The Arkansas Department of Health, Bureau of Alcohol and Drug Abuse Prevention (ADH-ADAP or ADAP) is the single state agency responsible for developing and promulgating standards, rules and regulations for alcohol and other drug abuse prevention and treatment functions within the State, and operation of a comprehensive management evaluation and community research process for the allocation of resources. It is the primary point of contact in the state for the award of federal funds to be used in alcohol and other drug abuse prevention and treatment programs in the state.
It is determined that in order to combat the abuse and misuse of alcohol, tobacco and other potentially harmful drugs, a comprehensive prevention and treatment strategy must be developed in Arkansas. This strategy shall include the development and administration of a wide range of activities and campaigns deemed effective and tailored to the needs of Arkansas citizens.
To help Arkansas Citizens live productive lives free from the abuse of alcohol; tobacco and other drugs.
The ADAP and its program providers shall adhere to the following federal funding mandates:
1.00INTRODUCTION1.01PURPOSE.This manual provides information on the conduct of programs and activities related to the treatment and prevention of alcohol and other drug abuse in the State of Arkansas, and which have funds provided by the Department of Health, Bureau of Alcohol and Drug Abuse Prevention (ADAP). It provides guidance to prospective applicants about the steps in making application for such funds, and guidance to contractors/grantees, hereinafter referred to as "Providers," on their responsibility for accounting for such funds, reporting on progress, and observing applicable laws and regulations.
1.02 SCOPE The provisions of this manual are applicable to all ADAP operations, including contract and grant applications administered by the ADAP.
1.03WHERE TO OBTAIN INFORMATION AND ASSISTANCEPersons needing help in using this manual should contact the ADAP. The functional Organizational Chart shown on the following page may help in that endeavor. A new applicant should contact the Director, Treatment Services, the Director, Prevention Services, or that person's designee, for assistance.
1.04AVAILABILITY OF FUNDSAlthough it is the intent of the ADAP to address as many of the approaches to treatment and prevention as may be brought to it, applicants and providers should be aware that there is no certainty that funds will be available for every program and every proposed project however worthwhile. Projects selected for funding may be limited geographically and numerically so that the awards will have a measurable impact on the State. Furthermore, it is also possible that funds .may, not be available for the continuation of every contract/grant, even if approved for the first year.
1.05MANUAL CONTENT AND ORGANIZATION The following sections of this manual will cover: Contract/grant specifications and the application process Financial administration General Procedures
2.00CONTRACT/GRANT SPECIFICATIONS AND THE APPLICATION PROCESS2.01PROJECTS CONSIDERED ELIGIBLE FOR FUNDING BY THE ADAP:- Federal and state laws and regulations-designate certain categories which the ADAP may address. An appropriate Request for Proposal (RFP), Request for Application (RFA), or Progress Report (PR) application will be developed for each category. The RFP, RFA, or PR will include requirements and instructions for the applicant. The categories are as follows:
2.011Treatment and Rehabilitation. Any program that delivers alcohol and/or other drug abuse treatment services to a defined client population. The intent of the program of treatment services is to insure the restoration of a client to the fullest physical, mental, social, vocational, and economic usefulness of which he or she is capable. Rehabilitation may include, but is not limited to, residential and outpatient counseling, medical treatment, psychological therapy, occupational training, job counseling, social and domestic rehabilitation and education.
2.012Primary Prevention. Primary prevention programs are those directed at individuals who have not been determined to require treatment for substance abuse. Such programs are aimed at educating and counseling individuals on such abuse and providing activities to reduce the risk of such abuse. Primary prevention includes a broad array of prevention activities and services including such activities and services to discourage'the use of alcoholic beverages and tobacco products by minors. These activities and services must be provided in a variety of settings for both the general population, as well as targeted sub groups who are at high risk for substance abuse. A variety of strategies, as appropriate for each target group, shall be used. These include, but are not limited to the following: (1) Information Dissemination; (3) Alternative Activities; (4) Problem Identification and Referral; (5) Community Based Processes;. and (6) Environmental Changes. See. - . ___ Definitions, Section 7.015.
2.013Intervention." The intervention process consists of those purposeful activities by which persons or segments of the environment strengthen the individual and his/her environment to interrupt existing harmful alcohol and/or drug addictive behavior in a manner intended to bring about a positive change. The intervention process normally consists of identifying people with a problem; documentation of problem behavior; confrontation of the individual with a problem; referring the individual to those who can help; and follow-up to assure that the intervention has affected a positive change. Examples include COA (Children of Alcoholics) Groups, Diversion classes, Individual assessment and referral assistance, Employee Assistance Programs, Intervention teams, Student Assistance Programs, DWI Programs, Hot Lines.2.014Data. Research and Analysis. Approaches to and mechanisms for the collection of data on alcohol and other drug abuse in the state or local area; also the development of systems to evaluate the data for use in planning processes for Arkansas alcohol and other drug trearmentand prevention services.2.015Training. Includes training of workers in alcohol or other drug treatment, prevention or intervention programs, and training of professionals and paraprofessionals in local communities including physicians, teachers, law enforcement, etc. 2.02ELIGIBLE APPLICANTS2.021 Non-profit corporations2.022 Local Education Agencies2.023 Local units of government2.024 Public and private non-profit service agencies2.025 All applicants for funding must provide IRS Certification of their 501(c)3 status as an eligible entity. Applications must be made by an official authorized to sign for the eligible applicant.
