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Louisiana LIHEAP Service Delivery Guide 59 | P a g e

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CHAPTER 7: SUBGRANTEE FINANCIAL MANAGEMENT/INVOICE PROCEDURES

Use the following guidelines set forth in this chapter for budget preparation, program planning, program management, financial management, and expenditure control. 7.1 LIHEAP Cost Regulations The following statutory and regulatory guidance has been provided by the Department of Health and Human Services as a basis for a State’s definition of administrative and programmatic costs: A. Section 2605(b) (9) of the LIHEAP statute requires grantees to assure that they will follow these requirements:  the State may use for planning and administering the use of funds under this title an amount not to exceed 10 percent of the funds payable to such State under this title for a fiscal year, and  the State will pay from non-Federal sources the remaining costs of planning and administering the program assisted under this title and will not use Federal funds for such remaining cost (except for the costs of the activities described in paragraph (16)); B. The regulations at 45 CFR 96.50(e) state: The Department recognizes that under the block grant programs the States are primarily responsible for interpreting the governing statutory provisions. As a result, various States may reach different interpretations of the same statutory provisions. This circumstance is consistent with the intent of and statutory authority for the block grant programs. In resolving any issue raised by a complaint or a Federal audit the Department will defer to a State's interpretation of its assurances and of the provisions of the block grant statutes unless the interpretation is clearly erroneous. C. The regulations at 45 CFR 96.88(a) state: Any expenditure for governmental functions normally associated with administration in a public assistance program must be included in determining administrative costs subject to the statutory limitation on administrative costs, regardless of whether the expenditure is incurred by the State, a subrecipient, a grantee, or a Contractor of the State. D. The preamble to the block grant program regulations cited in 45 CFR 96.88(a) provided additional guidance (52 Federal Register 37961- 37964, published