HomeMy WebLinkAbout72-02 RESOLUTION1
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RESOLUTION NO. 72-02
A RESOLUTION AUTHORIZING THE FAYETTEVILLE POLICE
DEPARTMENT TO ACCEPT A JUVENILE ACCOUNTABILITY
INCENTIVE BLOCK GRANT IN THE AMOUNT OF THIRTY-
FOUR THOUSAND FOUR HUNDRED FORTY DOLLARS
($34,440.00) TO FUND EQUIPMENT AND SOFTWARE TO
IMPLEMENT A TRUANCY PREVENTION PROGRAM; A
RESPONSE PLAN FOR MISSING, EXPLOITED, OR ABDUCTED
CHILDREN CASES; JUVENILE DUI PREVENTION; AND
JUVENILE GANG PREVENTION.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council hereby authorizes the Fayetteville Police
Department to accept a Juvenile Accountability Incentive Block Grant in the
amount of Thirty -Four Thousand Four Hundred Forty Dollars ($34,440.00) to
fund equipment and software to implement a truancy prevention program; a
response plan for missing, exploited, or abducted children cases; juvenile DUI
prevention, and juvenile gang prevention.
PASSED and APPROVED this 7th day of May, 2002.
e L-7 t'..
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i fin. .
•. By: . _�G' /atik / l/� „ /
1 EA tt OODRUFF, y Clerk
APPROVED:
By:
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NAME OF FILE:
CROSS REFERENCE:
Resolution No. 72-02
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05/07/02
Resolution No. 72-02
03/27/02
Letter to Mayor Coody from Barbara Marsac, Assistant Director
Programs & Compliance, Arkansas Department of Human Services
Division of Youth Services, regarding Subgrant Award packet for the
Juvenile Accountability Incentive Block Grant.
04/18/02
Departmental Correspondence to Mayor Coody & Members of the City
Council from Rick Hoyt, Interim Chief of Police, regarding Acceptance
of the Juvenile Accountability Incentive Block Grant
05/07/02
Staff Review Form
05/08/02
Memo to Rick Hoyt, Police Department, from Heather Woodruff, City
Clerk
NOTES:
Arka!as Department of Htan Services
Division of Youth Services
Two Union National Plaza, 4th Floor
P.O. Box 1437, Slot 450
Little Rock, Arkansas 72203-1437
Telephone (501) 682-8654 FAX (501) 682-1339
March 27, 2002
Mayor Dan Coody
City of Fayetteville
113 W. Mountain
Fayetteville, Alt 72701
Dear Mayor Coody:
tel U 2G02
The enclosed Statement of Subgrant Award packet is the official notification that the City
of Fayetteville has been approved for the Juvenile Accountability Incentive Block Grant.
The subgrant award is $34,440.00 and covers the period beginning 03-01-02 through 06-
30-03.
The award packet includes (1) Statement of Subgrant Award; (2) Request for Funds
Form; (3) Audit Requirements; (4) Monthly Report Fomes for the Subgrant Period; and
(5) Implementation Report. Because the subgrant file must contain a copy of each of
these items, please notify this office immediately if any of these items have been omitted.
Return the signed original Statement of Subgrant Award form to the JJDP office within
10 days from the date of thus letter and retain a copy for your file. Please be advised all
onginal documents must be signed in blue ink.
Your subgrant has been assigned the number NK -2110. Please refer to this number on all
correspondence and documents related to the Subgrant.
If you have any questions about your subgrant and the conditions of the subgrant, please
contact Cheryl Moten, JJ Specialist, at (501) 682-1708.
Sincerely,
"1-o &
Barbara Manse
Assistant Director Programs and Compliance
cc Doyle Herndon, Director
Elbert Grimes, Administrator for Program Development
Enclosures
BM:cm
'The Department of Human Services is in compliance with Titles VI and VII of the CMI Rights Act'
Ltl
Cc
Ba
M
Sanas Department of Human Services •
Division of Youth Services
STATEMENT OF SUBGRANT AWARD
GRANTEE NAME & ADDRESS
Arkansas Department of Human Services
Division of Youth Services/JJDP Unit, Slot 503
P.O. Box 1437
Little Rock, AR 72203-1437
Prasuant to authority of the Juvenile Justice and Delinquency Prevention Ad of 1974, as amended,
to your subgrant application, the Admnsas Juvenile Advisory Group, has approved the subgrant
X
Original
Supplemental
In response
below.
and
described
1.
113
Subgrantee
City of Fayetteville,
W. Mountain
Fayetteville, AR
Name
AR
Street
72701
& Address
72701
2. Subgrant Award
Number.NK-2110
3. Fund Year.2001
4. Subgrant
Period:3-01-02
- 6-30-03
5. State Program Designator.
6. Standard Program Area
7. Date Approved:03 )1-02
8. Project
Director:Frank
Johnson
10.Project
Authorized Ortkial:Dan Coody
JAIB
9. Project Title:
Grant
PROJECT
COST CATEGORY
Total Project
COMMENTS:
11.
Personnel:
Salary
Fringe
Travel
(Staff)
12. Professional Services
13. Travel
(Services)
$9,378.00
14.
Equipment
$25,220.00
15.
Matenals
and Supplies
16. Other Operating Expenses
17.
TOTAL
APPROVED
$34,440.00
18.
This eubgmnt Is culled
to general
and special
subgrant
conditions and rules for the adminlsbation
19.
in
STATEMENT
SERVICES
obligated
the
AWARDED
Date
attachments
AWARD:
for the
BY:
OF
program
o
F
THE
Federal
described
s
1%l
DIVISION
funds
ray award.
/u
OF YOUTH
as hereby
by the subgrantee
-ire"
the subgrant
conditions,
in the
:.:
BY:
Signature
Mavor
ACCEPTANCE
and all
and the
- 1
/
modifications,
requirements
of this
OF
subgrant
.41.1.11.4.•
SUBGRANT:
general
: -= •.
