Administrative Code

Virginia Administrative Code
12/1/2021

Part IV. Administration of Grants and Contracts

Article 1
Principles and Standards for Financial Management and Accounting

22VAC30-60-120. Basis of accounting.

Article 1
Principles and Standards for Financial Management and Accounting

A. Each area agency and all entities with which such area agency itself contracts shall report program outlays and program income on the modified accrual basis. Accordingly, expenditures are recorded when a liability is incurred (i.e., when goods and services have been received or the amount can be readily estimated), but revenue is not recorded until actually realized or recognized and collectible by the grantee/contractor or entity under subcontract in a current reporting period.

B. If the Area Agency or entity under subcontract presently maintains its accounting system on the cash basis, it must develop the necessary accrual information through analysis of pertinent documentation on hand.

C. Area Agencies on Aging shall observe the cash basis of accounting for U.S. Department of Agriculture (USDA) funding and the commodities-received basis for USDA commodities. An unbilled receivable shall not be reflected for USDA receivables.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-130. 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.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

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 75.302, an Area Agency on Aging shall adopt its own account structure based on its own external and internal reporting requirements.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012; amended, Virginia Register Volume 35, Issue 16, eff. May 1, 2019.

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-supported or contract-supported activities and for activities under subcontract. At a minimum, these records shall contain information pertaining to the grant or contract, subcontracts, authorizations, obligations, unobligated balances, assets, outlays, income, and, if the recipient is a governmental entity, liabilities.

C. Special grant or contract conditions more restrictive than those prescribed in 45 CFR Part 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 that does not meet the standards of 45 CFR Part 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 or worksheets;

7. Project cost control subsidiary ledger or worksheets; and

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

E. Grantees or contractors of the Virginia Department for Aging and Rehabilitative Services may substitute the equivalent kind of records for those specified 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.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012; amended, Virginia Register Volume 35, Issue 16, eff. May 1, 2019.

22VAC30-60-160. USDA funds.

Providers of nutrition services to older persons shall treat USDA funds as income upon receipt.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-170. Reimbursement from other sources.

All reimbursement under Titles XIX and XX of the Social Security Act for services funded jointly by the Older Americans Act, as amended shall be considered "other federal funds" for budgeting and reporting purposes.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-180. Liquidation of obligations.

A. Grantees/contractors of the Virginia Department for Aging and Rehabilitative Services and subcontractors of the Area Agencies on Aging shall liquidate all obligations incurred under the Older Americans Act, as amended within 90 days of the end of the grant period. The Virginia Department for Aging and Rehabilitative Services shall consider written requests for waivers of this rule in the case of any multiyear subcontracts involving construction or renovation.

B. All Virginia general fund moneys shall be spent by June 30 of the year covered by the award. No unliquidated obligations shall exist beyond June 30.

Statutory Authority

§ 51.5-131 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-190. Area Agency on Aging fiscal manual.

An Area Agency on Aging shall prepare a complete, accurate, and current set of written fiscal policies to be maintained in the form of an officially adopted manual. This manual shall cover the area agency's own fiscal policies and those applicable to its subcontractors. At a minimum, the manual shall provide for a description of each of the following accounting applications and the internal controls in place to safeguard the agency's assets: billings, receivables, cash receipts, purchasing, accounts payable, cash disbursements, payroll, inventory control, property and equipment, and general ledger. Each of the agency's fiscal activities for revenue/receipts, disbursements and financial reporting shall also be described.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 2
Transfer of Funds

22VAC30-60-200. Authority to transfer funds between the titles of the Older Americans Act.

Article 2
Transfer of Funds

A. With the prior written approval of the Virginia Department for Aging and Rehabilitative Services, an Area Agency on Aging may transfer funds between the titles of the Older Americans Act, as amended. Area agencies may request transfers of up to 25% between Title III-C(1) funds and Title III-C(2) projects.

B. With the prior written approval of the department, area agencies may transfer up to 10% between Title III-C funds and Title III-B projects.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 3
Personnel Policies

22VAC30-60-210. Employment of key Area Agency on Aging personnel.

Article 3
Personnel Policies

The governing board of the Area Agency on Aging shall have the authority to hire and otherwise supervise the activities of the Director of the Area Agency on Aging. All recruitment efforts shall be guided by a description of duties and a list of recruitment criteria developed in advance by the Area Agency on Aging.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-220. Taking security deposits and making payments on behalf of clients.

