**[Grants Management]{.underline}**

**Q 1**. When does the three-year timeframe for the Tribal ten-percent
share of expenditures begin?

**A 1**. The three-year timeframe for the Tribal ten-percent share of
expenditures begins on the first day of the first quarter in which the
Tribe receives Federal-funding for an approved comprehensive IV-D
program.

**Q 2**. Will Tribes that are currently funded under the authority of
the Interim Rule be allowed to restart the three-year timeframe for the
ten-percent Tribal share when they become funded under the Final Rule?

**A 2**. No. Both the Interim Rule and the Final Rule require Tribes to
pay a ten percent Tribal share of expenditures for the first three years
that they receive Federal funding and twenty percent Tribal share for
every year thereafter.

**Q 3**. May funds from Public Law 93-638 programs, The Indian
Self-Determination and Education Assistance Act, be used to meet the
Tribe's non-Federal share of a IV-D grant?

**A 3**. Yes. Tribes may use Federal grant dollars received under Public
Law 93-638 to meet the Tribe's cost sharing match for Federal and
non-Federal programs. Pursuant to 25 U.S.C. 450(j) -- 1(j),
notwithstanding any other provision of law, a tribal organization may
use funds provided under a self-determination contract to meet matching
or cost participation requirements under other Federal and non-Federal
programs.

**Q 4**. Do §309.35 -- "Procedures for review of application, plan or
plan amendment", §309.40 -- "Basis for disapproval of an application,
plan or plan amendment", §309.45 -- "How may a Tribe request
reconsideration of a disapproval action", and §309.50 -- "Consequences
of a disapproval of an application, plan or plan amendment", apply to
both the application process for start-up funding and for comprehensive
Tribal IV-D program funding?

**A 4**. Yes. The requirements of §309.35, §309.40 and §309.50 apply to
the application process for start-up funding and for Tribal IV-D program
funding. However, pursuant to §309.45(g), disapproval of start-up
funding is not subject to administrative appeal.

**Q 5**. How often does a Tribe have to apply for start-up funding? Must
a Tribe submit a new budget for the second year of start-up funding?

**A 5**. If an application for start-up funding is denied, a Tribe may
reapply at any time. Once a start-up application is approved, the Tribe
must submit a new budget for the second year in which it will receive
start-up funding.

**Q 6**. May a Tribe receive the total allowable start-up funding
(\$500,000) during the first year of start-up funding?

**A 6**. The expectation of the regulation is for Tribes to receive no
more than \$250,000 a year for two years. We believe it is unlikely that
any Tribe will have expenses during the start-up phase that will exceed
\$250,000 per year. However, if a Tribe is able to provide evidence in
its start-up plan and application to justify the need for more than
\$250,000 in the first year it may receive more than \$250,000 in the
first year. This funding is not a flat grant, but is based on need
demonstrated in the application.

**Q 7**. May a Tribe receive more than \$500,000 in start-up funding?

**A 7**. Pursuant to §309.16(c)(2), the Secretary may grant an increase
in the amount of Federal funding for start-up activities above
\$500,000. A tribe must demonstrate specifically the purpose for which
the funds will be used, that use of the funds will result in
satisfaction of the requirements in §309.65 that would otherwise not be
met, and that it has complied with all applicable reporting
requirements.

**Q 8**. Can a Tribe request start-up funding in the second year for
activities that are different from the activities it requested funding
for in the first year?

**A 8**. The Tribe's program development plan must outline the
activities for which the Tribe is requesting funding for the two-year
period. The activities funded in the second year need not be the
activities that were funded during the first year, but new activities
must be in an approved start-up program plan and the timeline associated
with each activity must also be included. A progress report that
describes accomplishments to date must be submitted with the next annual
funding request. Program activities which are different from those
outlined in the initial program development plan must be articulated
with the submission of the progress report. These activities should
build on the first years work.

