EXECUTIVE DIRECTOR OF HEALTH CARE POLICY AND FINANCING RULES
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Code of Colorado Regulations › 2505,1305 Department of Health Care Policy and Financing › 2505 Executive Director of Health Care Policy and Financing › 10 CCR 2505-5
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DEPARTMENT OF HEALTH CARE POLICY AND FINANCING
Executive Director of Health Care Policy and Financing
EXECUTIVE DIRECTOR OF HEALTH CARE POLICY AND FINANCING RULES
10 CCR 2505-5
[Editor’s Notes follow the text of the rules at the end of this CCR Document.]
1.010 FINANCE AND ACCOUNTING
The incorporation by reference (as indicated within) throughout section 1.010 excludes
later amendments to, or editions of, the referenced materials. Pursuant to C.R.S. § 24-
4-103(12.5) the State Department maintains copies of this incorporated text in its
entirety available for public inspection during regular business hours, at: Colorado
Department of Health Care Policy and Financing, 303 E. 17th Ave Denver, CO 80203.
Certified copies of incorporated materials are provided at cost upon request.
Incorporated materials are found in the following sections: 1.010.1, 1.010.3(4),
1.010.12(3)(a), 1.010.14(1), 1.010.14(2), 1.010.14(4), 1.010.14(4)(a), 1.010.14(4)(a)(i),
1.010.14(4)(b), 1.010.14(4)(c), 1.010.14(4)(d),
1.010.1
Definitions
Please be advised that the definitions set forth in 1.010.1 also apply to 1.020.
The following definitions are used in this rule manual, unless the context otherwise
requires.
2 C.F.R. Part 200, the Office of Management and Budget (OMB) Uniform Administrative
Requirements, Cost Principles and Audit Requirements for Federal Awards, also known
as Uniform Guidance, is the federal uniform administrative requirements, cost
principles, and audit requirements for federal awards such as Medical Assistance and
was officially adopted by the US Department of Health and Human Services on
September 27, 2024. 2 C.F.R. Part 200 (2025) is hereby incorporated by reference.
Accounts Receivable are recoveries that may be due the County Department of
Social/Human Services for, but not limited, to the following: Overpayment of a benefit or
benefits, Ineligibility for a benefit or benefits, Fee for service provided, Overpayment to a
Vender of goods, Provider of service, or Employee
vices on
September 27, 2024. 2 C.F.R. Part 200 (2025) is hereby incorporated by reference.
Accounts Receivable are recoveries that may be due the County Department of
Social/Human Services for, but not limited, to the following: Overpayment of a benefit or
benefits, Ineligibility for a benefit or benefits, Fee for service provided, Overpayment to a
Vender of goods, Provider of service, or Employee.
Allowable Medical Assistance Expenditures are those which the Colorado Department
of Health Care Policy and Financing deems are allowed or required.
Code of Colorado Regulations
Secretary of State
State of Colorado
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Applicable Credits refer to those receipts or reductions of Medical Assistance
expenditure-type transactions that offset or reduce expense items as Direct or Indirect
Costs. Examples of such transactions are: Purchase discounts, rebates or allowances,
recoveries or indemnities on losses, insurance refunds or rebates, adjustments of
overpayments, or erroneous charges. To the extent that such credits accrue to or are
received by the County Department of Social/Human Services and relate to allowable
costs, they shall be credited to the Colorado Department of Health Care Policy and
Financing and/or the appropriate federal award as a reduction of Medical Assistance
expenditures.
Applicant is any individual who has applied for benefits under the Programs of Medical
Assistance administered or supervised by the Colorado Department of Health Care
Policy and Financing, in accordance with the provisions of C.R.S.§ 25.5-4-103.
Appointing Authority is the person with the direct authority and responsibility for
appointment of employment, disciplinary action, promotion of, and or discharge of
employment, over another person
for benefits under the Programs of Medical
Assistance administered or supervised by the Colorado Department of Health Care
Policy and Financing, in accordance with the provisions of C.R.S.§ 25.5-4-103.
Appointing Authority is the person with the direct authority and responsibility for
appointment of employment, disciplinary action, promotion of, and or discharge of
employment, over another person.
Appropriation means the authorization by ordinance or resolution of a spending limit for
Medical Assistance expenditures and obligations for specific purposes, in accordance
with the provisions of C.R.S. § 29-1-102.
Approving Authority is the person with direct authority and responsibility for reviewing
and approving of another's activities or requests for payment of expenses.
Arms-length Bargaining means both parties to a Contract have relatively equal powers
of negotiation upon entering into the Contract. Neither party has a disproportionate
amount of power to strong-arm the other party.
Business Process Standard is a structured guideline that defines minimum
requirements for how core activities must be carried out to address/promote consistency
in the timely and accurate delivery of benefits and quality customer service to
Coloradans within the County Department’s role in determining or renewing Medical
Assistance coverage. Business Process Standards will be developed in collaboration
between the State Department and County Departments and must account for the
varying sizes of County Departments.
Capital Medical Assistance Expenditure shall be the cost of the asset including the cost
to put it in place. Capital Medical Assistance Expenditure for equipment means the net
invoice price of the equipment, including the cost of any modifications, attachments,
accessories, or auxiliary apparatus necessary to make it usable for the purpose for
which it is acquired
ying sizes of County Departments.
Capital Medical Assistance Expenditure shall be the cost of the asset including the cost
to put it in place. Capital Medical Assistance Expenditure for equipment means the net
invoice price of the equipment, including the cost of any modifications, attachments,
accessories, or auxiliary apparatus necessary to make it usable for the purpose for
which it is acquired. Ancillary charges, such as duty, freight, and installation may be
included in, or excluded from, capital Medical Assistance expenditure cost in
accordance with the County Department of Social/Human Services' accounting policies.
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Capitalized Equipment is tangible personal property that has an acquisition cost of more
than $5,000.00, which is not a permanent part of a building and does not lose its identity
through incorporation into a more complex unit.
Capital Lease transfers to the lessee substantially all of the benefits and risks related to
ownership of the property. The lessee records the leased property as an asset and
establishes a liability for the lease obligation.
Cash means the cash account(s) of the County Department, all petty cash accounts and
any other cash accounts maintained.
Cash Reconciliation means the treasurer/bank balance shall be agreed to the general
ledger cash balance using an outstanding warrant list and possibly other identifiable
reconciling items.
Chart of Accounts is a numbered list of accounts that gives order and consistency to a
bookkeeping system. Common terminology and classifications shall be used
consistently throughout the budget, the accounts, and the financial reports of the fund.
Colorado Benefits Management System (CBMS) is the computer system that
determines an Applicant’s eligibility for Medical Assistance (Medicaid eligibility
determination system)
umbered list of accounts that gives order and consistency to a
bookkeeping system. Common terminology and classifications shall be used
consistently throughout the budget, the accounts, and the financial reports of the fund.
Colorado Benefits Management System (CBMS) is the computer system that
determines an Applicant’s eligibility for Medical Assistance (Medicaid eligibility
determination system).
Colorado Department of Local Affairs means the agency to which the Board of County
Commissioners submits the annual County Department of Social/Human Service
budget.
Colorado Government Human Services Financial Officer’s Association (CGHSFOA)
improves the practice of governmental finance and accounting and develops closer
relationships and understanding among those concerned with public human service
finance in Colorado.
Colorado Human Services Directors Association (CHSDA) is a nonprofit association
representing the County Department of Social/Human Services directors from across
the state of Colorado.
Commercial Lodging is a hotel, motel, resort or public inn as defined in C.C.R § 101-1:
Rule 5-1.2.14 or a bed and breakfast as defined in C.R.S. § 39-1-102.
Commitment Vouchers as defined by State of Colorado Fiscal Rules, 1 C.C.R § 101-
1:Rule 3-1 (2024), which is hereby incorporated by reference, include any approved
form of purchase order, Contract, travel authorization, advice of employment, grant
contract, license agreement, parking license agreement and other written authorization
for disbursements which satisfy the requirements in a document providing the following:
1.
A description of goods or services being purchased or other reasons for
the disbursement of funds;
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ice of employment, grant
contract, license agreement, parking license agreement and other written authorization
for disbursements which satisfy the requirements in a document providing the following:
1.
A description of goods or services being purchased or other reasons for
the disbursement of funds;
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2.
The amount to be paid;
3.
The obligation is being charged to the appropriate account; and
4.
That procurement requirements have been satisfied.
Contract means a mutually binding legal relationship obligating the seller to furnish the
supplies or services and the buyer to pay for them. It includes all types of commitments
that obligate the government to a Medical Assistance expenditure of appropriated funds
and that, except as otherwise authorized, are in writing.
Contractor is an entity that receives a Contract, as defined in 2 C.F.R. § 200.1, which is
hereby incorporated by reference. A Contractor provides goods and services within
normal business operations, operates in a competitive environment, and provides goods
and services that are ancillary to the operation of the federal program.
Corrective Action means action taken by an auditee that corrects identified deficiencies.
Cost Allocation Plan is a systematic and rational allocation of all administrative costs
and a narrative description of the procedures that will be used in identifying, measuring
and allocating all administrative costs to the benefiting programs and activities.
Cost Objective is a program, grant, organizational subdivision, function, Contract or
other activity for which costs are being accumulated.
Cost Pool is an aggregation of costs for subsequent allocation to another cost pool or a
cost objective.
Costs are expenses incurred, either directly or indirectly
ng, measuring
and allocating all administrative costs to the benefiting programs and activities.
Cost Objective is a program, grant, organizational subdivision, function, Contract or
other activity for which costs are being accumulated.
Cost Pool is an aggregation of costs for subsequent allocation to another cost pool or a
cost objective.
Costs are expenses incurred, either directly or indirectly. Costs include such items as
labor, material, supplies, rent or building charges, operating expenses, and
administrative expenses that might properly be assigned to a project or program. It does
not include transfers to a general fund or similar fund.
County Board of Social/Human Services or County Board means the county’s Board of
County Commissioners, county board of social or human services or district board of
social or human services except in the case of the City and County of Denver or the City
and County of Broomfield, this means the city and county board with responsibility for
Medical Assistance and related activities.
County Department of Social/Human Services or County Department means the county
department of social or human services or district department of social or human
services, except in the case of the City and County of Denver or the City and County of
Broomfield, this means the department or agency responsible for Medical Assistance
and related activities.
County Department Director means the director of the County Department of
Social/Human Services or district department of social/human services.
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ty and County of Denver or the City and County of
Broomfield, this means the department or agency responsible for Medical Assistance
and related activities.
County Department Director means the director of the County Department of
Social/Human Services or district department of social/human services.
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County means a County or a city and County.
County Financial Management System (CFMS) means the financial system of record to
report all county Medical Assistance expenditures to the State Department.
Data refers to all books, papers, maps, photographs, or other documentary materials
regardless of physical form. Data may be in hard copy form, microfiche, electronic, or
other form.
Deferred Revenue means a revenue collected but not yet earned.
Direct Costs are those Costs that can be specifically and readily identified with a
program, grant, function, contract, or other activity.
Disability - According to federal Regulations, a person is considered to have a Disability
if s/he: 1) has a physical, communication, or mental impairment which substantially
limits one or more major life activities; 2) has a record of such an impairment, or 3) is
regarded as having such an impairment. Such impairments may include, but are not
limited to, blindness, deafness, paraplegia, contagious diseases, etc.
Disbursement is any decrease in fund resources.
Double-entry Accounting is a method of accounting that recognizes the duality of a
transaction. Any change in one account also causes a change in another account.
Eligibility and Enrollment Collaboration Agreement (“Collaboration Agreement”): A
formal agreement between a County Department and an external entity to facilitate
eligibility and enrollment utilizing existing processes and resources
es.
Double-entry Accounting is a method of accounting that recognizes the duality of a
transaction. Any change in one account also causes a change in another account.
Eligibility and Enrollment Collaboration Agreement (“Collaboration Agreement”): A
formal agreement between a County Department and an external entity to facilitate
eligibility and enrollment utilizing existing processes and resources.
Eligibility and Enrollment Cost Sharing Agreement (“Cost Sharing Agreement”: A formal
agreement between a County Department and an external entity to facilitate eligibility
and enrollment leveraging cost sharing procedures that allow the external entity to pay
the state and county share of Costs to facilitate potential onsite placement of County
Department personnel. Equipment shall be an article of non-expendable, tangible
personal property having a cost, which equals the lesser of the capitalization level
established by the County Department of Social/Human Services for financial statement
purposes, or $10,000.00.
Executive Director means the Executive Director of the Colorado Department of Health
Care Policy and Financing.
Expenditure, which are Medical Assistance expenditures, represented by a decrease in
fund resources other than through inter-fund transfer.
Federal Award means federal financial assistance and federal cost-reimbursement
Contracts that non- federal entities receive directly from federal awarding agencies or
indirectly from pass-through entities.
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enditures, represented by a decrease in
fund resources other than through inter-fund transfer.
Federal Award means federal financial assistance and federal cost-reimbursement
Contracts that non- federal entities receive directly from federal awarding agencies or
indirectly from pass-through entities.
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Federal Financial Assistance means assistance that non-federal entities receive or
administer in the form of grants, loans, loan guarantees, property (including donated
surplus property), cooperative agreements, interest subsidies, insurance, food
commodities, direct appropriations, and other assistance, but does not include amounts
received as reimbursement for services rendered to individuals as:
1.
Medicare payments (payments to a non-federal entity for providing patient
care services to Medicare eligible individuals), and
2.
Medicaid payments (payments to a Subrecipient for providing patient care
services to Medicaid eligible individuals) unless a state requires the funds
to be treated as federal awards expended because reimbursement is on a
cost-reimbursement basis.
Fiscal Year for a County Department of Social/Human Services is the period covered by
the County Department appropriations for social/human services funds and shall be the
calendar year, which coincides with the County Department fiscal year. The fiscal year
covered by the Colorado Department of Health Care Policy and Financing
appropriations and allocations to the counties shall be July through June. The fiscal
year covered by the federal grants in aid shall be October through September. Federal
projects may cover fiscal years other than the federal fiscal year and will be specified in
the terms of the project.
Fund is an accounting entity which owns assets and incurs liabilities. This means the
social/human services fund in each County Department must be accounted for
separately from any other funds in the County Department
ederal grants in aid shall be October through September. Federal
projects may cover fiscal years other than the federal fiscal year and will be specified in
the terms of the project.
Fund is an accounting entity which owns assets and incurs liabilities. This means the
social/human services fund in each County Department must be accounted for
separately from any other funds in the County Department. The assets, including Cash,
must be identified as assets of this fund.
General Ledger is a book or computer database that contains a full set of accounts. It
should be in balance at all times with aggregate debits equaling aggregate credits.
Generally Accepted Accounting Principles (GAAP) are uniform minimum standards of
and guidelines to financial accounting and reporting. Adherence to GAAP assures that
financial reports of all state and local governments–regardless of jurisdictional legal
provisions and customs–contain the same types of financial statements and
disclosures, for the same categories and types of funds and activities, based on the
appropriate measurement and classification criteria as amended by . Governmental
Accounting Standards Board (GASB) 34.
Indirect Costs relate to a cost incurred that cannot be specifically and readily identified
with a cost objective and therefore must be allocated on some basis of imputed benefit.
Indirect Costs are more commonly known as the Costs of administration.
Internal Control is a process affected by an entity's board of directors, management,
and other personnel that is designed to provide reasonable assurance regarding the
achievement of objectives in the following categories: a) reliability of financial reporting,
b) effectiveness and efficiency of operations, and c) compliance with applicable laws
and Regulations.