Unless an Area Agency on Aging has an approved program for such purposes and any such security deposits and payments are explicitly covered under the agency's fidelity bond coverage, all officers, employees, volunteers and agents shall be prohibited from taking security deposits for clients or from making payments on behalf of participants of programs funded under the Older Americans Act, as amended. Where such programs are provided for and explicitly covered under the agency's fidelity bond coverage, adequate safeguards shall be formally in place and the operation of the program periodically monitored by the Area Agency on Aging.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-230. Support for labor distribution.

A. Charges to awards for salaries and wages shall be based on documented payrolls approved by a responsible supervisory official of the Area Agency on Aging. The distribution of time worked must be supported by personnel activity reports.

B. Labor distribution reports should be prepared and controlled according to the following minimum standards:

1. Employees, including employees under subcontract, are responsible for preparing their own timecards/timesheets.

2. Employees shall be provided clear instructions as to the work to be performed and the grant/contract category or program to be charged.

3. Periodic internal reviews of the timekeeping system shall be performed to assure compliance with system controls.

4. Overtime hours shall be approved in advance and justification provided.

5. A list of supervisors authorized to approve timecards/timesheets shall be maintained along with signature cards kept on file by the timekeeping office.

C. In situations where the use of labor distribution reports may be impractical or essentially the same results could be obtained through sampling techniques, an Area Agency on Aging may request in writing from the Virginia Department for Aging and Rehabilitative Services approval of a substitute system which involves staff-maintained labor distribution reports for a prototypical period.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-240. Up-to-date job descriptions for all Title III funded positions.

For each paid and volunteer position funded by Title III of the Older Americans Act, as amended, an Area Agency on Aging shall maintain:

1. A current and complete job description which shall cover the scope of each position-holder's duties and responsibilities and which shall be updated as often as required, and

2. A current description of the minimum entry-level standards of performance for each job.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 4
Property Control

22VAC30-60-250. Inventorying acquired equipment.

Article 4
Property Control

An Area Agency on Aging shall conduct or have conducted on an annual basis an inventory of all equipment acquired with funds granted by the Virginia Department for Aging and Rehabilitative Services, including equipment acquired by their subcontractors and subgrantees.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-260. Control of USDA commodities.

To prevent unauthorized diversion, all elderly nutrition projects obtaining commodities from USDA shall conduct an inventory at least once a year of all USDA commodities and shall maintain a perpetual inventory system over such commodities.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-270. Purchase of automatic data processing (ADP) equipment.

A. An Area Agency on Aging shall take special precautions in the purchase of ADP equipment and software. The purchase, lease, or retention of ADP equipment shall require prior approval from the Virginia Department for Aging and Rehabilitative Services on an individual or blanket purchase basis.

B. In the acquisition of computer equipment, an Area Agency on Aging shall ensure the following:

1. A full requirements analysis has been conducted;

2. Its computer utilization needs are projected over at least a three-year period;

3. The intended software system meets federal and state reporting requirements;

4. There is adequate post-sale vendor support; and

5. Competitive purchasing procedures are adhered to.

C. The cost of ADP services does not require federal or state prior approval.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-280. Area Agency on Aging property control policies.

An Area Agency on Aging shall have written policies and procedures, approved by the governing board, for managing equipment purchased in whole or part with federal, state, or matching funds, to include: (i) accurate and complete property records, (ii) regular physical inventory of equipment, (iii) adequate maintenance procedures, and (iv) disposal of property and equipment.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 5
Procurement Practices and Contracting

22VAC30-60-290. Summary of procurement procedures.

Article 5
Procurement Practices and Contracting

A. Each Area Agency on Aging not subject by statute to the Virginia Public Procurement Act (§ 2.2-4300 et seq. of the Code of Virginia) shall have written policies and procedures which are consistent with the provisions of the Virginia Public Procurement Act.

B. The Area Agency on Aging shall incorporate in any contract, grant, or purchase agreement of over $50,000 the conditions specified in the Virginia Public Procurement Act or those conditions provided in the written policies and procedures required in subsection A of this section.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-300. Contract awards to Area Agencies on Aging.

The Virginia Department for Aging and Rehabilitative Services is authorized under § 51.5-135 of the Code of Virginia to award grants or contracts, or a combination of both, to a designated Area Agency on Aging to administer programs under an approved area plan. The Virginia Department for Aging and Rehabilitative Services has determined that the contracts mechanism is the appropriate vehicle for making awards to Area Agencies on Aging in furtherance of its purpose under its approved area plan. Even though the procuring mechanism is called a contract, for purposes of interpreting federal regulations, the provisions for grants and grantees shall apply to an Area Agency on Aging rather than the provisions for contracts.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-310. Unauthorized awards to debarred, suspended, or high-risk subcontractors.

