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OCS reiterates 90% pass-through rule and 30-day distribution requirement for CSBG funds
Summary
Presenters reminded states that the CSBG Act requires at least 90% of funding be passed through to eligible entities, that states must distribute allocated funds within 30 calendar days of the federal award, and that administrative use is capped at 5% (or $55,000) under the Act.
Renee Brooks told attendees that Section 7 must present a comprehensive table showing planned allocations to eligible entities and explained several statutory constraints on fund use.
Brooks said the CSBG Act requires states to plan to allocate at least 90% of CSBG funds to eligible entities, that grant recipients may use up to 5% of funds for administrative activities (or up to $55,000), and that any remaining funds may be used for discretionary activities within the Act’s authorized list. She noted that if administrative funds are not used, discretionary uses may be up to 10%.
Brooks also emphasized timelines: allocated funds should reach eligible entities within 30 calendar days following the federal award from OCS, and item 7.4a requires states that cannot meet this deadline to have procedures to ensure funds remain available without interruption. She connected these requirements to State Accountability Measure 2 and to annual-report prepopulation (Module 1 tables E2/E4/E7).
Brooks recommended careful documentation in Section 7 to streamline reporting and to demonstrate transparency and responsible management of CSBG funds.