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irectors, management,
and other personnel that is designed to provide reasonable assurance regarding the
achievement of objectives in the following categories: a) reliability of financial reporting,
b) effectiveness and efficiency of operations, and c) compliance with applicable laws
and Regulations.
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The above definition reflects certain fundamental concepts as stated in the US
Government Accountability Office Standards for Internal Controls in the Federal
Government (the “Green book”) revised September 2022:
1.
Internal controls are a process. It is a means to an end, not an end in
itself. People affect internal controls. It is not policy manuals and forms,
but people at every level of an organization.
2.
Internal control can be expected to provide only reasonable, not absolute
assurance, to an entity's management and board.
3.
Internal Control comprises five interrelated components:
a.
Control Environment: The people - their individual attributes,
including integrity, ethical values and competence - and the
environment in which they operate. They are the engine that drives
the entity and the foundation on which everything rests.
b.
Risk Assessment: Mechanisms that identify, analyze, and manage
related business and operating risks.
c.
Control Activities: Control policies and procedures must be
established and implemented to help ensure that the actions
identified by management as necessary to address risks and obtain
the specified goals are effectively carried out. Policies and
procedures should be reviewed on a periodic basis by
management.
d.
Information and Communication: Surrounding these activities are
information and communication systems. These enable the County
Department of Social/Human Services to capture and exchange the
information needed to conduct, manage and control their
operations.
e.
Monitoring: The entire process must be monitored and
modifications made as necessary
uld be reviewed on a periodic basis by
management.
d.
Information and Communication: Surrounding these activities are
information and communication systems. These enable the County
Department of Social/Human Services to capture and exchange the
information needed to conduct, manage and control their
operations.
e.
Monitoring: The entire process must be monitored and
modifications made as necessary. In this way, the system can react
dynamically, changing as conditions warrant.
Inventory means a physical identification and count and/or to provide a list of items.
Management Decision Letter means the evaluation by the federal awarding agency,
State Department or pass-through entity of the audit and/or review findings and
corrective action plan and the issuance of a written decision as to what Corrective
Action is necessary.
Medical Assistance is defined in C.R.S. § 25.5-1-103.
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Medical Services Board means the state board authorized to act in accordance with the
provisions of C.R.S. § 25.5-1-301.
Member is a generic term for an individual or group of individuals who receives any
assistance from the County Department of Social/Human Services whether it is in the
form of cash, non-cash or services.
Nursing Facility is a state-certified institution that provides 24-hour medical and nursing
care, rehabilitation, and other health-related services.
Partisan refers to any election in which any one of the candidates for office is nominated
or elected representing a political party whose candidates for presidential election
received votes at the last preceding election at which presidential electors were
selected.
Pass-through Entity (PTE) is a non-federal entity that provides a Subaward to one or
more Subrecipients to carry out part of a federal Program. The State Department is the
PTE for the Medical Assistance Program
is nominated
or elected representing a political party whose candidates for presidential election
received votes at the last preceding election at which presidential electors were
selected.
Pass-through Entity (PTE) is a non-federal entity that provides a Subaward to one or
more Subrecipients to carry out part of a federal Program. The State Department is the
PTE for the Medical Assistance Program.
Payroll means a list of Medical Assistance expenditures and/or disbursements that are
similar in nature or object of expenditure. An employee Payroll listing wages, with the
amounts due to each employee, is an example of a Payroll. A listing of Old Age Pension
benefits payable to eligible OAP members is another type of Payroll. Such lists become
vouchers when certified and approved.
Personal Property is property such as machinery, Equipment, or furniture that is not real
property.
Post-audit is the examination and verification of Medical Assistance expenditures after
reimbursement with state and/or federal funds.
Procurement Card, also known as a p-card or credit card, is a simplified purchasing
process which allows employees to quickly and efficiently purchase without involving
the accounts payable process.
Program is a generic term for any “social services”, “assistance payments,” “payments
under the Colorado Medical Assistance Act,” or a specific function or activity.
Provider is any person, public or private institution, agency, or business concern
enrolled under the state Medical Assistance program to provide medical care, services,
or goods and holding a current valid license or certificate to provide such services or to
dispense such goods.
Random Moment Sampling is the federally approved cost allocation method that
documents the efforts expended in support of programs in order to receive
reimbursement for the Medical Assistance expenditures.
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ding a current valid license or certificate to provide such services or to
dispense such goods.
Random Moment Sampling is the federally approved cost allocation method that
documents the efforts expended in support of programs in order to receive
reimbursement for the Medical Assistance expenditures.
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Real Property is land and generally anything erected on, growing on, or attached to
land, for instance, a building.
Reasonable Timeline is as much time as reasonable, and within the sole discretion of
the State Department, given the context of the request being made to the County
Department.
Recipient means any individual or group of individuals who is receiving or has received
benefits from Programs of Medical Assistance administered or supervised by the
Colorado Department of Health Care Policy and Financing, in accordance with the
provisions of C.R.S. § 25.5-4-103 (21).
Regulation is a Rule or order issued by an executive authority or regulatory agency of a
government and having the force of law.
Reimbursable Medical Assistance Expenditures are supported in whole or in part by
state general fund, federal (Pass Through) or a combination of state and federal money.
Rule is an agency statement of general applicability and future effect implementing,
interpreting, or declaring law or policy or setting forth the procedure or practice
requirements of any agency. Rule includes Regulation.
Signature includes both physical signatures and electronic signatures, which means an
electronic sound, symbol, or process attached to or logically associated with a record
and executed or adopted by a person with the intent to sign the record, as set forth in
C.R.S. § 24-71-101. In any written communication in which a signature is required or
used, any party to the communication may affix a signature by use of an electronic
signature that complies with the requirements of C.R.S. § 24-71.3-101
ound, symbol, or process attached to or logically associated with a record
and executed or adopted by a person with the intent to sign the record, as set forth in
C.R.S. § 24-71-101. In any written communication in which a signature is required or
used, any party to the communication may affix a signature by use of an electronic
signature that complies with the requirements of C.R.S. § 24-71.3-101.
Social/Human Services Fund is a fiscal and accounting entity with a self-balancing set
of accounts recording Cash and other financial resources, together with all related
liabilities and residual equities or balances, and changes therein, which are segregated
for the purpose of carrying on specific activities or attaining certain objectives in
accordance with special regulations, restrictions, or limitations.
State Department means the Colorado Department of Health Care Policy and
Financing.
Subaward is an award provided by the pass-through entity to a Subrecipient for the
purpose of carrying out a portion of the federal award and creates a federal financial
assistance relationship with a Subrecipient, as set forth in 2 C.F.R. § 200.331, which is
hereby incorporated by reference.
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Subrecipient means a non-federal entity that expends federal awards received from a
pass-through entity to carry out a federal Program, but does not include an individual
that is a beneficiary of such a Program. A Subrecipient may also be a Recipient of other
federal awards directly from a federal awarding agency. Guidance on distinguishing
between a Subrecipient and a Contractor is provided in 2 C.F.R. § 200.331. County
Departments of Social/Human Services are Subrecipients for the Medical Assistance
Program.
Training Function is a meeting, conference, or other function which is held to enhance
staff knowledge or to educate customers of the county that are affected by the county
department operations or regulations
on distinguishing
between a Subrecipient and a Contractor is provided in 2 C.F.R. § 200.331. County
Departments of Social/Human Services are Subrecipients for the Medical Assistance
Program.
Training Function is a meeting, conference, or other function which is held to enhance
staff knowledge or to educate customers of the county that are affected by the county
department operations or regulations.
Transportation is travel by commercial airline, railroad, bus, taxicab, county-owned, or
personally-owned automobile or any other means of conveyance.
Vendor generically means a dealer, distributor, merchant, or other seller providing
goods or services that are required for the conduct of a federal Program. These goods
or services may be for an organization's own use or for the use of beneficiaries of the
federal Program. Additional guidance on distinguishing between a Subrecipient and a
Vendor is provided in in 2 C.F.R. § 200.331
1.010.2
Purpose and Scope
These Rules are the fiscal Rules for County Departments concerning Medical
Assistance and the administration of that assistance including but not limited to fiscal
internal controls, financial reporting, accounting and auditing.
The Colorado Department of Health Care Policy and Financing’s Finance and
Accounting Manual consists entirely of Executive Director Rules as allowed by C.R.S. §
25.5-1-108.
1.010.3
Board of County Commissioners
1.
Board of County Commissioners Responsible for Appropriating up to Twenty
Percent Share
As per C.R.S. § 25.5-4-206 and C.R.S. § 26-1-122(1)(a), the Board of County
Commissioners for each county shall annually appropriate as provided by law the
funds necessary to defray up to the county twenty percent share of the overall
cost of Medical Assistance administration and related activities delivered in the
county, including the Costs allocated to the administration of each, and shall
include in the tax levy the funds appropriated for that purpose
Board of County
Commissioners for each county shall annually appropriate as provided by law the
funds necessary to defray up to the county twenty percent share of the overall
cost of Medical Assistance administration and related activities delivered in the
county, including the Costs allocated to the administration of each, and shall
include in the tax levy the funds appropriated for that purpose. Such
appropriation shall be based upon the County Department budget prepared by
the County Department Director.
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2.
Board of County Commissioners Responsible for Availability of up to Twenty
Percent Share
Additional funds shall be made available by the Board of County Commissioners
if the county funds so appropriated prove insufficient to defray up to the county
twenty percent share of actual costs for Medical Assistance administration.
3.
Approval of the County Department Budget
The Board of County Commissioners approves the final County Department
budget for administration of Medical Assistance eligibility determination and the
administration of the County Department.
4.
Distribution of the Budget
No later than thirty days following the beginning of the calendar year, the Board
of County Commissioners shall file the budget adopted pursuant to C.R.S. § 29-
1-108, including the budget message, with the Colorado Department of Local
Affairs, as set forth in C.R.S. § 29-1-113.
5.
Liability Insurance
The Board of County Commissioners shall purchase insurance for its officers,
employees and agents that protects them against any liability for injuries or
damages resulting from their negligence or other tortious conduct during the
course of their service or employment. The Board of County Commissioners can,
in writing, assume the risk and the financial responsibility of a reasonable
deductible.
6
The Board of County Commissioners shall purchase insurance for its officers,
employees and agents that protects them against any liability for injuries or
damages resulting from their negligence or other tortious conduct during the
course of their service or employment. The Board of County Commissioners can,
in writing, assume the risk and the financial responsibility of a reasonable
deductible.
6.
Surety Bond or Insurance
A surety bond shall be purchased for the County Department Director and other
County Department employees, who receive, disburse, handle or have access to
currency, checks, money orders, and warrants. The bond shall be in favor of the
County Department and be the greater of $10,000 or 15% of the maximum value
of Cash and or cash-like items the County Department Director and employees
have access to during a year. In lieu of a surety bond, crime insurance coverage
may be purchased. This can also be satisfied with liability insurance purchased
through the Colorado Counties Casualty and Property Pool. The Board of County
Commissioners can, in writing, assume the risk and the financial responsibility of
a reasonable deductible. This bonding requirement applies to any contractual
employees having the same responsibilities.
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12
7.
Sign All Warrants
One member of the County Board shall have their Signature on all social/human
services warrants. In the case of a Signature there shall be detailed written
procedures that set forth accounting and fiscal internal controls surrounding the
application of the Signature.
8.
Approve All Medical Assistance Expenditures
Pursuant to C.R.S. § 30-11-107(b), the County Board shall review and approve
all Medical Assistance expenses of the County.
9
e their Signature on all social/human
services warrants. In the case of a Signature there shall be detailed written
procedures that set forth accounting and fiscal internal controls surrounding the
application of the Signature.
8.
Approve All Medical Assistance Expenditures
Pursuant to C.R.S. § 30-11-107(b), the County Board shall review and approve
all Medical Assistance expenses of the County.
9.
Federal Compliance on Pass Through Funds and Establishment of
Contract/Agreement Policies and Procedures
The County Board is responsible for establishing policies and procedures
regarding entering into Contracts, grants, block grants, and other agreements
binding on the county, and complying with applicable federal and state Program
laws and Regulations even though the funds were passed through the State
Department. Per C.R.S. § 30-11-107(1)(aa), the County Board may delegate its
power to enter into such Contracts and agreements where amounts specified
comply with limits and requirements set forth in such policies and procedures.
10.
Financial Statements and Reporting
The County Board is ultimately responsible for appointing a designee for the
preparation, content, completion and/or distribution of materially correct financial
statements of the social/human services fund. Pursuant to C.R.S. § 30-11-121,
such person shall serve at the pleasure of the County Board.
a.
Financial Reports Follow Generally Accepted Governmental Accounting
Principles
Each monthly reporting period shall be regarded as an integral part of the
fiscal year. Revenues shall be allocated to monthly reporting periods in
accordance with generally accepted governmental accounting principles.
Medical Assistance expenditures, such as salaries and operating
expenditures, shall be allocated to interim periods in which they were
incurred. Arbitrary assignment to a monthly period shall not be allowed.
b
d shall be regarded as an integral part of the
fiscal year. Revenues shall be allocated to monthly reporting periods in
accordance with generally accepted governmental accounting principles.
Medical Assistance expenditures, such as salaries and operating
expenditures, shall be allocated to interim periods in which they were
incurred. Arbitrary assignment to a monthly period shall not be allowed.
b.
Financial Reports Come from the General Ledger
The county general ledger and supporting systems to the general ledger
shall be the system used to record the county financial information and the
system from which standard reports shall be prepared and forwarded to
the County Board of Social/Human Services.
CODE OF COLORADO REGULATIONS
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Executive Director of Health Care Policy and Financing
13
11.
Responsibility for Fiscal Medical Assistance Record Retention
The County Board shall retain all necessary and complete fiscal Medical
Assistance records retained for audit purposes and ensure that adequate prior
years' Medical Assistance expenditure documents are maintained for use in the
budgeting process. Fiscal Medical Assistance Records include but are not limited
to general ledger, accounting source documents, personnel and Payroll records,
time sheets, and canceled checks.
a.
Three years of financial records from the date of the submission of the
final financial report will be retained for other federally funded Programs.
Exceptions to the records retention requirement:
i.
If litigation or audit began prior to when the three-year period
expires, records are retained until resolution or final action is taken.
ii.
State Department notifies the County Board in writing to extend the
retention period.
iii.
Records are transferred to the federal agency.
12.
Responsibilities for County-wide Functions/Reporting
The County Board shall ensure that countywide functions and/or reporting
responsibilities normally administered by a department other than social/human
department services are fulfilled.
ion is taken.
ii.
State Department notifies the County Board in writing to extend the
retention period.
iii.
Records are transferred to the federal agency.
12.
Responsibilities for County-wide Functions/Reporting
The County Board shall ensure that countywide functions and/or reporting
responsibilities normally administered by a department other than social/human
department services are fulfilled. .
1.010.4
Financial and Budgetary Responsibilities of the County Department
Director
1.
Responsibility for Accounting and Fiscal Internal Control
The County Department Director is responsible for organizing staff functions to
assure adequate control and safeguards for all Cash, fixed assets and negotiable
items (checks and money orders) handled by, stored in or used in the County
Department and establish appropriate fiscal internal controls and separation of
duties.
a.
