Arkansas Administrative Code › Agency 016 - DEPARTMENT OF HUMAN SERVICES › Division 14 - Department of Finance (Administrative Services) › Rule 016.14.14-004 - Financial Guidelines For Purchased Services (2014)

Current through Register Vol. 49, No. 6, June, 2024
I. Chapter One: Introduction to the Financial
			 Guidelines for Purchased Services
(a) Purpose:
The Financial Guidelines for Purchased Services (hereinafter
				referred to as Financial Guidelines) provides the rules and regulations
				governing financial control of purchase of services funds administered by the
				Arkansas Department of Human Services, Office of Finance and Administration.
				The Financial Guidelines are applicable to all funding sources unless
				exceptions or additions appear in regulations governing specific funding
				sources.
(b) Legal Basis:
The following state and federal laws, regulations, and policy
				govern the operation of the purchase of services program.
(1) Applicable Federal Laws
(A) Omnibus Budget Reconciliation Act of
			 1981;
(B) The Civil Rights Act of
			 1964 ( 42 U.S.C §§
												2000d-
			 2000d-7 ): 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 (
			 29 U.S.C. §
												794 ): prohibits discrimination on the basis
			 of handicap in federally funded programs;
(D) Age Discrimination Act of 1975 (
			 42 U.S.C. §
												6102 ): prohibits discrimination on the basis
			 of age in federally funded programs;
(E) Anti-Lobbying Act (U.S.C. §1352):
			 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 ( 42 U.S.C. §
												12101 et seq.):
			 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 (U.S.C. § 3335):
requires the timely transfer of funds between a federal agency
				and a state to encourage development of efficient cash management
				systems;
(H) Drug-Free
			 Workplace Act of 1988 ( 41
			 U.S.C. §
												8101 et seq.);
requires contractors and grantees of federal agencies to
				certify that they will provide drug-free workplaces; and
(I) Pro-Children Act of 1994 (
			 20 U.S.C. §
												6083 ): prohibits smoking in certain
			 facilities in which education, library, day care, health care, and early
			 childhood development (including Women, Infant, and Children's and Head Start)
			 services are provided to children.
(2) Applicable Federal Regulations
The major federal regulations governing the operation of the
				programs are:
(A) 78 FR 78590-01:
			 regulates implementation of uniform administrative requirements for awards and
			 agreements with institutions of higher education, hospitals, and other
			 non-profit organizations;
(B) 2
			 C.F.R. Part 376: Non-Procurement Debarment and Suspension: regulates
			 implementation of the common rule; restricts sub-awards and contracts with
			 certain parties that are debarred and suspended or otherwise excluded from
			 participation in Federal assistance programs;
(C) 28 C.F.R. Part 35: regulates
			 implementation of Subtitle A of Title II of the Americans with Disabilities Act
			 of 1990;
(D) 31 C.F.R. Part 205:
			 regulates implementation of the Cash Management Improvement Act to provide
			 effectiveness and equity in the exchange of funds between the states and the
			 federal government for federal assistance programs;
(E) 45 C.F.R. Part 74: regulates
			 implementation of uniform administrative requirements for awards and sub-awards
			 to institutions of higher education, hospitals, other nonprofit organizations,
			 and commercial organizations;
(F)
			 45 C.F.R. Part 80: effectuates the provisions of title VI of the Civil Rights
			 Act of 1964;
(G) 45 C.F.R. Part 84:
			 "effectuates section 504 of the Rehabilitation Act of 1973, which is designed
			 to eliminate discrimination on the basis of handicap in any program or activity
			 receiving Federal financial assistance;";
(H) 45 C.F.R. Part 86: "is designed to
			 eliminate (with certain exceptions) discrimination on the basis of sex in any
			 education program or activity receiving Federal financial
			 assistance;"
(I) 45 C.F.R. Part 87:
			 establishes equal treatment for faith-based organizations;
(J) 45 C.F.R. Part 90: regulates
			 implementation of the Age Discrimination Act of 1975;
(K) 45 C.F.R. Part 91: regulates
			 implementation of nondiscrimination on the basis of age in Health and Human
			 Services programs or activities receiving federal financial
			 assistance;
(L) 45 C.F.R. Part 92:
			 regulates implementation of uniform administrative requirements for grants and
			 cooperative agreements to state, local, and tribal governments;
(M) 45 C.F.R. Part 93: regulates
			 implementation of new restrictions on lobbying so that federal grant funds may
			 not be used by grantee or sub-grantee to support lobbying or influence
			 legislation;
(N) 48 C.F.R. Part 31:
			 Contract Cost Principles and Procedures:
addresses the cost principles to which organizations, vendors,
				and subcontractors are subject;
(O) 2 C.F.R. Part 220 "Cost Principles for
			 Educational Institutions";
(P) 2
			 C.F.R. Part 225, "Cost Principles for State, Local, and Indian Tribal
			 Governments";
(Q) OMB, Circular
			 A-102, "Grants and Cooperative Agreements with State and Local Governments";
(R) 2 C.F.R. Part 215 "Uniform
			 Administrative Requirements for Grants and Other Agreements with Institutions
			 of Higher Education, Hospitals and Other Non-Profit Organizations";
(S) 2 C.F.R. Part 230, "Cost Principles for
			 Non-Profit Organizations";
(T) OMB,
			 Circular A-133, "Audits of States, Local Governments and Non-Profit
			 Organizations";
(U) GAO,
			 GAO-12-331G, Government Auditing Standards -Reissued 2012,
http://www.gao.gov/products/GAO-12-331G
(V) 41 C.F.R. Part 105-71: "Uniform
			 Administrative Requirements for Grants and Cooperative Agreements to State and
			 Local Governments";
(W) Debarment
			 and Suspension (2 C.F.R. Part 180): prohibits doing business with persons
			 suspended or barred from doing business with any agency of the Executive
			 Branch;
(X) Note: C.F.R.
