1. It is hereby acknowledged that as of June 30, 2003, there existed with the federal government an unexpended balance of $28,256,886 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 2004 spending levels, appropriations in this act, and the provisions of paragraphs 2 and 3, below, the Commonwealth's accumulated balance for authorized federal TANF block grant funds is estimated at $9,664,170 $13,467,889 on June 30, 2004; $2,726,870 $0 on June 30, 2005; and $30,500 $67,095 on June 30, 2006.

2. Out of this appropriation, $1,500,000 the first year from the federal Temporary Assistance for Needy Families (TANF) block grant and $1,500,000 the second year from the TANF block grant shall be provided to develop a competitive grant program for use in the provision of services to engage present and former TANF recipients in activities to achieve and maintain self-sufficiency. The grants shall comply with federal TANF laws and regulations. The grant program shall use criteria that will ensure grants are awarded statewide and to organizations that have a proven record of effectively delivering services and leveraging private and public sector dollars to carry out activities. The grant funds shall be awarded through a competitive process for programs and shall be administered by the Department of Social Services.

3. DSS shall report annually on September 15 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 § 63.2-619, Code of Virginia.