To be federally recognized, good cause domestic violence waivers
must:
(a) Identify the specific program requirements that are being
waived;
(b) Be granted appropriately based on need, as determined by an
individualized assessment by a person trained in domestic violence and
redeterminations no less often than every six months;
(c) Be accompanied by an appropriate services plan that:
(1) Is developed by a person trained in domestic violence;
(2) Reflects the individualized assessment and any revisions
indicated by the redetermination; and
(3) To the extent consistent with Sec. 260.52(c), is designed to
lead to work.
Sec. 260.58 What penalty relief is available to a State whose failure
to meet the work participation rates is attributable to providing
federally recognized good cause domestic violence waivers?
(a)(1) We will determine that a State has reasonable cause if its
failure to meet the work participation rates was attributable to
federally recognized good cause domestic violence waivers granted to
victims of domestic violence.
[[Page 17882]]
(2) To receive reasonable cause under the provisions of
Sec. 262.5(b) of this chapter, the State must provide evidence that it
achieved the applicable rates, except with respect to any individuals
who received a federally recognized good cause domestic violence waiver
of work participation requirements. In other words, it must demonstrate
that it met the applicable rates when such waiver cases are removed
from the calculations at Secs. 261.22(b) and 261.24(b) of this chapter.
(b)(1) We will reduce a State's penalty based on the degree of
noncompliance to the extent that its failure to meet the work
participation rates was attributable to federally recognized good cause
domestic violence waivers.
(2) To receive a reduction based on degree of noncompliance under
the provisions of Sec. 261.51 of this chapter, a State granting
federally recognized good cause domestic violence waivers of work
participation requirements must demonstrate that it achieved
participation rates above the threshold at Sec. 261.51(b)(3) of this
chapter, when such waiver cases are removed from the calculations at
Secs. 261.22(b) and 261.24(b) of this chapter.
(c) We may take federally recognized good cause domestic violence
waivers of work requirements into consideration in deciding whether a
State has achieved compliance or made significant progress towards
achieving compliance in meeting the work participation rates during a
corrective compliance period.
(d) To receive the penalty relief specified in paragraphs (a), (b),
and (c) of this section, the State must submit the information
specified at Sec. 265.9(b)(5) of this chapter.
Section 260.59--What Penalty Relief is Available to a State That Failed
To Comply With the Five-Year Limit on Federal Assistance Because It
Provided Federally Recognized Good Cause Domestic Violence Waivers?
(a)(1) We will determine that a State has reasonable cause if it
failed to comply with the five-year limit on Federal assistance because
of federally recognized good cause domestic violence waivers granted to
victims of domestic violence.
(2) More specifically, to receive reasonable cause under the
provisions at Sec. 264.3(b) of this chapter, a State must demonstrate
that:
(i) It granted federally recognized good cause domestic violence
waivers to extend time limits based on the need for continued
assistance due to current or past domestic violence or the risk of
further domestic violence; and
(ii) When individuals and their families are excluded from the
calculation, the percentage of families receiving federally funded
assistance for more than 60 months did not exceed 20 percent of the
total.
(b) We may take federally recognized good cause domestic violence
waivers to extend time limits into consideration in deciding whether a
State has achieved compliance or made significant progress towards
achieving compliance in meeting the five-year limit on Federal
assistance during a corrective compliance period.
(c) To receive the penalty relief specified in paragraphs (a) and
(b) of this section, the State must submit the information specified at
Sec. 265.9(b)(5) of this chapter.
Subpart C--What Special Provisions Apply to States that Were
Operating Programs Under Approved Waivers?
Sec. 260.70 What is the purpose of this subpart?
(a) Under section 415 of the Act, if a State was granted a waiver
under section 1115 of the Act and that waiver was in effect on August
22, 1996, the amendments made by PRWORA do not apply for the period of
the waiver, to the extent that they are inconsistent with the waiver
and the State elects to continue its waiver.
(b) Identification of waiver inconsistencies is relevant for the
determination of penalties in three areas:
(1) Under Sec. 261.50 of this chapter for failing to meet the work
participation rates at part 261 of this chapter;
(2) Under Sec. 264.2 of this chapter for failing to comply with the
five-year limit on Federal assistance at subpart A of part 264 of this
chapter; and
(3) Under Sec. 261.54 of this chapter for failing to impose
sanctions on individuals who fail to work.
(c) This subpart explains how we will determine waiver
inconsistencies and apply them in the penalty determination process for
these penalties.
Sec. 260.71 What definitions apply to this subpart?
(a) Inconsistent means that complying with the TANF work
participation or sanction requirements at section 407 of the Act or the
time-limit requirement at section 408(a)(7) of the Act would
necessitate that a State change a policy reflected in an approved
waiver.
(b) Waiver consists of the work participation or time-limit
component of the State's demonstration project under section 1115 of
the Act. The component includes the revised AFDC requirements indicated
in the State's waiver list, as approved by the Secretary under the
authority of section 1115, and the associated AFDC provisions that did
not need to be waived.
(c) Control group and experimental group have the meanings
specified in the terms and conditions of the State's demonstration.
Sec. 260.72 What basic requirements must State demonstration
components meet for the purpose of determining if inconsistencies exist
with respect to work requirements or time limits?
(a) The policies must be consistent with the requirements of
section 415 of the Act and the requirements of this subpart.
(b) The policies must be within the scope of the approved waivers
both in terms of geographical coverage and the coverage of the types of
cases specified in the waiver approval package.
(c) The State must have applied its waiver policies on a continuous
basis from the date that it implemented its TANF program, except that
it may have adopted modifications that have the effect of making its
policies more consistent with the provisions of PRWORA.
(d) An inconsistency may not apply beyond the earlier of the
following dates:
(1) The expiration of waiver authority as determined in accordance
with the demonstration terms and conditions; or
(2) For any specific inconsistency, the date upon which the State
discontinued the applicable waiver policy.
(e) The State must submit the Governor's certification specified in
Sec. 260.75.
(f) In general, the policies in this subpart do not have the effect
of delaying the date when a State might be subject to the work or time-
limit penalties at Secs. 261.50, 261.54, and 264.1 of this chapter or
the data collection requirements at part 265 of this chapter.
Sec. 260.73 How do existing welfare reform waivers affect the
participation rates and work rules?
(a) If a State is implementing a work participation component under
a waiver, in accordance with this subpart, the provisions of section
407 of the Act will not apply in determining if a penalty should be
imposed, to the extent that the provision is inconsistent with the
waiver.
(b) For the purpose of determining if the State's demonstration has
a work participation component, the waiver list for the demonstration
must include one or more specific provisions that directly correspond
to the work policies in section 407 of the Act (i.e., change
[[Page 17883]]
allowable JOBS activities, exemptions from JOBS participation, hours of
required JOBS participation, or sanctions for noncompliance with JOBS
participation).
(c) Corresponding to the inconsistencies certified by the Governor
under Sec. 260.75:
(1) We will calculate the State's work participation rates, by:
(i) Excluding cases exempted from participation under the
demonstration component and, if applicable, experimental and control
cases not otherwise exempted, in calculating the rate;
(ii) Defining work activities as defined in the demonstration
component in determining the numerator; and
(iii) Including cases meeting the required number of hours of
participation in work activities in accordance with demonstration
component policy, in determining the numerator.
(2) We will determine whether a State is taking appropriate
sanctions when an individual refuses to work based on the State's
certified waiver policies.
(d) We will use the data submitted by States pursuant to Sec. 265.3
of this chapter to calculate and make public a State's work
participation rates under both the TANF requirements and the State's
alternative waiver requirements.
Sec. 260.74 How do existing welfare reform waivers affect the
application of the Federal time-limit provisions?
(a)(1) If a State is implementing a time-limit component under a
waiver, in accordance with this subpart, the provisions of section
408(a)(7) of the Act will not apply in determining if a penalty should
be imposed, to the extent that they are inconsistent with the waiver.
(2) For the purpose of determining if the State's demonstration has
a time-limit component, the waiver list for the demonstration must
include provisions that directly correspond to the time-limit policies
enumerated in section 408(a)(7) of the Act (i.e., address which
individuals or families are subject to, or exempt from, terminations of
assistance based solely on the passage of time or who qualifies for
extensions to the time limit).
(b)(1) Generally, under an approved waiver, except as provided in
paragraph (b)(3) of this section, a State will count, toward the
Federal five-year limit, all months for which the head-of-household or
spouse of the head-of-household subject to the State time limit
receives assistance with Federal TANF funds, just as it would if it did
not have an approved waiver.
(2) The State need not count, toward the Federal five-year limit,
any months for which a head-of-household or spouse of the head-of-
household receives assistance with Federal TANF funds while that
individual is exempt from the State's time limit under the State's
approved waiver.
(3) Where a State has continued a time limit under waivers that
only terminates assistance for adults, the State need not count, toward
the Federal five-year limit, any months for which an adult subject to
the State time limit receives assistance with Federal TANF funds.
(4) The State may continue to provide assistance with Federal TANF
funds for more than 60 months, without a numerical limit, to families
provided extensions to the State time limit, under the provisions of
the terms and conditions of the approved waiver.
(c) Corresponding to the inconsistencies certified by the Governor
under Sec. 260.75, we will calculate the State's time-limit exceptions
by:
(1) Excluding, from the determination of the number of months of
Federal assistance received by a family:
(i) Any month in which the adult(s) were exempt from the State's
time limit under the terms of an approved waiver or any months in which
the children received assistance under a waiver that only terminated
assistance to adults; and
(ii) If applicable, experimental and control group cases not
otherwise exempted; and
(2) Applying the State's waiver policies with respect to the
availability of extensions to the time limit.
Sec. 260.75 If a State is claiming a waiver inconsistency for work
requirements or time limits, what must the Governor certify?
(a) The Governor of the State must certify in writing to the
Secretary that:
(1) The applicable policies have been continually applied in
operating the TANF program, as described in Sec. 260.72(c);
(2) The inconsistencies claimed by the State are within the scope
of the approved waivers, as described in Sec. 260.72(b);
(b) The certification must identify the specific inconsistencies
that the State chooses to continue with respect to work and time
limits.
(1) If the waiver inconsistency claim includes work provisions, the
certification must specify the standards that will apply, in lieu of
the provisions in subparts B and C of part 261 of this chapter, to
determine:
(i) The number of two-parent and all-parent cases that are exempt
from participation, if any, for the purpose of determining the
denominator of the work participation rate;
(ii) The number of nonexempt two-parent and all-parent cases that
are participating in work activities for the purpose of determining the
numerator of the work participation rate, including standards
applicable to;
(A) Countable work activities; and
(B) Required hours of work for participation for individual
participants; and
(iii) The penalty against an individual or family when an
individual refuses to work.
(2) If the waiver inconsistency claim includes time-limit
provisions, the certification must include the standards that will
apply, in lieu of the provisions in Sec. 264.1 of this chapter, in
determining:
(i) Which families are counted toward the Federal time limit; and
(ii) Whether a family is eligible for an extension of its time
limit on federally funded assistance.
(3) If the State is continuing policies for evaluation purposes in
accordance with Sec. 260.76:
(i) The certification must specify any special work or time-limit
standards that apply to the control group and experimental group cases;
and
(ii) The State may choose to exclude cases assigned to the
experimental and control groups, which are not otherwise exempt, for
the purpose of calculating the work participation rate or determining
State compliance related to limiting assistance to families including
adults who have received 60 months of Federal TANF assistance. In doing
so, the State may effectively exclude all experimental group cases and/
or control group cases, not otherwise exempt, but may not exclude
individual cases on a selective basis.
(c) The certification may include a claim of inconsistency with
respect to hours of required participation in work activities only if
the State has written evidence that, when implemented, the waiver
policies established specific requirements related to hours of work for
nonexempt individuals.
(d)(1) The Governor's certification must be provided no later than
October 1, 1999.
(2) If a State modifies its waiver policies in a way that has a
substantive effect on the determination of its work sanctions, or the
calculation of its work participation rates or its time-limit
exceptions, it must submit an amended certification no later than the
end of the fiscal quarter in which the modifications take effect.
[[Page 17884]]
Sec. 260.76 What special rules apply to States that are continuing
evaluations of their waiver demonstrations?
If a State is continuing research that employs an experimental
design in order to complete an impact evaluation of a waiver
demonstration, the experimental and control groups may continue to be
subject to prior AFDC law, except as modified by the waiver.
PART 261--ENSURING THAT RECIPIENTS WORK
Sec.
261.1 What does this part cover?
261.2 What definitions apply to this part?
Subpart A--What Are the Provisions Addressing Individual
Responsibility?
261.10 What work requirements must an individual meet?
261.11 Which recipients must have an assessment under TANF?
261.12 What is an individual responsibility plan?
261.13 May an individual be penalized for not following an
individual responsibility plan?
261.14 What is the penalty if an individual refuses to engage in
work?
261.15 Can a family be penalized if a parent refuses to work
because he or she cannot find child care?
261.16 Does the imposition of a penalty affect an individual's work
requirement?
Subpart B--What Are the Provisions Addressing State Accountability?
261.20 How will we hold a State accountable for achieving the work
objectives of TANF?
261.21 What overall work rate must a State meet?
261.22 How will we determine a State's overall work rate?
261.23 What two-parent work rate must a State meet?
261.24 How will we determine a State's two-parent work rate?
261.25 Does a State include Tribal families in calculating these
rates?
Subpart C--What Are the Work Activities and How Do They Count?
261.30 What are the work activities?
261.31 How many hours must an individual participate to count in
the numerator of the overall rate?
261.32 How many hours must an individual participate to count in
the numerator of the two-parent rate?
261.33 What are the special requirements concerning educational
activities in determining monthly participation rates?
261.34 Are there any limitations in counting job search and job
readiness assistance toward the participation rates?
261.35 Are there any special work provisions for single custodial
parents?
261.36 Do welfare reform waivers affect the calculation of a
State's participation rates?
Subpart D--How Will We Determine Caseload Reduction Credit for Minimum
Participation Rates?
261.40 Is there a way for a State to reduce the work participation
rates?
261.41 How will we determine the caseload reduction credit?
261.42 Which reductions count in determining the caseload reduction
credit?
261.43 What is the definition of a ``case receiving assistance'' in
calculating the caseload reduction credit?
261.44 When must a State report the required data on the caseload
reduction credit?
Subpart E--What Penalties Apply to States Related to Work Requirements?
261.50 What happens if a State fails to meet the participation
rates?
261.51 Under what circumstances will we reduce the amount of the
penalty below the maximum?
261.52 Is there a way to waive the State's penalty for failing to
achieve either of the participation rates?
261.53 May a State correct the problem before incurring a penalty?
261.54 Is a State subject to any other penalty relating to its work
program?
261.55 Under what circumstances will we reduce the amount of the
penalty for not properly imposing penalties on individuals?
261.56 What happens if a parent cannot obtain needed child care?
261.57 What happens if the State sanctions a single parent of a
child under six who cannot get needed child care?
Subpart F--How Do Welfare Reform Waivers Affect State Penalties?
261.60 How do existing welfare reform waivers affect a State's
penalty liability under this part?
Subpart G--What Nondisplacement Rules Apply in TANF?
261.70 What safeguards are there to ensure that participants in
work activities do not displace other workers?
Authority: 42 U.S.C. 601, 602, 607, and 609.
Sec. 261.1 What does this part cover?
This part includes the regulatory provisions relating to the
mandatory work requirements of TANF.
Sec. 261.2 What definitions apply to this part?
The general TANF definitions at Secs. 260.30 through 260.33 of this
chapter apply to this part.
Subpart A--What Are the Provisions Addressing Individual
Responsibility?
Sec. 261.10 What work requirements must an individual meet?
(a)(1) A parent or caretaker receiving assistance must engage in
work activities when the State has determined that the individual is
ready to engage in work or when he or she has received assistance for a
total of 24 months, whichever is earlier, consistent with section
407(e)(2) of the Act.
(2) The State must define what it means to engage in work for this
requirement; its definition may include participation in work
activities in accordance with section 407 of the Act.
(b) If a parent or caretaker has received assistance for two
months, he or she must participate in community service employment,
consistent with section 407(e)(2) of the Act, unless the State has
exempted the individual from work requirements or he or she is already
engaged in work activities as described at Sec. 261.30. The State will
determine the minimum hours per week and the tasks the individual must
perform as part of the community service employment.
Sec. 261.11 Which recipients must have an assessment under TANF?
(a) The State must make an initial assessment of the skills, prior
work experience, and employability of each recipient who is at least
age 18 or who has not completed high school (or equivalent) and is not
attending secondary school.
(b) The State may make any required assessments within 30 days (90
days, at State option) of the date an individual becomes eligible for
assistance.
Sec. 261.12 What is an individual responsibility plan?
An individual responsibility plan is a plan developed at State
option, in consultation with the individual, on the basis of the
assessment made under Sec. 261.11. The plan:
(a) Should set an employment goal and a plan for moving immediately
into private-sector employment;
(b) Should describe the obligations of the individual. These could
include going to school, maintaining certain grades, keeping school-
aged children in school, immunizing children, going to classes, or
doing other things that will help the individual become or remain
employed in the private sector;
(c) Should be designed to move the individual into whatever
private-sector employment he or she is capable of handling as quickly
as possible and to increase over time the responsibility and the amount
of work the individual handles;
(d) Should describe the services the State will provide the
individual to enable the individual to obtain and keep private sector
employment, including job counseling services; and
(e) May require the individual to undergo appropriate substance
abuse treatment.
[[Page 17885]]
Sec. 261.13 May an individual be penalized for not following an
individual responsibility plan?
Yes. If an individual fails without good cause to comply with an
individual responsibility plan that he or she has signed, the State may
reduce the amount of assistance otherwise payable to the family, by
whatever amount it considers appropriate. This penalty is in addition
to any other penalties under the State's TANF program.
Sec. 261.14 What is the penalty if an individual refuses to engage in
work?
(a) If an individual refuses to engage in work required under
section 407 of the Act, the State must reduce or terminate the amount
of assistance payable to the family, subject to any good cause or other
exceptions the State may establish. Such a reduction is governed by the
provisions of Sec. 261.16.
(b)(1) The State must, at a minimum, reduce the amount of
assistance otherwise payable to the family pro rata with respect to any
period during the month in which the individual refuses to work.
(2) The State may impose a greater reduction, including terminating
assistance.
(c) A State that fails to impose penalties on individuals in
accordance with the provisions of section 407(e) of the Act may be
subject to the State penalty specified at Sec. 261.54.
Sec. 261.15 Can a family be penalized if a parent refuses to work
because he or she cannot find child care?
(a) No, the State may not reduce or terminate assistance based on
an individual's refusal to engage in required work if the individual is
a single custodial parent caring for a child under age six who has a
demonstrated inability to obtain needed child care, as specified at
Sec. 261.56.
(b) A State that fails to comply with the penalty exception at
section 407(e)(2) of the Act and the requirements at Sec. 261.56 may be
subject to the State penalty specified at Sec. 261.57.
Sec. 261.16 Does the imposition of a penalty affect an individual's
work requirement?
A penalty imposed by a State against the family of an individual by
reason of the failure of the individual to comply with a requirement
under TANF shall not be construed to be a reduction in any wage paid to
the individual.
Subpart B--What Are the Provisions Addressing State Accountability?
Sec. 261.20 How will we hold a State accountable for achieving the
work objectives of TANF?
(a) Each State must meet two separate work participation rates,
one--the two-parent rate--based on how well it succeeds in helping
adults in two-parent families find work activities described at
Sec. 261.30, the other--the overall rate--based on how well it succeeds
in finding those activities for adults in all the families that it
serves.
(b) Each State must submit data that allows us to measure its
success in requiring adults to participate in work activities, as
specified at Sec. 265.3 of this chapter.
(c) If the data show that a State met both participation rates in a
fiscal year, then the percentage of historic State expenditures that it
must expend under TANF, pursuant to Sec. 263.1 of this chapter,
decreases from 80 percent to 75 percent for that fiscal year. This is
also known as the State's TANF ``maintenance-of-effort'' requirement.
(d) If the data show that a State did not meet either minimum work
participation rate for a fiscal year, a State could be subject to a
financial penalty.
(e) Before we impose a penalty, a State will have the opportunity
to claim reasonable cause or enter into a corrective compliance plan,
pursuant to Secs. 262.5 and 262.6 of this chapter.
Sec. 261.21 What overall work rate must a State meet?
Each State must achieve the following minimum overall participation
rate:
------------------------------------------------------------------------
Then the
minimum
If the fiscal year is: participation
rate is:
------------------------------------------------------------------------
1997..................................................... 25
1998..................................................... 30
1999..................................................... 35
2000..................................................... 40
2001..................................................... 45
2002 and thereafter...................................... 50
------------------------------------------------------------------------
Sec. 261.22 How will we determine a State's overall work rate?
(a) The overall participation rate for a fiscal year is the average
of the State's overall participation rates for each month in the fiscal
year.
(b) We determine a State's overall participation rate for a month
as follows:
(1) The number of families receiving TANF assistance that include
an adult or a minor head-of-household who is engaged in work for the
month (i.e., the numerator), divided by,
(2) The number of families receiving TANF assistance during the
month that include an adult or a minor head-of-household, minus the
number of families that are subject to a penalty for refusing to work
in that month (i.e., the denominator). However, if a family has been
sanctioned for more than three of the last 12 months, we will not
exclude it from the participation rate calculation.
(3) The State may direct us, through its reported participation
data, to include in the participation calculation families that have
been sanctioned for no more than three of the last 12 months.
(c)(1) A State has the option of not requiring a single custodial
parent caring for a child under age one to engage in work.
(2) At State option, we will disregard a family with such a parent
from the participation rate calculation for a maximum of 12 months.
(d)(1) If a family receives assistance for only part of a month, we
will count it as a month of participation if an adult in the family is
engaged in work for the minimum average number of hours in each full
week that the family receives assistance in that month.
(2) If a State pays benefits retroactively (i.e., for the period
between application and approval of benefits), it has the option to
consider the family to be receiving assistance during the period of
retroactivity.
Sec. 261.23 What two-parent work rate must a State meet?
A State receiving a TANF grant for a fiscal year must achieve the
following minimum two-parent participation rate:
------------------------------------------------------------------------
Then the
minimum
If the fiscal year is: participation
rate is:
------------------------------------------------------------------------
1997..................................................... 75
1998..................................................... 75
1999 and thereafter...................................... 90
------------------------------------------------------------------------
Sec. 261.24 How will we determine a State's two-parent work rate?
(a) The two-parent participation rate for a fiscal year is the
average of the State's two-parent participation rates for each month in
the fiscal year.
(b) We determine a State's two-parent participation rate for a
month as follows:
(1) The number of two-parent families receiving TANF assistance
that include an adult or minor child head-of-household and other parent
who meet the requirements set forth in Sec. 261.32 for the month (i.e.,
the numerator), divided by,
[[Page 17886]]
(2) The number of two-parent families receiving TANF assistance
during the month, minus the number of two-parent families that are
subject to a penalty for refusing to work in that month (i.e., the
denominator). However, if a family has been sanctioned for more than
three of the last 12 months, we will not exclude it from the
participation rate calculation.
(3) The State may direct us, through its reported participation
data, to include in the participation calculation families that have
been sanctioned for no more than three of the last 12 months.
(c) For purposes of the calculation in paragraph (b) of this
section, a two-parent family includes, at a minimum, all families with
two natural or adoptive parents (of the same minor child) receiving
assistance and living in the home, unless both are minors and neither
is a head-of-household.
(d)(1) If a family receives assistance for only part of a month, we
will count it as a month of participation if an adult in the family (or
both adults, if they are both required to work) is engaged in work for
the minimum average number of hours in each full week that the family
receives assistance in that month.
(2) If a State pays benefits retroactively (i.e., for the period
between application and approval of benefits), it has the option to
consider the family to be receiving assistance during the period of
retroactivity.
(e) If a family includes a disabled parent, we will not consider
the family to be a two-parent family under paragraph (b) of this
section; i.e., we will not include such a family in either the
numerator or denominator of the two-parent rate.
Sec. 261.25 Does a State include Tribal families in calculating these
rates?
At State option, we will include families that are receiving
assistance under an approved Tribal family assistance plan or under a
Tribal work program in calculating the State's participation rates
under Secs. 261.22 and 261.24.
Subpart C--What Are the Work Activities and How Do They Count?
Sec. 261.30 What are the work activities?
The work activities are:
(a) Unsubsidized employment;
(b) Subsidized private-sector employment;
(c) Subsidized public-sector employment;
(d) Work experience if sufficient private-sector employment is not
available;
(e) On-the-job training (OJT);
(f) Job search and job readiness assistance;
(g) Community service programs;
(h) Vocational educational training;
(i) Job skills training directly related to employment;
(j) Education directly related to employment, in the case of a
recipient who has not received a high school diploma or a certificate
of high school equivalency;
(k) Satisfactory attendance at secondary school or in a course of
study leading to a certificate of general equivalence, if a recipient
has not completed secondary school or received such a certificate; and
(l) Providing child care services to an individual who is
participating in a community service program.
Sec. 261.31 How many hours must an individual participate to count in
the numerator of the overall rate?
(a) An individual counts as engaged in work for a month for the
overall rate if:
(1) He or she participates in work activities during the month for
at least the minimum average number of hours per week listed in the
following table:
------------------------------------------------------------------------
Then the
minimum
If the fiscal year is: average
hours per
week is:
------------------------------------------------------------------------
1997....................................................... 20
1998....................................................... 20
1999....................................................... 25
2000 or thereafter......................................... 30
------------------------------------------------------------------------
and
(2) At least 20 of the above hours per week come from participation
in the activities listed in paragraph (b) of this section.
(b) The following nine activities count toward the first 20 hours
of participation: unsubsidized employment; subsidized private-sector
employment; subsidized public-sector employment; work experience; on-
the-job training; job search and job readiness assistance; community
service programs; vocational educational training; and providing child
care services to an individual who is participating in a community
service program.
(c) Above 20 hours per week, the following three activities may
also count as participation: job skills training directly related to
employment; education directly related to employment; and satisfactory
attendance at secondary school or in a course of study leading to a
certificate of general equivalence.
Sec. 261.32 How many hours must an individual participate to count in
the numerator of the two-parent rate?
(a) Subject to paragraph (d) of this section, an individual counts
as engaged in work for the month for the two-parent rate if:
(1) If an individual and the other parent in the family are
participating in work activities for an average of at least 35 hours
per week during the month, and
(2) At least 30 of the 35 hours per week come from participation in
the activities listed in paragraph (b) of this section.
(b) The following nine activities count for the first 30 hours of
participation: unsubsidized employment; subsidized private-sector
employment; subsidized public-sector employment; work experience; on-
the-job training; job search and job readiness assistance; community
service programs; vocational educational training; and providing child
care services to an individual who is participating in a community
service program.
(c) Above 30 hours per week, the following three activities may
also count for participation: job skills training directly related to
employment; education directly related to employment; and satisfactory
attendance at secondary school or in a course of study leading to a
certificate of general equivalence.
(d)(1) If the family receives federally funded child care
assistance and an adult in the family is not disabled or caring for a
severely disabled child, then the individual and the other parent must
be participating in work activities for an average of at least 55 hours
per week for the individual to count as a two-parent family engaged in
work for the month.
