| (a) Purpose. This section establishes the fiscal responsibilities
of a AAA, including responsibilities related to purchases of goods
and services, audits, costs allocation plans, and service and administrative
match.
(b) Purchases of goods and services.
(1) A AAA is permitted to enter into contracts and
vendor agreements for the purchase of goods and services.
(2) Except as provided in paragraph (3) of this subsection,
a AAA must comply with competitive bidding procedures in selecting
a subcontractor through the use of formal bidding, informal bidding,
or competitive proposals, as appropriate. A AAA must document its
compliance with the competitive bidding procedures.
(3) A AAA may select a subcontractor using sole source
procurement in accordance with 45 Code of Federal Regulations (CFR) §92.36(d)(4)
if the award of a contract is not feasible using competitive bidding.
(4) When purchasing goods and services from a service
provider, a AAA must use one of the following cost determination methodologies
in accordance with DADS requirements:
(A) cost reimbursement;
(B) fixed unit rate; or
(C) variable unit rate.
(5) A AAA may make a direct purchase of a service for
a program participant on an individual basis in accordance with §83.19
of this title (relating to Direct Purchase of Services (DPS)).
(6) A AAA must reference in a contract and vendor
agreement the state rules relating to the services being provided
by the subcontractor or the vendor.
(7) A AAA must include in a contract a requirement
that subcontractors have an accounting system that identifies all
costs for each specific service being purchased or provided and that
complies with 45 CFR, Part 1321.
(8) All purchases of services, materials, equipment,
and goods made by a AAA with grant funds must meet the criteria of
allowability as set forth in, as applicable, the Uniform Grant Management
Standards, as adopted by the Governor's Office of Budget and Planning,
including the Office of Management and Budget (OMB) Circulars A-87
and A-122 and 45 CFR, Chapter 92.
(9) All purchases made by a AAA must be evidenced by
receipt of the service or merchandise or issuance of a purchase contract,
voucher, or other legal document that binds both parties to the transaction,
no later than the last day of the grant period for which funds have
been budgeted and encumbered.
(10) If the service or merchandise has not been received
by the last day of the grant period as described in paragraph (9)
of this subsection, a AAA must have received the service or merchandise
and made payment for such before the due date of the closeout report
for the grant period for which funds have been budgeted and encumbered.
(11) A AAA must ensure that a service provider complies
with the requirements described in paragraphs (8) - (10) of this
subsection.
(c) Independent audit.
(1) A AAA must ensure that an independent certified
public accounting firm performs an audit in accordance with:
(A) the standards for financial and compliance audits
contained in the Standards for Audit of Governmental Organizations,
Programs, Activities, and Functions, issued by the U.S. General Accounting
Office;
(B) the Single Audit Act;
(C) OMB Circular A-133, Audits
of States, Local Governments, and Nonprofit Organizations, as
applicable;
(D) the Uniform Grant Management Standards; and
(E) generally accepted accounting principles.
(2) A AAA must provide DADS and the Office of Inspector
General of the Health and Human Services Commission with a report
of the audit conducted in accordance with paragraph (1) of this subsection
within 30 days following receipt of such report or within nine months
following the end of the AAA's fiscal year that the audit covers,
whichever is earlier.
(3) A AAA must ensure that an audit of a subcontractor
is performed by an independent certified public accounting firm in
accordance with OMB Circular A-133 and review the report of the audit
performed.
(d) Indirect Cost Allocation Plan.
(1) To demonstrate compliance with the Uniform Grant
Management Standards, a AAA for which DADS is not the designated
state coordinating agency must submit to DADS an Indirect Cost Allocation
Plan approval letter from the state coordinating agency or federal
cognizant agency.
(2) A AAA for which DADS is the designated state coordinating
agency must submit, in accordance with the Uniform Grant Management
Standards and DADS requirements, an Indirect Cost Allocation Plan
to DADS for its approval.
(e) Unallowable costs.
(1) Unallowable costs made by a AAA, as defined in
OMB Circulars A-87 and A-122, and other applicable state and federal
laws, rules, and regulations, may be identified:
(A) by the public accounting firm that performed an
audit of the AAA in accordance with subsection (c)(1) of this section;
or
(B) by DADS:
(i) as the result of monitoring of the AAA or because
of information contained in the audit report described in subsection
(c)(2) of this section; or
(ii) if a AAA fails to obtain an audit of a subcontractor
in accordance with subsection (c)(3) of this section.
(2) The AAA is liable to DADS for any unallowable costs
identified in accordance with paragraph (1) of this subsection.
(3) If DADS determines a AAA has unallowable costs,
DADS sends the AAA a Letter of Notification of Disallowance with Intent
to Recover Costs by certified or registered mail, requesting the AAA
to resolve all findings and unallowable costs within six months of
receipt of the letter, in accordance with OMB Circular A-133, unless
an extension is granted by DADS.
(f) Refunding of payments.
(1) A AAA may be required to refund to DADS:
(A) unallowable costs identified in accordance with
subsection (e) of this section; or
(B) amounts paid to the AAA in excess of those earned
by the AAA.
(2) Refunds may be made by the AAA by making payment
to DADS or by DADS withholding payments to be made to the AAA.
(3) A AAA that has made a refund to DADS in accordance
with paragraph (1) of this subsection waives all rights to such funds
and must not receive any of the funds as part of a future allocation.
(g) Capital expenditures. A AAA must comply with and
ensure that a service provider complies with capital expenditure guidelines
set forth in the Uniform Grant Management Standards, OMB Circulars
A-87 and A-122, and requirements developed by DADS, as applicable.
(h) Budget submissions.
(1) A AAA must submit to DADS, on an annual basis and
in accordance with DADS requirements, a budget that supports an approved
area plan.
(2) A AAA may submit an amended budget that supports
an approved area plan in accordance with DADS requirements.
(i) Service and administrative match.
(1) A AAA must;
(A) provide funds and in-kind contributions, in accordance
with the Older Americans Act, §304, to match the expenditures
of federal funds made to DADS for the cost of providing goods and
services; and
(B) ensure that an appropriate portion of funds or
in-kind contributions is generated to match the federal fund expenditure
based on the cost of services it provides.
(2) The valuation of services or goods as reported
as in-kind must be based on fair market value.
(3) A AAA may use state general revenue to match funds
appropriated under Title III, Part E of the Older Americans Act.
(4) A AAA must not use state general revenue to match
administrative funds.
(j) Program income. A AAA must administer and ensure
that a service provider administers program income as described in
DADS Program Instruction AAA - PI-305 Administering
Program Income.
(k) Adequate proportion.
(1) In accordance with the Older Americans Act, §306(a)(2),
a AAA must expend funds appropriated under Title III, Part B of the
Older Americans Act to meet an adequate proportion requirement, as
determined by DADS, for:
(A) access services;
(B) in-home services; and
(C) legal assistance.
(2) A AAA may request, in writing, by September 30
of each year, that DADS waive or revise the adequate proportion requirement
for any of the categories of services listed in paragraph (1) of
this subsection for the next federal fiscal year, in accordance with
the Older Americans Act, §306(c).
Cont'd... |