20. SUBGRANTEE
I accept
and special
contained
ACCEPTED
pan Coodv,
i/
Si •
Doyle
nature of Division Director
Herndon
of Authorized
Official
y Bial
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Typed Name
3 -7-7
Typed
Date rmme and Tine orAwtwdaed
DHS -1343 (R. 1/99)
Arkamas Department of Han Services
Division of Youth Services
Two Union National Plaza 4th Floor
P.O. Box 1437, Slot 450
Little Rock, Arkansas 72203-1437
Telephone (501) 682-8654 FAX (501) 682-1339
Arkansas Department or Human Services
Division of Youth Services
P.O. Box 1437 JJDP Unit Slot 503
Little Rock, AR 72203-1437
Implementation Report
(Revised 3/98)
From ( name and address of subgrantee)
City of Fayetteville
113 W. Mountain
Fayetteville AR 72701
Subgrant Number Date of Report
NK -2110
Date of Subgrant Acceptance:
03-01-02
Date of Actual Implementation:
Describe efforts taken to implement this project and how youth receiving services through this
subgrant will be tracked and/or identified. (this report must be returned within ninety days
after the acceptance of the subgrant award)
Signature of Project Director
DHS -1350 (3/98)
'The Department of Human Services Is In compliance with Titles VI and VII of the CtvIl Rights Act?
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Arkansas Department of Human Services
Division of Youth Services
SPARKS REPORT - Part 1
Report of Expenditures
Subgrant Award Number. NK -2110
Subgrantee: City of Fayetteville
State Program Designator.
Category
Subgrant Start:03-01-02
Subgrant End: 0830-03
Month Ending:
Report Type: Monthly X Final
I. EXPENDITURES BY BUDGET CATEGORY
Budgeted Total
Expended
Previously
Personnel
Salary
Fringe
Travel
Professional Service
Travel (Services) $ 9,378.00
Equipment $25,220.00
Materials 8 Supplies
Other Operating Exp.
Totals $ 34,599.00
II. STATUS OF SUBGRANT
1. Total Subgrant Award $ 34,599.00
2. Total Disbursements
(Line 9 on Fund Request)
3. Balance Available
Total Total
Expended Expended
This Month To Date
Cash Cash
Match Match
Monthly YTD
4. Total Expended This Month
5. Total Expended To Date
(Line 10 on Fund Request)
6. Unexpended Federal Funds
(2 minus 5)
CERTIFICATION: I certify that this report presents actual receipts and actual expenditures of
funds for the month covered.
Authorized Offiaal
Date
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Arkansas Department of Human Services
Division of Youth Servtces/JJDP Unit, Slot 503
P.O. Box 1437
Little Rock, AR 72203-1437
SUBGRANTEE REQUEST FOR FUNDS
1. Subgrant Period 0301-02 - 0630-03
2. From (name, address )
City of Fayetteville
11 W. Mourdabi
Fayetteville AR 72701
3. Subgrant Number
NK -2110
4. Date of Request
5. Request No.
6. Type of Request
MONTHLY
TOTAL AWARD
OTHER (Specify)
To: Arkansas Deperbnerd of Human Servkxs
Division of Youth Selvices/JJDP Unit, Slot 503
P.O. Bon 1437
Utile Rock, AR 72203-1437 Telephone: (501) 682-9685
7. A reimburaomsd of hurls as Indicated below is hereby requested to cover expenditures for the
period through calculated as follows:
70. Reimbursement of funds Is being requested for the following expenditures
Salary
Fringe
Travel (Staff)
Professional Serv.
Travel (Services)
Materials & Supplies
Other Operating Expense
8. Cash reimbrusement
9. Total reimbursements received from start d sumgmd to data
(Line 2 an Sparks report)
10. Total cash ems nditwes from start of surbgrant to date:
(Une 5 an Sparks Report)
11. Total rash on hard at present (9 rims 10):
(Line 6 co Sparks Report)
12. Cash request (8 mous 11):
13. SubMted by:
Authorized Officials SigrtaLre
PLEASE USE BLUE INIC
DYS USE ONLY
Tale Date
FOR DYS ONLY
14. A reimbursement of funds In the amount of $ b approved.
15. The request for funds is denied for the reasons shown on the attached letter.
16. Reviewed by
Cost Center.
Date
Approp Char Fund AIIoc Act Sec Unit Bern Pm. Code
•
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Name of Subgrantee
City of Fayetteville
113 W. Mountain
Fayetteville AR 72701
Division of Youth Services
SUBGRANT ACTIVITY REPORT
PART III
Subgrant No:
NK -2110
Month Covered
From
to
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Subgrant Period
03-01-02 -06-30-02
1. List any task completed this month to meet the project's measurable objectives.
(1f additional space is needed, add additional pages.)
2. 1f the objectives are not being progressively met, please provide an explanation.
3. List any new or revised tasks which need to be accomplished to meet the subgrant objectives.
4. Describe any other activity which may cause a problem in accomplishing the tasks by the
end of the subgrant period.
Signature of Project Director
Date Signed
1.1
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Arkansas Department of Human Services
Division of Youth Services
SPARKS REPORT - Part 11
Expenditure Description Report
Name and address of subgrantee
COy of Fayetteville
113 W.MourNn
Fayettevie AR 72701
Subgrard Number
NK -2110
Sufgant Period
03-01-02 - 06-30-03
Month Covered
Discription of Expenditures
AmouM(s)
A. personnel
(name, true
gross salary,
benefits,
staff
travel-#
miles
x rate
B. Professional
services (firm, services
provided,
cost)
C.
Travel
D. Equipment (item descnption,
cost sena)
ff, date
of
purchase
E.
