PUBLIC LAWS
Second Regular Session of the 122nd

CHAPTER 519, PART SS

     Sec. SS-1. 5 MRSA §1660-D, sub-§§9, 10, 11 and 14, as enacted by PL 1995, c. 402, Pt. C, §2, are amended to read:

     9. Dollar threshold. "Dollar threshold" means a funding limit that is set to determine how a community agency will be held accountable for agreement receipts of state and federal funds from the department. This term governs the community agency's annual reporting requirements for agreement receipts expenditures and it is measured on an entitywide basis based on the community agency fiscal year.

     10. Entitywide financial reporting. "Entitywide financial reporting" means financial statements and agreement supplemental schedules of a community agency prepared based on its fiscal year. At a minimum, the supplemental schedules of the agreements must identify opening and ending balances and receipts and disbursements revenues and expenditures for each agreement.

     11. Federal audit. "Federal audit" means an audit made pursuant to the federal Office of Management and Budget Circulars A-128 or Circular A-133 or any subsequent revisions to these circulars. The federal audit must be conducted by qualified independent public accountants.

     14. Government auditing standards. "Government auditing standards" means auditing standards promulgated by the Comptroller General of the United States that are applicable to financial audits.

     Sec. SS-2. 5 MRSA §1660-F, sub-§1, as enacted by PL 1995, c. 402, Pt. C, §2, is amended to read:

     1. Accounting systems and reporting. Community agencies shall maintain an accounting system in accordance with rules adopted by the commissioner. The rules must require annual entitywide financial reporting to the department. The annual reporting requirements and the related dollar thresholds of accountability are as follows.

A. If the community agency receives at least $25,000 and expends less than $300,000 of agreement funding from the department $500,000, the agency must have an entitywide compilation of financial statements and agreement supplemental schedules prepared by a qualified independent public accountant shall comply with the terms of financial reporting contained in the individual social service agreements with the department.
B. If the community agency receives $300,000 expends $500,000 or more of agreement funding from the department, the agency must have an entitywide financial and compliance report, audit or review of the agency's financial statements and agreement supplemental schedules prepared by a qualified independent public accountant in accordance with the reporting requirements for the department and comply with the terms of financial reporting contained in the individual social service agreements with the department.

     Sec. SS-3. 5 MRSA §1660-G, sub-§2, as enacted by PL 1995, c. 402, Pt. C, §2, is repealed.

     Sec. SS-4. 5 MRSA §1660-H, as corrected by RR 1997, c. 2, §11, is amended to read:

§1660-H. Rulemaking

     The commissioner shall adopt rules, no later than 180 days after July 3, 1995 as necessary to comply with this section, establishing uniform standards when administering agreements with a community agency. These rules must address the following subjects: community agency accounting, reporting and auditing standards; department program responsibilities; program compliance requirements; entitywide standard administrative requirements and cost principles; agreement register; audit responsibilities; standards and procedures for departmental examinations; appeals and resolution process; and sanctions and timetables for accountability.

     Sec. SS-5. 5 MRSA §1660-I, sub-§1, ¶A, as enacted by PL 1995, c. 402, Pt. C, §2, is repealed and the following enacted in its place:

A. Design and operate an internal control system reasonably sufficient to ensure that the community agency meets acceptable standards in the areas of financial reporting reliability, operating efficiency and effectiveness and compliance with applicable laws and regulations.

     Sec. SS-6. 5 MRSA §1660-I, sub-§1, ¶B, as enacted by PL 1995, c. 402, Pt. C, §2, is amended to read:

B. Prepare and submit financial reports as required by the department's social services agreements and, if applicable, annual entity financial statements and agreement supplemental schedules in accordance with department rules; and

     Sec. SS-7. 5 MRSA §1660-I, sub-§2, ¶E, as enacted by PL 1995, c. 402, Pt. C, §2, is amended to read:

E. Review community agency entitywide compiled financial statement and agreement supplemental schedule submissions financial reports required by the department's social services agreements and determine the need for department examination; and

     Sec. SS-8. 5 MRSA §1660-I, sub-§2, ¶F, as enacted by PL 1995, c. 402, Pt. C, §2, is repealed.

     Sec. SS-9. 5 MRSA §1660-I, sub-§3, as enacted by PL 1995, c. 402, Pt. C, §2, is repealed.

     Sec. SS-10. 5 MRSA §1660-K, as corrected by RR 1997, c. 2, §11, is repealed.

About the 2nd Regular & 2nd Special Session Laws Of Maine

Contact the Office of the Revisor of Statutes