Page 12

DEO LIHEAP Policies and Procedures Manual Page 12

Part 400 -- Program Administration and Requirements .01 General Requirements A. All subrecipients, by signing the annual LIHEAP Agreement with DEO, agree to provide services in compliance with the rules and regulations stated within the Agreement. B. Under federal law, the state may use a maximum of 10 percent of LIHEAP funds for administrative costs. The state reserves one-point-five percent (1.5%) for administration and subrecipients may use up to eight-point five percent of their total allocation for administration. Subrecipients are allowed an additional percentage in outreach funds to pay for staff salaries, upkeep of outreach offices, travel, and supplies for client intake. C. Administrative and outreach funds should not be spent at a faster rate than Direct Client Assistance funds. During an on-site review or during the closeout desk review, any subrecipients that return funds, especially Direct Client Assistance funds, without proportional amounts of administration and outreach funds will be cited with a Finding in the current or future monitoring report.

D. No other federal program funds may be used to support LIHEAP Administration.

E. DEO staff are responsible for the overall administration of the program, including: developing program policies, rules and procedures, coordinating the program's operation, monitoring, and providing training and technical assistance.

F. Each subrecipient is responsible for providing staff to administer LIHEAP in their designated Local Service Area for potential applicants. .02 Expenditure Rate Each subrecipient is expected to expend at least 85% of its total LIHEAP allocation each grant year. DEO retains the administrative authority to alter a subrecipient’s LIHEAP allocation during or after any grant year where the expenditure rate falls below 85%. Administrative and Outreach funds should not be spent at a faster rate than Direct Client Assistance funds. DEO also retains the administrative authority to provide an additional base increase (pending available funding) to a subrecipient which expends 100% of its total LIHEAP allocation for any two consecutive grant years.