Fiscal Internal Control Activities
Fiscal internal control activities include, but are not limited to, reviews by
the County Department Director or high level financial staff member of
actual performance, controls over information processing, physical
controls over vulnerable assets, , segregation of duties, proper execution
of transactions, accurate and timely recording of transactions, and access
restrictions to and accountability for resources and records.
2.
Budgetary Responsibility
CODE OF COLORADO REGULATIONS
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Executive Director of Health Care Policy and Financing
l performance, controls over information processing, physical
controls over vulnerable assets, , segregation of duties, proper execution
of transactions, accurate and timely recording of transactions, and access
restrictions to and accountability for resources and records.
2.
Budgetary Responsibility
CODE OF COLORADO REGULATIONS
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14
a.
Budget Preparation
As part of the county budget, the County Department Director shall
prepare a County Department budget and submit this to the County Board
for approval.
b.
Annual Budgets
The County Department Director shall be responsible for estimating future
needs of the County Department as accurately as possible, utilizing all
available data.
c.
Spending Within Budgeted Appropriations
The County Department Director shall be responsible for assuring that
Medical Assistance expenditures do not exceed appropriations and for
controlling the county fund balance at all times. If the County Department
Director anticipates overspending, this should be communicated to the
State Department prior to the over expenditure for Medical Assistance
occurs.
d.
Budget Revisions
The County Department Director shall be responsible for initiating
requests to the County Board for changes in the County Department
budget.
e.
Delegation of County Department Director Fiscal Responsibilities
The County Department Director can delegate fiscal responsibilities to a
County designee so long as the County Department Director is ultimately
responsible for those delegated functions and the County Department
maintains written documentation of the delegation.
1.010.5
County Treasurer
1.
County Treasurer Shall Act As Custodian
Pursuant to C.R.S. § 26-1-123, the County Treasurer shall be the treasurer and
custodian of the social/human services fund and shall disburse money from the
fund only upon distinct County Department warrants drawn by the person duly
appointed by the County Board.
2
unty Department
maintains written documentation of the delegation.
1.010.5
County Treasurer
1.
County Treasurer Shall Act As Custodian
Pursuant to C.R.S. § 26-1-123, the County Treasurer shall be the treasurer and
custodian of the social/human services fund and shall disburse money from the
fund only upon distinct County Department warrants drawn by the person duly
appointed by the County Board.
2.
Bank Accounts External to County Treasurer’s Office
To prevent unauthorized closures and access, bank accounts external to the
County Treasurer’s Office, which contain County match dollars intended for
federal and state reimbursement, are not permitted.
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10 CCR 2505-5
Executive Director of Health Care Policy and Financing
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3.
County Treasurer's Reports
The County Treasurer, or county entity acting as the County Treasurer, shall
prepare a monthly report to the County Department Director and the County
Board, which indicates a beginning balance of Cash, the amount of monies
deposited into the social/human services fund each month, the warrants
redeemed by the treasurer or designated redemption entity each month, and an
ending Cash balance. Alternate forms of tracking the monthly amounts of Cash
through a redemption entity are also accepted. One example of this is the use of
a zero balance account(s) where the balance of this account(s) at any point in
time is the amount of unredeemed warrants.
4.
No County Treasurer's Fee for Social/Human Services Fund
The County Treasurer, or county entity acting as the County Treasurer, shall not
collect any fee for the collection or deposit of any monies into the county
social/human services fund.
1.010.6
Chart of Accounts
A chart of account system shall reflect the order of the Statement of Net Assets/Balance
Sheet and Statement of Activity/Statement of Revenues and Expenditures accounts
/Human Services Fund
The County Treasurer, or county entity acting as the County Treasurer, shall not
collect any fee for the collection or deposit of any monies into the county
social/human services fund.
1.010.6
Chart of Accounts
A chart of account system shall reflect the order of the Statement of Net Assets/Balance
Sheet and Statement of Activity/Statement of Revenues and Expenditures accounts.
The structure shall start with the accounts that go into current assets, the first section of
the balance sheet, and end with the last category of expenses in the income statement.
1.010.7.
General Ledger
1.
Double-Entry General Ledger
Each county social/human services fund shall maintain a double-entry general
ledger system that is the basis for the accounting system and for financial
reporting. The general ledger shall be the location in which all of the active
accounts are collected.
2.
General Ledger in Balance
The general ledger shall be in balance at all times, with aggregate debits
equaling aggregate credits.
3
Qualified Staff to Maintain and Utilize the County t Accounting System
Only county staff experienced in bookkeeping and accounting shall maintain and
utilize the County Department accounting system for the county social/human
services fund.
4.
Subsidiary Journals
Subsidiary journals shall be maintained to support the general ledger.
CODE OF COLORADO REGULATIONS
10 CCR 2505-5
Executive Director of Health Care Policy and Financing
tilize the County t Accounting System
Only county staff experienced in bookkeeping and accounting shall maintain and
utilize the County Department accounting system for the county social/human
services fund.
4.
Subsidiary Journals
Subsidiary journals shall be maintained to support the general ledger.
CODE OF COLORADO REGULATIONS
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Executive Director of Health Care Policy and Financing
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5.
Postings Are to Be Current
The accounting system shall be kept current. Each month's Medical Assistance
transactions shall be recorded to the general ledger as soon as possible after all
information is received concerning receipts, expenditures, disbursements, actual
revenue, and deferred revenue, for a month.
6.
Budgetary Accounts
The budget amounts for each calendar year shall be entered in the county
general ledger or budget system used by the county. The amounts noted shall
reflect the final budget as approved by the Board of County Commissioners or
other governing body with authority to approve the budget. If the budget is
subsequently revised, the amounts by program shall be posted to the
appropriation and estimated revenue accounts.
1.010.8.
Financial Statement Reporting
1.
Prepare in Accordance with Generally Accepted Accounting Principles (GAAP)
issued by the Governmental Accounting Standard Board (GASB)
Financial statements shall be prepared in accordance with generally accepted
accounting principles for government entities.
2.
Reflect All Financial Activities
Financial statements shall reflect all of the financial activities of the County
Department.
3.
Additional Financial Reports
Additional reports to fully disclose the operations of the County Department shall
be tailored to meet the County Department’s needs and enhance the ability to
make timely and accurate decisions
counting principles for government entities.
2.
Reflect All Financial Activities
Financial statements shall reflect all of the financial activities of the County
Department.
3.
Additional Financial Reports
Additional reports to fully disclose the operations of the County Department shall
be tailored to meet the County Department’s needs and enhance the ability to
make timely and accurate decisions. Reports shall include but are not limited to
such items as: comparison of budget to actual for programs or organizational
units; efficiencies and economies in operations; and the results of specific
programs and activities, as reflected in accomplishments, benefits, and
effectiveness; and compliance with grant requirements and administrative
policies.
1.010.9.
Accounting and Fiscal Internal Controls
1.
Personnel Responsible for Accounting and Fiscal Internal Controls
The County Board, the County Department Director, County Department
managers and supervisors, and employees are all responsible for the
accounting and fiscal internal control processes within and surrounding
the County Department.
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17
a.
Signature Authority
The County Department shall identify those persons authorized to sign or
approve specific documents for another person. The County Department
Director shall approve of such listings that shall contain the name(s) and
of those persons delegated Signature authority.
b.
Personnel
There shall be personnel of quality, integrity, and experience
commensurate with their assigned responsibilities.
c.
Access to Assets
There shall be restrictions permitting access to assets only by authorized
persons in the performance of their assigned duties.
2.
Written Plan of Accounting and Fiscal Internal Controls
The county is responsible for establishing and maintaining a documented
accounting and fiscal internal controls plan that shall be on file at the County
Department
ir assigned responsibilities.
c.
Access to Assets
There shall be restrictions permitting access to assets only by authorized
persons in the performance of their assigned duties.
2.
Written Plan of Accounting and Fiscal Internal Controls
The county is responsible for establishing and maintaining a documented
accounting and fiscal internal controls plan that shall be on file at the County
Department. This plan shall reflect the current operations of the County
Department and shall provide for but not be limited to the following:
a.
Accounting and Fiscal Internal Controls Procedures
There shall be adequate authorization and procedures to provide effective
accounting control over assets, liabilities, revenues, and expenditures.
b.
Continuous Review of the Accounting and Fiscal Internal Controls Plan.
There shall be an effective process of internal review and adjustment for
changes in operating conditions.
c.
Purchasing or Procurement Cards (P-Cards)
If the County Department utilizes a p-card program, tthe County
Department Director is responsible for establishing and maintaining written
department-specific p-card program policies and procedures that include,
but are not limited to, purchasing approvals, accounting controls,
cardholder compliance and training for employees participating in the p-
card program.
3.
Separation of Duties
There shall be fiscal internal control procedures that include the appropriate
separation of duties such as, but not limited to the following:
a.
Separation of Duties for the Receipt and Recording of Cash
CODE OF COLORADO REGULATIONS
10 CCR 2505-5
Executive Director of Health Care Policy and Financing
pliance and training for employees participating in the p-
card program.
3.
Separation of Duties
There shall be fiscal internal control procedures that include the appropriate
separation of duties such as, but not limited to the following:
a.
Separation of Duties for the Receipt and Recording of Cash
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10 CCR 2505-5
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18
The same employee shall not receive Cash, record the receipt, deposit the
funds, and make journal and/or ledger entries for Cash.
b.
Separation of Duties for the Receipt of Negotiable Items and the Control of
Negotiable Items
The same employee shall not receive negotiable items, dispense these
items and control the repository and the inventory of them.
c.
Separation of Duties, Ordering and Paying for Goods and Services
The same employee shall not order, receive, and process payment for
goods and/or services. Orders for goods and/or services are to be
approved in writing by the County Department Director prior to placing
such orders. There shall be written approval from the County Department
Director prior to payment being made for goods and services received.
4.
Effectiveness and Efficiency of Operations
There shall be an appropriate balance between accounting and fiscal internal
controls, and the effectiveness and efficiency of operations.
5.
Reliable Financial Reporting
There shall be systems in place for the accurate and timely compilation of
financial reports.
6.
Compliance with Applicable Laws and Regulations
There shall be a review process to ensure compliance with the many and varied
laws, Rules and Regulations that are included with the administration of federal
grants.
7.
Official Receipts
a.
Consecutively Numbered Receipt Book
County Departments shall maintain manual or automated receipt books
with receipts numbered consecutively. Manual receipt books shall be pre-
numbered.
b.
Mail Listing of All Negotiable Items
There shall be a listing at the point the mail is opened for all negotiable
items
ations that are included with the administration of federal
grants.
7.
Official Receipts
a.
Consecutively Numbered Receipt Book
County Departments shall maintain manual or automated receipt books
with receipts numbered consecutively. Manual receipt books shall be pre-
numbered.
b.
Mail Listing of All Negotiable Items
There shall be a listing at the point the mail is opened for all negotiable
items. This mail listing shall be prepared by the person opening the mail
and by someone other than the bookkeeper/accountant.
c.
Restrictively Endorsed Negotiable Items
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19
Each County Department shall have a restrictive endorsement stamp and
each negotiable item shall be immediately stamped with a restrictive
endorsement at the point the mail is opened.
d.
Separation of Duties for Mail List Preparation and Receipt Writing
The preparation of the mail and the writing of receipts, whether automated
or manual, shall be performed by different people. If possible, the monies
shall be sent to another person for preparation of the deposit.
8.
Deposit of All Cash
All Cash or negotiable items made payable to the County Department shall be
deposited directly into the social/human services fund.
a.
Daily Deposit of All Cash Totaling $500 or More
Monies shall be deposited daily unless the total amount received is less
than $500.00. Once the cumulative amount of monies received equals
$500 or more, it shall be deposited no later than the next business day.
Sufficient security shall be provided to secure Cash and negotiable items
against theft or loss.
b.
Cash Receipts Shall Equal Cash Deposits
The Cash receipt total shall be the same as the amount deposited.
c.
Reconcile the Mail List to the Receipts to the Deposits
At least at the end of each month, the mail listing and the listing of receipts
shall be reconciled with the amount deposited and any differences shall be
noted and reconciled.
d
cure Cash and negotiable items
against theft or loss.
b.
Cash Receipts Shall Equal Cash Deposits
The Cash receipt total shall be the same as the amount deposited.
c.
Reconcile the Mail List to the Receipts to the Deposits
At least at the end of each month, the mail listing and the listing of receipts
shall be reconciled with the amount deposited and any differences shall be
noted and reconciled.
d.
Identification of Cash Receipts
At a minimum, Cash receipts shall include information to distinguish
Colorado Department of Health Care Policy and Financing remittances,
county revenues, plus receipts from individuals, Vendors, and other
sources.
e.
Maintain a Cash Receipts Journal
The county shall record the monies received for deposit into the
social/human services fund on a Cash receipts journal. The Cash receipts
journal shall record the receipt transactions for a calendar month.
f.
Receipt of Negotiable Items Not Made Payable to the County Department
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20
If the county must accept negotiable items made payable to others, the
county shall initiate a procedure to record the county receipt of the
negotiable item, the amount of the negotiable item, the sender, the payee,
the reason the transaction must be handled in this way, and the date the
negotiable item was forwarded to the payee. All available methods to
eliminate or minimize these transactions shall be undertaken by the
county.
9.
Reconciliation of County Information with Statewide Financial Automated
Systems
a.
The county reimbursement or billing will be based on the information that
is transmitted by the statewide- automated tracking systems to the CFMS.
The County Departments shall reconcile their own information with the
Medical Assistance expenditures, reimbursements, and billing information
documented in the statewide automated tracking systems and the State
financial reporting system.
b
Systems
a.
The county reimbursement or billing will be based on the information that
is transmitted by the statewide- automated tracking systems to the CFMS.
The County Departments shall reconcile their own information with the
Medical Assistance expenditures, reimbursements, and billing information
documented in the statewide automated tracking systems and the State
financial reporting system.
b.
Correct Coding of Information
The county shall correctly code all information reported to CFMS. These
codes determine whether the Medical Assistance expenditure falls within
budgetary allocations, disregards budgetary maximums or is a special
project.
i.
Reimbursable and Non-Reimbursable Costs
Some Costs have a reimbursable portion and a non-reimbursable
portion. The county shall split and appropriately code these Costs
for reporting in the CFMS.
c.
Reporting of Refunds
All refunds collected for previously reimbursed Medical Assistance
expenditures shall be reported in the CFMS. This reporting shall follow the
procedures of the statewide automated tracking systems and/or the
financial reporting systems.
d.
Over-collections
If the County Department collects more money from a payer than the
amount established as due, a County Department warrant shall be issued
to the payer to repay this over-collection within 30 business days of
determining the over-collection.
1.010.10.
Balance Sheet Accounts
1.
Social/Human Services Fund
CODE OF COLORADO REGULATIONS
10 CCR 2505-5
Executive Director of Health Care Policy and Financing
the County Department collects more money from a payer than the
amount established as due, a County Department warrant shall be issued
to the payer to repay this over-collection within 30 business days of
determining the over-collection.
1.010.10.
Balance Sheet Accounts
1.
Social/Human Services Fund
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21
A fund to be known as the social/human services fund shall be established and
maintained in each of the counties of the State of Colorado.
a.
Separate from Other Funds
The social/human services fund in each county shall be accounted for
separately from any other funds in the county so that the cash balance in
the social/human services fund can be determined at all times.
b.
Special Revenue Fund
The social/human services fund shall be maintained as a special revenue
fund and used to account for the proceeds of specific revenue sources
that are legally restricted to Medical Assistance expenditures for specified
purposes.
c.
