Section 635.60 Financial Management Systems and Audits of Delegate Agencies

Section 635

Section 635.60  Financial

Management Systems and Audits of Delegate Agencies

a)         Budgets – All delegate agencies and potential delegate

agencies shall submit a budget proposal for each fiscal year for approval by

the Department based on subsection (b) of this Section.  This budget must

include all program income related to family planning and provide for all such

income to be retained by the delegate agency and used for program purposes. At

least ten percent of the budget must come from sources other than the Family

Planning Program grant award.

b)         Use of project funds – Funds will be used only for the direct

cost of administering, operating and maintaining a project.  The following

direct costs are examples of those which may be incurred when specified in the

Agreement:

1)         Personal services costs, including salaries and fringe benefits

for full-time and part-time employees of the project.

2)         Fees for consultants, specialists and other operating

contractual requirements, pursuant to Section 15 of the State Finance Act

exclusive of consultant services for patient care.

3)         Travel of personnel, consultants and specialists in carrying

out the activities approved for the applicant's program.  Travel costs are the

expenses for transportation, lodging, and subsistence for personnel who are on

travel status on official business for the organization.  Such costs will be

charged on an actual basis, i.e., mileage and per diem when necessary; however,

reimbursement shall not exceed the maximum rate established in the Travel

Regulations promulgated by the Travel Regulation Council (80 Ill. Adm. Code

3000) effective on the date of travel, unless otherwise agreed upon and

specified in the contract drawn between the applicant agency and the

Department.

4)         Supplies/commodities (see Section 15b of the State Finance

Act), as required in the operation of the project, which are directly related

to its operations

Regulations promulgated by the Travel Regulation Council (80 Ill. Adm. Code

3000) effective on the date of travel, unless otherwise agreed upon and

specified in the contract drawn between the applicant agency and the

Department.

4)         Supplies/commodities (see Section 15b of the State Finance

Act), as required in the operation of the project, which are directly related

to its operations.

5)         Direct costs of installation, operation and maintenance of

equipment previously included in the project application and directly related

to the provision of the service(s) funded.  All equipment purchased in total or

in part with project funds shall be the property of the Federal Government.  A

complete and current inventory of equipment shall be maintained and be

available for audit.  No property shall be sold, leased, or otherwise disposed

of without prior written authorization from the Department

("equipment" as defined in Section 20 of the State Finance Act).

6)         Purchase of outpatient care.

c)         Program Income

1)         Program income shall be retained by the delegate agency and

used to fund project activities.

2)         The delegate agency will charge recipients for services not

required in Section 635.90, that are provided by the project, but must apply a

schedule of discounts consistent with requirements of Section 635.70(b), and

635.70(c) of this Part and 42 CFR 59.5(a)(8).

d)         Reimbursement Procedures

1)         Delegate agencies with service grants shall receive

reimbursement based upon client service information submitted to the

Department's agent through an automated clinic visit record system.  The CVR is

Appendix A of this Part.

A)        The Department will reimburse the delegate agency at the rates

shown for those family planning services listed in Appendix C of this Part.

B)        Service information for July 1st through December 31

st

shall be submitted no later than February 5

th

of the contract year

ed to the

Department's agent through an automated clinic visit record system.  The CVR is

Appendix A of this Part.

A)        The Department will reimburse the delegate agency at the rates

shown for those family planning services listed in Appendix C of this Part.

B)        Service information for July 1st through December 31

st

shall be submitted no later than February 5

th

of the contract year.

Service information for January 1

st

through June 30

th

of

the contract year shall be submitted no later than August 5

th

of the

contract year.

C)        Payments shall be made to the delegate agency based upon

monthly billings prepared by the Department's agent.

D)        Delegate agencies must identify each expenditure submitted for

reimbursement  with a voucher or check number in order to maintain a clearly

defined audit trail.  All expenditures relating to the Family Planning funded

program must be traceable through the delegate agency's internal record

system.  Invoices, bills, purchase orders, etc., must be attached or

cross-referenced on the agency vouchers or check stubs and kept on file for

three years beyond the end of the grant award period.

E)        Expenditures must be documented by dates of issue of voucher or

check, name and address of organization or individual to whom payment was made,

and purpose of the expenditure.  For periodic charges such as salaries, fringe

benefits, rent, utilities, etc., the time period covered must be documented.

F)         In cases in which references to patients must be made to

maintain an audit trail, agencies shall use record numbers or other means of

identification rather than patient names.

G)        The delegate agency director or her/his authorized agent must

sign the reimbursement request.

2)         Delegate agencies will receive sterilization reimbursement

based upon submission and program approval of sterilization consent and request

for financial assistance

aintain an audit trail, agencies shall use record numbers or other means of

identification rather than patient names.

G)        The delegate agency director or her/his authorized agent must

sign the reimbursement request.

2)         Delegate agencies will receive sterilization reimbursement

based upon submission and program approval of sterilization consent and request

for financial assistance.

e)         Audits – Audits of the delegate agencies will be conducted at

least every two years and will be performed in accordance with the following

standards such as, but not limited to, Fiscal Control and Internal Auditing Act

in accordance with the standards promulgated by the United States General

Accounting Office (45 CFR 74, Appendix G & H) and the Professional

Standards of the American Institute of Certified Public Accountants  (Volume I,

Section 150, November, 1982).  Interim audits of the delegate agencies may be

conducted at any time by the Department to ensure fiscal/compliance integrity.

Agencies shall retain, for at least three years after the end of the grant

period all financial records of expenditures, third-party reimbursements and

other program income, and inventory records of all equipment with a unit cost

in excess of $100.00 purchased from project funds.