Older Americans Act: Title III Funds Not Distributed According to Statute
(Letter Report, 01/18/94, GAO/HEHS-94-37).

The Administration on Aging's (AOA) method of allocating funds under
title III of the Older Americans Act is inconsistent with the law's
basic requirement that funds be distributed to states in a manner
proportionate to their elderly populations.  Funds must be allotted
proportionally among the states except that no state is to receive less
than the minimum set by law.  AOA's current method of computing
allotments ensures that the minimums are met but in a way that fails to
achieve proportionality among states not subject to the minimum grant
requirements.  Among the distorting effects of AOA's method are that the
amounts allotted per elderly person are not equal in similarly populated
states, and states with more rapidly growing elderly populations are
underfunded.  The required method avoids or minimizes both effects.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-94-37
     TITLE:  Older Americans Act: Title III Funds Not Distributed 
             According to Statute
      DATE:  01/18/94
   SUBJECT:  Aid for the elderly
             State-administered programs
             Formula grants
             Population statistics
             Elderly persons
             Appropriated funds
             Grant administration
             Grants to states
             Allotment
             Noncompliance

             
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