**Q 9**. If a Tribe does not obligate its start-up funding, may it ask
for a no-cost extension?

**A 9**. Start-up funding can cover a two-year time period. During the
first year of start-up funding, if a Tribe fails to obligate the grant
award, the Tribe must request that the unobligated balance be carried
forward into the second year when it applies for second-year funding.
Tribes must request funding for a second year at least 60 days prior to
the start of the second year budget. For example, if the Tribe receives
a \$250,000 grant award in the first year and the Tribe only obligates
\$200,000, the remaining \$50,000 may be included in the Tribe's request
for second-year funding. If at the end of the second year, a Tribe fails
to obligate and liquidate all of the grant award, pursuant to
§309.16(c)(1) and §309.135(e) a Tribe may request a no-cost extension.
Such request must be made as soon as it is clear that such an extension
will be needed; any request received after the end of the liquidation
period will not be considered.

**Q 10**. If a Tribe, while receiving start-up funding, decides to
decline to further participate in the IV-D program, will the Tribe be
required to pay back any Federal funds?

**A 10**. Any Federal funds that were expended on allowable activities
under the start-up grant need not be repaid. However, any grant funds
that are unobligated and unliquidated as of the day the Tribe withdraws
from the IV-D program will be rescinded from the Tribe and any costs
that have been incurred by the Tribe and have been found to be
unallowable Tribal IV-D program expenditures must be repaid. If the
Tribe submits a report showing unliquidated obligations after the
termination date, OGM will deobligate the unliquidated balance and
return the money to the Department of Treasury. The tribe cannot accrue
any expenditures after the termination date.

**Q 11**. If, during the time that a Tribe is receiving start-up
funding, the Tribe completes its start-up activities prior to the end of
the 12-month grant period, may the Tribe apply for direct funding?

**A 11**. Yes. However, any start-up funds that are unobligated, as of
the day the Tribe receives funding for a comprehensive program, will be
required to be returned to the Federal government.

**Q 12**. Must a Tribe apply for funding at the beginning of the Federal
fiscal year? If not, is annual funding then based upon the date that the
Tribe first received Federal funding?

**A 12**. A Tribe may apply for funding at any time. The first IV-D
start-up grant will run 12 months from the first day of the quarter in
which the application was approved. The second start-up grant funding
period will be the same as the first. Funding will be adjusted to
coincide with the Federal fiscal year when the program evolves from
being a start-up program to being a comprehensive program. For
comprehensive funding, once the grant period is adjusted to coincide
with the Federal fiscal year, the grant will continue to be administered
by Federal fiscal year. Provided the Tribal IV-D program complies with
the regulations, Federal funding to the Tribe will not be interrupted.

**Q 13**. Once a Tribe receives funding for a Tribal IV-D program, can
the plan be disapproved? If so, how will this affect the Federal
funding?

**A 13**. Pursuant to §309.40(a)(1), a currently-funded Tribal IV-D plan
will be disapproved if the Secretary finds that the plan or plan
amendment no longer meets one or more of the requirements set forth in
program regulations or any other applicable Federal regulations,
statutes and implementing instructions. Additionally, pursuant to
§309.35(d), after approval of the original application, all new relevant
changes required by new Federal statute, rules, regulations and
Department interpretation are required to be submitted so that the
Secretary may determine whether the plan continues to meet with Federal
requirements and policies.

Pursuant to §309.45(h), where the Secretary believes an approved Tribal
IV-D plan should be disapproved, he will notify the Tribe of his intent
to disapprove the plan. If the Tribe waives its right to reconsideration
under this section, the Tribe may request a pre-decision hearing within
60 days of the date of the Notice of Intent to Disapprove the plan. The
hearing will utilize the procedures at 45 CFR Part 213.

If a determination is made to disapprove the plan, no further Federal
funding will be available until a new plan is submitted and approved. A
Tribe will not receive any additional Federal funds that have not been
obligated as of the day the plan is disapproved. A Tribe may also be
required to reimburse Federal funds that have been previously expended
and have been found to be used for unallowable Tribal IV-D program
expenditures.

**Q 14**. Are indirect costs included in the grant award for Tribal IV-D
program activities or are they in addition to the grant award for the
Tribal IV-D program?