Includes All Medical Assistance
The social/human services fund shall include all money appropriated by
the Board of County Commissioners for the County Department’s
administration of Medical Assistance eligibility and enrollment and related
purposes.
d.
Includes All Colorado Department of Health Care Policy and Financing
and Federal Funds
The social/human services fund shall include all money allotted, allocated,
or apportioned to the county by the State Department. These funds are
granted by the State of Colorado and by the federal government for
Medical Assistance eligibility and enrollment and related purposes and
paid to the county by the State Department.
e.
Composition of the Social/Human Services Fund
The fund consists of:
i.
Assets,
ii.
Liabilities,
iii.
Approved budget, and
iv.
Fund balance (surplus or deficit of local revenues, both current and
prior year).
2.
Cash and Warrants
a.
Cash Reconciliation(s)
the federal government for
Medical Assistance eligibility and enrollment and related purposes and
paid to the county by the State Department.
e.
Composition of the Social/Human Services Fund
The fund consists of:
i.
Assets,
ii.
Liabilities,
iii.
Approved budget, and
iv.
Fund balance (surplus or deficit of local revenues, both current and
prior year).
2.
Cash and Warrants
a.
Cash Reconciliation(s)
CODE OF COLORADO REGULATIONS
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Executive Director of Health Care Policy and Financing
22
i.
Performed within 30 business Days
All Cash accounts are to be reconciled within 30 business days
following the current month-end.
ii.
Warrants Redeemed List
A redeemed warrant listing(s) shall be retained or alternative
procedures should be in place to reconcile the Cash balance of the
social/human services fund. The reconciliation of the fund shall be
based on warrants written and warrants outstanding along with
other reconciling items to agree the book balance of the Cash in the
account with the actual Cash balance of the social/human services
fund.
iii.
Retain Redeemed Warrants
The redeemed warrants shall be retained, filed in numerical
sequence or by date redeemed, and available for audit. A facsimile
listing of redeemed warrants provided by the financial institution
shall be acceptable.
b.
Date of Warrant Issue
The date of issue on a warrant must be on or before the date of mailing.
i.
Delivery
On the established pay date, all member and Vendor warrants shall
be mailed to the last known address of the payee. Member and
Vendor warrants shall only be hand delivered to payees if the
County Department has the appropriate Internal Controls in place.
Employee compensation or employee travel reimbursement may be
hand delivered with appropriate Internal Control surrounding the
delivery.
c
livery
On the established pay date, all member and Vendor warrants shall
be mailed to the last known address of the payee. Member and
Vendor warrants shall only be hand delivered to payees if the
County Department has the appropriate Internal Controls in place.
Employee compensation or employee travel reimbursement may be
hand delivered with appropriate Internal Control surrounding the
delivery.
c.
Warrant Redemption Period of 180 calendar Days
Each warrant drawn on and issued from the social/human services fund
shall bear a notation clearly printed in a prominent position upon its face,
stating that the warrant is void after a predetermined number of days, for
example: “Void after 180 calendar days from issue date.”
i.
Exception to Rule
County Departments shall not have the option of using a time
period longer than 180 calendar days for canceling warrants but
may use a shorter period of time for cancellation of the warrants.
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ii.
Canceling Warrants
Any warrants outstanding after the specified time period shall be
canceled in accordance with the county internal control procedures
or by resolution of the County Board at their next County Board
meeting with the stipulation that should such warrant be presented
for payment, a new warrant shall be issued.
iii.
Stale Dated Warrants
A stop-payment order will be issued to the County Treasurer or
county redemption entity at the time the warrant cancellation
resolution is passed.
d.
Forged Warrants
i.
County Procedure
Disposition of the forged warrant shall follow whatever steps are
available at the county level to recover the amount of the forged
warrant.
ii.
Non-Reimbursable
The Medical Assistance expenditure as a result of a forged warrant
is non-reimbursable. If the amount is collected (from the forger or
through return through the banking system) the refund is not
reported through the CFMS.
1.010.11.
Accounts Receivable
1
he forged warrant shall follow whatever steps are
available at the county level to recover the amount of the forged
warrant.
ii.
Non-Reimbursable
The Medical Assistance expenditure as a result of a forged warrant
is non-reimbursable. If the amount is collected (from the forger or
through return through the banking system) the refund is not
reported through the CFMS.
1.010.11.
Accounts Receivable
1.
Establish Accounts Receivable
The County Department shall establish recoveries due from Members for all
fiscal and administrative areas in a manner consistent with 10 C.C.R § 2505-5
1.020.
2.
Interest Payment on Delinquent Accounts Receivables
a.
Statutory Interest
If permitted by Program Rules, a delinquent receivable not already
assigned an interest rate may be assessed interest at the statutory rate as
set by C.R.S. § 5-12-102.
b.
Interest begins after payment becomes due or from the date of mutual
settlement
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24
Interest of eight percent per annum compounded annually can be
collected for all monies after they become due, or money due on mutual
settlement of accounts from the date of such settlement and on money
due on account from the date when the same became due.
c.
Interest Stated Separately
Interest liability incurred shall be presented on each billing statement as a
separate amount from the original amount due.
3.
Monthly Billing for Accounts Receivable
The billing shall be supported by the details of the amount owed, prepared by the
County Department referencing the delinquent receivable, the number of days of
interest to be paid if applicable, and the interest rate if applicable.
4.
Aging Accounts Receivable
Each month every account receivable shall be aged in increments of 1-30
calendar days past due, 31-60 calendar days past due, 61-90 calendar days past
due, and 91 or more calendar days past due.
a
t owed, prepared by the
County Department referencing the delinquent receivable, the number of days of
interest to be paid if applicable, and the interest rate if applicable.
4.
Aging Accounts Receivable
Each month every account receivable shall be aged in increments of 1-30
calendar days past due, 31-60 calendar days past due, 61-90 calendar days past
due, and 91 or more calendar days past due.
a.
Referral of Accounts Receivable to a Collection Agency
When a county has exhausted its collection resources on a claim, the
claim shall be referred to a collection agency and written off.
5.
Accounts Receivable Recorded in the General Ledger
The total amount of recoveries due shall be recorded in the county's general
ledger accounting system. The account will be adjusted at a minimum each
quarter reflecting additional amounts due and collections received.
6.
Accounts Receivable, Subsidiary Journal
The county shall maintain detailed subsidiary journals and the total of the
subsidiary journals must equal the amount(s) recorded in the general ledger
accounting system for accounts receivable.
1.010.12.
Fixed Assets
1.
Inventory
The County Department shall be responsible for a physical inventory, at least
every two years, of property, both real and personal, belonging to the County
Department. An inventory shall be required only with respect to items of property
having an original cost that equals or exceeds $10,000.00. For control purposes
a County Department may establish an amount less than $10,000.00.
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y two years, of property, both real and personal, belonging to the County
Department. An inventory shall be required only with respect to items of property
having an original cost that equals or exceeds $10,000.00. For control purposes
a County Department may establish an amount less than $10,000.00.
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a.
To maintain the federal identity of a capital asset, the County must
properly track and account for the asset, ensuring it is clearly identified as
a federal asset, and adhering to federal Regulations for its use and
disposal. 2 C.F.R. Part 200 Subpart D Property Standards is hereby
incorporated by reference and outlines insurance coverage and property
standards for real property and Equipment acquired or improved with
federal funds. For example, the County may have a central property
management database whereby county staff conduct a physical inventory,
at least every two years; however, the County Department Director is
responsible for accounting for assets funded by the Medical Assistance
Program.
2.
Property Records
Each County Department shall maintain detailed property records disclosing the:
a.
Serial number or another identification number
b.
Date acquired,
c.
Cost of the fixed asset or value at the time of donation,
d.
Specific Program fund or Cost Pool used to acquire the fixed asset,
e.
Any alterations made to the fixed asset, and
f.
The physical location of the fixed asset.
3.
Useful Life, Use and Disposal
a.
Useful Life
The fixed asset acquired must be used by, and in, the County Department
for the useful life of the asset. Useful life will be the same as defined by
the Internal Revenue Service for straight-line depreciation for that class of
asset as discussed in the Internal Revenue Manual 1.35.6, Property and
Equipment Accounting (2024), which is hereby incorporated by reference.
b
and Disposal
a.
Useful Life
The fixed asset acquired must be used by, and in, the County Department
for the useful life of the asset. Useful life will be the same as defined by
the Internal Revenue Service for straight-line depreciation for that class of
asset as discussed in the Internal Revenue Manual 1.35.6, Property and
Equipment Accounting (2024), which is hereby incorporated by reference.
b.
Use for the County Department
The County Department must use the fixed asset for the program for
which it was acquired and for as long as needed. The County Department
must not encumber the fixed asset without prior approval of the State
Department..
c.
Discontinuance of Asset or Program
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If fixed assets were purchased for a Program that has been discontinued
or the asset is no longer needed, the County Department must follow
disposition instructions from the State Department which will consist of
retaining, selling, or transferring the title after compensating the State
Department for the amount owed to the U.S. Department of Health and
Human Services. This federal agency is entitled to an amount calculated
by multiplying the percentage of the federal portion towards the original
purchase by the current market value or proceeds from the sale/transfer.
The State Department will advise the County on where the credit should
be posted. If the State Department fails to provide requested disposition
instructions within 120 days, fixed assets with a current fair value in
excess of $10,000 per unit may be retained or sold by the County
Department.
4.
Recorded in the General Ledger
The total dollar amount of fixed assets shall be recorded in the general ledger
and shall be supported by and agree to the detailed property records that
disclose the funding source of the assets.
5
uested disposition
instructions within 120 days, fixed assets with a current fair value in
excess of $10,000 per unit may be retained or sold by the County
Department.
4.
Recorded in the General Ledger
The total dollar amount of fixed assets shall be recorded in the general ledger
and shall be supported by and agree to the detailed property records that
disclose the funding source of the assets.
5.
Donated Fixed Assets
Fixed assets donated to a County Department shall be recorded at the fair
market value on the date of the gift and treated as purchased Equipment for
inventory and accounting purposes.
6.
Leased Fixed Assets With No Intent to Purchase
The fixed asset so acquired must be used by, and in, the County Department for
the term of the lease.
a.
Interest
Interest is allowable per the restrictions found in this rule manual, section
1.010.11.3.
b.
Allowable Cost in a Sale and Leaseback
Costs under sale and leaseback arrangements are allowable only up to
the amount that would be allowed had the County Department continued
to own the fixed asset.
c.
Limit on Amount of Reimbursement
Fixed assets rented by the county with no intent to purchase are
reimbursable only up to the amount of the annual depreciation had the
county purchased the asset.
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7.
Capital Lease of Fixed Assets
Costs under leases, are allowable only up to the amount that would be allowed
had the county purchased the fixed asset on the date the lease agreement was
executed. This amount would include expenses such as depreciation or use
allowance, maintenance, and insurance.
a.
No County shall enter into any financed purchase of an asset whose duration,
including all optional renewal terms, exceeds the weighted average useful life of
assets being financed, as set forth in C.R.S. 29-1-103(3)(e)(I).
1.010.13.
Revenue
1
asset on the date the lease agreement was
executed. This amount would include expenses such as depreciation or use
allowance, maintenance, and insurance.
a.
No County shall enter into any financed purchase of an asset whose duration,
including all optional renewal terms, exceeds the weighted average useful life of
assets being financed, as set forth in C.R.S. 29-1-103(3)(e)(I).
1.010.13.
Revenue
1.
County Tax Revenue
The county government, through the budget process, determines the amount of
county tax revenue that will be deposited into the social/human services fund
during a calendar year.
a.
Apportioned Taxes
County tax revenue apportioned to the social/human services fund
includes but is not limited to:
i.
Levy on assessed valuation of property, and
ii.
Specific ownership taxes.
b.
Deposits are Revenues
The county shall record the actual deposits made each month to the
social/human services fund from information furnished by the County
Treasurer. No calculation of earned revenue from county sources is
necessary month by month.
2.
Miscellaneous Revenue
a.
Revenue from Social/Human Services Costs
All revenue received by a county or County Department, as a result of part
or all of the costs being borne by a social/human services Program, shall
be deposited into the social/human services fund.
b.
Donations and Gifts
Unrestricted bequests, gifts or donations to the County Department are
used as local revenue. If a restricted donation to the county is invested
and the income from the investment is not restricted, such income is a
source of local revenues.
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into the social/human services fund.
b.
Donations and Gifts
Unrestricted bequests, gifts or donations to the County Department are
used as local revenue. If a restricted donation to the county is invested
and the income from the investment is not restricted, such income is a
source of local revenues.
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3.
State and/or Federal Revenue and Payables
a.
Monthly Posting to the General Ledger
Accounting entries to record the County Department calculation of the
monthly earned revenues and electronic benefit authorization payables
shall be posted monthly to the county general ledger.
1.010.14
Medical Assistance Expenditures and Allowable versus Unallowable
Costs
A Medical Assistance expenditure must benefit the Program for which it is incurred,
meaning that any cost charged to Medical Assistance must be directly related to those
that are necessary for achieving the specific goals and objectives of the federal
Program, essentially ensuring that funds are used only for activities that are in
accordance with Program guidelines and the 2 C.F.R. Part 200 Cost Principles.
1.
Costs are allowable if they are reasonable, necessary, and allocable to Medical
Assistance, as set forth in 2 C.F.R. § 200.403, which is hereby incorporated by
reference, and if they comply with funding statute and State Department
requirements.
b.
Medical Assistance Expenditures Shall Be Necessary and Reasonable
Medical Assistance Expenditures shall be necessary and reasonable for
proper and efficient performance and administration. A cost is reasonable
if, in its nature and amount, it meets all the following criteria
c
Medical Assistance Expenditures Shall Be Compared to Market Prices for
Reasonableness
i.
Medical Assistance Expenditures shall be compared to the market
prices for comparable goods or services as a test for
reasonableness.
ii
be necessary and reasonable for
proper and efficient performance and administration. A cost is reasonable
if, in its nature and amount, it meets all the following criteria
c
Medical Assistance Expenditures Shall Be Compared to Market Prices for
Reasonableness
i.
Medical Assistance Expenditures shall be compared to the market
prices for comparable goods or services as a test for
reasonableness.
ii.
Medical Assistance Expenditures Shall Be Ordinary and Necessary
Medical Assistance Expenditures shall be of a type generally
recognized as ordinary and necessary for the operation of the
governmental unit or the performance of the federal award.
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iii.
Medical Assistance Expenditures Shall Meet Standards Such as
Sound Business Practices and Arms-Length Bargaining
Medical Assistance Expenditures shall have restraints or
requirements imposed by such factors as: sound business
practices; arms-length bargaining; federal, State and other laws
and Regulations; and, terms and conditions of the State and/or
federal award.
iv.
Medical Assistance Expenditures Shall Be the Same as Would Be
Incurred by a Prudent Person
Medical Assistance Expenditures shall not exceed that which would
be incurred by a prudent person under the circumstances prevailing
at the time the decision was made to incur the cost. A prudent
person is one who considers their responsibilities to the
governmental unit, its employees, the public at large, and the
federal government.
d.
Medical Assistance Expenditures Shall Be Allocable
Medical Assistance Expenditures that are allocable must benefit the
federal Program to which they are being charged.
i.
Relative Benefits Received
A Cost is allocable to a particular cost objective if the goods or
services involved shall be chargeable or assignable to such cost
objective in accordance with the relative benefits received.
ii
nt.
d.