Materials and Supplies
(office supplies,
etc.)
F. Other operating
Expenses (telephone, postage, etc.)
Total Expenditures
Signature of Authorized official
DHS -1344 (R. 2/00)
Date
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FOREWORD
1/2
This extensively revised publication is intended to assist Department of Human Services'
providers, as well as their auditors, understand the Department's audit requirements. A summary
of changes and additions is presented at Appendix E.
The most significant change is to the Department's audit threshold, which has increased from
$25,000 to $100,000. Among the additions is a "decision tree" to graphically supplement the text.
And, unique requirements of DHS and some of its Divisions are better explained.
Overall, the publication has been brought into line with the June, 1997 revision of OMB Circular
No. A-133. That revision incorporated some very substantial changes in audit policy and
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procedures, necessitating significant adjustments to DHS requirements. This document attempts
to disseminate all of these in a clear and straightforward manner.
Compliance with the provisions of this Guide is mandatory for all organizations to which the
Department of Human Services provides funding or other resources.
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TABLE OF CONTENTS
I. Effective Date and Supersession
II. Organizations Required to Furnish DHS an Audit Report
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III Type of Audit Required
A OMB Circular A-133 Audit 2
B Government Auditing Standards Audit 2
C Examples 2
D Decision Tree 2
3
IV Definitions
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V. General
A Single Audit Act and OMB Circular A-133 6
B Department of Human Services Audit Threshold 6
C Program -Specific Audits 6
D Cognizant and Oversight Audit Agencies 6
E. Monitoring and Evaluation 6
F. Costs of Audits 7
G Auditor Selection 7
H Sanctions 8
I. Appeal 8
VI Provider and Auditor Responsibilities
A Submission of Audit Reports 9
B Extension of Time for Submission of Audit Report 9
C Auditor Qualifications 9
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VII. Responsibilities of the Department of Human Services
A Reviews of Audit Reports 11
B Auditor Exclusion Rule 11
C Resolution of Findings 12
D Confirmations 12
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VIII. Audit Workpapers
A Workpapers 14
B Retention 14
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IX Audit Reports
A General Guidance•
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B Basic Report Requirements 15
1. A-133 Audits 15
2. GAS Audits 15
C Special Requirements of the Department of Human Services 16
1. ALL Audits 16
2. Funding Agreeents 16
3. Family Dav Care Home Sponsors 17
4. Mental Health Organizations 17
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Appendices:
A Authoritative and Relevant Publications.
B Telephone Numbers 1
C Audit Report on Disk. 2
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D Sample DHS Schedules 2
E. Significant Changes 2
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I. EFFECTIVE DATE AND SUPERSESSION
This document is effective for audit periods ending December 31, 1998 and thereafter. It
supersedes the "Department of Human Services Audit Guidelines Funded by the Arkansas
Department of Human Services" dated January 10, 1992.
II. ORANIZATIONS REQUIRED TO FURNISH DHS AN AUDIT
REPORT
A. Every nonprofit organization and every local government (or component thereof) receiving
directly from DHS $100,000 or more in that entity's fiscal year will furnish DHS with an audit
report for that fiscal year. (Note: The value of commodities, if any, is to be included in
determining total funding. Also, the State portion of Medicaid funding is to be used in
determining total State funding.)
B. Every organization of any type whose funding agreement with DHS contains a requirement for
an audit will furnish DHS with an audit report for that entity's fiscal year(s) during any part of
which such agreement was effective. This is without regard to funding level. It is the
responsibility of the DHS funding divisions to notify the DHS Audit Section of such contract
requirements.
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TYPE OF AUDIT REQUIRED
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A. OMB Circular A-133
An audit must be performed in accordance with Circular A-133 if federal expenditures are
$300,000 or more.
B. Government Auditing Standards
A Government Auditing Standards (GAS) audit must be performed if DHS funding provided is
$100,000 or more of federal, state, or federal and state combined.
Note: In most instances, Medicaid is not considered federal financial assistance and, therefore, should not be
used to determine total federal funding. However, as stated previously, the State portion (currently 27%) of
Medicaid is to be used in determining total State funding.
C. Examples
Each of the following examples, unless stated otherwise, assumes that at least $100,000 of the
funding was provided by DHS. State dollars are received amounts; federal dollars are
en
expded amounts.
Funding
Federal (only) $300,000 or more
Federal (direct) $300,000 or more; State $100,000 or more
Federal $300,000; AR Department of Health $80,000
Federal $200,000; State $200,000
Federal $73,000; State $27,000
Federal $0; State $100,000
Federal $0; State $425,000
Federal $0; State $350,000; Medicaid $500,000
Federal $50,000; State $25,000; Medicaid $325,000;
(DHS provides only Medicaid)
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Type of Audit
A-133
A-133
A-133
GAS
GAS
GAS
GAS
GAS
Audit not
Required
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D. Decision Tree
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Following is a "decision tree" that provides an alternative method of determining who must
furnish DHS an audit report and what type it must be. It may be simpler and quicker to use it than
to use the text and examples preceding.
Start
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Did the entity receive
any funding from DHS?
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No
Yes
Was the total amount of
funding from DHS less
than $100,000 ?
Yes
DHS does NOT
require an audit.
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No
Does the agreement
with DHS contain an
audit requirement?
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Yes
Were expenditures of federal monies,
from whatever source received, equal to
or more than $300,000 ?
No
GAS
Audit
Yes
No
A-133
Audit
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IV. DEFINITIONS
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For purposes of these Guidelines, the following definitions and those in OMB Circular A-133
apply.
A. Abuse means furnishing excessive services to beneficiaries; violating program regulations; or
performing improper practices, none of which involves prosecutable fraud:
B. Agreement means the formal written arrangement an entity has with DHS in order to receive
funding, regardless of its actual title or the form it takes.