**A 14**. As indicated in §309.16(a)(3)(iii), a tribe's indirect costs
are included within the Federal funding for start-up costs. Allowable
indirect costs for Tribal IV-D program activities are determined on a
tribe-by tribe basis. If a Tribe uses its approved Department of
Interior, Bureau of Indian Affairs indirect cost rate, the appropriate
corresponding percentage will be included in its grant award. If a Tribe
chooses to estimate indirect costs and submit them as direct costs, the
reasonable estimated amount will be paid as part of the grant award.

We caution Tribes that there is some risk involved in using the
negotiated indirect cost rate agreement. As stated in the preamble to
the final rule (69 FR 16670), the Federal statute at 42 U.S.C. 651
limits the use of Federal IV-D funds to the purposes enumerated in that
section, whether such costs are characterized as "direct" or "indirect"
costs. Tribes will want to be careful with charges to the indirect cost
rate so as not to build up a large audit exception or debt.

**Q 15**. If a Tribe attends a Tribal regulation rollout meeting, can it
receive reimbursement for those expenses?

**A 15**. A Tribe may receive Federal funding to cover the expenses of
attending a Tribal regulation rollout meeting if it is currently
operating a Tribal IV-D program. In addition, if a Tribe applies for
start-up or comprehensive funding, and is approved for Federal funding
within the quarter in which it attends the rollout meeting, the cost of
attending the meeting may be reimbursed. In accordance with §309.35(f),
upon approval of a Tribal plan, funding for otherwise allowable IV-D
costs is available as of the first day of the quarter in which an
approved plan is submitted.

**Q 16**. If a Tribal IV-D program initiates a paternity establishment
program with its Indian Heath Service (IHS) hospital or clinic, can the
Tribal IV-D program include those expenditures in its program budget?

**A 16**. IHS costs that are already Federally-funded can not be paid
for by OCSE. Pursuant to §309.145(b)(1), establishment of paternity
pursuant to Tribal law, code or custom, under §309.100, including
providing an alleged father an opportunity to voluntarily acknowledge
paternity, or providing genetic testing or any other reasonable attempts
to determine the identity of a child's father pursuant to the IV-D plan,
is an allowable Tribal IV-D program expenditure. Allowable Tribal IV-D
activities are eligible for reimbursement.

**Q 17**. Can a Tribe and state that are each providing the other
services offset those expenses rather than actually exchanging money?
For example, a state is providing a service to the Tribe at \$100 per
hour and the Tribe is providing a service to the state at \$100 per hour
and each provides the other 5 hours of services.

**A 17**. Yes. Tribes and states may agree to offset the value of
services being provided to the other. However payment is made, it must
be reported as program income and the Federal government would get its
respective share (34 percent for states and 10 or 20 percent for
Tribes)*.* Even if no money is exchanged, costs and income must be
separately tracked and accounted for by each program*.*

**Q 18**. Can a state provide assistance to a Tribe to meet the Tribal
share of expenditures requirement?

**A 18**. There is no Federal requirement that prohibits a state from
assisting a Tribe with its share of expenditures requirement. We
encourage states and Tribes to work together to ensure both programs are
successful. However, Federal dollars received by the state cannot be
used for the Tribal share of expenditures and a state contribution to a
Tribe is not a state IV-D expenditure.

**Q 19**. If a Tribe provides training or education to other IV-D
agencies, may the costs associated with providing that training or
education be used as an in-kind contribution for the Tribal share of
expenditures, required in accordance with the final rule, after the
Tribe has completed its Tribal IV-D program phase?

**A 19**. No. With the exception of activities that are funded under
Public Law 93-638, the Indian Self-Determination and Education
Assistance Act, activities that are funded by Federal dollars cannot be
used as an in-kind contribution whether or not they are being provided
to another Federally-funded program.

**Q 20**. If a Tribe builds a facility for use by the IV-D program, and
no rent and utilities are charged to the IV-D program, may the IV-D
program use the program's share use of the building at market value as
an in-kind contribution to its non-Federal share? Can they use the value
of program's share of building utilities?

**A 20**. A Tribe may use the market value of the space used by the IV-D
program as an in-kind contribution, provided Federal funds were not used
to build the building. Tribes may use the value of building utilities as
an in-kind contribution to the non-Federal share at any time. For both
building space and utilities, the IV-D program may only be reimbursed
for the IV-D programs share of those expenses. Please see OMB Circular
A-87, Attachment B, Selected Items of Cost, 11. Depreciation and Use
Allowances.

