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| ![](media/image1.emf){width="0.75in"                                  |
| height="0.7458333333333333in"}**Administration on Aging**             |
|                                                                       |
| **Policy Clarification Response**                                     |
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| **PCR - 94 - 11 - Revised**                                           |
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| **April 5, 1994**                                                     |
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**Subject**: Required Level of Funding for State and Area Ombudsman
Programs

**Inquiry Source**: AoA Regional Offices, Numerous States

**Stat. & Reg.**

**Basis**: OAA Sections 303(a)(2), 304(d)(1)(B), 306(a)(11), 307(a)(21)
and 705(a)(4)

**Key Words**: Ombudsman, Required Funding Level

**ADDRIS Code**: FA-2-1; FA-3-1; FA-7; FM-1

**Question**: What is the required level of funding for the Ombudsman
Program by State and area agencies and how is that level to be
determined?

**Response**: **Required Funding Level for State Agencies:** Beginning
in FY 1994,[^1] in carrying out the Ombudsman Program under Titles III
and VII, States must, at a minimum, **expend** in a Fiscal Year not less
than the total amount expended by the agency from all sources in fiscal
year 1991, with the exception of:

> funds received in a State\'s allotment of the budget line item for
> abuse prevention (old Title III, Part G) in the FY 1991 Departments of
> Labor, Health and Human Services, and Education, and Related Agencies
> Appropriation Act which the State elected to expend on ombudsman
> activities in FY 1991.
>
> In addition, States should **spend or obligate** on their Ombudsman
> Program the full amount of the **increase** in funding between

! what they received and expended in FY 1991 on ombudsman activities
from the State\'s allotment of the budget line item for ombudsman
services in the FY 1991 Departments of Labor, Health and Human Services,
and Education, and Related Agencies Appropriation Act and

! their Title VII ombudsman allotment for a current Fiscal Year.

> States should use **at least** this amount annually on ombudsman
> services to residents of long term care facilities, as defined in
> Sections 102(19) and (34), 307(a)(12) and 712 of the Act.
>
> **For Area Agencies on Aging:** Beginning in FY 1994 Area Agencies
> must expend on activities of the Ombudsman Program, as defined in
> Section 712 of the Act, not less than the total amount of Title III
> funds received under Section 304(d)(1)(D) and expended by the Area
> Agency in carrying out the Ombudsman Program under Title III in FY
> 1991.

**Discussion**: This is one of two PCR\'s regarding ombudsman and Title
VII funding which, while addressing different issues, should be
considered in tandem. PCR 94-12 discusses the non-supplantation
provision in Title VII, Section 705(a)(4). This PCR discusses the
ombudsman minimum required funding level provisions in Title III,
Sections 306(a)(11) and 307(a)(21).

> Sections 306(a)(11) and 307(a)(21) of the Act establish fiscal year
> 1991 as the base year for the ombudsman funding level for both States
> and Area agencies.
>
> **State Agency Ombudsman Program Funding:** Section 307(a)(21) states:
>
> The plan shall provide assurances that the State agency, in carrying
> out the State Long-Term Care Ombudsman program under section
> 307(a)(12), will expend not less than the total amount expended by the
> agency in fiscal year 1991 in carrying out such a program under this
> title.
>
> AoA interprets this to mean that Congress intended that States, at a
> minimum, maintain the level of expenditures for the Ombudsman Program,
> as it is defined in Section 712 of the Act, which they had achieved in
> FY 1991.
>
> In determining the total amount expended by the State Agency on its
> ombudsman program in fiscal year 1991, States should include:

! all funds expended by the State on ombudsman activities under Title
III of the Older Americans Act, including State match, except for the
abuse prevention allotment cited below;

> ! all other Federal funds expended by the State on ombudsman
> activities, including but not limited to Title IV funding received
> under the provisions of Section 308(b)(3) of the Act (\"Hold
> Harmless\" funding for State administration); and
>
> ! all non-Federal funding expended by the State on ombudsman
> activities.
>
> In determining the total, States may discount any funds received in a
> State\'s allotment of the budget line item for abuse prevention (old
> Title III, Part G) in the FY 1991 Departments of Labor, Health and
> Human Services, and Education, and Related Agencies Appropriation Act
> which the State elected to expend on ombudsman activities in FY 1991.
>
> **Example:**
>
> In FY 1991, a State expended for its Ombudsman Program \$100,000 in
> Title III Federal funds from its FY 1990 and 1991 allotments, \$17,647
> in State match, \$10,000 in State administration funds from its AoA
> Title IV money received under Section 308(b)(3) of the Act (\"Hold
> Harmless\" grant) and an additional \$50,000 in State funds. It also
> received and expended \$45,000 of the special ombudsman allotment (now
> Title VII funding) and chose to expend an additional \$20,000 of its
> elder abuse prevention (formerly Title III, Part G) allotment for
> ombudsman activities to prevent elder abuse in long-term care
> facilities. The base funding level in Federal and non-Federal funds
> is:

\$ 25,000 \'90 Title III

75,000 \'91 Title III

17,647 State match

10,000 Title IV \"Hold Harmless\"

50,000 Other State funding

[45,000]{.underline} \'91 Appropriation budget line item (ombuds.)

\$222,647 Base State ombudsman funding level

> (Note that the \$20,000 of its FY 1991 elder abuse prevention
> allotment which the State elected to provide to its Ombudsman Program
> is not included in the calculation of the base amount.)
>
> In addition to expending this minimal level of \$222,647, the State
> should use its entire Title VII ombudsman allotment for a fiscal year
> on the Ombudsman Program, as the program is defined in Section 712 of
> the Act. Since Congress transferred this ombudsman line item funding
> from Title III to Title VII in the FY 1993 Appropriation Act and this
> money should not be counted twice in determining the minimum required
> funding level, the State should spend or obligate the difference, or
> increase, between what it expended from its FY 1991 ombudsman line
> item allotment and its current Title VII ombudsman allotment. The
> example State\'s FY 1994 Title VII ombudsman allotment is 51,500,
> which is \$6,500 more than it spent from its FY \'91 appropriation
> ombudsman budget line item. **Thus, for FY 1994, the State should
> expend no less than \$222,647 plus \$6,500, or a total of \$229,147,
> on its Ombudsman Program.** The State has the option of using, or not
> using, any portion of its elder abuse prevention allotment to support
> abuse prevention activities outlined under Section 721 of the Act
> which are conducted by the Ombudsman Program.
>
> **Area Agency Program Funding:** Section 306(e)(11) of the Act states:
>
> \[Area Plans must\] provide assurances that the area agency on aging
> in carrying out the State Long-Term Care Ombudsman program under
> section 307(a)(12), will expend not less that the total amount of
> funds appropriated under this Act and expended by the agency in fiscal
> year 1991 in carrying out such a program under this title\....
>
> Because Area Agencies have no authority over any Older Americans Act
> funds other than those they receive through the intrastate funding
> formula, we have determined that the total amount to be calculated for
> the Area Agency ombudsman maintenance of effort requirement is
> confined to Title III funds received under Section 304(d)(1(D) and
> expended on ombudsman services in FY 1991.
>
> See PCR-94-12 for clarification of the non-supplantation provision in
> Section 705(a)(4) of the Act.

Fernando M. Torres-Gil Date

Assistant Secretary for Aging

[^1]: ^?^ The Older Americans Act Technical Amendments of 1993 delayed
    applicability of certain Title III provisions, including those
    affecting Ombudsman Program funding, and all Title VII provisions
    until FY 1994.