Medical Assistance Expenditures Shall Be Allocable
Medical Assistance Expenditures that are allocable must benefit the
federal Program to which they are being charged.
i.
Relative Benefits Received
A Cost is allocable to a particular cost objective if the goods or
services involved shall be chargeable or assignable to such cost
objective in accordance with the relative benefits received.
ii.
Cost Shifting to Fund Deficiencies
Any cost allocable to a particular federal award or cost objective
shall not be charged to other federal awards to overcome fund
deficiencies or to avoid restrictions imposed by law or terms of the
federal awards, or for other reasons. However, this prohibition shall
not preclude shifting costs that are allowable under federal and
State laws for two or more awards in accordance with existing
Program agreements.
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2.
Examples of Allowable versus Unallowable Costs
Per 2 C.F.R. Part 200 and each of the subsections of 2 C.F.R. Part 200 listed
below, all of which are hereby incorporated by reference, the following list
represents examples of allowable and unallowable costs; however, it is not
meant to be comprehensive. These are intended to cover the most common
types of costs incurred. Omission of a particular item does not indicate that it is
allowable or unallowable.
a.
Allowable costs are direct. The cost results in a direct benefit to Medical
Assistance. The cost can be easily and accurately traced to Medical
Assistance. Some Indirect Costs are also allowed.
i.
Advertising, as described in 2 C.F.R. § 200.421, which includes the
recruitment of personnel, e.g. help wanted ads.
ii.
Compensation for personal services, as described in 2 C.F.R. §
200.430, which includes remuneration for enrollment and eligibility
duties justified in a job description
e. The cost can be easily and accurately traced to Medical
Assistance. Some Indirect Costs are also allowed.
i.
Advertising, as described in 2 C.F.R. § 200.421, which includes the
recruitment of personnel, e.g. help wanted ads.
ii.
Compensation for personal services, as described in 2 C.F.R. §
200.430, which includes remuneration for enrollment and eligibility
duties justified in a job description. The County Department must
update job descriptions and use daily logs (100% time reporting) to
specifically justify enrollment and eligibility work. Routine fiscal and
budget activities do not fall under the compensation for personal
services for enrollment and eligibility services.
iii.
Compensation for fringe benefits, as described in 2 C.F.R. §
200.431, which includes fringe benefits for enrollment and eligibility
workers that are reasonable and are required by law, an entity-
employee agreement, or an established policy of the County
Department.
iv.
Conferences, as described in 2 C.F.R. § 200.432, which means an
event to disseminate technical information to the County
Department. Allowable Costs include rental of facilities, speakers’
fees, attendance fees, cost of meals and refreshments, and local
transportation.
v.
Defense and prosecution of criminal and civil proceedings, claims,
and appeals, as described in 2 C.F.R. § 200.435, which includes
the service costs that bear a direct relationship to a judicial or
administrative proceeding, provided by counsel, accountants,
counsel, accountants, consultants, or others engaged to assist the
County Department before, during, or after the commencement of
that proceeding.
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§ 200.435, which includes
the service costs that bear a direct relationship to a judicial or
administrative proceeding, provided by counsel, accountants,
counsel, accountants, consultants, or others engaged to assist the
County Department before, during, or after the commencement of
that proceeding.
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vi.
Employee health and welfare costs, as described in 2 C.F.R. §
200.437, which includes Costs incurred in accordance with the
County Department’s written policies for improving employee
health.
vii.
Depreciation, as described in 2 C.F.R. § 200.436, which can be
claimed as an indirect cost on items with a unit cost of $10,000 or
more. Assets may be depreciated or claimed as cost sharing but
not both. Depreciation may be calculated on the non-federal share
of the asset. Depreciation is not allowed on assets that have
outlived their depreciable lives.
viii.
Maintenance and repair, as described in 2 C.F.R. § 200.452, which
includes utilities, insurance, security, necessary maintenance,
janitorial services, repair, or upkeep of buildings and Equipment
which neither add to the permanent value of property nor
appreciably prolong its intended life but keep it in an efficient
operating condition.
ix.
Materials and supplies, including costs of computing devices, as
described in 2 C.F.R. § 200.453, that are necessary for the
performance of the Medical Assistance Program. Withdrawals from
general stores or stockrooms must be charged to the federal
Program based on their actual net cost, using a consistent
inventory valuation method in accordance with GAAP.
x.
Memberships, as described in 2 C.F.R. § 200.454, which includes
memberships in business, technical, or professional organizations
such as CGHSFOA and CHSDA.
xi.
Member participation, as described in 2 C.F.R
m. Withdrawals from
general stores or stockrooms must be charged to the federal
Program based on their actual net cost, using a consistent
inventory valuation method in accordance with GAAP.
x.
Memberships, as described in 2 C.F.R. § 200.454, which includes
memberships in business, technical, or professional organizations
such as CGHSFOA and CHSDA.
xi.
Member participation, as described in 2 C.F.R. § 200.456, means
support for Member participation in or attendance at Medical
Assistance activities, such as Member engagements, conferences,
or surveys facilitated by the County Department, and includes
stipends, travel allowances, registration fees, temporary dependent
care, and per diem paid directly to or on behalf of Members whose
perspectives or input are sought as part of the federal Program.
These costs must be documented in the County Department’s
written policies and procedures and treated consistently across all
federal awards.
xii.
Security, as described in 2 C.F.R. § 200.457, which includes the
protection and security of facilities, personnel, and work products.
xiii.
Publication and printing, as described in 2 C.F.R. § 200.461, which
includes electronic and print media.
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xiv.
Telecommunication and video surveillance, as described in 2
C.F.R. § 200.471, which includes phones, internet, video
surveillance and cloud servers, except for the prohibitions outlined
under the procurement section at 1.010.15.
b.
Unallowable Costs
An unallowable cost is an expense that cannot be charged to or
reimbursed by the federal grant, regardless of whether they are
reasonable or necessary. Costs must be directly related to the Medical
Assistance Program activities and not be mixed with other, unrelated
expenses.
i.
Direct funding provided by the County Department to the Applicant
or Member; this includes any Costs that are billable as claims
through the State Department claims payment system
or
reimbursed by the federal grant, regardless of whether they are
reasonable or necessary. Costs must be directly related to the Medical
Assistance Program activities and not be mixed with other, unrelated
expenses.
i.
Direct funding provided by the County Department to the Applicant
or Member; this includes any Costs that are billable as claims
through the State Department claims payment system. Examples
include gift cards or payments provided for Member needs such as
diapers, gasoline, car repairs, meals/snacks, entertainment
activities such as books/toys, rent, cell phone, medical equipment,
etc.
ii.
Alcoholic beverages, as described in 2 C.F.R .§ 200.423.
iii.
Single Audits, as described in 2 C.F.R. § 200.425, that fall under
the $1,000,000 threshold of federal expenditures.
iv.
Bad debts, as described in 2 C.F.R. § 200.426, which are debts
determined to be uncollectible.
v.
Contributions and donations, as described in 2 C.F.R. § 200.434,
which includes cash, property, and services from the County
Department to other entities.
vi.
Entertainment and prizes, as described in 2 C.F.R. § 200.438,
which includes amusement, social activities, gifts, or challenges.
vii.
Equipment and other capital Expenditures as Indirect Costs, as
described in 2 C.F.R. § 200.439(b)(7).
viii.
Fines, penalties, damages and other settlements, as described in 2
C.F.R. § 200.441, which includes legal judgments and settlements
against the County Department.
ix.
Fundraising and investment management, as described in 2 C.F.R
§ 200.442, which includes solicitation of gifts and bequests and
similar expenses to raise capital or obtain contributions.
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described in 2
C.F.R. § 200.441, which includes legal judgments and settlements
against the County Department.
ix.
Fundraising and investment management, as described in 2 C.F.R
§ 200.442, which includes solicitation of gifts and bequests and
similar expenses to raise capital or obtain contributions.
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x.
Goods or services for personal use of County Department
employees, as described in 2 C.F.R. § 200.445, regardless of
whether the cost is reported as taxable income to the employees.
xi.
Recruiting costs, as described in 2 C.F.R. § 200.463, which
includes special emoluments, fringe benefits, and salary
allowances incurred to attract professional personnel that do not
meet the test of reasonableness.
xii.
Scholarships, student aid costs, and tuition, as described in 2
C.F.R. § 200.466, where the purpose of the federal award is not to
provide training to participants and the federal agency has not
approved the cost.
xiii.
Selling and marketing costs, as described in 2 C.F.R. § 200.467,
which includes the selling and marketing of any Medical Assistance
products or services.
xiii.
Travel insurance paid by the traveler is not allowable for
reimbursement.
3.
Proper Classification of Federal Match Enhanced and Non-Enhanced Activities
The Patient Protection and Affordable Care Act Care made additional funds
available for specific activities related to Medical Assistance eligibility processing
and determination activities. Those specific identified administrative activities
relate to eligibility, enrollment, and supporting functions including customer
service and other required functions that support eligibility and enrollment. These
activities are referred to as “enhanced” which means a higher federal
reimbursement is provided. The table below describes the percentage of federal,
state, and local share of expenses that qualify for the enhanced reimbursement.
a
ities
relate to eligibility, enrollment, and supporting functions including customer
service and other required functions that support eligibility and enrollment. These
activities are referred to as “enhanced” which means a higher federal
reimbursement is provided. The table below describes the percentage of federal,
state, and local share of expenses that qualify for the enhanced reimbursement.
a.
Enhanced Activities
The following non-exhaustive list of Medical Assistance activities that can
be categorized as enhanced are reimbursable at the enhanced rate are
listed below.
Expense
Total
Percentage
Federal
Percentage
State
Percentage
Local
Percentage
Enhanced
100%
75%
15%
10%
i.
Enrollment and eligibility work performed in CBMS and supported
by job descriptions that accurately reflect the work being done.
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ii.
Call center staff providing activities related to eligibility
determination or on-going case maintenance and supported by job
descriptions that accurately reflect the work being done.
iii.
IT staff setting up or maintaining workstations for enrollment and
eligibility workers. Managing access and management of CBMS is
a State Department function.
iv.
Interpreters who perform enrollment and eligibility support activities
such as interpreting for Members in the enrollment and eligibility
process for applications, recertifications, and case maintenance.
This is supported by job descriptions or contractual agreements
that accurately reflect the work being done.
v.
Supervisory or leadership responsibilities directly related to
enrollment and eligibility processes such as intake, acceptance,
eligibility determinations, on-going Cash maintenance, and
customer services activities related to enrollment and eligibility
activities.
vi
d case maintenance.
This is supported by job descriptions or contractual agreements
that accurately reflect the work being done.
v.
Supervisory or leadership responsibilities directly related to
enrollment and eligibility processes such as intake, acceptance,
eligibility determinations, on-going Cash maintenance, and
customer services activities related to enrollment and eligibility
activities.
vi.
Operating expenses such as cleaning, repairs and maintenance,
telephone, travel, ADP equipment (printers, copiers, scanners),
office space, and office supplies consumed by enrollment and
eligibility workers, and those individuals that support or supervise
this work. Office space must be calculated on actual space
occupied by enrollment and eligibility staff and not be allocated
based on an FTE percentage.
b.
Non-enhanced Activities
All other Medical Assistance eligibility and enrollment activities that cannot
be categorized as enhanced as outlined above are reimbursable at the
non-enhanced rate. The following non-enhanced activities that cannot be
categorized as enhanced are outlined below and are reimbursable at the
non-enhanced rate. See the following table for the percentage of federal,
state, and local share of expenses that qualify at the non-enhanced
reimbursable rate.
Expense
Total
Percentage
Federal
Percentage
State
Percentage
Local
Percentage
Non-
Enhanced
100%
50%
30%
20%
i.
Call center staff functions related to benefits, general beneficiary
education, and plan choice, which are not functions delegated to
the County Department.
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non-enhanced
reimbursable rate.
Expense
Total
Percentage
Federal
Percentage
State
Percentage
Local
Percentage
Non-
Enhanced
100%
50%
30%
20%
i.
Call center staff functions related to benefits, general beneficiary
education, and plan choice, which are not functions delegated to
the County Department.
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ii.
Program integrity; once a case is determined eligible, the
enrollment and eligibility portion are complete; therefore, this covers
quality review, audit, and fraud activities.
iii.
Staff development and training.
iv.
Human resources and routine fiscal activities of accounting,
finance, and budget staff activity or other staff, unless these
employees complete enrollment and eligibility case activities or
inquiries.
v.
Attorneys or legal staff involved in the enrollment and eligibility
discussion or decision but not involved with CBMS.
vi.
Transportation is a post-eligibility activity which covers travel. For
additional guidance, see section 1.010.17 on travel.
viii.
Security and shredding services are not directly related to
enrollment and eligibility.
ix.
Repairs and maintenance on the County computer network and
other equipment such as firewall monitoring, electronic fax system,
text messaging service, telephone system, etc.
x.
Equipment and other capital Medical Assistance expenditures are
unallowable as Indirect Costs as set forth in 2 C.F.R. § 200.439,
which is hereby incorporated by reference.
xi.
Outreach activities that relate to eligibility and enrollment, including
personnel costs.
4.
Prior Written Approval
Prior written approval for the Medical Assistance Program means obtaining
explicit, documented permission from the State Department before undertaking
certain actions or incurring specific costs. This ensures that expenditures align
with the federal Program Regulations, preventing potential disallowances or
disputes
o eligibility and enrollment, including
personnel costs.
4.
Prior Written Approval
Prior written approval for the Medical Assistance Program means obtaining
explicit, documented permission from the State Department before undertaking
certain actions or incurring specific costs. This ensures that expenditures align
with the federal Program Regulations, preventing potential disallowances or
disputes.
To avoid disallowance, a County Department must seek prior written approval
from the State Department for the following non-exhaustive list of activities in
accordance with 2 C.F.R. § 200.407, which is hereby incorporated by reference.
Additional costs may also require prior written approval.
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a.
Cost Sharing
Acceptable contributions are verifiable in the County Departments records,
are not included in any other federal Program, are necessary and
reasonable to achieve objectives, are allowable under the 2 C.F.R .Part
200 cost principles, and are not paid directly or indirectly under another
federal Program, as set forth in 2 C.F.R. § 200.306, which is hereby
incorporated by reference.
i.
Depreciation on assets is permitted so long as the property is not
counted toward meeting cost share requirements, as set forth in 2
C.F.R. § 200.436, which is hereby incorporated by reference.
b.
Program Income
Per 2 C.F.R. § 200.307, which is hereby incorporated by reference, gross
income earned by the County Department is directly generated as a result
of the federal award. Program income must be expended prior to applying
federal funds.
c.
Equipment and other capital Medical Assistance expenditures
Assets consisting of general-purpose Equipment with a unit cost of
$10,000 or more, and capital improvements that materially increase their
value or useful life, as set forth in 2 C.F.R. § 200.439, which is hereby
incorporated by reference.
d
result
of the federal award. Program income must be expended prior to applying
federal funds.
c.
Equipment and other capital Medical Assistance expenditures
Assets consisting of general-purpose Equipment with a unit cost of
$10,000 or more, and capital improvements that materially increase their
value or useful life, as set forth in 2 C.F.R. § 200.439, which is hereby
incorporated by reference.
d.
Fundraising costs
Fundraising for the purpose of meeting the Medical Assistance Program
objectives, as set forth in 2 C.F.R. § 200.442, which is hereby
incorporated by reference.
5.
