Page 46

North Carolina

46 If federal TANF funds are insufficient to cover cash assistance costs in the event of economic downturns, other federal, state, and county funds may be used to meet the costs of assisting needy families.

Counties can retain partial collections made on overpayments to recipients not due to agency error, including child care overpayments.

MAINTENANCE OF EFFORT

Under state law, both the counties and the state provide Maintenance of Effort (MOE) funds. County spending is generally through the county Work First Block Grant. This block grant contains an allocation of Federal funds used for those services that meet the requirements for TANF expenditures. It also contains state and county funds that are used to meet the MOE requirements. Additional state funds for Maintenance of Effort are spent on such items as child care, state administrative costs, and automation.

In general, services provided under the first and second purposes of TANF, using TANF funds, and any of the purposes using Maintenance of Effort funds, may only be provided to families that are financially needed (i.e. with incomes at or below 200% of the federal poverty level). Services provided under the third and fourth purposes of TANF, using Maintenance of Efforts funds, may be provided without regard to income if the expenditures are pro-family. All other services provided for the purposes of using MOE funds are subject to incomes at or below 200% of the federal poverty level. Services may be provided to families or children who are experiencing an emergency as defined in the plan, and who do not have sufficient resources to alleviate the emergency.

MOE funds may be used for the activities listed below:

• Work First cash assistance. • Child care. • Supportive and preventive services, including, but not limited to: child and family enrichment services, work-related expenses, and transportation. • Educational activities intended to increase self-sufficiency, job training, and work, excluding any expenditure for public education in the state except expenditures that involve the provision of services or assistance to a member of an eligible family that is not generally available to other people. • Administrative costs (which may not exceed 15% of the total funds spent for purposes under Title I of the federal block grant) are defined as costs associated with office directors, policy, fiscal, budget, personnel, purchasing, legal, clerical support, and direct, indirect, and allocated costs in support of these positions. Program supervisors, program clerical staff, and support costs of program staff are services costs rather than administrative costs. The staff time spent solely on determining financial eligibility, including evaluating assets, is counted as administrative. • Case management staff and services, including outreach and follow-up activities. • Services such as housing assistance or health care assistance that can help families meet their goals for self-sufficiency. • Automating the provisions of the law. • Other uses that reasonably can be expected to enable families to care for children in their homes; that promote job preparation, work, and marriage; that