Sec.

96.133 Submission to Secretary of Statewide assessment of needs.

96.134 Maintenance of effort regarding State expenditures.

96.135 Restrictions on expenditure of grant. 96.136 Independent peer review.

96.137 Payment schedule.

AUTHORITY: 42 U.S.C. 300w et seq.; 42 U.S.C. 300x et seq.; 42 U.S.C. 300y et seq.; 42 U.S.C. 701 et seq.; 42 U.S.C. 8621 et seq.; 42 U.S.C. 9901 et seq.; 42 U.S.C. 1397 et seq.; 31 U.S.C. 1243 note; unless otherwise noted.

SOURCE: 47 FR 29486, July 6, 1982, unless otherwise noted.

Subpart A-Introduction

§ 96.1 Scope.

This part applies to the following block grant programs:

(a) Community services (Pub. L. 9735, sections 671-682) (42 U.S.C. 99019912).

(b) Preventive health and health services (Pub. L. 97-35, section 901) (42 U.S.C. 300w-300w-8).

(c) Alcohol and drug abuse and mental health services (Pub. L. 97-35, section 901) (42 U.S.C. 300x-300x-9).

(d) Primary care (Pub. L. 97-35, section 901) (42 U.S.C. 300y-300y-10).

(e) Maternal and child health services (Pub. L. 97-35, sections 2191-94) (42 U.S.C. 1305).

(f) Social services (Pub. L. 97-35, sections 2351-55) (42 U.S.C. 1397-1397e).

(g) Low-income home energy assistance (Pub. L. 97-35, sections 2601-11) (42 U.S.C. 8621-8629).

§ 96.2 Definitions.

(a) Secretary means the Secretary of Health and Human Services or his designee.

(b) Department means the Department of Health and Human Services.

(c) Reconciliation Act means the Omnibus Budget Reconciliation Act of 1981 (Pub. L. 97-35).

(d) State includes the fifty states, the District of Columbia, and, as appropriate with respect to each block grant, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands.

[47 FR 29486, July 6, 1982, as amended at 52 FR 37965, Oct. 13, 1987]

§ 96.3 Information collection approval

numbers.

Information collection requirements pertaining to the block grant programs have been approved by the Office of Management and Budget under the provisions of the Paperwork Reduction Act, Pub. L. 96-511 (44 U.S.C. Chapter 35) and have been assigned OMB numbers:

0930-0080 Alcohol and Drug Abuse and Mental Health Services Block Grant Reporting Requirements

0920-0106 Preventive Health and Health Services Block Grant Reporting Requirements

0915-0023 Primary Care Block Grant Reporting Requirements

0915-0024 Maternal and Child Health Services Block Grant Reporting Requirements 0980-0125 Social Services Block Grant Reporting Requirements

0980-0126 Community Services Block Grant Reporting Requirements

0960-0261 Low-Income Home Energy Assistance Block Grant Reporting Requirements. [47 FR 29486, July 6, 1982; 47 FR 43062, Sept. 30, 1982]

Subpart B-General Procedures $96.10 Prerequisites to obtain block grant funds.

(a) No particular form is required for a State's application or the related submission required by statute. The provisions in section 1742(a) of the Reconciliation Act (31 U.S.C. 1243 note) relating to the contents of a report on proposed uses of funds must be satisfied; the specified information should be included in the plan required for the community services block grant (section 675(d) of the Reconciliation Act) (42 U.S.C. 9904(d)) and in the description of intended uses of funds required for the preventive health and health services, and alcohol and drug abuse and mental health services block grants (sections 1905(d) and 1915(d) of the Public Health Service Act (as amended by the Reconciliation Act) respectively (42 U.S.C. 300w-4(d) and 42 U.S.C. 300x-4(d)).

(b) The certifications required by the community services, primary care, preventive health and health services, alcohol and drug abuse and mental

health services, and low-income home energy assistance block grant statutes to be made by the State's chief executive officer must be made by that individual personally, or by an individual authorized to make such certifications on behalf of the chief executive officer. § 96.11 Basis of award to the States.

The Secretary will award the block grant funds allotted to the State in accordance with the apportionment of funds from the Office of Management and Budget. Such awards will reflect amounts reserved for Indian Tribes and Tribal Organizations and, in FY 1982, any amounts awarded by the Department under transition authorities. The grant award constitutes the authority to carry out the program and to draw and expend funds.

[47 FR 29486, July 6, 1982; 47 FR 43062, Sept. 30, 1982]

§ 96.12 Grant payment.

