July 29, 2003

					PROGRAM INSTRUCTION

   AOA-PI-03	-06

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 2003 OAA TITLE     III and Title VII Formula Grant Funds

		LEGAL AND RELATED    Section 304(b) of the Older

 REFERENCES:    	 Americans Act of 1965, As Amended

The purpose of this Program Instruction is to notify state agencies on aging that, by August 29, 2003, they must provide to the Administration on Aging (AoA):

	1) the amount, if any, of FY 2003 Title III and/or Title VII funds the state will not use by September 30, 2003, and is 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 Fiscal Year (FFY) 2003, i.e., September 30, 2003. 

Deadline for Obligation of Funds

We would like to remind you that 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, 2003.  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 years for liquidation of Federal funds appropriated during a given fiscal year.

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 2003 funds, it must obligate those funds not later than September 30, 2004.

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 (B, C1, C2, D or E) 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 August 29, 2003. 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 DATES:		   August 29, 2003, 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