(2) At least 50 of the 55 hours per week must come from
participation in the activities listed in paragraph (b) of this
section.
(3) Above 50 hours per week, the three activities listed in
paragraph (c) of this section may also count as participation.
Sec. 261.33 What are the special requirements concerning educational
activities in determining monthly participation rates?
(a) Vocational educational training may only count for a total of
12 months for any individual.
(b)(1) A recipient who is married or a single head-of-household
under 20 years old counts as engaged in work in a month if he or she:
(i) Maintains satisfactory attendance at a secondary school or the
equivalent during the month; or
[[Page 17887]]
(ii) Participates in education directly related to employment for
an average of at least 20 hours per week during the month.
(2)(i) For a married recipient, such participation counts as the
greater of 20 hours or the actual hours of participation.
(ii) If both parents in the family are under 20 years old, the
requirements at Sec. 261.32(d) are met if both meet the conditions of
paragraphs (b)(1)(i) or (b)(1)(ii) of this section.
(c) In counting individuals for each participation rate, not more
than 30 percent of individuals engaged in work in a month may be
included in the numerator because they are:
(1) Participating in vocational educational training; and
(2) In fiscal year 2000 or thereafter, individuals deemed to be
engaged in work by participating in educational activities described in
paragraph (b) of this section.
Sec. 261.34 Are there any limitations in counting job search and job
readiness assistance toward the participation rates?
Yes. There are four limitations concerning job search and job
readiness.
(a) Except as provided in paragraph (b) of this section, an
individual's participation in job search and job readiness assistance
counts for a maximum of six weeks in any fiscal year.
(b) If the State's total unemployment rate is at least 50 percent
greater than the United States' total unemployment rate or if the State
meets the definition of a needy State, specified at Sec. 260.30 of this
chapter, then an individual's participation in job search and job
readiness assistance counts for a maximum of 12 weeks in that fiscal
year.
(c) An individual's participation in job search and job readiness
assistance does not count for a week that immediately follows four
consecutive weeks of such participation in a fiscal year.
(d) Not more than once for any individual in a fiscal year, a State
may count three or four days of job search and job readiness assistance
during a week as a full week of participation.
Sec. 261.35 Are there any special work provisions for single custodial
parents?
Yes. A single custodial parent or caretaker relative with a child
under age six will count as engaged in work if he or she participates
for at least an average of 20 hours per week.
Sec. 261.36 Do welfare reform waivers affect the calculation of a
State's participation rates?
A welfare reform waiver could affect the calculation of a State's
participation rate, pursuant to subpart C of part 260 and section 415
of the Act.
Subpart D--How Will We Determine Caseload Reduction Credit for
Minimum Participation Rates?
Sec. 261.40 Is there a way for a State to reduce the work
participation rates?
(a)(1) If the average monthly number of cases receiving assistance,
including assistance under a separate State program (as provided at
Sec. 261.42(b)), in a State in the preceding fiscal year was lower than
the average monthly number of cases that received assistance in FY
1995, the minimum overall participation rate the State must meet for
the fiscal year (as provided at Sec. 261.21) decreases by the number of
percentage points the prior-year caseload fell in comparison to the FY
1995 caseload.
(2) The minimum two-parent participation rate the State must meet
for the fiscal year (as provided at Sec. 261.23) decreases, at State
option, by either:
(i) The number of percentage points the prior-year two-parent
caseload, including two-parent cases receiving assistance under a
separate State program (as provided at Sec. 261.42(b)), fell in
comparison to the FY 1995 two-parent caseload or;
(ii) The number of percentage points the prior-year overall
caseload, including assistance under a separate State program (as
provided at Sec. 261.42(b)), fell in comparison to the FY 1995 overall
caseload.
(b) The calculations in paragraph (a) of this section must
disregard the net caseload reduction (i.e., caseload decreases offset
by increases) due either to requirements of Federal law or to changes
that a State has made in its eligibility criteria in comparison to its
criteria in effect in FY 1995.
(c)(1)(i) To establish the caseload base for fiscal year 1995, we
will use the number of AFDC cases and Unemployed Parent cases reported
on ACF-3637, Statistical Report on Recipients under Public Assistance.
(ii) We will automatically adjust the Unemployed Parent caseload
proportionally upward, based on the percentage of cases with two
parents in the household, as shown in Quality Control data for the
period prior to the State's reporting two-parent data under TANF.
(2) To determine the prior-year caseload for subsequent years, we
will use caseload information from the TANF Data Report and the SSP-MOE
Data Report.
(3) To qualify for a caseload reduction, a State must have reported
monthly caseload information, including cases in separate State
programs, for the preceding fiscal year for cases receiving assistance
as defined at Sec. 261.43.
(d)(1) A State may correct erroneous data or submit accurate data
to adjust IV-A program data or to include unduplicated cases. For
example, a State may submit accurate data for Emergency Assistance
cases and two-parent cases outside the Unemployed Parent program.
(2) A State may submit data to adjust the caseload for FY 1999 and
thereafter to include two-parent or other State program cases covered
by Federal TANF or State MOE expenditures, but not otherwise reported.
(3) We will adjust both the FY 1995 baseline and the caseload
information for subsequent years, as appropriate, based on these State
submissions.
(e) We refer to the number of percentage points by which a caseload
falls, disregarding the cases described in paragraph (b), as a caseload
reduction credit.
Sec. 261.41 How will we determine the caseload reduction credit?
(a)(1) We will determine the total and two-parent caseload
reduction credits that apply to each State based on the information and
estimates reported to us by the State on eligibility policy changes,
application denials, and case closures.
(2) We will accept the information and estimates provided by a
State, unless they are implausible based on the criteria listed in
paragraph (d) of this section.
(3) We may conduct on-site reviews and inspect administrative
records on applications and terminations to validate the accuracy of
the State estimates.
(b) In order to receive a caseload reduction credit, a State must
submit a Caseload Reduction Report to us containing the following
information:
(1) A listing of, and implementation dates for, all State and
Federal eligibility changes, as defined at Sec. 261.42, made by the
State since the beginning of FY 1995;
(2) A numerical estimate of the positive or negative impact on the
applicable caseload of each eligibility change (based, as appropriate,
on application denials, case closures or other analyses);
(3) An overall estimate of the total net positive or negative
impact on the
[[Page 17888]]
applicable caseload as a result of all such eligibility changes;
(4) An estimate of the State's caseload reduction credit;
(5) The number of application denials and case closures for fiscal
year 1995 and the prior fiscal year;
(6) The distribution of such denials and case closures, by reason,
for fiscal year 1995 and the prior fiscal year;
(7) A description of the methodology and the supporting data that
it used to calculate its caseload reduction estimates;
(8) A certification that it has provided the public an appropriate
opportunity to comment on the estimates and methodology, considered
their comments, and incorporated all net reductions resulting from
Federal and State eligibility changes; and
(9) A summary of all public comments.
(c) A State requesting a caseload reduction credit for both rates
must provide separate estimates and information for the two-parent
credit if it wishes to base the caseload reduction credit for the two-
parent rate on reductions in the two-parent caseload.
(1) The State must base its estimates of the impact of eligibility
changes for the overall participation rate on decreases in its overall
caseload compared to the FY 1995 overall caseload baseline established
in accordance with Sec. 261.40(d).
(2) The State must base its estimates of the impact of eligibility
changes for two-parent cases on decreases in its two-parent caseload
compared to the FY 1995 two-parent caseload baseline established in
accordance with Sec. 261.40(d).
(d)(1) For each State, we will assess the adequacy of information
and estimates using the following criteria: its methodology; its
estimates of impact compared to other States; the quality of its data;
and the completeness and adequacy of its documentation.
(2) If we request additional information to develop or validate
estimates, the State may negotiate an appropriate deadline or provide
the information within 30 days of the date of our request.
(3) The State must provide sufficient data to document the
information submitted under paragraph (b) of this section.
(e) We will not calculate a caseload reduction credit unless the
State reports case-record data on individuals and families served by
any separate State program, as required under Sec. 265.3(d) of this
chapter.
(f) A State may only apply to its participation rate a caseload
reduction credit that we have calculated. If a State disagrees with the
caseload reduction credit, it may appeal the decision as an adverse
action in accordance with Sec. 262.7 of this chapter.
Sec. 261.42 Which reductions count in determining the caseload
reduction credit?
(a)(1) A State's caseload reduction estimate must not include net
caseload decreases (i.e., caseload decreases offset by increases) due
to Federal requirements or State changes in eligibility rules since FY
1995 that directly affect a family's eligibility for assistance. These
include more stringent income and resource limitations, time limits,
full family sanctions, and other new requirements that deny families
assistance when an individual does not comply with work requirements,
cooperate with child support, or fulfill other behavioral requirements.
(2) A State may count the reductions attributable to enforcement
mechanisms or procedural requirements that are used to enforce existing
eligibility criteria (e.g., fingerprinting or other verification
techniques) to the extent that such mechanisms or requirements identify
or deter families otherwise ineligible under existing rules.
(b) A State must include cases receiving assistance in separate
State programs as part of its prior-year caseload. However, if a State
provides documentation that separate State program cases meet the
following conditions, we will exclude them from the caseload count:
(1) The cases overlap with, or duplicate, cases in the TANF
caseload; or
(2) They are cases made ineligible for Federal benefits by Pub. L.
104-193 that are receiving only State-funded cash assistance, nutrition
assistance, or other benefits.
Sec. 261.43 What is the definition of a ``case receiving assistance''
in calculating the caseload reduction credit?
(a)(1) The caseload reduction credit is based on decreases in
caseloads receiving assistance (other than those excluded pursuant to
Sec. 261.42) both in a State's TANF program and in separate State
programs that address basic needs and are used to meet the maintenance-
of-effort requirement.
(2) A State that is investing State MOE funds in eligible families
in excess of the required 80 percent or 75 percent basic MOE amount
need only include the pro rata share of caseloads receiving assistance
that are required to meet basic MOE requirements.
(b)(1) Depending on a State's TANF implementation date, for fiscal
years 1995, 1996 and 1997, we will use adjusted baseline caseload data
as established in accordance with Sec. 261.40(d).
(2) For subsequent fiscal years, we will determine the caseload
based on all cases in a State receiving assistance (according to the
definition of assistance at Sec. 260.31 of this chapter).
Sec. 261.44 When must a State report the required data on the caseload
reduction credit?
(a) A State must report the necessary documentation on caseload
reductions for the preceding fiscal year by December 31.
(b) We will notify the State of its caseload reduction credit no
later than March 31.
Subpart E--What Penalties Apply to States Related to Work
Requirements?
Sec. 261.50 What happens if a State fails to meet the participation
rates?
(a) If we determine that a State did not achieve one of the
required minimum work participation rates, we must reduce the SFAG
payable to the State.
(b)(1) If there was no penalty for the preceding fiscal year, the
base penalty for the current fiscal year is five percent of the
adjusted SFAG.
(2) For each consecutive year that the State is subject to a
penalty under this part, we will increase the amount of the base
penalty by two percentage points over the previous year's penalty.
However, the penalty can never exceed 21 percent of the State's
adjusted SFAG.
(c) We impose a penalty by reducing the SFAG payable for the fiscal
year that immediately follows our final determination that a State is
subject to a penalty and our final determination of the penalty amount.
(d) In accordance with the procedures specified at Sec. 262.4 of
this chapter, a State may dispute our determination that it is subject
to a penalty.
Sec. 261.51 Under what circumstances will we reduce the amount of the
penalty below the maximum?
(a) We will reduce the amount of the penalty based on the degree of
the State's noncompliance.
(1) If the State fails only the two-parent participation rate
specified at Sec. 261.23, reduced by any applicable caseload reduction
credit, its maximum penalty will be a percentage of the penalty
specified at Sec. 261.50. This percentage will equal the percentage of
two-parent cases in the State's total caseload.
(2) If the State fails the overall participation rate specified at
Sec. 261.21, reduced by any applicable caseload
[[Page 17889]]
reduction credit, or both rates, its maximum penalty will be the
penalty specified at Sec. 261.50.
(b)(1) In order to receive a reduction of the penalty amounts
determined under paragraphs (a)(1) or (a)(2) of this section:
(i) The State must achieve participation rates equal to a threshold
level defined as 50 percent of the applicable minimum participation
rate at Sec. 261.21 or Sec. 261.23, minus any caseload reduction credit
determined pursuant to subpart D of this part; and
(ii) The adjustment factor for changes in the number of individuals
engaged in work, described in paragraph (b)(4) of this section, must be
greater than zero.
(2) If the State meets the requirements of paragraph (b)(1) of this
section, we will base its reduction on the severity of the failure. For
this purpose, we will calculate the severity of the State's failure
based on:
(i) The degree to which it missed the target rate;
(ii) An adjustment factor that accounts for changes in the number
of individuals who are engaged in work in the State since the prior
year; and
(iii) The number of consecutive years in which the State failed to
meet the participation rates and the number of rates missed.
(3) We will determine the degree to which the State missed the
target rate using the ratio of the following two factors:
(i) The difference between the participation rate achieved by the
State and the 50-percent threshold level (adjusted for any caseload
reduction credit determined pursuant to subpart D of this part); and
(ii) The difference between the minimum applicable participation
rate and the threshold level (both adjusted for any caseload reduction
credit determined pursuant to subpart D of this part).
(4) We will calculate the adjustment factor for changes in the
number of individuals engaged in work using the following formula:
(i) The average monthly number of individuals engaged in work in
the penalty year minus the average monthly number of individuals
engaged in work in the prior year, divided by,
(ii) The product of 0.15 and the average monthly number of
individuals engaged in work in the prior year.
(5) Subject to paragraph (c) of this section, if the State fails
only the two-parent participation rate specified at Sec. 261.23, and
qualifies for a penalty reduction under paragraph (b)(1) of this
section, its penalty reduction will be the product of:
(i) The amount determined in paragraph (a)(1) of this section;
(ii) The ratio described in paragraph (b)(3) of this section
computed with respect to two-parent families; and
(iii) The adjustment factor described in paragraph (b)(4) of this
section computed with respect to two-parent families.
(6) Subject to paragraph (c) of this section, if the State fails
the overall participation rate specified at Sec. 261.21, or both rates,
and qualifies for a penalty reduction under paragraph (b)(1) of this
section, its penalty reduction will be the product of:
(i) The amount determined in paragraph (a)(2) of this section;
(ii) The ratio described in paragraph (b)(3) of this section
computed with respect to all families; and
(iii) The adjustment factor described in paragraph (b)(4) of this
section.
(7) Pursuant to Sec. 260.58 of this chapter, we will adjust the
calculations in this section to exclude cases for which a State has
granted federally recognized good cause domestic violence waivers.
(c)(1) If the State was not subject to a penalty the prior year,
the State will receive:
(i) The full applicable penalty reduction described in paragraph
(b)(5) or (b)(6) of this section if it failed only one participation
rate; or
(ii) 50 percent of the penalty reduction described in paragraph
(b)(6) of this section if it failed both participation rates.
(2) If the penalty year is the second successive year in which the
State is subject to a penalty, the State will receive:
(i) 50 percent of the applicable penalty reduction described in
paragraph (b)(5) or (b)(6) of this section if it failed only one
participation rate; or
(ii) 25 percent of the penalty reduction described in paragraph
(b)(6) of this section if it failed both participation rates.
(3) If the penalty year is the third or greater successive year in
which the State is subject to a penalty, the State will not receive a
penalty reduction described in paragraph (b)(5) or (b)(6) of this
section.
(d)(1) We may reduce the penalty if the State failed to achieve a
participation rate because:
(i) It meets the definition of a needy State, specified at
Sec. 260.30 of this chapter; or,
(ii) Noncompliance is due to extraordinary circumstances such as a
natural disaster, regional recession, or substantial caseload increase.
(2) In determining noncompliance under paragraph (d)(1)(ii) of this
section, we will consider such objective evidence of extraordinary
circumstances as the State chooses to submit.
Sec. 261.52 Is there a way to waive the State's penalty for failing to
achieve either of the participation rates?
(a) We will not impose a penalty under this part if we determine
that the State has reasonable cause for its failure.
(b) In addition to the general reasonable cause criteria specified
at Sec. 262.5 of this chapter, a State may also submit a request for a
reasonable cause exemption from the requirement to meet the minimum
participation rate in two specific case situations.
(1) We will determine that a State has reasonable cause if it
demonstrates that failure to meet the work participation rates is
attributable to its provision of federally recognized good cause
domestic violence waivers (i.e., it provides evidence that it achieved
the applicable work rates when individuals receiving federally
recognized good cause domestic violence waivers of work requirements,
in accordance with the provisions at Secs. 260.54(b) and 260.55 of this
chapter, are removed from the calculations in Secs. 261.22(b) and
261.24(b)).
(2) We will determine that a State has reasonable cause if it
demonstrates that its failure to meet the work participation rates is
attributable to its provision of assistance to refugees in federally
approved alternative projects under section 412(e)(7) of the
Immigration and Nationality Act (8 U.S.C. 1522(e)(7)).
(c) In accordance with the procedures specified at Sec. 262.4 of
this chapter, a State may dispute our determination that it is subject
to a penalty.
Sec. 261.53 May a State correct the problem before incurring a
penalty?
(a) Yes. A State may enter into a corrective compliance plan to
remedy a problem that caused its failure to meet a participation rate,
as specified at Sec. 262.6 of this chapter.
(b) To qualify for a penalty reduction under Sec. 262.6(j)(1) of
this chapter, based on significant progress towards correcting a
violation, a State must reduce the difference between the participation
rate it achieved in the year for which it is subject to a penalty and
the rate applicable during the penalty year (adjusted for any caseload
reduction credit determined pursuant to subpart D of this part) by at
least 50 percent.
Sec. 261.54 Is a State subject to any other penalty relating to its
work program?
(a) If we determine that, during a fiscal year, a State has
violated section 407(e) of the Act, relating to imposing
[[Page 17890]]
penalties against individuals, we must reduce the SFAG payable to the
State.
(b) The penalty amount for a fiscal year will equal between one and
five percent of the adjusted SFAG.
(c) We impose a penalty by reducing the SFAG payable for the fiscal
year that immediately follows our final determination that a State is
subject to a penalty and our final determination of the penalty amount.
Sec. 261.55 Under what circumstances will we reduce the amount of the
penalty for not properly imposing penalties on individuals?
(a) We will reduce the amount of the penalty based on the degree of
the State's noncompliance.
(b) In determining the size of any reduction, we will consider
objective evidence of:
(1) Whether the State has established a control mechanism to ensure
that the grants of individuals are appropriately reduced for refusing
to engage in required work; and
(2) The percentage of cases for which the grants have not been
appropriately reduced.
Sec. 261.56 What happens if a parent cannot obtain needed child care?
(a)(1) If the individual is a single custodial parent caring for a
child under age six, the State may not reduce or terminate assistance
based on the parent's refusal to engage in required work if he or she
demonstrates an inability to obtain needed child care for one or more
of the following reasons:
(i) Appropriate child care within a reasonable distance from the
home or work site is unavailable;
(ii) Informal child care by a relative or under other arrangements
is unavailable or unsuitable; or
(iii) Appropriate and affordable formal child care arrangements are
unavailable.
(2) Refusal to work when an acceptable form of child care is
available is not protected from sanctioning.
(b)(1) The State will determine when the individual has
demonstrated that he or she cannot find child care, in accordance with
criteria established by the State.
(2) These criteria must:
(i) Address the procedures that the State uses to determine if the
parent has a demonstrated inability to obtain needed child care;
(ii) Include definitions of the terms ``appropriate child care,''
reasonable distance,'' ``unsuitability of informal care,'' and
``affordable child care arrangements''; and
(iii) Be submitted to us.
(c) The TANF agency must inform parents about:
(1) The penalty exception to the TANF work requirement, including
the criteria and applicable definitions for determining whether an
individual has demonstrated an inability to obtain needed child care;
(2) The State's process or procedures (including definitions) for
determining a family's inability to obtain needed child care, and any
other requirements or procedures, such as fair hearings, associated
with this provision; and
(3) The fact that the exception does not extend the time limit for
receiving Federal assistance.
Sec. 261.57 What happens if a State sanctions a single parent of a
child under six who cannot get needed child care?
(a) If we determine that a State has not complied with the
requirements of Sec. 261.56, we will reduce the SFAG payable to the
State by no more than five percent for the immediately succeeding
fiscal year unless the State demonstrates to our satisfaction that it
had reasonable cause or it achieves compliance under a corrective
compliance plan pursuant to Secs. 262.5 and 262.6 of this chapter.
(b) We will impose the maximum penalty if:
(1) The State does not have a statewide process in place to inform
parents about the exception to the work requirement and enable them to
demonstrate that they have been unable to obtain child care; or
(2) There is a pattern of substantiated complaints from parents or
organizations verifying that a State has reduced or terminated
assistance in violation of this requirement.
(c) We may impose a reduced penalty if the State demonstrates that
the violations were isolated or that they affected a minimal number of
families.
Subpart F--How Do Welfare Reform Waivers Affect State Penalties?
Sec. 261.60 How do existing welfare reform waivers affect a State's
penalty liability under this part?
A welfare reform waiver could affect a State's penalty liability
under this part, subject to subpart C of part 260 of this chapter and
section 415 of the Act.
Subpart G--What Nondisplacement Rules Apply in TANF?
Sec. 261.70 What safeguards are there to ensure that participants in
work activities do not displace other workers?
(a) An adult taking part in a work activity outlined in Sec. 261.30
may not fill a vacant employment position if:
(1) Another individual is on layoff from the same or any
substantially equivalent job; or
(2) The employer has terminated the employment of any regular
employee or caused an involuntary reduction in its work force in order
to fill the vacancy with an adult taking part in a work activity.
(b) A State must establish and maintain a grievance procedure to
resolve complaints of alleged violations of the displacement rule in
this section.
(c) This section does not preempt or supersede State or local laws
providing greater protection for employees from displacement.
PART 262--ACCOUNTABILITY PROVISIONS--GENERAL
Sec.
262.0 What definitions apply to this part?
262.1 What penalties apply to States?
262.2 When do the TANF penalty provisions apply?
262.3 How will we determine if a State is subject to a penalty?
262.4 What happens if we determine that a State is subject to a
penalty?
262.5 Under what general circumstances will we determine that a
State has reasonable cause?
262.6 What happens if a State does not demonstrate reasonable
cause?
262.7 How can a State appeal our decision to take a penalty?
Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 606, 609, and 610.
Sec. 262.0 What definitions apply to this part?
The general TANF definitions at Secs. 260.30 through 260.33 of this
chapter apply to this part.
Sec. 262.1 What penalties apply to States?
(a) We will assess fiscal penalties against States under
circumstances defined in parts 261 through 265 of this chapter. The
penalties are:
(1) A penalty of the amount by which a State misused its TANF
funds;
(2) An additional penalty of five percent of the adjusted SFAG if
such misuse was intentional;
(3) A penalty of four percent of the adjusted SFAG for each quarter
a State fails to submit an accurate, complete and timely required
report;
(4) A penalty of up to 21 percent of the adjusted SFAG for failure
to satisfy the minimum participation rates;
(5) A penalty of no more than two percent of the adjusted SFAG for
failure to participate in IEVS;
(6) A penalty of no more than five percent of the adjusted SFAG for
failure to enforce penalties on recipients who are not cooperating with
the State Child Support Enforcement (IV-D) agency;
[[Page 17891]]
(7) A penalty equal to the outstanding loan amount, plus interest,
for failure to repay a Federal loan;
(8) A penalty equal to the amount by which a State fails to meet
its basic MOE requirement;
(9) A penalty of five percent of the adjusted SFAG for failure to
comply with the five-year limit on Federal assistance;
(10) A penalty equal to the amount of contingency funds that were
received but were not remitted for a fiscal year, if the State fails to
maintain 100 percent of historic State expenditures in that fiscal
year;
(11) A penalty of no more than five percent of the adjusted SFAG
for the failure to maintain assistance to an adult single custodial
parent who cannot obtain child care for a child under age six;
(12) A penalty of no more than two percent of the adjusted SFAG
plus the amount a State has failed to expend of its own funds to
replace the reduction to its SFAG due to the assessment of penalties in
this section in the immediately succeeding fiscal year;
(13) A penalty equal to the amount of the State's Welfare-to-Work
formula grant for failure to meet its basic MOE requirement during a
year in which it receives the formula grant; and
(14) A penalty of not less than one percent and not more than five
percent of the adjusted SFAG for failure to impose penalties properly
against individuals who refuse to engage in required work in accordance
with section 407 of the Act.
(b) In the event of multiple penalties for a fiscal year, we will
add all applicable penalty percentages together. We will then assess
the penalty amount against the adjusted SFAG that would have been
payable to the State if we had assessed no penalties. As a final step,
we will subtract other (fixed) penalty amounts from the adjusted SFAG.
(c)(1) We will take the penalties specified in paragraphs (a)(1),
(a)(2) and (a)(7) of this section by reducing the SFAG payable for the
quarter that immediately follows our final decision.
(2) We will take the penalties specified in paragraphs (a)(3),
(a)(4), (a)(5), (a)(6), (a)(8), (a)(9), (a)(10), (a)(11), (a)(12),
(a)(13), and (a)(14) of this section by reducing the SFAG payable for
the fiscal year that immediately follows our final decision.
(d) When imposing the penalties in paragraph (a) of this section,
the total reduction in an affected State's quarterly SFAG amount must
not exceed 25 percent. If this 25-percent limit prevents the recovery
of the full penalty amount imposed on a State during a quarter or a
fiscal year, as appropriate, we will apply the remaining amount of the
penalty to the SFAG payable for the immediately succeeding quarter
until we recover the full penalty amount.
(e)(1) In the immediately succeeding fiscal year, a State must
expend additional State funds to replace any reduction in the SFAG
resulting from penalties.
(2) The State must document compliance with this replacement
provision on its TANF Financial Report (or Territorial Financial
Report).
Sec. 262.2 When do the TANF penalty provisions apply?
(a) A State will be subject to the penalties specified in
Sec. 262.1(a)(1), (2), (7), (8), (9), (10), (11), (12), (13), and (14)
for conduct occurring on and after the first day the State operates the
TANF program.
(b) A State will be subject to the penalties specified in
Sec. 262.1(a)(3), (4), (5), and (6) for conduct occurring on and after
July 1, 1997, or the date that is six months after the first day the
State operates the TANF program, whichever is later.
(c) For the time period prior to October 1, 1999, we will assess
State conduct as specified in Sec. 260.40(b) of this chapter.
Sec. 262.3 How will we determine if a State is subject to a penalty?
(a)(1) We will use the single audit under OMB Circular A-133, in
conjunction with other reviews, audits, and data sources, as
appropriate, to determine if a State is subject to a penalty for
misusing Federal TANF funds (Sec. 263.10 of this chapter),
intentionally misusing Federal TANF funds (Sec. 263.12 of this
chapter), failing to participate in IEVS (Sec. 264.10 of this chapter),
failing to comply with paternity establishment and child support
requirements (Sec. 264.31 of this chapter), failing to maintain
assistance to an adult single custodial parent who cannot obtain child
care for child under six (Sec. 261.57 of this chapter), and failing to
reduce assistance to a recipient who refuses without good cause to work
(Sec. 261.54 of this chapter).
