§ 1356.70 - Transfer of funds from title IV-E to title IV-B.

(a)(1) Funds available to the State within the foster care allotment for title IV-E which the State does not need for foster care purposes under title IV-E may be transferred to title IV-B and claimed by the State as reimbursement under that program only if the State has selected an allotment described under paragraph (a) or (b) of § 1356.65.

(2) If the limitation imposed by the allotment calculated under paragraph (a) or (b) of § 1356.65 is in effect, the amount of funds that a State may transfer to and claim under title IV-B is limited by the amount of funds not needed for foster care under title IV-E.

(3) If the limitation imposed by the allotment calculated under paragraph (a) or (b) of § 1356.65 is not in effect, the amount of funds that a State may transfer to and claim under title IV-B is further limited to the total amount of funds which, when added to the funds received under sections 420 and 424 of the Act for that Fiscal Year, would not exceed the State's share of the amounts listed in paragraph (d)(1) of § 1356.65.

(b) If the amount transferred to title IV-B, when added to the IV-B allotment, exceeds the amount which would be allotted to the State under title IV-B if the appropriation for title IV-B equaled $141 million, the State may transfer funds under paragraph (a) of this section only if it has met the requirements of section 427(a) of the Act.

(c) If the appropriation for each of any two consecutive fiscal years under section 420 of the Act equalled $266,000,000, the State may transfer funds under paragraph (a) of this section only if it has met the requirements of section 427(b) of the Act.

(d) If the total reimbursement to the State for expenditures under title IV-B (including transferred funds) equalled the State's share of $266,000,000 for each of two fiscal years in which the limitation under this section did not apply, the State may transfer funds under paragraph (a) of this section in any succeeding year only if it has met the requirements of section 427(b) of the Act.

(e) Amount that may be transferred from title IV-E to title IV-B. (1) The amount of funds that a State may transfer from title IV-E to title IV-B is:

(i) For any year in which the limitation specified under § 1356.65 is in effect, the amount by which the State's title IV-E foster care allotment exceeds the FFP in State expenditures needed for foster care maintenance payments and administrative expenditures, including training expenditures; and

(ii) For any year in which the limitations specified in § 1356.65 is not in effect, the amount determined under paragraph (e)(1)(i), of this section, is further limited to the amount which when added to the amount the State receives under section 420 of the Act (including any reallotted funds) does not exceed the amount of the State's allotment under section 420 of the Act which would have been in effect if the amount described under section 474(b)(2)(A) of the Act had been appropriated.

(2) Transferred funds must be used to reimburse expenditures under title IV-B (as defined under the regulations applicable to that program) for the same fiscal year for which they were originally available.

(i) The State shall apply for approval of transfer of these funds to the Regional ACYF office no later than August 15th, unless the Commissioner shall set a different date for all States because of special circumstances.

(ii) The procedures for application for funds and plans under title IV-B, including joint planning, shall apply to these funds.

(3) A State shall operate its foster care program under its State plan continuously throughout the time the plan is in effect, regardless of whether or not it has transferred funds under this section.