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March 2006Aging ClusterHHSDEPARTMENT OF HEALTH AND HUMAN SERVICESCFDA 93.044SPECIAL PROGRAMS FOR THE AGING-TITLE III, PART BGRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERSCFDA 93.045SPECIAL PROGRAMS FOR THE AGING-TITLE III, PART CNUTRITION SERVICESCFDA 93.053NUTRITION SERVICES INCENTIVE PROGRAMI.PROGRAM OBJECTIVESGrants for Supportive Services and Senior CentersThe objective of this grant program is to assist States in developing and implementing, through a network of public and private agencies and service providers, comprehensive and coordinated community-based service delivery systems for older Americans, which will assist them in leading independent, meaningful and dignified lives in their own homes and communities as long as possible. The target population for these supportive services, which include in-home services for frail elderly as well as those provided in multi-purpose senior centers, is individuals aged 60 and older with emphasis on those with the greatest social and economic need, particularly low-income minorities; however, proof of age is not required as a condition of receiving services.As the program itself matures, program funding is increasingly being targeted to serve those elderly who, because of their income or age, may not be eligible for Medicaid or Medicare, and recipients are coordinating with other Federal and State programs in ensuring the availability of the broadest range of services for the elderly. As a result, many of the organizations funded under this program and the nutrition services program (see below) also receive funds from other Federal sources as well as from non-Federal sources.Supportive services may include a full range of economic and social services, including access services (transportation, outreach, information and referral, and language translation services), legal assistance and other counseling services, case management services, health screening services, services designed to ensure safe and appropriate housing, pre-retirement planning and assessment of post-retirement needs, ombudsman services, and services to families of elderly victims of Alzheimers disease and related disorders with neurological and organic brain dysfunction. Nutrition services are provided under a separate authorization as described below.Grants for Nutrition ServicesThe objective of this grant program is to provide individuals aged 60 or older with nutrition services, including meals and nutrition education, either in the home or in a congregate setting. This program is clustered with the grants for supportive services and senior centers for purposes of this program supplement since these services, although separately earmarked, fall under the overall State planning process and process for allocation of funds.Nutrition Services Incentive Program The objective of this grant program is to provide resource incentives to encourage and reward effective and efficient performance in the delivery of nutritious meals to older individuals. The Administration on Aging (AoA) is responsible for this program (previously included in the Supplement as the Department of Agricultures (USDA) Nutrition Services Incentive Program (CFDA 10.570) as described in II, “Program Procedures - Administration and Services.” This program is included as part of this cluster because of its direct relationship to the nutrition services program.II.PROGRAM PROCEDURESAdministration and ServicesThe AoA, a component of the Department of Health and Human Services, administers the supportive services and senior centers program and the nutrition services program in cooperation with States, sub-State agencies, and other service providers. The States receive a formula grant from AoA, which is used by the State Unit on Aging (State Agency) both for its planning, administration, and evaluation of these programs as well as to pass through to other entities. Planning and Service Areas (PSAs) are designated by the State Agency in accordance with AoA guidelines after considering the geographical distribution of the service populations, location of available services, available resources, other service area boundaries, location of units of general-purpose local government, and other factors. An Area Agency on Aging (Area Agency) is then designated by the State for each PSA after considering the views of affected local governments (States that had a single statewide planning and service area in place prior to fiscal year (FY) 1981 had the option to continue that method of operation; there are currently eight States in this category). A single Area Agency may serve more than one PSA. The Area Agencies, which may be public or private non-profit agencies or organizations, develop and administer counterpart area aging plans, as approved by the State Agency, and, in turn, provide subgrants to or contract with