Grant funds can be used for construction and major renovations only if
Congress specifically authorizes such use. Tribes are reminded that the
child support statute does not provide for this use.

**Q 21**. If the Tribe pays for the salary of Tribal judges and court
staff, can the IV-D program use the time that Tribal judges and court
staff spent on child support matters as an in-kind contribution to the
non-Federal share?

**A 21**. If the judges and court staff are being paid by the Tribe, and
no Federal funds are involved, the time that is spent on child support
matters may be used as in-kind contribution.

**Q 22**. If part of a Tribal court Judge's time is paid by the IV-D
program, at what rate can the Judge be paid?

**A 22.** The rate at which a Tribal court Judge is paid for time spent
on child support matters should be comparable to the rate at which other
Tribal judges, or judges in the geographical area, are paid.

**Q 23.** Must the Tribal court Judge document the specific time spent
on child support matters?

**A 23**. Yes. For audit purposes, a Tribal IV-D program that pays
judges from its budget must keep records that indicate the amount of
time that the Tribal Judge spent on child support matter and the rate at
which he/she was paid. Some Tribal IV-D programs pay Tribal court judges
a flat fee for each hearing and then only need to track the number of
cases heard by the Tribal court. Tribes are reminded that costs must be
reasonable and necessary and the flat rate fee is subject to
disallowance if not in accordance with actual time and expense.

**Q 24**. Can the Tribe use, as an in-kind contribution, those expenses
associated with the cost of jailing noncustodial parents for failure to
pay child support?

**A 24**. No. To be used as an in-kind contribution, the activity or
service must be a cost that is allowable under the regulation. The cost
to jail noncustodial parents is not an allowable cost as set forth in
§309.155(d).

**Q 25**. If the Tribe pays the salary of a staff person from another
program, and details him/her to the IV-D program, can his/her salary be
used as an in-kind match for the non-Federal share?

**A 25**. Yes. With the exception of programs that are funded under
Public Law 93-638, the Indian Self-Determination and Education Act,
volunteer services that are not paid for by the IV-D program, or another
program that is funded by Federal dollars, may be used as an in-kind
contribution of the non-Federal share. Volunteer services may be
provided by professional and technical personnel, consultants, and other
skilled and unskilled persons. Each hour of volunteered service may be
counted if the service is an integral and necessary part of an approved
IV-D plan. A volunteer's time may not be used to match more than one
grant. To count the time of a volunteer as part of the tribal share, the
volunteer must be providing a service to and not receiving a service
from the program.

**[Computer Systems and Automation]{.underline}**

**Q 26**. What is the Tribal share for costs associated with the
development of Tribal IV-D automated data processing systems?

**A 26**. Development of automated data processing systems is not an
allowable activity under the Final Rule. OCSE is working with current
grantees on what Tribal IV-D systems may look like. Guidance on
development of Tribal IV-D systems will be issued separately.

**Q 27**. What costs related to planning for automated data processing
systems are allowable under the Final Rule and what is the Tribal share?

**A 27**. Section 309.145(h) allows for planning efforts for the
identification, evaluation and selection of a new or replacement
automated data processing system; operation and maintenance of existing
automated data processing systems and the establishment of
intergovernmental agreements with states and Tribes for use of an
existing automated data processing system.

Planning Phase efforts include those technical and management activities
necessary for initiating and providing guidance for a software project.
For example, a preliminary planning activity is to create a development
plan to give a detailed description of the nature and scope of the
activities to be undertaken and the methods to be used to accomplish the
project, including defining the project life-cycle and the processes,
methods, and tools for software development. The plan should describe
the projected resource requirements for staff, hardware, and other needs
and the resources available or expected to be available to meet the
requirements. The plan must also contain a proposed activity schedule
for the project, a personnel resource statement indicating availability
of qualified and adequate staff, a proposed budget including a
description of estimated expenditures by category and amount, and the
estimated total project cost. The plan should define the project's
deliverables, work breakdown structure, quality goals, and risks, as
well as processes to be employed for monitoring, controlling and
reporting on the project throughout its life.

