CSBG Carry Over 2009

As you may be aware, IHCDA was announced that CSBG funds cannot be carried-over after the 2009 program year. Following is a communication trail with Marci Phillips of NCAF. It appears that there is conflicting language in the legislation compared to the OCS 2009 Terms and Conditions. Marci has referred this on the Anita at CAP-LAW. Maybe we have this ball rolling. It is certainly worth paying close attention as spending patterns at some CAAs may need to change.

Ed Gerardot
Indiana Community Action Association
____________________


They aren’t allowed to prohibit carryover.

Each of the Labor-HHS appropriations bills signed into law in recent memory (including for FY 2008) stipulates the following:

“Provided further, That to the extent Community Services Block Grant funds are distributed as grant funds by a State to an eligible entity as provided under the Act, and have not been expended by such entity, they shall remain with such entity for carryover into the next fiscal year for expenditure by such entity consistent with program purposes:”


This language in the annual appropriations bills supersedes the following in the CSBG statute:

‘‘SEC. 675C. USES OF FUNDS.
‘‘(a) GRANTS TO ELIGIBLE ENTITIES AND OTHER ORGANIZATIONS.—
‘‘(1) IN GENERAL.—Not less than 90 percent of the funds
made available to a State under section 675A or 675B shall
be used by the State to make grants for the purposes described
in section 672 to eligible entities.
‘‘(2) OBLIGATIONAL AUTHORITY.—Funds distributed to
eligible entities through grants made in accordance with paragraph
(1) for a fiscal year shall be available for obligation
during that fiscal year and the succeeding fiscal year, subject
to paragraph (3).
‘‘(3) RECAPTURE AND REDISTRIBUTION OF UNOBLIGATED
FUNDS.—
‘‘(A) AMOUNT.—Beginning on October 1, 2000, a State
may recapture and redistribute funds distributed to an
eligible entity through a grant made under paragraph (1)
that are unobligated at the end of a fiscal year if such
unobligated funds exceed 20 percent of the amount so
distributed to such eligible entity for such fiscal year.
‘‘(B) REDISTRIBUTION.—In redistributing funds recaptured
in accordance with this paragraph, States shall
redistribute such funds to an eligible entity, or require
the original recipient of the funds to redistribute the funds
to a private, nonprofit organization, located within the
community served by the original recipient of the funds,
for activities consistent with the purposes of this subtitle.



However, I just read this in the CSBG FY 2008 Terms and Conditions on the OCS website. The second sentence gives me pause:

14) Grantees shall adhere to a provision of law under the Consolidated Appropriations Act of 2005 which requires that to the extent FY 2008 CSBG funds are distributed by a State to an eligible entity, and have not been expended by such eligible entity, they shall remain with such eligible entity for carryover and expenditure into the next fiscal year. If FY 2008 funds are carried forward by such eligible entity into FY 2009, those funds must be fully expended and services provided on or before September 30, 2009.


I haven’t seen the FY 2009 Terms and Conditions, which is really what applies now, but I still believe that carryover continues to be permitted under the FY 2009 Labor-HHS appropriations statute.


I’m cc’ing this to Anita for a heads-up.



Marci


Marci Phillips
Legislative Policy Analyst
National Community Action Foundation
810 First Street, NE, Suite 530
Washington, DC 20002
(202) 842-2092
marciphillips@ncaf.org
www.ncaf.org
http://ncaf.blogspot.com


From: Ed Gerardot [mailto:egerardo@incap.org] Sent: Thursday, June 12, 2008 3:59 PMTo: Marci PhillipsSubject:

Marci

We are anticipating a situation in Indiana in 2009 related to CSBG carry-over. We anticipate that the Indiana Housing and Community Development Authority will not allow CSBG funds to carry-over after 2009. They are attributing this change to HHS.

Is this possible? Can they make these decisions?


Help will be appreciated.



Ed Gerardot
Indiana Community Action Association

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