(2) We will also use the single audit as a secondary method of
determining if a State is subject to other penalties if an audit
detects lack of compliance in other penalty areas.
(b)(1) We will use the TANF Data Report required under part 265 of
this chapter to determine if a State failed to meet participation rates
(Secs. 261.21 and 261.23 of this chapter) or failed to comply with the
five-year limit on Federal assistance (Sec. 264.1 of this chapter).
(2) Data in these reports are subject to our verification in
accordance with Sec. 265.7 of this chapter.
(c)(1) We will use the TANF Financial Report (or, as applicable,
the Territorial Financial Report) as the primary method for determining
if a State has failed to meet the basic MOE requirement (Sec. 263.8 of
this chapter), meet the Contingency Fund MOE requirement (Sec. 264.76
of this chapter), or replace SFAG reductions with State-only funds
(Sec. 264.50 of this chapter).
(2) Data in these reports are subject to our verification in
accordance with Sec. 265.7 of this chapter.
(d) We will determine that a State is subject to the specific
penalties for failure to perform if we find information in the reports
under paragraphs (b) and (c) of this section to be insufficient to show
compliance or if we determine that the State has not adequately
documented actions verifying that it has met the participation rates or
the time limits.
(e) To determine if a State has met its MOE requirements, we will
also use the supplemental information in the annual report required in
accordance with Sec. 265.9(c) of this chapter.
(f) States must maintain records in accordance with Sec. 92.42 of
this title.
Sec. 262.4 What happens if we determine that a State is subject to a
penalty?
(a) If we determine that a State is subject to a penalty, we will
notify the State agency in writing, specifying which penalty we will
impose and the reasons for the penalty. This notice will:
(1) Specify the penalty provision at issue, including the penalty
amount;
(2) Specify the source of information and the reasons for our
decision;
(3) Invite the State to present its arguments if it believes that
the information or method that we used were in error or were
insufficient or that its actions, in the absence of Federal
regulations, were based on a reasonable interpretation of the statute;
and
(4) Explain how and when the State may submit a reasonable cause
justification under Sec. 262.5 and/or corrective compliance plan under
Sec. 262.6.
(b) Within 60 days of when it receives our notification, the State
may submit a written response that:
(1) Demonstrates that our determination is incorrect because our
information or the method that we used in determining the violation or
the amount of the penalty was in error or was insufficient, or that the
State acted, in the absence of Federal rules, on a reasonable
interpretation of the statute;
[[Page 17892]]
(2) Demonstrates that the State had reasonable cause for failing to
meet the requirement(s); and/or
(3) Provides a corrective compliance plan, pursuant to Sec. 262.6.
(c) If we find that we determined the penalty erroneously, or that
the State has adequately demonstrated that it had reasonable cause for
failing to meet one or more requirements, we will not impose the
penalty.
(d) Reasonable cause and corrective compliance plans are not
available for failing to repay a Federal loan; meet the basic MOE
requirement; meet the Contingency Fund MOE requirement; expend
additional State funds to replace adjusted SFAG reductions due to the
imposition of one or more penalties listed in Sec. 262.1; or maintain
80 percent, or 75 percent, as appropriate, basic MOE during a year in
which the State receives a Welfare-to-Work grant.
(e)(1) If we request additional information from a State that we
need to determine reasonable cause, the State must ordinarily provide
such information within 30 days.
(2) Under unusual circumstances, we may give the State an extension
of the time to respond to our request.
(f)(1)(i) We will notify the State in writing of our findings with
respect to reasonable cause generally within 60 days of the date when
we receive its response to our penalty notice (in accordance with
paragraph (b) of this section).
(ii) If the finding is negative and the State has not yet submitted
a corrective compliance plan, it may do so in response to this notice
in accordance with Sec. 262.6.
(2) We will notify the State of our decision regarding its
corrective compliance plan in accordance with the provisions of
Sec. 262.6(g).
(g) We will impose a penalty in accord with the provisions in
Sec. 262.1(c) after we make our final decision and the appellate
process is completed, if applicable. If there is an appellate decision
upholding the penalty, we will take the penalty and charge interest
back to the date that we formally notified the Governor of the adverse
action pursuant to Sec. 262.7(a)(1).
Sec. 262.5 Under what general circumstances will we determine that a
State has reasonable cause?
(a) We will not impose a penalty against a State if we determine
that the State had reasonable cause for its failure. The general
factors a State may use to claim reasonable cause include:
(1) Natural disasters and other calamities (e.g., hurricanes,
earthquakes, fire) whose disruptive impact was so significant as to
cause the State's failure;
(2) Formally issued Federal guidance that provided incorrect
information resulting in the State's failure; or
(3) Isolated problems of minimal impact that are not indicative of
a systemic problem.
(b)(1) We will grant reasonable cause to a State that:
(i) Clearly demonstrates that its failure to submit complete,
accurate, and timely data, as required at Sec. 265.8 of this chapter,
for one or both of the first two quarters of FY 2000, is attributable,
in significant part, to its need to divert critical system resources to
Year 2000 compliance activities; and
(ii) Submits complete and accurate data for the first two quarters
of FY 2000 by June 30, 2000.
(2) A State may also use the additional factors for claiming
reasonable cause for failure to comply with the five-year limit on
Federal assistance or the minimum participation rates, as specified at
Secs. 261.52 and 264.3 and subpart B of part 260 of this chapter.
(c) In determining reasonable cause, we will consider the efforts
the State made to meet the requirement, as well as the duration and
severity of the circumstances that led to the State's failure to
achieve the requirement.
(d)(1) The burden of proof rests with the State to fully explain
the circumstances and events that constitute reasonable cause for its
failure to meet a requirement.
(2) The State must provide us with sufficient relevant information
and documentation to substantiate its claim of reasonable cause.
Sec. 262.6 What happens if a State does not demonstrate reasonable
cause?
(a) A State may accept the penalty or enter into a corrective
compliance plan that will correct or discontinue the violation in order
to avoid the penalty if:
(1) A State does not claim reasonable cause; or
(2) We find that the State does not have reasonable cause.
(b) A State that does not claim reasonable cause will have 60 days
from receipt of our notice described in Sec. 262.4(a) to submit its
corrective compliance plan.
(c) A State that unsuccessfully claimed reasonable cause will have
60 days from the date that it received our second notice, described in
Sec. 262.4(f), to submit its corrective compliance plan.
(d) The corrective compliance plan must include:
(1) A complete analysis of why the State did not meet the
requirements;
(2) A detailed description of how the State will correct or
discontinue, as appropriate, the violation in a timely manner;
(3) The time period in which the violation will be corrected or
discontinued;
(4) The milestones, including interim process and outcome goals,
that the State will achieve to assure it comes into compliance within
the specified time period; and
(5) A certification by the Governor that the State is committed to
correcting or discontinuing the violation, in accordance with the plan.
(e) The corrective compliance plan must correct or discontinue the
violation within the following time frames:
(1) For a penalty under Sec. 262.1(a)(4) or (a)(9), by the end of
the first fiscal year ending at least six months after our receipt of
the corrective compliance plan; and
(2) For the remaining penalties, by a date the State proposes that
reflects the minimum period necessary to achieve compliance.
(f) During the 60-day period following our receipt of the State's
corrective compliance plan, we may request additional information and
consult with the State on modifications to the plan.
(g) We will accept or reject the State's corrective compliance
plan, in writing, within 60 days of our receipt of the plan, although a
corrective compliance plan is deemed to be accepted if we take no
action during the 60-day period following our receipt of the plan.
(h) If a State does not submit an acceptable corrective compliance
plan on time, we will assess the penalty immediately.
(i) We will not impose a penalty against a State with respect to
any violation covered by a corrective compliance plan that we accept if
the State completely corrects or discontinues, as appropriate, the
violation within the period covered by the plan.
(j) Under limited circumstances, we may reduce the penalty if the
State fails to completely correct or discontinue the violation pursuant
to its corrective compliance plan and in a timely manner. To receive a
reduced penalty, the State must demonstrate that it met one or both of
the following conditions:
(1) Although it did not achieve full compliance, the State made
significant progress towards correcting or discontinuing the violation;
or
(2) The State's failure to comply fully was attributable to either
a natural disaster or regional recession.
[[Page 17893]]
Sec. 262.7 How can a State appeal our decision to take a penalty?
(a)(1) We will formally notify the Governor and the State agency of
an adverse action (i.e., the reduction in the SFAG) within five days
after we determine that a State is subject to a penalty under parts 261
through 265 of this chapter.
(2) Such notice will include the factual and legal basis for taking
the penalty in sufficient detail for the State to be able to respond in
an appeal.
(b)(1) The State may file an appeal of the action, in whole or in
part, with the HHS Departmental Appeals Board (the Board) within 60
days after the date it receives notice of the adverse action. The State
must submit its brief and supporting documents when it files its
appeal.
(2) The State must send a copy of the appeal, and any supplemental
filings, to the Office of the General Counsel, Children, Families and
Aging Division, Room 411-D, 200 Independence Avenue, S.W., Washington,
D.C. 20201.
(c) We will submit our reply brief and supporting documentation
within 45 days of the receipt of the State's submission under paragraph
(b) of this section.
(d) The State may submit a reply and any supporting documentation
within 21 days of its receipt of our reply under paragraph (c) of this
section.
(e) The appeal to the Board must follow the provisions of the rules
under this section and those at Secs. 16.2, 16.9, 16.10, and 16.13-
16.22 of this title, to the extent that they are consistent with this
section.
(f) The Board will consider an appeal filed by a State on the basis
of the documentation and briefs submitted, along with any additional
information the Board may require to support a final decision. Such
information may include a hearing if the Board determines that it is
necessary. In deciding whether to uphold an adverse action or any
portion of such action, the Board will conduct a thorough review of the
issues.
(g)(1) A State may obtain judicial review of a final decision by
the Board by filing an action within 90 days after the date of such
decision. It should file this action with the district court of the
United States in the judicial district where the State agency is
located or in the United States District Court for the District of
Columbia.
(2) The district court will review the final decision of the Board
on the record established in the administrative proceeding, in
accordance with the standards of review prescribed by 5 U.S.C. 706(2).
The court will base its review on the documents and supporting data
submitted to the Board.
PART 263--EXPENDITURES OF STATE AND FEDERAL TANF FUNDS
Sec.
263.0 What definitions apply to this part?
Subpart A--What Rules Apply to a State's Maintenance of Effort?
263.1 How much State money must a State expend annually to meet the
basic MOE requirement?
263.2 What kinds of State expenditures count toward meeting a
State's basic MOE expenditure requirement?
263.3 When do child care expenditures count?
263.4 When do educational expenditures count?
263.5 When do expenditures in State-funded programs count?
263.6 What kinds of expenditures do not count?
263.8 What happens if a State fails to meet the basic MOE
requirement?
263.9 May a State avoid a penalty for failing the basic MOE
requirement through reasonable cause or through corrective
compliance?
Subpart B--What Rules Apply to the Use of Federal TANF Funds?
263.10 What actions would we take against a State if it uses
Federal TANF funds in violation of the Act?
263.11 What uses of Federal TANF funds are improper?
263.12 How will we determine if a State intentionally misused
Federal TANF funds?
263.13 Is there a limit on the amount of Federal TANF funds that a
State may spend on administrative costs?
Subpart C--What Rules Apply to Individual Development Accounts?
263.20 What definitions apply to Individual Development Accounts
(IDAs)?
263.21 May a State use the TANF grant to fund IDAs?
263.22 Are there any restrictions on IDA funds?
263.23 How does a State prevent a recipient from using the IDA
account for unqualified purposes?
Authority: 42 U.S.C. 604, 607, 609, and 862a.
Sec. 263.0 What definitions apply to this part?
(a) Except as noted in Sec. 263.2(d), the general TANF definitions
at Sec. 260.30 through Sec. 260.33 of this chapter apply to this part.
(b) The term ``administrative costs'' means costs necessary for the
proper administration of the TANF program or separate State programs.
(1) It excludes direct costs of providing program services.
(i) For example, it excludes costs of providing diversion benefits
and services, providing program information to clients, screening and
assessments, development of employability plans, work activities, post-
employment services, work supports, and case management. It also
excludes costs for contracts devoted entirely to such activities.
(ii) It excludes the salaries and benefits costs for staff
providing program services and the direct administrative costs
associated with providing the services, such as the costs for supplies,
equipment, travel, postage, utilities, rental of office space and
maintenance of office space.
(2) It includes costs for general administration and coordination
of these programs, including contract costs and all indirect (or
overhead) costs. Examples of administrative costs include:
(i) Salaries and benefits of staff performing administrative and
coordination functions;
(ii) Activities related to eligibility determinations;
(iii) Preparation of program plans, budgets, and schedules;
(iv) Monitoring of programs and projects;
(v) Fraud and abuse units;
(vi) Procurement activities;
(vii) Public relations;
(viii) Services related to accounting, litigation, audits,
management of property, payroll, and personnel;
(ix) Costs for the goods and services required for administration
of the program such as the costs for supplies, equipment, travel,
postage, utilities, and rental of office space and maintenance of
office space, provided that such costs are not excluded as a direct
administrative cost for providing program services under paragraph
(b)(1) of this section;
(x) Travel costs incurred for official business and not excluded as
a direct administrative cost for providing program services under
paragraph (b)(1) of this section;
(xi) Management information systems not related to the tracking and
monitoring of TANF requirements (e.g., for a personnel and payroll
system for State staff); and
(xii) Preparing reports and other documents.
Subpart A--What Rules Applies to a State's Maintenance of Effort?
Sec. 263.1 How much State money must a State expend annually to meet
the basic MOE requirement?
(a)(1) The minimum basic MOE for a fiscal year is 80 percent of a
State's historic State expenditures.
(2) However, if a State meets the minimum work participation rate
[[Page 17894]]
requirements in a fiscal year, as required under Secs. 261.21 and
261.23 of this chapter, after adjustment for any caseload reduction
credit under Sec. 261.41 of this chapter, then the minimum basic MOE
for that fiscal year is 75 percent of the State's historic State
expenditures.
(3) A State that does not meet the minimum participation rate
requirements in a fiscal year, as required under Secs. 261.21 and
261.23 of this chapter (after adjustment for any caseload reduction
credit under Sec. 261.41 of this chapter), but which is granted full or
partial penalty relief for that fiscal year, must still meet the
minimum basic MOE specified under paragraph (a)(1) of this section.
(b) The basic MOE level also depends on whether a Tribe or
consortium of Tribes residing in a State has received approval to
operate its own TANF program. The State's basic MOE level for a fiscal
year will be reduced by the same percentage as we reduced the SFAG as
the result of any Tribal Family Assistance Grants awarded to Tribal
grantees in the State for that year.
Sec. 263.2 What kinds of State expenditures count toward meeting a
State's basic MOE expenditure requirement?
(a) Expenditures of State funds in TANF or separate State programs
may count if they are made for the following types of benefits or
services:
(1) Cash assistance, including the State's share of the assigned
child support collection that is distributed to the family, and
disregarded in determining eligibility for, and amount of the TANF
assistance payment;
(2) Child care assistance (see Sec. 263.3);
(3) Education activities designed to increase self-sufficiency, job
training, and work (see Sec. 263.4);
(4) Any other use of funds allowable under section 404(a)(1) of the
Act (such as nonmedical treatment services for alcohol and drug abuse
and some medical treatment services, provided that the State has not
commingled its MOE funds with Federal TANF funds to pay for the
services), if consistent with the goals at Sec. 260.20 of this chapter;
and
(5)(i) Administrative costs for activities listed in paragraphs
(a)(1) through (a)(4) of this section, not to exceed 15 percent of the
total amount of countable expenditures for the fiscal year.
(ii) Costs for information technology and computerization needed
for tracking or monitoring required by or under part IV-A of the Act do
not count towards the limit in paragraph (5)(i) of this section, even
if they fall within the definition of ``administrative costs.''
(A) This exclusion covers the costs for salaries and benefits of
staff who develop, maintain, support or operate the portions of
information technology or computer systems used for tracking and
monitoring.
(B) It also covers the costs of contracts for development,
maintenance, support, or operation of those portions of information
technology or computer systems used for tracking or monitoring.
(b) The benefits or services listed under paragraph (a) of this
section count only if they have been provided to or on behalf of
eligible families. An ``eligible family,'' as defined by the State,
must:
(1) Be comprised of citizens or aliens who:
(i) Are eligible for TANF assistance;
(ii) Would be eligible for TANF assistance, but for the time limit
on the receipt of federally funded assistance; or
(iii) Would be eligible for TANF assistance, but for the
application of title IV of PRWORA;
(2) Include a child living with a custodial parent or other adult
caretaker relative (or consist of a pregnant individual); and
(3) Be financially eligible according to the appropriate income and
resource (when applicable) standards established by the State and
contained in its TANF plan.
(c) Benefits or services listed under paragraph (a) of this section
provided to a family that meets the criteria under paragraphs (b)(1)
through (b)(3) of this section, but who became ineligible solely due to
the time limitation given under Sec. 264.1 of this chapter, may also
count.
(d) Expenditures for the benefits or services listed under
paragraph (a) of this section count whether or not the benefit or
service meets the definition of assistance under Sec. 260.31 of this
chapter.
(e)(1) The expenditures for benefits or services in State-funded
programs listed under paragraph (a) of this section count only if they
also meet the requirements of Sec. 263.5.
(2) Expenditures that fall within the prohibitions in Sec. 263.6 do
not count.
Sec. 263.3 When do child care expenditures count?
(a) State funds expended to meet the requirements of the CCDF
Matching Fund (i.e., as match or MOE amounts) may also count as basic
MOE expenditures up to the State's child care MOE amount that must be
expended to qualify for CCDF matching funds.
(b) Child care expenditures that have not been used to meet the
requirements of the CCDF Matching Fund (i.e., as match or MOE amounts),
or any other Federal child care program, may also count as basic MOE
expenditures. The limit described in paragraph (a) of this section does
not apply.
(c) The child care expenditures described in paragraphs (a) and (b)
of this section must be made to, or on behalf of, eligible families, as
defined in Sec. 263.2(b).
Sec. 263.4 When do educational expenditures count?
(a) Expenditures for educational activities or services count if:
(1) They are provided to eligible families (as defined in
Sec. 263.2(b)) to increase self-sufficiency, job training, and work;
and
(2) They are not generally available to other residents of the
State without cost and without regard to their income.
(b) Expenditures on behalf of eligible families for educational
services or activities provided through the public education system do
not count unless they meet the requirements under paragraph (a) of this
section.
Sec. 263.5 When do expenditures in State-funded programs count?
(a) If a current State or local program also operated in FY 1995,
and expenditures in this program would have been previously authorized
and allowable under the former AFDC, JOBS, Emergency Assistance, Child
Care for AFDC recipients, At-Risk Child Care, or Transitional Child
Care programs, then current fiscal year expenditures in this program
count in their entirety, provided that the State has met all
requirements under Sec. 263.2.
(b) If a current State or local program also operated in FY 1995,
and expenditures in this program would not have been previously
authorized and allowable under the former AFDC, JOBS, Emergency
Assistance, Child Care for AFDC recipients, At-Risk Child Care, or
Transitional Child Care programs, then countable expenditures are
limited to the amount by which total current fiscal year expenditures
that meet the requirements under Sec. 263.2 exceed total State
expenditures in the program during FY 1995.
Sec. 263.6 What kinds of expenditures do not count?
The following kinds of expenditures do not count:
(a) Expenditures of funds that originated with the Federal
government;
(b) State expenditures under the Medicaid program under title XIX
of the Act;
(c) Expenditures that a State makes as a condition of receiving
Federal funds under another program, except as provided under
Sec. 263.3;
[[Page 17895]]
(d) Expenditures that a State made in a prior fiscal year;
(e) Expenditures that a State uses to match Federal Welfare-to-Work
funds provided under section 403(a)(5) of the Act; and
(f) Expenditures that a State makes in the TANF program to replace
the reductions in the SFAG as a result of penalties, pursuant to
Sec. 264.50 of this chapter.
Sec. 263.8 What happens if a State fails to meet the basic MOE
requirement?
(a) If any State fails to meet its basic MOE requirement for any
fiscal year, then we will reduce dollar-for-dollar the amount of the
SFAG payable to the State for the following fiscal year.
(b) If a State fails to meet its basic MOE requirement for any
fiscal year, and the State received a WtW formula grant under section
403(a)(5)(A) of the Act for the same fiscal year, we will also reduce
the amount of the SFAG payable to the State for the following fiscal
year by the amount of the WtW formula grant paid to the State.
Sec. 263.9 May a State avoid a penalty for failing to meet the basic
MOE requirement through reasonable cause or corrective compliance?
No. The reasonable cause and corrective compliance provisions at
Secs. 262.4, 262.5, and 262.6 of this chapter do not apply to the
penalties in Sec. 263.8.
Subpart B--What Rules Apply to the Use of Federal TANF Funds?
Sec. 263.10 What actions would we take against a State if it uses
Federal TANF funds in violation of the Act?
(a) If a State misuses its Federal TANF funds, we will reduce the
SFAG payable for the immediately succeeding fiscal year quarter by the
amount misused.
(b) If the State fails to demonstrate that the misuse was not
intentional, we will further reduce the SFAG payable for the
immediately succeeding fiscal year quarter in an amount equal to five
percent of the adjusted SFAG.
(c) The reasonable cause and corrective compliance provisions of
Secs. 262.4 through 262.6 of this chapter apply to the penalties
specified in paragraphs (a) and (b) of this section.
Sec. 263.11 What uses of Federal TANF funds are improper?
(a) States may use Federal TANF funds for expenditures:
(1) That are reasonably calculated to accomplish the purposes of
TANF, as specified at Sec. 260.20 of this chapter; or
(2) For which the State was authorized to use IV-A or IV-F funds
under prior law, as in effect on September 30, 1995 (or, at the option
of the State, August 21, 1996).
(b) We will consider use of funds in violation of paragraph (a) of
this section, sections 404 and 408 and other provisions of the Act,
section 115(a)(1) of PRWORA, the provisions of part 92 of this title,
or OMB Circular A-87 to be misuse of funds.
Sec. 263.12 How will we determine if a State intentionally misused
Federal TANF funds?
(a) The State must show, to our satisfaction, that it used these
funds for purposes that a reasonable person would consider to be within
the purposes of the TANF program (as specified at Sec. 260.20 of this
chapter) and consistent with the provisions listed in Sec. 263.11.
(b) We may determine that a State misused funds intentionally if
there is supporting documentation, such as Federal guidance or policy
instructions, precluding the use of Federal TANF funds for such
purpose.
(c) We may also determine that a State intentionally misused funds
if the State continues to use the funds in the same or similarly
improper manner after receiving notification that we had determined
such use to be improper.
Sec. 263.13 Is there a limit on the amount of Federal TANF funds that
a State may spend on administrative costs?
(a)(i) Yes, a State may not spend more than 15 percent of the
amount that it receives as its adjusted SFAG, or under other provisions
of section 403 of the Act, on ``administrative costs,'' as defined at
Sec. 263.0(b).
(ii) Any violation of the limitation in paragraph (a)(i) of this
section will constitute a misuse of funds under Sec. 263.11(b).
(b) Expenditures on the information technology and computerization
needed for tracking and monitoring required by or under part IV-A of
the Act do not count towards the limit specified in paragraph (a) of
this section.
(1) This exclusion covers the costs for salaries and benefits of
staff who develop, maintain, support or operate the portions of
information technology or computer systems used for tracking and
monitoring.
(2) It also covers the costs of contracts for development,
maintenance. support, or operation of those portions of information
technology or computer systems used for tracking or monitoring.
Subpart C--What Rules Apply to Individual Development Accounts?
Sec. 263.20 What definitions apply to Individual Development Accounts
(IDAs)?
The following definitions apply with respect to IDAs:
Date of acquisition means the date on which a binding contract to
obtain, construct, or reconstruct the new principal residence is
entered into.
Eligible educational institution means an institution described in
section 481(a)(1) or section 1201(a) of the Higher Education Act of
1965 (20 U.S.C. 1088(a)(1) or 1141(a)), as such sections were in effect
on August 21, 1996. Also, an area vocational education school (as
defined in subparagraph (C) or (D) of section 521(4) of the Carl D.
Perkins Vocational and Applied Technology Education Act (20 U.S.C.
2471(4)) that is in any State (as defined in section 521(33) of such
Act), as such sections were in effect on August 21, 1996.
Individual Development Account (IDA) means an account established
by, or for, an individual who is eligible for assistance under the TANF
program, to allow the individual to accumulate funds for specific
purposes. Notwithstanding any other provision of law (other than the
Internal Revenue Code of 1986), the funds in an IDA account must be
disregarded in determining eligibility for, or the amount of,
assistance in any Federal means-tested programs.
Post-secondary educational expenses means a student's tuition and
fees required for the enrollment or attendance at an eligible
educational institution, and required course fees, books, supplies, and
equipment required at an eligible educational institution.
Qualified acquisition costs means the cost of obtaining,
constructing, or reconstructing a residence. The term includes any
usual or reasonable settlement, financing, or other closing costs.
Qualified business means any business that does not contravene
State law or public policy.
Qualified business capitalization expenses means business expenses
pursuant to a qualified plan.
Qualified entity means a nonprofit, tax-exempt organization, or a
State or local government agency that works cooperatively with a
nonprofit, tax-exempt organization.
Qualified expenditures means expenses entailed in a qualified plan,
including capital, plant equipment, working capital, and inventory
expenses.
[[Page 17896]]
Qualified first-time home buyer means a taxpayer (and, if married,
the taxpayer's spouse) who has not owned a principal residence during
the three-year period ending on the date of acquisition of the new
principal residence.
Qualified plan means a business plan that is approved by a
financial institution, or by a nonprofit loan fund having demonstrated
fiduciary integrity. It includes a description of services or goods to
be sold, a marketing plan, and projected financial statements, and it
may require the eligible recipient to obtain the assistance of an
experienced entrepreneurial advisor.
Qualified principal residence means the place a qualified first-
time home buyer will reside in accordance with the meaning of section
1034 of the Internal Revenue Code of 1986 (26 U.S.C. 1034). The
qualified acquisition cost of the residence cannot exceed the average
purchase price of similar residences in the area.
Sec. 263.21 May a State use the TANF grant to fund IDAs?
If the State elects to operate an IDA program, then the States may
use Federal TANF funds or WtW funds to fund IDAs for individuals who
are eligible for TANF assistance and exercise flexibility within the
limits of Federal regulations and the statute.
Sec. 263.22 Are there any restrictions on IDA funds?
The following restrictions apply to IDA funds:
(a) A recipient may deposit only earned income into an IDA.
(b) A recipient's contributions to an IDA may be matched by, or
through, a qualified entity.
(c) A recipient may withdraw funds only for the following reasons:
(1) To cover post-secondary education expenses, if the amount is
paid directly to an eligible educational institution;
(2) For the recipient to purchase a first home, if the amount is
paid directly to the person to whom the amounts are due and it is a
qualified acquisition cost for a qualified principal residence by a
qualified first-time home buyer; or
(3) For business capitalization, if the amounts are paid directly
to a business capitalization account in a federally insured financial
institution and used for a qualified business capitalization expense.