2.03PROHIBITIONS ON FUND USEApplications will not be considered for programs using any procedures which seek to provide treatment by modifying behavior by means of psychosurgery, aversion therapy, or chemotherapy (except as a part of routine clinical care). This does not apply to those programs of behavior modification which involve environmental changes or social interaction where no medical procedures are used.
2.031Prohibitions on Substance Abuse Prevention and Treatment (SAPT) Block Grant Funds. The State shall not use SAPT Block Grant funding to carry out any projects which include (1) the exchange of sterilized needles for hypodermic injection of any illegal drug, or (2) distribution of bleach. SAPT Block Grant funds may not be used to (1) provide inpatient services; (2) make cash payments to intended recipients of health services; (3) purchase or * improve land, construct or permanently improve (other than minorremodeling) any building or other facility, or purchase major medical equipment; (4) satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds; or (5) provide financial assistance to any entity other than a public or non-profit private entity.
2.032Prohibitions on DOE Drug-Free Schools and Communities Act Funds. Programs receiving U.S. Department of Education Drug-Free Schools and Communities Act High Risk Youth funds shall be used for direct services to a target population of not less than 90% High Risk Youth. A High Risk Youth is defined as an individual who is at high risk of becoming or has been a drug or alcohol abuser, and who must meet at least one of the following criteria: 2) Is economically disadvantaged; 3) Is a victim of physical, sexual or psychological abuse; 4) Has experienced mental health problems; 5) Has experienced long term physical pain due to injury; 7) Is a child of an alcohol or other drug abuser; 8) Has committed a violent or delinquent act; 9) Has attempted suicide; 10) Has experienced repeated failures in school; 11) Is in a Juvenile Detention Facility. All recipients of these funds must also follow the guidelines for administration as described in the Education Department General Administrative Regulations (EDGAR) and National Regulatory Guidelines (NGR).
2.04APPLICATION SUBMISSION AND PROCEDURES2.041ADAP Guidelines. The application must comply with state and federal guidelines and must be consistent with established priorities of the ADAP for the prevention and reduction of alcohol and other drug abuse.2.042Confidentiality Requirements. The treatment services applicant must certify his familiarity and agreement to comply with the confidentiality requirements of 42 CFR, Part 2, which prohibit the unlawful disclosure of client records or any other client identifying information by alcohol or other drug abuse programs which are partially or totally funded by Federal funds, and/or licensed by the ADAP.2.043Assurances and Certifications. The applicant must include assurances and certifications as required by the ADAP regarding affirmative action (including those for the disabled), civil rights, client rights, equal employment opportunities, compliance with the Fair Labor Standards Act, Americans with Disabilities Act (ADA) and other state and federal laws. The applicant must include assurances and certifications regarding compliance with applicable policies initiated by the Department of Health. The ADAP is responsible for notifying all applicants and recipients of funding of these policies.
2.044ADAP Access to Records. The applicant must allow access to all records related to the grant or contract at the ADAP's request. ADAP assures compliance with all state and federal requirements regarding confidentiality.2.045Financial Disclosure. The applicant must provide financial disclosure for the total agency, if part of a larger organization, if so requested by the ADAP.2.046Processing. Deadlines-for submission of thefinal- application must be observed to receive consideration for review. The applicant is required to submit sufficient copies of the RFP, RFA, or PR, as designated in the Specifications Sheet of the RFP, RFA, or PR.