Activities in this planning phase may also include (in addition to
creating the development plan): performing a Requirements Analysis,
preparing a Functional Requirements Specification, assessing other
systems for transfer, installing hardware and networks for project
planning and management, and preparing and conducting any procurements
in support of securing contract resources to conduct any of the above
activities.

A Tribe will receive Federal funding for these activities at the same
rate as it does for other IV-D program activities.

**Q 28**. What is the difference between an automated data processing
system and office automation?

**A 28**. The regulatory language using these two terms in 45 CFR
309.145(h), does not define them. However, regulations at 45 CFR Part
95.605 "Definitions", though not applicable to Tribal child support, do
provide some guidance and understanding as to a definition of an
*automated data processing system (ADP system)*. Specifically, 45 CFR
95.605 states:

> [Automatic data processing or ADP]{.underline} means data processing
> performed by
>
> a system of electronic or electrical machines so interconnected and
>
> interacting as to minimize the need for human assistance or
> intervention.
>
> \.....
>
> [Data processing]{.underline} means the preparation of source media
> containing
>
> data or basic elements of information and the use of such source media
>
> according to precise rules or procedures to accomplish such operations
>
> as classifying, sorting, calculating, summarizing, recording and
> transmitting.

Essentially, the term *automated data processing system* means the data,
information, business rules, and requirements, built into
process-specific software applications, supported by operating system
software and computer hardware and telecommunications equipment, that
when combined and interfaced will meet an organization's operational
business requirements and goals. A child support enforcement system is
an example of an automated data processing system in the human services
arena, as is, for example, a financial management and accounting system
in a bank's finance department. A copy of Microsoft Windows© is not an
automated data processing system; rather, it is but one component (the
operating system) of a larger, overall ADP system.

Neither the regulations at 45 CFR Part 95, nor the Title IV-D child
support program regulations at 45 CFR 300-310 provide any definition of
*office automation*. The term is an industry-standard nomenclature, and
though *office automation* is similar to an automated data processing
system in that *office automation* contains multiple components, e.g.,
operating system software, hardware, and networking, it is not an ADP
system.

*Office automation* is not specifically designed to meet the
programmatic and business-centric needs of an organization. Rather,
*office automation* is a generic adjunct component that supports the
routine administrative functions in an organization, as well as certain
functions of an automated data processing system. For example, *office
automation* might include the word processing capabilities needed to
enable the child support enforcement system (the actual ADP system) to
produce summons and petitions. *Office automation* might also describe
the creation of certain reports or accounting spreadsheets that serve to
streamline an otherwise wholly manual business function through the use
of *macros* to merge data and text into a usable management productivity
tool. Office automation components can include some or all of the
following:

-   Personal computers and workstations

-   Networking and application servers

-   Telecommunications and network wiring to connect the computers in a
    unified network environment

-   Network Operating Systems (NOS) and workstation and personal
    computer operating system software, such as Microsoft Windows XP© or
    Red Hat Linux©

-   Office productivity software, such as Microsoft Office©, Microsoft
    Project© or WordPerfect©

-   Electronic mail and Internet access services, such as T-1, DSL, or
    56K dial-up (e.g., AOL© and Earthlink©.)

**Q 29**. Can a non-profit association receive direct Federal IV-D
funding to act as a broker for purposes of developing a plan for Tribal
IV-D system?

**A 29**. No. A non-profit association cannot receive direct Federal
funding to act as a broker for a Tribe to plan for a Tribal IV-D system.
Only Federally recognized Tribes or tribal organizations operating IV-D
programs can receive Federal funding for the purpose of developing a
plan for a Tribal IV-D system. However, a non-profit organization may be
eligible to apply for Federal funding under a Special Improvement
Project (SIP) grant for the purpose of planning, designing, and/or
developing systems for Tribal IV-D programs.

**Q 30**. Can one or more Tribal IV-D programs contract with a
non-profit organization to act as a broker on behalf of the Tribes to
develop a plan for Tribal IV-D systems?