Sec. 263.23 How does a State prevent a recipient from using the IDA
account for unqualified purposes?
To prevent recipients from using the IDA account improperly, States
may do the following:
(a) Count withdrawals as earned income in the month of withdrawal
(unless already counted as income);
(b) Count withdrawals as resources in determining eligibility; or
(c) Take such other steps as the State has established in its State
plan or written State policies to deter inappropriate use.
PART 264--OTHER ACCOUNTABILITY PROVISIONS
Sec.
264.0 What definitions apply to this part?
Subpart A--What Specific Rules Apply for Other Program Penalties?
264.1 What restrictions apply to the length of time Federal TANF
assistance may be provided?
264.2 What happens if a State does not comply with the five-year
limit?
264.3 How can a State avoid a penalty for failure to comply with
the five-year limit?
264.10 Must States do computer matching of data records under IEVS
to verify recipient information?
264.11 How much is the penalty for not participating in IEVS?
264.30 What procedures exist to ensure cooperation with the child
support enforcement requirements?
264.31 What happens if a State does not comply with the IV-D
sanction requirement?
264.40 What happens if a State does not repay a Federal loan?
264.50 What happens if, in a fiscal year, a State does not expend,
with its own funds, an amount equal to the reduction to the adjusted
SFAG resulting from a penalty?
Subpart B--What are the Requirements for the Contingency Fund?
264.70 What makes a State eligible to receive a provisional payment
of contingency funds?
264.71 What determines the amount of the provisional payment of
contingency funds that will be made to a State?
264.72 What requirements are imposed on a State if it receives
contingency funds?
264.73 What is an annual reconciliation?
264.74 How will we determine the Contingency Fund MOE level for the
annual reconciliation?
264.75 For the annual reconciliation, what are qualifying State
expenditures?
264.76 What action will we take if a State fails to remit funds
after failing to meet its required Contingency Fund MOE level?
264.77 How will we determine if a State met its Contingency Fund
expenditure requirements?
Subpart C--What Rules Pertain Specifically to the Spending Levels of
the Territories?
264.80 If a Territory receives Matching Grant funds, what funds
must it expend?
264.81 What expenditures qualify for Territories to meet the
Matching Grant MOE requirement?
264.82 What expenditures qualify for meeting the Matching Grant FAG
amount requirement?
264.83 How will we know if a Territory failed to meet the Matching
Grant funding requirements at Sec. 264.80?
264.84 What will we do if a Territory fails to meet the Matching
Grant funding requirements at Sec. 264.80?
264.85 What rights of appeal are available to the Territories?
Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 609, 654, 1302,
1308, and 1337.
Sec. 264.0 What definitions apply to this part?
(a) The general TANF definitions at Secs. 260.30 through 260.33 of
this chapter apply to this part.
(b) The following definitions also apply to this part:
Countable State Expenditures means the amount of qualifying State
expenditures, as defined in Sec. 264.75, plus the amount of contingency
funds expended by the State in the fiscal year.
FAG means the Family Assistance Grant granted to a Territory
pursuant to section 403(a)(1) of the Act. It is thus the Territorial
equivalent of the SFAG, as defined at Sec. 260.30 of this chapter.
Food Stamp Trigger means a State's monthly average of individuals
participating in the Food Stamp program (as of the last day of the
month) for the most recent three-month period that exceeds its monthly
average of individuals in the corresponding three-month period in the
Food Stamp caseload for FY 1994 or FY 1995, whichever is less, by at
least ten percent, assuming that the immigrant provisions of title IV
and the Food Stamp provisions under title VII of PRWORA had been in
effect in those years.
Unemployment Trigger means a State's average unemployment rate for
the most recent three-month period of at least 6.5 percent and equal to
at least 110 percent of the State's unemployment rate for the
corresponding three-month period in either of the two preceding
calendar years.
Subpart A--What Specific Rules Apply for Other Program Penalties?
Sec. 264.1 What restrictions apply to the length of time Federal TANF
assistance may be provided?
(a)(1) Subject to the exceptions in this section, no State may use
any of its Federal TANF funds to provide assistance (as defined in
Sec. 260.31 of this chapter) to a family that includes an adult head-
of-household or a spouse of the head-of-household who has received
Federal assistance for a total of five years (i.e., 60 cumulative
months, whether or not consecutive).
[[Page 17897]]
(2) The provision in paragraph (a)(1) of this section also applies
to a family that includes a pregnant minor head-of-household, minor
parent head-of-household, or spouse of such a head-of-household who has
received Federal assistance for a total of five years.
(3) Notwithstanding the provisions of paragraphs (a)(1) and (a)(2)
of this section, a State may provide assistance under WtW, pursuant to
section 403(a)(5) of the Act, to a family that is ineligible for TANF
solely because it has reached the five-year time limit.
(b)(1) States must not count toward the five-year limit:
(i) Any month of receipt of assistance by an individual who is not
the head-of-household or married to the head-of-household;
(ii) Any month of receipt of assistance by an adult while living in
Indian country (as defined in section 1151 of title 18, United States
Code) or a Native Alaskan Village where at least 50 percent of the
adults were not employed; and
(iii) Any month for which an individual receives only noncash
assistance provided under WtW, pursuant to section 403(a)(5) of the
Act.
(2) Only months of assistance that are paid for with Federal TANF
funds (in whole or in part) count towards the five-year time limit.
(c) States have the option to extend assistance paid for by Federal
TANF funds beyond the five-year limit for up to 20 percent of the
average monthly number of families receiving assistance during the
fiscal year or the immediately preceding fiscal year, whichever the
State elects. States are permitted to extend assistance to families
only on the basis of:
(1) Hardship, as defined by the State; or
(2) The fact that the family includes someone who has been
battered, or subject to extreme cruelty based on the fact that the
individual has been subjected to:
(i) Physical acts that resulted in, or threatened to result in,
physical injury to the individual;
(ii) Sexual abuse;
(iii) Sexual activity involving a dependent child;
(iv) Being forced as the caretaker relative of a dependent child to
engage in nonconsensual sexual acts or activities;
(v) Threats of, or attempts at, physical or sexual abuse;
(vi) Mental abuse; or
(vii) Neglect or deprivation of medical care.
(d) If a State opts to extend assistance to part of its caseload as
permitted under paragraph (c) of this section, it would grant such an
extension to a specific family once a head-of-household or spouse of a
head-of-household in the family has received 60 cumulative months of
assistance.
(e) To determine whether a State has failed to comply with the
five-year limit on Federal assistance established in paragraph (c) of
this section for a fiscal year, we would divide the average monthly
number of families with a head-of-household or a spouse of a head-of-
household who has received assistance for more than 60 cumulative
months by the average monthly number of all families that received
assistance during that fiscal year or during the immediately preceding
fiscal year.
(f) If the five-year limit is inconsistent with a State's waiver
granted under section 1115 of the Act, we will determine State
compliance with the Federal time limit in accordance with the
provisions of subpart C of part 260.
Sec. 264.2 What happens if a State does not comply with the five-year
limit?
If we determine that a State has not complied with the requirements
of Sec. 264.1, we will reduce the SFAG payable to the State for the
immediately succeeding fiscal year by five percent of the adjusted SFAG
unless the State demonstrates to our satisfaction that it had
reasonable cause, or it corrects or discontinues the violation under an
approved corrective compliance plan.
Sec. 264.3 How can a State avoid a penalty for failure to comply with
the five-year limit?
(a) We will not impose the penalty if the State demonstrates to our
satisfaction that it had reasonable cause for failing to comply with
the five-year limit on Federal assistance or it achieves compliance
under a corrective compliance plan, pursuant to Secs. 262.5 and 262.6
of this chapter.
(b) In addition, we will determine a State has reasonable cause if
it demonstrates that it failed to comply with the five-year limit on
Federal assistance of federally recognized good cause domestic violence
waivers provided to victims of domestic violence in accordance with the
provisions of subpart B of part 260.
Sec. 264.10 Must States do computer matching of data records under
IEVS to verify recipient information?
(a) Pursuant to section 1137 of the Act and subject to paragraph
(a)(2) of that section, States must meet the requirements of IEVS and
request the following information from the Internal Revenue Service
(IRS), the State Wage Information Collections Agency (SWICA), the
Social Security Administration (SSA), and the Immigration and
Naturalization Service (INS):
(1) IRS unearned income;
(2) SWICA employer quarterly reports of income and unemployment
insurance benefit payments;
(3) IRS earned income maintained by SSA; and
(4) Immigration status information maintained by the INS.
(b) The requirements at Secs. 205.51 through 205.62 of this chapter
also apply to the TANF IEVS requirement.
Sec. 264.11 How much is the penalty for not participating in IEVS?
If we determine that the State has not complied with the
requirements of Sec. 264.10, we will reduce the SFAG payable for the
immediately succeeding fiscal year by two percent of the adjusted SFAG
unless the State demonstrates to our satisfaction that it had
reasonable cause or achieved compliance under a corrective compliance
plan pursuant to Secs. 262.5 and 262.6 of this chapter.
Sec. 264.30 What procedures exist to ensure cooperation with the child
support enforcement requirements?
(a)(1) The State agency must refer all appropriate individuals in
the family of a child, for whom paternity has not been established or
for whom a child support order needs to be established, modified or
enforced, to the child support enforcement agency (i.e., the IV-D
agency).
(2) Referred individuals must cooperate in establishing paternity
and in establishing, modifying, or enforcing a support order with
respect to the child.
(b) If the IV-D agency determines that an individual is not
cooperating, and the individual does not qualify for a good cause or
other exception established by the State agency responsible for making
good cause determinations in accordance with section 454(29) of the Act
or for a good cause domestic violence waiver granted in accordance with
Sec. 260.52 of this chapter, then the IV-D agency must notify the IV-A
agency promptly.
(c) The IV-A agency must then take appropriate action by:
(1) Deducting from the assistance that would otherwise be provided
to the family of the individual an amount equal to not less than 25
percent of the amount of such assistance; or
(2) Denying the family any assistance under the program.
[[Page 17898]]
Sec. 264.31 What happens if a State does not comply with the IV-D
sanction requirement?
(a)(1) If we find that, for a fiscal year, the State IV-A agency
did not enforce the penalties against recipients required under
Sec. 264.30(c), we will reduce the SFAG payable for the next fiscal
year by one percent of the adjusted SFAG.
(2) Upon a finding for a second fiscal year, we will reduce the
SFAG by two percent of the adjusted SFAG for the following year.
(3) A third or subsequent finding will result in the maximum
penalty of five percent.
(b) We will not impose a penalty if:
(1) The State demonstrates to our satisfaction that it had
reasonable cause pursuant to Sec. 262.5 of this chapter; or
(2) The State achieves compliance under a corrective compliance
plan pursuant to Sec. 262.6 of this chapter.
Sec. 264.40 What happens if a State does not repay a Federal loan?
(a) If a State fails to repay the amount of principal and interest
due at any point under a loan agreement developed pursuant to section
406 of the Act:
(1) The entire outstanding loan balance, plus all accumulated
interest, becomes due and payable immediately; and
(2) We will reduce the SFAG payable for the immediately succeeding
fiscal year quarter by the outstanding loan amount plus interest.
(b) Neither the reasonable cause provisions at Sec. 262.5 of this
chapter nor the corrective compliance plan provisions at Sec. 262.6 of
this chapter apply when a State fails to repay a Federal loan.
Sec. 264.50 What happens if, in a fiscal year, a State does not
expend, with its own funds, an amount equal to the reduction to the
adjusted SFAG resulting from a penalty?
(a)(1) When we withhold Federal TANF funds from a State during a
fiscal year because of other penalty actions listed at Sec. 262.1 of
this chapter, the State must replace these Federal TANF funds with
State funds during the subsequent fiscal year.
(2) If the State fails to replace funds during the subsequent year,
then we will assess an additional penalty of no more than two percent
of the adjusted SFAG during the year that follows the subsequent year.
(b) A State must expend such replacement funds under its TANF
program, not under ``separate State programs.''
(c) We will assess a penalty of no more than two percent of the
adjusted SFAG plus the amount equal to the difference between the
amount the State was required to expend and the amount it actually
expended in the fiscal year.
(1) We will assess the maximum penalty amount if the State made no
additional expenditures to compensate for the reductions to its
adjusted SFAG resulting from penalties.
(2) We will reduce the percentage portion of the penalty if the
State has expended some of the amount required. In such case, we will
calculate the applicable percentage portion of the penalty by
multiplying the percentage of the required expenditures that the State
failed to make in the fiscal year by two percent.
(d) The reasonable cause and corrective compliance plan provisions
at Secs. 262.5 and 262.6 of this chapter do not apply to this penalty.
Subpart B--What Are the Requirements for the Contingency Fund?
Sec. 264.70 What makes a State eligible to receive a provisional
payment of contingency funds?
(a) In order to receive a provisional payment of contingency funds,
a State must:
(1) Be a needy State, as defined in Sec. 260.30 of this chapter;
and
(2) Submit to ACF a request for contingency funds for an eligible
month (i.e., a month in which a State is a needy State).
(b) A determination that a State is a needy State for a month makes
that State eligible to receive a provisional payment of contingency
funds for two consecutive months.
(c) Only the 50 States and the District of Columbia may receive
contingency funds. Territories and Tribal TANF grantees are not
eligible.
Sec. 264.71 What determines the amount of the provisional payment of
contingency funds that will be made to a State?
We will make a provisional payment to a State that meets the
requirements of Sec. 264.70, within the following limits:
(a) The amount that we will pay to a State in a fiscal year will
not exceed an amount equal to \1/12\ times 20 percent of that State's
SFAG for that fiscal year, multiplied by the number of eligible months
for which the State has requested contingency funds;
(b) The total amount that we will pay to all States during a fiscal
year will not exceed the amount appropriated for this purpose; and
(c) We will pay contingency funds to States in the order in which
we receive requests for such payments.
Sec. 264.72 What requirements are imposed on a State if it receives
contingency funds?
(a)(1) A State must meet a Contingency Fund MOE level of 100
percent of historic State expenditures for FY 1994.
(2) A State must exceed the Contingency Fund MOE level to keep any
of the contingency funds that it received. It may be able to retain a
portion of the amount of contingency funds that match countable State
expenditures, as defined in Sec. 264.0, that are in excess of the
State's Contingency Fund MOE level, after the overall adjustment
required by section 403(b)(6)(C) of the Act.
(b) A State must complete an annual reconciliation, in accordance
with Sec. 264.73, in order to determine how much, if any, of the
contingency funds that it received in a fiscal year it may retain.
(c) If required to remit funds under the annual reconciliation, a
State must remit all (or a portion) of the funds paid to it for a
fiscal year within one year after it has failed to meet either the Food
Stamp trigger or the Unemployment trigger, as defined in Sec. 264.0,
for three consecutive months.
(d) A State must expend contingency funds in the fiscal year in
which they are awarded.
(e) A State may not transfer contingency funds to the Discretionary
Fund of the CCDF or the SSBG.
(f) A State must follow the restrictions and prohibitions in effect
for Federal TANF funds, including the provisions of Sec. 263.11 of this
chapter, in its use of contingency funds.
Sec. 264.73 What is an annual reconciliation?
(a) The annual reconciliation involves the calculation, for a
fiscal year, of:
(1) The amount of a State's qualifying expenditures;
(2) The amount by which a State's countable State expenditures, as
defined in Sec. 264.0, exceed the State's required Contingency Fund MOE
level; and
(3) The amount of contingency funds that the State may retain or
must remit.
(b) If a State exceeded its required Contingency Fund MOE level, it
may be able to retain some or all of the contingency funds that it
received.
(c) A State determines the amount of contingency funds that it may
retain by performing the following calculations:
(1) From the lesser of the following two amounts:
(i) The amount of contingency funds paid to it during the fiscal
year; or
(ii) Its countable State expenditures, as defined in Sec. 264.0,
minus its required Contingency Fund MOE level, multiplied by:
[[Page 17899]]
(A) The State's Federal Medical Assistance Percentage (FMAP)
applicable for the fiscal year for which funds were awarded; and
(B) \1/12\ times the number of months during the fiscal year for
which the State received contingency funds.
(2) Subtract the State's proportionate remittance (as reported to
the State by ACF) for the overall adjustment of the Contingency Fund
for that fiscal year required by section 403(b)(6)(C) of the Act.
Sec. 264.74 How will we determine the Contingency Fund MOE level for
the annual reconciliation?
(a)(1) The Contingency Fund MOE level includes the State's share of
expenditures for AFDC benefit payments, administration, and FAMIS; EA;
and the JOBS program for FY 1994.
(2) We will use the same data sources and date, i.e., April 28,
1995, that we used to determine the basic MOE levels for FY 1994. We
will exclude the State's share of expenditures from the former IV-A
child care programs (AFDC/JOBS, Transitional and At-Risk child care) in
the calculation.
(b) We will reduce a State's Contingency Fund MOE level by the same
percentage that we reduce the basic MOE level for any fiscal year in
which we reduce the State's annual SFAG allocation to provide funding
to Tribal grantees operating a Tribal TANF program.
Sec. 264.75 For the annual reconciliation, what are qualifying State
expenditures?
(a) Qualifying State expenditures are expenditures of State funds
made in the State TANF program, with respect to eligible families, for
the following:
(1) Cash assistance, including assigned child support collected by
the State, distributed to the family, and disregarded in determining
eligibility for, and amount of the TANF assistance payment;
(2) Educational activities designed to increase self-sufficiency,
job training, and work, excluding any expenditure for public education
in the State except expenditures involving the provision of services or
assistance to an eligible family that are not generally available to
persons who are not members of an eligible family;
(3) Any other services allowable under section 404(a)(1) of the Act
and consistent with the goals at Sec. 260.20 of this chapter; and
(4) Administrative costs in connection with the provision of the
benefits and services listed in paragraphs (a)(1) through (a)(3) of
this section, but only to the extent that such costs are consistent
with the 15-percent limitation at Sec. 263.2(a)(5) of this chapter.
(b) Qualifying State expenditures do not include:
(1) Child care expenditures; and
(2) Expenditures made under separate State programs.
Sec. 264.76 What action will we take if a State fails to remit funds
after failing to meet its required Contingency Fund MOE level?
(a) If, for a fiscal year in which it receives contingency funds, a
State fails to meet its required Contingency Fund MOE level, we will
penalize the State by reducing the SFAG payable for the next fiscal
year by the amount of contingency funds not remitted.
(b) A State may appeal this decision, as provided in Sec. 262.7 of
this chapter.
(c) The reasonable cause exceptions and corrective compliance
regulations at Secs. 262.5 and 262.6 of this chapter do not apply to
this penalty.
Sec. 264.77 How will we determine if a State met its Contingency Fund
expenditure requirements?
(a) States receiving contingency funds for a fiscal year must
complete the quarterly TANF Financial Report. As part of the fourth
quarter's report, a State must complete its annual reconciliation.
(b) The TANF Financial Report and State reporting on expenditures
are subject to our review.
Subpart C--What Rules Pertain Specifically to the Spending Levels
of the Territories?
Sec. 264.80 If a Territory receives Matching Grant funds, what funds
must it expend?
(a) If a Territory receives Matching Grant funds under section
1108(b) of the Act, it must:
(1) Contribute 25 percent of the expenditures funded under the
Matching Grant for title IV-A or title IV-E expenditures;
(2) Expend 100 percent of the amount of historic expenditures for
FY 1995 for the AFDC program (including administrative costs and
FAMIS), the EA program, and the JOBS program; and
(3) Expend 100 percent of the amount of the Family Assistance Grant
annual allocation using Federal TANF, title IV-E funds and/or
Territory-only funds, without regard to any penalties applied in
accordance with section 409 of the Act.
(b) Territories may not use the same Territorial expenditures to
satisfy the requirements of paragraphs (a)(1), (a)(2) and (a)(3) of
this section.
Sec. 264.81 What expenditures qualify for Territories to meet the
Matching Grant MOE requirement?
To meet the Matching Grant MOE requirements, Territories may count:
(a) Territorial expenditures made in accordance with Secs. 263.2,
263.3, 263.4, and 263.6 of this chapter that are commingled with
Federal TANF funds or made under a segregated TANF program; and
(b) Territorial expenditures made pursuant to the regulations at 45
CFR parts 1355 and 1356 for the Foster Care and Adoption Assistance
programs and section 477 of the Act for the Independent Living program.
Sec. 264.82 What expenditures qualify for meeting the Matching Grant
FAG amount requirement?
To meet the Matching Grant FAG amount requirement, Territories may
count:
(a) Expenditures made with Federal TANF funds pursuant to
Sec. 263.11 of this chapter;
(b) Expenditures made in accordance with Secs. 263.2, 263.3, 263.4,
and 263.6 of this chapter that are commingled with Federal TANF funds
or made under a segregated TANF program;
(c) Amounts transferred from TANF funds pursuant to section 404(d)
of the Act; and
(d) The Federal and Territorial shares of expenditures made
pursuant to the regulations at 45 CFR parts 1355 and 1356 for the
Foster Care and Adoption Assistance programs and section 477 of the Act
for the Independent Living program.
Sec. 264.83 How will we know if a Territory failed to meet the
Matching Grant funding requirements at Sec. 264.80?
We will require the Territories to report the expenditures required
by Sec. 264.80(a)(2) and (a)(3) on the quarterly Territorial Financial
Report.
Sec. 264.84 What will we do if a Territory fails to meet the Matching
Grant funding requirements at Sec. 264.80?
If a Territory does not meet the requirements at either or both of
Sec. 264.80(a)(2) and (a)(3), we will disallow all Matching Grant funds
received for the fiscal year.
Sec. 264.85 What rights of appeal are available to the Territories?
The Territories may appeal our decisions to the Departmental
Appeals Board in accordance with our regulations at part 16 of this
title if we decide to take disallowances under section 1108(b) of the
Act.
[[Page 17900]]
PART 265--DATA COLLECTION AND REPORTING REQUIREMENTS
Sec.
265.1 What does this part cover?
265.2 What definitions apply to this part?
265.3 What reports must the State file on a quarterly basis?
265.4 When are quarterly reports due?
265.5 May States use sampling?
265.6 Must States file reports electronically?
265.7 How will we determine if the State is meeting the quarterly
reporting requirements?
265.8 Under what circumstances will we take action to impose a
reporting penalty for failure to submit quarterly and annual
reports?
265.9 What information must the State file annually?
265.10 When is the annual report due?
Authority: 42 U.S.C. 603, 605, 607, 609, 611, and 613.
Sec. 265.1 What does this part cover?
(a) This part explains how we will collect the information required
by section 411(a) of the Act (data collection and reporting); the
information required to implement section 407 of the Act (work
participation requirements), as authorized by section
411(a)(1)(A)(xii); the information required to implement section 409
(penalties), section 403 (grants to States), section 405
(administrative provisions), section 411(b) (report to Congress), and
section 413 (annual rankings of State TANF programs); and the data
necessary to carry out our financial management and oversight
responsibilities.
(b) This part describes the information in the quarterly and annual
reports that each State must file, as follows: \1\
---------------------------------------------------------------------------
\1\ The Appendices contain the specific data elements in the
quarterly Data Report, the quarterly Financial Report, and the
Annual Report on State MOE Programs, as well as the instructions for
filing these reports. They also include the form and instructions
for the Caseload Reduction Report described at Sec. 261.41(b) of
this chapter.
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(1) The case record information (disaggregated and aggregated) on
individuals and families in the quarterly TANF Data Report;
(2) The expenditure data in the quarterly TANF Financial Report
(or, as applicable, the Territorial Financial Report); and
(3) The definitions and other information on the State's TANF and
MOE programs that must be filed annually.
(c) If a State claims MOE expenditures under a separate State
program(s), this part specifies the circumstances under which the State
must collect and report case-record information on individuals and
families served by the separate State program(s).
(d) This part describes when reports are due, how we will determine
if reporting requirements have been met, and how we will apply the
statutory penalty for failure to file a timely report. It also
specifies electronic filing and sampling requirements.
Sec. 265.2 What definitions apply to this part?
(a) Except as provided in paragraph (b) of this section, the
general TANF definitions at Secs. 260.30 through 260.33 of this chapter
apply to this part.
(b) For data collection and reporting purposes only, family means:
(1) All individuals receiving assistance as part of a family under
the State's TANF or separate State program (including noncustodial
parents, where required under Sec. 265.3(f)); and
(2) The following additional persons living in the household, if
not included under paragraph (b)(1) of this section:
(i) Parent(s) or caretaker relative(s) of any minor child receiving
assistance;
(ii) Minor siblings of any child receiving assistance; and
(iii) Any person whose income or resources would be counted in
determining the family's eligibility for or amount of assistance.
Sec. 265.3 What reports must the State file on a quarterly basis?
(a) Quarterly reports. (1) Each State must collect on a monthly
basis, and file on a quarterly basis, the data specified in the TANF
Data Report and the TANF Financial Report (or, as applicable, the
Territorial Financial Report).
(2) Under the circumstances described in paragraph (d)(1) of this
section, the State must collect and file the data specified in the SSP-
MOE (Separate State Program-Maintenance-of-Effort) Data Report.
(b) TANF Data Report. The TANF Data Report consists of three
sections. Two sections contain disaggregated data elements and one
section contains aggregated data elements.
(1) Disaggregated Data on Families Receiving TANF Assistance--
Section one. Each State must file disaggregated information on families
receiving TANF assistance.\2\ This section specifies identifying and
demographic data such as the individual's Social Security Number; and
information such as the type and amount of assistance received,
educational level, employment status, work participation activities,
citizenship status, and earned and unearned income. The data apply to
adults and children.
---------------------------------------------------------------------------
\2\ See Appendix A for the specific data elements and
instructions.
---------------------------------------------------------------------------
(2) Disaggregated Data on Families No Longer Receiving TANF
Assistance--Section two. Each State must file disaggregated information
on families no longer receiving TANF assistance.\3\ This section
specifies the reasons for case closure and data similar to the data in
section one.
---------------------------------------------------------------------------
\3\ See Appendix B for the specific data elements and
instructions.
---------------------------------------------------------------------------
(3) Aggregated Data--Section three. Each State must file aggregated
information on families receiving, applying for, and no longer
receiving TANF assistance.\4\ This section of the Report requires
aggregate figures in such areas as: The number of applications and
their disposition; the number of recipient families, adult recipients,
and child recipients; the number of births and out-of-wedlock births
for families receiving TANF assistance; the number of noncustodial
parents participating in work activities; and the number of closed
cases.
---------------------------------------------------------------------------
\4\ See Appendix C for the specific data elements and
instructions.
---------------------------------------------------------------------------
(c) The TANF Financial Report (or Territorial Financial Report).
(1) Each State must file quarterly expenditure data on the State's
use of Federal TANF funds, State TANF expenditures, and State
expenditures of MOE funds in separate State programs.\5\
---------------------------------------------------------------------------
\5\ See Appendix D for the TANF Financial Report and filing
instructions.
---------------------------------------------------------------------------
(2) If a State is expending Federal TANF funds received in prior
fiscal years, it must file a separate quarterly TANF Financial Report
(or, as applicable, Territorial Financial Report) for each fiscal year
that provides information on the expenditures of that year's TANF
funds.
