Accounting Systems

Accounting Systems A. Agency providers must develop a cost accounting system that defines and determines the cost of single units of service. B. The agency provider must develop an accounting system to document grant match and funds of people receiving services that: 1. Consists of a general ledger, cash disbursements journal, payroll journal, cash receipts journal, or other journals serving the same purpose, which are posted at least monthly. 2. Includes proper internal controls to prevent fraud, waste, and abuse, including proper segregation of accounting duties (receipt, purchasing, recording, and reporting functions) and the requirement that all checks have two (2) authorizing signatures. 3. Ensures that adequate documentation is maintained to support all transactions, including justification to support all types of cost allocation methods utilized, invoices, cancelled checks, etc., as well as time and attendance records to support personnel costs and approved travel vouchers and receipts to support travel. 4. Ensures that written contracts signed by both authorized agency provider personnel and the contractor are secured for all contractual services charged to DMH grants (other than utilities) that specifies the dates that the contract is valid as well as the services and/or duties for which the agency provider is purchasing. 5. Ensures that federal funds are expended in accordance with the applicable federal cost principles and that all funds are expended in accordance with guidelines outlined in the DMH Service Providers Manual, which is located on the DMH website. 6. Ensures that all accounting and financial personnel adhere to the ethical standards of their profession and provides for appropriate training of accounting and financial personnel to prevent misuse of services and funds of people receiving services.