			 regulations may be found at:
www.gpoaccess.gov/cfr/index.html
Federal regulations and OMB circulars may be found at:
www.whitehouse.gov/omb/circulars.
(3) Applicable State
			 Laws and Regulations
The State of Arkansas regulates the operation of all state
				agencies through the enactment of legislation pertaining to their funding and
				practices.
(A) Arkansas Code Title 19,
			 Chapter 4: details the "State Accounting and Budgetary Procedures" for the
			 State of Arkansas";
(B) State of
			 Arkansas, Department of Finance and Administration, Office of Accounting,
			 Financial Management Guide: provides regulations for the "General Accounting
			 and Budgetary Procedures Law of Arkansas" which can be found at:
http://www.dfa.arkansas.gov/offices/accounting/financialManageme
				nt Guide/Pages/default.aspx
(C) Arkansas Department of Finance and
			 Administration, Office of State Procurement, Rule 006.27, Implementing
			 Governor's Executive Order 98-04: regulates disclosure for contracts,
			 sub-grants, leases, purchase agreements, and employment;
(D) Arkansas Code §
											21-1-401, et seq.: regulates state
			 employment of constitutional officers and their spouses; establishes procedures
			 regarding their entering into sub-grants, contracts, or leases with the
			 state;
(E) Arkansas Code §
											19-11-105: requires contractors to
			 certify that they do not contract with or employ any illegal
			 immigrants;
(F) Arkansas Code
			 §§
											20-76-212 and
			 20-77-110: regulates rate
			 increases to the Arkansas Department of Human Services contractors;
			 and
(G) State of Arkansas
			 Procurement Law and Rules.
(4) Applicable Arkansas Department of Human
			 Services Administrative Policies and Publications
(A) Arkansas Department of Human Services
			 Policy Manual;
(B) Arkansas
			 Department of Human Services Administrative Procedures Manual;
(C) Arkansas Department of Human Services
			 Audit Guidelines;
(D) Arkansas
			 Department of Human Services Contract Manual; and
(E) Social Services Block Grant Program
			 Manual.
(5)
			 Interpretation of Issuances
(A) Arkansas
			 Department of Human Services, Office of Finance and Administration Contract
			 Support Section is responsible for issuing and interpreting rules, regulations,
			 and procedures governed by this manual. Individuals having questions on
			 financial guidelines that cannot be resolved by this manual shall refer those
			 questions to Office of Finance and Administration Contract Support Section for
			 interpretation and explanation and, if necessary, for development and
			 incorporation into revised issuances of the Financial Guidelines.
(B) Contractors should refer questions in
			 writing to their assigned Grant Analyst within Arkansas Department of Human
			 Services Office of Finance and Administration Contract Support Section.
			 Arkansas Department of Human Services divisions or offices (hereinafter
			 referred to as divisions) should refer questions in writing to their assigned
			 liaison within Office of Finance and Administration Contract Support Section.
			 Grant Analyst or liaison will refer to the Office of Finance and Administration
			 Contract Support Section Assistant Director any questions he or she cannot
			 answer. Grant Analyst or liaison will refer to Arkansas Department of Human
			 Services Office of Policy and Legal Services Chief Counsel any question
			 regarding legal issues. Office of Finance and Administration Contract Support
			 Section will reply to the inquirer in writing within ten working days.