Title 7 . Health and Social Services

Chapter 53 . (Reserved)

Section 935. Books of account

7 AAC 53.935. Books of account

(a) The books of account of a grantee must include a general ledger and records of original entry. If a grantee operates more than one residential child care facility, the grantee shall maintain separate books of account for each facility. A grantee's records of original entry must include

(1) a receipts journal and accounts receivable ledger;

(2) a cash disbursement journal and payroll journal; and

(3) a general journal.

(b) A general ledger must include a summary by account classification of financial transactions as they have been recorded in the records of original entry. A grantee shall use a separate general ledger for the transactions of each state fiscal year. A grantee shall enter a transaction in the general ledger only if the transaction was first recorded in a book of original entry. For each transaction, the grantee shall record information in its general ledger that includes

(1) the date;

(2) a reference to the journal and page number where the transaction is recorded;

(3) the dollar amount of the debit or credit from the transaction; and

(4) the balance of the account.

(c) A receipts journal must include a chronological record of all receipts for collections. For each receipt the grantee shall record information that includes

(1) the date;

(2) the receipt number;

(3) the payor;

(4) the amount received; and

(5) a classification of the amount by account number.

(d) For each bed in a facility for which the department has granted money, and for each child for whom the grantee provides services under an agreement with a party other than the department, the grantee shall maintain an account in its accounts receivable ledger and record information in that account includes

(1) the date billed, if any;

(2) the dates for which each amount receivable was earned;

(3) the name of the individual for whom services were provided;

(4) the person or governmental entity that is responsible for paying the cost of the services;

(5) the date, amount, and source of each payment that the grantee receives;

(6) the account balance; and

(7) adjustments to the account.

(e) A cash disbursement journal must include a record of all of the grantee's disbursements. For each disbursement a grantee shall record information that includes

(1) the date of the disbursement;

(2) the check number;

(3) the payee;

(4) the amount of the disbursement; and

(5) a classification of the amount by account number.

(f) For each disbursement for salaries, wages, or direct fringe benefits, a grantee shall record, in a payroll journal, information that includes

(1) the employee name and the date of the disbursement;

(2) the check number;

(3) payroll period covered;

(4) the gross amount of the payment;

(5) deductions from payroll credits;

(6) net pay; and

(7) a classification of the disbursement by grant project, facility and account number.

(g) A general journal must include a record of financial transactions that cannot be properly recorded in another book of original entry. A grantee shall record a full explanation and reference for each entry in its general journal.

(h) A grantee shall use a bookkeeping system that allows auditors to trace general ledger entries to specific receipts and checks.

(i) A grantee shall keep the following subsidiary records:

(A) earnings records and vacation and leave records for each employee;

(B) a record of all terms of each transaction involving the sale, purchase, or rental of land, land improvements, buildings, fixtures or equipment, including the date, amount, and parties;

(C) a log of all long distance telephone calls, showing the date, number called, person calling, and purpose of the call;

(D) a record of all postage expenditures for purposes such as fund raising, that are not directly related to the provision of residential child care;

(E) a schedule of fixed assets and related depreciation that separately identifies each asset for which the grantee claims reimbursement for use or depreciation costs;

(F) a record of meals and lodging provided as taxable compensation to employees;

(G) a record of all travel paid for by the grantee, including date, amounts spent, person traveling and relation of that person to the grantee, and purpose of trip; and

(H) A separate record for the petty cash fund that includes

(i) an account summary;

(ii) a cash count record;

(iii) petty cash vouchers for each disbursement;

(iv) receipts for payments out of petty cash; and

(v) receipts for each time that the petty cash fund was replenished from the bank.

History: Eff. 1/13/85, Register 93

Authority: AS 47.05.010

AS 47.40.011

AS 47.40.031