Chapter 5139-63 Fiscal Rules for Community Juvenile Corrections Facilities

5139-63-03 Budgetary requirements.

This rule identifies the major elements of which the county(s) must be aware to correctly complete required budgetary reports.

(A) Financial reports. The financial reports required by this chapter are designed to enable the department to monitor the various schedules of the approved grant.

(B) Grant budgets. The grant budgets shall be annual, based on the state fiscal year. The grant budgets shall include budget schedules and narratives.

The facility shall follow the chart of accounts provided by the department in establishing a budget for projected expenditures of funds. All obligations must be incurred, pursuant to Chapter 5139-63 of the Administrative Code, within the grant period and liquidated by September thirtieth of the following fiscal year. Only exceptions are unemployment and ' workers compensation, which will be recognized as an expense in the year that they are paid.

(C) Non supplanting rule. Funds provided to a county facility shall not be used to supplant county expenditures.

(D)

Transfer of funds. Expenditures in any line item may not exceed the approved amount by more than ten per cent. If expenditures exceed or are projected to exceed the approved budget amount by ten per cent, a budget revision shall be submitted prior to the transfer with attached schedules and narrative explaining the need for the transfer. Such transfer may be made only with a prior approved budget revision.

(E) Equipment purchases. Equipment purchases are limited to the items approved in the budget plan and can be used for the grant. A budget revision must be submitted and approved by the department prior to any additional equipment purchase or change in original approved equipment request.

Equipment purchased will remain the property of department for a period of five years from the date of acquisition. After the five-year period, the equipment items purchased will become the property of the county and facility.

Use of grant equipment by other programs must be approved in advance by the department.

Minor equipment shall be listed in the 2100 line under supplies and materials.

If an emergency situation should occur, which would require a budget revision to repair/replace equipment, the facility should contact the department for approval. The facility shall follow-up their request in writing and a written approval should follow from the department.

(F) Total expenditures submitted to the department shall not exceed the grant for the fiscal year. Emergency and supplemental requests will be evaluated based on the nature of the emergency and availability of state funds.

(G) Commingling of funds. Grant funds from the department shall be maintained separately and able to be audited independently. Revenue from sources other than grant funds (i.e., donations, grants, NSLA, etc.) will not be deposited or commingled with grant funds.

(H) Other resources. All other funds received from any other sources will be reported on the grant budget and quarterly requests. Non general revenue funds shall be identified by line item to reduce expenditures or expanded program services. The facility shall work with the department to develop any possible resources and revenues which would expand the funding base of the facility (i.e., NSLA funds and other resources). Funds from other revenue sources which are not used to expand existing services (i.e., reimbursement from food sold to staff and visitors, refunds rebates, etc.) will be reported as a reduction in expenditures.

(I) Medical. Expenses incurred for the examination and appropriate regular medical care and treatment of youth residing in the facility shall be considered routine. Expenses incurred in the event of hospitalization, or other extraordinary type of medical treatment, shall be considered major medical. If expenses for major medical exceed the approved medical amount in line 1500, the facility may request supplemental funds pursuant to paragraph (F) of rule 5139-63-03 of the Administrative Code.

(J) . Accrued vacation, sick, personal and compensatory time. All leave shall be accrued in accordance with county/district policy. The department will recognize this expense when paid. This expense category is classified as an accrued liability. Transfer of surplus funds from this line item will be restricted to the excess of the established liability. The department will only allow this liability for leave time earned by the employee while employed at the facility.

(K) The facility must have an approved system to track meal reimbursements.

Effective: 12/30/2012
R.C. 119.032 review dates: 10/15/2012 and 08/01/2017
Promulgated Under: 119.03
Statutory Authority: 5139.04(D)
Rule Amplifies: 5139.23 , 5139.33 , 2151.151
Prior Effective Dates: 3/30/92(Emer.), 6/25/92, 10/25/02, 10/20/07

5139-63-04 Allowable expenses.

The categories of allowable expenses. The department will provide a chart of accounts, and will provide specific guidance for the attached/supporting schedules, which are to be used to implement the grant as specified in Chapter 5139-63 of the Administrative Code.

(A) Salary and fringe benefits. This category includes salaries and fringe benefits for staff funded by the grant.

(B) Overtime.Overtime shall be limited to the direct support of operations related to the care and custody of the juvenile resident.

(C) Medical. This category is limited to the youth residing in the facility in need of medical assistance. Examples are physicians, dental, and psychologists.

(D) Education/recreation.