public or private service providers for the provision of services.With limited exceptions (e.g. ombudsman services, outreach), the State Agency and the Area Agencies are precluded from the direct provision of services, unless providing the services is necessary to ensure an adequate supply of services, the services are related to the agencys administrative functions, or where services of comparable quality can be provided more economically by the agency. Federal funds may pay for only a portion of the costs of administration and services with the State and subrecipients required to provide a matching share from other sources.AoA administers NSIP in cooperation with States, sub-State agencies, and other service providers. Under Section 311(b) (1) and (d) (1) of the OAA, States receive a cash grant from AoA, based on the formula in the OAA. The amount of a States grant is determined by dividing the number of meals served to eligible persons in the State during the preceding Federal fiscal year by the number of such meals served in all States, and applying the resulting ratio to the amount of funds available. Under Section 311(d)(1), a State may choose to receive part of its grant as commodities distributed by the USDA through State Distributing Agencies. The amount a State chooses to receive in commodities is deducted from the States grant from AoA, and AoA reimburses USDA for the commodities. USDA remains responsible for the overall management of the commodities program, including ordering, purchase, and delivery of the requested commodities. (Also see “IV. Other Information.”)State Plan and Area PlansA State plan, approved by AoA, is a prerequisite to funding of the supportive services and nutrition programs; however, the State Plan covers the totality of AoA programs for which the State is the recipient under the Older Americans Act. The State Plan is developed on the basis of input from the Area Agencies as well as input from the affected populations as a result of public hearings. The State Plan addresses how the State intends to comply with the various requirements of the Older Americans Act and, specifically for Title III, its program objectives, designation of Planning and Service Areas (PSAs), and specification of the intrastate allocation formula for distribution of funds to each PSA. The State Plan also contains assurances required by the Act and implementing regulations.Unless a State is not in compliance with Title III requirements, the State Plan may be submitted on a two-, three-, or four-year cycle, at the option of the State, with annual amendments, as appropriate; however, AoA funding is provided annually. States found to be in noncompliance may be required to submit their State Plans annually until they are determined to be in compliance. Area plans are prepared and submitted to the State for approval for either two, three, or four years, with annual adjustments, as necessary.Source of Governing RequirementsThese programs are authorized under Parts B and C, respectively, of Title III of the Older Americans Act, as amended, which is codified at 42 USC 3021-3030. These programs may also be referred to as Part B (supportive services and senior centers) and Part C1(congregate nutrition services) and C2 (home-delivered nutrition services). Grants to Indian tribes for similar purposes are authorized under another title of the Older Americans Act and are not included in this Supplement. Implementing regulations are published at 45 CFR part 1321.The Nutrition Services Incentive Program (NSIP) is authorized in Title III of the Older Americans Act (OAA), which is codified at 42 USC 3030a. The Consolidated Appropriations Resolution, 2003, Pub. L. 108-7, transferred responsibility for the administration of the cash program from USDA to AoA. There are no implementing regulations at this time.Availability of Other Program InformationAdditional information about nutrition and supportive services is available at the AoA web site at http:/www.aoa.gov/prof/aoaprog/aoa_programs.asp and http:/www.aoa.gov/about/legbudg/oaa/legbudg_oaa_faq.asp.III.COMPLIANCE REQUIREMENTSIn developing the audit procedures to test compliance with the requirements for a Federal program, the auditor should first look to Part 2, Matrix of Compliance Requirements, to identify which of the 14 types of compliance requirements described in Part 3 are applicable and then look to Parts 3 and 4 for the details of the requirements.A.Activities Allowed or Unallowed1.State Agencya.State Agencies may use any amount of Title III-B (supportive services) funding necessary to conduct an effective ombudsman program (42 USC 3024 (d)(1)(B).b.Grant funds may be used for State plan administration, including State Plan preparation, evaluation of activities carried out under the Plan, the collection of data and the conduct of analyses related to the need for services, dissemination of information, short-term training, and demonstration projects (42 USC 3028 (a).c.No supportive services, nutrition services, or in-home services may be provided directly by the State Agency unless the State Agency determines that direct provision of services is necessary to ensure an adequate supply of services, where such services are related to the agencys administrative functions, or where such services of comparable quality can be provided more economically by the State Agency (42 USC 3027(a)(8)(A). 