1. (a) Allowable program cost.

   1. (1)

      1. (A) The Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services shall pay one hundred percent (100%) of the allowable program cost of the program grant award to an area agency on aging.
      2. (B) The actual payment shall not exceed the total of the grant award or the prorated share of the total available program grant funds.

   2. (2)

      1. (A) No more than eight and one-half percent (8.5%) of the area agency on aging’s grant award may be expended for administrative costs.
      2. (B) Administrative costs include, but are not limited to:

2. (i) Salaries, wages, and fringe benefits for program administrators and staff;

   1. (ii) Consumable office supplies used by program staff;

      1. (iii) Costs incurred in the development, preparation, presentation, management, and evaluation of the program;

         1. (iv) Costs of establishing and maintaining accounting and management information systems;
         2. (v) Costs incurred in the establishment and maintenance of advisory councils, travel of program administrators, and staff;
         3. (vi) Rent, utilities, custodial services, and indirect cost allowable to the program;
         4. (vii) Training of staff and technical assistance to host agencies; and
         5. (viii) Cost of equipment and materials for use by staff and participants performing staff functions and audit services.

      2. (C)

         1. (i) An area agency on aging may lower these costs by assigning participants in the administration of the project provided that the other provisions of this subpart are met.
         2. (ii) In such events, participant wage and fringe benefit costs shall be charged to the cost category of participant wages and fringe benefits.
         3. (iii) However, the cost of travel, supplies, or related costs incurred by participants, if incurred as a program staff member, would be charged to the cost category of administration.

   2. (3)

      1. (A) No less than eighty percent (80%) of the program grant funds may be expended for participant wages and fringe benefits.
      2. (B) Participants' wages are wages paid to participants for their hours of community service employment as defined in this subpart.

   3. (4) Program funds provided to the area agencies on aging under the act that are not budgeted and expended for the cost category of administration or participant wages and fringe benefits may be budgeted and expended for the cost category of other participant costs including, but not limited to:

      1. (A) Providing participant travel and incidentals; and
      2. (B) Providing supportive materials and training.
   4. (5) Any request for or approval of an area agency on aging’s program budget shall be in accordance with this subpart and the division’s established procedures for all grants and area plans.

3. (b) Financial management standards. Each area agency on aging shall establish and maintain a financial management system that meets the standards set forth by the division for all grant funds and audit standards.

   1. (c) Financial reporting requirements. Each area agency on aging shall submit to the division those financial reports that are required by the division for all grants and area plans according to established procedures and deadlines.

      1. (d) Other financial standards and procedures.

   2. (1)

      1. (A) Each area agency on aging shall be subject to the same standards and procedures established by the division for all grants and area plans.

      2. (B) These include, but are not limited to:

         1. (i) Bonding and insurance;
         2. (ii) Project income;
         3. (iii) Property management; and
         4. (iv) Procurement.
   3. (2) The division shall disburse grant funds based on the area agency on aging’s request for funds as provided in the division’s established procedures related to all grants and area plans.

4. (e) Retention of records.

   1. (1) Each area agency on aging shall be responsible for all records, documents, and files required under this subpart.
   2. (2) Retention of and access to those records, reports, documents, and files shall be in accordance with the division’s established policies and procedures for all grants and area plans.

5. (f) Monitoring and reporting program performance requirements.

   1. (1) Each area agency on aging shall monitor and report program performance as required by the division.

   2. (2)

      1. (A) Each area agency on aging shall submit an Older Worker Community Service Employment Program Quarterly Report.
      2. (B) This report shall be prepared for each quarter and shall be submitted to the division no later than the fifteenth of the first month of the following quarter.
      3. (C) The division will provide the report form.
   3. (3) Each area agency on aging shall submit, upon request by the division, any special reports, records, or documents as may be required from time to time.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “9-1-10”