Title 7 . Health and Social Services

Chapter 53 . (Reserved)

Section 955. Required financial reports

7 AAC 53.955. Required financial reports

(a) A grantee shall submit all reports on forms provided by the department, if the department so directs. A grantee shall submit the following reports for each residential child care facility grant that it receives:

(1) a proposed budget for the grantee for the grant year, including

(A) a grantee expense summary;

(B) a grant project expense summary;

(C) grant project expense details, including a personal services detail;

(D) cost allocation basis data;

(E) a treatment of applicable credits;

(F) a statement of use allowance and depreciation;

(G) a description of facilities to be rented;

(H) a statement of expected major nonrecurring capital costs;

(I) a projected income statement;

(J) a statement of transactions with related parties and organizations;

(K) balance sheet and income statement for the grantee's last fiscal year;

(2) quarterly expenditure reports; and

(3) a final expenditure report, including

(A) a grantee expenditure summary for all of the grantee's activities during the grant year;

(B) a grant expenditure summary;

(C) grant expenditure details, including a personal services detail;

(D) cost allocation basis data;

(E) a treatment of applicable credits;

(F) a statement of use allowances and depreciation;

(G) a description of facilities rented;

(H) a statement of expected major nonrecurring capital costs;

(I) a statement of income and sources of income during the grant year;

(J) a statement of changes in fund balances for the grant year; and

(K) a statement of transactions with related parties and organizations.

(b) A proponent of a residential child care facility grant shall prepare a proposed grantee budget as described in this subsection.

(1) A grantee expense summary must include a statement of all of the expenditures that the grantee expects to make, for any purpose, during the grant year. In the grantee expense summary, the proponent shall allocate the projected expenses included in its total operating budget among

(A) the following classifications of expenses:

(i) the direct cost of the residential child care facility grant project;

(ii) direct costs for each project of the grantee other than the residential child care facility grant; and

(iii) general administrative costs; and

(B) the following budget categories for each classification of expenses:

(i) personnel and training direct costs;

(ii) administrative services and supplies direct costs;

(iii) direct costs of program services for children;

(iv) direct costs of travel, food, clothing, school supplies, personal grooming supplies, and personal allowances for children;

(v) direct costs of current expenses for building, land improvements, fixtures and equipment;

(vi) direct costs of borrowing money;

(vii) insurance direct costs;

(viii) other direct costs; and

(ix) allocation of general administrative costs.

(2) A grant project expense summary must include a statement of all of the expenditures that the proponent proposes to make for the grant project during the grant year. In the grant project expense summary, the proponent shall include the number of beds that it will dedicate under the grant to each residential child care service and shall allocate the expenses included in the budget of the grant proposal among

(A) the following classifications of expenses:

(i) the direct costs of each residential child care service project under a grant from the department;

(ii) costs that are not allowable; and

(iii) general and administrative costs; and

(B) those categories for classification of expenses that are described in (1)(B) of this subsection.

(3) For each position that the proponent proposes to fill in providing services under the grant agreement, a personal services expense detail must include

(A) a description of the position, including

(i) the position title;

(ii) the total number of hours per week that the employee would work for the proponent on all projects, including both the grant project and other projects;

(iii) the academic degree that the proponent would require for the position;

(iv) the current expected hiring and termination dates of the employee that would fill the position;

(v) the gross salary for the position for all duties during the grant year, including duties performed for programs and projects other than the grant project; and

(vi) the basis upon which the salary for the position would be allocated among the grant project and other programs and projects; and

(B) an allocation of the gross salary of the position for the grant year among the following classifications of expenses:

(i) the direct costs of each residential child care project under a grant from the department;

(ii) costs that are not allowable under the grant;

(iii) general and administrative costs; and

(C) an allocation of the position to one of the following categories;

(i) general and administrative positions;

(ii) social service positions;

(iii) care providers;

(iv) education positions;

(v) recreation counselor positions;

(vi) maintenance and housekeeping positions;

(vii) medical, psychiatric, and psychological positions; and

(D) a designation of the allocation basis for any allocation of gross salary among the classifications of expenses described in (B) of this paragraph.

(4) For all expenses that the proponent proposes to incur in performing its duties under the grant, other than personal services expenses, a grant project expense detail must include an allocation of expenses among budget categories and classifications of expenses, and an explanation of the proponent's basis for allocation, as follows:

(A) The proponent shall allocate expenses among

(i) direct costs of each residential child care project under a grant from the department;

(ii) costs not allowable under the grant;

(iii) general costs; and

(iv) administrative costs.

