Title of Regulation: 22VAC30-60. Grants to Area Agencies on Aging (amending 22VAC30-60-20, 22VAC30-60-30, 22VAC30-60-40, 22VAC30-60-60, 22VAC30-60-140, 22VAC30-60-150, 22VAC30-60-450).

Statutory Authority: § 51.5-131 of the Code of Virginia; 42 USC § 3001 et seq.

Effective Date: May 1, 2019.

Agency Contact: Charlotte Arbogast, Policy Advisor, Department for Aging and Rehabilitative Services, 8004 Franklin Farms Drive, Richmond, VA 23229, telephone (804) 662-7063, FAX (804) 662-7663, TTY (800) 464-9950, or email charlotte.arbogast@dars.virginia.gov.

Summary:

The amendments update (i) citations to the Code of Federal Regulations, (ii) names and locations of area agencies on aging and a federal agency, and (iii) federal documents incorporated by reference.

22VAC30-60-20. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Access services" means services associated with access to other services, such as care coordination, information and assistance and transportation services.

"Area" means the planning and service area served by an Area Agency on Aging.

"Area Agency on Aging" means the public or private nonprofit agency created pursuant to the federal Older Americans Act of 1965, as amended (42 USC § 3001 et seq.) and incorporated by reference in this chapter, which has submitted an approved Area Plan and is designated by contract with the Virginia Department for Aging and Rehabilitative Services to develop and administer its area plan as approved for a comprehensive and coordinated system of services for older persons.

"Area Plan for Aging Services" means the document submitted by an area agency to and approved by the Virginia Department for Aging and Rehabilitative Services, as the scope of services in the executed contract, in order to receive funding under the Older Americans Act, as amended.

"Commissioner" means the Commissioner of the Virginia Department for Aging and Rehabilitative Services.

"Complaint" means any written or oral allegation regarding (i) an action, inaction, or decision of a provider which that adversely affects the rights, health, welfare, or safety of the person complaining or the recipient of services, or (ii) a violation of the regulations, policies or procedures which that govern long-term care services, brought by or on behalf of a resident of a long-term care facility, regardless of age, or a recipient of long-term care services provided in the community who is at least 60 years of age.

"Complaint counseling" means information, guidance, and support to enable the complainant or the recipient of services to attempt to resolve the complaint or concern himself, if he so chooses or is able, by utilizing the complaint handling procedures of the long-term care facility or long-term care service provider.

"Contract" means the document of agreement wherein the Virginia Department for Aging and Rehabilitative Services designates the contractor as the duly funded Area Agency on Aging, consistent with the federally approved State Plan for Aging Services, in consideration for which the area agency assures its specific performance of functions and services pursuant to the approved area plan.

"Frail" means having a physical or mental disability, including having Alzheimer's disease or a related disorder with neurological or organic brain dysfunction, which restricts the ability of an individual to perform normal daily tasks or which threatens the capacity of an individual to live independently.

"Government-sponsored area agencies" or "area agencies sponsored by governmental entities" means area agencies created as units of general purpose local governments, area agencies created through the joint exercise of powers, and area agencies created as units of community services boards. Included under this category of Area Agencies on Aging are: District Three Governmental Cooperative trading as District Three Senior Services, New River Valley Agency on Aging, Alexandria Agency on Aging, Arlington Agency on Aging, Fairfax Area Agency on Aging, Loudoun County Area Agency on Aging, Prince William Area Agency on Aging, Rappahannock-Rapidan Community Services Board, Jefferson Area Board for Aging, Lake Country Area Agency on Aging, and Crater District Area Agency on Aging. In instances where governmental-sponsored agencies need to be differentiated by their status as free-standing joint-exercise-of-powers agencies or units of a governmental entity, it has been so denoted.

"Grant" means an award of financial assistance in the form of money, or property instead of money, by the Virginia Department for Aging and Rehabilitative Services to an Area Agency on Aging. The term includes such financial assistance when provided by contract.

"Grantee" or "contractor" means the government, nonprofit corporation, or other legal entity to which a grant is awarded and which is accountable to the Virginia Department for Aging and Rehabilitative Services for the use of the funds provided.

"Greatest economic need" means the need resulting from an income level at or below the poverty level established by the federal Office of Management and Budget.

"Greatest social need" means the need caused by noneconomic factors, which include physical and mental disabilities, language barriers, and cultural, social, or geographical isolation, including that caused by racial or ethnic status, which restricts that restrict an individual's ability to perform normal daily tasks or which threatens threaten such individual's capacity to live independently.

"In-home services" means (i) homemaker/personal homemaker services, (ii) personal care services, (ii) (iii) chore services, (iii) (iv) home health services, (iv) (v) checking services, (v) (vi) residential repair and renovation services, and (vi) (vii) in-home respite care for families and adult day care as a respite service for families.

