(a) Purpose. This section:(1) establishes the responsibilities of a AAA in developing and maintaining an organized and efficient system of administration that demonstrates accountability and compliance with state and federal law and with all terms and conditions of the contract it enters into with HHSC; and(2) applies to a service under the Older Americans Act provided to a program participant that is funded, in whole or in part, by HHSC.(b) Structure of a AAA.(1) A AAA must:(A) reflect its organizational structure through job descriptions, staffing plans, area plans, and organizational charts that demonstrate its ability to effectively administer Older Americans Act programs and other programs funded by HHSC;(B) identify a person as a director or manager of the AAA;(C) if a director or manager position becomes vacant, ensure that a qualified staff person is assigned to perform the duties of the director or manager until the position is filled;(D) budget all positions based on the projected percentage of time to be spent performing the duties of an identified service;(E) maintain documentation to support the actual time spent performing the duties of an identified service; and(F) comply with the Service Definitions for Area Agencies on Aging available on the HHSC website for all services funded by HHSC.(2) In accordance with the Older Americans Act, §306(a)(6)(D), a AAA must establish an advisory council that:(A) continually advises the AAA on all matters relating to the development and administration of and operations conducted under the area plan; and(B) consists of persons who are 60 years of age or older (including minority persons and persons residing in rural areas) who are program participants or who are eligible to participate in programs under the Older Americans Act, family caregivers of such individuals, representatives of persons 60 years of age or older, service providers, representatives of the business community, local elected officials, providers of veterans' health care, if appropriate, and the general public.(3) A AAA must ensure that its board members, employees, advisory committee members, and volunteers are not subject to a conflict of interest, as described in subparagraph (A) of this paragraph, in fact or perception, and notify HHSC in accordance with HHSC Program Instruction AAA - PI 500 Conflicts of Interest, when potential conflicts of interest occur.(A) A conflict of interest includes:(i) having a substantial financial interest, directly or indirectly, in the profits of any entity from which services or goods are contracted or otherwise procured by the AAA; and(ii) deriving a personal profit, directly or indirectly, from any entity that would conflict in any manner or degree with the performance of responsibilities of the board member, employee, advisory committee member, or volunteer.(B) If a AAA is part of a host agency as defined in 26 TAC §88.2 (relating to Definitions), the AAA must comply with