More Specific Guidance and Closer Monitoring Needed To Get More From Funds Spent on Social Services for the Elderly

GAO examined the administration of social services subgrants and contracts awarded under the Older Americans Act to determine how well the State and area agencies on aging are coordinating and managing numerous Federal programs which could be used to serve the elderly. Under the Act's social services program, these agencies provide to the elderly a broad array of social services, such as transportation, homemaker services, and information/referral services. The area agencies are responsible for obtaining these services, usually through subgrants and contracts with service providers. Federal funds for the program are distributed to each State on a formula grant basis upon the Administration on Aging's (AOA) approval of the State's or area's plan.

GAO believes that better monitoring and management controls are needed at both the State and area agency levels to assure that subgrants and contracts to service providers are being managed efficiently. In a review of 6 State agencies on aging and 11 area agencies, GAO found that only 1 of the area agencies had emphasized the use of the funds to attract needed outside resources in accordance with congressional expectations. Other management weaknesses attributable to a lack of specific instructions were found. A general area agency practice of compensating service providers based on costs claimed, regardless of the services provided, often resulted in compensation for the total agreement before all the service objectives had been accomplished. Area agencies did not spend significant portions of their funds during the year for which the funds had been allocated. GAO believes that the lack of specific instructions limits the effectiveness of evaluations of area operations and the provision of appropriate technical assistance. GAO found a lack of monitoring and enforcement at area agencies in all six States reviewed. GAO also found a lack of compliance with regulations on: (1) the prohibition against denying services based on a person's income or charging the elderly for services; and (2) the requirement to spend 50 percent of each area agency's allocation on national priority services. GAO also believes that improvements are needed in AOA and State agency accountability, perhaps through performance reports.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Robert A. Peterson Team: General Accounting Office: Human Resources Division Phone: (202) 275-6207