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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 22. HEALTH |
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SubTilte 22-A. MENTAL HEALTH |
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Chapter 22-A63. CERTIFICATION STANDARDS FOR SUBSTANCE USE DISORDER TREATMENT AND RECOVERY PROVIDERS |
Section 22-A6310. FISCAL MANAGEMENT STANDARDS
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6310.1 The provider shall have adequate financial resources to deliver all required services and shall provide documented evidence at the time of certification and recertification that it has adequate resources to operate a SUD program. Documented evidence shall include a current financial statement reviewed and approved by the governing body.
6310.2 A provider shall have fiscal management policies and procedures and keep financial records in accordance with generally accepted accounting principles (GAAP).
6310.3 A provider shall include adequate internal controls for safeguarding or avoiding misuse of client or organizational funds.
6310.4 A provider shall have a uniform budget of expected revenue and expenses as required by the Department. The budget shall:
(a) Categorize revenue by source;
(b) Categorize expenses by type of service;
(c) Estimate costs by unit of service; and
(d)Be reviewed and approved by the provider’s governing authority prior to the beginning of the current fiscal year.
6310.5 A program shall have the capacity to determine direct and indirect costs for each type of service provided.
6310.6 If a program charges for services, the written schedule of rates and charges shall be conspicuously posted and available to staff, clients, and the general public.
6310.7 The current schedule of rates and charges shall be approved by the provider’s governing authority.
6310.8 A provider shall maintain a reporting mechanism that provides information to its governing body on the fiscal performance of the provider at least quarterly.
6310.9 Fiscal reports shall provide information on the relationship of the budget to actual spending, including revenues and expenses by category and an explanation of the reasons for any substantial variance.
6310.10 The provider’s governing body shall review each fiscal report and document recommendations and actions in its official minutes.
6310.11 Every three (3) years, each provider with a Human Care Agreement shall have an audit by an independent certified public accountant or certified public accounting firm, and the resulting audit report shall be consistent with formats recommended by the American Institute of Certified Public Accountants (AICPA). A copy of the audit report and management letter shall be submitted to the Department within one-hundred-twenty (120) calendar days after the close of the program's fiscal year.
6310.12 Providers shall correct or resolve adverse audit findings.
6310.13 A provider shall have policies and procedures regarding:
(a) Purchase authority, product selection and evaluation, property control and supply, storage, and distribution;
(b) Billing;
(c) Controlling accounts receivable;
(d) Handling cash;
(e) Management of client fund accounts;
(f) Arranging credit; and
(g) Applying discounts and write-offs.
6310.14 All business records pertaining to costs, payments received and made, and services provided to clients shall be maintained for a period of six (6) years or until all audits and ongoing litigations are complete, whichever is longer.
6310.15 All providers must maintain proof of liability insurance coverage, which must include malpractice insurance of at least three million dollars ($3,000,000) aggregate and one million dollars ($1,000,000) per incident and comprehensive general coverage of at least three million dollars ($3,000,000) per incident that covers general liability, vehicular liability, and property damage. The insurance shall include coverage of all personnel, consultants, or volunteers working for the program.
6310.16 If a program handles client funds, financial record keeping shall provide for separate accounting of those client funds.
6310.17 A provider shall ensure that clients employed by the organization are paid in accordance with all applicable laws governing labor and employment.
6310.18 All money earned by a client shall accrue to the sole benefit of that individual and be provided to the client or the client’s legal representative upon discharge or sooner.