C. Compliance Audit means an audit which determines whether the auditee is complying with the.
provisions of' laws, regulations, and contractual, grant, loan, and other assistance agreements.
D. Fee-for-service means a contract or agreement where the provider and the funding agency
agree that the provider will be paid a predetermined amount for each unit of service performed.
There may be a limitation to the total amount that will paid.
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E Fraud -means the obtaining of something of value, unlawfully, through willful
misrepresentation.
F. Illegal Acts means violations of laws.
G. Provider means an entity with an agreement with DHS to operate a program in furtherance of
DHS and/or federal goals or objectives.
H. Related Party has the same meaning as in AICPA Professional Standards, Vol. 1, and AU Sec.
335.02.
I. Related Party Transaction means a transfer of resources or obligations between related
parties, regardless of whether a price is charged.
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J. Single Audit means a
organization. It must
financial and compliance audit of the entire operations of the
encompass the operation as a whole and include all activities of the
auditee regardless of whether funded through federal, state, other funding or a combination
thereof.
r
Entire operations includes related organizations over which the organization exercises
control by way of a) a majority of common board members and/or, b) financial
interdependency, and/or c) a common administrator.
K. State Financial Assistance means assistance provided by a state agency under agreements
funded with state monies.
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L. State Oversight Agency means the state agency carrying out the responsibilities described in
OMB Circular A-133, Subpart D, Subsection 400(b), as they relate to funding furnished
providers by a state agency.
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V: GENERAL
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A. Single Audit Act and OMB Circular A-133
The 1996 Amendment of the Single Audit Act requires annual independent organization -wide
audits of state and local governments and nonprofit organizations meeting certain funding level
and other criteria. OMB Circular A-133, which implements the Single Audit Act as amended, is
effective for fiscal years beginning after June 30, 1996. It contains significant changes and
additions in audit requirements and requires auditors to apply new methods in performing audits,
as set forth in Subpart E, Subsections 520, 525, and 530.
B. Department of Human Services Audit Threshold
With the increase of the A-133 threshold to $300,000 in federal expenditures, DHS now sets its
threshold for single, organization -wide audits at that same level. For audits to be performed in
accordance with Government Auditing Standards the DHS threshold is $100,000. (For more
detailed information, see Section III - Type of Audit Required)
C. Program -Specific Audits
A-133 allows program -specific audits in Subpart B, Subsection 200 (c) when an auditee expends
Federal Awards under only one Federal program and the Federal program's laws, regulations, or
grant agreements do not require a financial statement audit of the auditee. This Department will
accept program -specific audits performed under the above provision.
D. Cognizant and Oversight Audit Agencies
An auditee may have both a federal cognizant agency and a state oversight agency. Federal
cognizant audit agencies are normally assigned on the basis of primary funding agency, but there
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are exceptions. The auditor may wish to determine the federal cognizant agency, if any, prior to
beginning the engagement. DH§ is the state oversight agency for its providers.
E. Monitoring and Evaluation By Program Divisions and Offices
Individual program financial and compliance reviews as well as other program monitoring
procedures will continue to be performed by the respective Divisions and Offices and federal
agencies Additionally, several Divisions and Offices conduct extensive examinations of provider
operations as part of the licensing procedure for the provider. Major emphasis is placed on
compliance matters in these examinations.
The independent auditor may wish to give consideration to these examinations when testing
compliance. The level of reliance, if any, to be placed on the procedures and resulting findings
from monitoring or licensure examinations is solely at the discretion of the independent auditor.
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F. Costs of Audits
Expenditures for audits may be considered a direct cost or an allocated indirect cost, as determined
in accordance with the provisions of applicable OMB cost principles circulars, the Federal
Acquisition Regulation (FAR) (48 CFR parts 30 and 31), or other applicable cost principles or
regulations. No part of the cost of a Single Audit under OMB Circular A-133 may be charged to
any federal program when the entity expended less than S300,000 in federal funding in the audit
year. Thus, providers and auditors must take care to see that the type of audit performed is
appropriate to the level of expenditures for that year. If an auditee does not provide an acceptable
report, no audit costs may be charged to any programs funded through DHS.
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G. 'Auditor Selection
It is the responsibility of the provider to select an auditor and to pay for the audit. However, the
Department of Human Services reserves the right to chose the auditor for any, or all, of its
subrecipients. If the Department elects to exercise that right, the provider(s) will be given
advance notice and audit fees will be paid directly by DHS. These fees, in turn, will be deducted
from the Department's payments to the provider.
H. Sanctions
In case of continued inability or unwillingness on the part of the provider to have an audit
conducted in accordance with established standards, federal and state agencies may take
appropriate action(s), such as.
• withholding some part of award payments until the audit is submitted
• withholding or disallowing overhead costs,
• suspending awards until the audit is submitted, or
• terminating the award or assistance program.
I. Appeal
Any appeal for relief from actions initiated as a result of the provisions of these Guidelines must
be made under the appeal procedures of the funding agreement.
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VI. PROVIDER AND AUDITOR RESPONSIBILITIES
A. Submission of Audit Reports
All reports of audits performed under these Guidelines are to be submitted to the Director of
Audits within 120 days following the end of the auditee's fiscal year. Audits must cover the
organization's fiscal year. However, if unusual circumstances require a reporting period of other
than 12 months, permission to submit such a report must be obtained from the Director of Audits.
The auditee is to submit audit reports directly to: Director of Audits
Department of Human Services
P.O. Box 1437 — Slot 900
Little Rock, AR 72203-1437
The preferred mode of report submission is one signed paper copy plus a 3.5 -inch disk containing
the same material. See Appendix C for specific requirements/restrictions governing disk
submission. The alternative mode of submission is three signed paper copies and no disk.
