12 CCR 2510-1-10.304 - AREA PLAN FUNDING REQUESTS AND APPROVAL [Rev. eff. 12/1/10]

A. Contractors of the SUA shall apply for Older Americans Act funds at a time and in the format designated by the SUA.

B. Contractors shall be notified in writing by the SUA of approval, conditional approval, or disapproval of the application.

C. Issuance of the signed option letter or funding letter constitutes spending authority for the contractor, and approval of the Area Plan and/or annual funding request.

D. The project period shall be stipulated in the option letter or funding letter issued by the SUA and shall be the period from the start date of the contract to the end date of the contract.

E. The project period shall not extend beyond the end of the contract unless a later date is specifically authorized in writing by the SUA or specified in the funding request or contract approved by the SUA.

F. Submission of a request for reimbursement after the issuance of an option letter or funding letter, or revised option letter or funding letter is issued, constitutes acceptance of all contract conditions, unless a written appeal is filed by the AAA.

10.304.1 Awarding of Funds [Rev. eff. 2/1/16]

A. The federal government awards funds to the SUA for the purpose of distributing such funds throughout Colorado according to the guidelines established under the Older Americans Act and the approved State Plan on Aging.

B. The AAAs shall have a formal award agreement or contract with service providers to provide services under the Area Plan.

C. Preference in awarding funds or contracts for Title III, as defined at Section 10.120 "Definitions", services shall be given to minority organizations which meet any one of the following criteria: not for profit organization with a controlling board comprised at least fifty-one percent (51%) of individuals who are American Indian or Alaskan Native Asian, Black or African American, Native Hawaiian or other Pacific Islander, or Hispanic or a private business concern that is at least fifty-one percent (51%) owned by individuals in the racial and ethnic categories listed above or a publicly owned business having at least fifty-one percent (51%) of its stock owned by one or more individuals and having its management and daily business controlled by one or more individuals in these racial and ethnic categories listed, if, in the judgment of the awarding agency and all other requirements being equal, the award or contract:

1. Facilitates meeting the requirement of giving preference to older adults with greatest social or economic need; and,

2. Results in particular attention to low-income minority older adults and older adults living in rural areas.

10.304.2 Conditions of Award or Contract [Rev. eff. 2/1/16]

Program activities conducted with a Title III, as defined at Section 10.120 "Definitions", award or contract shall comply with the following:

A. The Older Americans Act;

B. Clarifications or guidance issued by the United States Department of Health and Human Services;

C. Colorado Department of Human Services' Older Americans Act Program rules;

D. Any conditions attached to the contract, option letter or funding letter issued to Area Agencies, sub-contractors, or contractors; and,

E. Requirements found at 45 CFR, Part 1321; 45 CFR, Part 74; 45 CFR, Part 92; and 45 CFR, Part 95. These shall not include any later amendments to or editions of the incorporated material. Copies of these materials are available for public inspection by contacting:

Colorado Department of Human Services, Division of Aging and Adult Services, Manager, State Unit on Aging, 1575 Sherman Street, Denver, Colorado 80203; or any State Publication Depository Library.

10.304.3 Cash Advances on Awards [Rev. eff. 2/1/16]

A. The SUA may provide cash advances to an AAA for cash flow purposes during the reimbursement period.

B. Cash advances shall be distributed from the specific federal funding part that made up the money for the advance.

C. Cash advances shall be used to pay for services funded through the specific federal funding part related to the advance.

D. Cash advances that are made up of federal dollars shall not be used as an advance for other funding streams.

E. In the event a new agency becomes the AAA, the exiting AAA shall return the balance of the cash advance to the SUA within thirty calendar days of contract termination.

10.304.4 Interest on Cash Advances [Rev. eff. 12/1/10]

A. Contractors and sub-contractors shall maintain advances of federal funds in interest-bearing bank accounts. This shall include cash advances as described in this rule section.

B. Interest earned on these cash advances of federal funds shall not be considered "local" income.

C. Interest amounts up to $250.00 per year may be retained for administrative expenses.

D. Interest amounts in excess of $250.00 shall be remitted annually to the SUA.

10.304.5 Enforcement, Suspension, or Termination of a Contract [Rev. eff. 12/1/10]

A. The contracting agency (SUA or AAA) shall take one or more enforcement actions, if the contract recipient:

1. Fails to comply with these rules; or,

2. Has materially failed to comply with the terms of the annual funding request; or,

3. Fails to carry out required corrective action by the dates specified by the contracting agency.

B. Enforcement actions may include:

1. Temporarily withholding cash payments pending correction of the deficiency by the contractor or sub-contractor;

2. Disallowance (denial of use of funds and any applicable matching credit) for all or part of the cost of the activity or action not in compliance;

3. Total or partial suspension of the current award;

4. Termination of the current award; and,

5. Other remedies as may be legally available.

C. Non-compliance shall be documented by the contracting agency.

D. The contracting agency shall notify the contractor in writing of the required corrective actions and dates by which the corrective action shall be due.

E. Notification shall include the contractor's or sub-contractor's rights to a hearing, appeal or other administrative action.

F. The contractor or sub-contractor shall not incur new obligations against the contract during the period of suspension unless expressly authorized to do so by the contracting agency.

G. If the contractor remains in suspension until the end of the contract period recorded in the option letter or funding letter, the contract shall be automatically terminated.

H. If a contract to an AAA is suspended or terminated by the SUA, the agency acting on its behalf may administer the Area Plan described in Section 10.211.

I. Termination of a contract shall occur on other grounds if:

1. The contracting agency and the contractor agree upon the termination conditions; or,

2. The contractor notifies the agency in writing of the termination, the effective date and, in case of partial termination, the portion of the contract to be terminated.

J. In the case of partial termination, the contracting agency shall determine whether the remaining portion of the contract will accomplish the purposes for which it was awarded. If not, the contracting agency may terminate the contract in its entirety.

K. If a contract is terminated:

1. The contractor shall not incur new obligations after the effective date of the termination;

2. The contractor shall cancel outstanding obligations; and,

3. The contracting agency shall allow full credit to the contractor for obligations properly incurred prior to termination that cannot be cancelled.

10.304.6 Multipurpose Senior Center Federal Reversionary Interest [Rev. eff. 12/1/10]

The Administration on Aging (AOA) retains a federal reversionary interest to recover funds at a percentage of the current market value of the multipurpose senior center, equal to the percentage of AOA funds contributed to the cost of the facility.

Notes

12 CCR 2510-1-10.304

39 CR 01, January 10, 2016, effective 2/1/2016