(3) Territories must report their expenditure and other fiscal data
on the Territorial Financial Report, as provided at Sec. 264.85 of this
chapter, in lieu of the TANF Financial Report.
(d) SSP-MOE Data Report. (1) Subject to paragraph (d)(2) of this
section, if a State claims MOE expenditures under a separate State
program(s), it must collect and file disaggregated and aggregated
information on families receiving assistance and families no longer
receiving assistance under the separate State program(s) as follows:
(i) If a State wishes to receive a high performance bonus, it must
file the information in sections one and three of the SSP-MOE Data
Report; and
(ii) If a State wishes to qualify for caseload reduction credit
under subpart D of part 261 of this chapter, it must file the
information in sections one, two, and three of the SSP-MOE Data Report.
(2) The State must file the SSP-MOE Data Report only on separate
State programs that provide benefits that meet
[[Page 17901]]
the definition of assistance at Sec. 260.31 of this chapter.
(3) The SSP-MOE Data Report consists of three sections. Section one
contains disaggregated information on families receiving assistance
under separate State programs; section two contains disaggregated
information on families no longer receiving assistance under separate
State programs; and section three contains aggregated data on families
receiving and families no longer receiving assistance under separate
State programs.\6\
---------------------------------------------------------------------------
\6\ See Appendices E, F, and G for the specific data elements
and instructions.
---------------------------------------------------------------------------
(e) Optional data elements. A State has the option not to report on
some data elements for some individuals in the TANF Data Report and the
SSP-MOE Data Report, as specified in the instructions to these reports.
(f) Noncustodial parents. A State must report information on a
noncustodial parent (as defined in Sec. 260.30 of this chapter) if the
noncustodial parent:
(1) Is receiving assistance as defined in Sec. 260.31 of this
chapter;
(2) Is participating in work activities as defined in section
407(d) of the Act; or
(3) Has been designated by the State as a member of a family
receiving assistance.
Sec. 265.4 When are quarterly reports due?
(a) Each State must file the TANF Data Report and the TANF
Financial Report (or, as applicable, the Territorial Financial Report)
within 45 days following the end of the quarter or be subject to a
penalty.
(b) A State that fails to submit the reports within 45 days will be
subject to a penalty unless the State files complete and accurate
reports before the end of the fiscal quarter that immediately succeeds
the quarter for which the reports were required to be submitted.
(c) Each State may file its quarterly SSP-MOE Data Report:
(1) At the same time as it submits its quarterly TANF Data Report;
or
(2) At the time it seeks to be considered for a high performance
bonus or a caseload reduction credit as long as it submits the required
data for the full period for which these determinations will be made.
Sec. 265.5 May States use sampling?
(a) Each State may report the disaggregated data in the TANF Data
Report and the SSP-MOE Data Report on all recipient families or on a
sample of families selected through the use of a scientifically
acceptable sampling method that we have approved. States may use
sampling to generate certain aggregated data elements as identified in
the instructions to the reports. States may not use sampling to report
expenditure data.
(b) ``Scientifically acceptable sampling method'' means:
(1) A probability sampling method in which every sampling unit in
the population has a known, non-zero chance to be included in the
sample; and
(2) Our sample size requirements are met.
(c) In reporting data based on sampling, the State must follow the
specifications and procedures in the TANF Sampling Manual.
Sec. 265.6 Must States file reports electronically?
Each State must file all quarterly reports (i.e., the TANF Data
Report, the TANF Financial Report (or, as applicable, the Territorial
Financial Report), and the SSP-MOE Data Report) electronically, based
on format specifications that we will provide.
Sec. 265.7 How will we determine if the State is meeting the quarterly
reporting requirements?
(a) Each State's quarterly reports (the TANF Data Report, the TANF
Financial Report (or Territorial Financial Report), and the SSP-MOE
Data Report) must be complete and accurate and filed by the due date.
(b) For a disaggregated data report, ``a complete and accurate
report'' means that:
(1) The reported data accurately reflect information available to
the State in case records, financial records, and automated data
systems;
(2) The data are free from computational errors and are internally
consistent (e.g., items that should add to totals do so);
(3) The State reports data for all required elements (i.e., no data
are missing);
(4)(i) The State provides data on all families; or
(ii) If the State opts to use sampling, the State reports data on
all families selected in a sample that meets the specification and
procedures in the TANF Sampling Manual (except for families listed in
error); and
(5) Where estimates are necessary (e.g., some types of assistance
may require cost estimates), the State uses reasonable methods to
develop these estimates.
(c) For an aggregated data report, ``a complete and accurate
report'' means that:
(1) The reported data accurately reflect information available to
the State in case records, financial records, and automated data
systems;
(2) The data are free from computational errors and are internally
consistent (e.g., items that should add to totals do so);
(3) The State reports data on all applicable elements; and
(4) Monthly totals are unduplicated counts for all families (e.g.,
the number of families and the number of out-of-wedlock births are
unduplicated counts).
(d) For the TANF Financial Report (or, as applicable, the
Territorial Financial Report), ``a complete and accurate report'' means
that:
(1) The reported data accurately reflect information available to
the State in case records, financial records, and automated data
systems;
(2) The data are free from computational errors and are internally
consistent (e.g., items that should add to totals do so);
(3) The State reports data on all applicable elements; and
(4) All expenditures have been made in accordance with
Sec. 92.20(a) of this title.
(e) We will review the data filed in the quarterly reports to
determine if they meet these standards. In addition, we will use audits
and reviews to verify the accuracy of the data filed by the States.
(f) States must maintain records to adequately support any report,
in accordance with Sec. 92.42 of this title.
Sec. 265.8 Under what circumstances will we take action to impose a
reporting penalty for failure to submit quarterly and annual reports?
(a) We will take action to impose a reporting penalty under
Sec. 262.1(a)(3) of this chapter if:
(1) A State fails to file the quarterly TANF Data Report or the
quarterly TANF Financial Report (or, as applicable, the Territorial
Financial Report) within 45 days of the end of the quarter;
(2) The disaggregated data in the TANF Data Report is not accurate
or does not include all the data required by section 411(a) of the Act
(other than section 411(a)(1)(A)(xii) of the Act) or the nine
additional elements necessary to carry out the data collection system
requirements, including the social security number;
(3) The aggregated data elements in the TANF Data Report required
by section 411(a) of the Act are not accurate and the report does not
include the data elements necessary to carry out the data collection
system requirements and to verify and validate the disaggregated data;
[[Page 17902]]
(4) The TANF Financial Report (or, as applicable, the Territorial
Financial Report) does not contain complete and accurate information on
total expenditures and expenditures on administrative costs and
transitional services; or
(5) The annual report under Sec. 265.9 does not contain the
definition of work activities and the description of transitional
services provided by a State to families no longer receiving assistance
due to employment.
(b) We will not apply the reporting penalty to the SSP-MOE Data
Report.
(c) If we determine that a State meets one or more of the
conditions set forth in paragraph (a) of this section, we will notify
the State that we intend to reduce the SFAG payable for the immediately
succeeding fiscal year.
(d) We will not impose the penalty at Sec. 262.1(a)(3) of this
chapter if the State files the complete and accurate quarterly report
or the annual report before the end of the fiscal quarter that
immediately succeeds the fiscal quarter for which the reports were
required.
(e) If the State does not file all reports as provided under
paragraph (a) of this section by the end of the immediately succeeding
fiscal quarter, the penalty provisions of Secs. 262.4 through 262.6 of
this chapter will apply.
(f) Subject to paragraphs (a) through (d) of this section and
Secs. 262.4 through 262.6 of this chapter, for each quarter for which a
State fails to meet the reporting requirements, we will reduce the SFAG
payable by an amount equal to four percent of the adjusted SFAG (or a
lesser amount if the State achieves substantial compliance under a
corrective compliance plan).
Sec. 265.9 What information must the State file annually?
(a) Each State must file an annual report containing information on
the TANF program and the State's MOE program(s) for that year. The
report may be filed as:
(1) An addendum to the fourth quarter TANF Data Report; or
(2) A separate annual report.
(b) Each State must provide the following information on the TANF
program:
(1) The State's definition of each work activity;
(2) A description of the transitional services provided to families
no longer receiving assistance due to employment;
(3) A description of how a State will reduce the amount of
assistance payable to a family when an individual refuses to engage in
work without good cause pursuant to Sec. 261.14 of this chapter;
(4) The average monthly number of payments for child care services
made by the State through the use of disregards, by the following types
of child care providers:
(i) Licensed/regulated in-home child care;
(ii) Licensed/regulated family child care;
(iii) Licensed/regulated group home child care;
(iv) Licensed/regulated center-based child care;
(v) Legally operating (i.e., no license category available in State
or locality) in-home child care provided by a nonrelative;
(vi) Legally operating (i.e., no license category available in
State or locality) in-home child care provided by a relative;
(vii) Legally operating (i.e., no license category available in
State or locality) family child care provided by a nonrelative;
(viii) Legally operating (i.e., no license category available in
State or locality) family child care provided by a relative;
(ix) Legally operating (i.e., no license category available in
State or locality) group child care provided by a nonrelative;
(x) Legally operating (i.e., no license category available in State
or locality) group child care provided by a relative; and
(xi) Legally operated (i.e., no license category available in State
or locality) center-based child care;
(5) If the State has adopted the Family Violence Option and wants
Federal recognition of its good cause domestic violence waivers under
subpart B of part 260 of this chapter, a description of the strategies
and procedures in place to ensure that victims of domestic violence
receive appropriate alternative services and an aggregate figure for
the total number of good cause domestic waivers granted;
(6) A description of any nonrecurrent, short-term benefits
provided, including:
(i) The eligibility criteria associated with such benefits,
including any restrictions on the amount, duration, or frequency of
payments;
(ii) Any policies that limit such payments to families that are
eligible for TANF assistance or that have the effect of delaying or
suspending a family's eligibility for assistance; and
(iii) Any procedures or activities developed under the TANF program
to ensure that individuals diverted from assistance receive information
about, referrals to, or access to other program benefits (such as
Medicaid and food stamps) that might help them make the transition from
welfare to work;
(7) A description of the procedures the State has established and
is maintaining to resolve displacement complaints, pursuant to section
407(f)(3) of the Act. This description must include the name of the
State agency with the lead responsibility for administering this
provision and explanations of how the State has notified the public
about these procedures and how an individual can register a complaint;
(8) A summary of State programs and activities directed at the
third and fourth statutory purposes of TANF (as specified at
Sec. 260.20(c) and (d) of this chapter); and
(9) An estimate of the total number of individuals who have
participated in subsidized employment under Sec. 261.30(b) or (c) of
this chapter.
(c) Each State must provide the following information on the
State's program(s) for which the State claims MOE expenditures:
(1) The name of each program and a description of the major
activities provided to eligible families under each such program;
(2) Each program's statement of purpose;
(3) If applicable, a description of the work activities in each
separate State MOE program in which eligible families are
participating;
(4) For each program, both the total annual State expenditures and
the total annual State expenditures claimed as MOE;
(5) For each program, the average monthly total number or the total
number of eligible families served for which the State claims MOE
expenditures as of the end of the fiscal year;
(6) The eligibility criteria for the families served under each
program/activity;
(7) A statement whether the program/activity had been previously
authorized and allowable as of August 21, 1996, under section 403 of
prior law;
(8) The FY 1995 State expenditures for each program/activity not
authorized and allowable as of August 21, 1996, under section 403 of
prior law (see Sec. 263.5(b) of this chapter); and
(9) A certification that those families for which the State is
claiming MOE expenditures met the State's criteria for ``eligible
families.'' \7\
---------------------------------------------------------------------------
\7\ See Appendix I for the reporting form for the Annual Report
on State Maintenance-of-Effort Programs.
---------------------------------------------------------------------------
(d) If the State has submitted the information required in
paragraphs (b) and (c) of this section in the State Plan, it may meet
the annual reporting requirements by reference in lieu of re-
submission. If the information in the
[[Page 17903]]
annual report has not changed since the previous annual report, the
State may reference this information in lieu of re-submission.
(e) If a State makes a substantive change in certain data elements
in paragraphs (b) and (c) of this section, it must file a copy of the
change with the next quarterly data report or as an amendment to its
State Plan. The State must also indicate the effective date of the
change. This requirement is applicable to the following data elements:
(1) Paragraphs (b)(1), (b)(2), and (b)(3) of this section; and
(2) Paragraphs (c)(1), (c)(2), (c)(3), (c)(6), (c)(7), and (c)(8)
of this section.
Sec. 265.10 When is the annual report due?
The annual report required by Sec. 265.9 is due at the same time as
the fourth quarter TANF Data Report.
Note: The following appendices will not appear in the Code of
Federal Regulations.
Appendices
Appendix A--TANF Data Report--Section One (Disaggregated Data
Collection for Families Receiving Assistance under the TANF Program)
Appendix B--TANF Data Report--Section Two (Disaggregated Data
Collection for Families No Longer Receiving Assistance under the
TANF Program)
Appendix C--TANF Data Report--Section Three (Aggregated Data
Collection for Families Applying for, Receiving, and No Longer
Receiving Assistance under the TANF Program)
Appendix D--TANF Financial Report
Appendix E--SSP-MOE Data Report--Section One (Disaggregated Data
Collection for Families Receiving Assistance under the Separate
State Programs)
Appendix F--SSP-MOE Data Report--Section Two (Disaggregated Data
Collection for Families No Longer Receiving Assistance under the
Separate State Programs)
Appendix G--SSP-MOE Data Report--Section Three (Aggregated Data
Collection for Families Receiving Assistance under the Separate
State Programs)
Appendix H--Caseload Reduction Report
Appendix I--Annual Report on State Maintenance-of-Effort Programs
Appendix A--TANF Data Report--Section One Disaggregated Data Collection
for Families Receiving Assistance under the TANF Program
Instructions and Definitions
General Instruction: The State agency or Tribal grantee should
collect and report data for each data element. The data must be
complete (unless explicitly instructed to leave the field blank) and
accurate (i.e, correct).
An ``Unknown'' code may appear only on four sets of data
elements ([#32 and #67] Date of Birth, [#33 and #68] Social Security
Number, [#41 and #74] Educational Level, and [#42 and #75]
Citizenship/Alienage). For these data elements, unknown is not an
acceptable code for individuals who are members of the eligible
family (i.e., family affiliation code ``1'').
There are five data elements for which States have the option to
report based on either the budget month or the reporting month.
These are: #16 Amount of Food Stamps Assistance; #19 Amount of Child
Support; #20 Amount of Families Cash Resources; #64 Amount of Earned
Income; and [#35 and #76] Amount of Unearned Income. Whichever
choice the State selects must be used for all families reported each
month and must be used for all months in the fiscal year.
1. State FIPS Code: Enter your two-digit State code from the
following listing. These codes are the standard codes used by the
National Institute of Standards and Technology. Tribal grantees
should leave this field blank.
------------------------------------------------------------------------
State Code
------------------------------------------------------------------------
Alabama......................................................... 01
Alaska.......................................................... 02
American Samoa.................................................. 60
Arizona......................................................... 04
Arkansas........................................................ 05
California...................................................... 06
Colorado........................................................ 08
Connecticut..................................................... 09
Delaware........................................................ 10
District of Columbia............................................ 11
Florida......................................................... 12
Georgia......................................................... 13
Guam............................................................ 66
Hawaii.......................................................... 15
Idaho........................................................... 16
Illinois........................................................ 17
Indiana......................................................... 18
Iowa............................................................ 19
Kansas.......................................................... 20
Kentucky........................................................ 21
Louisiana....................................................... 22
Maine........................................................... 23
Maryland........................................................ 24
Massachusetts................................................... 25
Michigan........................................................ 26
Minnesota....................................................... 27
Mississippi..................................................... 28
Missouri........................................................ 29
Montana......................................................... 30
Nebraska........................................................ 31
Nevada.......................................................... 32
New Hampshire................................................... 33
New Jersey...................................................... 34
New Mexico...................................................... 35
New York........................................................ 36
North Carolina.................................................. 37
North Dakota.................................................... 38
Ohio............................................................ 39
Oklahoma........................................................ 40
Oregon.......................................................... 41
Pennsylvania.................................................... 42
Puerto Rico..................................................... 72
Rhode Island.................................................... 44
South Carolina.................................................. 45
South Dakota.................................................... 46
Tennessee....................................................... 47
Texas........................................................... 48
Utah............................................................ 49
Vermont......................................................... 50
Virgin Islands.................................................. 78
Virginia........................................................ 51
Washington...................................................... 53
West Virginia................................................... 54
Wisconsin....................................................... 55
Wyoming......................................................... 56
------------------------------------------------------------------------
2. County FIPS Code: Enter the three-digit code established by
the National Institute of Standards and Technology for
classification of counties and county equivalents. Codes were
devised by listing counties alphabetically and assigning
sequentially odd integers; e.g., 01, 03, 05. A complete list of
codes is available in Appendix F of the TANF Sampling and
Statistical Methods Manual. Tribal grantees should leave this field
blank.
3. Tribal Code: For Tribal grantees, enter the three-digit
Tribal code that represents your Tribe (See Appendix E of the TANF
Sampling and Statistical Methods Manual for a complete listing of
Tribal Codes.) State agencies should leave this field blank.
4. Reporting Month: Enter the four-digit year and two-digit
month codes that identify the year and month for which the data are
being reported.
5. Stratum:
Guidance: All TANF families selected in the sample from the same
stratum must be assigned the same stratum code. Valid stratum codes
may range from ``00'' to ``99.'' States and Tribes with stratified
samples should provide the ACF Regional Office with a listing of the
numeric codes utilized to identify any stratification. If a State or
Tribe opts to provide data for its entire caseload, enter the same
stratum code (any two-digit number) for each TANF family.
Instruction: Enter the two-digit stratum code.
Family-Level Data
Definition: For reporting purposes, the TANF family means (a)
all individuals receiving assistance as part of a family under the
State's TANF Program; and (b) the following additional persons
living in the household, if not included under (a) above:
(1) Parent(s) or caretaker relative(s) of any minor child
receiving assistance;
(2) Minor siblings of any child receiving assistance; and
(3) Any person whose income or resources would be counted in
determining the family's eligibility for or amount of assistance.
6. Case Number--TANF:
Guidance: If the case number is less than the allowable eleven
characters, a State should use lead zeros to fill in the number.
Instruction: Enter the number assigned by the State agency or
Tribal grantee to uniquely identify the case.
7. ZIP Code: Enter the five-digit ZIP code for the TANF family's
place of residence for the reporting month.
8. Funding Stream:
Guidance: The TANF Data Report collects information on families
receiving assistance as defined in Sec. 260.31. We do not collect
information on families receiving benefits and services that do not
meet the definition of assistance. A family that receives TANF
[[Page 17904]]
assistance funded, entirely or in part, with Federal funds is
subject to the Federal time limits. A family that receives
assistance under a segregated State TANF program funded solely with
State funds is not subject to the Federal time limits.We will
collect information on families who receive assistance under a
separate State program in the SSP-MOE Data Report.
Instructions: For States that bifurcate their caseloads, enter
the appropriate code for the funding stream used to provide
assistance to this TANF family. If the State (Tribe) does not
bifurcate its caseload, enter code ``1.''
1=Funded, in whole or in part, with Federal TANF block grant
funds.
2=Funded entirely from State-only funds. (segregated State TANF
program) which are subject to most, but not all, TANF rules.
9. Disposition:
Guidance: A family that did not receive any assistance for the
reporting month but was listed on the monthly sample frame for the
reporting month is ``listed in error.'' States must collect and
report complete data for all sampled cases that are not listed in
error.
Instruction: Enter one of the following codes for each TANF
sampled case.
1=Data collection completed.
2=Not subject to data collection/listed in error.
10. New Applicant:
Guidance: A newly-approved applicant means the current reporting
month is the first month in which the TANF family receives TANF
assistance (and thus has had a chance to be selected into the TANF
sample). This may be either the first month that the TANF family has
ever received assistance or the first month of a new spell on
assistance. A TANF family that is reinstated from a suspension is
not a newly, approved applicant.
Instruction: Enter the one-digit code that indicates whether or
not the TANF family is a newly-approved applicant.
1=Yes, a newly-approved application
2=No.
11. Number of Family Members: Enter two digits that represent
the number of members in the family receiving assistance under the
State's (Tribe's) TANF Program during the reporting month. Include
in the number of family members, the noncustodial parent who the
State (Tribe) has opted to include as part of the eligible family,
who is receiving assistance as defined in Sec. 260.31, or who is
participating in work activities as defined in section 407(d) of the
Act.
12. Type of Family for Work Participation:
Guidance: This data element identifies whether the family will
be used to calculate both the overall and two-parent work
participation rates, will be used to calculate only the overall work
participation rate, or will not be used to calculate either work
participation rate.
A family with an adult or minor child head-of-household is
included in the overall work participation rate unless explicitly
disregarded. See data element #48 ``Work Participation Status'' for
reasons for disregarding a family.
For the purpose of calculating the two-parent work participation
rate, the two-parent families include any family with two or more
natural or adoptive parents (of the same minor child) receiving
assistance and living in the home, unless both are minors and
neither is a head-of-household. All two-parent families must be
included in the two-parent work participation rate unless the family
is explicitly disregarded. See the ``Work Participation Status''
data element for reasons for disregarding a family. A two-parent
family that includes a disabled parent will not be included in the
two-parent work participation rate.
A family with a minor child head-of-household should be coded as
either a single-parent family or two-parent family, whichever is
appropriate.
A noncustodial parent is defined in Sec. 260.30 as a parent who
lives in the State and does not live with his/her child(ren). The
State must report information on the noncustodial parent if the
noncustodial parent: (1) is receiving assistance as defined in
Sec. 260.31; (2) is participating in work activities as defined in
section 407(d) of the Act; or (3) has been designated by the State
as a member of a family receiving assistance.
However, the State may choose whether a two-parent family with a
noncustodial parent as one of the two parents is a two-parent family
for the purposes of calculating the two-parent work participation
rate. If a State chooses to exclude a two-parent family with a
noncustodial parent as one of the parents from the two-parent work
participation rate, the State must code the data element ``Type of
Family for Work Participation'' with a ``1'' and code the data
element ``Work Participation Status'' for the noncustodial parent
with a ``99''.
Instruction: Enter the one-digit code that represents the type
of family for purposes of calculating the work participation rates.
1=Family included only in overall work participation rate.
2=Two-Parent Family included in both the overall and two-parent
work participation rates.
3=Family excluded from both the overall and two-parent work
participation rates.
13. Receives Subsidized Housing:
Guidance: Subsidized housing refers to housing for which money
was paid by the Federal, State, or local government or through a
private social service agency to the family or to the owner of the
housing to assist the family in paying rent. Two families sharing
living expenses does not constitute subsidized housing.
Instruction: Enter the one-digit code that indicates whether or
not the TANF family received subsidized housing for the reporting
month.
1=Public housing.
2=Rent subsidy.
3=No housing subsidy.
14. Receives Medical Assistance: Enter ``1'' if, for the
reporting month, any TANF family member is enrolled in Medicaid and
thus eligible to receive medical assistance under the State plan
approved under Title XIX or ``2'' if no TANF family member is
enrolled in Medicaid.
1=Yes, enrolled in Medicaid.
2=No.
15. Receives Food Stamps: Enter the one-digit code that
indicates whether or not the TANF family is receiving food stamp
assistance.
1=Yes, receives food stamp assistance.
2=No.
16. Amount of Food Stamp Assistance:
Guidance: For situations in which the food stamp household
differs from the TANF family, code this element in a manner that
most accurately reflects the resources available to the TANF family.
One acceptable method for calculating the amount of food stamp
assistance available to the TANF family is to prorate the amount of
food stamps equally among each food stamp recipient then add
together the amounts belonging to the TANF recipients to get the
total amount for the TANF family.
Instruction: Enter the TANF family's authorized dollar amount of
food stamp assistance for the reporting month or for the month used
to budget for the reporting month.
17. Receives Subsidized Child Care:
Instruction: If the TANF family receives subsidized child care
for the reporting month, enter code ``1'' or ``2,'' whichever is
appropriate. Otherwise, enter code ``3.''
1=Yes, receives child care funded entirely or in part with
Federal funds (e.g., receives TANF, CCDF, SSBG, or other federally
funded child care).
2=Yes, receives child care funded entirely under a State,
Tribal, and/or local program (i.e., no Federal funds used).
3=No subsidized child care received.
18. Amount of Subsidized Child Care:
Guidance: Subsidized child care means a grant by the Federal,
State or local government to or on behalf of a parent (or caretaker
relative) to support, in part or whole, the cost of child care
services provided by an eligible provider to an eligible child. The
grant may be paid directly to the parent (or caretaker relative) or
to a child care provider on behalf of the parent (or caretaker
relative).
Instruction: Enter the total dollar amount of subsidized child
care from all sources (e.g., CCDF, TANF, SSBG, State, local, etc.)
that the TANF family has received for services in the reporting
month. If the TANF family did not receive any subsidized child care
for services in the reporting month, enter ``0.''
19. Amount of Child Support: Enter the total dollar value of
child support received on behalf of the TANF family in the reporting
month or for the month used to budget for the reporting month. This
includes current payments, arrearages, recoupment, and pass-through
amounts whether paid to the State or the family.
20. Amount of the Family's Cash Resources: Enter the total
dollar amount of the TANF family's cash resources as the State
defines them for determining eligibility and/or computing benefits
for the reporting month or for the month used to budget for the
reporting month.
Amount of Assistance Received and the Number of Months That the Family
has Received Each Type of Assistance Under the State (Tribal) TANF
Program
Guidance: The term ``assistance'' includes cash, payments,
vouchers, and other forms of benefits designed to meet a family's
ongoing
[[Page 17905]]
basic needs (i.e., for food, clothing, shelter, utilities, household
goods, personal care items, and general incidental expenses). It
includes such benefits even when they are provided in the form of
payments by a TANF agency, or other agency on its behalf, to
individual recipients and conditioned on their participation in work
experience, community service, or other work activities (i.e., under
the CFR Sec. 261.30).
Except where excluded as indicated in the following paragraph,
it also includes supportive services such as transportation and
child care provided to families who are not employed.
The term ``assistance'' excludes:
(1) Nonrecurrent, short-term benefits (such as payments for rent
deposits or appliance repairs) that:
(i) Are designed to deal with a specific crisis situation or
episode of need;
(ii) Are not intended to meet recurrent or ongoing needs; and
(iii) Will not extend beyond four months.
(2) Work subsidies (i.e., payments to employers or third parties
to help cover the costs of employee wages, benefits, supervision,
and training);
(3) Supportive services such as child care and transportation
provided to families who are employed;
(4) Refundable earned income tax credits;
(5) Contributions to, and distributions from, Individual
Development Accounts;
(6) Services such as counseling, case management, peer support,
child care information and referral, transitional services, job
retention, job advancement, and other employment-related services
that do not provide basic income support; and
(7) Transportation benefits provided under an Access to Jobs or
Reverse Commute project, pursuant to section 404(k) of the Act, to
an individual who is not otherwise receiving assistance.