B. Extension of Time for Submission of Audit Report
An extension of time to submit audit reports under these guidelines may be granted if a delay is
unavoidable. A written request from the Executive Director or the Board of Directors must be
received by the Director of Audits no later than fifteen days before the due date of the audit report
and must explain the circumstances preventing its timely submission. While the auditor is not
permitted to request the extension, a confirming letter from the auditor may accompany the
request.
Providers who are habitually late in submitting audit reports and/or who continually request
additional extensions of time in which to furnish those reports may be subject to sanctions.
C
C
C. Auditor Qualifications [See also Section VII, B, Auditor Exclusion Rule]
Audits shall be performed by independent Certified Public Accountants (CPAs) currently holding
an annual permit to practice from the Arkansas State Board of Public Accountancy (ASBPA).
Partnerships and corporations of CPAs practicing public accounting must comply with the ASBPA
with respect to those members, stockholders, and employees required to be CPAs and to hold a
permit to practice. Auditors are required to maintain professional proficiency through continuing
professional education (CPE). Auditors performing audits in accordance with OMB Circular A-
133 and GAS must meet the requirements for CPE stated in Chapter 3 of Government Auditing
Standards.
The CPE requirements for an auditor of entities operating government programs, in numbers of
hours and reporting periods, are: Eighty hours every two years, of which no less than 20 should be
completed in any 1 year of -the 2 -year period. At least 24 hours of the 80 hours/2-year requirement
should be in subjects directly related to the government environment and government auditing.
Auditors of nonprofit organizationsactivities and funding should receive training related to that
environment, and any other specific or unique activities audited.
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VII. RESPONSIBILITIES OF THE DEPARTMENT OF HUMAN
SERVICES
A. Reviews of Audit Reports
The organization's audit report will be reviewed to determine whether:
• requirements of applicable authorities and those contained in these Guidelines were met;
• material weaknesses in internal control exist;
• material noncompliance with provisions of grants, contracts, and agreements occurred; and
• the report included findings, recommendations, and responses thereto by management.
Material weaknesses and noncompliance, other findings, recommendations, and responses will be
recorded and communicated to funding and contract Divisions. A copy of the audit report will be
furnished to DHS Divisions and Offices upon request.
A letter will be issued reporting the results of the review to the auditee. Informational copies will
be furnished to the finding Division(s) and the auditor. One of three types of letters is issued,
depending on the acceptability of the report. If it meets requirements in all material respects, an
acceptance letter is issued. If the report is deficient in some respects, but can still be accepted, an
"accepted with qualifications" letter is issued, describing the deficiencies found, and stating that
they must be corrected in subsequent reports. If the audit report has one or more serious
deficiencies, it may be necessary to issue a rejection letter, and the auditee and auditor will be
asked to revise the report to bring it into compliance with applicable standards and guidelines
within 30 days. If an auditee does not provide an acceptable report, no. audit costs may be charged
to any programs funded through DHS. An auditor continuing to submit substandard reports will
be referred to the ASBPA for its review of the audit work and appropriate action. Also, the
Department may elect to refuse to accept audit reports from such auditors.
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B'. Auditor Exclusion Rule
The Department will maintain a record of the results of review of all submitted audit reports, by
both individual practitioners and by firms. Significantly substandard work of a material nature
and/or repeated submission of reports indicating substandard work, less than satisfactory results of
a review of the auditor's workpapers, or failure to meet one or more of the qualifications needed to
perform the audit will result in a reassessment of the desirability of continuing to accept reports
prepared by such auditors or audit firms.
If, after such reassessment, the Department concludes that it is not prudent, or in its best interest,
to continue to accept reports prepared by such auditor or audit firm, the DHS Director shall issue a
written decision to exclude, which will state the reasons for the action taken. A copy will be
mailed or otherwise furnished to the excluded auditor or audit firm within five days of its writing.
The decision of the Director will be final and conclusive. The exclusion shall be for a period of
not less than one year.
This Department will maintain a current list of all auditors and audit firms excluded under this
provision. Furthermore, with each change to the list the Department will furnish a copy of such
list to each provider submitting audit reports to us.
C. Resolution of Findings
It is the responsibility of Program Divisions to resolve program audit findings for the funding they
administer. All findings related to general financial management will be referred to the Office of
Fiscal Management (OFM) for resolution. Program Divisions and OAS will take appropriate
action to resolve audit findings within 90 days of the referral of the finding from the Audit Section.
("Referral" is the appearance of the audit report with findings and recommendations in the DHS
12
Quarterly Summary of Subrecioient Audit Reports.) The Audit Section has the responsibility to
t
monitor the resolution process to ensure that a timely resolution occurs. Fhilure on the part of the
auditee to cooperate in the resolution of audit findings may result in sanctions.
D. Confirmations
OMB Circular A-133 levies the requirement on grantees to identify to subrecipients the monies
provided them. Contracts and remittance documents often give that information, but not in a
readily understandable form. DHS Audit therefore offers a confirmation service with a two -fold
purpose:
1) to confirm dollar amounts and
2) identify the money type(s).
A confirmation facilitates the accurate preparation of award schedules and assists in arriving at the
correct decision as to which -type of audit to perform.
Requests should be made on the entity's letterhead and must include all of the following: entity's
full name, federal identifying number, fiscal period being audited, and auditor's name and address.
It is not necessary to provide a detailed listing of payments received. We will mail the
confirmation directly to the auditor. Send requests to: DHS Audit Section
P.O. Box 1437 — Slot 900
Little Rock, AR 72203-1437
Use of any other DHS address will cause undue delay in the process, as will piecemeal requests. A
single, consolidated request to the above address is preferred. Timely requests are encouraged.
And, fax is permissible. Responses to early requests may be intentionally delayed, at our
discretion, in order to enhance the probability of capturing all payments related to the audit period.
