416-250-0010 Definitions (1) Audit: The examination of documents, records, reports, systems of internal control, accounting and financial procedures, and other evidence for one or more of the following purposes: (a) To ascertain whether the financial statements present fairly the financial position and the results of financial operations of the fund types and/or account groups in accordance with Generally Accepted Accounting Principles and federal and state rules and regulations; (b) To determine compliance with applicable laws, rules, regulations and contract provisions; (c) To review the efficiency and economy with which operations are carried out; and (d) To review effectiveness in achieving program results. (2) Capital construction: An expenditure related to construction or remodeling of physical facilities with a projected cost of $1,000,000 or more. (3) Capital improvement: An expenditure related to construction or remodeling of physical facilities with a projected cost of more than $5,000 but less than $1,000,000. (4) Capital outlay: Purchases of equipment and tangible personal property of a non-expendable nature which have a useful life of more than one year. The minimum dollar threshold for determining if a purchase is capital outlay cannot exceed the amount set for state purchases of capital outlay. The current threshold for the State of Oregon is $5,000, however, a lesser amount may be used. (5) Direct contractor: A person or organization which operates under a direct contract with OYA to provide services to youth in OYA’s custody. (6) Internal auditor: Auditors within OYA. (7) Internal control structure: The plan of organization including all of the methods and measures adopted within a business to safeguard its assets, check the accuracy and reliability of its accounting data, and promote operational efficiency and adherence to management's policies. (8) Non-allowable expenditures: Expenditures made by a contractor or subcontractor of OYA which are not consistent with relevant federal and state laws, rules, regulations or contract provisions. To be allowable, expenditures must be necessary and reasonable for the proper and efficient performance of the contracted services. If only state funds are involved, expenditures will be evaluated based on state laws and rules, the contract provisions, and whether they are necessary and reasonable for the proper and efficient performance of the contracted services. When federal funds are involved, determination of allowable expenditures includes, but is not limited to, those rules and regulations itemized and referred to in applicable Office of Management and Budget circulars. (9) OYA: Oregon Youth Authority. (10) Reasonable cost: A cost that in nature or amount does not exceed that which would be incurred by a prudent person under the circumstance prevailing at the time the decision was made to incur the cost. Consideration will be given to whether the cost is of a type generally recognized as ordinary and necessary for the operation of the organization; what restraints or requirements exist such as those imposed by factors of generally accepted sound business practices, federal and state laws and regulations, and terms and conditions of the contract; whether the individuals concerned acted with prudence in the circumstances, considering their responsibilities to the organization, their employer, their clients, the public and the governments; and whether significant deviations from the organization's established practices unjustifiably increase costs. (11) Service provider: A public or private community agency or organization contracted by OYA that provides recognized OYA service(s) either directly or through subcontractors or vendors, and is approved by OYA or other appropriate agency to provide these service(s). For the purpose of this rule, "provider" or "program" is synonymous with "service provider." Statutory/Other Authority: ORS 420A.025 Statutes/Other Implemented: ORS 420A.010 History: OYA 13-2022, amend filed 12/13/2022, effective 12/14/2022 OYA 5-2020, amend filed 04/06/2020, effective 04/06/2020 OYA 1-2005, f. & cert. ef. 1-11-05 OYA 4-2001, f. & cert. ef. 4-20-01