ACF
  Administration for Children 
  and Families

U.S. Department of Health and Human Services
Administration on Children, Youth and Families 

1. Log No.   

2. Issuance Date: 

3. Originating Office:  National Center on Child Abuse and Neglect

4. Key Word: Child Abuse and
             Neglect State Grants
5. Obligation and Liquidation of
   Funds

6.

7. 

  PROGRAM INSTRUCTION

TO:            The State Office, Agency or Organization Designated
by the Governor to Apply for a Child Abuse and Neglect State Grant

SUBJECT:        Obligation and Liquidation of Child Abuse and 
Neglect State Grant Funds (Part I Basic State Grant Funds and Part 
II Medical Neglect/Disabled Infant Grant Funds) 

LEGAL AND RELATED 
REFERENCES:     Sections l07(e) and ll4(b) of the Child Abuse 
Prevention and Treatment Act, as amended (42 U.S.C. 5l06(e) and 
5l06(h)(b), respectively); and ACYF PI-83-5, Dated May l0, l983 

PURPOSE:        The purposes of this Program Instruction (PI) are: 
(l) to clarify for grantees the statutory requirement regarding 
obligation of Part I grant funds; and (2) to instruct grantees 
regarding the modification of the liquidation period both for Part 
I and Part II of the Child Abuse and Neglect State Grant Program. 

            This PI supersedes previous advice to the extent that 
previous advice is inconsistent with this instruction.  

BACKGROUND:    Under Section l07(e) of the Child Abuse Prevention and
Treatment Act (CAPTA), if a State fails to obligate funds awarded under
Part I of the Child 
            
            Abuse and Neglect State Grant Program within l8 months 
from the date of the grant award, the Department will reduce the next 
award to the State by an amount equal to the amount of unobligated 
funds, unless the Secretary determines that extraordinary reasons 
prevented the State from obligating the funds.  The authority to 
approve such an extension of time in which to obligate Part I funds 
has been delegated by the Secretary to the Assistant Secretary for 
Children and Families.  Further information on the l8-month obligation 
period is set forth in ACYF-PI-83-5, dated May l0, l983 (attached). 

            Since there is no statutory provision for the obligation
of Part II funds, it has been the practice of the Department not to
set an obligation period for the Part II grant awards.  However, the
Department has required that the grant funds for both Part I and Part
II of the Child Abuse and Neglect State Grant Program be liquidated
within two years from the date of the grant award.  

INSTRUCTION:    The procedures to follow with respect to the obligation
and liquidation of funds for the Child Abuse and Neglect State Grant
Program are set forth below:

            Obligation of Part I and Part II Grant Funds

            Part I Grant Awards:  Pursuant to Section l07(e) of CAPTA, 
States should obligate funds awarded under Part I of the Child Abuse 
and Neglect State Grant Program within l8 months from the date of the 
award.  If a State fails to obligate such funds within the l8-month 
period, an amount equal to the amount of the unobligated funds will be 
subtracted from the subsequent grant award, unless, based on a request 
from the State, the Secretary determines that extraordinary reasons 
prevented the State from obligating the funds. 

            Part II Grant Awards:  Subject to the limitations on 
liquidation (see below), there is no time limit imposed with respect 
to the obligation of Part II funds. 

                
            Liquidation of Part I and Part II Grant Funds

            With the issuance of the FY 1993 grant awards, States 
will have five years from the date of the grant award within which 
to liquidate both Part I and Part II Child Abuse and Neglect State 
Grant funds. Part I and Part II grant funds properly obligated and 
liquidated should be drawn down by September 30 of the fifth year 
of the grant award (i.e., September 30, 1998 for FY 1993 grant 
awards).  We encourage States, however, not to delay in obligating,
liquidating and drawing down these funds.  Although the funds may 
have been properly obligated and liquidated, such funds  lapse on 
September 30 of the fifth year of the award and will not be 
accessible to grantees due to Department of Treasury policy. 

            Beginning with the FY l993 grant awards, negative 
grant awards will be issued for Part I and Part II funds that are 
not liquidated within five years from the date of the grant award.  
Grants issued prior to FY 1993 are subject to the restrictions set 
forth in the grant award for the particular fiscal year. 

EFFECTIVE 
DATE:        Upon Issuance of the FY l993 Child Abuse and Neglect
Grant Awards

INQUIRIES TO:    Regional Administrators
            Regions I - X

                                                 
                        Olivia A. Golden
                        Commissioner
                        Administration on Children, Youth
                        and Families

Attachment