1. (a)

   1. (1) Area agencies on aging must award a contract to service providers for the provision of services funded with Division of Aging, Adult, and Behavioral Health Services of the Department of Human Services general and special state revenues.

   2. (2) The programs listed below are exempt from this policy:

      1. (A) Access/advocacy programs including:

2. (i) Information and referral;

   1. (ii) Case management assessments;

      1. (iii) Outreach; and

         1. (iv) Ombudsman;
      2. (B) Senior employment programs; and
      3. (C) Volunteer programs.

3. (b) Direct services shall not be provided by the area agency on aging without permission from the division.

   1. (c) Area agencies on aging requesting to provide direct services must meet the following criteria:
   2. (1) The area agency on aging must demonstrate that it has actively encouraged direct service providers in the PSA to apply for funding;
   3. (2) The area agency on aging must document that attempts have been made to develop and encourage the establishment of service providers in the PSA if there is a limited number as determined by the division in the area; and

   4. (3) The area agency on aging must provide justification for the request to provide direct services which will include the following:

      1. (A) That the services and/or components are not duplicated by an existing agency;
      2. (B) That there is no conflict of interest in the provision of direct services by the area agency on aging;
      3. (C) That the area agency on aging can demonstrate that it can provide the services more economically and effectively than any other provider in the area;
      4. (D) That the area agency on aging can ensure that the direct provision of services will not jeopardize the area agency on aging’s ability to perform its other responsibilities;
      5. (E) That the area agency on aging can demonstrate it is in the best interest of older individuals in the area that the service be provided directly; and

      6. (F) That the area agency on aging can demonstrate that direct provision of services is necessary to ensure that an adequate supply of services is available.

         1. (d)
   5. (1) Area agencies on aging must meet the criteria above to request permission to provide direct services.
   6. (2) However, meeting these conditions will not guarantee the approval of the request by the division.

Codification Notes: “PSA” means public service area.