Code of Maine Rules › 10 - DEPARTMENT OF HEALTH AND HUMAN SERVICES › 144 - DEPARTMENT OF HEALTH AND HUMAN SERVICES - GENERAL › Chapter 50 - DEPARTMENT OF HUMAN SERVICES EXCEPTIONS TO OMB (OFFICE OF MANAGEMENT AND BUDGET) CIRCULARS

Current through 2024-29, July 17, 2024
DHS EXCEPTIONS TO OMB CIRCULARS A-110, A- 122, A~102 A-87,
				COMMON RULE AND A-21, Effective 7-1-90
Purpose Statement: In accordance with Maine Uniform Accounting
				and Auditing Practices for Community Agencies, (MAAP) Section .09,C{2}, the
				Department of Human Services (DHS) has elected to adopt the following
				exceptions to OMB Circulars A-110, A-122, A-102, A-87, Common Rule, and
				A-21.
Clarification Statements:
1. Unless otherwise stated, the DHS
			 exceptions are in addition to administrative requirements identified in the
			 appropriate OMB Circulars. The intent of MAAP is to apply the same standards of
			 accountability and financial management to community agencies as is required of
			 state agencies. In the application of these regulations the terms federal,
			 state, community agency, recipient and subrecipient must be read in the context
			 of the regulation under consideration.
2. "Prior written approval'' means approval
			 during the budget and contracting process or, if not included in an approved
			 budget, then by separate written request and subsequent written approval.
3, Although called the "DHS
			 Exceptions'', in keeping with the language of MAAP, in most instances these
			 exceptions are really clarifications or expansions, rather than exceptions. The
			 exceptions expand upon the information contained in the circulars to better
			 establish the Department's expectations. For the most part, the exceptions
			 represent standard administrative policies and procedures.
4. The State does not have the authority, by
			 exception or an-y other means, to establish rules for the administration of'
			 Federal funds which are less restrictive than Federal regulations. The State
			 may be more restrictive in its policies regarding Federal funds, but not less
			 restrictive.
5. The Department
			 receives a mix of State and Federal funds with which to purchase social
			 services. Frequently funds from both State and Federal funding sources will be
			 included in a single contract or will be used to purchase the same or similar
			 services. As a result, the Department has adopted a policy to administer State
			 and Federal funds by the same set of rules.
This policy will be continued under MAAP. Since any exceptions
				which are less restrictive than the Federal rules would only be valid with
				State funds, in most cases the Department has elected not to adopt exceptions
				which are less restrictive than Federal rules and thereby not to differentiate
				between State and Federal funding sources.
6. All of the DHS exceptions are not
			 applicable to direct Federal funds. Community agencies who receive direct
			 Federal funding are subject to all of the terms and conditions established by
			 the Federal agency allocating those funds.
7. For ease of reference, the DHS Exceptions
			 have been written in a format that parallels the numbering system of the OMB
			 Circulars. When the exceptions refer to "Attachments", the reference is to
			 attachments of the OMB Circulars, not attachments to the Exceptions.
Department of Human Services MAAP Circular A-110
				Exceptions
Attachment A: Cash Depositories
DHS has no exceptions to attachment A.
Attachment B: Bonding and Insurance Bonding
The Community Agency shall obtain and maintain at all times
				during the agreement period a Fidelity bond covering the activities of all
				employees who handle Community Agency funds in the amount of' 20% of their
				gross annual budget or the total amount of the grant whichever is less.
Insurance: In order to protect itself as well as DHS under the
				"State Held Harmless" clause of the agreement, the Community Agency shall at
				all times during the grant period, insure that there is in force liability
				insurance in the area covered by the DHS agreement This insurance shall provide
				adequate liability coverage to protect both the Community Agency and the
				Department from injury or damage suits arising out of the performance of the
				agreement. Prior to or upon the execution of the agreement, the Community
				Agency shall furnish the Department with written verification of the existence
				of such liability insurance coverage. In the event that any action , suit , or
				proceeding is brought against the Department on any matter herein indemnified
				against, the Department, as soon as practical, shall cause notice in writing
				thereof to be given to the Community Agency by certified mail addressed to the
				Community Agency's address shown herein. The Community Agency shall also
				maintain adequate insurance during the grant period to protect capital
				equipment from fire or thefts.
Attachment C: Retention and Custodial Requirements for
				Records
The Community Agency must adhere to the more restrictive of
				Attachment C or MAAP provisions for Retention and Custodial requirements for
				records.
Attachment D: Program Income
1. Program Income - The federal definition
			 shall apply. In addition , for DHS the following terms will need to be included
			 as part of the federal program income definition and will need to be considered
			 in fiscal agreement close-out reporting under Attachment G.
a. Available Income - Available income is
			 considered program income. This amount represents a Community Agency budget
			 commitment of funding to the program and to the DES agreement. This income may
			 include and is not limited to Agency unrestricted funds, donations, United Way,
			 and other non-DES grants . The amount committed in the DHS budget agreement
			 represents a contract budget requirement and unless written budgetary approval
			 has been received from DHS, this revenue represents an agreement requirement
			 and is considered available income for agreement fiscal close-out .
b. Donations - Donations may be considered as
			 either restricted or unrestricted funds depending on the donor's intended use
			 of those funds.
Unrestricted Donations - If the donor give the donations to the
				agency with no specific use identified, the donations are considered
				unrestricted and are under the complete control of the agency board of
				directors unless these donations have been committed through the contract
				`process in which case they are considered available income or program income
				to the extent of the amount received or budgeted, whichever is less.
Restricted donations - If the donor gives the donations to the
				agency with an intended use specified, namely the contract supported activity ,
				then these donations are considered program income. These donations should be
				recognized as revenue based on the actual amount donated to the program . All
				client donations are considered a restricted donation.