1. It is hereby acknowledged that as of June 30, 2001, there existed with the federal government an unexpended balance of $76,372,531 in federal TANF block grant funds which are available to the Commonwealth of Virginia to reimburse expenditures incurred in accordance with the adopted State plan for the TANF program. Based on projected FY 2002 spending levels, appropriations in this act, and the provisions of subsection 2 a below, the Commonwealth’s accumulated balance for authorized federal TANF block grant funds is estimated at $35,009,510 on June 30, 2002; $17,504,755 on June 30, 2003; and $0 on June 30, 2004.

2. The department shall allocate federal funds from the Federal TANF Grant to eligible state and community based services in an amount up to $13,049,800 each year. The department shall develop procedures for receiving and approving requests for funding in accordance with the provisions of the federal TANF grant. The Commissioner shall give preference to activities previously funded through the department. The department shall notify applicants of grant award amounts no later than July 30 of each year.

3. DSS shall report annually to the Governor, the Secretary of Health and Human Resources, the Chairmen of the House Appropriations and Senate Finance Committees, and DPB regarding spending; program results; clients served; the location, size, implementation status, and nature of projects funded with TANF funds; results of all formal evaluations; and recommendations for continuation, expansion, and redesign of the projects. Such report shall be combined with the report required by § 63.1-133.54, Code of Virginia.