13
I •
VIII. AUDIT WORKPAPERS
A. Workpapers
AICPA, OMB Circular A-133, and GAS require that a record of the auditor's work be retained in
the form of working papers. The two main purposes of workpapers, as stated by AICPA, are to
provide principal support for the audit report and aid in the conduct and supervision of the audit.
Government Auditing Standards additionally require that workpapers must contain sufficient
information to enable an experienced auditor or audit quality reviewei having no previous
connection with the audit to ascertain from them the evidence supporting the auditor's significant
conclusions and judgments.
Workpapers must be made available, upon request, to the Audit Section of the Department of
Human Services. The workpapers may also be subject to examination by other federal and state
personnel reviewing the audited organization's federal and state assistance programs.
B. Retention
Workpapers shall be maintained for a minimum of 3 years from the date of the audit report, unless
the auditor is notified in writing by the grantor agency, cognizant or oversight agency, or DHS
Audit to extend the retention period. Also, workpapers must be kept more than three years if any
appeals related to the period audited are in progress. In such instances, workpapers must be
retained until final resolution is made.
14
IX. AUDIT REPORTS
A. General Guidance
General guidance on audit reporting is provided by AICPA's most recent audit and accounting
guides and statements of position. Example audit reports, schedules, and a specialized glossary are
included in SOP 98-3, Audits of States, Local Governments, and Not -For -Profit Organizations
Receiving Federal Awards. Government Auditing Standards also contains general guidance for
both financial and performance audits, and OMB Circular A-133 contains specific guidance for
audits under its provisions. Not authoritative in themselves, but of value, are the publications of
Practitioners Publishing Company (PPC) and Commerce Clearing House (CCH), among others
serving the profession.
B. Basic Report Requirements
1. A-133 Audits
a) an opinion or disclaimer of opinion on the financial statements and Schedule of
Federal Awards,
b) a report on compliance and internal control over financial statements performed in
accordance with Government Auditing Standards,
c) a report on compliance with requirements applicable to each major program and
internal control over compliance in accordance with OMB Circular A-133,
d) a schedule of findings and questioned costs, as stated in Subpart E, Subsection 505
(d), and
e) a summary schedule of prior audit findings, as stated in Subpart C, Subsection 315
(b).
31
2. GAS Audits
a) an opinion or disclaimer of opinion on the financial statements and the Schedule of
Governmental Assistance,
b) a report on the testing of compliance with laws and regulations, grants, contracts, and
agreements, and
c) a report on the testing of internal controls.
The reports on internal control and compliance may be combined following examples provided by
the AICPA.
C.
The DHS requirements listed below are not all-inclusive. Existing and future contracts may
contain additional audit requirements.
1. All Audits.
a) A supplemental data sheet which includes the following information: entity's full
name, address; employer identification number, phone number, name of Director, name
of contact person, and the cost of the audit.
b) Any management letter issued. A management response to such letter, as well as to
any findings and recommendations, is also required to be included with the report.
c) Additional Assistance/Awards Schedules.
1) A-133 Audits. A Schedule of State Assistance is to be included and shall show
the total revenues and expenditures for each program, and the state department
furnishing the funding. (See Appendix D, Sample D-1) Medicaid funding, if
any, is to be included in a footnote on the Schedule of Federal Assistance.
16
LI
2) GAS Audits. A Schedule of Governmental Assistance is to be included and shall,
show revenues and expenditures for each program, federal and state; the Federal
and/or state department furnishing the funding; and CFDA number, if applicable.
Medicaid funding, if any, is to be included in a footnote on the schedule. See
Appendix D. Sample D-2.
2. Funding Agreements.
1) The audit report shall reflect the units of service for each contract or agreement
containing such a requirement. If more than one contract or agreement for the
same program was in place in the provider's fiscal year, each must be accounted
for separately, showing applicable dates of each. See Appendix D, Sample D-3.
2) a comparison of budget -to -actual revenues and expenditures shall be included if
such a schedule is required as a condition of funding.
3. Family Day Care Home Sponsors.
Such audit reports shall include a schedule showing a comparison of the actual expense,
approved budget, and the amount allowable using applicable rates. The lowest of the three is
the amount allowed for administrative expenses. See Appendix D, Sample D-4.
4. Mental Health Organizations.
Such audit reports shall include an auditor's report expressing an opinion on the capability of
the auditee's statistical information system to reliably document and report staff activities,
units of service, and recipients of services data. The auditor's report shall also express an
opinion on the fairness of the presentation of the number of direct clients served, number of
direct client and community and education units of service provided, and the cost per unit of
service.
17
APPENDIX A
I7
The following are publications that provide guidance in performing audits of nonprofit and
governmental entities.
GENERAL ACCOUNTING OFFICE
• Government Auditing Standards -1994 Revision (The Yellow Book)
May be obtained from the Superintendent of Documents, U.S. Government Printing Office,
Washington, D.C. 20401 or at h ://www. ao. ov/s ecial. ubs/oc94009. df
OFFICE OF MANAGEMENT AND BUDGET
• Circular A-21, Cost Principles for Educational Institutions
• Circular A-87, Cost Principles Applicable to Grants and Contracts with State and Local
Governments
• Circular A-102, Grants and Cooperative Agreements With State and Local Governments
• Circular A- 110, Uniform Administrative Requirements for Grants and Agreements With
Institutions ofHigher Education, Hospitals, and Other Non -Profit Organizations
• Uniform Administrative Requirements for Grants and Cooperative Agreements With State
and Local Governments (OMB Common Rule)
• Circular A-122, Cost Principles for Non -Profit Organizations
• Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations
• Catalog ofFederal Domestic Assistance (CFDA)
• OMB A-133 Compliance Supplement
These OMB documents may be obtained from the Superintendent of Documents, U.S.
