1. The department shall establish and enforce procedures relating toexpenditure of state and federal funds by area agencies on aging that require compliance with both state and federal laws, rules, and regulations, including but not limited to all of the following: a. Requiring that expenditures are incurred only for goods or services received or performed prior to the end of the fiscal period designated for use of the funds. b. Prohibiting prepayment for goods or services not received or performed prior to the end of the fiscal period designated for use of the funds. c. Prohibiting prepaymentforgoods or services not definedspecificallyby good or service, time period, or recipient. d. Prohibiting the establishment of accounts from which future goods or services which are not defined specifically by good or service, time period, or recipient, may be purchased. 2. The procedures shall provide that if any funds are expended in a manner that is not in compliance with the procedures and applicable federal and state laws, rules, and regulations, and are subsequently subject to repayment, the area agency on aging expending such funds incontravention of such procedures, laws, rules, and regulations, not the state, shall be liable for such repayment.
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