local agency will be used only for the purpose intended. There must be provision for financial arrangement to reimburse courts and law enforcement officials when it is found necessary for them to undertake services beyond those usually provided in such cases.

(d) There must be cooperation with other State welfare agencies administering AFDC in locating parents of an AFDC child against whom a support petition has been filed in another State and in attempting to secure compliance by a parent now residing in the agency's own State.

(e) Clearance procedures established with the Internal Revenue Service will be used in respect to any parents of AFDC children whose location is unknown and who are failing to comply with existing court orders for support payments or against whom petitions for orders have been filed. (See separate issuance related to these procedures.)

§ 220.49 Other plan requirements for child welfare services under title IVB (see also Subpart D of this part). (a) Single State agency. (1) (i) The State plan shall designate a State agency as the single agency for the administration of the plan or for supervision of the administration of part of the plan by local agencies.

(ii) Effective July 1, 1969, the State plan must provide that the State agency responsible for the State plan approved under title IV-A will also administer or supervise the administration of the plan under title IV-B, except that

(a) if on January 2, 1968 the State agency administering the plan under title IV-B is different from the State agency responsible for the State plan approved under title IV-A, the requirement in this subdivision (11) shall not apply so long as such agencies are different;

(b) if on January 2, 1968 the local agency administering the plan approved under title IV-B is different from the local agency administering the plan approved under title IV-A, the requirement in this subdivision (ii) shall not apply with respect to such local agencies so long as such agencies are different.

(2) The State plan shall set forth the authority of the State agency under State law for the administration of the program. Where there is administration

by local agencies, the plan shall set forth the legal basis for such administration or for the supervision of such administration by the State agency. Citations to all directly pertinent laws and copies of all interpretations of such laws by appropriate State officials, and citations to all directly pertinent interpretations of laws by courts, shall be furnished as part of the plan.

(b) Organization for administration. The State plan shall describe the organization of the State agency for the administration of the plan and of any local agencies engaged in such administration. It shall also describe the methods of administration utilized by the State agency in the administration of the plan and by any local agencies engaged in such administration. Where there is administration by local agencies, the State plan shall describe the nature and extent of the supervision exercised by the State agency.

(c) Personnel standards. There shall be, with respect to the employees of the State agency and those of local agencies, personnel administration on a merit basis which shall be in accordance with current Federal Standards for a Merit System of Personnel Administration in 45 CFR Part 70. The State plan shall contain necessary materials relating to personnel administration to permit evaluation for compliance with the said Standards for a Merit System of Personnel Administration.

(d) Coordination with services under AFDC. There shall be coordination between child welfare services and services in AFDC with a view to provision of welfare and related services which will best promote the welfare of such children and their families.

(e) Reports. The State plan shall provide that the State agency will make such reports with respect to any and all phases of the State program of child welfare services in such form and containing such information as the Bureau may find necessary to assure the correctness and verification of such reports. [34 F.R. 1354, Jan. 28, 1969, as amended at 35 F.R. 315, Jan. 8, 1970]

Subpart B-Optional Provisions § 220.50

General.

If a State elects under title IV-A to provide services for additional groups

of families and children, i.e., current applicants or former or potential applicants and recipients of public assistance, the State plan:

(a) Must identify such group or groups and specify the services to be made available to such group;

(b) Contain provisions committing the State to meet the requirements in this subpart;

(c) Indicate the steps to be taken to meet those requirements; and

(d) Provide for the submission of such implementation and progress reports as may be specified.

SERVICES IN AID TO FAMILIES WITH
DEPENDENT CHILDREN

§ 220.51 Range of optional services.

(a) The Social Security Act (sec. 406(d)) defines the full range of family services in AFDC as follows:

services to a family or any member thereof for the purpose of preserving, rehabilitating, reuniting, or strengthening the family, and such other services as will assist members of a family to attain or retain capability for the maximum self-support and personal independence."