Government Printing Office, Washington D.C. 20401 or at
Circulars — httn://www K,}vt,house ov/WH/EOP/O B/h circulars/
CFDA — h ://www. sa. ov/fdac
Compliance Supplement — http://www
AMERICAN INSTITUTE
W
OF CERTIFIED PUBLIC ACCOUNTANTS
ci
•
• Audit and Accounting Guide, Not-For.Profit Organizations (most recent edition)
• Statement of Position 98-3, Audits of State, Local Governments, and Nor -For -Profit
Organizations Receiving Federal Awards
These documents maybe obtained from the American Institute of Certified Public Accountants,
Harborside Financial Center, 201 Plaza Three, Jersey City, NJ 07311-3881. The AICPA web site
iS htto://www.ajcpa
GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
• Codification of Governmental Accounting and Financial Reporting Standards (GASB
expects to update this publication annually)
• Statements
• Interpretations
• Technical Bulletins
These include codification of the National Council of Governmental Accounting (NCGA)
statements and interpretations. These documents may be obtained from the Governmental
Accounting Standards Board, High Ridge Park, P.O. Box 3821, Stamford, Connecticut 06905 or
at hd/wg'k, ruteers edu/ ine/raw/GASB/ ,
WESTERN INTERGOVERNMENTAL, AUDIT FORUM -
Guidelines for Preparation of Requests for Audit Proposals. This useful document provides
specific guidance in preparing RFPs for audit services. It may be obtained from the Western
Intergovernmental Audit Forum, 1275 Market Street, Suite 900, San Francisco, California 94103.
ORDER OF RELIANCE ON AUTHORITATIVE LITERATURE
For those entities for which the Arkansas Department of Human Services is the oversight audit
agency, the following is the order of reliance.
• Single Audit Act of 1984 and the 1996 Amendments
• OMB Circular A-133
• Government Auditing Standards (The Yellow Book)
• AICPA Audit and Accounting Guide(s)
• AICPA Statements on Auditing Standards and Statements of Position
These authorities and guides are revised and amended from time to time, and reliance is always
upon the most recent version.
19
APPENDIX B
The Audit Section main number is (501) 682-6231.
The FAX number is (501) 682-8905.
Administration
Has the audit been received ?.............
(501) 682 6234
Has an extension been granted ? ............................................(501) 682-6234
Auditors in provider's area.....................................................(501) 682-6234
Auditors/Reviewers
Audit procedures or requirements..........................................(501) 682-8173
Questions about confirmations received ..............................(501) 682-8172
CFDA numbers and titles ......................................................(501) 682-6272
To discuss audit review letters, call one of the numbers provided in the review letter.
APPENDIX C
0
The preferred mode of report submission is -one signed paper copy and a disk containing the same
material.
The disk must be a 3.5" floppy.
It may be single or double sided and of any standard density.
It must be labeled with the entity name, audit period, and application.
Data must be written to the disk by one of the below listed applications, or in ASCII format.
Wordperfect ?5.O
Microsoft Word > 2.0
Microsoft Excel
≥ 2.1
Microsoft Works
?3.O
Lotus 1-2-3 ?2.2
The disk is not returnable.
21
0
APPENDIX D
Sample Di
Schedule of State Assistance
Any Provider
Schedule of State Assistance
For the Year Ended June 30, 19XX
Program Grantor/
Program Title
AR Department of Human Services
Division of Developmental Disabilities
Services/Work Activity Center
AR Department of Education
Private Agency Special Education
Programs (section 14 AR Act 102
of 1973)/Transition
Rehabilitation Services/
Assessment/Work Adjustment training
Total Dept of Education
Total State
* - This column is optional.
22
Contract State State
Total Program
Number Revenues
Expenditures Expenditures
999999 50,000
49,000
999999 15,000
15,000
N/A 9,000
8,000
24,000 3_000
4.000 72.000
160,000
76,000
210,000
Sample D-2
Schedule of Governmental Assistance
Any Provider
Schedule of Governmental Assistance
For the Year Ended June 30, 19XX
Department/Division
Program
Federal Assistance
US Dept of Health and Human Services
Child Care and Development Fund
US Dept of Agriculture
Child and Adult Care Food Program
Total Federal
State Assistance
AR Department of Human Services/CFS
Foster Care
AR Department of Education
CFDA Fed/State Fed/State Total Program
Number Revenues Expenditures Expenditures
93.596 100,000 95,000
10.558 100,000 100,000
200,000 195,000
9999999 100,000 110,000
9999999 100,000 100,000
Total State 200,000 210,000
Total Governmental Assistance 400.000 405.000
* - This column is optional.
