tain meals free of charge if the participant decides he is unable to pay for such meals. No individual shall be denied participation in the nutrition program because of the inability to pay all or part of the cost of the meals served.

(c) Suggested contribution schedules shall in no case be used as means tests to determine the eligibility of individuals to participate in the nutrition project. (d) Methods of receiving contributions from individuals shall be handled in such a manner so as not to differentiate among individuals' contributions publicly. (e) Recipients of grants or contracts under this part will accept food stamps from participants as contributions for meals delivered to individuals' homes. § 909.41

Food stamps and donated foods.

The State plan shall provide that recipients of grants or contracts under this part will, to the maximum extent feasible, provide for the certification for, and the distribution of, food stamps and U.S. Department of Agriculture donated foods and information relative to food stamps and donated foods to persons eligible for such programs at all major congregate meal sites. Where possible, the costs incurred by the project in administering these programs will be reimbursed by the State agencies administering the donated food and food stamp programs. § 909.42 Confidentiality.

The State plan shall provide that each recipient of a grant or contract assure that no personal information obtained from an individual in conjunction with the project shall be disclosed in a form in which it is identified with him, without written consent of the individual concerned.

§ 909.43 Training of personnel.

The State plan shall provide that each recipient of a grant or contract under this part provide for such training as may be necessary to enable personnel providing services under the project to administer projects in accordance with the purposes of this Act. All such training must be in conformance with training standards prescribed by the Social and Rehabilitation Service in program guidelines, and include attendance at training specifically provided for by the Social and Rehabilitation Service with regard to this program.

§ 909.44 Project objectives.

The State plan shall provide that each recipient of a grant or contract will establish measurable program objectives for its nutrition and social service activities and will monitor on a regular basis its progress against such objectives. § 909.45

Evaluation.

The State plan shall provide that recipients of grants or contracts will coop. erate and assist in efforts to evaluate the effectiveness, feasibility, and cost of the nutrition projects.

The State plan shall provide that each recipient of a grant or contract conduct ongoing public information activities designed specifically to inform target group eligible individuals in the project area of the services of the project.

The State plan shall provide that each recipient of a grant or contract will keep such records and make such reports in such form and containing such information as may be required in guidelines issued by the Social and Rehabilitation Service.

§ 909.48 State and local standards.

The State plan shall provide that recipients of grants or contracts will operate fully in conformance with all applicable State and local standards, including health and safety standards, prescribed in law or regulations.

§ 909.49 Purchase of goods and services.

(a) None of the provisions of this part shall be construed to prevent a recipient of a grant or contract from entering into an agreement, subject to the approval of the State agency in accordance with guidelines issued by the Social and Rehabilitation Service, with profitmaking organizations to carry out activities under a project.

(b) The State plan shall provide that recipients of project grants or contracts must assure that costs for goods and services do not exceed the amounts reason

able and necessary to assure quality and that the sources from which goods or services are purchased meet applicable State and local laws and standards, and all provisions of this part.

(c) The State plan shall provide that recipients of grants or contracts obliged by State or local law to employ competitive bidding or other procedures for purchases shall employ such procedures in purchases for the project. Other recipients of grants or contracts shall employ purchase procedures prescribed for projects by the State agency.

SUBPART FALLOTMENT OF FUNDS

§ 909.50 Allotment formula.

The funds appropriated pursuant to section 708 of the Act for any fiscal year shall be allotted among the States in the following manner:

(a) From the sums appropriated for any fiscal year under section 708 of the Act, each State shall be allotted an amount which bears the same ratio to such sum as the population aged 60 or over in such State bears to the population aged 60 or over in all States, except that:

(1) No State shall be allotted less than one-half of 1 per centum of the sum appropriated for the fiscal year for which the determination is made; and

(2) Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands shall each be allotted an amount equal to one-fourth of 1 per centum of the sum appropriated for the fiscal year for which the determination is made. For the purpose of the exception contained in this paragraph, the term "State" does not include Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands.

(b) The number of persons aged 60 or over in any State and for all States shall be determined by the Secretary on the basis of the most satisfactory data available to him.

The amount of any State's allotment under § 909.50 of any fiscal year which the Secretary determines will not be required for that year shall be reallotted, from time to time and on such dates during such year as the Secretary may fix, to other States in proportion to the original allotments to such States under § 909.50 for that year, but with such proportionate amount for any other State being reduced to the extent it exceeds the sum the Secretary estimates such State needs and will be able to use for such year; and the total of such reductions shall be similarly reallotted among the States whose proportionate amounts were not so reduced. Such reallotments shall be made on the basis of the State plan so approved, after taking into consideration the population aged 60 or over. Any amount reallotted to a State under this subsection during a year shall be deemed part of its allotment under § 909.50 for that year.

