Oklahoma Administrative Code › Title 340 - Department of Human Services › Chapter 100 - Developmental Disabilities Services › Subchapter 3 - Administration › Part 3 - ADMINISTRATION › Section 340:100-3-27.5 - Provider agency quality assurance and fiscal controls

Current through Vol. 41, No. 20, July 1, 2024
(a) Each agency providing services funded
				  through the Oklahoma Department of Human Services (DHS) or the Oklahoma Health
				  Care Authority (OHCA), through Home and Community-Based Services (HCBS)
				  Waivers, to six or more service recipients implements an internal quality
				  assurance system. The system identifies and corrects obstacles to agency
				  compliance with rules governing its services or effectively addressing the
				  needs and preferences of service recipients. Implementation is assessed on the
				  basis of outcomes for service recipients and services.
(b) Provider agencies must have adequate
				  fiscal controls, including internal management controls, systems to ensure
				  accuracy and authorization of claims, and mechanisms to detect and resolve a
				  threat to solvency.
(1) A provider agency is
				  a corporation, partnership, association, or individual proprietorship that
				  contracts with DHS or OHCA, through HCBS Waivers, to provide residential,
				  employment, or in-home paraprofessional supports to service
				  recipients.
(2) Each provider
				  agency receiving $ 100,000 or more per fiscal year for the delivery of supports
				  funded through DHS or HCBS Waivers is required to conduct an independent
				  financial audit. When a financial audit is required:
(A) the audit is performed by a certified
				  public accountant:
(i) with a valid and
				  current permit to practice public accountancy in Oklahoma; and
(ii) approved by the Oklahoma Accountancy
				  Board to perform audits in accordance with Government Auditing
				  Standards;
(B) DHS
				  reserves the right to approve the selection of the auditor or examine the work
				  papers of the auditor; and
(C) the
				  provider agency submits two copies of the audited financial statements,
				  management letter, and plan to address all concerns noted by the auditor to the
				  DHS Office of Inspector General (OIG).
(i) The
				  audited financial statements are submitted within four months after the end of
				  the provider agency's fiscal year.
(ii) An extension of up to four months may be
				  authorized by DDS or OIG, following the provider agency's submission of a
				  request and explanation for delay.
(iii) No extension is granted to an agency
				  that has not submitted the previous year's audit.
(iv) Failure to submit the audited financial
				  statements may result in sanctions per Oklahoma Administrative Code (OAC )
				  340:100-3-27.2.
(3) Audited financial
				  statements are examined by DDS and OIG staff. Problems noted in either the
				  findings or substance of the audit may result in:
(A) acceptance of audited financial
				  statements;
(B) correspondence with
				  the provider agency or auditor to clarify and resolve issues in or with the
				  audited financial statements;
(C)
				  an administrative inquiry per OAC
				  340:100-3-27.1;
				  or
(D) sanctions per OAC
				  340:100-3-27.2.