In fiscal year 1999, about $785 million in Title III nutrition and support  services funds was distributed to 56 states. States may then need to  budget their spending on the basis of funding projections. The remaining two states did not specify how they limited the amount of  area-agency and/or local-service-provider carryover. Conclusion

At the present time, the buildup and use of Title III-C carryover funds to  support elderly nutrition services does not appear to be a widespread  problem. However, AoA does not monitor the states’ buildup of carryover  funds. As a result, the agency has little assurance that it could identify meal  service problems that could emerge in the future. Recommendation for Executive Action

Although the use of carryover funds to support nutrition services for the  elderly does not currently appear to be creating a serious meal service  problem nationwide, we recommend that the Secretary, Department of  Health and Human Services, direct the Assistant Secretary for Aging,  Administration on Aging, to monitor the levels of unspent Title III-C funds  that states carry over to the succeeding fiscal year and work with the states  that build up substantial amounts of carryover funds to develop a strategy  to spend down such funds in a manner that minimizes the potential  disruption of meal services for the elderly.
Why GAO Did This Study

Under Title III of the Older Americans Act, the Administration on Aging (AoA) distributes grants to states on the basis of their proportional share of the total elderly population in the United States. These grants are then disbursed to more than 600 area agencies nationwide, and are used to fund group and in-home meals, as well as support services, including transportation and housekeeping. The grants are further subdivided by these agencies to more than 4,000 local service providers. AoA requires that states obligate these funds by September 30 of the fiscal year in which they are awarded. Also, states must spend this money within two years after the fiscal year in which it is awarded. During this time AoA does not limit or monitor the amount of unspent funds that states may carry over to the succeeding fiscal year. GAO examined whether states were using Title III carryover funds to expand their meal service programs for the elderly beyond a level sustainable by their annual allotments alone.

What GAO Found

GAO found that the buildup and use of Title III carryover funds to support elderly nutrition services does not appear to be a widespread problem. However, AoA does not monitor the states' buildup of carryover funds. As a result, the agency has little assurance that it could identify meal service problems that could emerge in the future.