2.Area AgencySupportive Services and Senior Centers and Nutrition Servicesa.Funds may be used for plan administration, operation of an advisory council, activities related to advocacy, planning, information sharing, and other activities leading to development or enhancement within the designated service area(s) of comprehensive and coordinated community-based systems of service delivery to older persons (45 CFR section 1321.53).b.If approved by the State Agency, an Area Agency may use service funds for program development and coordination activities (42 USC 3024 (d)(1)(D); 45 CFR section 1321.17(f)(14)(i).c. No supportive services, nutrition services, or in-home services may be provided directly by an Area Agency except if, in the judgment of the State Agency, direct provision of services is necessary to ensure an adequate supply of services, where such services are related to the agencys administrative functions, or where such services of comparable quality can be provided more economically by the agency (42 USC 3027 (a)(10).NSIP - Recipient agencies may use the cash received in lieu of commodities only to purchase U. S. agricultural commodities and other food for their nutrition projects (42 USC 3030a(d)(2).3.Service ProvidersSupportive Services and Senior Centers and Nutrition Servicesa.Funds may be used to assist in the operation of multi-purpose senior centers and to meet all or part of the costs of compensating professional and technical personnel required for center operation (42 USC 3030d (b)(2).b.Funds may be used for nutrition services and supportive services consistent with the terms of the agreement between the Area Agency and the service provider (42 USC 3026 (a)(1), 3030d(a), and 3030e).c.Funds may be used for services associated with access to supportive services for in-home services, and for legal assistance (42 USC 3026 (a)(2).d.Nutrition services may be provided to older individuals spouses, who may not be eligible for these services in their own right, on the same basis as they are provided to older individuals, and may be made available to handicapped or disabled individuals who are less than 60 years old but who reside in housing facilities occupied primarily by older individuals at which congregate nutrition services are provided (42 USC 3030g-21(2)(I).e.In accordance with procedures established by the Area Agencies, nutrition project administrators may offer meals to individuals providing volunteer services during the meal hours and to individuals with disabilities who reside at home with and accompany eligible individuals (42 USC 3030g-21(2)(H).f.Funds may be used for provision of home-delivered meals to older individuals (42 USC 3030f). g. Funds may be used to acquire (in fee simple or by lease for 10 years or more), alter, or renovate existing facilities or to construct new facilities to serve as multi-purpose senior centers for not less than 10 years after acquisition, or 20 years after completion of construction, unless waived by the Assistant Secretary for Aging (42 USC 3030b).NSIP - Cash received in lieu of commodities may be used only to purchase U. S. agricultural commodities and other food for their nutrition projects (42 USC 3030a(d)(2).E.Eligibility1.Eligibility for Individuals - Not Applicable2. Eligibility for Group of Individuals or Area of Service Delivery - Not Applicable3. Eligibility for SubrecipientsService providers may include profit-making organizations except that providers of case management services must be public or non-profit agencies (42 USC 3026(a)(8)(C).G.Matching, Level of Effort, Earmarking1.Matchinga.State(1)States must contribute from State or local sources at least 25 percent of the cost of State Plan administration as their matching share. This may include cash or in-kind contributions by the State or third parties (42 USC 3028 (a)(1) and 42 USC 3029 (b); 45 CFR section 1321.47).(2)All services, whether provided by the State Agency, an Area Agency or other service provider (including any ombudsman services provided under the authority of 42 USC 3024 (d)(1)(D) must be funded with a non-Federal match of at least 15 percent. This percentage must be met on a statewide basis. Funds for ombudsman services provided under the authority of 42 USC 3024 (d)(1)(B) are not required to be matched (42 USC 3024 (d)(1)(D); 45 CFR section 1321.47).b.State and Area AgenciesArea Agencies, in the aggregate, must contribute at least 25 percent of the costs of administration of area plans (42 USC 3024 (d)(1)(A); 45 CFR section 1321.47).