(B) The expense detail must include the following general categories for allocation of expenses, and may include subcategories of those categories:

(i) personnel fringe benefits;

(ii) personnel training costs;

(iii) administrative services and supplies, including consultants and professional fees;

(iv) program services for children;

(v) current expenses for buildings, land improvements, fixtures, and equipment;

(vi) costs of borrowing money;

(vii) insurance costs;

(viii) miscellaneous costs; and

(ix) allocation of general and administrative costs.

(C) For each category listed in (B) of this paragraph, the proponent shall state its basis of allocation of costs among the classification of expenses described in (A) of this paragraph.

(5) A statement of cost allocation basis data must include data that would support the basis of allocation mentioned in (3)(D) and (4)(C) of this subsection. The proponent shall allocate expenses on a basis that fairly and accurately reflects the relative benefit derived from the expense by a class of beds in a residential child care facility, or by other classifications of expenses. At any time, before or after a grant is awarded, the department will reject a proponent's or a grantee's basis of allocation if it finds that the basis is not an accurate reflection of the relative benefit from a cost. Bases of allocation may include square footage, pounds of laundry, meals served, number of employees, number of beds, and other bases. The proponent shall allocate personnel fringe benefits by direct identification of the costs to individual employees or, if this is impossible, by another method. Upon the request of the department, the proponent shall furnish worksheets or schedules, to demonstrate the basis of the allocation of an expense. In its cost allocation basis data, the proponent shall include a description of each allocation basis and an estimate for each basis of the total number of allocation units that will exist during the grant year, and shall estimate the distribution of those units of allocation units among kinds of residential child care facility services and other classifications of expenses described in (3)(B) of this subsection.

(6) A proponent shall, in its treatment of applicable credits, estimate all credits or miscellaneous income items that it will receive during the grant year. The proponent shall specify those expense items and budget categories in its grantee expense summary, and grant project expense details, that were offset or reduced by the amount of each credit or miscellaneous income item. Applicable credits include

(A) purchase discounts;

(B) rebates or allowances;

(C) recoveries or indemnities on losses;

(D) sales of scrap or incidental services;

(E) rental by the grantee of space in its facilities to other persons;

(F) adjustments of erroneous charges;

(G) medicaid reimbursements; and

(H) transportation reimbursements.

(7) A statement of use allowances and depreciation shall include, for each building, land improvement, fixture, piece of equipment and parcel of land that the grantee owns or will own during the grant year,

(A) if donated, the amount of the purchase cost or value of the asset upon donation, plus any capitalized improvements to the asset;

(B) the dollar amount of any part of the cost or value of the asset that was granted, donated, or purchased with a grant or donation by a state, federal or municipal government or agency;

(C) the unpaid principal amount, at the beginning of the grant year, of each loan that was used to purchase the asset and each loan for which the asset is used as collateral;

(D) the total depreciation cost for which the proponent plans to claim reimbursement under the terms of the residential child care facility grant during the grant year;

(E) the total use allowance for which the proponent expects to claim reimbursement under the residential child care facility grant during the grant year; and

(F) the amount of accumulated depreciation attributable to the asset during each month of the grant year.

(8) For each parcel of land, land improvement, fixture, piece of equipment, and building or part of a building that the proponent expects to lease during the grant year, and use for purposes of the grant project, a proponent shall state a description of the item, the name and address of the lessor, the square footage if applicable, the rental payment for the grant year, and the grantee's basis for allocating the cost.

(9) A proponent shall include in its statement of major, nonrecurring capital costs that it expects to incur during the grant year, a description of the asset, the purpose for which the asset will be used, the amount of the expected cost, and the source of funding for the purchase.

(10) A projected income statement must show, in a summary form, the proponent's expected revenues and expenses for all of its operations during that grant year, the sources of those revenues and the purpose of the expenditures. The department will not supply forms for income statements.

(11) A proponent shall include in its proposed grantee budget a summary statement of transactions with related parties and organizations that it expects will give rise to costs that are reimbursable under the grant. The statement must include the type of transaction, the name and address of the related party or organization, the dollar amount of the grant project costs that would be incurred in the transaction, and the category and classification of the costs under (b)(2) and (b)(3)(A) and (b)(3)(B) of this section. The department will not supply forms for this statement.