(E) Food. This category is limited to food for youth residing in the facility. NSLA and meal cost reimbursements are required to be recorded under "other funding sources" in accordance with rule 5139-63-03 of the Administrative Code.

(F) Supplies and materials. This category is for supplies and materials need for the day to day operations of the facility including minor equipment (under five hundred dollars).

(G) Motor vehicle. This category includes expenditures for maintenance/repairs of operating vehicles for the facility. This expense includes gas, oil, leasing, repairs, insurance, and licenses/permits.

(H) Travel/staff development. This category is limited to staff travel and professional development, in support of youth programs.

This includes the costs incurred for staff attending conferences, seminars, registration fees, and in-service training. Expense reports must be submitted for all training and training must be job related.

Out of state travel/registration must have prior approval of the department.

(I) Communications. This category includes expenditures for operating the facility. Examples are telephone, postage, postage meter, and shipping.

(J) Fuels and utilities. This category includes expenditures for the operation of the facility. Examples are gas, water, electric and cable television services.

(K) Maintenance and repairs. This category includes costs required to maintain and repair the facility and/or equipment used by the facility. Examples are maintenance contracts, heating and cooling equipment and trash removal services (non -biohazard).

(L) Printing, binding, advertising. This category includes expenditures for printing, advertising, and subscription/publications.

(M) General and other. This category includes sundry expenditures as well as these for drug tests for employees; drug tests for potential employee candidates; employee background verification services; hepatitis vaccines for employees; legal and professional services (non-litigious to the department; non-fringe, employee insurance; tuberculosis tests for employees; youth haircuts and any other item that does not already have a reasonable classification category.

(N) Equipment. Expenditures for equipment having a cost or fair market value of five hundred dollars or greater at time of acquisition, may be approved only if the equipment is used in the direct performance of services to youth or support staff with the facility.

(O) Indirect cost. This category includes services and other administrative functions provided to the facility by the county. These charges shall not exceed two per cent of the total approved grant and detailed documentation shall be submitted.

(P) Capital repairs. Capital funds cannot be commingled with other grant funds. Expenditures must be made in accordance with state, federal, and local laws for such facilities which substantially provide direct service for eligible youth.

Effective: 12/30/2012
R.C. 119.032 review dates: 10/15/2012 and 08/01/2017
Promulgated Under: 119.03
Statutory Authority: 5139.04(D)
Rule Amplifies: 5139.23 , 5139.33 , 2151.151
Prior Effective Dates: 3/30/92 (Emer.), 6/25/92, 10/20/07

5139-63-05 Non-allowable expenses.

The following expenditures are non-allowable:

(A) All costs associated with fund-raising activities.

(B) All costs for awards or social functions for staff.

(C) Any program that generates profits for the county.

(D) Entertainment for staff, except when directly supervising youth activities.

(E) All costs related to licensing, professional fees, or dues for personnel, unless required by the employee's position description .

(F) College tuition reimbursement for facility employees.

(G) Expenditures that have not been approved by the department related to major dental, major medical, and hospital for youth residing in the facility.

(H) Food cost for staff and visitors including gifts and gratuitous items.

(I) Any other expense or activity that would be a violation of federal, state or local laws.

(J) Payment of accrued vacation, sick, personal or compensentory leave prior to employment at the facility.

(K) Any bonuses for staff, to include compensation time, monetary awards or "in-kind" adjustments.

Effective: 12/30/2012
R.C. 119.032 review dates: 10/15/2012 and 08/01/2017
Promulgated Under: 119.03
Statutory Authority: 5139.04(D)
Rule Amplifies: 5139.23 , 5139.33 , 2151.151
Prior Effective Dates: 3/30/92 (Emer.), 6/25/92, 10/20/07

5139-63-07 Audit scope requirements.

It shall be the responsibility of the department to perform the following auditing functions:

(A) The department will audit the fiscal and performance records in accordance with generally accepted auditing standards. The scope of the audit will encompass, but not be limited to, the following:

(1) An examination of financial transactions, accounts, and reports pertaining to the approved plan.

(2) An evaluation of compliance with the established rules and plan under Chapters 5139-61 and 5139-63 of the Administrative Code.

(B) Upon the completion of the audit examination an audit report shall be issued which shall include a management comments section regarding:

(1) The expenditures of funds.

(2) Compliance with applicable regulations and the approved grant plan with approved revisions and amendments.

(3) Any noted citations and exceptions.

(4) The appeal process outlined in rule 5139-63-03 of the Administrative Code.