§ 909.52 Withholding of funds.

If the Secretary finds that any State has failed to qualify under the State plan requirements of section 705 of the Act, the Secretary shall withhold the allotment of funds to such State referred to in § 909.50.

§ 909.53 Disbursement of withheld allotment.

The Secretary, after giving the State reasonable opportunity to qualify, shall disburse the funds so withheld directly to any public or private nonprofit institution or organization, agency or political subdivision of such State submitting an approved plan in accordance with the provisions of this part, including the requirement that any such payment or payments shall be matched in the proportion specified in § 909.57 for such State, by funds or in kind resources from non-Federal sources.

§ 909.54 Payments.

Payments under title VII of the Act may be made (after necessary adjustment on account of previously made overpayments) in advance or by way of reimbursement, and in such installments, as the Secretary may determine. $909.55 Obligation of allotments.

Allotments of funds made available under title VII which are not obligated and expended prior to the beginning of the fiscal year succeeding the fiscal year for which such funds were appropriated shall remain available for obligation and expenditure during such succeeding fiscal year.

$909.56 Audit.

The State plan shall provide that all fiscal transactions by the State agency and any other agency (if any) administering part of the plan and recipients of grants or contracts under title VII of the Act are subject to audit by the Department to determine whether expenditures have been made in accordance with the Act and this part.

$909.57 Cost sharing.

SUBPART G-PROGRAM COSTS

The State plan shall provide that the Federal funds made available under title VII of the Act for any fiscal year will be expended to pay not in excess of 90 percent of the administration and operations costs of the nutrition program throughout the State. This total Federal allotment must be matched during each fiscal year by a total of 10 per centum, or more, as the case may be, from funds or in kind resources from non-Federal sources.

$909.58 Maintenance of effort.

Reasonable assurance shall be provided by recipients of grants or contracts that there will be expended for the nutrition project for the year for which such payments are made, from non-Federal resources, not less than the amount expended for nutrition programs for the elderly from such funds for the fiscal year prior to the funding of the project under title VII of the Act.

$909.59 Allowable costs.

Allowable costs for Federal financial participation under title VII of the Act must be both reasonable and necessary for the conduct of nutrition projects within the State. The types of expenditures of grant funds which are recognized and the conditions under which such expendtures are recognized are set forth in Office of Management and Budget cost policies, and in manuals and other issuances of the Social and Rehabilitation Service.

§ 909.60

SUBPART H—AVAILABILITY OF SURPLUS COMMODITIES

Department of Agriculture donated foods.

(a) Agricultural commodities and products purchased by the Secretary of Agriculture under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) may be donated to public or nonprofit private agencies or organizations to be used for providing nutritional services in accordance with the provisions of this part, to the extent of the total number of elderly persons participating in the program. (b) The Commodity Credit Corporation may dispose of food commodities under section 416 of the Agricultural Act of 1949 (7 U.S.C. 1431) by donating them to public or nonprofit private agencies or organizations to be used for providing nutritional services in accordance with the provisions of this part, to the extent of the total number of elderly persons participating in the program. (c) Dairy products purchased by the Secretary of Agriculture under section 709 of the Food and Agriculture Act of 1965 (7 U.S.C. 1446a-1) may be used to meet the requirements of programs providing nutritional services in accordance with the provisions o fthis part, to the extent of the total number of elderly persons participating in the program.

§ 909.61 State agency purchase of commodities.

The State agency may, upon the request of one or more recipients of a grant or contract, purchase agricultural commodities and other foods to be provided to such nutrition projects assisted under this part. Reports from State agencies concerning requests by recipients of grants or contracts for the purchase of such agricultural commodities and other foods, and action taken thereon may be requested by the Administrator in such form and detail as he may prescribe.

SUBPART I-TREATMENT OF INCOME

§ 909.62 Relationship to other laws.

No part of the cost of any project under this title may be treated as income or benefits to any eligible individual for the purpose of any other program or provision of State or Federal law.

[FR Doc. 72-8552 Filed 6-5-72; 8:46 am]

FROM THE NATIONAL COUNCIL OF SENIOR CITIZENS

STATEMENT OF WILLIAM R. HUTTON, EXECUTIVE DIRECTOR

INTRODUCTION

The National Council of Senior Citizens welcomes this opportunity to present its critique of the proposed rules and regulations for the Nutrition Program for the Elderly.

The Council is deeply committed to seeing that this Nutrition Program for the Elderly is implemented quickly and effectively.

Our support for this type of legislation goes back a number of years, culminating when the National Council participated in the White House Conference on Food, Nutrition and Health where we actively backed a daily meal service for the elderly. Later, in our testimony on S. 1163, we urged administration of a Nutrition Program by the Administration on Aging, rather than, as proposed originally, the Department of Agriculture. We have found that the Department of Agriculture evidenced virtually no awareness of the particular needs of older people.

