---
kind: "section"
citation: "45 C.F.R. § 264.73"
title: "45"
number: "264.73"
heading: "What is an annual reconciliation?"
url: "https://uscodex.org/cfr/45/264.73"
---

# §264.73. What is an annual reconciliation?

- (a) **The annual reconciliation involves the calculation, for a fiscal year, of—**
  - (1) The amount of a State's qualifying expenditures;
  - (2) The amount by which a State's countable State expenditures, as defined in [§ 264.0](/cfr/45/264.0.md), exceed the State's required Contingency Fund MOE level; and
  - (3) The amount of contingency funds that the State may retain or must remit.
- (b) If a State exceeded its required Contingency Fund MOE level, it may be able to retain some or all of the contingency funds that it received.
- (c) A State determines the amount of contingency funds that it may retain by performing the following calculations:
  - (1) **From the lesser of the following two amounts—**
    - (i) The amount of contingency funds paid to it during the fiscal year; or
    - (ii) Its countable State expenditures, as defined in [§ 264.0](/cfr/45/264.0.md), minus its required Contingency Fund MOE level, multiplied by:
      - (A) The State's Federal Medical Assistance Percentage (FMAP) applicable for the fiscal year for which funds were awarded; and
      - (B) 1/12 times the number of months during the fiscal year for which the State received contingency funds.
  - (2) Subtract the State's proportionate remittance (as reported to the State by ACF) for the overall adjustment of the Contingency Fund for that fiscal year required by [section 403(b)(6)(C)](/cfr/45/403.md?p=b-6-C) of the Act.

## Notes

### Authority

Authority: 31 U.S.C. 7501 et seq.; 42 U.S.C. 608, 609, 654, 1302, 1308, and 1337.

### Source

Source: 64 FR 17896, Apr. 12, 1999, unless otherwise noted.