Iowa Admin. Code r. 441-25.13 - Regional finances
(1)
Regional service payments. The department will distribute
funds from the mental health and disability services regional service fund to
regions in accordance with Iowa Code section
225C.7A. Funds will be
distributed in July, October, January, and April.
(2)
Funding. Funding for
non-Medicaid mental health and disability services and children's behavioral
health services is under the control of the governing board and shall:
a. Be maintained to limit administrative
burden and provide public transparency regarding financial processes.
b. Be maintained in a combined
account.
c. Be used to fund
services in accordance with the regional service system management plan and the
performance-based contract.
d. Be
maintained in a county mental health and disability services fund for the
deposit of regional service payments for those counties exempted under Iowa
Code section 225C.56. Expenditures to be made
from the county mental health and disability services fund will not be made
from any other fund of the county. The exempted county mental health and
disability services fund is considered to be the same as a region combined
account and is subject to the same requirements as a region combined
account.
(3)
Accounting system and financial reporting. The accounting
system and financial reporting to the department shall conform to Iowa Code
section 225C.58 and include all
non-Medicaid mental health and disability expenditures. Information shall be
separated and identified in a uniform chart of accounts, including but not
limited to the following: expenses for administration; purchase of services;
and enterprise costs for which the region is a service provider or is directly
billing and collecting payments.
(4)
Ending fund balance .
Each region shall certify to the department of human services on or before
December 1 the region 's cash flow amount in the combined account at the
conclusion of the most recently completed fiscal year.
a. A region must submit the ending fund
balance on forms specified by the department .
b. The certified ending fund balance shall
exclude encumbered amounts for which resources already have been committed and
been approved by the department in accordance with subrule 25.13(7).
c. A certified submission must:
(1) Be approved by the region 's governing
board prior to submittal to the department .
(2) Be signed by the chairperson of the
regional governing board and the regional chief executive officer .
(5)
Ending
balance limitations.
a. A region 's
certified ending fund balance as determined in subrule 25.13(4) will not exceed
a percentage of the region 's actual expenditures for the preceding fiscal year.
The ending balance limitations are as follows:
(1) For the fiscal year beginning July 1,
2021, the ending balance shall be no more than 40 percent of the actual
expenditures of that year.
(2) For
the fiscal year beginning July 1, 2022, the ending balance shall be no more
than 20 percent of the actual expenditures of that year.
(3) For the fiscal year beginning July 1,
2023, and each succeeding fiscal year thereafter, the ending balance shall be
no more than 5 percent of the actual expenditures of that year.
b. If a region has an ending fund
balance more than the limitation, the department will reduce the current fiscal
year's remaining quarterly regional service payments equal to the excess ending
fund balance amount.
c. If
withholding a region 's remaining quarterly payments does not sufficiently
effectuate the required reduction, the region shall pay to the department any
additional excess ending fund balance amount.
d. The amount of reductions to regional
service payments and amounts paid to the department under paragraph
25.13(5)"c" shall be transferred and credited to the regional
incentive fund.
(6)
Acceptable encumbrances . A region shall report to the
department moneys for which a commitment is imposed and binding.
a. Financial obligations entered into by the
region may be considered an acceptable encumbrance under the following
circumstances:
(1) Existence of evidence as
demonstrated by a contract or purchase order that details the services to be
delivered and cost to the region .
(2) Entry of the region into executed
contracts or binding commitments shall occur through formal action of the
region 's governing board.
b. Acceptable encumbrances shall be entered
into and fulfilled according to the time frames outlined below:
(1) For the fiscal year beginning July 1,
2021, funds shall be obligated by the end of the fiscal year. Services shall be
fully executed and moneys expended by June 30, 2023.
(2) For the fiscal year beginning July 1,
2022, funds shall be obligated by the end of the fiscal year. Services shall be
fully executed and moneys expended by December 31, 2023.
(3) For the fiscal year beginning July 1,
2023, and each succeeding fiscal year thereafter, funds shall be obligated by
the end of the current fiscal year. Services shall be fully executed and moneys
expended by August 31 of the subsequent fiscal year.
c. Up to 10 percent of the direct and
purchased administration expenditure total identified in the region 's current
approved annual service and budget plan may be claimed as an
encumbrance.
d. Requests to
encumber funds toward multiyear projects with the purpose to provide access to
required core services shall be limited to actual needs for the current fiscal
year.
(7)
Encumbrance reporting and approval.
a. The region shall submit a detailed
accounting of encumbered funds to the department on or before July 31 on forms
specified by the department .
(1) The
department may request additional information to determine whether the region 's
reported contracts and binding commitments qualify as acceptable
encumbrances .
(2) A plan for
expenditure, including a description of activities related to required core
services, shall accompany documentation for multiyear projects.
b. By August 31, the department
shall notify the region , in writing, of the decision and the accepted amount to
be considered encumbered . The decision of the department is final.
c. Regional commitments that are denied as
acceptable encumbrances shall be included in the calculation of the ending fund
balance for the previous fiscal year.
d. Encumbrances that are not fulfilled within
the time frames specified in subrule 25.13(6) shall be included in the ending
fund balance amount.
Notes
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