| (a) Background. To the extent feasible, and subject
to the availability of funds and other resources, the Department will
give rewards to those area agencies on aging which the Department
finds have demonstrated exceptional performance. When a contractor
has failed to comply with the terms of a contract which governs the
use of monies appropriated under that contract, the Texas Department
on Aging may take actions, described in this section, as may be legally
available and appropriate to the circumstance. It is the intent of
this rule to outline the rewards available for compliance with a contract
and the sanctions available for non-compliance with contract terms
and conditions.
(b) Definitions. Definitions for the terms used in
this section are located in §254.1 of this title (relating
to the Operation of the Texas Department on Aging) and the definitions
for words and terms specific to this chapter shall have the following
meanings, unless the context clearly indicates otherwise.
(1) Level One Sanction - The sanction that the Texas
Department on Aging may impose as a response to a contractual breach
and/or failure to comply with agency rules and specific state and
federal requirements.
(2) Level Two Sanction - The sanction that the Texas
Department on Aging may impose as a response to a severe problem and
the potential negative impact such a problem may have on a Contractor's
region or the state.
(3) Level Three Sanction - The sanction that the
Texas Department on Aging may impose where a severe and/or continued
failure to comply with contractual requirements, agency rules, and/or
state and/or federal laws may affect service delivery and/or Contractor
financial stability.
(4) Level Four Sanction - The sanction that the Texas
Department on Aging may impose where a severe and/or continued failure
to comply with contractual requirements, agency rules, and/or state
and/or federal laws continues to go uncorrected.
(5) Acceptable corrective action plan - Identification
of actions to be taken, including a time line, that are acceptable
to the Department to correct an identified issue of contractual or
legal non- compliance.
(6) Administrative payments - Payments for general
administration of an Area Agency on Aging, including any indirect
costs recovery.
(7) Certified - When used in conjunction with performance
measure testing it describes having obtained acceptable results, within
tolerances allowed by the State Auditor's Office, for data tested.
(8) Discretionary funds - Any funds issued by the
Department that are not awarded based on a general funding formula
or not awarded to all Area Agencies on Aging by action of the Texas
Board on Aging.
(9) Extension - An approved request, which is submitted
to the Department on or before the original due date, to submit required
reports or other required information later than the established
original due date. No more than 2 extensions shall be granted in
any one federal fiscal year.
(c) Preventive Maintenance. Preventive maintenance
measures, developed to ensure program outcome and provide fiscal accountability,
include technical assistance, Program Instructions, timely and effective
program and fiscal monitoring, performance measure testing, and quality
initiative reviews.
(1) Technical assistance is performance-driven and
outcome-based, stressing the sharing of information and best practice
models. Assistance is provided for both fiscal and program issues.
(2) Program Instructions provide clarification and
interpretation of rule and are performance- driven and outcome-based.
Program Instructions may be provided for both fiscal and program
issues.
(3) Program and Fiscal Monitoring assistance may include
site visits, desk reviews, and analysis of both financial and program
outcomes to help identify potential weaknesses before such weaknesses
result in sub-standard performance or questioned costs. Monitoring
may result in recommendations that provide practical solutions that
can be used to take immediate corrective action.
(4) Performance measure testing is conducted to determine
the accuracy of data submitted to the Department and to assess the
quality of the controls in place to ensure the consistency of accurate
and well-documented data. Certification of performance measure testing
should be by design of the controls in place within the system.
(5) Quality Initiative assistance includes routine
evaluation of essential quality indicators and certification systems
and will be enhanced with timely and relevant professional training
and technical assistance to help develop and maintain the knowledge,
skills, and abilities required across program lines.
(d) Contractor Responsibilities. A contractor is responsible
for compliance with the terms of the contract and shall:
(1) comply, as applicable, with all governing documents
set forth in §254.3 of this title (relating to Governing Documents);
(2) comply with the requirements of approved contracts
or plans;
(3) meet the administrative and service requirements
as published by the Department, including, but no limited to, all
budget documents and required reporting in a timely, complete, and
accurate manner, consistent with §260.1 of this title (relating
to Area Agency on Aging Administrative Requirements), and §260.2
of this title (relating to Area Agency on Aging Fiscal Responsibilities);
(4) respond to requests by the Department for specific
correction as a result of:
(A) the area plan or area plan amendment review;
(B) program and fiscal reviews, monitoring and assessments;
(C) investigation and response to complaints; or
(D) erroneous or incomplete information on program
performance or financial reports.
(e) Rewards. Rewards for exceptional performance will
be determined by the Department based on the results of annual monitoring
of an Area Agency on Aging by the Department. Actual rewards are not
limited to, but may include, any one or a combination of: notification
of outstanding performance to the public in the Area Agency's region
and the Board on Aging; funding awards for conferences or leadership
workshops including in-state travel; funding awards for the purchase
of computer equipment; and decreased frequency of monitoring and other
review processes.
(f) Level One Sanctions. Level one sanctions may result
in one or more of the following actions:
(1) require the development, submission, and implementation
of an acceptable corrective action plan to address identified weaknesses
and/or non-compliance;
(2) submission of additional and/or more detailed
financial and/or performance reports;
(3) designation as a high-risk contractor requiring
additional monitoring visits; and
(4) repayment of disallowed costs.
(g) Level Two Sanctions. Level two sanctions may result
in one or more of the following actions:
(1) imposition of one or more level one sanctions;
(2) restrictions on ability to draw down contractor/Area
Agency on Aging administrative funds with notice of such action to
the Area Agency on Aging Director, the Area Agency on Aging Director's
superior, and the contractor's Chairman of the Board or comparable
agency official;
(3) prohibit participation in discretionary funds
application or carryover pool redistribution; and
(4) provision of appropriate technical assistance.
(h) Level Three Sanctions. Level three sanctions may
result in one or more of the following actions:
(1) imposition of one or more level one sanctions;
(2) imposition of one or more level two sanctions;
(3) prohibit or limit provision of direct services
by contractor/Area Agency on Aging;
(4) prohibit or limit the use of specific service
providers/vendors; and
(5) imposition of the requirement that reimbursement
payments made to contractor/Area Agency on Aging for the remainder
of the fiscal year shall be made only following submission of bills
paid or other documentation to show that bills for which reimbursement
is sought have been paid.
(i) Level Four Sanctions. Level four sanctions may
result in one or more of the following actions:
(1) imposition of one or more level one sanctions;
(2) imposition of one or more level two sanctions;
(3) imposition of one or more level three sanctions;
(4) require directed amendment to current area plan;
and
Cont'd... |
