Title III Administrative and Financial Requirements Policy #21: Equipment, Supplies, Maintenance, and Buildings, Alterations or Renovations

This content is part of a public comment period. For more information, refer to Minnesota Board on Aging – State Plan on Aging.

Note: We updated content on this page on June 27, 2025. Changed content is indicated with [add] and [delete].

Authority Reference	OAA Section 312 45 CFR Part 1321.9(c)(2)(xv) 2 CFR Part 200 45 CFR Part 75
Operating Category	Title III Administrative and Financial Requirements

Policy

1. Buildings and equipment, where costs incurred for altering or renovating, utilities, insurance, security, necessary maintenance, janitorial services, repair, and upkeep (including Federal property unless otherwise provided for) to keep buildings and equipment in an efficient operating condition, including acquisition and replacement of equipment, may be an allowable use of grant funds, and the following conditions apply:

A. Costs are only allowable to the extent not payable by third parties through rental or other agreements; and

B. Costs must be allocated proportionally to the benefiting grant program.

2. Consistent with 2 CFR 200.1, equipment purchases are allowable up to $10,000. For equipment purchases in excess of $10,000, AAAs must seek a waiver consistent with MBA Operations Policy #9: Waiver Requests.

[add] A. Equipment

i. Consistent with 2 CFR 200.313, if a service provider no longer needs the purchased equipment and the fair market value of the equipment is greater than $10,000, the AAA which approved the equipment purchase must seek disposition instructions from the MBA. The MBA must respond to the request for disposition instructions within 120 days of receiving the request.

ii. Except as provided in 2 CFR 200.312, or if the Federal agency or MBA fails to provide requested disposition instructions within 120 days, items of equipment with a current fair market value in excess of $10,000 (per-unit) may be retained or sold by the recipient or subrecipient. However, the Federal agency is entitled to an amount calculated by multiplying the percentage of the Federal agency's contribution towards the original purchase by the current market value or proceeds from the sale. If the equipment is sold, the Federal agency or pass-through entity may permit the recipient or subrecipient to retain, from the Federal share, $1,000 of the proceeds to cover expenses associated with the selling and handling of the equipment.

B. Supplies [end add]

[delete] 3. [end delete] [add]. i. [end add] Supplies include computing devices and the threshold for computing devices is $10,000.

[add] ii. Consistent with 2 CFR 200.314, title to supplies acquired under the Federal award will vest upon acquisition in the recipient or subrecipient. When there is a residual inventory of unused supplies exceeding $10,000 in aggregate value at the end of the period of performance, and the supplies are not needed for any other Federal award, the AAA may retain or sell the unused supplies. Unused supplies means supplies that are in new condition, not having been used or opened before. The aggregate value of unused supplies consists of all supply types, not just like-item supplies. The Federal agency or pass-through entity is entitled to compensation in an amount calculated by multiplying the percentage of the Federal agency's or pass-through entity's contribution towards the cost of the original purchase(s) by the current market value or proceeds from the sale. If the supplies are sold, the Federal agency or pass-through entity may permit the recipient or subrecipient to retain, from the Federal share, $1,000 of the proceeds to cover expenses associated with the selling and handling of the supplies. [end add]

[delete] 4. [end delete] [add] 3. [end add] If an AAA purchases supplies or equipment for a service provider, the AAA may – at their discretion - recover remaining supplies and useful equipment from the service provider when the service provider no longer provides Title III services.

[delete] 5. [end delete] [add] 4. [end add] Construction and acquisition activities are only allowable for multipurpose senior centers.

A. In addition to complying with the requirements of the Act, as set forth in section 312, as well as with all other applicable Federal laws, the AAA must file a Notice of Federal Interest in the appropriate official records of the jurisdiction where the property is located at the time of acquisition or prior to commencement of construction, as applicable.

