Oregon Administrative Rules › Chapter 416 - OREGON YOUTH AUTHORITY › Division 250 - OYA AUDIT GUIDELINES › Section 416-250-0030 - Expenses

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A service
			 provider subject to audit under these rules will keep its accounting records
			 consistent with Generally Accepted Accounting Principles. Accounting records
			 will be retained for three years from the date of the expiration of the OYA's
			 agreement or from the finalization of an audit, whichever comes later.
			 Allocation methods for expenses will be documented. Relevant calculations
			 representing allocations will be shown. The allocation method will reasonably
			 distribute expenses shared by service providers or programs. Charges assessed
			 against a service provider by a related organization will be justified by the
			 related organization as to the method and reason for relevant cost allocation.
			 The expense invoice will list the location where services and supplies
			 purchases are delivered for any item in excess of $1,000.
(2) Record requirements for personal
			 services:
(a) Reports reflecting the
			 distribution of labor of each employee must be maintained for all staff
			 members, professional and nonprofessional, whose compensation is charged in
			 whole or in part to OYA funds. To support the allocation of indirect costs,
			 such reports must also be maintained for other employees whose work involves
			 two or more functions or activities if a distribution of their compensation
			 between such functions or activities is needed in the determination of the
			 organization's indirect cost rate(s). Reports maintained to satisfy these
			 requirements must meet the following standards:
(A) The reports must reflect an
			 after-the-fact determination of the actual activity of each employee. Budget
			 estimates (i.e., estimates determined before the services are performed) do not
			 qualify as support for charges to OYA funds;
(B) Each report must account for the total
			 activity for which employees are compensated and which is required in
			 fulfillment of their obligations to the organization;
(C) The reports must be signed by the
			 individual employee, or by a responsible supervisory official having first-hand
			 knowledge of the activities performed by the employee, to attest that the
			 distribution of activity represents a reasonable distribution of the actual
			 work performed by the employee during the periods covered by the
			 reports;
(D) The reports must be
			 prepared at least monthly and must coincide with one or more pay
			 periods;
(E) Periodic time studies,
			 in lieu of ongoing time reports, may be used to allocate salary and wage costs.
			 However, the time studies used must meet the following criteria:
(i) A minimally acceptable time study must
			 encompass at least one full week per month of the cost reporting
			 period.
(ii) Each week selected
			 must be a full work week (e.g., Monday to Friday, Monday to Saturday or Sunday
			 to Saturday).
(iii) The weeks
			 selected must be equally distributed among the months in the cost reporting
			 period, e.g., for a 12 month period three of the 12 weeks in the study must be
			 the first week beginning in the month, three weeks the second week beginning in
			 the month, three weeks the third and three weeks the fourth.
(iv) No two consecutive months may use the
			 same week for the study, (e.g., if the second week beginning in April is the
			 study week for April, the weeks selected for March and May may not be the
			 second week beginning in those months).
(v) The time study must be contemporaneous
			 with the costs to be allocated. Thus, a time study conducted in the current
			 cost reporting year may not be used to allocate the costs of prior or
			 subsequent cost reporting years.
(vi) The time study must apply to a specific
			 provider. Thus, chain organizations may not use a time study from one provider
			 to allocate the costs of another provider or a time study of a sample group of
			 providers to allocate the costs of all providers within the
			 chain.