Section 29-2315. ADMINISTRATIVE SERVICES: MANAGEMENT AND ADMINISTRATION -- FISCAL MANAGEMENT STANDARDS

 

2315.1 The facility or program shall have adequate financial resources for the program or facility to deliver all required services. Evidence of adequate financial resources includes but is not limited to:

 

(a) Documented evidence of adequate resources to operate its programs or facilities; or,

 

(b) A minimum line of credit sufficient to support ninety (90) days of operating expenses.

 

2315.2 A substance abuse treatment facility or program shall have fiscal management policies and procedures in accordance with generally accepted accounting principles.

 

2315.3 All financial records shall be kept according to generally accepted accounting principles (GAAP).

 

2315.4 A substance abuse treatment facility or program shall include adequate internal controls for safeguarding or avoiding misuse of patient or organizational funds.

 

2315.5 A substance abuse treatment facility or program 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 types of services;

 

(c) Estimate costs by unit of service; and

 

(d) Be reviewed and approved by the governing authority prior to the beginning of the current fiscal year;

 

2315.6 A substance abuse treatment facility or program shall have the capacity to determine direct and indirect costs for each type of service provided.

 

2315.7 If a facility or program charges for services, the written schedule of rates and charges shall be conspicuously posted and available to staff, patients and the general public.

 

2315.8 The current schedule of rates and charges shall be approved by the governing authority.

 

2315.9 A substance abuse treatment facility or program shall maintain a reporting mechanism that provides at least quarterly information on the fiscal performance of the facility or program.

 

2315.10 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.

 

2315.11 Fiscal reports shall be available to the staff and governing authority that has responsibility for budget and management.

 

2315.12 The governing body shall review each fiscal report and document recommendations and actions in its official minutes.

 

2315.13 An independent certified public accountant shall conduct an audit triennially of the fiscal operations. The audit report and management letter shall be sent to the Department by the 31st day of March in the year following the audit period.

 

2315.14 The facility or program shall correct or resolve adverse audit findings following approval by the governing body.

 

2315.15 A substance abuse treatment facility or program 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.

 

2315.16 Fiscal records shall be retained for at least five (5) years or until all litigation or adverse audit findings, or both, are resolved.

 

2315.17 A facility or program shall maintain insurance coverage.

 

2315.18 If a facility or program handles client funds, financial record keeping shall provide for separate accounting of patient funds.

 

2315.19 A facility or program shall ensure that patients employed by the organization are paid in compliance with all applicable laws governing labor and employment.

 

2315.20 All money earned by a patient shall accrue to the sole benefit of that individual.

 

 

source

Final Rulemaking published at 47 DCR 9341 (November 24, 2000), adopting Emergency and Proposed Rulemaking published at 47 DCR 7708, 7722 (September 22, 2000).