Skip to main content
Back To Top Top Back To Top
This website publishes administrative rules on their effective dates, as designated by the adopting state agencies, colleges, and universities.

Chapter 5122:1-3 | Financial Requirements for Community Mental Health Boards

 
 
 
Rule
Rule 5122:1-3-01 | Financial requirements for boards.
 

(A) Purpose. This rule establishes application, eligibility, allocation methods, accounting standards, auditing standards, and financial reporting requirements for the disbursement of funds to boards.

(B) Application. The provisions of this rule shall apply to all boards receiving funds from the department for community mental health and addiction services as listed in section 340.09 of the Revised Code or receiving funds for federally-funded programs that are processed through the department of mental health and addiction services to boards.

(C) Definitions.

(1) "Board" means any board authorized pursuant to Chapter 340. of the Revised Code, such as a board of alcohol, drug addiction, and mental health services; an alcohol and drug addiction services board; or a community mental health board.

(2) "Provider" means a public or private community addiction services provider or community mental health services provider with which a board enters into a contract pursuant to section 340.03 of the Revised code, for the provision of mental health and addiction services or facilities paid with funds which originated or passed-thru the department.

(3) "Department" means the Ohio department of mental health and addiction services as established by section 121.02 of the Revised Code.

(4) "Director" means the chief executive of the department as established by section 121.02 of the Revised Code.

(5) "Eligible operating expenses" means expenditures pursuant to a budget submitted in accordance with section 340.08 of the Revised code and approved by the department on accordance with section 5119.22 of the Revised Code and shall include salaries and fringes for qualified personnel; operation, maintenance, and service costs; per diem and travel expenses incurred in the performance of official duties; and other expenditures specifically authorized and approved by the director or the director's designee. Reimbursement may also be made for expenditures for services provided by contract with public or private providers.

(6) "Estimated Receipts and Expenditures, Form MHA-FIS-040-B" means an annual financial report of estimated receipts and disbursements, which sets forth estimated financial reporting data for all funds received and expended resulting from appropriation of funds from the current appropriations bill as well as board administered funds.

(7) "Fiscal year" means the yearly accounting period designated by the year in which it ends. The state fiscal year begins on July one and ends on June thirtieth.

(8) "Report of Actual Receipts and Expenditures, Form MHA-FIS-040-A" means an annual financial report of actual receipts and disbursements, which sets forth actual financial reporting data for all funds received and expended resulting from appropriation of funds from the current appropriations bill as well as board adminstered funds.

(D) Regulations governing disbursements to boards.

(1)

The board shall submit to the department the "Estimated Receipts and Expenditures, Form MHA-FIS-040-B." The form constitutes application for state and federal funds, as well as the budget required in accordance with section 340.08 of the Revised Code. The form shall include the eligible operating expenses as defined by paragraph (C)(5) of this rule.

(2) Eligibility

(a) Any board or combination of boards can receive funds appropriated for such purpose by the general assembly.

(b) Funds appropriated are disbursed to boards only for services included in the "Estimated Receipts and Expenditures, Form MHA-FIS-040-B" as approved by the department.

(c) In order to obtain funds that are processed through the department a board must comply with all requirements specific to the program and funding source and ensure through contract that providers are also in compliance with all requirements specific to the program and funding source.

(3) Allocation method

(a) All funds appropriated are disbursed in the amounts and as designated by line items of the current appropriations bill.

(b) The funds available to each board are allocated on an annual basis subject to quarterly review of appropriations levels.

(c) The federal funds processed through the department are allocated in accordance with state and federal regulations.

(4) Payment schedules

(a) State funds are disbursed to boards on a quarterly basis or a schedule set by the award, subject to state cash flow limitations.

(b) The total amount of state funds that can be awarded to any given board is limited by the current appropriations bill for each line item.

(c) Payments of board obligations by the county auditor, or in a joint-county district, the county auditor designated as the fiscal agent for the district, shall be in accordance with the "Estimated Receipts and Expenditures, Form MHA-FIS-040-B " as approved by the director.

(d) Unless otherwise stated, all state and federal funds disbursed by the department to the boards, shall be spent or obligated for budgeted services or administrative operations by the close of the state fiscal year.

(e) Boards shall insure that payments to providers for services provided do not include reimbursement for expenses eligible for payment by federal grants, third-party payors or income from client fees.

(f) The director shall not withhold funds in accordance with section 340.08 of the Revised Code for failure to comply with an approved budget without prior notification to and consultation with the board and the appropriate board(s) of county commissioners.

(g) Federal funds processed through the department are disbursed to boards in accordance with state and federal regulations.

(5) Accounting standards

(a) Funds received by a board from the department shall be deposited only in the county treasury. Funds shall be disbursed from the county treasurer's office or county auditor's office, based on recommendation by the board, following methods and procedures established by the state auditor's office.