(b) The full range of or selected family services, and child welfare services as defined in this subpart, may be included except for those services excluded in § 220.61.

(c) Following are types of selected services:

(1) Child care services. Child care services provided to families other than those required in § 220.15, must meet the standards required in that section.

(2) Emergency assistance-services. Emergency assistance in the form of services to needy families with children, including migrants, may be provided. Such services must be planned and staffed, so as to assure immediate accessibility and prompt response, and separate policy instructions relating to emergency assistance must apply. (These separate policies do not apply to use of title IV-B funds.)

(3) Educational and training services. Educational and training services may be included where the Work Incentive Program has not been initiated in a local jurisdiction or is inadequate in scope or size to meet the needs of recipients; or where the Work Incentive Program has been initiated and there is an agreement with representatives of the Labor Department that these services are not available

to recipients. Full use must be made of services available through the Employment Service.

(4) Legal services. Legal services, in addition to those required in § 220.25, may be included for families desiring the help of lawyers with their legal problems (see separate policies governing the provision of such services).

§ 220.52 Coverage of optional groups for services.

(a) The agency may elect to provide services to all or to reasonably classified subgroups of the following:

(1) Families and children who are current applicants for financial assist

ance.

(2) Families and children who are former applicants or recipients of financial assistance.

(3) Families and children who are likely to become applicants for or recipients of financial assistance, i.e., those who:

(i) Are eligible for medical assistance, as medically needy persons, under the State's title XIX plan.

(ii) Would be eligible for financial assistance if the earnings exemption granted to recipients applied to them.

(iii) Are likely, within 5 years, to become recipients of financial assistance.

(iv) Are at or near dependency level, including those in low-income neighborhoods and among other groups that might otherwise include more AFDC cases, where services are provided on a group basis.

(4) All other families and children for information and referral service only.

(b) All families and children in the above groups, or a selected reasonable classification of families and children with common problems or common service needs, may be included.

$ 220.55

CHILD WELFARE SERVICES

Range of optional services and groups to be served.

(a) The Social Security Act (sec. 425) defines the full range of child welfare services as follows: “* * public social services which supplement, or substitute for, (1) parental care and supervision for the purpose of preventing or remedying, or assisting in the solution of problems which may result in the neglect, abuse, exploitation, or delinquency of children, (2) protecting and caring for homeless, dependent, or neglected children, (3) protecting and

promoting the welfare of children of working mothers, and (4) otherwise protecting and promoting the welfare of children, including the strengthening of their own homes where possible or, where needed, the provision of adequate care of children away from their homes in foster family homes or day care or other child care facilities."

§ 220.56 Day care services.

(a) If day care services are included under title IV-B, they must meet the standards required in § 220.18(c) (2), and in addition, the State plan must indicate compliance with the following:

(1) Cooperative arrangements with State health and education agencies to assure maximum utilization of such agencies in the provision of health and education services for children in day

care.

(2) An advisory committee on day care services as set forth in § 220.4(b).

(3) A reasonable and objective method for determining the priorities of need, as a basis for giving priority, in determining the existence of need for day care, to members of low-income or other groups in the population and to geographical areas which have the greatest relative need for the extension of day care.

(4) Specific criteria for determining the need of each child for care and protection through day care services.

(5) Determination that day care is in the best interests of the child and the family.

(6) Provision for determining, on an objective basis, the ability of families to pay for part or all of the cost of day care and for payment of reasonable fees by families able to pay.

(7) Provision for the development and implementation of arrangements for the more effective involvement of the parent or parents in the appropriate care of the child and the improvement of his health and development.

(8) Provision of day care only in facilities (including private homes) which are licensed by the State or approved as meeting the standards for such licensing. Subpart C-Federal Financial Participation

grams because these programs have different legal provisions governing the extent of Federal funding. However, in general there are no differences in the kinds of services or methods of providing services under these two programs.

§ 220.61 Federal financial participation; AFDC.