"Long-term care facility" means any facility outside of the service recipient's home in which two or more unrelated persons receive long-term care services, including, but not limited to, nursing homes licensed by the Department of Health, assisted living facilities licensed by the Department of Social Services, and geriatric treatment centers licensed by the Department of Behavioral Health and Developmental Services.

"Long-term care services" means diagnostic, preventive, therapeutic, rehabilitative, supportive, and maintenance services provided on a recurring or continuous basis for the purpose of (i) minimizing the effects of illness or disability, or both, (ii) assisting a person to maintain his highest level of functioning, or (iii) maintaining or restoring independence. Such services may be provided in the recipient's home or in a community setting such as a long-term care facility.

"Office of the State Long-Term Care Ombudsman" means the program administered and funded by the Virginia Department for Aging and Rehabilitative Services, which that serves as a point of entry, whereby a complaint is received, investigated or referred for investigation, and resolved.

"Older person" or "elderly" or "older individual" means any individual who is 60 years of age or older.

"Planning and service area (PSA)" or "PSA" means a geographic area of the Commonwealth which that is designated for purposes of planning, development, delivery, and overall administration of services under an area plan. Unless otherwise exempted, such planning and service areas shall be coterminous with the planning districts established by the Virginia Department of Planning and Budget, pursuant to §§ 2.2-1501 and 15.2-4202 of the Code of Virginia.

"Private nonprofit Area Agency on Aging" means those area agencies created independently of a local governing body or bodies. They include Mountain Empire Older Citizens, Appalachian Agency for Senior Citizens, League of Older Americans trading as LOA-Area Agency on Aging, Valley Program for Aging Services, Shenandoah Area Agency on Aging, Central Virginia Area Agency on Aging Alliance for Community Living, Southern Area Agency on Aging, Piedmont Senior Resources Area Agency on Aging, Senior Connections, The Capital Area Agency on Aging, Rappahannock Area Agency on Aging, Bay Aging, Southeastern Virginia Areawide Model Program trading as Senior Services of Southeastern Virginia, Peninsula Agency on Aging, and Eastern Shore Area Agency on Aging/Community Action Agency.

"Subgrant" means an award of financial assistance in the form of money, or property instead of money, made under a grant by an Area Agency on Aging to an eligible subgrantee. The term includes such financial assistance when provided by contract.

"Subgrantee" or "subcontractor" means the government, nonprofit corporation, or other legal entity to which a grant is awarded and which is accountable to an Area Agency on Aging for the use of the funds provided.

"Substate Long-Term Care Ombudsman Program" means an organizational unit within an Area Agency on Aging, which the Virginia Department for Aging and Rehabilitative Services designates, through contract with the Area Agency on Aging, to fulfill the duties of the Office of the State Long-Term Care Ombudsman in a specific geographic area.

"Unit of general purpose local government" means a political subdivision of the state whose authority is general and not limited to only one function or combination of related functions.

22VAC30-60-30. Applicability of other regulations.

Several other regulations apply to all activities conducted with Title III funds. These include, but are not limited to:

1. 45 CFR Part 1321: Grants to State and Community Programs on Aging;

2. 45 CFR Part 74 75: Uniform Administrative Requirements for Awards and Subawards to Institutions of Higher Education, Hospitals, Other Nonprofit Organizations, and Commercial Organizations; and Certain Grants and Agreements with States, Local Government and Indian Tribal Governments, Cost Principles, and Audit Requirements for HHS Awards; and

3. 45 CFR Part 84: Nondiscrimination on the Basis of Handicap in Programs and or Activities Receiving Federal Financial Assistance.

Part II
Area Agencies on Aging

22VAC30-60-40. Planning and service areas.

A. The following are currently accepted as Virginia's Planning and Service Areas for purposes of execution of the provisions of 42 USC § 3001 et seq. (the "Older Americans Act") and the federal regulations promulgated thereunder (45 CFR Part 1321). The respective Area Agencies on Aging, under contract with the Virginia Department for Aging and Rehabilitative Services as of the date of these regulations this chapter, are named herein in this section for identification but may be subject to change, pursuant to 22VAC30-60-50.

B. Pursuant to 42 USC § 3025(a)(1)(E) and (b)(1) of the Older Americans Act, as amended, the Department for Aging and Rehabilitative Services, in its discretion, has established that the boundaries for planning and service areas (PSAs) will be coterminous with the boundaries of the planning districts established by the Department of Planning and Budget, except that:

1. Within the boundaries of Planning District 8, the Department for Aging and Rehabilitative Services has established five planning and service areas with the concurrence of the local governing bodies; and.

2. The Department for Aging and Rehabilitative Services has combined Planning Districts 17 and 18 into one planning and service area with the concurrence of the local governing bodies.