(b) The department shall accept any accounting standards acceptable by the Ohio auditor of the state.

(6) Auditing standards

(a) Boards receiving funds from the department are audited by the state auditor's office. A copy of the audit report must be forwarded to the department within thirty days following its receipt by the board.

(b) Boards shall follow the guidelines of the state auditor's office for conducting annual fiscal audits. Audits must include, at a minimum, as part of the audit scope "Financial and compliance" as defined by the comptroller general's "Government Auditing Standards."

(c) A copy of the audited financial statements, the opinion issued, and any management letters must be forwarded to the department within thirty days following its receipt by the board.

(d) All fiscal records are subject to review by the department.

(7) Financial reporting format

(a) The department publishes the annual statistical report which includes financial reporting data from the "Report of Actual Receipts and Expenditures, Form MHA-FIS-040-A."

(b) The board must file an annual financial report, using the "Report of Actual Reciepts and Expenditures, Form MHA-FIS-040-A" by January thirty first following the end of a state fiscal year, for use in the annual statistical report.

(c) The department may require boards to submit additional financial reports as needed to account for funds provided.

Last updated April 4, 2022 at 9:34 AM

Supplemental Information

Authorized By: R.C. 5119.22
Amplifies: R.C. 5119.22, 340.03
Five Year Review Date: 4/4/2027
Prior Effective Dates: 11/20/2014
Rule 5122:1-3-02 | Department withholding funds.
 

(A) The Ohio department of mental health and addiction services (OhioMHAS) may withhold all or part of the state and federal funds allocated or granted by the department to a board of alcohol, drug addiction, and mental health services for any of the following:

(1) The failure to comply with Chapter 340. or section 5119.22, 5119.24, 5119.36, or 5119.371 of the Revised Code.

(2) The board denies available service on the basis of race, color, religion, creed, sex, age, national origin, disability as defined in section 4112.01 of the Revised Code, or developmental disability.

(3) The failure of the board to comply with rules adopted by OhioMHAS.

In accordance with this rule, the director shall withhold funds from a board when required to do so by division (A)(4) of section 340.08 of the Revised Code or division (G)(1) of section 5119.22 of the Revised Code

(B) If a board is in violation of any of the provisions of paragraph (A) of this rule, the director of OhioMHAS, or the director's designee, shall give the board written notice of the intent to withhold funds by certified mail, return receipt requested. A copy of the notice shall be mailed to the attorney or other representative of record representing the board. The notice shall:

(1) Identify the areas of noncompliance and the action necessary to achieve compliance and shall offer technical assistance to the board to assist it in achieving compliance;

(2) Contain a statement informing the board that within thirty days from reciept of the notice of noncompliance it shall either:

(a) Present its position that it is in compliance; or,

(b) Submit evidence of corrective action the board took to achieve compliance.

(C) After receiving the board's position or evidence, the director of OhioMHAS, or the director's designee, shall before withholding funds hold a hearing to determine if there are continuing violations and that assistance is rejected or the board is unable, or had failed, to acheive compliance.

(1) The director, or director's designee, shall set the date, time and place for the hearing within thirty days after receipt of the boards position or evidence. A copy of the hearing notice shall be mailed by certified mail, return receipt requested, to the boards representative or its attorney and to the board.

(2) The hearing notice shall contain a statement that at the hearing, the board's representative may appear in person or be represented by its attorney or may present its position, arguments or comments in writing and at the hearing it may present evidence and examine witnesses appearing for and against it.

(D) OhioMHAS shall conduct the adjudication hearing following the procedures in section 119.09 of the Revised Code and among other things may appoint a referee or hearing examiner to conduct the proceedings and make recommendations as appropriate. The referee or hearing examiner shall make the appropriate recommendation within thirty days upon completion of the hearing.

(E) During any hearing procedure conducted under this rule, the funds the department intends to withhold will continue to be disbursed until such time as the referee or hearing examiner makes their recommendation and the director, or director's designee, approves, modifies, or disapproves the recommendation.

(F) The director may appoint a mentor as an alternative to withholding funds as set forth in division (C) of section 5119.25 of the Revised Code.

(G) OhioMHAS shall provide the board and the boards representative or its attorney, a certified copy of its decision by certified mail, return receipt requested.

(H) If the director's, or director's designee's, decision after the hearing is to withhold funding, the certified copy of the decision shall contain notice of the boards right to appeal and file its notice of appeal of the decision within fifteen days of the receipt of the notice of the department's decision.

(I) If the board decides to appeal director's, or director's designee's, decision, the board shall appeal the decision following the procedures in section 119.12 of the Revised Code.

Last updated December 16, 2021 at 4:40 PM

Supplemental Information

Authorized By: 5119.25
Amplifies: 5119.25
Five Year Review Date: 12/16/2026