2.047Qualifications of Proposals. Late Proposals, and Withdrawals of Proposals1.Any proposal received at the ADAP after the exact time specified for the receipt will not be considered for that funding period unless:a. It was sent by registered or certified mail not later than the fifth calendar day prior to the date specified for receipt of offers (e.g., an offer submitted in response to a solicitation requiring receipt of offers by the 20th of the month must have been postmarked by the 15th of the month or earlier; if mailing arrangements will not provide a postmark, you are advised to use certified or registered mail); Proposals sent by Overnight or Express mail that arrive after the deadline specified will not be accepted for review.
b. It was sent by mail and it is determined by the ADAP that the late receipt was due solely to mishandling by the ADAP after receipt at the ADAP, or c. It is the only proposal submitted.2. The only acceptable evidence to establish: a. The date of mailing of a later proposal or modification sent either by registered mail or certified mail is the U. S. Postal Service postmark on the wrapper or on the original receipt from the U.S. Postal Service. If neither postmark shows a legible date, the proposal or modification of proposal shall be deemed to have been mailed late. (The term "postmark" means a printed, stamped, or otherwise placed impression that is readily identifiable without further action as having been supplied and affixed on the date of mailing by employees of the U.S. Postal Service.)b. The time of receipt at the ADAP is the time-date stamp on the proposal or other documentary evidence of receipt maintained by the ADAP.3. Proposals may be withdrawn by written or telegraphic notice received at any time prior to award. Proposals may be withdrawn in person by an applicant or his authorized representative, provided his identity is made known and he signs a receipt for the proposal prior to award.4. The normal revisions of proposals by applicants selected for discussion during the usual conduct of negotiations with such applicants will not be considered as late proposals or late modifications. The applicant will be notified by the ADAP as to the need for revisions or corrections. Revisions or corrections may be required in response to reviews by the ADAP and/or the Alcohol and Drug Abuse Coordinating Council.5. Proposals submitted in response to an RFP, RFA or PR are subject to the provisions of the Freedom of Information Act.6. The ADAP will evaluate program proposals in accordance with the criteria set forth in the RFP, RFA, or PR instructions.7. The ADAP reserves the right to make an award without further discussion of the proposal received. Therefore, it is important that the proposal be submitted initially on the most favorable terms from both the programmatic and cost standpoints. After submission of proposals and closing thereof, no information will be released until after the award.8. The ADAP reserves the right to reject any or all proposals received. It is understood that the proposal will become part of the official file on this matter without obligation to the ADAP.9. Unnecessarily elaborate brochures or other presentations beyond that sufficient to present a complete and effective proposal are not desired. Elaborate art work, 'expensive visual and other presentation aides are neither necessary nor wanted.10. If human subjects are involved or at risk in the proposed project, the following notice is applicable and Form HHS-596 (rev. 5/80), entitled "Protection of Human Subjects," or equivalent form, must be completed and certified, in accordance with the requirements of the Federal Regulations on the Protection of Human Subjects ( 45 CFR 46) and the instructions contained therein.11. Proposals or additions to proposals will not be accepted via a facsimile machine (FAX).2.05APPEAL PROCESS FOR ADVERSE ACTIONAn appeal process is available to provide a mechanism by which a provider or grant applicant may appeal adverse action by the Bureau of-AlGofaokand Drug-Abuse Prevention relating to a program/contract/grant. Complaints which solely assert an objection to federal or state laws or regulations are not subject to appeal under this.procedure.
When a provider or grant applicant wishes to appeal an action by the ADAP, he/she may do so by submitting a written request to the Chairperson, Alcohol and Drug Abuse Coordinating Council. The request must be received by the Chairperson no later than thirty days from the date of receipt of notification of the adverse action by the provider or grant applicant.
The notice of appeal must contain:
1. A statement of the specified action which is being appealed.2. The reason the provider/grant applicant believes the action was incorrect.3. The specific relief requested. When a request for appeal is received, the Chairperson of the Alcohol and Drug Abuse Coordinating Council will initiate the process by establishing a date for hearing the complaint.
An appeal of the decision by the Alcohol and Drug Abuse Coordinating Council may be made to the Director, Arkansas Department of Health. The request must be made within thirty days of receipt of notification of the Coordinating Council decision. The notice of appeal must contain the information specified in items 1, 2, and 3 above.
2.06PREREQUISITES FOR FUNDING OF THE APPLICATIONA proposed program cannot be considered for funding without the following prerequisites. Applicants should review the Request for Proposal, Request for Application or Progress Report for the prerequisites specific to the program for which-they are making application. Compliance with the following does not, however, guarantee funding.
2.061Administrative and Fiscal Structure, The applicant must be responsible to an administrative and fiscal structure, capable of administering an alcohol or other drug treatment or prevention project.2.062Clear Purpose. The purpose, objectives and scope of the project must be clear. 2.063.Specific. Measurable Goals. The applicant must establish specific, attainable, measurable goals and objectives. These must be capable of being evaluated. Programs will be required to participate in theADAP Evaluation System, including client, program and financial management review, and site visits by ADAP staff.2.064Referral Arrangement. The applicant for treatment and rehabilitative services must have written referral agreements with local or state agencies which may provide supportive services to the clients served in the proposed program or which may refer potential clients to the proposed program. These arrangements refer to formal written referral agreements signed by both parties and not to support letters.2.065Community Support and Assistance. There must be validated evidence for the need for such a program with adequate community support to insure continuation after termination of the contract/grant funding. Such support must consist of -definedoffers of support .and-assistance, andmust be clearly documented giving details of the plan for continuation. These should include but are not limited to: volunteers, funding and equipment donations from community groups (e.g., churches, civic organizations), participation by local units of government, participation by private industry or business. The ADAP must be assured that services do not duplicate existing effective and efficient programs. 2.07CONTINUATION SUPPORT POLICYFunding of a project does not imply approval for subsequent years.
