Cost allocation methodology applicable to the temporary assistance for needy families program. Final rule

Area of Science:

• Public Administration
• Social Policy
• Government Regulations

Background:

• The Temporary Assistance for Needy Families (TANF) program is a key federal program providing assistance to families.
• Federal regulations govern the allocation of funds to ensure accountability and proper use.
• The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 introduced significant changes to welfare policy, including provisions for Tribal TANF programs.

Purpose of the Study:

• To mandate the use of the "benefiting program" cost allocation methodology for the TANF program.
• To clarify the appropriate methodology for the use of Federal TANF funds by States, the District of Columbia, and Territories.
• To affirm the established cost allocation practices for federally-recognized Tribes operating Tribal TANF programs.

Main Methods:

• This document is a final rule, indicating a formal regulatory action.
• It references U.S. Office of Management and Budget (OMB) Circular A-87 (2 CFR part 225) for the cost allocation methodology.
• It cites relevant regulatory provisions at 45 CFR 286.45(c) and (d).

Main Results:

• States, the District of Columbia, and Territories are required to implement the "benefiting program" cost allocation methodology.
• This methodology is deemed appropriate by HHS/ACF for the proper use of Federal TANF funds.
• Federally-recognized Tribes operating Tribal TANF programs have historically adhered to this methodology.

Conclusions:

• The final rule confirms the mandatory use of the "benefiting program" cost allocation method for TANF administration.
• This ensures consistency and compliance in the financial management of federal welfare funds.
• No substantive changes were made from the proposed rule, indicating established consensus on the methodology.