tion; and liability and other insurance protection. Costs of construction and major renovations are not matchable as services. Appropriate distribution of costs is necessary when other agencies use such facilities for the provision of their services, such as in comprehensive neighborhood service centers.

(k) Costs of consultant services (see § 222.61).

(1) Costs of providing home-delivered meals, but not including the raw food cost involved.

or

(m) Costs incurred on behalf of an eligible person for guardianship commitment (e.g., expenditures for court costs, attorney's fees and guardianship, and other costs attendant upon securing protective services).

(n) Costs of establishing and operating a continuing program of public information specifically designed to help assure that the services of the agency are known to all recipients, and to potential applicants and recipients (if covered by the State plan) who may need them.

(0) Costs of public liability and other insurance protection necessary for the proper and efficient administration of the service program.

(p) Costs of chore services but excluding any items included in the individual's money grant.

§ 222.90 Rates of Federal

participation.

financial

(a) Federal financial participation at the rate of 75 percent (see also paragraph (c) of this section) is available for the service costs identified in §§ 222.88 and 222.89, and training and staff development, provided that the State plan meets all of the requirements of Subparts A and B of this part.

(b) The total costs of salaries and travel of workers carrying responsibility for both services and eligibility functions and supervisory costs related to such workers, and all or part of the salaries of supporting secretarial, stenographic, or clerical staff depending on whether they work full-time or part-time for the workers specified in this paragraph (b), are subject to the 50 percent rate of Federal financial participation.

(c) Federal financial participation at the 50-percent rate is available in the costs of the following activities that are separate from but relevant to the costs of services:

(1) Salaries and travel of staff primarily engaged in determining eligibil

ity and their supervisors and supporting staff (clerks, secretaries, stenographers, etc.).

(2) Salaries and travel of staff primarily engaged in developing eligibility provisions and the determination processes (either at the State or local agency level).

(3) Expenses related to such staff, and for staff specified in paragraph (b) of this section, such as for communication, equipment, supplies and office space.

(4) Other expenses of administration of services not specified at the 75-percent rate.

§ 222.91

Donated private funds.

(a) Donated private funds for services may be considered as State funds in claiming Federal reimbursement where such funds are:

(1) Transferred to the State or local agency and under its administrative control; and

(2) Donated on an unrestricted basis (except that funds donated to support a particular kind of activity, e.g., homemaker services, or to support a particular kind of activity in a named community, are acceptable provided the donating organization is not the sponsor or operator of the activity being funded).

(b) Donated private funds for services may not be considered as State funds in claiming Federal reimbursement where such funds are:

(1) Contributed funds which revert to the donor's facility or use.

(2) Donated funds which are earmarked for a particular individual or for members of a particular organization.

in the planning, administration, and delivery of health, social, and rehabilitation services in which the duties of the position are composed of tasks that are an integral part of the agency's service responsibilities to people and that can be performed by persons with less than a college education, by high school graduates, or by persons with little or no formal education.

(b) "Full-time or part-time employment" means that the person is employed by the agency and his position is incorporated into the regular staffing pattern of the agency. He is paid a regular wage or salary in relation to the value of services rendered and time spent on the job.

(c) The term "Volunteer" describes a person who contributes his personal service to the community through the agency's human services program. He is not a replacement or substitute for paid staff but adds new dimensions to agency services, and symbolizes the community's concern for the agency's clientele.

(d) "Partially paid volunteers" means volunteers who are compensated for expenses incurred in the giving of services. Such payment does not reflect the value of the services rendered, or the amount of time given to the agency.

§ 225.2 State plan requirements.

Effective July 1, 1969, the State plan for OAA, AFDC, AB, APTD, AABD or MA under title I, IV (part A), X, XIV, XVI or XIX of the Social Security Act or for CWS under title IV (part B) of the Act (see 42 CFR Part 201), or for MCH and CC under title V of the Act (see 42 CFR Part 200), must:

(a) Provide for the training and effective use of subprofessional staff as community service aides through parttime or full-time employment of persons of low income and, where applicable, of recipients and for that purpose will provide for:

(1) Such methods of recruitment and selection as will offer opportunity for full-time or part-time employment of persons of low income and little or no formal education, including employment of young and middle aged adults, older persons, and the physically and mentally disabled, and in the case of a State plan under title I, IV (part A), X, XIV, XVI, or XIX of recipients; and will provide that such subprofessional positions are subject to merit system requirements, except where special exemption is ap

proved on the basis of a State alternative plan for recruitment and selection among the disadvantaged of persons who have the potential ability for training and job performance to help assure achievement of program objectives;

(2) An administrative staffing plan to include the range of service personnel of which subprofessional staff are an integral part;

(3) A career service plan permitting persons to enter employment at the subprofessional level and, according to their abilities, through work experience, preservice and in-service training and educational leave with pay, progress to positions of increasing responsibility and reward;

(4) An organized training program, supervision, and supportive services for subprofessional staff; and

(5) Annual progressive expansion of the plan to assure utilization of increasing numbers of subprofessional staff as community service aides, until an appropriate number and proportion of subprofessional staff to professional staff are achieved to make maximum use of subprofessionals in program operation.

