Section 130. Authority to expend federal and state funds

A. By virtue of the Virginia Department for Aging and Rehabilitative Services' approval of an Area Plan for Aging Services, issuance of a notice of approval, and execution of the contract, an Area Agency on Aging is granted authority to incur costs under its approved area plan for eligible activities, for the period covered by the area plan. This authorization to incur costs under its approved area plan is extended only for allowable and allocable costs which are also reasonable and net of all applicable credits.

B. An Area Agency on Aging receiving a contractual award pursuant to an approved area plan understands and agrees that the period of the contractual award is for one year. Prior to the renewal of the contractual award of any additional financial support for any subsequent period, the Virginia Department for Aging and Rehabilitative Services may conduct an on-site evaluation of the Area Agency on Aging to determine if the objectives of the area plan are being met and whether continued financial support is indicated.

C. An Area Agency on Aging is to refer to the federal cost principles applicable to its type of organization to ascertain when prior approval is required from the Virginia Department for Aging and Rehabilitative Services. In addition, prior approval may be required by the contractual award of funded support from the Virginia Department for Aging and Rehabilitative Services or required by specific program legislation or regulation, including but not limited to the following:

1. Changes in the scope or objectives of the activities assured by the area plan, as approved and incorporated into the contractual award;

2. Undertaking any activities which are disapproved or restricted as a condition of the contractual award;

3. Any pending change of institutional affiliation of the Area Agency on Aging, any reassignment to a legal successor of interest, or any nominal or legal change in agency name. The Virginia Department for Aging and Rehabilitative Services may in its discretion determine whether to approve such contractual modification and continue funding the existing project or projects under the new entity. Factors to be considered include assurances to continue the project or projects as approved and the acceptance of the new entity by the carrier of any surety bonds required for the project or projects;

4. Transferring to a third party, by contract or any other means, the actual performance of substantive responsibility for the management of the grant/contract. Generally, such changes may require the designation of a new Area Agency on Aging and the execution of a new contract;

5. Carrying over funds from one budget period to another;

6. Extending the budget/project period with or without additional funds;

7. Expending funds for the purchase of land or buildings;

8. Conveying, transferring, assigning, mortgaging, leasing, or otherwise encumbering property acquired under a grant/contract with the Virginia Department for Aging and Rehabilitative Services;

9. Acquiring automatic data processing equipment (see 22VAC30-60-270);

10. Incurring costs or liabilities prior to the effective date of any grant/contract award;

11. Paying fees to a consultant whenever the consulting agreement (i) constitutes a transfer of substantive management or administrative work to a third party, or (ii) results in a contract for management services that requires the Virginia Department for Aging and Rehabilitative Services or the federal grantor agency's prior approval, as required by program regulations or other award terms;

12. Additional funding when clearly demonstrated to be essential;

13. Reallocating costs between closely related projects supported by two or more grant sources. Approval may be granted to charge costs to the Title III grant for which the costs are originally approved, or to another Virginia Department for Aging and Rehabilitative Services project, when all of the following conditions are met:

a. The projects are programmatically related;

b. There is no change in the scope of the individual grants involved;

c. The reallocation of costs is not detrimental to the conduct of work approved under each individual award; and

d. The reallocation is not used to circumvent the terms and conditions of either individual award;

14. Indemnifying third parties;

15. Transferring funds between construction and nonconstruction;

16. Traveling outside of the continental United States;

17. Contributing to a reserve fund for a self-insurance program;

18. Insuring any U.S. government-owned equipment; and

19. Meeting the costs of nonemergency patient care where other forms of medical cost reimbursement, such as but not limited to Medicaid, are available.

Historical Notes

Derived from Volume 29, Issue 02, eff. October 24, 2012.

Statutory Authority

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