B. The Notice of Federal Interest must indicate that the acquisition or construction, as applicable, has been funded with an award under Title III of the Act, that the requirements set forth in section 312 of the Act apply to the property, and that inquiries regarding the Federal Government’s interest in the property should be directed in writing to the Assistant Secretary for Aging;

C. Consistent with 45 CFR 75.318, when real property is no longer needed for its original purpose, the AAA must work through MBA to obtain disposition instructions from the Assistant Secretary for Aging. The instructions must provide for one of the following alternatives:

· (1) Retain title after compensating the HHS awarding agency. The amount paid to the HHS awarding agency will be computed by applying the HHS awarding agency's percentage of participation in the cost of the original purchase (and costs of any improvements) to the fair market value of the property. However, in those situations where the AAA is disposing of real property acquired or improved with a Federal award and acquiring replacement real property under the same Federal award, the net proceeds from the disposition may be used as an offset to the cost of the replacement property.

· (2) Sell the property and compensate the HHS awarding agency. The amount due to the HHS awarding agency will be calculated by applying the HHS awarding agency's percentage of participation in the cost of the original purchase (and cost of any improvements) to the proceeds of the sale after deduction of any actual and reasonable selling and fixing-up expenses. If the Federal award has not been closed out, the net proceeds from sale may be offset against the original cost of the property. When the AAA is directed to sell property, sales procedures must be followed that provide for competition to the extent practicable and result in the highest possible return.

· (3) Transfer title to the HHS awarding agency or to a third party designated/approved by the HHS awarding agency. The AAA is entitled to be paid an amount calculated by applying the non-Federal entity's percentage of participation in the purchase of the real property (and cost of any improvements) to the current fair market value of the property.

[delete] 6. [end delete] [add] 5. [end add] Altering and renovating activities are allowable for facilities providing direct services (supportive services, nutrition services, evidence-based disease prevention and health promotion services, and family caregiver support services) subject to Federal grant requirements under 2 CFR part 200 and 45 CFR part 75; and

[delete] 7. [end delete] [add] 6. [end add] Altering and renovating activities are allowable for facilities used to conduct area plan administration activities, subject to Federal grant requirements under 2 CFR part 200 and 45 CFR part 75.

[delete] 8. [end delete] [add] 7. [end add] Given the scarcity of Older Americans Act resources and the high demand for services, AAAs are strongly encouraged to spend resources on services rather than facilities.

Procedures

1. AAAs planning to spend grant funds for buildings, alterations or renovations, maintenance, and equipment must include only allowable costs in their Area Plan budget as part of the Area Plan submission process (or through an amendment process should this planned expenditure arise during another point of the year).

A. AAAs proposing to spend Older Americans Act resources for these purposes must make a compelling case as to why such expenditures are needed and how the expenditures will assist the AAA in serving older adults with greatest social needs and/or greatest economic needs. This can be done through a letter to the Executive Director explaining why the proposed expenditures are needed; how the proposed expenditures will assist the AAA in serving adults with greatest social needs and/or greatest economic needs; and how the expenditures will help improve future efforts to serve older adults in the Planning and Service Area.

B. AAAs must also demonstrate how the following conditions would be met:

· i. Costs are only allowable to the extent not payable by third parties through rental or other agreements; and

· ii. Costs must be allocated proportionally to the benefiting grant program.

C. If an unplanned need for purchase of equipment emerges during the Area Plan year, the AAA should communicate that to MBA.

2. If the AAA wishes to purchase equipment for amounts greater than $10,000, the AAA must submit a waiver request via [add] Foundant [end add] [delete] the Area Plan Inbox [end delete] for review. The request should include the following information:

A. AAA name

B. service provider

C. Funding source

D. Funding amount

E. Description of equipment to be purchased

F. An explanation of why the purchase is necessary.

3. AAAs are encouraged to use State of Minnesota resources for equipment and supply purchases, including the following:

A. Use of Targeted Group (TG), Economically Disadvantaged (ED) and Veteran Owned (VO) businesses for purchases up to $100,000. See the State of Minnesota's Certified TG/ED/VO Business Directory for more information.

B. Use of the State of Minnesota’s Cooperative Purchasing Venture process for goods, certain services, and utilities. See the State of Minnesota's Cooperative Purchasing Venture website for more information.

4. In the case of construction or acquisition of a building to be used as a multipurpose senior center, for which a Notice of Federal Interest is required to be filed as outlined above, the AAA must provide a copy of the filed notice to MBA.