(c) A grantee shall submit quarterly expenditure reports to the department. A quarterly expenditure report must include all of the expenditures that the grantee made during the calendar quarter for the grant project. In the expenditure report the grantee shall include the number of beds that are dedicated under the grant to each residential child care service, and shall allocate the grant project expenditures among the classifications of expenses and categories for classifications of expenses that are described in (b)(2)(A) and (b)(2)(B) of this section. For the purposes of this subsection, the calendar quarters are January 1 - March 31, April 1 - June 30, July 1 - September 30, and October 1 - December 31. A grantee shall insure that the department receives quarterly reports within 15 working days after the last day of each quarter. However, a separate report for the last quarter of a grant year is not required. Rather, information relating to the last quarter of a grant year must be included in the final expenditure report as described in (d) of this section.

(d) A residential child care facility grantee shall submit a final expenditure report, as described in this subsection, within 45 days after the last day of the grant year.

(1) A grantee expenditure summary must include a statement of all of the expenditures that the grantee actually made, for any purpose, during the grant year. In the expenditure summary, the grantee shall allocate actual expenditures included in its total operating budget among the classifications of expenses and categories for classification that are described in (b)(1) of this section.

(2) A grant project expenditure summary must include a statement of all of the expenditures that the grantee actually made for the grant project during the grant year. In the grant expenditure summary, the grantee shall allocate expenditures among the classifications of expenses and categories for classification that are described in (b)(2) of this section.

(3) In a personal services expenditure detail, a grantee shall, for each classification of positions described in (b)(3)(C) of this section that the grantee actually employed in providing services under the grant project, record the grantee's expenditures during the grant year, including an allocation of gross salary among the classifications described in (b)(3)(B) of this section, and a designation of the allocation basis.

(4) In an expenditure detail for expenditures actually incurred in performing its duties under the grant project, other than personal services expenditures, a grantee shall record the grantee's actual expenditures during the grant year, shall allocate expenditures among budget categories and classifications, and shall explain its basis for allocation, using the categories, classifications, and explanations described in (b)(4)(A) and (b)(4)(C) of this section.

(5) A report of cost allocation basis data must support the basis of allocation used in a grantee's expenditure details. The cost allocation basis data must show the grantee's actual experience and must otherwise conform to the requirements of (b)(5) of this section.

(6) In a treatment of applicable credits, a grantee shall report all credits or miscellaneous income that it actually receives during the grant year, and shall specify the expenditure items and budget categories in its grantee expenditure summary and grant project expenditure details that were offset or reduced by the amount of each credit or income item.

(7) In a statement of use allowances and depreciation, a grantee shall report the following information, for each building, land improvement, fixture, piece of equipment, and parcel of land that it owned during the grant year:

(A) if donated, the amount of the purchase cost or the value of the asset upon donation, plus any capitalized improvements to the asset;

(B) the dollar amount of any part of the cost or value of the asset that was granted, donated, or purchased with a grant or donation, by a state, federal, or municipal government or agency;

(C) the unpaid principal amount, at the end of the grant year, of each loan that was used to purchase the asset and each loan for which the asset was collateral;

(D) the total depreciation cost that the grantee has reported for reimbursement under the grant;

(E) the total use allowance that the grantee has reported for reimbursement under the grant; and

(F) the net book value of the asset at the end of the grant year.

(8) In a description of facilities rented, a grantee shall report actual expenditures for that purpose in the same manner that expected expenses must be reported under (b)(8) of this section.

(9) In a statement of major, nonrecurring capital costs, a grantee shall report actual expenditures in the same manner that expected costs are required to be reported under (b)(9) of this section.

(10) In a statement of income and sources of income during the grant year, a grantee shall report, in a summary form, the grantee's revenues and expenses for all of its operations during the grant year, and the sources of revenues and the purposes of expenditures. The department will not supply forms for this statement.

(11) In a statement of changes in fund balances, a grantee shall provide a summary of all changes that occurred in the grantee's fund accounts during the grant year. The department will not supply forms for this statement.

(12) In a statement of transactions with related parties and organizations, a grantee shall report all financial dealings with related parties and organizations that gave rise to costs for which the grantee sought reimbursement under the grant agreement, in the same form that expected transactions are required to be reported under (b)(11) of this section.

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

Authority: AS 47.05.010

AS 47.40.011

AS 47.40.031