The exclusion of nonrecurrent, short-term benefits under (1) of
this paragraph also covers supportive services for recently employed
families, for temporary periods of unemployment, in order to enable
continuity in their service arrangements.
Instruction: For each type of assistance provided under the
State's (Tribal) TANF Program, enter the dollar amount of assistance
that the TANF family received or that was paid on behalf of the TANF
family for the reporting month and the number of months that the
TANF family has received assistance under the State's (Tribe's) TANF
program. For TANF Child Care also enter the number of children
covered by the dollar amount of child care. If, for a ``type of
assistance,'' no dollar amount of assistance was provided during the
reporting month, enter ``0'' as the amount. If, for a ``type of
assistance,'' no assistance has been received (since the State began
its TANF Program) by the TANF eligible family, enter ``0'' as the
number of months of assistance.
21. Cash and Cash Equivalents:
A. Amount
B. Number of Months
22. TANF Child Care:
Guidance: For TANF Child Care, enter the dollar amount, the
number of children covered by the dollar amount of child care, and
the total number of months that the family has received TANF child
care assistance for families not employed. For example, a TANF
family may receive a total of $500.00 in TANF child care assistance
for two children for the reporting month. Furthermore, the family
may have received TANF child care for one or more child(ren) for a
total of six months under the State (Tribal) TANF Program. In this
example, the State (Tribe) would code 500, 2, and 6 for the amount,
number of children and number of months respectively. Include only
the child care funded directly by the State (Tribal) TANF Program.
Do not include child care funded under the Child Care and
Development Fund, even though some of the funds were transferred to
the CCDF from the TANF program.
Number of:
A. Amount
B. Children Covered
C. Number of Months
23. Transportation:
A. Amount
B. Number of Months
24. Transitional Services:
A. Amount
B. Number of Months
25. Other:
A. Amount
B. Number of Months
26. Reason for and Amount of Reductions in Assistance:
Instruction: The amount of assistance received by a TANF family
may have been reduced for one or more of the following reasons. For
each reason listed below, indicate whether the TANF family received
a reduction in assistance. Enter the total dollar value of the
reduction(s) for each group of reasons for the reporting month. If
for any reason there was no reduction in assistance, enter ``0.''
a. Sanctions:
i. Total Dollar Amount of Reductions due to Sanctions: Enter the
total dollar value of reduction in assistance due to sanctions.
ii. Work Requirements Sanction:
1=Yes.
2=No.
iii. Family Sanction for an Adult with No High School Diploma or
Equivalent:
1=Yes.
2=No.
iv. Sanction for Teen Parent not Attending School:
1=Yes.
2=No.
v. Non-Cooperation with Child Support:
1=Yes.
2=No.
vi. Failure to Comply with an Individual Responsibility Plan:
1=Yes.
2=No.
vii. Other Sanction:
1=Yes.
2=No.
b. Recoupment of Prior Overpayment:
Enter the total dollar value of reduction in assistance due to
recoupment of a prior overpayment.
c. Other:
i. Total Dollar Amount of Reductions due to Other Reasons
(exclude amounts for sanctions and recoupment): Enter the total
dollar value of reduction in assistance due to reasons other than
sanctions and recoupment.
ii. Family Cap:
1=Yes.
2=No.
iii. Reduction Based on Family Moving into State From Another
State:
1=Yes.
2=No.
iv. Reduction Based on Length of Receipt of Assistance:
1=Yes.
2=No.
v. Other, Non-sanction:
1=Yes.
2=No.
27. Waiver Evaluation Experimental and Control Groups:
Guidance: If this data element is not applicable to your State
(Tribe), either code this element ``9'' or leave this data element
blank. In connection with waivers that are approved to allow States
to implement Welfare Reform Demonstrations, a State assigned a
portion of its cases to control groups (subject to the provisions of
the regular, statutory AFDC program as defined by prior law) and
experimental groups (subject to the provisions of the regular,
statutory AFDC program as defined by prior law as modified by
waivers). A State may choose, for the purpose of completing impact
analyses, to maintain applicable control snd experimental group
treatment policies as they were implemented under their welfare
reform demonstration (including prior law policies not modified by
waivers), even if such policies are inconsistent with TANF. However,
cases not assigned to an experimental or control group, but subject
to waiver policies in accordance with terms and conditions of the
waiver approval, may not apply prior law policies inconsistent with
TANF unless such policies are specifically linked to approved
waivers. When a State continues waivers, but does not maintain
experimental and control groups for impact evaluation purposes, all
cases in the demonstration site will be treated as cases subject to
waiver policies in accordance with the terms and conditions
regardless of their original assignment as control group cases
(i.e., prior law policies may only apply to the extent they are
specially linked to approved waivers and former control group cases
will now be subject to waiver policies.)
Instruction: Enter the one-digit code that indicates the
family's waiver evaluation case status.
1=Control group case (for impact analysis purposes).
2=Experimental group case.
3=Other cases subject to waiver policies.
9=Not applicable (no waivers apply to this case).
28. Is the TANF Family Exempt from the Federal Time-Limit
Provisions:
Guidance: Under TANF rules, an eligible family that does not
include a recipient who is an adult head-of-household, a spouse of
the head-of-household, or a minor child head-of-household who has
received federally-funded assistance for 60 countable months may
continue to receive assistance. A
[[Page 17906]]
countable month is a month of assistance for which the adult head-
of-household, the spouse of the head-of-household, or the minor
child head-of-household is not exempt from the Federal time-limit
provisions. TANF rules provide for two categories of exceptions.
Certain families are exempt from the accrual of months of assistance
(i.e., the clock is not ticking). Certain families with an adult
head-of-household, a spouse of a head-of-house, or minor child head-
of-household who has received 60 countable months of assistance may
be exempt from termination of assistance. Exemptions from
termination of assistance include a hardship exemption that allows
up to 20% of the families to receive assistance beyond the 60-month
time limit. In lieu of the 20% hardship exemptions, States with
prior-approved welfare reform waivers may choose to employ extension
policies prescribed under their waivers.
Instruction: If the TANF family has no exemption from the
Federal five-year time limit, enter code ``01.'' If the TANF family
does not include an adult head-of-household, a spouse of the head-
of-household, or a minor child head-of-household who has received
federally-funded assistance for 60 countable months or is otherwise
exempt from accrual of months of assistance or termination of
assistance under the Federal five-year time limit for the reporting
month, enter ``02.'' If the TANF family includes an adult head-of-
household, a spouse of the head-of-household, or minor child head-
of-household who has not received federally-funded assistance for 60
countable months and the family is exempt from the accrual of months
of assistance, enter ``03,'' ``04,'' or ``05,'' whichever is
appropriate. If the TANF family includes an adult head-of-household,
a spouse of the head-of-household, or minor child head-of-household
who has received assistance for 60 countable months and the family
is exempt from termination of assistance, enter code ``06'' ``07,''
``08,'' ``09,'' ``10,'' or ``11,'' whichever is appropriate.
01=Family is not exempt from Federal time limit.
Family does not include an adult head-of-household, a spouse of
the head-of-household, or minor child head-of-household who has
received federally-funded assistance for 60 countable months:
02=Yes, family is exempt from accrual of months and termination
of assistance under the Federal five-year time limit for the
reporting month because no adult head-of-household, a spouse of the
head-of-household, or minor child head-of-household in the eligible
family is receiving assistance.
Family includes an adult head-of-household, a spouse of the
head-of-household, or minor child head-of-household, but has accrued
less than 60 months of assistance:
03=Yes, family is exempt from accrual of months under the
Federal five-year time limit for the reporting month because
assistance to family is funded entirely from State-only funds.
04=Yes, family is exempt from accrual of months under the
Federal five-year time limit for the reporting month because the
family is living in Indian country or an Alaskan native village,
where at least 50 percent of the adults living in the Indian country
or Alaskan native village are not employed.
05=Yes, family is exempt from accrual of months under the
Federal five-year time limit for the reporting month based on an
approved welfare reform waiver policy.
Family includes an adult head-of-household, a spouse of the
head-of-household, or minor child head-of-household who has received
federally-funded assistance for 60 countable months:
06=Yes, family is exempt from termination of assistance under
the Federal five-year time limit for the reporting month because
assistance to the family is funded entirely from State-only funds.
07=Yes, family is exempt from termination of assistance under
the Federal five-year time limit for the reporting month due to a
hardship exemption, battery, or extreme cruelty.
08=Yes, family is exempt from termination of assistance under
State policy for the reporting month based on a federally recognized
good cause domestic violence waiver of time limits.
09=Yes, family is exempt from termination of assistance under
the Federal five-year time limit for the reporting month because the
adult head-of-household, the spouse of the head-of-household, or
minor child head-of-household is living in Indian country or an
Alaskan native village, where at least 50 percent of whose adults
are not employed.
10=Yes, family (including adults) is exempt from termination of
assistance under the Federal five-year time limit for the reporting
month in accordance with extension policies prescribed under
approved welfare reform waivers.
11=Yes, the children in the family are receiving assistance
beyond the 60 countable months and the family is exempt from
termination of assistance under the Federal five-year time limit for
the reporting month in accordance with extension policies prescribed
under approved welfare reform waivers (i.e., under an adult-only
time limit).
29. Is the TANF Family A New Child-Only Family?:
Guidance: A child-only family is a TANF family that does not
include an adult or a minor child head-of-household who is receiving
TANF assistance. For purposes of this data element, a new child-only
family is a TANF family that: (a) has received TANF assistance for
at least two months (i.e., the reporting month and the month prior
to the reporting month); (b) received benefits in the prior month,
but not as a child-only case; and (c) is a child-only family for the
reporting month. All other families--including those that are not a
child-only case during the reporting month--get coded as ``not a
new-child-only family,'' i.e., as code 2.
Instructions: If the TANF family is a new child-only family,
enter code ``1.'' Otherwise, enter code ``2.''
1=Yes, a new child-only family.
2=No, not a new child-only family.
Person-Level Data
Person-level data has two sections: (1) The adult and minor
child head-of-household characteristic section and (2) the child
characteristics section. Section 419 of the Act defines adult and
minor child. An adult is an individual that is not a minor child. A
minor child is an individual who (a) has not attained 18 years of
age or (b) has not attained 19 years of age and is a full-time
student in a secondary school (or in the equivalent level of
vocational or technical training).
Detailed data elements must be reported on all individuals
unless, for a specific data element, the instructions explicitly
give States (Tribes) an option to not report for a specific group of
individuals.
Adult and Minor Child Head-of-Household Characteristics
This section allows for coding up to six adults (or a minor
child who is either a head-of-household or married to the head-of-
household and up to five adults) in the TANF family. A minor child
who is either a head-of-household or married to the head-of-
household should be coded as an adult and will hereafter be referred
to as a ``minor child head-of-household.'' For each adult (or minor
child head-of-household) in the TANF family, complete the adult
characteristics section. A noncustodial parent is defined in section
260.30 as a parent who lives in the State and does not live with
his/her child(ren). The State must report information on the
noncustodial parent if the noncustodial parent: (1) Is receiving
assistance as defined in Sec. 260.31; (2) is participating in work
activities as defined in section 407(d) of the Act; or (3) has been
designated by the State as a member of a family receiving
assistance.
The State has the option to count a family with a noncustodial
parent receiving assistance as a two-parent family for work
participation rate purposes. As indicated below, reporting for
certain specified data elements in this section is optional for
certain individuals (whose family affiliation code is a 2, 3, or 5).
If there are more than six adults (or a minor child head-of-
household and five adults) in the TANF family, use the following
order to identify the persons to be coded: (1) The head-of-
household; (2) parents in the eligible family receiving assistance;
(3) other adults in the eligible family receiving assistance; (4)
parents not in the eligible family receiving assistance; (5)
caretaker relatives not in the eligible family receiving assistance;
and (6) other persons whose income or resources count in determining
eligibility for or amount of assistance of the eligible family
receiving assistance, in descending order from the person with the
most income to the person with least income.
30. Family Affiliation:
Guidance: This data element is used both for (1) The adult and
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for adults.
Instruction: Enter the one-digit code that shows the adult's (or
minor child head-of-household's) relation to the eligible family
receiving assistance.
1=Member of the eligible family receiving assistance.
[[Page 17907]]
Not in eligible family receiving assistance, but in the
household:
2=Parent of minor child in the eligible family receiving
assistance.
3=Caretaker relative of minor child in the eligible family
receiving assistance.
4=Minor sibling of child in the eligible family receiving
assistance.
5=Person whose income or resources are considered in determining
eligibility for or amount of assistance for the eligible family
receiving assistance.
31. Noncustodial Parent Indicator:
Guidance: A noncustodial parent is defined in section 260.30 as
a parent who lives in the State and does not live with his/her
child(ren). The State must report information on the noncustodial
parent if the noncustodial parent: (1) Is receiving assistance as
defined in Sec. 260.31; (2) is participating in work activities as
defined in section 407(d) of the Act; or (3) has been designated by
the State as a member of a family receiving assistance.
Instruction: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) noncustodial parent status.
1=Yes, a noncustodial parent.
2=No.
32. Date of Birth: Enter the eight-digit code for date of birth
for the adult (or minor child head-of-household) under the State
(Tribal) TANF Program in the format YYYYMMDD. If the adult's (or
minor child head-of-household's) date of birth is unknown and the
family affiliation code is not ``1,'' enter the code ``99999999''.
33. Social Security Number: Enter the nine-digit Social Security
Number for the adult (or minor child head-of-household) in the
format nnnnnnnnn. If the social security number is unknown and the
family affiliation code is not ``1,'' enter ``999999999''.
34. Race/Ethnicity:
Instruction: To allow for the multiplicity of race/ethnicity,
please enter the one-digit code for each category of race and
ethnicity of the TANF adult (or minor child head-of-household).
Reporting of this data element is optional for individuals whose
family affiliation code is 5.
Ethnicity:
a. Hispanic or Latino:
1=Yes, Hispanic or Latino.
2=No.
Race:
b. American Indian or Alaska Native:
1=Yes, American Indian or Alaska Native.
2=No.
c. Asian:
1=Yes, Asian.
2=No.
d. Black or African American:
1=Yes, Black or African American.
2=No.
e. Native Hawaiian or Other Pacific Islander:
1=Yes, Native Hawaiian or Pacific Islander.
2=No.
f. White:
1=Yes, White.
2=No.
35. Gender: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) gender:
1=Male.
2=Female.
36. Receives Disability Benefits: The Act specifies five types
of disability benefits. For each type of disability benefits, enter
the one-digit code that indicates whether or not the adult (or minor
child head-of-household) received the benefit.
a. Receives Federal Disability Insurance Benefits Under the
Social Security OASDI Program (Title II of the Social Security Act):
1=Yes, received Federal disability insurance.
2=No.
b. Receives Benefits Based on Federal Disability Status Under
Non-Social Security Act Programs: These programs include Veteran's
disability benefits, Worker's disability compensation, and Black
Lung Disease disability benefits.
1=Yes, received benefits based on Federal disability status.
2=No.
c. Receives Aid to the Permanently and Totally Disabled Under
Title XIV-APDT of the Social Security Act:
1=Yes, received aid under Title XIV-APDT.
2=No.
d. Receives Aid to the Aged, Blind, and Disabled Under Title
XVI-AABD of the Social Security Act:
1=Yes, received aid under Title XVI-AABD.
2=No.
e. Receives Supplemental Security Income Under Title XVI-SSI of
the Social Security Act:
1=Yes, received aid under Title XVI-SSI.
2=No.
37. Marital Status: Enter the one-digit code for the adult's (or
minor child head-of-household's) marital status for the reporting
month. Reporting of this data element is optional for individuals
whose family affiliation code is 5.
1=Single, never married.
2=Married, living together.
3=Married, but separated.
4=Widowed.
5=Divorced.
38. Relationship to Head-of-Household:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for adults.
Instruction: Enter the two-digit code that shows the adult's
relationship (including by marriage) to the head of the household,
as defined by the Food Stamp Program or as determined by the State
(Tribe) (i.e., the relationship to the principal person of each
person living in the household). If minor child head-of-household,
enter code ``01.''
01=Head-of-household.
02=Spouse.
03=Parent.
04=Daughter or son.
05=Stepdaughter or stepson.
06=Grandchild or great grandchild.
07=Other related person (brother, niece, cousin).
08=Foster child.
09=Unrelated child.
10=Unrelated adult.
39. Parent With Minor Child in the Family:
Guidance: A parent with a minor child in the family may be a
natural parent, adoptive parent, or step-parent of a minor child in
the family. Reporting of this data element is optional for
individuals whose family affiliation code is 3 or 5.
Instruction: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) parental status.
1=Yes, a parent with a minor child in the family and used in
two-parent participation rate.
2=Yes, a parent with a minor child in the family, but not used
in two-parent participation rate.
3=No.
40. Needs of a Pregnant Woman: Some States (Tribes) consider the
needs of a pregnant woman in determining the amount of assistance
that the TANF family receives. If the adult (or minor child head-of-
household) is pregnant and the needs associated with this pregnancy
are considered in determining the amount of assistance for the
reporting month, enter a ``1'' for this data element. Otherwise
enter a ``2'' for this data element. This data element is applicable
only for individuals whose family affiliation code is 1.
1=Yes, additional needs associated with pregnancy are considered
in determining the amount of assistance.
2=No.
41. Educational Level: Enter the two-digit code to indicate the
highest level of education attained by the adult (or minor child
head-of-household). Unknown is not an acceptable code for
individuals whose family affiliation code is ``1''. Reporting of
this data element is optional for individuals whose family
affiliation code is 5.
01-11=Grade level completed in primary/secondary school
including secondary level vocational school or adult high school.
12=High school diploma, GED, or National External Diploma
Program.
13=Awarded Associate's Degree.
14=Awarded Bachelor's Degree.
15=Awarded graduate degree (Master's or higher).
16=Other credentials (degree, certificate, diploma, etc.).
98=No formal education.
99=Unknown.
42. Citizenship/Alienage:
Instruction: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) citizenship/alienage. Unknown
is not an acceptable code for individuals whose family affiliation
code is ``1''. Reporting of this data element is optional for
individuals whose family affiliation code is 5.
1=U.S. citizen, including naturalized citizens.
2=Qualified alien.
9=Unknown.
43. Cooperation with Child Support: Enter the one-digit code
that indicates if the adult (or minor child head-of-household) has
cooperated with child support. Reporting of this data element is
optional for individuals whose family affiliation code is 5.
1=Yes, adult (or minor child head-of-household) has cooperated
with child support.
[[Page 17908]]
2=No.
9=Not applicable.
44. Number of Months Countable toward Federal Time Limit: Enter
the number of months countable toward the adult's (or minor child
head-of-household's) Federal five-year time limit based on the
cumulative amount of time the individual has received Federal TANF
assistance received from both the State (Tribe) and other States or
Tribes. Reporting of this data element is optional for individuals
whose family affiliation code is 2, 3, or 5.
45. Number of Countable Months Remaining Under State's (Tribe's)
Time Limit: Enter the number of months that remain countable toward
the adult's (or minor child head-of-household's) State (Tribal) time
limit. Reporting of this data element is optional for individuals
whose family affiliation code is 2, 3, or 5.
46. Is Current Month Exempt from the State's (Tribe's) Time
Limit: Enter the one-digit code that indicates the adult's (or minor
child head-of-household's) current exempt status from State's
(Tribe's) time limit. Reporting of this data element is optional for
individuals whose family affiliation code is 2, 3, or 5.
1=Yes, adult (or minor child head-of-household) is exempt from
the State's (Tribe's) time limit for the reporting month.
2=No.
47. Employment Status: Enter the one-digit code that indicates
the adult's (or minor child head-of-household's) employment status.
Reporting of this data element is optional for individuals whose
family affiliation code is 5.
1=Employed.
2=Unemployed, looking for work.
3=Not in labor force (i.e, unemployed, not looking for work,
includes discouraged workers).
48. Work Participation Status:
Guidance: This item is used in calculating the work
participation rates. The following two definitions are used in
reporting this item and in determining which families are included
in and excluded from the calculations.
``Disregarded'' from the participation rate means the TANF
family is not included in the calculation of the work participation
rate.
``Exempt'' means that the individual will not be penalized for
failure to engage in work (i.e., good cause exception); however, the
TANF family is included in the calculation of the work participation
rate.
A State is not required to disregard all families that could be
disregarded. For example, a family with a single custodial parent
with child under 12 months (and the parent has not been disregarded
for 12 months) may be disregarded. However, if the single custodial
parent is meeting the work requirements, the State may want to
include the family in its work participation rate. In this
situation, the State should use work participation status code
``19'' rather than code ``01''.
Instruction: Enter the two-digit code that indicates the adult's
(or minor child head-of-household's) work participation status. If
the State chooses to include the noncustodial parent in the two-
parent work participation rate, the State must code the data element
``Type of Family for Work Participation Rate'' with a ``2'' and
enter the applicable code for this data element. If a State chooses
to exclude the noncustodial parent from the two-parent work
participation rate, the State must code the data element ``Type of
Family for Work Participation'' with a ``1'' and code the data
element ``Work Participation Status'' for the noncustodial parent
with a ``99''. This data element is not applicable for individuals
whose family affiliation code is 2, 3, 4, or 5 (i.e., use code
``99'' or leave blank).
01=Disregarded from participation rate, single custodial parent
with child under 12 months.
02=Disregarded from participation rate because all of the
following apply: required to participate, but not participating; and
sanctioned for the reporting month, but not sanctioned for more than
3 months within the preceding 12-month period (Note, this code
should be used only in a month for which the family is disregarded
from the participation rate. While one or more adults may be
sanctioned in more than 3 months within the preceding 12-month
period, the family may not be disregarded from the participation
rate for more than 3 months within the preceding 12-month period).
03=Disregarded, family is part of an ongoing research evaluation
(as a member of a control group or experimental group) approved
under Section 1115 of the Social Security Act.
04=Disregarded from the work participation rate based on an
inconsistency under an approved welfare reform waiver that exempts
the family from participation.
05=Disregarded from participation rate, based on participation
in a Tribal Work Program, and State has opted to exclude all Tribal
Work Program participants from its work participation rate.
06=Exempt, single custodial parent with child under age 6 and
child care unavailable.
07=Exempt, disabled (not using an extended definition under a
State waiver).
08=Exempt, caring for a severely disabled child (not using an
extended definition under a State waiver).
09=Exempt, under a federally recognized good cause domestic
violence waiver.
10=Exempt, State waiver.
11=Exempt, other.
12=Required to participate, but not participating; sanctioned
for the reporting month; and sanctioned for more than 3 months
within the preceding 12-month period.
13=Required to participate, but not participating; and
sanctioned for the reporting month, but not sanctioned for more than
3 months within the preceding 12-month period.
14=Required to participate, but not participating; and not
sanctioned for the reporting month.
15=Deemed engaged in work--single teen head-of-household or
married teen who maintains satisfactory school attendance.
16=Deemed engaged in work--single teen head-of-household or
married teen who participates in education directly related to
employment for an average of at least 20 hours per week during the
reporting month.
17=Deemed engaged in work--parent or relative (who is the only
parent or caretaker relative in the family) with child under age 6
and parent engaged in work activities for at least 20 hours per
week.
18=Required to participate and participating, but not meeting
minimum participation requirements.
19=Required to participate and meeting minimum participation
requirements.
99=Not applicable (e.g., person living in household and whose
income or resources are counted in determining eligibility for or
amount of assistance of the family receiving assistance, but not in
eligible family receiving assistance or noncustodial parent that the
State opted to exclude in determining participation rate).
Adult Work Participation Activities
Guidance: To calculate the average number of hours per week of
participation in a work activity, add the number of hours of
participation across all weeks in the month and divide by the number
of weeks in the month. Round to the nearest whole number.
Some weeks have days in more than one month. Include such a week
in the calculation for the month that contains the most days of the
week (e.g., the week of July 27-August 2, 1997 would be included in
the July calculation). Acceptable alternatives to this approach must
account for all weeks in the fiscal year. One acceptable alternative
is to include the week in the calculation for whichever month the
Friday falls (i.e., the JOBS approach.) A second acceptable
alternative is to count each month as having 4.33 weeks.
During the first or last month of any spell of assistance, a
family may happen to receive assistance for only part of the month.
If a family receives assistance for only part of a month, the State
(Tribe) may count it as a month of participation if an adult (or
minor child head-of-household) in the family (both adults, if they
are both required to work) is engaged in work for the minimum
average number of hours for any full week(s) that the family
receives assistance in that month.
Special Rules: Each adult (or minor child head-of-household) has
a life-time limit for vocational educational training. Vocational
educational training may only count as a work activity for a total
of 12 months. For any adult (or minor child head-of-household) that
has exceeded this limit, enter ``0'' as the average number of hours
per week of participation in vocational education training, even if
(s)he is engaged in vocational education training. The additional
participation in vocational education training may be coded under
``Other.''
The exception to the above 12-month rule may be a State that
received a waiver that is inconsistent with the provision limiting
vocational education training. In this case the State would adhere
to the terms and conditions of the waiver.
Limitations: The four limitations concerning job search and job
readiness are: (1) Job search and job readiness assistance only
count for 6 weeks in any fiscal year; (2) An individual's
participation in job search and job readiness assistance counts for
no more than 4 consecutive weeks; (3) If the
[[Page 17909]]
State's (Tribe's) total unemployment rate for a fiscal year is at
least 50 percent greater than the United States' total unemployment
rate for that fiscal year or the State is a needy State (within the
meaning of section 403 (b)(6)), then an individual's participation
in job search or job readiness assistance counts for up to 12 weeks
in that fiscal year; and (4) A State may count 3 or 4 days of job
search and job readiness assistance during a week as a full week of
participation, but only once for any individual.
For each week in which an adult (or minor child head-of-
household) exceeds any of these limitations, use ``0'' as the number
of hours in calculating the average number of hours per week of job
search and job readiness, even if (s)he may be engaged in job search
or job readiness activities.
If a State is operating its TANF Program under a waiver that
permits broader rules for participation in job search and job
readiness training, the TANF rules apply. Any additional
participation in job search and job readiness training permitted
under the waiver rules should be coded under data element
<SUP><greek-i></SUP>61 ``Additional Work Activities Permitted Under
Waiver Demonstration.''
Instruction: For each work activity in which the adult (or minor
child head-of-household) participated during the reporting month,
enter the average number of hours per week of participation, except
as noted above. For each work activity in which the adult (or minor
child head-of-household) did not participate, enter zero as the
average number of hours per week of participation. These work
activity data elements are applicable only for individuals whose
family affiliation code is 1.
49. Unsubsidized Employment.
50. Subsidized Private-Sector Employment.
51. Subsidized Public-Sector Employment.
52. Work Experience.
53. On-the-job Training.
54. Job Search and Job Readiness Assistance.
Instruction: As noted above, the statute limits participation in
job search and job readiness training in four ways. Enter, in this
data element, the average number of hours per week of participation
in job search and job readiness training that are within the
statutory limitations.
Some State waivers permit participation in job search and job
readiness training beyond the statutory limits. Do not count hours
of participation in job search and job readiness training beyond the
TANF limit where allowed by waivers in this item. Instead, count the
hours of participation beyond the TANF limit in the item
``Additional Work Activities Permitted Under Waiver Demonstration.''