(b) Provide for the use of nonpaid or partially paid volunteers in providing services and in assisting any advisory committees established by the State agency and for that purpose provide for:

(1) A position in which rests responsibility for the development, organization, and administration of the volunteer program, and for coordination of the program with related functions;

(2) Methods of recruitment and selection which will assure participation of volunteers of all income levels in planning capacities and service provision;

(3) A program for organized training and supervision of such volunteers;

(4) Meeting the costs incident to volunteer service and assuring that no individual shall be deprived of the opportunity to serve because of the expenses involved in such service; and

(5) Annual progressive expansion of the numbers of volunteers utilized, until the volunteer program is adequate for the achievement of the agency's service goals.

ployment and other use of subprofessional staff and volunteers is available at the rates and under related conditions established for training, services, and other administrative costs under the respective titles.

PART 226-PURCHASE OF SERVICES UNDER PUBLIC ASSISTANCE PROGRAMS

Sec. 226.1 226.2

State plan requirements.

Federal financial participation. AUTHORITY: The provisions of this Part 226 issued under sec. 1102, 49 Stat. 647; 42 U.S.C. 1302.

§ 226.1 State plan requirements.

(a) A State plan under Title I, IV— Part A, X, XIV, or XVI of the Social Security Act, which authorizes the provision of services by purchase from other State or local public agencies, from nonprofit or proprietary private agencies or organizations, or from individuals, must, with respect to services which are purchased:

(1) Include a description of the scope and types of services which may be purchased under the State plan;

(2) Provide that the State or local agency will retain continuing, basic responsibility for determination as to:

(i) The eligibility of individuals for services; and

(ii) The authorization, selection, quality, effectiveness, and execution of a plan or program of services suited to the needs of an individual or of a group of individuals;

(3) Provide that the State agency will work with established and newly organized suppliers of purchased services to provide consultation and technical assistance, to assure satisfactory performance in providing such services, including periodic review, and to develop new and more effective approaches and methods of delivering purchased services;

(4) In the case of services authorized under the Vocational Rehabilitation Act, provide that such services will be obtained from the State vocational rehabilitation agency when that agency is willing and able to provide them, and that such services will be purchased from another source only when they are not obtainable from the State vocational rehabilitation agency;

(5) Assure progressive development of arrangements with a number and variety of agencies and other sources which meet applicable standards as to quality of services and rates of payment, with the aim of providing opportunities for individuals to exercise choice with regard to the source of purchased service;

(6) Assure that the sources from which services are purchased are licensed, approved as meeting State licensing standards, meet applicable accrediting standards, or in the absence of liccnsing or accrediting standards, meet standards or criteria established by the State agency to assure quality of service, including standards appropriate for services provided by new self-help groups and other organizations for which licensing or accrediting do not exist; and

(7) (i) Provide for the establishment of rates of payment for such services which:

(a) Do not exceed the amounts reasonable and necessary to assure quality of services, and in the case of services purchased from other public agencies, are in accordance with the cost reasonably assignable to such services; and

(b) Whenever possible are based on consideration of full cost of the serv

ices;

(ii) Describe the methods used in establishing and maintaining such rates; and

(iii) Indicate that information to support such rates of payment will be maintained in accessible form.

(b) In the case of services provided, by purchase, as emergency assistance to needy families with children under Title IV-Part A, the State plan may provide for an exception from the requirements in subparagraphs (5), (6), and (7) of paragraph (a) of this section, but only to the extent and for the period necessary to deal with the emergency situation.

(c) All other requirements governing the State plans listed in paragraph (a) of this section are applicable to the purchase of services, including:

(1) General provisions such as those relating to single State agency, fair hearings and grievances, safeguarding of information, civil rights, and financial control and reporting requirements; and

(2) Specific provisions as to the programs of services such as those on re

quired services, State-wideness and maximum utilization of other agencies providing services, to the extent feasible. [34 F.R. 1243, Jan. 25, 1969]

§ 226.2 Federal financial participation. (a) Federal financial participation is available in expenditures for purchase of services under the State plans listed in § 226.1 to the extent that payment for purchased services is in accordance with rates of payment established by the State which do not exceed the amounts reasonable and necessary to assure quality of service and, in the case of services purchased from other public agencies, the cost reasonably assignable to such services.

(b) Services which may be purchased with Federal financial participation are those for which Federal financial participation is otherwise available under Title I, IV-Part A, X, XIV, or XVI of the Social Security Act and which are included under the approved State plan.

(c) Payments for subsistence (including payments for foster care), other items of individual or family need normally included in assistance payments, and medical or remedial care or services are not considered to be service costs. However, Federal financial participation is available in expenditures for the purchase of services which include subsistence or medical care items (as contrasted with payments made to provide financial or medical assistance), such as:

(1) Subsistence and medical care when they are included as an essential component of the furnishing of services in an institutional setting and cannot be separately identified, such as in a comprehensive rehabilitation center; and

(2) Under Title IV-Part A of the Act, medical care, for such items as:

(i) Family planning services; and

(ii) Medical examinations required for child care staff, when not otherwise available.