Factors Affecting Allowability of Costs
To be allowable for reimbursement under federal awards, 2 C.F.R. § 200.403
which is hereby incorporated by reference, Medical Assistance expenditures
reported in the CFMS shall meet the following general criteria:
a.
Medical Assistance Expenditures Shall Have Consistent Treatment
A cost shall not be assigned to a federal award as a direct cost if any other
cost incurred for the same purpose in like circumstances has been
allocated to the federal award as an indirect cost.
b.
Medical Assistance Expenditures Shall Comply With GAAP
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Medical Assistance Expenditures must, except as otherwise required by 2
C.F.R. Part 200, which is hereby incorporated by reference, be
determined in accordance with GAAP.
c.
No Provision for Profit
Reimbursable Medical Assistance expenditures shall be based on actual
cost with no provision for profit or increment above cost.
d.
Medical Assistance Expenditures Shall Be Based on Actual Costs
Reimbursable Medical Assistance expenditures shall be an actual cost
and not a cost based on an average, allocated, anticipated or budgeted
cost.
e.
Medical Assistance Expenditures Shall Not Be Prohibited
Reimbursable Medical Assistance expenditures shall not be those
prohibited under federal, State, or local laws, Rules, and Regulations.
f
al Assistance Expenditures Shall Be Based on Actual Costs
Reimbursable Medical Assistance expenditures shall be an actual cost
and not a cost based on an average, allocated, anticipated or budgeted
cost.
e.
Medical Assistance Expenditures Shall Not Be Prohibited
Reimbursable Medical Assistance expenditures shall not be those
prohibited under federal, State, or local laws, Rules, and Regulations.
f.
Medical Assistance Expenditure Policies, Regulations, and Procedures
Shall Be Applied Uniformly
Reimbursable Medical Assistance expenditures shall be consistent with
policies, regulations, and procedures that apply uniformly to State and
federal awards and other activities of the county.
g.
Medical Assistance Expenditures Shall Only Be Used Once as a Match
Medical Assistance expenditures shall not be included as a cost or used to
meet cost sharing or matching requirements of any other federal award in
either the current or a prior period, except as specifically provided by
federal law or Regulation.
h.
Medical Assistance Expenditures Shall Be Net of Applicable Credits
i.
Net of All Credits
Medical Assistance expenditures shall be claimed net of all credits,
including but not limited to, volume and cash discounts, refunds, rental
income, trade-ins, scrap sales, rebates or allowances, recoveries or
indemnities on losses, insurance refunds, adjustments of overpayments,
and erroneous charges.
6.
Documentation of Medical Assistance Expenditures
To be allowable for reimbursement under federal awards, Medical Assistance
expenditures reported in CFMS shall meet the following criteria:
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, recoveries or
indemnities on losses, insurance refunds, adjustments of overpayments,
and erroneous charges.
6.
Documentation of Medical Assistance Expenditures
To be allowable for reimbursement under federal awards, Medical Assistance
expenditures reported in CFMS shall meet the following criteria:
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a.
Documentation to Support Medical Assistance Expenditures
The authorization to purchase, documentation of the receipt of the goods
or services, the Vendor's invoice, and a signed commitment voucher or
signed approval to pay for each disbursement are documents supporting
Medical Assistance expenditures and must be retained and available for
audit purposes.
i.
Prior Authorization
Medical Assistance expenditures shall have County Department e
prior authorization evidenced by a signed requisition, purchase
order, or similar form of prior authorization, as set forth in 2 C.F.R.
§ 200.318, which is hereby incorporated by reference.
ii.
Receiving Reports
Medical Assistance expenditures shall be documented by evidence
of the receipt of goods or services such as a receiving report or
other supporting documentation signed by an employee authorized
to receive the goods or services. A receiving report or other
supporting documentation shall include actual quantities received,
any unsatisfactory condition, and compliance with specifications,
prior to a voucher being processed for payment and shall be
attached to the voucher packet.
iii.
Verification of Vendor's Invoice
The Vendor's invoice must be verified by checking for proper
purchase authorization, notation of receipt of goods/services,
correct addition, and extensions. The invoice should be approved
either in hard copy or electronically by the person verifying its
accuracy. Any discounts for prompt payment or volume purchase
shall be reported as a credit or reduction of Medical Assistance
expenditures.
iv
e
The Vendor's invoice must be verified by checking for proper
purchase authorization, notation of receipt of goods/services,
correct addition, and extensions. The invoice should be approved
either in hard copy or electronically by the person verifying its
accuracy. Any discounts for prompt payment or volume purchase
shall be reported as a credit or reduction of Medical Assistance
expenditures.
iv.
Commitment Vouchers
No disbursement of funds shall be made unless the county
approval process has been followed.
7.
Employee Salary and Benefits
To be allowable for reimbursement under federal awards, employee salary and
benefits reported in the CFMS shall meet the following criteria:
a.
Documentation of Employee Salary and Benefits
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The County Department Director and/or County Board will document
employee salary, benefits, and withholdings on Payroll records. County
Department Medical Assistance Expenditure payroll allowances shall be
supported on timesheets separate from other county personnel costs.
These Payrolls must be available for audit and retained as per Colorado
Office of State Archives requirements set forth in C.R.S. § 24-80-102
i,
Documentation of Employee Salary and Benefits
County Departments shall have records documenting all personnel
actions including, but not limited to, appointments and separations,
employee salary level, transfers, demotions, funding changes, pay
increases, promotions, terminations, title changes, attendance and
leave records, longevity or other circumstances affecting employee
compensation.
ii.
Controls Over Employee Salary and Benefits
Adequate controls shall be maintained to initiate changes in salary
due to promotion, longevity or other circumstances affecting
employee compensation.
b.
Employee Wage Assignments
County Department employee wages are subject to execution, levy,
attachment, garnishment, or other legal processes.
c
r other circumstances affecting employee
compensation.
ii.
Controls Over Employee Salary and Benefits
Adequate controls shall be maintained to initiate changes in salary
due to promotion, longevity or other circumstances affecting
employee compensation.
b.
Employee Wage Assignments
County Department employee wages are subject to execution, levy,
attachment, garnishment, or other legal processes.
c.
Leave Records
All County Departments shall maintain records of all leave both accrued
and taken.
8.
Reimbursements for Employee Training
a.
Training Purpose
Training Functions shall be held to achieve program objectives, develop
employees, enhance employee's job performance, and shall be limited to
reasonable and actual Costs.
b.
Training Attendance
The attendance of employees at Training Functions shall include only
those individuals related to the purpose of the function.
c.
Training Functions Shall Be Documented
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d.
Training Functions shall have a written agenda, study materials, and be
led by an identified presenter.
1.010.15.
Procurement
1.
The County or the County Department must develop, maintain and use
documented procedures for procurement transactions using Medical Assistance
dollars or other federal funds.
2.
Bid System
A County Department that purchases in excess of $100,000 shall use a formal
advertising and bidding process to provide, to the maximum extent practicable,
open and free competition. Per C.F.R. § 200.319(a), which is hereby
incorporated by reference, all County Department procurement transactions
under the federal award must be conducted in a manner that provides full and
open competition. If a County Department is unable to use this process, written
justification shall be available from the County Department giving the facts
related to the purchase and the inability to advertise and seek bids.
3
(a), which is hereby
incorporated by reference, all County Department procurement transactions
under the federal award must be conducted in a manner that provides full and
open competition. If a County Department is unable to use this process, written
justification shall be available from the County Department giving the facts
related to the purchase and the inability to advertise and seek bids.
3.
Federal Funding Accountability and Transparency Act of 2006 (FFATA)
Requirements
Regardless of procurement method, a County Department that receives funds
directly from a federal entity and purchases from the same vendor goods and/or
services in excess of $30,000.00 is subject to the FFATA requirements.
a.
First-Tier Recipient of Federal Funds
A County Department that receives Medical Assistance funds only is not
subject to the FFATA requirements because in this instance, the State
Department is the prime Recipient (first-tier) of the Medical Assistance
funds and as such bears the FFATA responsibility. When the County
Department receives federal dollars in excess of the Medical Assistance
funds, the County Department bears the FFATA responsibility.
4.
Suspension and Debarment
Federal funds cannot be awarded to a Contractor that has been suspended or
debarred.
a.
Exclusions Extract on SAM.gov
The County Department must verify procurement eligibility of a Contractor
by reviewing the Exclusions Extract at https://sam.gov/content/exclusions.
5.
Prohibition of Telecommunications and Video Surveillance Services or
Equipment
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that has been suspended or
debarred.
a.
Exclusions Extract on SAM.gov
The County Department must verify procurement eligibility of a Contractor
by reviewing the Exclusions Extract at https://sam.gov/content/exclusions.
5.
Prohibition of Telecommunications and Video Surveillance Services or
Equipment
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Due to national security, a County Department is prohibited from procuring
equipment, services, or systems produced by Hytera Communications
Corporation, Hangzhou Hikvision Digital Technology Company or Dahua
Technology Company or their subsidiaries or affiliates.
1.010.16.
Contracts
The County Departments shall adhere to all county guidelines for Contract processes
and procedures. In the absence of county procedures, the County Department shall
follow State Contract process and procedures pursuant to 1 C.C.R. § 101 through 1
C.C.R. § 109 (2025), which are hereby incorporated by reference.
To be allowable for reimbursement under federal awards, Medical Assistance
expenditures for Contracts reported in the CFMS shall meet the following criteria:
1.
Contract Intent
Each County Department shall be responsible for assuring that the Contracts
they initiate are within the intent of the funding source and that the Contract is
necessary and is the most economical and efficient means for accomplishing the
identified tasks.
2.
Subrecipient versus Contractor Determination
Each County Department shall be responsible for determining the substance of
the agreement as required by 2 C.F.R. § 200.331, which is hereby incorporated
by reference, between the county and its Vendors. County Departments must
have a documented process for the determination of a Subrecipient versus
Contractor. County Departments must maintain documentation of the
determination as part of the agreement. When the result of the determination is a
Subrecipient:
a.
The County Department must have a written monitoring process for
oversight of its Subrecipients
rence, between the county and its Vendors. County Departments must
have a documented process for the determination of a Subrecipient versus
Contractor. County Departments must maintain documentation of the
determination as part of the agreement. When the result of the determination is a
Subrecipient:
a.
The County Department must have a written monitoring process for
oversight of its Subrecipients. This process must include a risk
assessment of each Subrecipient.
b.
The risk assessment is not part of the selection process but must be done
at the outset of the Subaward and at least annually thereafter.
c.
Counties must follow information and documentation requirements
required by 2 C.F.R. § 200.332, which is hereby incorporated by
reference.
3.
Interagency Contracts
Formal agreements between two agencies, sometimes referred to as
“Interagency Agreements,” “Memoranda of Understanding,” or “Memoranda of
Agreement” are to be treated as if they are Contracts.
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4.
Contracts Legality
The County Department shall be responsible for assuring that all constitutional,
statutory, regulatory, and grant requirements have been met prior to signing a
Contract.
5.
Protection of Interests
A County Department shall negotiate and process a Contract when protecting the
interest of the county can only be accomplished by using a Contract. When
questions arise in this area, the county legal representative should be contacted
for assistance.
6.
Advance Payments/Retainers
Contracts and other commitment vouchers shall not provide for advance
payment for goods and/or services unless it is an established industry standard
or unless the party to the Contract provides a benefit to the county at least equal
to the cost and risk of the advance payment. Any advance payment made on a
Contract shall require the written approval of the chairman of the County Board,
or an authorized delegate.
7
r commitment vouchers shall not provide for advance
payment for goods and/or services unless it is an established industry standard
or unless the party to the Contract provides a benefit to the county at least equal
to the cost and risk of the advance payment. Any advance payment made on a
Contract shall require the written approval of the chairman of the County Board,
or an authorized delegate.
7.
No Personal Benefit
The county signatories of a Contract shall have no personal or beneficial interest
whatsoever in the goods or services described in the contract.
8.
Contracts at a Minimum Shall:
a.
Be in Writing
All Contracts at a minimum shall be prepared in writing.
b.
Specifically Identify the Parties to the Contract
All Contracts at a minimum shall specifically identify the parties to the
Contract.
c.
Contain a County Fiscal Year Restriction
All Contracts shall contain a fiscal year restriction such as:
“This contract is subject to and contingent upon the continuing availability
of budgeted county funds for the purposes hereof.”
d.
Contain a Restriction Regarding the Availability of State and/or Federal
Funds
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Contracts shall contain a restrictive clause involving State and or federal
funds such as:
“This contract is subject to and contingent upon the continuing availability
of State and or federal funds for the purposes hereof.”
e.
All Contracts Shall Contain Provisions for:
i.
Statement of Work;
ii.
Payment terms, including maximum dollar amount;
iii.
Performance period (Contract beginning and end dates); and
iv.
General terms and conditions.
f.
Request Payment at Least Monthly
Contractors shall bill for goods or services at least monthly. Goods or
services performed must be identified in detail. Contracts shall specify that
all parties to the Contract shall maintain, for audit purposes,
documentation to support Medical Assistance expenditures claimed under
the Contract
ct beginning and end dates); and
iv.
General terms and conditions.
f.
Request Payment at Least Monthly
Contractors shall bill for goods or services at least monthly. Goods or
services performed must be identified in detail. Contracts shall specify that
all parties to the Contract shall maintain, for audit purposes,
documentation to support Medical Assistance expenditures claimed under
the Contract. Payments made should be coded to account categories that
identify the type of expense being paid.
g.
Define Breach of Contract
The county shall define breach of Contract and include available remedies
in the Contract.
9.
Contract Review
a.
Contract Monitoring
The County shall have a monitoring system to assure that Medical
Assistance expenditures claimed are within the terms of the Contract.
b.
Review for Availability of Funds
Before the execution of a Contract, the County Department Director or a
delegate shall review the Contract for completeness and to ensure that
funds are available to cover the Contract liability; written evidence of the
director’s or delegate’s review shall be maintained with the Contract.
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c.
Review for Compliance
Before execution of a Contract, the County Department Director or
delegate shall categorize the Contract according to risk using the State
Controller’s “Review and Approval of State Contracts” criteria or criteria
established by written policy of the County Department Director. The
County Department legal representative shall review all high risk
Contracts to include compliance with:
i.
The federal and the State constitution,
ii.
Federal and State laws,
iii.
Federal and State Rules and Regulations,
iv.
Executive orders, and
v.
The authority of the County Department of Social/Human Services
to enter into the Contract
ed by written policy of the County Department Director. The
County Department legal representative shall review all high risk
Contracts to include compliance with:
i.
The federal and the State constitution,
ii.
Federal and State laws,
iii.
Federal and State Rules and Regulations,
iv.
Executive orders, and
v.
The authority of the County Department of Social/Human Services
to enter into the Contract.
The County Department shall maintain written documentation of the risk
analysis of the Contract as well as a copy of the results of the written legal
review in the Contract file.
d.
Delegation of the Contracting Authority
Under certain circumstances the County Department Director may
delegate, in writing, authority to execute Contracts. Delegation of the
County Department Director's Signature authority does not eliminate the
requirement that all Contracts have a risk analysis and, if required, legal
review, or exempt any County Department from securing the required
approval from the chairman of the County Board.
10.
Contract Signature Approval
a.
Signature Authority
The chairman of the County Board or a designee shall sign all Contracts
on behalf of the County Department. Delegated authority shall be in
writing and maintained for audit purposes.
b.
Signatures
It shall be the responsibility of the contracting county to obtain Signatures
of all parties to the Contract and to retain at least one Contract that
contains the Signatures of all of the contracting parties.