3. Within the boundaries of Planning District 23, the Department for Aging and Rehabilitative Services has established two planning and service areas that existed from the former Planning Districts 20 and 21.

C. These boundaries shall be maintained until such time as there is good cause, shown by clear and convincing evidence, to create a new planning and service area.

22VAC30-60-60. Termination of the designation of an Area Agency on Aging.

A. The contractual designation of an incumbent Area Agency on Aging will be renewed annually contingent upon approval of and performance on the Area Plan for Aging Services.

B. The contractual designation of an Area Agency on Aging will be withdrawn by the Commissioner of the Virginia Department for Aging and Rehabilitative Services for any of the following:

1. Upon a written request by the Area Agency on Aging that the commissioner terminate its contractual designation.

2. Upon a request by formal resolution of all the city councils and county boards of supervisors within the planning and service area of the Area Agency on Aging that the commissioner designate and contract with another Area Agency on Aging, whose area plan is approved.

3. Upon a finding by the Virginia Department for Aging and Rehabilitative Services, after reasonable notice and opportunity for a hearing, pursuant to 45 CFR 1321.35, that:

a. An area plan or plan amendment is not approved.

b. An area agency does not meet the requirements of the Older Americans Act, as amended; the federal regulations to implement the Older Americans Act, as amended; the Code of Virginia; or the policies and regulations of the Department for Aging and Rehabilitative Services.

c. There is substantial failure in the provisions or administration of an approved area plan to comply with one or more of the provisions of the Older Americans Act, as amended; the federal regulations to implement the Older Americans Act as amended; the Code of Virginia; regulations of the Department for Aging and Rehabilitative Services; licensing requirements of the Commonwealth of Virginia; and local ordinances.

d. The activities of the Area Agency on Aging are inconsistent with the statutory mission in the Older Americans Act, as amended, and its implementing regulations.

4. Upon reasonable application of the terms and conditions stated in the contract. Contractual obligations, failure of fulfillment of which shall lead to termination of the contract, include, but are not limited to, the following:

a. Failure to correct deficiencies disclosed in an audit report from an audit conducted as required by the Department for Aging and Rehabilitative Services pursuant to 22VAC30-60-450;

b. Failure to report promptly to the Virginia Department for Aging and Rehabilitative Services and to the appropriate law-enforcement officials any theft, embezzlement, or unlawful use of funds received from the Department for Aging and Rehabilitative Services;

c. Failure to submit reports which that meet the requirements (including due dates) established by the Virginia Department for Aging and Rehabilitative Services; and

d. Deliberate falsification of information in such reports.

5. Upon a decision pursuant to 22VAC30-60-50 creating a new Area Agency on Aging or new planning and service area, to the extent that such a decision makes performance on the existing contract impossible.

C. Upon notice by the Virginia Department for Aging and Rehabilitative Services of its intent to terminate, the Area Agency on Aging, within 15 days from receipt of the notice, may request and shall be provided an informal fact-finding conference pursuant to the Virginia Administrative Process Act, § 2.2-4019 of the Code of Virginia. If, from such a conference, a finding is made that one of the conditions set forth in subdivision B 4 of this section applies or that a term or condition in the contract so permits, the contractual designation shall be withdrawn. In the alternative, if no request for such hearing has been made by 15 days from receipt of the notice, the contractual designation shall terminate 30 days after receipt of the notice.

D. If the Commissioner of the Department for Aging and Rehabilitative Services has reason to believe that one or more of the reasons for termination constitutes an emergency endangering the health, safety, or welfare of citizens or seriously threatens the financial or programmatic continuation of services required by the Area Plan for Aging Services, the commissioner may order the immediate suspension of the designation of the Area Agency on Aging, in advance of a hearing, and shall state in writing the reasons therefor.

E. When the contractual designation of an Area Agency on Aging is withdrawn, the commissioner, to assure continued conduct of functions and provision of services to the extent feasible, shall contractually designate a new Area Agency on Aging in a timely manner, or, for a period of up to 180 days from the withdrawal, the Virginia Department for Aging and Rehabilitative Services, itself, may perform the responsibilities of the Area Agency on Aging or may assign the responsibilities of the area agency to another agency in the planning and service area. With the consent of the Commissioner Administrator of the U.S. Administration on Aging for Community Living, the Commissioner of the Virginia Department for Aging and Rehabilitative Services may extend the 180-day period.

22VAC30-60-140. Chart of accounts.

Provided that an Area Agency on Aging is able to comply with the nine standards for financial management systems in U.S. Office of Management and Budget (OMB) Circulars A-102 and A-110, as applicable, and the financial management standards contained in 45 CFR 74.21 75.302, an Area Agency on Aging shall adopt its own account structure based on its own external and internal reporting requirements.

