ACA Reinvestment of Civil Money Penalties to Benefit Nursing Home Residents

The purpose of this funding opportunity is to solicit applications to participate in a national federal grant program using Civil Money Penalty funds from nursing homes to support and otherwise benefit nursing home residents.

Agency - Department of Health and Human Services

The Department of Health and Human Services is the Federal government's principal agency for protecting the health of all Americans and providing essential human services, especially to those who are least able to help themselves.

Office - See Regional Agency Offices.

Program Accomplishments

Not Applicable.

Uses and Use Restrictions

Requested funds must be used entirely for activities that protect or improve the quality of care for nursing home residents.

These activities must be approved by CMS and may include, but are not limited to:

Support and protection of residents of a facility that closes (voluntarily or involuntarily).

Time-limited expenses incurred in the process of relocating residents to home and community-based settings or another facility when a facility is closed (voluntarily or involuntarily) or downsized pursuant to an agreement with the State Medicaid agency.

Projects that support resident and family councils and other consumer involvement in assuring quality care in facilities.

Facility improvement initiatives approved by CMS, such as joint training of facility staff and surveyors or technical assistance for facilities implementing quality assurance and
performance improvement program, when such facilities have been cited by CMS for deficiencies in the applicable requirements.

Development and maintenance of temporary management or receivership capability such as but not limited to, recruitment, training, retention or other system infrastructure expenses.

However, as specified in § 488.415(c), a temporary manager s salary must be paid by the facility.

Conflict of Interest Prohibitions: CMS will not approve projects for which a conflict of interest exists or the appearance of a conflict of interest exists.

Similarly, we will generally not approve uses of CMP funding for very long term projects (greater than 3 years).
Duplication: CMP funds may not be used to pay entities to perform functions which they are already paid by state or federal sources.

In addition, CMP funds may not be used to fund state legislative directives for which no or inadequate state funds have been appointed.
Capitol Improvement: CMP funds may not be used to pay for capital improvement to a nursing home, or to build a nursing home, as the value of such capital improvement accures to a private party (the owner).
Nursing Home Services or Supplies: CMP funds may not be used to pay for nursing home services or supplies that are already the responsibility of the nursing home, such as laundry, linen, food, heat, staffing costs.
Temporary Manager Salaries: CMP funds may not be used to pay the salaries of temporary managers who are actively managing a nursing home.
Supplementary Funding of Federally Required Services: For example, CMP funds may not be used to recruit or provide Long Term Care Ombudsman certification training for staff or volunteers or investigate and work to resolve complaints as these are among the responsibilities of the Long Term Care Ombudsman programs under the federal Old Americans Act, regardless of whether funding is adequate to the purpose.

Eligibility Requirements

Applicant Eligibility

CMS seeks to fund activities that protect or improve the quality of care for residents.

Funding under this opportunity is available to organizations/associations that are authorized by law to administer grants and contracts in support of national and regional programs.

Beneficiary Eligibility



No Credentials or documentation are required. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is required.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.


Application Procedures

This program is excluded from coverage under OMB Circular No. A-102. OMB Circular No. A-110 applies to this program.

Award Procedures

The review process will include the following:

• Applications will be screened to determine eligibility for further review using the criteria detailed in this solicitation. Applications received late or from organizations that are not eligible will not be reviewed and will not be eligible for award.

• A team consisting of staff from HHS and potentially other outside experts will review all applications. The review panel will assess each application to determine the merits of the application and the extent to which the proposed program furthers the purposes of the program. CMS reserves the option to request that applicants revise or otherwise modify their applications and budget based on the recommendations of the panel.

• The results of the objective review of the applications by qualified experts will be used to advise the approving HHS official. Final award decisions will be made by an HHS approving official. In making these decisions, the HHS approving official will take into consideration: recommendations of the review panel; the extent to which the requested resources directly support implementation efforts; any overlap with existing resources that support implementation; the extent to which the state is committing state resources to implementation efforts; the reasonableness of the estimated cost to the government and anticipated results; likelihood that the proposed project will result in the benefits expected; and availability of funding.

Successful applicants will receive one grant award per application issued under this announcement. CMS reserves the right to approve or deny any or all applications for funding. Section 1115A(d)(2) of the Social Security Act states that there is no administrative or judicial review of the selection of organizations, sites, or participants to test models under section 1115A.


May 01, 2014 to Aug 15, 2014 Tentative Funding Opportunity Announcement Release: May 1, 2014
Tentative Required Notice of Intent to Apply Due: May 10, 2014
Tentative Electronic Cooperative Agreement Application Due Date: June 30, 2014
Anticipated Notice of Cooperative Agreement Award: August 15, 2014.


Patient Protection and Affordable Care Act (Public Law 111-148); Health Care and Education Reconciliation Act (Public Law 111-152).

Range of Approval/Disapproval Time

Not Applicable.


Not Applicable.


Not Applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.

Length and Time Phasing of Assistance

Period of performance is up to three years. See the following for information on how assistance is awarded/released: Funding will be award in 12-month budget periods.

Post Assistance Requirements


Progress reports - quarterly and annual
Federal Financial report
Transparency Act Reporting
Audit Requirement
Payment Management Requirements.

Awardees are required to report their cash transactions on a quarterly basis directly through the Payment Management System using the SF-425 (top portion of the form).

The report identifies cash expenditures against the authorized funds for the grant.

Failure to submit the report may result in the inability to access funds.

Awardees are also required to submit overall financial status reports semi-annually, also using the SF-425.

Awardees must agree to cooperate with any Federal evaluation of the program and provide required quarterly and final reports in a form prescribed by CMS.

Quarterly reports shall be submitted electronically (via GrantSolutions).

Awardees must also agree to respond to requests that are necessary for the evaluation of the national efforts and provide data on key elements of their own cooperative agreement activities.

Grant funds will be distributed to awardees via the Payment Management System.

Awardees are required to report their cash transactions on a quarterly basis directly through the Payment Management System using the SF-425 (top portion of the form).

The report identifies cash expenditures against the authorized funds for the cooperative agreement.

Failure to submit the report may result in the inability to access funds.

Awardees are also required to submit overall financial status reports semi-annually using the SF-425.

No performance monitoring is required.


In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.



Financial Information

Account Identification



(Project Grants) FY 13 $0; FY 14 est $1,200,000; and FY 15 est $1,200,000

Range and Average of Financial Assistance

$1,200,000 to be divided between three awards. CMS anticipates total funding of each project to be at a minimum of $60,000.

Regulations, Guidelines, and Literature

Not Applicable.

Information Contacts

Regional or Local Office

See Regional Agency Offices.

Headquarters Office

Sandra Phelps 7500 Security Blvd., Baltimore, Maryland 21244 Email: Phone: 410-786-1968

Criteria for Selecting Proposals

Not Applicable.

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