A. An Area Agency on Aging shall make awards only to responsible subcontractors possessing the ability to perform successfully under the terms and conditions of the proposed contract. Consideration shall be given to such matters as the integrity of the subcontractor, compliance with public policy, record of past performance, and financial and technical resources.

B. An Area Agency on Aging shall not execute any subcontract at any tier to any party that is debarred or suspended or is otherwise excluded from or ineligible for participation in federal assistance programs.

C. An Area Agency on Aging shall require its proposed subcontractors at any tier to certify whether they have been excluded from participation in federal assistance programs.

D. If an Area Agency on Aging believes that there are compelling reasons for executing a subcontract with a debarred, suspended, or voluntarily excluded provider in a particular area, the area agency may apply to the Virginia Department for Aging and Rehabilitative Services for a waiver from this requirement. Such waivers shall be granted only in unusual circumstances upon the written determination, by an authorized Virginia Department for Aging and Rehabilitative Services official, that there are compelling reasons justifying the participation.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-320. Authority for multiyear awards.

A. An Area Agency on Aging may enter into a multiyear subcontract provided such contract has a completion date, a binding schedule of costs for each year of the entire contract period, a satisfactory performance clause, and a funds-availability clause. An optional-year contract is the preferred contracting mechanism for multiyear awards.

B. The maximum period of time for a multiyear subcontract from the effective date of the contract to close-out shall be five years. Any subcontracts for periods longer than five years shall be reprocured and renegotiated at the end of the five-year period through normal competitive processes.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-330. Preference for small business and minority firm awards of grants and contracts..

It is the Virginia Department for Aging and Rehabilitative Services' policy that a fair share of subcontracts be awarded to small and minority business firms and nonprofit organizations. Accordingly, affirmative steps shall be taken to assure that small and minority businesses are utilized, when possible, as sources of supplies, equipment, construction, and services.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-340. Contract and competitive grants appeals process.

An Area Agency on Aging shall establish an appeals and hearing process to resolve disputes and claims involving contracts and competitively awarded grants, if such are authorized. At a minimum, this process shall describe:

1. Applicable procurement rules to be used in the appeals process;

2. Designation of an impartial officer to hear and pass on the dispute or claim;

3. Form and timing of the claim to be filed;

4. Right of the claimant to counsel;

5. Hearing procedures;

6. Manner and timing of the hearing officer's opinion;

7. Right to appeal to the Virginia Department for Aging and Rehabilitative Services; and

8. Retention and disposal of the hearing's record.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 6
General Program Income

22VAC30-60-350. Acceptable methods for general program income.

Article 6
General Program Income

An Area Agency on Aging is authorized to observe the additional-costs alternative. Under this alternative, all general program income earned by the Area Agency on Aging shall be retained by the area agency and added to funds committed to the project by the Virginia Department for Aging and Rehabilitative Services and shall be used to further eligible program objectives.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-360. Treatment of interest earned on advances.

Interest earned on federal funds passed through the Virginia Department for Aging and Rehabilitative Services is to be considered general program income. Such funds may be used as cash match in the supportive services and nutrition programs, to expand any approved program, or to further any activity or benefit to the elderly as approved by the governing board of the Area Agency on Aging. Such funds may not be used to meet the costs associated with the preparation and administration of the area plan.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-370. Allowable investment and custody policies..

The investment of available federal or state funds shall be directed by two principles: (i) all funds received must be protected from unreasonable loss or diminished value, and (ii) investments must be selected to earn a reasonable return on funds not expected to be disbursed immediately. In furtherance of such principles, the following investment mechanisms are authorized:

1. Any interest bearing checking account that is fully insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation;

2. NOW accounts.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-380. Timing of spending general program income.

In general, there is no time restriction as to when general program income under the additional-costs alternative must be spent. To avoid any excessive accumulation of funds and the abuse of this alternative, the Virginia Department for Aging and Rehabilitative Services has determined that general program income earned under the additional-costs alternative shall be spent in the year in which it is earned. If it is earned near the end of the agency's fiscal year and the agency is unable to spend this income by then, it shall at least be spent before the expenditure of any federal or state funds in the beginning of the next fiscal year.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-390. Special internal control safeguards over participant contributions.