The Secretary will make payments at such times and in such amounts to each State from its awards in advance or by way of reimbursement in accordance with section 203 of the Intergovernmental Cooperation Act (42 U.S.C. 4213) and Treasury Circular No. 1075 (31 CFR Part 205). When matching funds are involved, the Secretary shall take into account the ratio that such payment bears to such State's total expenditures under its awards.

$96.13 Reallotments.

The Secretary will re-allot to eligible States those funds available as of September 1 of each fiscal year under the reallotment provisions pertaining to the alcohol and drug abuse and mental health services, maternal and child health services, and preventive health and health services block grants. The reallotment procedure for the low-income home energy assistance block grant is specified in section 2607 of the Reconciliation Act (42 U.S.C. 8626) and § 96.81 of this part.

$96.14 Time period for obligation and expenditure of grant funds.

(a) Obligations. Amounts unobligated by the State at the end of the fiscal year in which they were first allotted shall remain available for obligation

during the succeeding fiscal year for all block grants except:

(1) Primary care. Amounts are available only if the Secretary determines that the State acted in accordance with section 1926(a)(1) of the Public Health Service Act (42 U.S.C. 300y5(a)(1)) and there is good cause for funds remaining unobligated.

(2) Low-income home energy assistance. Amounts are available only in accordance with 42 U.S.C. 8626(b)(2)(B). From allotments for fiscal year 1982 through fiscal year 1984, a maximum of 25 percent may be held available for the following fiscal year. Beginning with fiscal year 1985, a maximum of 15 percent of the amount payable to a State and not transferred to another block grant according to 42 U.S.C. 8623(f) may be held available for the next fiscal year. No funds may be obligated after the end of the fiscal year following the year for which they were allotted.

(b) Expenditure. No limitations exist on the time for expenditure of block grant funds, except those imposed by statute with respect to the community services, maternal and child health services, and social services block grants.

[47 FR 29486, July 6, 1982; 47 FR 43062, Sept. 30, 1982, as amended at 52 FR 37965, Oct. 13, 1987]

§ 96.15 Waivers.

Applications for waivers that are permitted by statute for the block grants should be submitted to the Assistant Secretary of Health in the case of the preventive health and health services, alcohol and drug abuse and mental health services, and maternal and child health services block grants; to the Director, Office of Community Services in the case of the community services block grant; and to the Assistant Secretary for Human Development Services in the case of the social services block grant. Beginning with fiscal year 1986, the Secretary's authority to waive the provisions of 42 U.S.C. 8624(b) under the low-income home energy assistance program is repealed.

[52 FR 37965, Oct. 13, 1987]

§ 96.16 Applicability of title XVII of the Reconciliation Act (31 U.S.C. 73017305).

This section interprets the applicability of the general provisions governing block grants set forth in title XVII of the Reconciliation Act (31 U.S.C. 7301-7305):

(a) Except as otherwise provided in this section or unless inconsistent with provisions in the individual block grant statutes, 31 U.S.C. 7301-7305 apply to the community services, preventive health and health services, and alcohol and drug abuse and mental health services block grants.

(b) The requirement in 31 U.S.C. 7303(b) relating to public hearings does not apply to any of the block grants governed by this part. Instead, the provisions in the individual block grant statutes apply.

(c) The maternal and child health services block grant is not subject to any requirements of 31 U.S.C. 7301-7305.

(d) The social services and low-income home energy assistance programs are subject only to 31 U.S.C. 7304.

(e) The audit provisions of 31 U.S.C. 7305 have, in most cases, been overridden by the Single Audit Act. Pub. L. 98-502, 31 U.S.C. 75, et seq., and do not apply to the block grants. Pursuant to § 96.31(b)(2), certain entities may, however, elect to conduct audits under the block grant audit provisions. For entities making this election, the provisions of 31 U.S.C. 7305 apply to the community services block grant.

(f) The applicability of 31 U.S.C. 7303(a) relating to the contents of a report on proposed uses of funds is specified in §96.10.

[52 FR 37966, Oct. 13, 1987]

896.17 Annual and biennial reporting deadlines.

Except for the low-income home energy assistance program activity reports, a State must make public and submit to the Department, each annual and biennial report required by statute:

(a) Within six months of the end of the period covered by the report; or

(b) At the time the State submits its application for funding for the Federal fiscal year which begins subsequent to

the expiration of that six-month period.