(For details as to these and other special conditions, see the pertinent regulations, such as those for emergency assistance to needy families with children, § 233.120 of this chapter, and services to children and families under Title IV-Part A of the Act, to be published at a later date.) [34 F.R. 1244, Jan. 25, 1969]

233.110 233.120

Factors specific to AFDC.

Dependent children of unemployed

fathers.

AFDC foster care.

Emergency assistance to needy families with children.

233.140 Expiration of community work and training program.

233.145 Expiration of medical assistance programs under titles I, IV-A, X, XIV and XVI of the Social Security Act.

AUTHORITY: The provisions of this Part 233 issued under sec. 1102, 49 Stat. 647; 42 U.S.C. 1302, unless otherwise noted.

§ 233.10 General provisions regarding coverage and eligibility.

(a) State plan requirements. A State plan under title I, IV-A, X, XIV, or XVI, of the Social Security Act must:

(1) Specify the groups of individuals, based on reasonable classifications, that will be included in the program, and all the conditions of eligibility that must be met by the individuals in the groups. Under this requirement:

(i) States have substantial latitude and corresponding responsibility for determining the coverage, nature and scope of their public assistance programs. Although the public assistance titles define the coverage in which the Federal Government will participate financially, a State may provide coverage on a broader or more limited basis. However, it may not impose any eligibility condition that is prohibited under the Social Security Act.

(ii) The groups selected for inclusion in the plan and the eligibility conditions imposed must not exclude individuals or groups on an arbitrary or unreasonable basis, and must not result in inequitable treatment of individuals or groups in the light of the provisions and purposes of the public assistance titles of the Social Security Act.

(iii) There must be clarity as to what

groups are included in the plan, and which are within, and which are outside, the scope of Federal financial participation.

(iv) Eligibility conditions must be applied on a consistent and equitable basis throughout the State.

(v) A plan under title XVI must have the same eligibility conditions and other requirements for the aged, blind, and disabled, except as otherwise specifically required or permitted by the Act.

(vi) Eligibility conditions or agency procedures or methods must not preclude the opportunity for an individual to apply and obtain a determination of eligibility or ineligibility.

(vii) Methods of determining eligibility must be consistent with the objective of assisting all eligible persons to qualify.

(2) Provide that the State agency will establish methods for identifying the expenditures for assistance for any groups included in the plan for whom Federal financial participation in assistance may not be claimed.

(3) In addition, a State plan under title IV-A, X, XIV, or XVI of the Act, must: Provided that no aid or assistance will be provided under the plan to an individual with respect to a period for which he is receiving aid or assistance under a State plan approved under any other cf such titles or under title I of the Act.

(b) Federal financial participation. (1) The provisions which govern Federal financial participation in assistance payments are set forth in the Social Security Act, throughout this chapter, and in other policy issuances by the Secretary. Where indicated, State plan provisions are prerequisite to Federal financial participation with respect to the applicable groups and payments. In general, State plan provisions on need also determine the limits of Federal financial participation. Questions of Federal financial participation are raised regarding assistance payments in which the State refuses to participate because of the failure of a local authority to apply State requirements. With these exceptions, the Federal agency does not ordinarily determine, for purposes of financial participation, whether State plan provisions which are not required by the Federal Act, regulations, or policies have been met.

(2) The following is a summary statement regarding the groups for whom

(2) Deprived of parental support or care by reason of the death, continued absence from the home, or physical or mental incapacity of a parent, or unemployment of a father; and

(3) Living in the home of a parent or of certain relatives specified in the Act, or in foster care under certain conditions.

(b) The parent or other caretaker relative of a dependent child and, in certain situations, the parent's spouse.

(iii) AB-for needy individuals under the plan who are blind.

(iv) APTD-for needy individuals under the plan who are 18 years of age or older and permanently and totally disabled.

(v) AABD-for needy individuals under the plan who are aged, blind, or 18 years of age or older and permanently and totally disabled.

(3) Federal financial participation is available for assistance payments for the entire month if for any portion of the month the individual met all of the eligibility conditions imposed by Federal requirements.

(4) Federal financial participation is available in assistance payments which are continued, in accordance with the State plan, for a temporary period during which the effects of an eligibility condition are being overcome, e.g., blindness in AB, disability in APTD, physical or mental incapacity, continued absence of a parent, or unemployment of a father in AFDC. [36 F.R. 3866, Feb. 27, 1971]

§ 233.20 Need and amount of assistance.

(a) Requirements for State Plans. A State Plan for OAA, AFDC, AB, APTD or AABD must, as specified below:

(1) General. Provide that the determination of need and amount of assistance for all applicants and recipients will be made on an objective and equitable basis and all types of income will be taken into consideration in the same way,