Because of the cash nature of participant contributions, agencies shall exert special safeguards over such funds. At a minimum, agencies receiving participant contributions shall employ one or more of the following precautions: (i) have two persons count all cash contributions; (ii) deposit the amount intact; (iii) make deposits on a daily basis; (iv) maintain all cash contributions in a secure place until deposit; (v) regularly justify cash counts against deposit receipts received from the bank; (vi) for home-delivered meals, maintain lock boxes in the vans and encourage mailed contributions; (vii) provide a clearly stated policy concerning provision of client receipts, in duplicate, for each cash transaction; and (viii) rotate staff periodically, if staffing permits.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-400. Area Agency on Aging written policies on program income.

An Area Agency on Aging shall formally adopt written policies and procedures, approved by the governing board, regarding collection, disposition, and accounting for (i) program income, including participant contributions, and (ii) interest and other investment income earned on advances of federal and state funds.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 7
Bank Balance and Check Handling Procedures

22VAC30-60-410. Rules on cash management by Area Agencies on Aging.

Article 7
Bank Balance and Check Handling Procedures

A. An Area Agency on Aging shall institute procedures to minimize their cash balances of funding provided by the Virginia Department for Aging and Rehabilitative Services. Accordingly, Area Agencies on Aging shall tailor projections of cash requirements from the Virginia Department for Aging and Rehabilitative Services to coincide closely with the actual disbursement of such funds.

B. An Area Agency on Aging shall adopt procedures for minimizing the time elapsed between the receipt of federal and state funds and their disbursement.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-420. Fidelity bond requirements.

For all personnel handling cash or preparing or signing checks, the Area Agency on Aging shall obtain minimum insurance coverage of three-months' cash flow, including checks received, in blanket fidelity bond coverage.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 8
Monitoring of Subcontractors of Area Agencies on Aging

22VAC30-60-430. Area Agency on Aging written policies on subcontractor monitoring.

Article 8
Monitoring of Subcontractors of Area Agencies on Aging

Each Area Agency on Aging shall adopt formal written policies and procedures, approved by the governing board, for monitoring their subcontractors and subgrantees under the approved area plan and for follow-up on any findings.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 9
Carry-Over Balance Policies

22VAC30-60-440. Carry-over funds.

Article 9
Carry-Over Balance Policies

Carry-over funds may represent obligated but unspent funds. For such funds to be available for expenditure in a subsequent fiscal year, the Virginia Department for Aging and Rehabilitative Services must reauthorize in the subsequent area plan such funds for an area agency to obligate and expend. An Area Agency on Aging shall request authority for such reauthorization of funds. In general, carry-over balances from Titles III-B, III-C(1), III-C(2), and III-D should not exceed 10% of the federal obligation for the new fiscal year, computed separately. This 10% carry-over policy does not apply to Virginia general fund moneys; all of general fund moneys must be spent by June 30 of the fiscal year in which they have been awarded. Approval for the use of such federal carry-over funds shall be granted by the Virginia Department for Aging and Rehabilitative Services only for specific uses and for a specified period of time.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 10
Audits

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

Article 10
Audits

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 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."

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012; amended, Virginia Register Volume 35, Issue 16, eff. May 1, 2019.

22VAC30-60-460. Frequency of audits and due date for submission of audit reports.

A. An audit of Area Agencies on Aging and their grantees and cost-reimbursement contractors shall be conducted at least annually.

B. The audit report shall be submitted to the Virginia Department for Aging and Rehabilitative Services by December 15. If, for reasons within the control of the Area Agency on Aging, this report cannot be submitted by this time, funding of the agency may be suspended by the Virginia Department for Aging and Rehabilitative Services. An Area Agency on Aging shall make a written request for an extension of time for justifiable reasons to the Virginia Department for Aging and Rehabilitative Services before December 15. Such request shall be submitted with sufficient time for Virginia Department for Aging and Rehabilitative Services' review and approval.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-470. Scope of audit report.

A. The audit shall be made by an independent auditor in accordance with generally accepted government auditing standards covering financial and compliance audits.

B. The audit shall cover the entire operations of the agency or, at the option of that agency, it may cover departments, agencies or establishments that received, expended or otherwise administered federal financial assistance during the year. A series of audits of individual departments, agencies, and establishments for the same fiscal year may be considered a single audit.

C. The auditor shall determine whether:

1. The financial statements and the accompanying schedules of the agency, department, or establishment present fairly its financial position and the results of its financial operations in accordance with generally accepted accounting principles.

2. The organization has internal accounting and other control systems to provide reasonable assurance that it is managing federal financial assistance programs in compliance with applicable laws and regulations.

3. The organization has complied with laws and regulations that may have a material effect on its financial statements and on each major federal assistance program.

D. The independent public accountant shall render an opinion on three accompanying schedules: Status of Funds, Costs by Program Activity, and Status of Inventories.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-480. Area Agency on Aging audit resolution.

