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4.1.1 TAX REPORTING The Grantee is required to issue a 1099-Misc Form to each provider or vendor who receives $600 or more in MEAP funds, see ‘Specific Instructions’: State of Michigan’s guide for 1099 Reporting; IRS Instructions for the 1099-MISC 4.2 DIRECT SERVICES/COVERED SERVICES When a household’s electric or primary heat service for their current residence is in past due status, in threat of shut off, or is already shut off and must be restored, payment may be authorized to the home energy supplier. Payment may be made on a prepayment account for natural gas or electric services when the balance remaining in the account does not exceed $100. Deposits, special trip charges, pilot relights, pressure checks, reconnect fees, and related charges such as propane storage tank installation, delivery, or rental can be paid if they are required by an unregulated home energy supplier to prevent an emergency. Note: Payment to some regulated suppliers for reconnect fees may be authorized; please inquire with the Grant Administrator if this occurs. Deposits as a condition of providing new service, service to a previous customer or continuing service to a current customer, cannot be required by a regulated home energy supplier if the Department of Health and Human Services or MEAP is responsible for making payments to the supplier for the applicant/customer. * MEAP Assurance 16 Program Costs can cover expenses directly related to the delivery of energy assistance self-sufficiency activities offered by MEAP. Self-sufficiency activities must include services that encourage and enable households to reduce their home energy needs and thereby the need for energy assistance. Assurance 16 activities include needs assessment and referrals, energy education and financial counseling, and vendor advocacy which may include enrollment in an affordable payment plan, and short and/or long-term case management. *See the MPSC website for regulated and unregulated electric and natural gas utilities. 4.2.1 ASSURANCE 16 SERVICES MEAP Grantees should administer programs that create opportunities for low-income customers to work toward energy security/self-sufficiency. Assurance 16 services should be included as separate items within either the EAP Contractual or EAP Personnel section of the budget. Energy security services include activities that contribute towards reducing household energy need and enabling energy security See Section 4.2 Direct Services/Covered Services. Energy security/self-sufficiency expenditure includes services that encourage and enable households to reduce their home energy needs and thereby the need for energy assistance. Services include needs assessment, energy and financial counseling, assistance with energy providers – working with a provider on behalf of a household to enroll in an affordable payment plan, negotiating arrearage forgiveness, or establishing a payment plan.