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

10 CCR 2505-5

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

10 CCR 2505-5

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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

15

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.

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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

10 CCR 2505-5

Executive Director of Health Care Policy and Financing

16

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

CODE OF COLORADO REGULATIONS

10 CCR 2505-5

Executive Director of Health Care Policy and Financing

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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10 CCR 2505-5

Executive Director of Health Care Policy and Financing

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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10 CCR 2505-5

Executive Director of Health Care Policy and Financing

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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10 CCR 2505-5

Executive Director of Health Care Policy and Financing

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

10 CCR 2505-5

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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23

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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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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52

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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53

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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57

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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60

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.

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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