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Tennessee Housing Development Agency 2025 LIHEAP Policy Manual for Regular and Crisis Assistance 53

Note: The individual signing in Block 6 of the Authorized Signature Form cannot be the same person as the individual listed in Block 5 (the person authorized to sign payment requests). In other words, an executive or official cannot certify their own signature.

7.5 Expenditure Caps and Minimums The following expenditure caps and minimums apply to the LIHEAP funds: • Administrative Costs: 9% maximum of the total awarded allocation • Direct Program Support: 10% maximum of the total awarded allocation • Crisis to Individuals: 10% minimum of the total awarded allocation, more is encouraged • Energy Conservation: 2% maximum of the total allocation • Outreach: 2% maximum of the total allocation Administrative costs must comply with guidance provided in the appropriate OMB circular(s) and other program-specific guidance and must adhere to the subgrantee's submitted and approved annual budget. Subgrantees should define their administrative costs in accordance with generally accepted accounting principles and procedures. Indirect costs can be considered part of Grantee Administration and are allowable if the indirect rate or amount is approved by the cognizant agency for the subgrantee. Your Indirect Cost Rate verification form should be updated yearly and submitted to THDA. Subgrantees may spend more than 10% on Crisis Benefits, which is encouraged, as long as it aligns with the needs of the community. Agencies should assess the crisis needs each year and adjust accordingly to ensure crisis funds are available through March 15 of each year. Agencies should not deny a client based on exceeding the 10% Crisis Benefit cap. Instead agencies must amend their budget to cover the cost of any amounts over 10%, if regular funding is available.

7.6 Allowable Administrative Expenditures Administrative costs refer to the necessary expenses required for the proper administration of the LIHEAP program. These costs are capped at 9% of the total amount drawn down by the subgrantee. Examples of allowable administrative charges include: • Salaries for staff not directly providing services (e.g., Executive Director)