11.
Required for Personal Services
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writing and maintained for audit purposes.
b.
Signatures
It shall be the responsibility of the contracting county to obtain Signatures
of all parties to the Contract and to retain at least one Contract that
contains the Signatures of all of the contracting parties.
11.
Required for Personal Services
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Contracts shall be required when a County Department purchases personal
services that are provided in a relationship other than that of employee-employer.
Personal service Contracts include maintenance and service agreements,
including but not limited to, legal services, management services, extensions of
County Department staff, other public or private agencies, automated data
processing services, and training by other than the Colorado Department of
Health Care Policy and Financing, Colorado Department of Human Services, or
another County Department staff.
a.
Contract Provision for Personal Services in excess of $100,000
To be included as a reimbursable expense from the State Department,
personal services Contracts over $100,000 shall include all of the
following Contract requirements:
i.
Performance measures and standards developed specifically for
the Contract by the administering County;
ii.
Accountability standards requiring regular Vendor reports on
achievement of the specified performance measures and
standards;
iii.
Payment provisions allowing the County to withhold payment until
successful completion of all or specified parts of the Contract and
requiring prompt payment upon successful completion;
iv.
Monitoring requirements specifying how the County and the Vendor
will evaluate each other’s performance, including progress reports,
site visits, inspections, and reviews of performance data; and
v.
Processes for resolving disputes between the County and the
Vendor.
12.
Required for Lease/Rent
A County Department shall negotiate and process a Contract when leasing
buildings, or other office or meeting space
requirements specifying how the County and the Vendor
will evaluate each other’s performance, including progress reports,
site visits, inspections, and reviews of performance data; and
v.
Processes for resolving disputes between the County and the
Vendor.
12.
Required for Lease/Rent
A County Department shall negotiate and process a Contract when leasing
buildings, or other office or meeting space.
13.
Compliance with Laws
Existing laws, Rules and Regulations cannot be overridden by terms in a
Contract or a memorandum of understanding.
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1.010.17.
Travel
The County Department shall adhere to all county guidelines for travel policies and
reimbursement procedures. In the absence of county policies and procedures, County
Departments shall follow 2 C.F.R. § 200.475(d), which is hereby incorporated by
reference.
1.
To be allowable for reimbursement under federal awards, Medical Assistance
travel expenditures reported in the CFMS shall meet the following criteria:
a.
General
All costs for travel related to Medical Assistance eligibility and enrollment
activity shall be pre-approved by the County Department Director.
Appropriate supporting documentation shall be maintained prior to travel.
b.
Travel Policies Shall Be Consistent Throughout the County
The travel policies for County Department employee reimbursement for
lodging, meals, and Transportation shall be consistent with those policies
in the county’s other departments, offices, and divisions.
c.
Travel Expense as Part of Another Fee
If travel expenses (meals, lodging, Transportation, etc.) are included in
conference fees, registration fees, or are otherwise furnished at no
additional cost to the traveler, no reimbursement shall be made for these
items. If, however, a meal included in a commercial transportation ticket is
not adequate, and the traveler incurs an additional meal expense,
reimbursement may be claimed at the authorized rate for that meal.
d
odging, Transportation, etc.) are included in
conference fees, registration fees, or are otherwise furnished at no
additional cost to the traveler, no reimbursement shall be made for these
items. If, however, a meal included in a commercial transportation ticket is
not adequate, and the traveler incurs an additional meal expense,
reimbursement may be claimed at the authorized rate for that meal.
d.
Travel Reimbursement for Only County Business
Lodging, meals, and other reimbursable travel expenses shall only be
reimbursed for the period of time necessary for the traveler to accomplish
the County Department business.
e.
Limited Time for Reimbursement
Reimbursement for travel and related expenses is available for the current
month (month being paid) and two preceding months.
2.
Transportation
Transportation costs charged to the State are costs incurred by employees who
are in travel status on official business.
a.
Reimbursement for the Most Economical and Efficient Means Available
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Transportation shall be completed using the most economical and efficient
means available that will satisfactorily accomplish the County Department
business.
b.
Documentation of Trip
Sufficient documentation of the purpose and the cost of the trip shall be
included with the travel expense form. If the purpose of the travel is not
solely for business purposes, the individual involved shall make a
reasonable allocation of the expenses and the travel reimbursement
request shall contain sufficient documentation to indicate the allocation
made and the basis for the allocation.
c.
Mileage Rate
Reimbursement of vehicle transportation shall not be greater than the
standard mileage rate for business established by the US Internal
Revenue Service. This mileage rate is to cover all ownership and
operating costs of the vehicle. The County Department shall adhere to all
county guidelines for mileage reimbursement..
d
ndicate the allocation
made and the basis for the allocation.
c.
Mileage Rate
Reimbursement of vehicle transportation shall not be greater than the
standard mileage rate for business established by the US Internal
Revenue Service. This mileage rate is to cover all ownership and
operating costs of the vehicle. The County Department shall adhere to all
county guidelines for mileage reimbursement..
d.
Transportation Does Not Include Employee's Spouse or Other Non-
County Employee
Reimbursable costs shall not include the cost of an employee's spouse or
other non-County Department employee(s) accompanying the employee
on a business trip.
e.
Only One Reimbursement per Vehicle
When two or more people travel together in the same personally owned
and operated automobile, only the employee responsible for the
automobile shall be allowed mileage reimbursement.
3.
Lodging
a.
Lodging Receipt
Receipts for lodging shall be obtained and submitted with the travel
expense form. The actual lodging receipt is required. Charge slips are not
sufficient.
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b.
Travel Reimbursement at Reasonable Accommodations
Employees pre-authorized to travel shall be reimbursed the actual cost of
reasonable accommodations. Employees may be required to use
approved or designated lodging facilities in certain areas to assist in
controlling travel cost. Reimbursement shall be limited to the cost of
commercial lodging.
4.
Meals
a.
Meal Per Diem
Employees pre-authorized to travel shall be reimbursed for the cost of
meals, including tax, tip and other incidental expenses at a rate not higher
than the per diem rates set under 5 U.S.C. § 5701-11 (2025) (Travel and
Subsistence Expenses; Mileage Allowances).
5.
Reimbursable Items
In addition to lodging, meals, and Transportation, the following actual expenses
incurred as a necessary part of approved travel may be reimbursed.
a
shall be reimbursed for the cost of
meals, including tax, tip and other incidental expenses at a rate not higher
than the per diem rates set under 5 U.S.C. § 5701-11 (2025) (Travel and
Subsistence Expenses; Mileage Allowances).
5.
Reimbursable Items
In addition to lodging, meals, and Transportation, the following actual expenses
incurred as a necessary part of approved travel may be reimbursed.
a.
Travel Tips
Reasonable tips paid by the traveler for bellhops, porters, maids, and
ground transportation are reimbursable up to the daily incidental per diem.
Tips paid in conjunction with meals are included in the meal per diem and
cannot be claimed separately.
b.
Commercial Vehicle
Commercial Transportation expenses paid by the traveler are
reimbursable. A receipt shall be required for each individual ride in a
commercial vehicle, if over $25.00.
c.
Travel Campsite Fees
Campsite fees paid by the traveler for a commercial campground or a
State or national park are reimbursable. A receipt shall be required if over
$25.00.
d.
Parking Fees
Parking fees paid by the traveler are reimbursable. A receipt shall be
required for any single fee over $25.00.
e.
Travel Registration Fees
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Registration fees paid by the traveler are reimbursable. A receipt is
required for all registration fees paid.
f.
Rental Car Cost
Rental car costs paid by the traveler are reimbursable. A receipt is
required for all Medical Assistance rental car expenditures.
g.
Communications Charges
Telephone, fax, and other similar charges paid by the traveler for official
County Department business are reimbursable. A receipt shall be required
for any single charge over $25.00. Personal phone calls are included in
the incidental per diem rate; they cannot be claimed separately.
h.
Toll Road Charges
Toll road charges paid by the traveler are reimbursable when the travel is
for official County Department business and when the travel is pre-
approved.
6
r for official
County Department business are reimbursable. A receipt shall be required
for any single charge over $25.00. Personal phone calls are included in
the incidental per diem rate; they cannot be claimed separately.
h.
Toll Road Charges
Toll road charges paid by the traveler are reimbursable when the travel is
for official County Department business and when the travel is pre-
approved.
6.
Travel Approval and Expense Form
a.
Approval
The County Department Director shall approve according to the travel
expense process. This Signature shall certify a review and approval of all
travel expense items. Receipts for lodging, parking and other
miscellaneous claims shall be attached to the County Department copy of
the travel expense form. This travel expense form and all receipts shall be
retained. Approval of this travel expense form shall be shown by the
employee’s supervisor’s Signature. The employee requesting
reimbursement shall sign the travel expense form to certify that all
expenses listed are for approved County Department purposes.
b.
Travel Expense Form
The County Department prescribed travel expense form shall be used for
claiming all travel expenses for which an employee, volunteer, or County
Board member requests reimbursement. A properly completed and
approved travel expense form shall support all payments for travel
expenses.
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Executive Director of Health Care Policy and Financing
ravel Expense Form
The County Department prescribed travel expense form shall be used for
claiming all travel expenses for which an employee, volunteer, or County
Board member requests reimbursement. A properly completed and
approved travel expense form shall support all payments for travel
expenses.
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c.
Travel Advances
At the discretion of and in compliance with County Department policies
and procedures, employees may request a Cash advance to conduct
business for the County Department. The amount of the travel advance
shall be no larger than the total per diem allowance for the planned trip.
The County Department-prescribed request for Travel Advance form or
alternate form containing the same information shall be used for
requesting an advance. The form should require the signed approval of
the employee’s supervisor and the County Department Director.
7.
Travel Coding and Reimbursement
Travel Coding
Travel shall be reported under the same program and function coding as
the employee's salary and benefits. If the travel expense is reported under
a coding other than the coding for the employee's salary and benefits,
sufficient explanation and/or documentation to support this alternate
coding shall be attached to the travel expense form.
1.010.18.
Office Space
1.
To be allowable for reimbursement under federal awards, Medical Assistance
expenditures for office space reported in the CFMS shall meet the following
criteria:
a.
Allocation of Office Space Costs
The reimbursement for office space is a part of each program's
administrative allocation and allowable only to the extent of each
program's administrative allocation. The allocation of the total office space
costs to each program is to be based on square foot used or other
reasonable and documented method.
b
eported in the CFMS shall meet the following
criteria:
a.
Allocation of Office Space Costs
The reimbursement for office space is a part of each program's
administrative allocation and allowable only to the extent of each
program's administrative allocation. The allocation of the total office space
costs to each program is to be based on square foot used or other
reasonable and documented method.
b.
Sharing Office Space
If a building is shared with another agency, the County Department cost
shall not exceed the prorated share of the total building costs based on
square feet used.
c.
Substantiating Space Costs
Prior to building or contracting for another building, or changing the current
Contract, the County shall obtain and retain documentation that office
space costs incurred are equal to or less than the cost of comparable
commercial leases in the area.
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2.
Allowable Costs for County Owned Office Space
a.
Allowable Capital Costs for Owned Office Space
The allowable cost for county-owned office space is based on a usage
allowance of two percent per year of the capitalized cost of the building or
an amount based on a reasonable depreciation schedule that is approved
by the State Department Approving Authority
b.
Medical Assistance Expenditure of the Social/Human Service Fund
The full amount of the usage allowance or depreciation for office space
shall be an actual Medical Assistance expenditure from the social/human
services fund. This Medical Assistance expenditure shall be paid to the
County Department or other County entity that owns the building(s).
c
ved
by the State Department Approving Authority
b.
Medical Assistance Expenditure of the Social/Human Service Fund
The full amount of the usage allowance or depreciation for office space
shall be an actual Medical Assistance expenditure from the social/human
services fund. This Medical Assistance expenditure shall be paid to the
County Department or other County entity that owns the building(s).
c.
Allowable Office Space Costs in Addition to Capital Costs
Office space costs that are allowable for reimbursement are as follows,
but are not limited to, utilities such as heating, lighting or cooling the
building, normal repairs and maintenance that are not capitalized, ordinary
and normal rearrangement and alterations that are not capitalized,
security, janitorial, building insurance, elevator service, and upkeep of
grounds, as required by 2 C.F.R. § 200.452, which is hereby incorporated
by reference.
d.
Allowable Interest on Office Space Costs
Costs incurred for interest on borrowed capital or the use of a
governmental unit's own funds, however represented, are unallowable
except as specifically provided below in accordance with 2 C.F.R. §
200.449, which is hereby incorporated by reference.
i.
Office Space Interest Expense Limitations
Financing costs (including interest) associated with the otherwise
allowable costs of building acquisition, construction, or fabrication,
reconstruction or remodeling completed on or after October 1,1980,
is allowable, subject to the following three conditions:
A.
Bona Fide Third Party Funding
The financing is provided (from other than tax or user fee
sources) by a bona fide third party external to the
governmental unit,
B.
Support Federal Awards
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ion or remodeling completed on or after October 1,1980,
is allowable, subject to the following three conditions:
A.
Bona Fide Third Party Funding
The financing is provided (from other than tax or user fee
sources) by a bona fide third party external to the
governmental unit,
B.
Support Federal Awards
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The assets are used in support of federal awards, and
C.
Interest Earnings
Earnings on debt service reserve funds or interest earned on
borrowed funds pending payment of the construction or
acquisition costs are used to offset the current period's cost
or the capitalized interest, as appropriate. Earnings subject
to being reported to the federal Internal Revenue Service
under arbitrage requirements are excludable.
3.
Allowable Costs for Leased Office Space
a.
Allowable Office Space Costs for Leased Office Space
The allowable cost for non-county owned office space is the lower of the
actual lease cost or a rate that is reasonable in light of such factors as
rental costs of comparable property, if any; market conditions in the area;
alternatives available; and, the type, life expectancy, condition, and value
of the property leased.
b.
Allowable Office Space Costs in Addition to Lease Costs
Office space costs that are allowable for reimbursement if not already
provided for in the lease agreement are as follows but are not limited to
utilities such as heating, lighting or cooling the building, normal repairs and
maintenance that are not capitalized, ordinary and normal rearrangement
and alterations that are not capitalized, security, janitorial, building
insurance, elevator service, upkeep of grounds, and appraisal fees
required by the County Department for cost comparisons.
c.
Allowable Office Space Costs in a Sale and Leaseback
Costs under sale and leaseback arrangements are allowable only up to
the amount that would be allowed had the County continued to own the
property, as set forth in 2 C.F.R
e not capitalized, security, janitorial, building
insurance, elevator service, upkeep of grounds, and appraisal fees
required by the County Department for cost comparisons.
c.
Allowable Office Space Costs in a Sale and Leaseback
Costs under sale and leaseback arrangements are allowable only up to
the amount that would be allowed had the County continued to own the
property, as set forth in 2 C.F.R. § 200.465, which is hereby incorporated
by reference.
d.
Office Space Costs in a Less-Than-Arms-Length Lease
Office space costs under a less-than-arms-length lease are allowable at
an amount that is reasonable in light of such factors as rental costs of
comparable property, if any; market conditions in the area; alternatives
available; and the type, life expectancy, condition, and value of the
property leased, as set forth in 2 C.F.R. § 200.465, which is hereby
incorporated by reference.
e.
Authority Created to Acquire and Lease Office Space
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Prior approval from the State Department is required for reimbursement of
office space costs when the County creates an authority or similar entity to
acquire and lease the office space to the County Department.
f.