These reports are required annually for preventive health and health services (42 U.S.C. 300w-5(a)(1)), alcohol and drug abuse and mental health services (42 U.S.C. 300x-5(a)(1)), and maternal and child health services (42 U.S.C. 706(a)(1)), and biennially for the social services block grant (42 U.S.C. 1397e(a)). See §96.82 for requirements governing the submission of activity reports for the low-income home energy assistance program.

[52 FR 37966, Oct. 13, 1987]

Subpart C-Financial
Management

§ 96.30 Fiscal and administrative requirements.

Except where otherwise required by Federal law or regulation, a State shall obligate and expend block grant funds in accordance with the laws and procedures applicable to the obligation and expenditure of its own funds. Fiscal control and accounting procedures must be sufficient to (a) permit preparation of reports required by the statute authorizing the block grant and (b) permit the tracing of funds to a level of expenditure adequate to establish that such funds have not been used in violation of the restrictions and prohibitions of the statute authorizing the block grant.

[47 FR 29486, July 6, 1982, as amended at 52 FR 37966, Oct. 13, 1987; 53 FR 11656, Apr. 8, 1988]

§ 96.31 Audits.

(a) Fiscal periods beginning before January 1, 1985. All block grant funds received in any grantee fiscal year beginning before January 1, 1985, are subject to the audit requirements set forth in each of the respective block grant statutes. Reports on the audit results för all fiscal years subject to this paragraph must be submitted to the Department within one year of the date of publication of this rule.

(b) Fiscal periods beginning on or after January 1, 1985. (1) Each State, local government, and Indian tribe or tribal organization that receives $100,000 or more (during the grantee's fiscal year)

in all types of Federal financial assistance provided through the block grants and all other Federal programs must conduct an audit in accordance with the Single Audit Act, Pub. L. 98-502, 31 U.S.C. 75 et seq. The Office of Management and Budget has implemented the Single Audit Act through publication of OMB Circular A-128, which is set out in full at 45 CFR part 74, appendix J of the Department's Grant Administration Regulations. Grantees must comply with the requirements of 45 CFR part 74, appendix J.

(2) Each State, local government or Indian tribe or tribal organization that receives at least $25,000 and less than $100,000 in total Federal financial assistance from all sources must, at its option, audit block grant funds under either the Single Audit Act or the separate audit requirements set out in each respective block grant statute (or, in the case of the community services block grant, the requirements in 31 U.S.C. 7305). Any audit that is conducted under the block grant audit requirements must be conducted in accordance with standards that are consistent with the Comptroller General's standards for the audit of governmental organizations, programs, activities, and functions. Reports on the results of any such audit must be submitted to the Department by January 1, 1989, if the report is for an audit period that ended prior to January 1, 1988. Reports on the results of any such audit for an audit period that ends on January 1, 1988 or later must be submitted to the Department within one year of the end of the audit period.

(c) Submission of audit reports. Reports of audits conducted under either the Single Audit Act or the block grant statutes shall, if required to be submitted to the Department, be submitted to the Regional Inspector General for Audit responsible for the Federal region in which the block grant recipient is located.

[52 FR 37966, Oct. 13, 1987, as amended at 53 FR 6828, Mar. 3, 1988]

§ 96.32 Financial settlement.

The State must repay to the Department amounts found after audit resolution to have been expended improperly. In the event that repayment is not

made voluntarily, the Department will undertake recovery.

[52 FR 37966, Oct. 13, 1987]

§ 96.33 Referral of cases to the Inspector General.

State or tribal officials who have information indicating the commission or potential commission of fraud or other offenses against the United States involving block grant funds should promptly provide the information to the appropriate Regional Office of Investigations of the Department's Office of the Inspector General.

[52 FR 37966, Oct. 13, 1987]

Subpart D-Direct Funding of Indian Tribes and Tribal Organizations

§ 96.40 Scope.

This subpart applies to the community services, alcohol and drug abuse and mental health services, preventive health and health services, primary care, and low-income home energy assistance block grants.

§ 96.41 General determination.

(a) The Secretary has determined that Indian tribes and tribal organizations would be better served by means of grants provided directly by the Secretary to such tribes and organizations out of the State's allotment of block grant funds than if the State were awarded its entire allotment. Accordingly, where provided for by statute, the Secretary will, upon request of an eligible Indian tribe or tribal organization, reserve a portion of a State's allotment and, upon receipt of the complete application and related submission that meets statutory requirements, grant it directly to the tribe or organization.

(b) An Indian tribe or tribal organization may request direct funding under a block grant program included in this subpart regardless of whether the State in which it is located is receiving funds under the block grant program.

§ 96.42 General procedures and requirements.

(a) An Indian tribe or tribal organization applying for or receiving direct