5139-67-06 Audit requirements and record retention.

The department and the county shall adhere to the following:

(A) Each county receiving grant funds shall in writing request the auditor of state, or an accounting firm authorized by the auditor of state, to perform additional procedures as part of the audit performed under section 117.11 of the Revised Code. The cost of performing the additional audit procedures shall be paid from the felony delinquent care and custody fund;

(1) The scope of the additional procedures shall include legal compliance with section 5139.34 and division (C) of section 5139.43 of the Revised Code;

(2) The scope of the additional procedures shall also include examination of revenues and expenses, cash balance, outstanding obligations and internal controls;

(3) The county will provide a copy of applicable sections of the audit report upon request of the department;

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

(1) Pre-audit the grant applications, program amendments, and requests for funds to ensure that the fiscal forms have been submitted and completed in accordance with fiscal guidelines of the department;

(2) Interim exceptions. Within sixty days of the date of the filing of the reports under rule 5139-67-04 of the Administrative Code, the department shall, in writing, notify the administrative juvenile judge and the board of county commissioners of its intention to take interim exceptions to any of the actual and projected costs therein reported. The department shall include in this notification a sum certain by which it proposed to either increase or decrease the budget and/or expenditures incurred during the fiscal year covered by this report;

(C) The department may perform an audit of the county felony delinquent care and custody fund;

(D) When a county is selected for audit, per the department's audit schedule, the department will perform an audit of the fiscal records in accordance with generally accepted auditing standards, including such tests of the funding records and such auditing procedures considered necessary under the circumstances. The scope of the audit will encompass, but may not be limited to the following:

(1) An examination of financial transactions, funds, and reports pertaining to the approved funding application;

(2) An evaluation of compliance with the established rules;

(E) Upon the completion of the audit examination, an audit report shall be issued which shall include a statement regarding:

(1) The expenditures of funds, and;

(2) Compliance with applicable regulations and the approved funding application, with approved revisions and amendments;

(F) Audit and actual exceptions. Within one hundred twenty days of the date the department conducts an audit as required under paragraph (D) of this rule, the department shall, in writing, notify the administrative juvenile judge and board of county commissioners of its intention to take exception to any of the actual costs therein reported. The county fiscal agent shall be required to refund to the department from the county general revenue fund the amount of the exception to the reported costs within forty-five days of notification unless an appeal of the exception is filed;

(G) Appeal of exceptions: if within forty-five days of the date of department notification to take exception under paragraph (A) or (B) of this rule, the administrative juvenile judge or the board of county commissioners does not file with the department a request for appeal, the action proposed in the department of youth services notification to take exception shall be final and binding. If an appeal is filed, the director of the department shall notify the court of the decision regarding the appeal within forty-five days. The actions proposed in the department's notification to take exception may be made final and binding before the expiration of the forty-five days within which the county may appeal if the administrative juvenile judge and board of county commissioners waive, in writing, the provisions of this paragraph. If the determination is made that the appeal of the exception is denied, the county fiscal agent shall be required to refund to the department from the county general revenue fund the amount of the exception to the reported costs within thirty days of notification of the appeal decision;

(H) With reasonable advance notice, provide the department access to records, including any or all documents related to the felony delinquent care and custody fund;

(I) Maintain accurate fund records which indicate all income and expenditures for the felony delinquent care and custody fund;

(J) Keep the records current and legible;

(K) Support all income and expenditures with documentation to provide a clear audit trail for every financial transaction;

(L) Proper inventory schedules must be maintained for all equipment items purchased with grant funds. Inventories must include the following information for all equipment: number, purchase price, date of acquisition, vendor, condition and location;

(M) County-established guidelines will be used for the salvage of unusable, damaged, and/or unrepairable equipment taken out of the juvenile court or projects funded by the youth services grant. If no county guidelines exist, state guidelines shall be followed;

(N) The administrative juvenile court judge and board of county commissioners must maintain all records related to this chapter until the department has accepted a final closing expenditures report for the last year for which the record documents or supports a cost or expenditure, or for three years, whichever is longer.

R.C. 119.032 review dates: 08/01/2012 and 08/01/2017
Promulgated Under: 119.03
Statutory Authority: 5139.04(D)
Rule Amplifies: 5139.34 , 5139.36 , 5139.41 , 5139.43 , 5139.44
Prior Effective Dates: 8/1/97, 10/25/02, 2/17/06