Otherwise, count the additional hours of work participation under
the work activity ``Other Work Activities.''
55. Community Service Programs.
56. Vocational Educational Training:
Instruction: As noted above, the statute contains special rules
limiting an adult's (or minor child head-of-household's)
participation in vocational educational training to twelve months.
Enter, in this data element, the average number of hours per week of
participation in vocational educational training that are within the
statutory limits.
Some State waivers permit participation in vocational
educational training beyond the statutory limits. Do not count hours
of participation in vocational educational training beyond the TANF
12 month life-time limit where allowed by waivers in this item.
Instead, count the hours of participation beyond the TANF limit in
the item ``Additional Work Activities Permitted Under Waiver
Demonstration.'' Otherwise, count the additional hours of work
participation under the work activity ``Other Work Activities.''
57. Job Skills Training Directly Related to Employment.
58. Education Directly Related to Employment for Individuals
with no High School Diploma or Certificate of High School
Equivalency.
59. Satisfactory School Attendance for Individuals with No High
School Diploma or Certificate of High School Equivalency.
60. Providing Child Care Services to an Individual Who Is
Participating in a Community Service Program.
61. Additional Work Activities Permitted Under Waiver
Demonstration:
Instruction: Some States' waivers permit participation in work
activities that are not permitted under the statute. Enter the
adult's (or minor child head-of-household's) average number of hours
per week of participation in such work activities in this data
element. For example, some State waivers permit participation in
vocational educational training and job search beyond the TANF
statutory limits. Count hours of participation in these activities
beyond the TANF limits where allowed by the State waivers in this
item. Otherwise, count the additional hours of work participation in
the activity ``Other Work Activities.''
62. Other Work Activities:
Guidance: This data element collects information on work
activities provided that are not permitted under a State waiver and
are beyond the requirements of the statute. Reporting on this data
element is optional. States may want to demonstrate their additional
efforts at helping individuals become self-sufficient even though
these activities are not considered in the calculation of the work
participation rates.
63. Required Hours of Work Under Waiver Demonstration:
Guidance: In approving waivers, ACF specified hours of
participation in several instances. One type of hour change in the
welfare reform demonstrations was the recognition, as part of a
change in work activities and/or exemptions, that the hours
individuals worked should be consistent with their abilities and in
compliance with an employability or personal responsibility plan or
other criteria in accordance with the waiver terms and conditions.
If the hour requirement in this case was part of a specific work
component waiver, the State could show inconsistency and could use
the waiver hours instead of the hours in section 407.
Instruction: If applicable, enter the two-digit number that
represents the average number of hours per week of work
participation required of the individual under a work component
waiver. Otherwise, leave blank or enter ``0.'' This data element is
not applicable for individuals whose family affiliation code is 2,
3, 4, or 5.
64. Amount of Earned Income: Enter the dollar amount of the
adult's (or minor child head-of-household's) earned income for the
reporting month or for the month used to budget for the reporting
month. Include wages, salaries, and other earned income in this
item.
65. Amount of Unearned Income: Unearned income has five
categories. For each category of unearned income, enter the dollar
amount of the adult's (or minor child head-of-household's) unearned
income for the reporting month or for the month used to budget for
the reporting month.
a. Earned Income Tax Credit (EITC):
Guidance: Earned Income Tax Credit is a refundable Federal,
State, or local tax credit for families and dependent children. EITC
payments are received monthly (as advance payment through the
employer), annually (as a refund from IRS), or both.
Instruction: Enter the total dollar amount of the Earned Income
Tax Credit actually received, whether received as an advance payment
or a single payment (e.g., tax refund), by the adult (or minor child
head-of-household) during the reporting month or the month used to
budget for the reporting month. If the State counts the EITC as a
resource, report it here as unearned income in the month received
(i.e., reporting month or budget month, whichever the State is
using). If the State assumes an advance payment is applied for and
obtained, only report what is actually received for this item.
b. Social Security: Enter the dollar amount of Social Security
benefits that the adult in the State (Tribal) TANF family has
received for the reporting month or for the month used to budget for
the reporting month.
c. SSI: Enter the dollar amount of SSI that the adult in the
State (Tribal) TANF family has received for the reporting month or
for the month used to budget for the reporting month.
d. Worker's Compensation: Enter the dollar amount of Worker's
Compensation that the adult in the State (Tribal) TANF family has
received for the reporting month or for the month used to budget for
the reporting month.
e. Other Unearned Income:
Guidance: Other unearned income includes (but is not limited to)
RSDI benefits, Veterans benefits, Unemployment Compensation, other
government benefits, a housing subsidy, a contribution or income-in-
kind, deemed income, Public Assistance or General Assistance,
educational grants/scholarships/loans, and other. Do not include
EITC, Social Security, SSI, Worker's Compensation, value of food
stamp assistance, the amount of a Child Care subsidy, or the amount
of Child Support.
Instruction: Enter the dollar amount of other unearned income
that the adult in the State TANF family has received for the
reporting month or for the month used to budget for the reporting
month.
Child Characteristics
This section allows for coding the child characteristics for up
to ten children in the TANF family. A minor child head-of-
[[Page 17910]]
household should be coded as an adult, not as a child. The youngest
child should be coded as the first child in the family, the second
youngest child as the second child, and so on.
If there are more than ten children in the TANF family, use the
following order to identify the persons to be coded: (1) children in
the eligible family receiving assistance in order from youngest to
oldest; (2) minor siblings of child in the eligible family receiving
assistance from youngest to oldest; and (3) any other children.
66. Family Affiliation:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: Enter the one-digit code that shows the child's
relation to the eligible family receiving assistance.
1=Member of the eligible family receiving assistance.
Not in eligible family receiving assistance, but in the
household
2=Parent of minor child in the eligible family receiving
assistance.
3=Caretaker relative of minor child in the eligible family
receiving assistance.
4=Minor sibling of child in the eligible family receiving
assistance.
5=Person whose income or resources are considered in determining
eligibility for or amount of assistance for the eligible family
receiving assistance.
67. Date of Birth: Enter the eight-digit code for date of birth
for this child under the State (Tribal) TANF Program in the format
YYYYMMDD. If the child's date of birth is unknown and the family
affiliation code is not ``1,'' enter the code ``99999999''.
68. Social Security Number: Enter the nine-digit Social Security
Number for the child in the format nnnnnnnnn. Reporting of this data
element is optional for individuals whose family affiliation code is
4. If the Social Security number is unknown and the family
affiliation code is not ``1,'' enter ``999999999''.
69. Race/Ethnicity
Instruction: To allow for the multiplicity of race/ethnicity,
please enter the one-digit code for each category of race and
ethnicity of the TANF child. Reporting of this data element is
optional for individuals whose family affiliation code is 4 or 5.
Ethnicity:
a. Hispanic or Latino:
1=Yes, Hispanic or Latino.
2=No.
Race:
b. American Indian or Alaska Native:
1=Yes, American Indian or Alaska Native.
2=No.
c. Asian:
1=Yes, Asian.
2=No.
d. Black or African American:
1=Yes, Black or African American.
2=No.
e. Native Hawaiian or Other Pacific Islander:
1=Yes, Native Hawaiian or Pacific Islander.
2=No.
f. White:
1=Yes, White.
2=No.
70. Gender: Enter the one-digit code that indicates the child's
gender.
1=Male.
2=Female.
71. Receives Disability Benefits: The Act specifies five types
of disability benefits. Two of these types of disability benefits
are applicable to children. For each type of disability benefits,
enter the one-digit code that indicates whether or not the child
received the benefit.
a. Receives Benefits Based on Federal Disability Status Under
Non-Social Security Act Programs: These programs include Veteran's
disability benefits, Worker's disability compensation, and Black
Lung Disease disability benefits.
1=Yes, received benefits based on Federal disability status.
2=No.
b. Receives Supplemental Security Income Under Title XVI-SSI of
the Social Security Act:
1=Yes, received aid under Title XVI-SSI.
2=No.
72. Relationship to Head-of-Household:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Some of
these codes may not be applicable for children.
Instruction: Enter the two-digit code that shows the child's
relationship (including by marriage) to the head of the household,
as defined by the Food Stamp Program or as determined by the State
(Tribe), (i.e., the relationship to the principal person of each
person living in the household.)
01=Head-of-household.
02=Spouse.
03=Parent.
04=Daughter or son.
05=Stepdaughter or stepson.
06=Grandchild or great grandchild.
07=Other related person (brother, niece, cousin).
08=Foster child.
09=Unrelated child.
10=Unrelated adult.
73. Parent With Minor Child In the Family:
Guidance: This data element is used both for (1) the adult or
minor child head-of-household section and (2) the minor child
section. The same coding schemes are used in both sections. Code
``1'' is not applicable for children. A parent with a minor child in
the family may be a natural parent, adoptive parent, or step-parent
of a minor child in the family. Reporting of this data element is
optional for individuals whose family affiliation code is 4 or 5.
Instruction: Enter the one-digit code that indicates the child's
parental status.
1=Yes, a parent with a minor child in the family and used in
two-parent participation rate.
2=Yes, a parent with a minor child in the family, but not used
in two-parent participation rate.
3=No.
74. Educational Level: Enter the two-digit code to indicate the
highest level of education attained by the child. Unknown is not an
acceptable code for individuals whose family affiliation code is
``1''. Reporting of this data element is optional for individuals
whose family affiliation code is 4.
01-11=Grade level completed in primary/secondary school
including secondary level vocational school or adult high school.
12=High school diploma, GED, or National External Diploma
Program.
13=Awarded Associate's Degree.
14=Awarded Bachelor's Degree.
15=Awarded graduate degree (Master's or higher).
16=Other credentials (degree, certificate, diploma, etc.).
98=No formal education.
99=Unknown.
75. Citizenship/Alienage:
Instruction: Enter the one-digit code that indicates the child's
citizenship/alienage. Unknown is not an acceptable code for an
individual whose family affiliation code is ``1''. Reporting of this
data element is optional for individuals whose family affiliation
code is 4.
1=U.S. citizen, including naturalized citizens.
2=Qualified alien.
9=Unknown.
76. Amount of Unearned Income: Unearned income has two
categories. For each category of unearned income, enter the dollar
amount of the child's unearned income.
a. SSI: Enter the dollar amount of SSI that the child in the
State (Tribal) TANF family has received for the reporting month or
for the month used to budget for the reporting month.
b. Other Unearned Income: Enter the dollar amount of other
unearned income that the child in the State (Tribal) TANF family has
received for the reporting month or for the month used to budget for
the reporting month.
Appendix B--TANF Data Report--Section Two Disaggregated Data Collection
for Families No Longer Receiving Assistance under the TANF Program
Instructions and Definitions
General Instruction: The State agency or Tribal grantee should
collect and report data for each data element. The data must be
complete (unless explicitly instructed to leave the field blank) and
accurate (i.e., correct).
An ``Unknown'' code may appear only on four data elements (#15
Date of Birth, #16 Social Security Number, #24 Educational Level,
and #25 Citizenship/Alienage). For these data elements, unknown is
not an acceptable code for individuals who are members of the
eligible family (i.e., family affiliation code ``1''). States are
not expected to track closed cases in order to collect information
on families for months after the family has left the rolls. Rather,
States are to report based on the last month of assistance.
1. State FIPS Code: Enter your two-digit State code from the
following listing. These codes are the standard codes used by the
National Institute of Standards and Technology. Tribal grantees
should leave this field blank.
[[Page 17911]]
------------------------------------------------------------------------
State Code
------------------------------------------------------------------------
Alabama......................................................... 01
Alaska.......................................................... 02
American Samoa.................................................. 60
Arizona......................................................... 04
Arkansas........................................................ 05
California...................................................... 06
Colorado........................................................ 08
Connecticut..................................................... 09
Delaware........................................................ 10
Dist. of Columbia............................................... 11
Florida......................................................... 12
Georgia......................................................... 13
Guam............................................................ 66
Hawaii.......................................................... 15
Idaho........................................................... 16
Illinois........................................................ 17
Indiana......................................................... 18
Iowa............................................................ 19
Kansas.......................................................... 20
Kentucky........................................................ 21
Louisiana....................................................... 22
Maine........................................................... 23
Maryland........................................................ 24
Massachusetts................................................... 25
Michigan........................................................ 26
Minnesota....................................................... 27
Mississippi..................................................... 28
Missouri........................................................ 29
Montana......................................................... 30
Nebraska........................................................ 31
Nevada.......................................................... 32
New Hampshire................................................... 33
New Jersey...................................................... 34
New Mexico...................................................... 35
New York........................................................ 36
North Carolina.................................................. 37
North Dakota.................................................... 38
Ohio............................................................ 39
Oklahoma........................................................ 40
Oregon.......................................................... 41
Pennsylvania.................................................... 42
Puerto Rico..................................................... 72
Rhode Island.................................................... 44
South Carolina.................................................. 45
South Dakota.................................................... 46
Tennessee....................................................... 47
Texas........................................................... 48
Utah............................................................ 49
Vermont......................................................... 50
Virgin Islands.................................................. 78
Virginia........................................................ 51
Washington...................................................... 53
West Virginia................................................... 54
Wisconsin....................................................... 55
Wyoming......................................................... 56
------------------------------------------------------------------------
2. County FIPS Code: Enter the three-digit code established by
the National Institute of Standards and Technology for
classification of counties and county equivalents. Codes were
devised by listing counties alphabetically and assigning
sequentially odd integers; e.g., 001, 003, 005. A complete list of
codes is available in Appendix F of the TANF Sampling and
Statistical Methods Manual. Tribal grantees should leave this field
blank.
3. Tribal Code: For Tribal grantees, enter the three-digit
Tribal code that represents your Tribe (See Appendix E of the TANF
Sampling and Statistical Methods Manual for a complete listing of
Tribal Codes). State agencies should leave this field blank.
4. Reporting Month: Enter the four-digit year and two-digit
month code that identifies the year and month for which the data are
being reported.
5. Stratum:
Guidance: All families selected in the sample from the same
stratum must be assigned the same stratum code. Valid stratum codes
may range from ``00'' to ``99.'' States and Tribes with stratified
samples should provide the ACF Regional Office with a listing of the
numeric codes utilized to identify any stratification. If a State or
Tribe uses a non-stratified sample design or opts to provide data
for its entire caseload, enter the same stratum code any two-digit
number) for each family.
Instruction: Enter the two-digit stratum code.
Family-Level Data
Definition: For reporting purposes, the TANF family means (a)
all individuals receiving assistance as part of a family under the
State's TANF Program; and (b) the following additional persons
living in the household, if not included under (a) above:
(1) Parent(s) or caretaker relative(s) of any minor child
receiving assistance;
(2) Minor siblings (including unborn children) of any child
receiving assistance; and
(3) Any person whose income or resources would be counted in
determining the family's eligibility for or amount of assistance.
6. Case Number--TANF:
Guidance: If the case number is less than the allowable eleven
characters, a State may use lead zeros to fill in the number.
Instruction: Enter the number that was assigned by the State
agency or Tribal grantee to uniquely identify the TANF family.
7. ZIP Code: Enter the five-digit ZIP code for the family's
place of residence for the reporting month.
8. Disposition: Enter one of the following codes for each TANF
family.
1=Data collection completed.
2=Not subject to data collection/listed in error.
9. Reason for Closure:
Guidance: A closed case is a family whose assistance was
terminated for the reporting month, but received assistance under
the State's TANF Program in the prior month. A temporarily suspended
case is not a closed case. If there is more than one applicable
reason for closure, determine the principal (i.e., most relevant)
reason. If two or more reasons are equally relevant, use the reason
with the lowest numeric code. For example, when an adult marries,
the income and resources of the new spouse are considered in
determining eligibility. If, at the time of the marriage, the family
becomes ineligible because of the addition of the spouse's income
and/or resources, the case closure should be coded using code ``2''.
If the family did not became ineligible based on the income and
resources at the time of the marriage, but rather due to an increase
in earnings subsequent to the marriage, then the case closure should
be coded using code ``1''.
Instruction: Enter the two-digit code that indicates the reason
for the TANF family no longer receiving assistance.
01=Employment and/or excess earnings.
02=Marriage.
03=Federal five-year time limit.
Sanctions:
04=Work-related sanction.
05=Child support sanction.
06=Teen parent failing to meet school attendance requirement.
07=Teen parent failing to live in an adult setting.
08=Failure to finalize an individual responsibility plan (e.g.,
did not sign plan).
09=Failure to meet individual responsibility plan provision or
other behavioral requirements (e.g., immunize a minor child, attend
parenting classes).
State (Tribal) Policies:
10=State (Tribal) time limit, if different than Federal.
11=Child support collected.
12=Excess unearned income (exclusive of child support
collected).
13=Excess resources.
14=Youngest child too old to qualify for assistance.
15=Minor child absent from the home for a significant time
period.
16=Failure to appear at eligibility/redetermination appointment,
submit required verification materials, and/or cooperate with
eligibility requirements.
17=Transfer to separate State MOE program.
Other.
18=Family voluntarily closes the case.
99=Other.
10. Received Subsidized Housing:
Guidance: Subsidized housing refers to housing for which money
was paid by the Federal, State, or local government or through a
private social service agency to the family or to the owner of the
housing to assist the family in paying rent. Two families sharing
living expenses does not constitute subsidized housing.
Instruction: Enter the one-digit code that indicates whether or
not the TANF family received subsidized housing for the reporting
month (or for the last month of TANF assistance).
1=Public housing.
2=Rent subsidy.
3=No housing subsidy.
11. Received Medical Assistance: Enter ``1'' if, for the
reporting month (or for the last month of TANF assistance), any TANF
family member was enrolled in Medicaid and, thus eligible to receive
medical assistance under the State plan approved under Title XIX or
``2'' if no TANF family member was enrolled in Medicaid.
1=Yes, enrolled in Medicaid.
2=No.
12. Received Food Stamps: Enter the one-digit code that
indicates whether or not the TANF family received food stamp
assistance for the reporting month (or for the last month of TANF
assistance).
1=Yes, received food stamp assistance.
2=No.
13. Received Subsidized Child Care:
Instruction: If the TANF family received subsidized child care
for services in the reporting month (or for the last month of TANF
assistance), enter code ``1'' or ``2,'' whichever is appropriate.
Otherwise, enter code ``3.''
[[Page 17912]]
1=Yes, received federally funded (entirely or in part) child
care (e.g., receives either TANF, CCDF, SSBG, or other federally
funded child care).
2=Yes, received child care funded entirely under a State,
Tribal, and/or local program (i.e., no Federal funds used).
3=No.
Person-Level Data
This section allows for coding up to sixteen persons in the TANF
family. If there are more than sixteen persons in the TANF family,
use the following order to identify the persons to be coded: (1) the
head-of-household; (2) parents in the eligible family receiving
assistance; (3) children in the eligible family receiving
assistance; (4) other adults in the eligible family receiving
assistance; (5) parents not in the eligible family receiving
assistance; (6) caretaker relatives not in the eligible family
receiving assistance; (7) minor siblings of a child in the eligible
family; and (8) other persons, whose income or resources count in
determining eligibility for or amount of assistance of the eligible
family receiving assistance, in descending order from the person
with the most income to the person with the least income. As
indicated below, reporting for certain specified data elements in
this section is optional for certain individuals (whose family
affiliation code is a 2, 3, 4, or 5).
14. Family Affiliation:
Instruction: Enter the one-digit code that shows the
individual's relation to the eligible family receiving assistance.
1=Member of the eligible family receiving assistance.
Not in eligible family receiving assistance, but in the
household:
2=Parent of minor child in the eligible family receiving
assistance.
3=Caretaker relative of minor child in the eligible family
receiving assistance.
4=Minor sibling of child in the eligible family receiving
assistance.
5=Person whose income or resources are considered in determining
eligibility for or amount of assistance for the eligible family
receiving assistance.
15. Date of Birth: Enter the eight-digit code for date of birth
for this individual under TANF in the format YYYYMMDD. If the
individual's date of birth is unknown and the individual's family
affiliation code is not ``1,'' enter the code ``99999999''.
16. Social Security Number: Enter the nine-digit Social Security
Number for the individual in the format nnnnnnnnn. If the social
security number is unknown and the individual's family affiliation
code is not ``1,'' enter ``999999999''.
17. Race/Ethnicity: Instructions: To allow for the multiplicity
of race/ethnicity, please enter the one-digit code for each category
of race and ethnicity of the TANF individual. Reporting of this data
element is optional for individuals whose family affiliation code is
4 or 5.
Ethnicity:
a. Hispanic or Latino:
1=Yes, Hispanic or Latino.
2=No.
b. Race:
c. American Indian or Alaska Native:
1=Yes, American Indian or Alaska Native.
2=No.
d. Asian:
1=Yes, Asian.
2=No.
e. Black or African American:
1=Yes, Black or African American.
2=No.
f. Native Hawaiian or Other Pacific Islander:
1=Yes, Native Hawaiian or Pacific Islander.
2=No.
g. White:
1=Yes, White.
2=No.
18. Gender: Enter the one-digit code that indicates the
individual's gender.
1=Male.
2=Female.
19. Received Disability Benefits:
Instructions: The Act specifies five types of disability
benefits. For each type of disability benefits, enter the one-digit
code that indicates whether or not the individual received the
benefit.
a. Received Federal Disability Insurance Benefits Under the
Social Security OASDI Program (Title II of the Social Security Act):
Enter the one-digit code that indicates the adult received Federal
disability insurance benefits for the reporting month (or the last
month of TANF assistance). This item is not required to be coded for
a child.
1=Yes, received Federal disability insurance.
2=No.
b. Receives Benefits Based on Federal Disability Status Under
Non-Social Security Act Programs: These programs include Veteran's
disability benefits, Worker's disability compensation, and Black
Lung Disease disability benefits. Enter the one-digit code that
indicates the individual received benefits based on Federal
disability status for the reporting month (or the last month of TANF
assistance). This data element should be coded for each adult and
child with family affiliation code ``1''.
1=Yes, received benefits based on Federal disability status.
2=No.
c. Received Aid to the Permanently and Totally Disabled Under
Title XIV-APDT of the Social Security Act: Enter the one-digit code
that indicates the adult received aid under a State plan approved
under Title XIV for the reporting month (or the last month of TANF
assistance). This item is not required to be coded for a child.
1=Yes, received aid under Title XIV-APDT.
2=No.
d. Received Aid to the Aged, Blind, and Disabled Under Title
XVI-AABD of the Social Security Act: Enter the one-digit code that
indicates the adult received aid under a State plan approved under
Title XVI-AABD for the reporting month (or the last month of TANF
assistance). This item is not required to be coded for a child.
1=Yes, received aid under Title XVI-AABD.
2=No.
e. Received Supplemental Security Income Under Title XVI-SSI of
the Social Security Act: Enter the one-digit code that indicates the
individual received aid under a State plan approved under Title XVI-
SSI for the reporting month (or the last month of TANF assistance).
This data element should be coded for each adult and child with
family affiliation code ``1''.
1=Yes, received aid under Title XVI-SSI.
2=No.
20. Marital Status: Enter the one-digit code for the marital
status of the adult recipient. Reporting of this data element is
optional for individuals whose family affiliation code is 4 or 5.
1=Single, never married.
2=Married, living together.
3=Married, but separated.
4=Widowed.
5=Divorced.
21. Relationship to Head-of-Household:
Instruction: Enter the two-digit code that shows the
individual's relationship (including by marriage) to the head of the
household, as defined by the Food Stamp Program or as determined by
the State (Tribe), (i.e., the relationship to the principal person
of each person living in the household.) If a minor child head-of-
household, enter code ``01.''
01=Head-of-household.
02=Spouse.
03=Parent.
04=Daughter or son.
05=Stepdaughter or stepson.
06=Grandchild or great grandchild.
07=Other related person (brother, niece, cousin).
08=Foster child.
09=Unrelated child.
10=Unrelated adult.
22. Parent With Minor Child In the Family:
Guidance: A parent with a minor child in the family may be a
natural parent, adoptive parent, or step-parent of a minor child in
the family. Reporting of this data element is optional for
individuals whose family affiliation code is 3, 4, or 5.
Instruction: Enter the one-digit code that indicates the
individual's parental status.
1=Yes, a parent with a minor child in the family.
2=No.
23. Needs of a Pregnant Woman: Some States (Tribes) consider the
needs of a pregnant woman in determining the amount of assistance
that the TANF family receives. If the individual was pregnant and
the needs associated with this pregnancy were considered in
determining the amount of assistance for the last month of TANF
assistance, enter a ``1'' for this data element. Otherwise enter a
``2'' for this data element. This data element is applicable only
for individuals whose family affiliation code is 1.
1=Yes, additional needs associated with pregnancy were
considered in determining the amount of assistance.
2=No.
24. Educational Level: Enter the two-digit code to indicate the
highest level of education attained by the individual. Unknown is
not an acceptable code for individuals whose family affiliation code
is ``1''. Reporting of this data element is optional for individuals
whose family affiliation code is 4 or 5.
[[Page 17913]]
01-11=Grade level completed in primary/secondary school
including secondary level vocational school or adult high school.
12=High school diploma, GED, or National External Diploma
Program.
13=Awarded Associate's Degree.
14=Awarded Bachelor's Degree.
15=Awarded graduate degree (Master's or higher).
16=Other credentials (degree, certificate, diploma, etc.).
98=No formal education.
99=Unknown.
25. Citizenship/Alienage:
Instruction: Enter the one-digit code that indicates the adult's
(or minor child head-of-household's) citizenship/alienage. Unknown
is not an acceptable code for an individual whose family affiliation
code is ``1''. Reporting of this data element is optional for
individuals whose family affiliation code is 4 or 5.
1=U.S. citizen, including naturalized citizens.
2=Qualified alien.
9=Unknown.
26. Number of Months Countable toward Federal Time Limit: Enter
the number of months countable toward the adult's (or minor child
head-of-household's) Federal five-year time limit based on
assistance received from (1) the State (Tribe) and (2) other States
or Tribes. Reporting of this data element is optional for
individuals whose family affiliation code is 2, 3, 4, or 5.
27. Number of Countable Months Remaining Under State's (Tribe's)
Time Limit: Enter the number of months that remain countable toward
the adult's (or minor child head-of-household's) State (Tribal) time
limit. Reporting of this data element is optional for individuals
whose family affiliation code is 2, 3, 4, or 5.
28. Employment Status: Enter the one-digit code that indicates
the adult's (or minor child head-of-household's) employment status.
Leave this field blank for other minor children. Reporting of this
data element is optional for individuals whose family affiliation
code is 4 or 5.
1=Employed.
2=Unemployed, looking for work.
3=Not in labor force (i.e, unemployed, not looking for work,
includes discouraged workers).
29. Amount of Earned Income: Enter the amount of the adult's (or
minor child head-of-household's) earned income for the last month on
assistance or for the month used to budget for the last month on
assistance.
30. Amount of Unearned Income: Enter the dollar amount of the
individual's unearned income for the last month on assistance or for
the month used to budget for the last month on assistance.