**A 30**. Yes. One or more Tribes that are receiving Federal IV-D
funding may enter into a contract with a non-profit association for the
purpose of developing a plan for a Tribal IV-D system. A Tribe that
chooses to enter into such a contract must follow its internal
contracting procedures as well as Federal contracting procedures.  Any
contract for the development of a plan for a Tribal IV-D system must be
a competitive contract pursuant to Federal regulations at 45 CFR Part
92.36 "Procurement." Sole sourcing of a contract to develop a plan for a
Tribal IV-D system is not deemed to meet the explicit regulatory
requirement that procurements supported with Federal grant funding be
conducted in a manner that provides full and open competition.  

**Q 31**. When a Tribe is planning for the development of a Tribal IV-D
system, can a Tribal IV-D program delegate project management, grant
management and other decision-making functions to another Tribe, state
or private organization?

**A 31**. Yes, but the Tribal IV-D agency remains ultimately responsible
for meeting Federal requirements pursuant to §309.60(c), including the
planning, development, design and eventual installation of a Tribal IV-D
system. The Tribal IV-D program must have final review, acceptance and
approval of all decisions that affect planning for a Tribal IV-D system.
The Tribal IV-D program must retain final approval responsibility as it
has the sole fiduciary and fiscal responsibility for all Federal funding
authorized in the systems development project.

However, the organization of a planning project may include another
Tribe, state or private entity, such as an Information Technology agency
within the Tribal government. Planning projects may be operated through
an inter-agency agreement between the IV-D program and a separate
Information Technology agency that can deliver the necessary technical
experience and resources. We encourage Tribal IV-D programs to make use
of all available resources that can be used to help ensure the project's
success.

**Q 32**. Can two or more Tribal IV-D programs enter into a consortium
arrangement for purposes of cost-sharing the planning of a Tribal IV-D
system?

**A 32**. Yes. This can be accomplished through an inter-governmental
agreement that addresses up-front the numerous aspects of such a
matrix-based project organization. Based on past experience with state
IV-D systems, we would strongly encourage one Tribal IV-D program to be
designated with lead responsibility for project organization and
management in order to reduce some of the risks inherent to matrix-based
project organization. Nevertheless, a consortium arrangement would be a
prudent and fiscally sound consideration for Tribes.

**Q 33**. If the Tribe owns the system, can the system be used for other
purposes (i.e., assisting other programs to manage program data) and/or
can the technology be transferred to the development of an automated
system for other programs?

**A 33**. Because the Tribe owns the software, the Tribe is free to give
a copy of the software to any other program to help meet, once modified,
that other program's unique requirements. Should it be subsequently
enhanced to support, for example, the TANF program's operation, then
that part of the development and operation of the system attributable to
TANF would need to be funded through a cost-allocation plan as only part
of the database, maintenance of central hardware and software etc.,
would now be attributable to the Title IV-D program. The same holds true
for future enhancement and operational costs incurred as part of running
a system that supports multiple programs, including Title IV-D. A cost
allocation plan would be needed to appropriately allocate costs in the
shared, underlying technical infrastructure and new development
activity.

**[Miscellaneous]{.underline}**

**Q 34**. Do the Federal Acquisition Regulations (FARs) apply to the
transfer of Federal funds to Tribes from existing national and state
IV-D programs**?**

**A 34**. No. FARs address acquisition issues and are not applicable to
the funding process for Tribal IV-D programs. Funding for Tribal IV-D
programs is not transferred from other existing national and state IV-D
programs but is an independent source of Federal funding. FAR 31.2
contains cost principles that would apply to for-profit contractors
under IV-D funded programs.

If a state allows a Tribal IV-D program to purchase items, under a
contract with the Federal government, and the Federal government
maintains ownership of the items, then FAR would apply.

**Q 35**. Will Tribal IV-D programs have Federal Information Processing
Standard (FIPS) codes?

**A 35**. Yes. FIPS codes are assigned to distinct geographical areas of
the United States by the United States Geographical Survey. OCSE has
identified FIPS codes for over 560 Federally recognized Indian Tribe and
Alaskan Villages and is currently working to provide this list to Tribal
and state IV-D programs, as well as integrating Tribal FIPS codes with
existing OCSE web-sites.