Arkansas Administrative Code › Agency 016 - DEPARTMENT OF HUMAN SERVICES › Division 14 - Department of Finance (Administrative Services) › Rule 016.14.05-005 - Financial Guidelines for Purchased Services

Current through Register Vol. 49, No. 6, June, 2024
CHAPTER ONE
INTRODUCTION
1000
INTRODUCTION TO THE FINANCIAL
			 GUIDELINES FOR PURCHASED SERVICES
1100
Purpose
The Financial Guidelines for Purchased Services (Financial
				Guidelines) provides the rules and regulations governing financial control of
				purchase of services funds administered by the Department of Human Services
				(DHS), Office of Finance and Administration (OFA). The provisions of Chapters
				1000 through 7000 are applicable to all funding sources unless exceptions or
				additions appear in regulations governing specific funding sources.
1200
Legal Basis
The following state and federal laws
,
regulations
, and policy
govern the operation of the
				purchase of services program.
1210
Federal Laws
A.
Omnibus Budget Reconciliation Act
			 of 1981 (Section 2352)
B.
The Civil Rights Act of 1964:
prohibits discrimination on the
			 basis of race, color, or national origin in all federally funded
			 programs
C.
Section 504 of
			 the Rehabilitation Act of 1973:
prohibits discrimination on the basis of
			 handicap in federally funded programs
D.
Age Discrimination Act of 1975:
prohibits discrimination on the basis of age in federally funded
			 programs
E.
Anti-Lobbying
			 Act (
			 P.L.
			 101-121 Section 319):
prohibits recipients
			 of federal contracts, grants, and loans from using appropriated funds for
			 lobbying the Executive or Legislative Branches of the federal government in
			 connection with a specific contract, grant or loan
F.
Americans With Disabilities Act of
			 1990 (
			 P.L.
			 101-336 ):
prohibits discrimination on the
			 basis of disability and provides equal opportunities in employment, state and
			 local governmental entities, public accommodations, transportation, and
			 telecommunications for persons with disabilities
G.
Cash Management Improvement Act of
			 1990 (
			 P.L.
			 101-453 ):
requires the timely transfer of
			 funds between a federal agency and a state to encourage development of
			 efficient cash management systems
H.
Debarment and Suspension (Executive
			 Order 12549):
prohibits doing business with persons suspended or barred
			 from doing business with any agency of the Executive Branch
I.
Drug-Free Workplace Act of 1988
			 (P.O. 100-690, Title V. Subtitle D):
requires contractors and grantees
			 of federal agencies to certify that they will provide drug-free workplaces
1220
Federal
			 Regulations
The major federal regulations governing the operation of the
				programs are:
A.
2 CFR Part
			 215:
regulates implementation of uniform administrative requirements for
			 awards and agreements with institutions of higher education, hospitals, and
			 other nonprofit organizations
B.
28 CFR Part 35:
regulates implementation of Subtitle A of Title
			 II of the Americans with Disabilities Act of 1990
C.
45 CFR Part 74:
regulates
			 implementation of uniform administrative requirements for awards and subawards
			 to institutions of higher education, hospitals, other nonprofit organizations,
			 and commercial organizations
D.
45 CFR Part 76:
regulates implementation of Executive Order
			 12549, providing for certification that contractors have not been declared
			 ineligible for participation in public transactions by a federal department or
			 agency
E.
45 CFR Part 76,
			 Subpart F:
regulates implementation of Drug-Free Workplace Act of
			 1988
F.
45 CFR Part 80:
regulates implementation of Civil Rights Act of 1964
G.
45 CFR Part 84:
regulates
			 implementation of nondiscrimination against the handicapped (Section 504 of the
			 Rehabilitation Act of 1973, as amended)
H.
45 CFR Part 90:
regulates
			 implementation of Age Discrimination Act of 1975
I.
45 CFR Part 92:
regulates
			 implementation of uniform administrative requirements for grants and
			 cooperative agreements to state, local, and tribal governments.
J.
Section 1352 of Title 31 U.S.C.:
regulates implementation of Anti-Lobbying Act. Contractors receiving
			 more than $100,000 per award of federally appropriated funds per fiscal year
			 must certify that they will not use these funds to pay for lobbying activities.
			 They must also disclose each instance of lobbying that does occur.
K.
OMB Circular A-21, "Cost Principles
			 for Educational Institutions"
L.
OMB Circular A-87, "Cost Principles
			 for State, Local and Indian Tribal Governments"
M.
OMB Circular A-102, "Grants and
			 Cooperative Agreements with State and Local Governments"
N.
OMB Circular A-110, "Uniform
			 Administrative Requirements for Grants and Other Agreements with Institutions
			 of Higher Education, Hospitals and Other Non-Profit
			 Organizations"
O.
OMB
			 Circular A-122, "Cost Principles for Non-Profit Organizations"
P.
OMB Circular A-133, "Audits of
			 States, Local Governments and Non-Profit Organizations"
Q.
Government Auditing Standards -
			 2003 Revision (Yellow Book)
R.
Uniform Administrative Requirements
			 for Grants and Cooperative Agreements to State and Local Governments, Common
			 Rule.
NOTE:
CFR regulations may be found at the following
				website:
www.gpoaccess.gov/cfr/index.html
.
Federal regulations and OMB circulars may be found at the
				following website:
www.whitehouse.gov/omb/circulars
.
1230
State Laws and
			 Regulations
The State of Arkansas regulates the operation of DHS through
				the enactment of legislation pertaining to the funding of DHS and through
				legislation concerning the practices of all state agencies in areas of
				personnel, accounting, and prescribed procedures for issuing rules and
				regulations.
A.
Act 876 of
			 1973, "The General Accounting and Budgetary Procedures Law of
			 Arkansas"
B.
State of
			 Arkansas, Department of Finance and Administration, Office of Accounting,
Financial Management Guide
C.
Rules and Regulations Implementing
			 Governor's Executive Order 98-04:
regulates disclosure for contracts,
			 grants, leases, purchase agreements, and employment
D.
Act 1032 of 1999:
requires
			 Legislative Council Joint Budget Committee review of discretionary, non-exempt
			 grants in excess of $10,000
E.
Act 34 of 1999:
regulates state employment of constitutional
			 officers and their spouses; establishes procedures regarding their entering
			 into grants, contracts, or leases with the state
1240
DHS Administrative Policies and
			 Publications
A.
DHS Policy
			 Manual
B.
DHS
			 Administrative Procedures Manual
C.
DHS Audit
			 Guidelines
D.
DHS
			 Contract Manual
E.
Social Services Block Grant Program Manual
1300
Interpretation of
			 Issuances
A. OFA Contract Support
			 Section (CSS) is responsible for issuing and interpreting rules, regulations,
			 and procedures governed by this manual. Any questions on financial guidelines
			 that cannot be resolved by this manual shall be referred to CSS for
			 interpretation and explanation and, if necessary, for development and
			 incorporation in revised issuances of the Financial Guidelines.
Contractors should refer questions to their assigned
Administrative Compliance Officer
(ACO)
within CSS and division or office staff should
				refer questions to their assigned liaison within CSS. Any unanswered questions
				will be referred to the CSS Assistant Director. Any question touching on legal
				issues will be referred by CSS to the Office of Chief Counsel (OCC). Except in
				an emergency, all such inquiries must be submitted to CSS in writing. The reply
				will be made in writing or, if an oral response is given, it will be confirmed
				in writing
B. within ten
			 working days.