1. TANF Appropriate Uses Department of Social Services Office on Volunteerism and Community Service

2. Workshop Objective  Review conditions (eligibility) when using TANF is allowable and appropriate.  Cover allowable uses of TANF that do not require income testing.  Discuss specific items that TANF funds can be used for.  Briefly cover when TANF cannot be used. 2

3. TANF Conditions of Use TANF must be used to provide services to a family that includes a minor child. In this case a minor child can be defined as: Someone less than 18 years old. A pregnant individual. Full time secondary education student less than 19 years old that resides with the family. 3

4. TANF Conditions of Use The income level of the family must be at or below 200% of the poverty level. Any services rendered cannot be considered assistance Usually assistance means cash benefits; verses non- assistance, which usually relates to the provision of services. 4

5. TANF Conditions of Use Non-Assistance TANF is appropriate to use for “Non-Assistance” purposes. Non-Assistance purposes generally include any non- recurrent, short term benefits including but not limited to the following: Payments designed to address a specific crisis Payments that are not intended to meet ongoing needs and will not extend beyond four months. Expenditures that provide placement services, job preparation, or job training services. Work subsidies. 5

6. TANF Conditions of Use Non-Assistance Non-Assistance purposes generally include any non-recurrent, short term benefits including but not limited to the following (cont.) Programs designed to provide case management, counseling, or peer support but do not provide basic income support. Transportation services provided in conjunction with job access programs. Other supportive services. Individual Development Accounts (IDAs); both for matching and for distributions. 6

7. TANF Conditions of Use Non-Assistance Non-Assistance purposes that do not require income testing. Programs that have as their main purpose prevention and/or reduction of the incidence of out-of-wedlock pregnancies. Said programs must establish annual numerical goals for preventing or reducing the incidence of these pregnancies. Programs structured with the purpose of encouraging the formation and maintenance of two-parent families. 7

8. TANF Allowable Uses Expenditures required to provide program services for any program that meets the “conditions of use” and “non-assistance” definitions are generally allowed. Expenditures must be allowed under OMB Uniform Guidance 2CFR 200 (replacing Circular A-122 cost principles). 8

9. TANF Examples of Allowable Uses The following examples relate to programs that comply with the “conditions of use” and payments that are considered “non-assistance”. Under these circumstances TANF funds, in general, can be used in any manner to achieve the purposes of the program. Direct program salaries and fringe benefits Contract services necessary to program success Supplies to operate program 9

10. TANF Examples of Allowable Uses (cont.) Travel required to carry out the program Indirect costs calculated using an Approved Indirect Cost Plan or Cost Allocation Plan. Printing costs attributable to program Any curriculum associated with the program. Space costs, including utility costs, to administer program Allocations of space and utility costs are allowable using documented and defendable methodology compliant with OMB Uniform Guidance 2 CFR.200 10

11. TANF Examples of Allowable Uses (cont.) TANF funds can be used in conjunction with other funds to support programs only to the extent “conditions of use” are met. If 50% of the clients a program serves are TANF eligible (they meet the “conditions of use”) then 50% of the program expenses can be paid using TANF funds. 11

12. TANF Examples of Allowable Uses (cont.) When a program uses no TANF funds but serves, at least in part, TANF eligible clients TANF can be used to pay that program’s share of indirect costs. Indirect charge to TANF must be in the same proportion as the TANF eligible clients. Make sure eligibility of clients is documented. 12

13. TANF Examples of Unallowable Uses Use of TANF funds is not allowable under any restriction outlined in OMB Uniform Guidance 2 CFR.200. These restrictions apply to all federal grant funds. 13

14. TANF Examples of Unallowable Uses (cont.)  Funds may not be used for Juvenile Justice activities  Funds may not be used to provide medical services other than pre-pregnancy family planning services. 14

15. TANF Examples of Unallowable Uses (cont.)  Funds cannot be used for sectarian worship or instruction.  With the exception of programs to address out-of-wedlock pregnancies or to promote two parent homes, no TANF funds can be used to support clients that do not meet the “conditions of use”. 15

16. Thank You Dottie Avalon, CPA (804) 387-0307 dottie.avalon@dss.virginia.gov Virginia Department of Social Services Office on Volunteerism and Community Service 16