Farm Bill FY02 $20M ABAWD E&T Allocation Memo
July 15, 2002
Subject: $20 Million ABAWD E&T Allocation for Fiscal
To: Program Directors / All Regions
Attached for immediate release to the 17 affected State agencies are
the fiscal year (FY) 2002 additional Federal grant amounts authorized
under section 4121 of the Farm Security and Rural Investment Act of 2002
(the Farm Bill) for State agencies that ensure the availability of qualifying
education, training, and workfare opportunities for able–bodied
adults without dependents (ABAWDs).
The Farm Bill amended the Food Stamp Act of 1977 to authorize $20 million
in Federal funds each fiscal year to be allocated among State agencies
that make and comply with a commitment, or "pledge," to offer
a qualifying education, training, or workfare opportunity to every non–excepted,
non–waived, and non–exempted ABAWD applicant and recipient
in the last month of the 3–month period of eligibility for ABAWDs
who are not working 20 hours a week, participating in qualifying education
and training activities at least 20 hours a week, or participating in
workfare. In FY 2002, 17 State agencies are operating under the pledge
and are eligible for a share of this $20 million ABAWD allotment.
We calculated each pledge State agency’s portion of the $20 million
using a two–part formula. We allocated $10 million based on the
percentage of each State agency’s filled ABAWD slots in FY 2001
(as reported by them on their FNS–583, E&T Activity Reports)
compared to the total number of filled slots reported by all 17 State
agencies. We allocated the remaining $10 million based on the percentage
of each State Agency’s estimated ABAWD population (using FY 1996
QC survey data adjusted for annual caseload changes) compared to the total
number ABAWDs for all 17 State agencies. We believe this formula offers
the most equitable way to allocate this additional ABAWD funding.
We have not yet established a method for reporting expenditures from
this allocation. However, the funds must be maintained separately from
the Stateagencies’ regular FY 2002 Federal E&T grants. The reason
for this separation is twofold. First, the funds must be used exclusively
to serve ABAWDs. Second, unlike regular "no–year" E&T
grant funds (unspent amounts may be carried over into the next fiscal
year) these ABAWD grants are "1–year" funds—unspent
amounts cannot be carried over into the next fiscal year. Like any other
account, these ABAWD funds are subject to the close–out process.
We are working together with Financial Management, Accounting Division
to develop specific guidance on reporting and close–out procedures.
This guidance will be transmitted by September 30, 2002.
If you have any questions, contact Micheal Atwell at 703–305–2449.
/S/ Arthur Foley
Arthur T. Foley
Program Development Division
Attachment (FY 2002 E&T
Allocations to "Pledge" States)
Financial Management Directors, All Regions
Deputy Administrator, Financial Management
Director Budget Division
Director Accounting Division
Director, Grants Management Division