(1)State - Since this match is computed based on the aggregate of all Area Agencies in the State, the auditors testing of the amount of this match is performed at the State Agency.(2)Area Agencies - The auditors testing of the allowability of the matching (e.g., from an allowable source and in compliance with the administrative requirements and allowable costs/cost principles requirements) should be performed at the Area Agencies. 2.1Level of Effort - Maintenance of EffortState - The State Agency must spend for both services and administration at least the average amount of State funds it spent under the State plan for these activities for the three previous fiscal years. If the State Agency spends less than this amount, the Assistant Secretary for Aging reduces the States allotments for supportive and nutrition services under this part by a percentage equal to the percentage by which the State reduced its expenditures (42 USC 3029 (c); 45 CFR section 1321.49). See III. L.1, “Reporting - Financial Reporting” for the reporting requirement regarding maintenance of effort. 2.2Level of Effort - Supplement Not Supplant - Not Applicable3.Earmarking a.State(1)Overall expenditures for administration are limited to the greater of five percent (or $300,000 or $500,000 depending on the aggregate amount appropriated or a lesser amount for the U.S. territories) of the overall allotment to a State under Title III unless a waiver is granted by the Assistant Secretary on Aging (42 USC 3028 (b)(1), (2), and (3).(2)After a State determines the amount to be applied to State plan administration under 42 USC 3028 (b), the State may:(a)Make up to (and including) 10 percent of that amount available for the administration of Area Plans. The State may either calculate the 10 percent based on the total allotment from AoA or on the amount remaining after deducting the amount to be applied to State Plan administration (42 USC 3024(d)(1)(A); and(b)Use any amounts available to the State for State plan administration which the State determines are not needed for that purpose to supplement the amount available for administration of Area Plans (42 USC 3028(a)(2).(3)Any State which has been designated as a single planning and service area may elect to be subject to the State Plan administration limit (five percent) or the Area Plan administration (10 percent) limit (42 USC 3028(a)(3). (4)A State may transfer:(a)Up to 40 percent of a States separate allotments for congregate and home-delivered nutrition services between those two allotments without AoA approval (42 USC 3028 (b).(b)Not more than 30 percent between programs under Part B and Part C (Parts C1 and/or C2) for use as the State considers appropriate (42 USC 3028(b).(c)An additional 10 percent may be transferred between C1 and C2 with an AoA waiver (42 USC 3028(b).(d)A waiver may be requested to transfer an amount which is above the allowable 30 percent between Parts B and C (42 USC 3030c-3(b)(4).A State Agency may not delegate to an Area Agency or any other entity the authority to make such transfers (42 USC 3028(b)(6). (5)The State agency will not fund program development and coordinated activities as a cost of supportive services for the administration of area plans until it has first spent 10 percent of the total of its combined allotments under this program on the administration of area plans (45 CFR section 1321.17(f)(14).b.Area AgencyAs provided in agreements with the State Agency, Area Agencies earmark portions of their allotment. The typical earmarks are:(1)A maximum amount or percentage for program development and coordination activities by that agency (42 USC 3024(d)(1)(D); 45 CFR section 1321.17(f)(14)(i).(2)A minimum amount or percentage for services related to access, in-home services, and legal assistance (42 USC 3026(a)(2) and (b).H.Period of Availability of Federal FundsFunds are made available to the State annually and must be obligated by the State by the end of the Federal fiscal year in which they were awarded. The State has two years to liquidate all obligations for its administration of the State Plan and for awards to the Area Agencies consistent with its intrastate allocation formula. Therefore, in any given year, multiple years of funding are being used to provide services statewide.Whenever the Assistant Secretary on Aging determines that any amount allotted to a State under Parts B or C for a fiscal year will not be used to carry out the purpose for which the allotment was made, the funds may be reallotted to one or more other States. Any amount made available to a State as the result of a reallotment shall be regarded as part of the States allotment for the same fiscal year in which the funds were appropriated, but shall remain available for obligation by the State until the end