(a) General. Federal financial participation is available in expenditures, as found necessary by the Secretary

(1) For the proper and efficient administration of the plan;

(2) For the costs of providing the services for the groups of families and children;

(3) For carrying out the activities described in subparts A and B of these regulations that are included in the approved State plan. Such participation will be at the rates prescribed in this subpart.

(b) Persons eligible for service. Federal financial participation is available under this section only for services provided to:

(1) A child or relative who is receiving aid under the plan and to any essential person living in the same household as such relative and child.

(2) The groups defined in § 220.52: current applicants for aid, former and potential applicants or recipients and other individuals requesting information and referral service only. In respect to any child or relative who has formerly been an applicant for or recipient of aid, counseling and casework services may be provided. Other services may be provided only to those children or relatives who have received aid within the previous 2 years or who qualify under the definition of potential applicants or recipients.

(c) Sources for furnishing services. Federal financial participation is available under this section for services furnished:

(1) By State or local agency staff, i.e., full- or part-time employed staff; and volunteers, or

(2) By purchase, contract, or other cooperative arrangements with public or private agencies or individuals, provided that such services are not available without cost from such sources.

(d) Provisions governing costs of certain services. (1) Medical and assistance costs. Federal financial participation under this section will not be available in expenditures for subsistence and other assistance items or for medical or remedial care or services, except

(i) For subsistence and medical care when they are provided as essential components of a comprehensive service program of a facility and their costs are not separately identifiable, such as, in a rehabilitation center, a day care facility or a maternity home;

(ii) For medical and remedial care and services as part of family planning services;

(iii) For required medical examinations for persons caring for children under agency auspices, when not otherwise available or not included in purchase arrangements;

(iv) For identifying medical problems of children in child care facilities; or

(v) For medical diagnosis and consultation when necessary to carry out service responsibilities, e.g., for recipients under consideration for referral to training and employment programs.

(2) Vocational rehabilitation services. Federal financial participation is not available in the costs of providing services for the disabled as defined in the Vocational Rehabilitation Act except pursuant to an agreement with the State agency administering the vocational rehabilitation program. This applies to provision of services by staff of the agency and purchase.

(3) Federal financial participation is available in the costs of the following:

(i) Staff in providing services related to foster care, i.e., recruitment, study, and approval of foster family homes, services to children in foster care and their parents, and work with foster parents and staff of child-caring institutions. Vendor payments for foster care are assistance payments and are, therefore, not subject to the service rate of Federal financial participation.

(ii) Work related to child care resources to be used by the agency, i.e., the costs of staff engaged in the development, recruitment, study, approval, and subsequent evaluation of out-of-home child care resources, except the costs of staff primarily engaged in the issuance of licenses or in the enforcement of standards; study, approval, and subsequent evaluation of in-home care arrangements; and in the provision of technical assistance to improve the quality of child

care.

(iii) Services provided in behalf of families and children, e.g., community planning, assuring accessibility to entitled service resources; and studies of service needs and results.

(iv) Certain services to assist individuals to achieve employment and selfsufficiency:

(a) Payments for additional expenses of individuals that are attributable to their participation in training or work experience projects, e.g., transportation, lunches, uniforms. (Not applicable to assistance recipients earning wages, including employment or on-the-job training, or on special work projects under Work Incentive Program, since such expenses will be deducted in determining net income.)

(b) Medical examinations that are necessary to determine physical and mental health conditions for training or employment.

(c) Education and training as provided in § 220.51 (c) (3).

(v) Agency staff engaged in locating and planning with deserting or putative fathers; assessing potentials and determining appropriate actions; developing voluntary support; assisting relatives to file petitions for the establishment of paternity; reuniting families; and cooperative planning with appropriate courts and law enforcement officials.

(e) Kinds of expenses for which Federal financial participation is available. (1) Salary and travel costs of service workers and their supervisors giving fulltime to services and for staff entirely engaged (either at State or local level) in developing, planning, and evaluating services. Where a full-time service worker also carries services under the adult categories, the portion applicable to AFDC (IV-A) is at AFDC rates.

