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.