22VAC30-60-150. Elements of an acceptable financial management system.

A. An Area Agency on Aging shall maintain records and make reports in such form and containing such information as may be required by the Virginia Department for Aging and Rehabilitative Services. An Area Agency on Aging shall maintain such accounts and documents as will serve to permit expeditious determination of the status of funds and the levels of services provided under the approved area plan, including the disposition of all moneys received from the Virginia Department for Aging and Rehabilitative Services, and the nature and amount of all charges claimed against such funds.

B. An Area Agency on Aging shall keep records that identify adequately the source and application of funds for grant/contract-supported grant-supported or contract-supported activities and for activities under subcontract. At a minimum, these records shall contain information pertaining to the grant/contract grant or contract, subcontracts, authorizations, obligations, unobligated balances, assets, outlays, income, and, if the recipient is a governmental entity, liabilities.

C. Special grant/contract grant or contract conditions more restrictive than those prescribed in 45 CFR Part 74 75 may be imposed by the Virginia Department for Aging and Rehabilitative Services on an Area Agency on Aging, as needed, when the Virginia Department for Aging and Rehabilitative Services has determined that the Area Agency on Aging:

1. Is financially unstable;

2. Has a history of poor performance; or

3. Has a management system which that does not meet the standards of 45 CFR Part 74 75.

D. For the purpose of determining the adequacy of an area agency's financial management system, the Virginia Department for Aging and Rehabilitative Services shall consider the following records maintained on a current basis to be minimum:

1. General journal;

2. General ledger;

3. Separate or combined cash receipts and disbursements journal or voucher register;

4. Payroll register (if the agency has more than 10 employees);

5. Fixed assets register for all owned and leased property and equipment;

6. In-kind journal/worksheets journal or worksheets;

7. Project cost control subsidiary ledger/worksheets ledger or worksheets; and

8. Bank statements reconciled within 30 calendar days of receipt.

E. Grantees/contractors Grantees or contractors of the Virginia Department for Aging and Rehabilitative Services may substitute the equivalent kind of records for those specified above in subsection D of this section, provided the substitute records meet the function for which those records have been required.

F. An Area Agency on Aging shall have procedures for determining the reasonableness, allowability, and allocability of all contract costs.

Article 10
Audits

22VAC30-60-450. Area Agencies on Aging retain own independent public accountants.

A. Each Area Agency on Aging shall retain its own public accountant, who is sufficiently independent of those who authorize the expenditure of federal funds, to produce unbiased opinions, conclusions, or judgments. The auditor shall meet the independence criteria established in Amendment No. Chapter 3 of the Government Auditing Standards, as amended, (the Yellow Book) published by the U.S. General Accounting Office.

B. In arranging for audit services, an Area Agency on Aging shall follow procurement standards for retaining professional services. Small audit firms and audit firms owned and controlled by minority individuals shall have the maximum practical opportunity to participate in audit contracts awarded.

C. In soliciting and retaining auditors to conduct the annual audit, an Area Agency on Aging must make specific reference in their request for proposals and any resulting subcontract that the auditor shall be required to conform the audit to the requirements in Audits of States, Local Governments, and Nonprofit Organizations, OMB Circular A-133; and the Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations, OMB Circular A-110, as applicable. This would relate to the scope of the audit, standardized audit report, reportable events, monitoring by the Virginia Department for Aging and Rehabilitative Services and quality assurance review, access to audit work papers, plan for corrective action, and resolution of audit findings.

D. The audit solicitation and any resulting contract for audit services shall make specific reference that "if it is determined that the contractor's audit work was unacceptable as determined by the Virginia Department for Aging and Rehabilitative Services or a federal supervisory agency, either before or after a reasonable time after a draft or final report was issued, because it did not meet the Virginia Department for Aging and Rehabilitative Services' standards, the AICPA Standards, or those promulgated by the Comptroller General of the United States, the contractor may, at the area agency's written request, be required to reaudit at its own expense and resubmit a revised audit report which is acceptable."

DOCUMENTS INCORPORATED BY REFERENCE (22VAC30-60)

OMB Circular A-110, (Revised), Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, November 19, 1993.

Government Auditing Standards, Amendment No. 3, January 2002.

OMB Circular No. A-133, Audits of States, Local Governments, and Non-Profit Organizations, Revised 6/24/97.

OMB Circular A-102, Grants and Cooperative Agreements with State and Local Governments, revised October 7, 1994, and further amended August 29, 1997

OMB Circular A-110, Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, revised November 19, 1993, amended September 30, 1999

GAO-03-673G, Government Auditing Standards (the Yellow Book), Chapter 3, 2011 Revision

OMB Circular No. A-133, Audits of States, Local Governments, and Non-Profit Organizations, revised June 27, 2003, and June 26, 2007