(2) Salary costs of service-related staff such as, supervisors, clerks, secretaries, and stenographers, which represent that portion of the time spent in supporting full-time service staff.

(3) Related expenses of staff performing service or service-related work under subparagraph (1) or (2) of this paragraph (e) in proportion to their time spent on services, such as communications, equipment, supplies and office space.

(4) Definitions: Applicable to staff performing service functions.

(i) Full-time service work. (a) Persons performing full time on functions related to the provisions of service means persons assigned on a full-time basis to such functions (services under the adult categories may also be carried).

(b) It is not necessary to maintain daily time records for this purpose but

it is expected that States will check periodically to assure that persons assigned on a full-time basis are performing substantially on this basis.

(c) A full-time service worker can be expected to receive questions from recipients (and former or potential) related to eligibility and the amount of payment or medical benefits and to make this information available to staff responsible for eligibility and related functions. Such workers may not carry the responsibility for securing information or taking the actions in respect to determining initial and continuing eligibility for financial or medical assistance or to change the amount of financial assistance being provided.

(ii) Meaning and illustrations of service work. Service work means activity of staff in providing the services and carrying out the related responsibilities specified in subparts A and B. This includes activities of such staff as caseworkers, homemakers, child care personnel, Work Incentive Program coordinators, and community planning staff.

(iii) Meaning and illustrations of service-related work. Service-related work means activity of staff other than service workers which is necessary to administer a service program fully. This includes secretaries, stenographers and clerks serving service staff, supervisors of service workers and their supervisors, staff responsible for developing and evaluating service policies, and staff collecting and summarizing financial and statistical data on services, either at the State or local level.

(iv) Staff. Staff performing service or service related work includes professional, subprofessional (e.g., recipients and other workers of low income), and volunteer staff.

(5) Other expenses related to the provision of service in support of full-time service staff, including a portion of the salary costs of any agency person (except the service worker who must be on a full-time basis) who is working part time on service functions (either at the State or local agency level). Such expenses include the portion of salary costs of supervisors related to supervision of service work, a portion of fiscal costs related to services, a portion of research costs related to services, a portion of salary costs of field staff, etc.

(6) Costs of services purchased.

(7) Travel and related costs for children and parents to obtain consultation, medical, and other services.

(8) Costs of State and local advisory committees including expenses of attending meetings, supportive staff and other technical assistance.

(9) Costs of administrative and supervisory staff attending meetings pertinent to the development or implementation of Federal or State service policies and programs.

(10) Costs of operation of agency facilities, used solely for the provision of services. Costs may include expenditures for staff; space, including minor remodeling, heat, utilities, and cleaning furnishings; program supplies, equipment and materials; food and food preparation; and liability and other insurance protection. Costs of construction and major renovations are not matchable as services. Appropriate distribution of costs is necessary when other agencies use such facilities for the provision of their services, such as in comprehensive neighborhood service centers.

(11) Child care expenditures for WIN participants must be charged as a service expenditure and separately identified since Federal funds for this purpose come from a separate appropriation. Child care expenditures for other AFDC cases may be charged as a service expenditure or included as a financial assistance expenditure subject to matching under the title IV-A formula, depending on how the State plan specifies. Where child care is provided as a service the payment may be made either to the vendor of the service directly or to the recipient for payment by him. In either case documentation is needed in the form of statements of the type and quantity of services rendered for each recipient (receipted by vendor when the service payment is made directly to the recipient) to establish the fact that the expenditure was for services.

(f) Rates of Federal financial participation. (1) (1) Federal financial participation at the rate of 85 percent for the fiscal year ending June 30, 1969, and at the 75 percent rate for subsequent fiscal years is available for the service costs identified in paragraphs (d) and (e) of this section; and at the rate of 75 percent for all expenses related to emergency services, and training and staff development.