**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, 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

  17,647State match

  10,000Title IV "Hold Harmless"

  50,000Other State funding

45,000'91 Appropriation budget line item (ombuds.)

$222,647Base 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-GilDate

Assistant Secretary for Aging

     �  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.