Section 213.153 - AAA Fiscal Responsibilities(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: (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: (B) in-home services; and(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).(A) The AAA must demonstrate to DADS there are sufficient services available in the requested category to meet the need for such services.(B) A AAA must submit a separate request for each category of service for which a waiver is sought.(3) A AAA must comply with DADS instructions regarding adequate expenditures for the Medication Management Program funds appropriated under the Older Americans Act, Title III, Part D.(l) Caregiver support program limitation. In accordance with the Older Americans Act, §373(g)(2)(C), a AAA may not use more than 10 percent of the funds appropriated under Title III, Part E of the Older Americans Act for the Caregiver Support Program for program participants 55 years of age and older who are providing primary care for children 18 years of age or younger.(m) Administrative services. A AAA that elects to utilize state general revenue for administrative services may not supplant existing federal funds appropriated for such services.26 Tex. Admin. Code § 213.153
The provisions of this §213.153 adopted to be effective September 1, 2008, 33 TexReg 7293; transferred effective November 15, 2020, as published in the Texas Register October 30, 2020, 45 TexReg 7721