August 12, 2002


                                    PROGRAM INSTRUCTION



TO:                              STATE AGENCIES ON AGING ADMINISTERING


            THE OLDER AMERICANS ACT (OAA) OF 1965,

                                    AS AMENDED.


SUBJECT:                   Reallotment Procedure for 2002 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 30, 2002, they must provide to the Administration on Aging (AoA):


1) the amount, if any, of FY 2002 Title III and/or Title VII funds the state will not use by September 30, 2002, 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, 2002.  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 2002 funds, it must obligate those funds not later than September 30, 2003.



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 30, 2002. 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 30, 2002, 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