Connecticut Administrative Code › Title 17a - Social and Human Services and Resources › 306 - Community Services Policy Manual for Title III Programs of the Older Americans Act › Manual of Fiscal Policies for Title III Programs of the Older Americans Act › Section 17a-306-29 - General program income

Current through July 10, 2024
The purpose of this section is to set forth the Connecticut
				  Department on Aging's fiscal policies in the definition, treatment and use of
				  program income and interest earned.
(a)
Acceptable Methods for General
				Program Income
For Title III-B and C of the Older Americans Act, area
				  agencies on aging are authorized to observe the cost sharing or matching
				  alternative. Under this alternative, the income is used for allowable costs of
				  the project or program but, in this case, the costs borne by the income may
				  count toward satisfying a cost-sharing or matching requirement. Therefore, the
				  maximum percentage of Federal participation is applied to total allowable costs
				  and third-party in-kind contributions. The income shall be used for current
				  costs unless the granting agency authorizes deferral to a later period.
(b)
Application to General
				Program Income of Profit from Fundraising, Fee-for Service, Entrepreneurial
				Opportunities and Ventures
Where income is derived from activities funded partially or
				  completely by a grant or counted as a direct cost toward meeting cost sharing
				  or matching requirement, it shall be considered program income.
(c)
Treatment of Interest
				Earned on Advances
Provided an area agency on aging doesn't overrequest funds in
				  violation of Treasury Circular 1075, interest earned on Title III funds passed
				  through the Connecticut Department on Aging is the area agency on aging's own
				  funds. Such funds may be used as cash match, to expand any approved program or
				  in furtherance of any activity of benefit to the elderly and approved by its
				  Board of Directors and contained in the area plan.
(d)
Allowable Investment and Custody
				Policies
The investment of available Federal or state funds must be
				  directed by two principles:
(1) to
				protect all funds received from unreasonable loss or diminished value,
				and
(2) to earn a reasonable return
				on funds not expected to be disbursed immediately. In furtherance of such
				principles, the following investments are authorized:
(A) Any interest bearing account that is
				fully insured by the Federal Deposit Insurance Corporation.
(B) NOW accounts.
(C) Treasury notes, bills and bonds,
				specifically, participation in funds wholly backed by U.S. Treasury notes,
				bills, and bonds.
(D) Certificates
				of Deposits (CDs) purchased from Connecticut chartered banks. CDs must be Any
				interest bearing account that is fully insured by the Federal Deposit Insurance
				Corporation.
(E) Participation in a
				cash management service administered by a Connecticut-chartered bank, which
				assures that all funds so invested are:
(i)
				fully secured by direct obligations of the United States government,
(ii) fully insured by the Federal Deposit
				Insurance Corporation.