Each Area Agency on Aging shall have a systematic method to assure the timely and appropriate resolution of audit findings and recommendations.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 11
Close-Out Procedures

22VAC30-60-490. Close-out.

Article 11
Close-Out Procedures

A. In the event of termination, all property, documents, data, studies, and reports purchased or prepared by the Area Agency on Aging or its subgrantees or subcontractors under its approved area plan shall be disposed of as directed by the Virginia Department for Aging and Rehabilitative Services. The terminated Area Agency on Aging shall be entitled to compensation for any unreimbursed expenses reasonably and necessarily incurred up to the point of receipt of the termination notice in satisfactory performance under its approved area plan. In spite of the above, the Area Agency on Aging shall not be relieved of liability to the Virginia Department for Aging and Rehabilitative Services for damages sustained by the Virginia Department for Aging and Rehabilitative Services by virtue of any breach of the approved contract and area plan. The Virginia Department for Aging and Rehabilitative Services may withhold for purpose of a set-off any reimbursement of funds to the Area Agency on Aging until such time as the exact amount of damages due the Virginia Department for Aging and Rehabilitative Services from the Area Agency on Aging is agreed upon or otherwise determined.

B. In the event of rescission, revocation, or termination, all documents and other materials related to the performance under the Area Plan for Aging Services shall become the property of the Virginia Department for Aging and Rehabilitative Services.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-500. Bankruptcy.

Approval of the area plan shall be withdrawn and any contractual relations terminated for cause if, upon 60 days notice, either party is adjudicated bankrupt, is subject to the appointment of a receiver and fails to have such receiver removed within 60 days, has any of its property attached and fails to remove such attachment within 60 days, or becomes insolvent or for a period of 60 days is unable to pay its debts as the same become due.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-510. Follow-up actions to grant or subgrantee close-out or termination.

As a consequence of close-out or termination, the following steps shall be taken:

1. Upon request, the Virginia Department for Aging and Rehabilitative Services shall promptly pay the contractor for all allowable reimbursable costs not covered by previous payments.

2. The contractor shall immediately refund or otherwise dispose of any unobligated balance of cash advanced to the contractor, in accordance with instructions from the Virginia Department for Aging and Rehabilitative Services.

3. The contractor shall submit, within 90 days of the date of close-out or termination, all financial, performance, and other reports required by the terms of the agreement. The Virginia Department for Aging and Rehabilitative Services may extend the due date in response to a written or oral request from the contractor. The department shall respond in writing to the request.

4. The Virginia Department for Aging and Rehabilitative Services shall make a settlement for any upward or downward adjustment of the federal share of costs, to the extent called for by the terms of the agreement.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Article 12
Record Management

22VAC30-60-520. Area agency record retention requirements.

Article 12
Record Management

Fiscal records shall be maintained for five years from the date the Virginia Department for Aging and Rehabilitative Services submits to the U.S. Department of Health and Human Services its final expenditures report for the funding period. This period may be extended, if an audit, litigation, or other action involving the records is started before the end of the five-year period and the records must be retained until all issues arising from the action are resolved or until the end of the five-year period, whichever is later.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-530. Contractors and subcontractors.

In the case of grantees/contractors and subcontractors, there shall be a five-year record retention requirement from the date when final payment is made and all other pending matters are closed. Grantees/contractors and subcontractors of the Virginia Department for Aging and Rehabilitative Services shall include a provision in contracts for the five-year record retention period and for access to the contractor's records by authorized representatives of the Commonwealth of Virginia and the United States Government.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-540. Other record retention requirements.

An Area Agency on Aging and its subcontractors/subgrantees shall also comply with the record retention requirements of the State Corporation Commission and the Internal Revenue Service for corporations and individuals.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-550. Area agency policy and procedures.

An Area Agency on Aging shall have written policies and procedures approved by the governing board regarding the retention and access to all financial and programmatic records, supporting documents, statistical records, and other records.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

22VAC30-60-560. Access to records.

In addition to the head of the federal sponsoring agency and the Comptroller General of the United States, or any of their duly authorized representatives, the Commissioner of the Virginia Department for Aging and Rehabilitative Services and the Comptroller of the Commonwealth of Virginia, or their duly authorized representatives, shall have the right of access to any pertinent books, documents, papers, and records of the Area Agency on Aging and its subcontractors to make audits, examinations, excerpts, and transcripts.

Statutory Authority

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

Historical Notes

Derived from Virginia Register Volume 29, Issue 2, eff. October 24, 2012.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.