Appendix C--TANF Data Report--Section Three--Aggregated Data Collection
for Families Applying for, Receiving, and No Longer Receiving
Assistance Under the TANF Program
Instructions and Definitions
General Instruction: The State agency or Tribal grantee are to
collect and report data for each data element, unless explicitly
instructed to leave the field blank. Monthly caseload counts (e.g.,
number of families, number of two-parent families, and number of
closed cases) and number of recipients must be unduplicated monthly
totals. States and Tribal grantees may use samples to estimate the
monthly totals only for data elements #4, #5, #6, #15, #16, and #17.
1. State FIPS Code: Enter your two-digit State code. Tribal
grantees should leave this field blank.
2. Tribal Code: For Tribal grantees only, enter the three-digit
Tribal code that represents your Tribe (See Appendix E of the TANF
Sampling and Statistical Methods Manual for a complete listing of
Tribal Codes). State agencies should leave this field blank.
3. Calendar Quarter: The four calendar quarters are as follows:
First quarter--January-March.
Second quarter--April-June.
Third quarter--July-September.
Fourth quarter--October-December.
Enter the four-digit year and one-digit quarter code (in the
format YYYYQ) that identifies the calendar year and quarter for
which the data are being reported (e.g., first quarter of 1997 is
entered as ``19971'').
Applications
Guidance: The term ``application'' means the action by which an
individual indicates in writing to the agency administering the
State (or Tribal) TANF Program his/her desire to receive assistance.
Instruction: All counts of applications should be unduplicated
monthly totals.
4. Total Number of Applications: Enter the total number of
approved and denied applications received for each month of the
quarter. For each month in the quarter, the total in this item
should equal the sum of the number of approved applications (in item
#5) and the number of denied applications (in item #6). The monthly
totals for this element may be estimated from samples.
A. First Month:
B. Second Month:
C. Third Month:
5. Total Number of Approved Applications: Enter the number of
applications approved during each month of the quarter. The monthly
totals for this element may be estimated from samples.
A. First Month:
B. Second Month:
C. Third Month:
6. Total Number of Denied Applications: Enter the number of
applications denied (or otherwise disposed of) during each month of
the quarter. The monthly totals for this element may be estimated
from samples.
A. First Month:
B. Second Month:
C. Third Month:
Active Cases
For purposes of completing this report, include all TANF
eligible cases receiving assistance (i.e., cases funded under the
TANF block grant and State MOE funded TANF cases) as cases receiving
assistance under the State (Tribal) TANF Program. All counts of
families and recipients should be unduplicated monthly totals.
7. Total Amount of Assistance: Enter the dollar value of all
assistance (cash and non-cash) provided to TANF families under the
State (Tribal) TANF Program for each month of the quarter. Round the
amount of assistance to the nearest dollar.
A. First Month:
B. Second Month:
C. Third Month:
8. Total Number of Families: Enter the number of families
receiving assistance under the State (Tribal) TANF Program for each
month of the quarter. The total in this item should equal the sum of
the number of two-parent families (in item #9), the number of one-
parent families (in item #10) and the number of no-parent families
(in item #11).
A. First Month:
B. Second Month:
C. Third Month:
9. Total Number of Two-parent Families: Enter the total number
of 2-parent families receiving assistance under the State (Tribal)
TANF Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
10. Total Number of One-Parent Families: Enter the total number
of one-parent families receiving assistance under the State (Tribal)
TANF Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
11. Total Number of No-Parent Families: Enter the total number
of no-parent families receiving assistance under the State (Tribal)
TANF Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
12. Total Number of Recipients: Enter the total number of
recipients receiving assistance under the State (Tribal) TANF
Program for each month of the quarter. The total in this item should
equal the sum of the number of adult recipients (in item #13) and
the number of child recipients (in item #14).
A. First Month:
B. Second Month:
C. Third Month:
13. Total Number of Adult Recipients: Enter the total number of
adult recipients receiving assistance under the State (Tribal) TANF
Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
14. Total Number of Child Recipients: Enter the total number of
child recipients receiving assistance under the State (Tribal) TANF
Program for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
15. Total Number of Non-Custodial Parents Participating in Work
Activities: Enter the total number of noncustodial parents
participating in work activities (even if not receiving assistance)
under the State (Tribal) TANF Program for each month of the quarter.
The monthly totals for this element may be estimated from samples.
A. First Month:
B. Second Month:
C. Third Month:
16. Total Number of Births: Enter the total number of births in
families receiving
[[Page 17914]]
assistance under the State (Tribal) TANF Program for each month of
the quarter. The monthly totals for this element may be estimated
from samples.
A. First Month:
B. Second Month:
C. Third Month:
17. Total Number of Out-of-Wedlock Births: Enter the total
number of out-of-wedlock births in families receiving assistance
under the State (Tribal) TANF Program for each month of the quarter.
The monthly totals for this element may be estimated from samples.
A. First Month:
B. Second Month:
C. Third Month:
Closed Cases
18. Total Number of Closed Cases: Enter the total number of
closed cases for each month of the quarter.
A. First Month:
B. Second Month:
C. Third Month:
BILLING CODE 4184-01-M
[[Page 17915]]
[GRAPHIC] [TIFF OMITTED] TR12AP99.000
BILLDING CODE 4184-01-C
[[Page 17916]]
Appendix D--Section 2--Instruction For Completion of Form ACF-196--
Financial Reporting Form for the Temporary Assistance for Needy
Families (TANF) Program
All States must complete and submit this report in accordance
with these instructions on behalf of the State agency administering
the TANF Program.
Due Dates: This form must be submitted quarterly by February 14,
May 15, August 14 and November 14.
States must submit separate quarterly reports regarding the use
of each fiscal year's funds. For example, States must submit a
report regarding the expenditure of FY 98 funds in FY 99 separately
from the report on the use of FY 99 funds in FY 99. Until the State
reports that all of the Federal funds awarded for a given fiscal
year have been transferred or expended, States must continue to
submit quarterly reports on the use of funds from that fiscal year.
Distribution: The original copy (with an original signature)
should be submitted to: Administration for Children and Families,
Office of Financial Services, Division of Formula, Entitlement and
Block Grants, Aerospace Building, 6th Floor, 370 L'Enfant Promenade,
S.W., Washington, D.C. 20447. An additional copy should be submitted
to the ACF Regional Administrator.
General Instructions:
--Round all entries to the nearest dollar. Omit cents.
--Include costs of contracts and subcontracts in the appropriate
reporting category based on their nature or function.
--Enter State Name.
--Enter the Fiscal Year for which this report is being submitted.
Funding for each fiscal year is available until expended. Therefore,
for each fiscal year, a State may be submitting reports
simultaneously to cover two or more fiscal years. It is important to
indicate the year for which information is being reported.
The State must note that prior fiscal year unobligated balances
may only be expended on assistance or on the related administrative
costs of providing assistance. Expenditure of prior year unobligated
balances must be reported on the Expenditures on Assistance
categories (lines 5(a) through 5(d)) and any related administrative
costs reported on line 6(j).
--Transfers of TANF funds to the CCDF or SSBG must be made in the
current fiscal year with current fiscal year TANF funds. Transfers
of unobligated balances are not allowed after the end of the Federal
fiscal year in which the funds were awarded.
--Enter the ending dates for the current quarter (the quarter just
ended for which this constitutes the report of actual expenditures
and obligations) and the ending date of the next quarter (the
upcoming quarter which estimates are being requested on line 12).
Example: the State is reporting for the 1st quarter of the
Federal fiscal year (10/1 through 12/31), the report is due February
14, the current quarter ending date is 12/31, the next quarter
ending date for which estimates are requested is 6/30. The estimate
submitted by the State will be for the quarter of 4/1 through 6/30.
Estimates are not required on quarterly reports submitted for prior
fiscal years.
--Enter whether this report is being used for annual reconciliation
of the Contingency Fund.
--Enter the Federal Medical Assistance Percentage Rate used by the
State for the fiscal year for which contingency funds were received.
--Indicate whether this is a new report or a revision of a report
previously submitted for the same period.
--Entries are not required or are not applicable to blocks that are
shaded.
Columns: All amounts reported in columns (A) through (D) must be
actual expenditures or obligations made in accordance with all
applicable statutes and regulations. Amounts reported in the
estimates section are estimates of Federal expenditures to be made
during the quarter indicated based on the best information available
to the State.
Explanation of Columns:
Column (A) lines 1 through 4 refer to the Federal State Family
Assistance Grant (SFAG) awards plus any Supplemental Grant or Bonus
Funds, amounts transferred to the Child Care and Development Fund
(CCDF) (Discretionary Fund) and the Social Services Block Grant
(SSBG) program, and the amount Available for TANF.
Column: (A) lines 5 through 9 refer to the Federal TANF funds
that the State expended and obligated under its TANF program.
Column: (A) line 10 refers to the unobligated balance, which is
calculated by subtracting the amounts on lines 7 and 9 from the
amount on line 4.
Column: (A) line 12 is the SFAG grant award amount or the
percentage of the SFAG that the State estimates it will need for the
next quarter ending on the date indicated at the top of the form.
(See page 6 of Line Item Instructions)
Column: (B) lines 5 through 7 refer to State TANF expenditures
that the State is making to meet its basic Maintenance-of-Effort
(MOE) requirement. Include State funds that are commingled with
Federal funds and segregated State funds expended under the State
TANF program.
Note: States receiving contingency funds under section 403(b)
for the fiscal year must also use this column to report State TANF
expenditures made to meet the Contingency Fund (CF) MOE requirement
and matching expenditures made above the 100-percent MOE level.
Expenditures made to meet the CF MOE requirement and expenditures
made above the MOE level (for matching purposes) must be
expenditures made under the State TANF program only; they cannot
include expenditures made under ``separate State programs.'' In
addition, child care expenditures cannot be included as CF MOE
expenditures or expenditures that are matched with contingency
funds.
Column(B) line 11 refers to State replacement funds that the
State must expend in the TANF program due to the assessment of a
penalty and a reduction in its TANF grant awards.
Column (C) lines 5 through 7 refer to State expenditures that
the State is making in Separate State Programs, outside the State
TANF program, to meet its basic MOE requirement.
Note: For the basic MOE requirement, the cumulative total
expenditures (i.e., the sum of 7(B) + 7(C)) reported at the end of
the Federal fiscal year must add up to 80% of fiscal year 1994
historic State expenditures if the State did not meet the TANF work
participation requirements, or 75% of fiscal year 1994 historic
State expenditures if the State met the TANF work participation
requirements. Basic MOE requirements and tables were published in
Program Instruction No. TANF-ACF-PI-97-9, dated October 31, 1997.
For States that received contingency funds, line 7(B) minus line
5(B)(b)(assistance--child care) minus line 6(B)(b)(non--assistance
child care) must exceed 100 percent of the CF MOE requirement.
Column (D) line 1 refers to the Federal Contingency Fund grant
awards.
Column (D) lines 5 through 7 refer to the Federal share of
expenditures for which Federal funding is available at the FMAP rate
for the fiscal year for which contingency funds were received.
Contingency funds are available for match for State expenditures in
excess of 100% of CF MOE requirements as explained in the ``Note''
above.
Example: The State received contingency funds of $100,000 for 6
months of the fiscal year; the FMAP rate is 60% Federal and 40%
State; the CF 100% MOE requirement is $1,000,000; the State reported
expenditures under Columns (B) and (D) of $1,200,000. To determine
how much of the contingency funds the State can keep, the
expenditures of $1,000,000 (CF MOE requirement) must be subtracted
from the total State expenditures of $1,200,000. That difference
($200,000) is to be multiplied by 60 percent, i.e., $200,000 x 60%
= $120,000. The $120,000 must then be multiplied by \1/12\ times the
number of months a State received contingency funds, i.e., $120,000
x \1/12\ x 6 = $60,000. The State may keep no more than $60,000
of the $100,000 ACF awarded it for the Contingency Fund. (This
$60,000 may be further reduced as the result of the amendments to
section 403(b)(6) under the Adoption and Safe Families Act.)
Determining how much, if any, a State may keep of the
contingency funds awarded to it for a fiscal year, is possible only
after annual reconciliation of the Contingency Fund account is
completed. This form will serve as the annual reconciliation report
when submitted for the fourth quarter of the fiscal year. Based on
the example above, the amount claimed in line 7 of Column D (Total
Expenditures - Contingency Fund) may be no more than $60,000.
It is possible that a State will have received contingency funds
after the end of the fiscal year that apply to expenditures made in
the prior fiscal year. For a State receiving contingency funds for a
fiscal year after it has ended, the State will be required to submit
a revised fourth quarter report within 45 days of receipt of the
additional contingency funds. There is no carryover of such funds
from one fiscal year to the next.
[[Page 17917]]
Unobligated Balances Reported on a State Fourth Quarter Financial
Report for the Immediately Preceding Fiscal Year
Pursuant to section 404(e) of PRWORA of 1996, a State may
reserve amounts awarded to the State under section 403 (excluding
contingency funds), without fiscal year limitation, to provide
assistance under the State TANF program. Federal Unobligated
Balances carried forward from previous fiscal years may only be
expended on assistance and related administrative costs associated
with providing such assistance. The related Administrative Costs to
provide the assistance will be reported against the 15 percent
administrative cost cap for the fiscal year for which the Federal
funds were originally awarded.
Current Fiscal Year Federal Expenditures on Non-Assistance
The State must obligate by September 30 of the current fiscal
year any funds for Expenditures on Non-Assistance. Non-Assistance
expenditures are reported on Line 6 categories of this report. The
State must liquidate these obligations by September 30 of the
immediately succeeding Federal fiscal year for which the funds were
awarded. If the final liquidation amounts are lower than the
original amount obligated, these funds must be included in the
Unobligated Balance Line Item for the year in which they were
awarded. As mentioned in the previous paragraph, unobligated
balances from previous fiscal years may only be expended on
assistance and the administrative costs related to providing the
assistance.
Transfers
The State may transfer Federal funds to the CCDF Discretionary
Fund and/or the SSBG programs only during the current fiscal year
for which the funds were awarded. The State cannot transfer
unobligated balances from a previous fiscal year to the CCDF and/or
the SSBG programs. Limitations on transfers to these programs are
explained in the Line Item instructions.
State Replacement of Grant Reductions Resulting From Penalties
If a State's State Family Assistance Grant is reduced because of
the imposition of a penalty under section 409, section 409(a)(12)
provides that the State must replace the funds lost due to the
penalty with State funds in an amount that is no less than the
amount withheld. The State replacement funds must be included in
Line 11 Column (B). These funds must be in addition to funds
reported under line 7(B).
Line Item Instructions--Cumulative Fiscal Year Expenditures and
Obligations
Line 1. Awarded. Enter in column (A) the cumulative total of
Federal TANF funds awarded to the State (after any Tribal
adjustments) from October 1 of the Federal fiscal year for which the
report is being submitted through the current quarter being
reported. Enter in column (D) the cumulative total of contingency
funds awarded to the State from October 1 of the Federal fiscal year
for which the report is being submitted through the current quarter
being reported.
Note: The State must include all Federal TANF funds awarded for
the current fiscal year on Line 1(A), except contingency funds. This
includes SFAG funds, Supplemental Funds or any Bonus Funds. It does
not include Welfare-to-Work funds awarded under section 403(a)(5).
Line 2. Transferred to Child Care and Development Fund (CCDF).
Enter in column (A) the cumulative total of funds that the State
transferred to the Discretionary Fund of the Child Care and
Development Fund from October 1 of the Federal fiscal year for which
the report is being submitted through the current quarter being
reported. Section 404(d)(1) of the Act governs the transfer of TANF
funds to the Discretionary Fund. In compliance with section
404(d)(1), a State may not transfer more than 30% of its total
annual TANF funds. A State may transfer this entire amount to the
Discretionary Fund of the CCDF program. All funds transferred to the
Discretionary Fund of the CCDF program take on the rules and
regulations of that recipient Fund in place for the current fiscal
year at the time when the transfer occurs. A State can transfer
current-year Federal TANF funds only. The State may not transfer
prior year unobligated balances to the CCDF.
Line 3. Transferred to SSBG. Enter in column (A) the cumulative
total of funds the State transferred to the Social Services Block
Grant (SSBG) program from October 1 of the Federal fiscal year for
which the report is being submitted through the current quarter
being reported. Section 404(d)(2) of the Act governs the transfer of
TANF funds to the SSBG program; it limits the amount that a State
may transfer to no more than 10% of its total annual TANF grant to
SSBG. (Also, the combined amount transferred to SSBG and the
Discretionary Fund may not exceed 30% of the annual TANF grant. In
other words, for all financial reports applicable to grant funds for
one fiscal year, the sum of the total cumulative amount reported on
line 3 and the total cumulative amount reported on line 2 cannot
exceed 30% of the annual TANF grant.) All funds transferred to the
SSBG program are subject to the statute and regulations of the
recipient SSBG program in place for the current fiscal year at the
time when the transfer occurs. A State may transfer current-year
Federal TANF funds only. The State may not transfer prior-year
unobligated balances to SSBG.
Note: Beginning in FY 2001 the maximum amount of SFAG funds a
State may transfer to the SSBG program is 4.25% of its annual TANF
grant.
Also, the total amount transferred to SSBG and CCDBG affects the
amount available for Job Access activities that may be used as the
non-Federal match under that program, See instructions for line 6c1.
Line 4. Adjusted SFAG. Enter in column (A) the cumulative total
of funds available for TANF after subtracting the amounts
transferred to the CCDF program (Discretionary Fund) (line 2(A))
and/or the SSBG program (line 3(A)) from October 1 of the Federal
fiscal year for which the report is being submitted through the
current quarter being reported.
Line 5. Expenditures on Assistance. Blocks are shaded.
Expenditures in this category must be included in Lines 5a through
5d from October 1 of the Federal fiscal year for which the report is
being submitted through the current quarter being reported.
Line 5a. Basic Assistance. Enter in columns (A), (B), (C), and
(D) the cumulative total expenditures for basic assistance from
October 1 of the Federal fiscal year for which the report is being
submitted through the current quarter being reported. Include
benefits not reported on line 5d provided in the form of cash,
payments, vouchers, or other forms designed to meet on going, basic
needs. Include such benefits, even when provided in the form of
payments by a TANF agency, or other agency on its behalf, to
individuals and conditioned on their participation in work
experience or community service (or any other work activity under
section 261.30).
Line 5b. Child Care. Enter in columns (A), (B), (C), and (D) the
cumulative total expenditures for child care that meet the
definition of assistance from October 1 of the Federal fiscal year
for which the report is being submitted through the current quarter
being reported. The amounts reported in this category do not include
funds transferred to the CCDF (Discretionary Fund--reported on the
ACF-696) or SSBG programs. Include child care expenditures for
families that are not employed, but need child care to participate
in other work activities such as job search, community service,
education, or training, or for respite purposes. Do not include
child care provided as a nonrecurrent, short-term benefit (for
example, during applicant job search or to recently employed
families who need child care extended during a temporary period of
unemployment in order to maintain continuity of care). Do not
include expenditures on pre-K activities or other programs designed
to provide early childhood development or educational services
(e.g., following the Head Start model); such activities should be
reported as ``other'' and identified as such in a footnote to that
category in the 4th Quarter Financial Report.
LIne 5c. Other Supportive Services. Enter in columns (A), (B),
(C), and (D) the cumulative total expenditures for transportation
and other supportive services that meet the definition of assistance
from October 1 of the Federal fiscal year for which the report is
being submitted through the current quarter being reported. Include
expenditures for families that are not employed but need supportive
services to participate in other work activities such as job search,
community service, education, or training, or for respite purposes.
Do not include transportation or other supports provided as a
nonrecurrent, short-term benefit (for example, during applicant job
search).
Line 5d. Assistance Authorized Solely Under Prior Law. Enter in
columns (A) and (D) any expenditures of Federal funds on assistance
that are authorized solely under section 404(a)(2) of the Act from
October 1 of the Federal fiscal year for which the report is being
submitted through the current quarter being reported.
These are expenditures that are not otherwise consistent with
the purposes of
[[Page 17918]]
TANF and/or with the prohibitions in section 408. States including
expenditures on this line must include a footnote explaining the
nature of these benefits (e.g., previously authorized juvenile
justice or State foster care payments) and reference the State plan
provision under which they were authorized.
Note: States may not report MOE expenditures in this category;
all State MOE expenditures must be consistent with the purposes of
TANF.
Line 6. Expenditures on Non-Assistance. Blocks are shaded.
Expenditures in this category must be included in Lines 6a through
6l.
Line 6a. Work-Related Activities and Expenses. Enter in columns
(A), (B), (C), and (D) the cumulative total expenditures (sum of
6(a)1 + 6(a)2 + 6(a)3 for each column) for work-related activities
and expenses, as described in the instructions for those 3 lines,
from October 1 of the Federal fiscal year for which the report is
being submitted through the current quarter being reported.
Line 6a1. Work Subsidies. Enter in columns (A), (B), (C), and
(D) the cumulative total expenditures for work subsidies from
October 1 of the Federal fiscal year for which the report is being
submitted through the current quarter being reported. Work subsidies
include payments to employers or third parties to help cover the
costs of employee wages, benefits, supervision, or training. Do not
include expenditures related to payments to participants in
community service and work experience activities that are within the
definition of assistance.
Line 6a2. Education. Enter in columns (A), (B), (C), and (D)
costs related to educational activities from October 1 of the
Federal fiscal year for which the report is being submitted through
the current quarter being reported. These are expenditures on
educational activities that are consistent with the recognized work
activities at Sec. 261.30 or as a supplement to such activities.
Thus, include secondary education (including alternative programs);
adult education, GED, and ESL classes; education directly related to
employment; education provided as vocational educational training;
and post-secondary education. Do not include costs of early
childhood education or after-school or summer enrichment programs
for children in elementary or junior high school; such activities
should be reported as ``other'' and identified as such in a footnote
to that category in the 4th Quarter Financial Report.
Line 6a3. Other Work Activities/Expenses. Enter in columns (A),
(B), (C), and (D) expenditures on other work activities from October
1 of the Federal fiscal year for which the report is being submitted
through the current quarter being reported. These are expenditures
on: (a) work activities that have not been reported as education or
work subsidies (including staff costs related to providing work
experience and community service activities, on-the-job training,
job search and job readiness, job skills training, and training
provided as vocational educational training); (b) related services
(such as employment counseling, coaching, job development,
information and referral, and outreach to business and non profit
community groups); and (c) other work-related expenses (such as
costs for work clothes and equipment). Include such costs when
provided as part of a diversion program or as transitional services
to individuals who ceased to receive assistance due to employment.
Line 6b. Child Care. Enter in columns (A), (B), (C), and (D) the
cumulative total expenditures for child care that does not meet the
definition of assistance from October 1 of the Federal fiscal year
for which the report is being submitted through the current quarter
being reported. Include child care provided to employed families
(related either to their work or related job retention and
advancement activities) and child care provided as a nonrecurrent,
short-term benefit (e.g., during applicant job search or to a
recently employed family during a temporary period of unemployment).
Do not include amounts of funds transferred to the CCDF
(Discretionary Fund--reported on the ACF-696) or SSBG programs.
Also, do not include expenditures on pre-K activities or other
programs designed to provide early childhood development or
educational services (e.g., following the Head Start model); such
activities should be reported as ``other'' and identified as such in
a footnote to that category in the 4th Quarter Financial Report).
Line 6c. Transportation. Enter in columns (A), (B), (C), and (D)
the cumulative total expenditures (sum of 6(d)1 + 6(d)2 for each
column) for transportation activities that do not meet the
definition of assistance from October 1 of the Federal fiscal year
for which the report is being submitted through the current quarter
being reported. Include the value of transportation benefits (such
as allowances, bus tokens, car payments, auto insurance
reimbursement, and van services) provided to employed families
(related either to their work or related job retention and
advancement activities) and provided as a nonrecurrent, short-term
benefit (e.g., during applicant job search).
Line 6c1. Job Access. Enter in Columns (A), (B), (C), and (D)
the cumulative total expenditures for the Department of
Transportation Job Access program from October 1 of the Federal
fiscal year for which the report is being submitted through the
current quarter being reported.
Note: The amount of TANF funds expended on Job Access programs
that may be used as non-Federal matching under the Job Access
program is limited to the difference between 30 percent of TANF
funds (amount reported on line 1(A)) and the total amount
transferred to SSBG and the Discretionary Fund of CCDF (sum of
amounts reported on lines 2(B) and 2(C)).
Line 6c2. Other Transportation. Enter in Columns (A), (B), (C),
and (D) the cumulative total expenditures for other types of
transportation activities that do not meet the definition of
assistance from October 1 of the Federal fiscal year for which the
report is being submitted through the current quarter being
reported.
Line 6d. Individual Development Accounts. Enter in columns (A),
(B), (C), and (D) expenditures on contributions to Individual
Development Accounts and any other expenditures related to the
operation of an IDA program that fall outside the definition of
administrative costs from October 1 of the Federal fiscal year for
which the report is being submitted through the current quarter
being reported.
Line 6e. Refundable Earned Income Tax Credits. Enter in columns
(A), (B), (C), and (D) expenditures on refundable earned income tax
credits paid to families and otherwise consistent with the
requirements of parts 260 and 263 of the TANF regulations from
October 1 of the Federal fiscal year for which the report is being
submitted through the current quarter being reported. Include State
and local tax credits that represent a specific portion of the
Federal Earned Income Credit and expenditures on similar State
programs designed to defray the costs of employment for low-income
families.
Line 6f. Other Refundable Tax Credits. Enter in columns (A),
(B), (C), and (D) expenditures on any other refundable tax credits
provided under State or local law that are consistent with the
purposes of TANF and the requirements of parts 260 and 263 of the
TANF regulations from October 1 of the Federal fiscal year for which
the report is being submitted through the current quarter being
reported.
Line 6g. Diversion Payments. Enter in columns (A), (B), (C), and
(D) any expenditures on nonrecurrent, short-term benefits to
families in the form of cash payments, vouchers, or similar form of
payment to deal with a specific crisis situation or episode of need
and excluded from the definition of assistance on that basis. Do not
include expenditures on support services such as child care or
transportation (including car repairs) or work activities and
expenses (such as applicant job search) provided under a diversion
program; these items should have been reported in prior reporting
categories.
Line 6h. Prevention of Out-of-Wedlock Pregnancies. Enter in
columns (A), (B), (C), and (D) the cumulative total program
expenditures for prevention of out-of-wedlock pregnancies activities
that have not otherwise been reported from October 1 of the Federal
fiscal year for which the report is being submitted through the
current quarter being reported.
Line 6i. Two-Parent Family Formation and Maintenance. Enter in
columns (A), (B), (C), and (D) the cumulative total program
expenditures for two-parent family formation and maintenance
activities that have not otherwise been reported from October 1 of
the Federal fiscal year for which the report is being submitted
through the current quarter being reported.
Line 6j. Administration. Enter in columns (A), (B), (C), and (D)
the cumulative total expenditures for administrative costs (as
defined at Sec. 263.0) from October 1 of the Federal fiscal year for
which the report is being submitted through the current quarter
being reported.
For Federal TANF funds, the 15% administrative cost cap applies
to the amount Available for TANF reported on line 4(A) of this form.
For State expenditures reported in columns (B) and (C), the 15%
administrative cost cap applies to the cumulative amount of Total
Expenditures (i.e., the sum of line 7(B) + 7(C)) reported for these
columns.
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