Request By:
Mr. Peter D. Conn, Secretary
Department for Human Resources
Capitol Annex Building
Frankfort, Kentucky 40601
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Thomas C. Jacobs, Deputy Attorney General
By your letter of July 28, 1977 you have asked for an opinion of this office with regard to whether or not Kentucky obligated its Developmental Disability Funds for the fiscal year 1976. Accompanying your letter was a memorandum prepared by Robert W. Riley, your Acting General Counsel, which memorandum sets out the facts necessary for determination of the question presented.
42 USC 6062 relates to the allotment of funds to states for the developmentally disabled program. Section 6062 provides in pertinent part that:
"(a)(1)(A) In each fiscal year, the Secretary (of Health, Education and Welfare) shall, in accordance with regulations and this paragraph, allot the sums appropriated for such year under section 6061 of this title among the States on the basis of
(i) the population
(ii) the extent of need for services and facilities for persons with developmental disabilities, and
(iii) the financial need,
of the respective States. Sums allotted to the States under this section shall be used in accordance with approved State plans under section 6063 of this title for the provision under such plans of services and facilities for persons with developmental disabilities. " (Emphasis Added)
Kentucky received from the Department of Health, Education and Welfare tentative approval of its state plan for the developmentally disabled for Fiscal Year 1976 on June 19, 1976. The "Statement of Grant Award" for Fiscal Year 1976, including the transition quarter from July 1, 1976 to September 30, 1976, was received August 23, 1976. On June 25, 1976, Commissioner William P. McElwain of the Bureau for Health Services of the Kentucky Department for Human Resources transmitted a memorandum entitled "Obligations of DDSA Funds" to Commissioner Daniel B. Howard of the Bureau of Administration and Operations of the Department for Human Resources. This memorandum directed Commissioner Howard to hold for disbursement $548,723 in DDSA Funds in accordance with a project list attached to the memorandum. On August 30, 1976, Commissioner McElwain tranmitted to Commissioner Howard a memorandum entitled "Obligation of DDSA Transitional Quarter Funds." This memorandum directed Commissioner Howard to hold for disbursement the sum of $137,174 in DDSA Funds for disbursement as indicated on a list of projects attached to the memorandum.
KRS 194.030 states in pertinent part that:
"(5) The bureau for administration and operations. The bureau for administration and operations shall be responsible for providing or directing the provision of all administrative and operational support services within the department for human resources. All fiscal, personnel, facility, and information management functions of the department shall be vested in the bureau for administration and operations.
(7) The bureau for health services. The bureau for health services shall develop and operate all programs of the department that provide health and mental health services and all programs for the prevention, detection, care, and treatment of physical and mental disability, illness, and disease."
The Program Bureau (i.e. the Bureau for Health Services) therefore notified the Fiscal Bureau (i.e. the Bureau for Administration and Operations) to:
"Please hold these funds for disbursement as indicated on the attached list of projects.
MH-MR Boards, usually referred to as Comprehensive Care Centers or Regional Community Mental Health Programs in Kentucky, are created pursuant to the provisions of KRS 210.370 et. seq. KRS 210.410 specifically provides that:
"The secretary for human resources is hereby authorized to make grants to . . . regional community mental health programs . . ."
You state that a written contractual agreement is not required between the Department for Human Resources and MH-MR Boards.
We have reviewed Mr. Riley's memorandum and documents and it is our opinion that by the two memoranda dated June 25 and August 30 from Commissioner McElwain to Commissioner Howard, Kentucky obligated the DDSA funds awarded to it to the various MH-MR Boards as subgrantees. Clearly, this obligation was made prior to the end of Federal Fiscal Year 1976.