We saw this Nutrition Program as the kind of a community service that would not only provide nutritious meals for older people, but would develop and enlarge associations among older people, and serve also as a source of employment opportunities.

In the months prior to the enactment of S. 1163, the National Council, through its officers, Executive Board and clubs, provided solid support for this legislation. In the "Platform For The Seventies For Older Americans"-issued in substantial numbers to participants in the White House Conference on Aging, we set forward the following goal: "The nutritional well-being of the nation's elderly should be improved but at the same time there should be programs to meet the social needs of the elderly"—and emphasized that a meal service program was more effective when meals are provided in a group setting which encourages social interaction and facilitates involvement of other services which directly relate to adequate nutrition.

In the development of the rules and regulations for the Nutrition Program for the Elderly, the National Council has been represented in meetings conducted by the Food Research and Action Center, and participated in a meeting of national organizations called by Commissioner John Martin of the Administration on Aging.

REVIEW OF ISSUES AND PROPOSED RULES

In these reviews several important issues were identified which we would like to discuss, relating them to the appropriate section of the proposed rules. I. Coordination of Social and Nutritional Services

We support coordination of programs under Title III-Social Services and programs under Title VII-Nutritional Services, as suggested in the Administration's amendments to the Older Americans Act, but hold that this is going to take some time to effect and argue therefore that there is a mandate for initiating now these nutritional services which have been in the planning stage for several months. The inauguration of these essential nutritional services should not have to wait on the enactment of pending amendments to the Older Americans Act, which include the establishment of a White House Office on the Aging, the elevation of the Administration on Aging to independent status, coordination of Titles III and VII, and the resumption of the administrative responsibility by the Administration on Aging from the Action Agency of the Foster Grandparents of the Retired Senior Volunteer Program.

As we will indicate later in this statement some modifications in the rules proposed for the Nutrition Program for the Elderly, thus making the program more responsive to the needs of low income older persons, and a dedicated urgency on the part of federal and state agencies for the aging, officials should make possible the initiation of the program by September 1, 1972. Even so, this will still be five and a half months after the legislation got enacted and one and a half years after S. 1163 was first introduced.

II. Involvement of Older People in the Planning and Administration of the Program

The National Council of Senior Citizens holds that the key purposes of this legislation can only be adequately fulfilled if every opportunity is afforded to involve older people in the planning and administration of the program. The time has come, in our judgment, when we must insist that the fullest consideration be given to having programs for older people of, by and for older people.

Throughout this nutrition legislation there is constant emphasis on the equal importance of socializing experiences with the provision of nutritious meals. This process should begin with the signficant involvement of older people in activities designed to serve them.

Sec. 909.17.—Advisory Assistance

This section provides that the State agency shall obtain advisory assistance from consumers of services, including members of minority groups.

Our Recommendation

We recommend that the State Plan specifically provide for the appointment of an Advisory Council on Nutrition and related services composed of not less than nine persons, of whom five shall be elderly individuals, including members of minority groups.

Sec. 909.33.-Project Councils

This section establishes a project council more than half of whose members shall be consumers. These project council members are to be elected from each major congregate site.

Our Recommendation

We commend the proposal that each project shall have a Project Councilmore than one-half of whose members shall be actual consumers of nutrition services of the project. However, the Council is not provided with any significant control of the project.

In line with our belief that older persons should be significantly involved in the planning and management of activities, we recommend that this Council have a set of officers, a Chairman, Vice Chairman and Secretary, and that the sponsoring agency, in selecting an Executive for the Nutrition project, shall consult with the officers of this Advisory Council. This would provide the participants with some management responsibilities for the project.

III. Definition of low-income elderly

The National Council holds that, since this legislation has the dual purpose of providing nutritious meals and permitting socialization among the elderly, the level of income should not be the sole criteria for eligibility.

The 1971 White House Conference on Aging held that the floor of income for older persons should be the Intermediate Budget of the Bureau of Labor Statisties for an elderly couple (about $4,500 a year in the spring of 1970). We hold that the near poor-those between the poverty level and the BLS Intermediate level-who generally will not be eligible for welfare benefits-also need to be involved in the program for meals and socialization.

Sec. 909.20.-Selection of Areas for Project Awards

The proposed rule provides that the areas selected for project awards must include "major concentrations of older persons whose income is below the current Department of Commerce, Bureau of the Census poverty threshold." This in 1971 is $1,920 for a single person and $2,460 for a couple.

Our Recommendation

We recommend that the low-income be defined as those individuals whose income is at or below the Bureau of Labor Statistics Intermediate Budget.