Section 434.2 Definitions

Section 434

Section 434.2  Definitions

"Audit/Review"

means an examination of financial transactions, accounts and reports, and an

evaluation of internal controls or an evaluation of compliance with applicable

laws and regulations.  An audit/review may also include an examination of

efficiency and economy in the use of resources (such as personnel, property, or

space), or an examination to determine whether desired results are effectively

achieved.

"Certified

Audits" means the entity's annual financial and compliance report that has

been examined by an Independent Licensed Certified Public Accountant.

"Cost

Report" means a report of all costs incurred and revenue earned by a

provider that are directly associated with services purchased by the Department

for its clients.

"Department"

or "DCFS" means the Illinois Department of Children and Family

Services.

"Desk

Review", as used in this Part, means a review by the Department's Office

of Financial Review of certified public audits and cost reports submitted by

the provider agency.

"Field

Auditor" is a Department employee whose responsibilities include

conducting audits of contracted purchase of service providers to confirm their

compliance with applicable laws and regulations, and to make recommendations to

the Director regarding the results of those audits.

"Follow-up

Review" means a viewing of past occurrences or contemplation or

consideration of past events, circumstances, or facts.

"Investigation"

means an examination of employee conduct, security systems, and contractor

conduct to assure compliance with State, federal and Departmental rules and

regulations.  A Department investigation is not intended to focus on

criminality or prepare cases for prosecution, but rather to obtain sufficient

documentation to assure the Director of the appropriateness of Department and

service provider employee conduct and the safeguarding of Department assets

ms, and contractor

conduct to assure compliance with State, federal and Departmental rules and

regulations.  A Department investigation is not intended to focus on

criminality or prepare cases for prosecution, but rather to obtain sufficient

documentation to assure the Director of the appropriateness of Department and

service provider employee conduct and the safeguarding of Department assets.

"Limited

Review" means an examination of financial transactions, accounts and

reports, an evaluation of internal controls, or an evaluation of compliance

with applicable laws and regulations that is limited in scope to examine only

certain areas.  (Although this is not a full scope audit, it may include an

examination of efficiency and economy in the use of resources (such as

personnel, property, space) and an examination to determine whether desired

results are effectively achieved.)

"Preliminary

Review" means a limited review of financial transactions, accounts,

reports and internal controls and compliance with contract provisions to assess

the full scope needed during an upcoming audit.

"Related

Party Transaction" means a financial transaction in which one party has

the ability to influence the management or operating policies of the other

party.  Disclosure of related party transactions should include the nature of

the relationship, a description of the transactions, including dollar amounts,

and amounts due to and from related parties.

"Scope of

the Audit or Investigation" means the activities and testing procedures

that the auditor or investigator deems necessary to conduct an examination or

investigation.