Capital Lease of Office Space
Costs under leases, which are required to be treated as finance leases are
allowable only up to the amount that would be allowed had the
governmental unit purchased the property on the date the lease
agreement was executed. This amount would include expenses such as
depreciation or use allowance, maintenance, and insurance. Interest costs
related to capital leases are allowable to the extent they meet the criteria
for allowability of interest in section 1.010.11.3 of these Rules.
4.
Office Space Costs to be Excluded from Reimbursement
a.
Office Space Funded by Others
Office space cost to be excluded is space that is funded by another State
or private agency.
b
epreciation or use allowance, maintenance, and insurance. Interest costs
related to capital leases are allowable to the extent they meet the criteria
for allowability of interest in section 1.010.11.3 of these Rules.
4.
Office Space Costs to be Excluded from Reimbursement
a.
Office Space Funded by Others
Office space cost to be excluded is space that is funded by another State
or private agency.
b.
Sublet Office Space
Office space cost to be excluded is space sublet to a local, state, or
federal agency or other user.
c.
Used by Others
Office space cost to be excluded is space used solely by staff not
authorized by the State Department.
d.
Not Authorized for Use
Office space cost to be excluded is space used solely for functions not
authorized by the State Department.
e.
Not Incurred
Office space cost to be excluded is cost that has not been incurred by or
paid from the County Department. Costs excluded are the value of
donated materials, labor, or buildings. Other costs excluded are those paid
from a grant, or a cost used as matching funds for a grant.
f.
Idle or Empty Office Space
Office space cost to be excluded is idle facilities or idle capacity unless
necessary to meet fluctuations in workload, as set forth in 2 C.F.R. §
200.446, which is hereby incorporated by reference.
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1.010.19.
Cost Accounting
1.
Application of Costs Requires a Plan
Where an accumulation of Indirect Costs will ultimately result in charges to a
federal award, a cost allocation plan, indirect rate proposal, or application of
random moment sampling shall be required in accordance with Appendix V to 2
C.F.R. Part 200 and 2 C.F.R. § 200.416, which are hereby incorporated by
reference.
2.
Direct or Indirect Cost
a.
Consistent Treatment
Each item of cost shall be treated consistently in like circumstances either
as a direct or an indirect cost.
b
eral award, a cost allocation plan, indirect rate proposal, or application of
random moment sampling shall be required in accordance with Appendix V to 2
C.F.R. Part 200 and 2 C.F.R. § 200.416, which are hereby incorporated by
reference.
2.
Direct or Indirect Cost
a.
Consistent Treatment
Each item of cost shall be treated consistently in like circumstances either
as a direct or an indirect cost.
b.
No Universal Rule
There is no universal rule for classifying certain costs as either direct or
indirect under every accounting system. A cost may be direct with respect
to some specific service or function, but indirect with respect to the federal
award or other final cost objective.
3.
Reasonable and Based on Generally Accepted Accounting Principles
All costs incurred shall be allocated to the Program/activity/Cost Pool based on
generally accepted governmental accounting principles. Direct Costs shall be
allocated to the project on a reasonable basis relating directly to the benefit or
value added to the program. Indirect Costs shall be allocated from indirect cost
pools on a reasonable basis consistent with that of other similar or related
projects/grants/activities.
4.
All Inclusive Cost Accounting Plan
All activities that benefit from an indirect cost, including unallowable activities and
services, shall receive an appropriate allocation of Indirect Costs.
a.
Submission Requirements
i.
The large County is required to submit a plan to its cognizant
agency for Indirect Costs annually pursuant to Appendix V to Part
200 D(2).
ii.
Where the small and medium County only receives federal funds as
a Subrecipient, they must develop a plan and maintain the plan and
related supporting documentation for audit pursuant to Appendix V
to Part 200 D(3).
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Executive Director of Health Care Policy and Financing
izant
agency for Indirect Costs annually pursuant to Appendix V to Part
200 D(2).
ii.
Where the small and medium County only receives federal funds as
a Subrecipient, they must develop a plan and maintain the plan and
related supporting documentation for audit pursuant to Appendix V
to Part 200 D(3).
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1.010.20.
Random Moment Sampling
1.
Participation in Random Moment Sampling
Participation in random moment sample reporting shall be required by all County
Department employees as determined by the Colorado Department of Human
Services and the Department of Health Care Policy and Financing.
2.
Purpose of Reporting Under Random Moment Sampling
The purpose of this reporting is to measure time expended by employees on
certain programs in order to substantiate Medical Assistance expenditures
eligible for federal reimbursement. Reporting on random moment sampling
measures the direct services provided by the County Departments. The results of
the statistical analysis is used to distribute the Indirect Costs of the County
Departments to direct service areas.
1.010.21.
Countywide Cost Allocation Plan
1.
Availability of Funds
Based on the availability of State and federal funds, a County's allowable indirect
countywide costs shall be reimbursed.
2.
Purpose of the Countywide Cost Allocation Plan
Counties shall prepare a countywide cost allocation plan that allocates Indirect
Costs across the County operations relative to the benefit derived. Countywide
cost allocation plans shall be used in determining rates, fees, or the cost of
services provided, and by management in determining the cost effectiveness of a
program or activity.
3.
Countywide Cost Allocation Plan Availability
Certified countywide cost allocation plans must be prepared in accordance with
the cost principles found in the 2 C.F.R. Part 200 which is hereby incorporated by
reference, or other cost principles as required by a specific grant.
4
es, or the cost of
services provided, and by management in determining the cost effectiveness of a
program or activity.
3.
Countywide Cost Allocation Plan Availability
Certified countywide cost allocation plans must be prepared in accordance with
the cost principles found in the 2 C.F.R. Part 200 which is hereby incorporated by
reference, or other cost principles as required by a specific grant.
4.
Responsibility for the Countywide Cost Allocation Plan
Responsibility for preparation and submission of an indirect countywide cost
allocation plan is with the County.
5.
Countywide Cost Allocation Plan Submission
Upon request, the County Department must submit an electronic copy of the
countywide cost allocation plan to the State Department.
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56
1.010.22.
Single Audit by an Independent Certified Public Accountant
Each County shall annually have a financial and, if required by the Uniform Guidance, a
single audit made by a certified public accountant. An electronic copy of these audits
shall be submitted to the State Department via electronic mail to
HCPF_CountyRelations@state.co.us . The report must be submitted no later than
seven months following the end of the fiscal year. The County may request a 3-month
extension to September 30th by filing the request with the State of Colorado, Office of
the State Auditor. The State Department may suspend reimbursements of Medical
Assistance expenditures until such time as the audit report is received.
1.010.23.
Audits by the Colorado Department of Health Care Policy and
Financing
Information requested by the State Department personnel resulting from desk audits,
site reviews or any other audit of County Department records, shall be provided by the
County Department within the time frame specified in the request
of Medical
Assistance expenditures until such time as the audit report is received.
1.010.23.
Audits by the Colorado Department of Health Care Policy and
Financing
Information requested by the State Department personnel resulting from desk audits,
site reviews or any other audit of County Department records, shall be provided by the
County Department within the time frame specified in the request. If responses are not
received by the due date (including State Department-approved extensions), the State
Department may suspend reimbursements of Medical Assistance expenditures until
such time as the responses are received. See audits as listed in 10 C.C.R. 2505-5 §
1.020.13 for more guidance.
1.
Recovery of Money Owed by a County
Pursuant to C.R.S. § 25.5-1-114, the State Department has the power to recover
any monies owed by a County Department to the State Department by reducing
the amount of any payments due from the State Department in connection with
any program or activity. Unallowable costs which are identified during either desk
audits or field audits will be disallowed despite similar costs which may have
been reimbursed in the past.
2.
Interest on Wrongful Claims
a.
Statutory Interest
When money or property has been wrongfully claimed, withheld, or
reimbursed, and when there is no agreement as to the interest rate,
interest charged by the State may be at the rate of eight percent per
annum compounded annually commencing on the date of the wrongful
claim, withholding, or reimbursement to the date of settlement for all
moneys or the value of property wrongfully claimed withheld, withheld, or
reimbursed. Interest paid to the State may not be claimed for
reimbursement.
3.
Federal Department of Health and Human Services, and Other Federal
Department or Agencies
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Executive Director of Health Care Policy and Financing
lding, or reimbursement to the date of settlement for all
moneys or the value of property wrongfully claimed withheld, withheld, or
reimbursed. Interest paid to the State may not be claimed for
reimbursement.
3.
Federal Department of Health and Human Services, and Other Federal
Department or Agencies
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The federal Department of Health and Human Services and other federal
departments or agencies with which the County Department expends funds and
is reimbursed with federal funds may make periodic audits in the selected County
Department to verify the correctness of payments, and fiscal compliance. The
County Departments shall comply with requests from these federal auditors.
These audits may result in adjustments in County Department claims for
reimbursement.
1.010.24
Confidentiality
1.
Confidentiality of Financial Data
Pursuant to C.R.S. § 25.5-1-116, C.R.S., financial systems contain both public
and confidential information; therefore access to financial data shall not be
granted to anyone for general perusal of financial records. However, fiscal data,
budgets, financial statements, and reports that do not identify social/human
services Recipients by name, number, or other identifying information are open
records.
1.020. COUNTY ADMINISTRATIVE RULES
The incorporation by reference (as indicated within) throughout section 1.020 excludes
later amendments to, or editions of, the referenced materials. Pursuant to C.R.S. § 24-
4-103(12.5) the Department maintains copies of this incorporated text in its entirety
available for public inspection during regular business hours, at: Colorado Department
of Health Care Policy and Financing, 303 E 17th Ave, Denver, CO 80203. Certified
copies of incorporated materials are provided at cost upon request.
Incorporated materials are found in the following sections: 1.020.1, 1.020.2, 1.020.3,
1.020.4, 1.020.6, 1.020.8, 1.020.11 and 1.020.13
orated text in its entirety
available for public inspection during regular business hours, at: Colorado Department
of Health Care Policy and Financing, 303 E 17th Ave, Denver, CO 80203. Certified
copies of incorporated materials are provided at cost upon request.
Incorporated materials are found in the following sections: 1.020.1, 1.020.2, 1.020.3,
1.020.4, 1.020.6, 1.020.8, 1.020.11 and 1.020.13 . The definitions set forth at section
1.010.1 of these Rules are also applicable to section 1.020.
1.020.1.
Purpose and Scope
1.
Administrative Rules
These Rules are the administrative Rules for County Departments concerning
the operations and the administration of Medical Assistance by County
Departments, including but not limited to administrative Internal Controls, County
Department Director responsibilities and oversight of compliance by the County
Department with State Department and federal requirements. The State
Department’s authority for County Administrative Rules is as allowed by C.R.S.
§§ 25.5-1-114 and 117–122.
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58
2.
State Department Responsibilities
As the federally designated single state agency, per 42 C.F.R. § 431.10(b), for
the Medical Assistance Program in Colorado, the Colorado Department of Health
Care Policy and Financing (State Department) is charged with administering and
supervising the Medicaid State Plan. As the single state agency, the State
Department issues Rules and Regulations that are binding on the County
Department. Additionally, the State Department must exercise appropriate
oversight over eligibility determinations, appeals and overall County Department
operations. The State Department is federally prohibited from delegating to
anyone other than its own officials, the authority to supervise the Medicaid State
Plan and its delegation of eligibility and enrollment activities, or the authority to
develop or issue policies, Rules, and Regulations on Program matters
riate
oversight over eligibility determinations, appeals and overall County Department
operations. The State Department is federally prohibited from delegating to
anyone other than its own officials, the authority to supervise the Medicaid State
Plan and its delegation of eligibility and enrollment activities, or the authority to
develop or issue policies, Rules, and Regulations on Program matters. The State
Department has the sole authority to set statewide policies, Rules and
Regulations, and manage State Information Technology Systems.
3.
County Department Responsibilities
The County Department is charged with the responsibility for administering all
Medical Assistance Program eligibility and enrollment functions that were
delegated by the State Department, in accordance with Regulations and Rules
established by the State Department, per 42 C.F.R. § 431.10(c)(2)). The County
Department will only be reimbursed for payments under the Colorado Medical
Assistance Act and the administration of these Programs if said Programs are
administered in accordance with the State Department Rules as well as all other
applicable federal, State, and local laws, Rules and Regulations.
4.
Knowledge of Laws and Regulations
There are many federal, State, and local laws, Rules and Regulations that
govern the administration of grants, the employment of personnel, and the health
and safety of our lands and the general population. When in doubt as to the
existence, applicability, or intent of any law, Rule or Regulation, County
Department personnel shall make inquiries with the State Department and/or the
applicable federal department or agency.
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t of personnel, and the health
and safety of our lands and the general population. When in doubt as to the
existence, applicability, or intent of any law, Rule or Regulation, County
Department personnel shall make inquiries with the State Department and/or the
applicable federal department or agency.
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1.020.2.
County Board of Social/Human Services Administrative
Responsibilities
1.
Formal Agreements between the County Board and the State Department
a.
To ensure the State Department’s compliance with 42 C.F.R. § 431.10(d),
the County Board shall enter into a formal Inter Governmental Agreement
(IGA) with the State Department that authorizes the delegation of eligibility
and enrollment activities for Medical Assistance Programs to the County
Department. This agreement shall be in place for the duration of the State
Department’s delegation of eligibility and enrollment activities to the
County Department.
b.
The formal IGA between the County Board and the State Department shall
include:
i.
The relationships and respective responsibilities of the County
Department and State Department, including but not limited to the
respective responsibilities to effectuate the fair hearing Rules as
dictated by the federal government and State Department
ii.
Quality control and oversight by the State Department, including
any reporting requirements needed to facilitate such control and
oversight
iii.
Assurances that the County Department, to which the State
Department has delegated authority to determine eligibility or
conduct fair hearings, will comply with the State Department
oversight and compliance requirements and monitoring
iv.
For appeals, procedures to ensure that individuals have notice and
a full opportunity to have their fair hearing.v.
Performance
metrics, targets and deliverables for any local share
reimbursements, if any, as provided by the State Department
K
authority to determine eligibility or
conduct fair hearings, will comply with the State Department
oversight and compliance requirements and monitoring
iv.
For appeals, procedures to ensure that individuals have notice and
a full opportunity to have their fair hearing.v.
Performance
metrics, targets and deliverables for any local share
reimbursements, if any, as provided by the State Department
K.
Performance metrics, targets and deliverables shall be updated
annually and issued through sub-regulatory guidance
2.
Cooperation and Reporting
The County Board shall cooperate with the State and federal government in any
reasonable manner, in conformity with the laws of the State, which may be
necessary to qualify for federal aid, including the preparation of plans, making
reports in such form and containing such information as any federal agency may
require from time to time, and compliance with such provisions as the federal
government may from time to time find necessary to assure correctness and
verification of the reports.
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3.
County Board Responsibilities
a.
Appoint a County Department Director
i.
The County Board shall appoint a County Department Director or
shall appoint someone acting in the capacity of a director. At no
time will the County Department be without the services of a
County Department Director or an Acting Director.
ii.
Upon appointment of a County Department Director, or someone
acting in the capacity of the director, the County Board shall
formally notify the State Department, within five (5) business days
of the effective date of the appointment, of the individual appointed
and contact information, including phone and email addresses.
Notification should be emailed to hcpf_countyrelations@state.co.
This text is long and has been trimmed here. Open the source document for the complete record.
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