(C) All audits having the issuance of citations or exceptions will require the facility to complete an itemized corrective action plan addressing the timetable and plan of action to fully resolve the audit issue. This plan shall be submitted to the department with sixty days of receipt of the formal audit report.

(D) Audit findings. Once resolved, fiscal findings ' shall be paid from the governing county's general fund. The governing county's fiscal agent shall be required to refund to the department from the governing county's general fund the amount of the fiscal finding within forty-five days of notification unless an appeal of the exception is filed.

Effective: 12/30/2012
R.C. 119.032 review dates: 10/15/2012 and 08/01/2017
Promulgated Under: 119.03
Statutory Authority: 5139.04(D)
Rule Amplifies: 5139.23 , 5139.33 , 2151.151
Prior Effective Dates: 3/30/92 (Emer.), 6/25/92, 10/20/07

5139-63-08 Audit process.

(A) Appeal of audit findings. Within forty-five days of the date of the formal audit report, the facility administrator may file a request for an appeal. If the facility does not file a request for appeal with the department, the action proposed in the department's report shall be final and binding.

(B) Appeals must follow department process and timelines. Appeals must be submitted to the director, department of youth services, or designee.

Replaces: 5139-63-08

R.C. 119.032 review dates: 08/01/2012 and 08/01/2017
Promulgated Under: 119.03
Statutory Authority: 5139.04(D)
Rule Amplifies: 5139.23 , 5139.33 , 2151.151
Prior Effective Dates: 3/30/92 (Emer.), 6/25/92, 10/20/07

5139-63-09 Financial and budget control reports.

This rule identifies the major elements to correctly complete the required financial reports.

(A) The financial report and request for funds system is based on a quarterly cash advance, with a quarterly and year-to-date report of expenditures, by schedule, with a report of cash balance on hand at the end of the reporting period.

The required financial report shall be submitted according to the annual schedule prepared by the department. If the facility fails to submit the required reports, the department shall withhold any future payments until such reports are submitted.

(B) Forms/schedules. The form/schedules required shall be submitted to the department according to the department's instructions and the annual schedule.

(C) Supplemental funding. Any request for funds outside of the approved budget shall be submitted to DYS as a supplemental request, in accordance with instructions provided by DYS.

(D) Closing report. The facility shall submit a final report of grant budget expenditures to the department by October fifteenth each year closing the grant for the fiscal year. All funds reported on the closing report must be encumbered by June thirtieth of the grant year. All expenditures must be closed by September thirtieth of the grant year.

(E) Carryover funds. Unspent funds are to be kept in the county's grant account. These funds will be deducted from the facility's grant request in the third quarter of the next fiscal year. The department and facility shall adjust the current year's allocation by the amount of carryover from the previous year.

(F) Quarterly requests.

Effective: 12/30/2012
R.C. 119.032 review dates: 10/15/2012 and 08/01/2017
Promulgated Under: 119.03
Statutory Authority: 5139.04(D)
Rule Amplifies: 5139.23 , 5139.33 , 2151.151
Prior Effective Dates: 3/30/92 (Emer.), 6/25/92, 10/25/02, 10/20/07

5139-63-10 Record retention, cash balances and inventory.

(A) Records retention.

(1) With reasonable advance notice, the department may require the facility to produce records, including any or all documents related to the grant.

(2) The facility must maintain accurate accounting records which indicate all income and expenditures for the grant.

(3) The records must be kept current and legible. The records should be retained for the amount of time deemed appropriate according to the state of Ohio general retention schedules, most recent version.

(4) All income and expenditures must be supported with documentation to provide a clear audit trail for every financial transaction.

(B) Cash balances. Cash balances must be reconciled with the county auditor records monthly.

(C) Inventory.

(1) Proper inventory schedules must be maintained manually for all equipment items purchased with grant funds. Inventories shall be submitted to the department each September with the annual report. Inventories must include the following information for all facility equipment: quantity, description, serial number, identification number, purchase price, date of acquisition, vendor, condition, and location.

(2) After five years of service, equipment can be salvaged in accordance with county-established guidelines for the salvage of unusable, damaged, and/or unrepairable equipment. Documentation must be maintained on the disposition of all equipment removed from the facility. The department shall be provided the opportunity to review all equipment to be salvaged.

Effective: 12/30/2012
R.C. 119.032 review dates: 10/15/2012 and 08/01/2017
Promulgated Under: 119.03
Statutory Authority: 5139.04(D)
Rule Amplifies: 5139.23 , 5139.33 , 2151.151
Prior Effective Dates: 3/30/92 (Emer.), 6/25/92, 10/20/07