160,000
100, 000
110,000
100,000
23
Sample D-3
Units of Service Schedule
Any Provider
Schedule of Units of Service
For the Year Ended June 30, 19XX
Foster Care Program Child and Adult Care'Food
Program
Foster Care Days Breakfast
July 100 Lunch
August 100 150 100
September 100 140 100
150
October 80
110 130 90
November
December 100 150 90
January 90 160 80
February 110 150 80
150
March 90 90
April 100 130 80
May 120 90
110
June 100 150 100
150 100
Total 1200 -
ZLQ3 1080
MI
Sample D-4
Family Day Care Home Sponsors
Schedule of Administrative Expenses
Family Day Care Home Sponsor Provider
Schedule of Administrative Expenses
(Actual to Budget)
For the Year Ended September 30, 19XX
Actual Approved Over (Under)
Budget Budget
Audit, Accounting and Legal 2,960
Bank Charges 1,082 1,87
44 - 4 Contract Labor
Insurance 333 - 33
Office Supplies and Equipment 406 (40E
Payroll Taxes 200 1,082 (882 Postage 1,747 2,312 (56:
Printing 574 812 (23E
Rent and Utilities 1,643 2,165 (522
Salaries 1'475 1,894 (419
Supplies 20,848 30,160 (9,312
Telephone 1,965 2,165 (200
Training 2,637 2,706 (69
835
Travel 1,083 (248
Miscellaneous 9,849 8,118 1,731
18 135 (117'
Total Administrative 45,128
Less Audit Payment Reimbursed 54,120 (g 992)
0�) (2,200)
Total Net of Audit 42,928
54,120 (11,192)
Number Applicable Administrative
of Homes Rate Expense
October, 19XX-June, 19XX 447 $ 69
8 $ 30,843
53 424
July, 19XX - September, 19XX 146
71 10,366
3 54 162
Administrative Allowance at Applicable Rates
41,795
Administrative Expenses Allowed:
Least of Actual, Approved Budget, or
Allowance at Applicable Rate
41.795
APPENDIX E
w
Changes from January, 1992 Guidelines —
• Increased threshold for Single audits performed in accordance with OMB Circular
A-133 to $300,000 (Section HI.A)
• Set threshold for Government Auditing Standards audits at $100,000 (Section III.B)
• Added notation that Medicaid is not considered Federal Financial Assistance, but the
State portion is considered State Assistance, and deleted reference to Act 1147
(Section III)
• Removed restriction on program specific audits (Section V.C)
• Added information on auditor selection (Section V.G)
• Added request for electronic submission of audit reports (Section VI.A)
• Added sanctions for late submission of audit reports (Section VI.B)
• Added auditor exclusion rule (Section VII.B)
• Added specific information on the reports required for each type of audit (Section
• Updated authoritative publications and added web sites (Appendix A)
• Added phone numbers of DHS Audit Section staff who can be contacted to obtain
technical assistance and the status of audit reports (Appendix B)
• Added examples of DHS required schedules (Appendix D
FAYETTEVILLE
THE CITY OF FAYETEVIUE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
TO: Mayor Dan Coody and Members of the City Council
FROM: Rick Hoyt, Interim Chief of Police PQj-
DATE: April 18, 2002
SUBJECT: Acceptance of the Juvenile Accountability Incentive Block Grant
Attached is the 2002 grant award for the Juvenile Accountability Incentive Block
grant. This grant will allow the Fayetteville Police Department to perform the following
services:
1. Develop and implement a comprehensive Truancy Prevention Program
2. Develop and implement a police department and community Response
Plan for Missing, Exploited, or Abducted Children.
3. Develop and implement strategic and tactical planning and public
education and awareness on Preventing Juvenile DUI.
4. Develop and implement police departments operational plan to assess,
investigate, document, tract, and Prevent Juvenile Gangs and activity
associated with juvenile crimes.
The budget for these projects is $38, 227.00. The grant provides $34,400.00 with
the City providing a 10% match of $3,827.00. Please feel free to give me a call if you
have any questions.
STAFF REVIEW FORM
X AGENDA REQUEST'
CONTRACT REVIEW
X GRANT REVIEW
For the Fayetteville City Council meeting of May 7, 2002
FROM:
Rick Hoyt
Name
ACTION REQUIRED: City
Accountability Incentive
34,440.00 plus a ten perce
The proposed use of these
$38,267.00
Cost of this
Account Number
Project Number
Police Police
Division Department
Council authorize Mayor Coody to accept the 2001 Juvenile
Block Grant Program. This grant is in the amount of $
nt match requirement of $3,827.00 for a total of $38,267.00.
grant funds is for software and equipment.
$4,830,093.00
Category/Project Budget
1,480,061.00
Funds Used To Date
3,350,032.00
Remaining Balance
Administrative Services Director
Le1!AMY 74lef:le}]}�lyi+
Patrol and Warrant
Category/Project Name
Patrol & Warrant
Program Name
General
,Fl
ustment Attached
t In ernal A for Date
4'ai
D to ADA Coordinator Date
4I I9 iv'-
Date Grants Coordinator Date
STAFF RECOMMENDATION:
Council authorizes Mayor Coody to accept the Juvenile Accountability incentive Block
Grant.
Date Cross Reference
New Item: Yes No
t
Prey Ord/Res if:
Orig Contract Date:
Page 1
0
STAFF REVIEW FORM
Description Juvenile Accountabiltiy Incentive Block Grant Meeting Date May 7, 2002
Comments:
Budget Manager
Accounting Manager
City Attorney
Purchasing Manager
Internal Auditor
ADA Coordinator
Grants Coordinator
Reference Comments:
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Rick Hoyt, Police Department
From: Heather Woodruff, City Clerk
Date: May 8, 2002
Please find attached a copy of Resolution No. 72-02 accepting the 2002 Juvenile Accountability
Incentive Block Grant Program. I am returning the original grant application to you. The
original will be microfilmed and filed with the City Clerk
cc: Nancy Smith, Internal Auditor
010 03 City * f Fayetteville 5/23/2002
Update ndex Maintenance • 8:53:22
Document item Action
Reference Date Ref. Taken Brief Description
RES 5072002 72-02 JUVENILE ACCOUNTABILITY BLOCK GRANT
Enter Keywords........: RES. 72-02
FAYETTEVILLE POLICE DEPARTMENT
JUVENILE
ACCOUNTABILITY INVCENTIVE
BLOCK GRANT
$34,440.00
FUND
EQUIPMENT
SOFTWARE
TRUANCY PREVENTION PROGRAM
File Reference #......: MICROFILM
Security Class........:
Expiration Date.......:
Date for Cont/Referred:
Name Referred to......:
Retention Type: _
**** Active ****
cmdl-Return
Cmd8-Retention
Cmd4-Delete Cmd3-End
Press 'ENTER' to Continue
Cmd5-Abstract
Yes No
(c) 1986-1992
Munimetrix systems Corp.