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EAP Policy Manual FFY24 Chapter 13 Program Fiscal Management Page 5 Contractual Allocations The NFA grants authority to obligate funds in two categories: administration and Assurance 16. Allocation Determination Commerce establishes allocations for each funding category using a predetermined process. Commerce determines an amount to be allocated to local Service Providers for administrative expenses. This amount is typically around 8% of the State's federal allocation, but may vary depending on total fund availability. The amount made available for administrative expenses cannot exceed 10% of the total annual federal award, including administrative expenses retained for Commerce. EAP typically assigns up to 5% of the federal LIHEAP allocation to Service Providers for Assurance 16 activities. These funds are divided proportionately to Service Providers using the same formula used for administration. These allocations are divided proportionally to Service Providers based on the number of households in the two previous program years served with Primary Heat, Crisis, and ERR. The allocation formula accounts for the number of households denied due to being over income, providing insufficient information, or lack of program funds. Commerce may make additional funds available for specific activities, depending on need. Restriction on Use of Other Federal Funds for EAP Administrative Costs The LIHEAP statute requires that no more than ten percent (10%) of the LIHEAP award be earmarked for administrative costs, inclusive of funds from other federal programs (section 2605(b)(9) of the Low-Income Home Energy Assistance Act (42 U.S.C. § 8624 (b)(9))). In order to comply with this requirement, a Service Provider must not supplement their LIHEAP administrative funds with other federal funds, such as CSBG funds, unless these supplemental funds are utilized for administering Assurance 16 activities, as allowed by U.S. HHS Information Memorandum (IM) LIHEAP IM-2000-12. Any costs in excess of the EAP admin allocation must be paid from non-federal funds. Service Provider’s independent fiscal audits must evaluate adherence with this requirement. Service Providers must also report on the use of other, non- LIHEAP, federal funds for administration of LIHEAP as part of the annual grant closeout process in the Expenditure Detail Report (Appendix 12B) (Column C, “Other Federal Funds”). Energy Assistance Program Use of the NFA EAP uses the NFA to: • Provide program funding for line items paid through Service Provider fiscal processes. • Change Service Provider program funding as a result of a change in statewide funding.