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**DEPARTMENT OF HEALTH & HUMAN SERVICES**                       Office of the Assistant Secretary****

****                                                                                                             Administration on Aging

                                                                                                                     Washington, DC 20201

1111122111

**P****ROGRAM INSTRUCTION**

****AOA-PI-06-04

TO:			STATE AGENCIES ON AGING ADMINISTERING PLANS UNDER

			TITLE III AND TITLE VII OF THE OLDER AMERICANS

			ACT (OAA) OF 1965, AS AMENDED.

SUBJECT:  	Reallotment Procedure for the Federal Fiscal

			Year 2006 OAA****Title III and Title****VII

			Formula Grant Funds

LEGAL AND

RELATED

REFERENCES:	Section 304(b) and Section 703(b) of the

			Older Americans Act of 1965, As Amended

The purpose of this Program Instruction is to notify State agencies on aging that, by September 22, 2006, they must provide to the Administration on Aging (AoA):

1)	the amount, if any, of Federal Fiscal Year (FY) 2006

	Title III and/or Title VII****funds the State will not

	use by September 30, 2006, and will be releasing for

	reallotment; and,

2)	the request for additional Title III and/or Title VII

	funds, if any, which could be obligated by the State

	agency****by the end****of Federal FY 2006, i.e.,

	September 30, 2006.

**Deadline for Obligation of Funds******

****

We would like to remind you that FY 2006 funds must be obligated

by a State during the Federal fiscal year for which they were appropriated; i.e., funds may not be obligated after

September 30, 2006. In addition, we would like you to inform area agencies on aging and the service providers of their responsibility to liquidate obligated funds within two fiscal years after the fiscal year for which these funds were awarded, i.e., this provides a total of three fiscal years (including the year awarded) for liquidation of Federal funds appropriated during a given fiscal year.

**Realloted Funds**

Realloted funds are available for obligation by State agencies during the fiscal year following the fiscal year for which funds were appropriated.  In other words, if a State receives reallotted FY 2006 funds, it must obligate those funds not later than September 30, 2007.

**Release of Unused Funds******

****

State agencies not intending to use the full amount of their Title III or Title VII allotments must submit a statement signed by the authorized State agency official releasing Title III and/or Title****VII funds for reallotment.  This statement must identify from which part of Title III (B, C1, C2, D or E) or Title VII (Ombudsman or Elder Abuse) the funds are being released.  If a State releases funds for reallotment, AoA will issue a revised Grant Award reflecting the decrease.

**Request for Funds******

****

If additional funds can be utilized, State agencies should submit a brief statement justifying the need for additional funds signed by the appropriate State agency official.  The statement must identify the Parts of Title III and/or VII for which funds are being requested.

States must submit an original and one copy of their requests to their AoA Regional Administrator by September 22, 2006. States are reminded that realloted funds are one-time awards and that there is no assurance that the State will receive additional realloted funds in future years.  Also, realloted funds do not affect a State’s allocation of funds in future years.

DUE DATE:			September 22, 2006, for submission to

				Regional Administrators on Aging, DHHS

				Regional Offices

INQUIRIES:  		Inquiries should be addressed to 

		  		Regional Administrators on Aging, DHHS

				Regional Offices

					Josefina G. Carbonell

					Assistant Secretary for Aging