2.08AWARD PERIODGrant awards are usually made for a twelve month period, normally coinciding with the state or federal fiscal year. Contracts or grants may be made for shorter periods after the start of the fiscal year.
2.09GRANT NEGOTIATION AND APPROVAL PROCESS1. Application is received by the Bureau's Office of Financial Management and Compliance (OFM&C) after approval by the ADAP Alcohol and Drug Abuse Coordinating Council.2. Notice of Grant Award is prepared by the Office of Financial Management and Compliance within seven working days of approval by the ADAP Alcohol and Drug Abuse Coordinating Council.3.00CONTRACT AND GRANT FINANCIAL PROVISIONS3.01AWARD INSTRUMENTSThe ADAP uses twcftypes of award instruments: Grant- an award of financial assistance to an eligible recipient. Such awards may be subject to certain terms and covenants and may be conditional upon delivery of specified goods or services. Contract - a_binding agreement between ADAP and the provider for the procurement of program or project related goods or services. Procurement contracts are subject to the requirements of the STATE ACCOUNTING PROCEDURES MANUAL. The grant or contract may specify the catchment area for provision of services.
3.02PAYMENT METHODThe ADAP uses both advance payment and reimbursement. Advance payment may_be made to grantees prior to the actual delivery of goods or services. At the discretion of the Coordinator, Office of Financial Management and Compliance, advance payment may be made for the full amount of the grant or in monthly or quarterly installments. The decision to make advances is based on the federal cash management requirements, the need of the project or program for start-up cash, the availability of money, sound business practices, and such other considerations as required. Reimbursement payment is made to contractors and may be made to granteesaccoTding to the specificterms of the agreement subsequent to the actual delivery of goods or services.
3.03GENERAL CONSIDERATIONSAll subgrantees shall adhere to the cost principles set forth in the U.S. Office of Management and Budget (OMB) Circular A-122 (Cost Principles for Non-Profit Organizations) or Circular A-87 (Cost Principles for State and Local Governments) or its successors, and applicable cost principles duly promulgated by the Department of Health. All providers shall adhere to generally accepted accounting principles and/or applicable industry accounting -principles established by the American Institute of Certified Public Accountants and the Comptroller General of the United States of America.
3.04REASONABLE AND NECESSARYAll rates of payment or costs must be reasonable and necessary to ensure the provision of quality services. Under no circumstances shall the Department of Health be liable for payment in excess of the maximum contract/grant liability or for payment in excess of the ADAP rates where applicable. The ADAP does not enter into open-ended agreements with no limitations on the total liability to the State or Federal Government.
At the beginning of each grant period, treatment providers will submit to ADAP an estimated cost for each service. If payment is also received from the client or other resources, in no event should payment collected from a client or other resource and from the ADAP exceed the providers estimated cost for each service. If the provider receives a late or unexpected payment from an insurance or other third party on a client for services previously billed to ADAP, the ADAP must be reimbursed for the previously billed costs. This can usually be done as an adjustment to the current month's billing.
3.05RATE CHARACTERISTICSPayment to providers is made on a prospective basis. Prospective payment means that the payment for goods or services is final payment regardless of the actual cost to the provider.
3.06BASIS OF RATE ESTABLISHMENT" Rates of payment for the procurement of goods or services ased'on the following:
1. Prospective, ADAP rates: Rates are established solely by reference to the rate schedule approved by the ADAP. The method used to determine the rates of -" payment maybe based on an average-or on a predetermined percentile of the '
actual costs of a base year, or of estimated costs for the program period. The ,. ,, method may be based on a formula describing'historical or estimated costs behavior in the comprehensive program environment. Alternately, the method of rate setting may be any other such method which yields rates which are reasonable and necessary to ensure the provision of quality services. The rates may from time to time be adjusted to reflect the effects of inflation by reference to the Consumer Price Index or to an appropriate industry price index.
2. Prospective, budget based: Rates are established on the basis of the provider's estimated costs. This method may be required in the absence of applicable ADAP established rates or for proposed rates which fall below 85% of the ADAP established rates.3. Prospective, non-budget based: Rates are established on any such other method (e.g., statewide or regionwide cost/rate analysis of similar projects or program environments) which provide for reasonable and necessary rates.3.07ADAP ESTABLISHED RATESThe ADAP will periodically establish rates for reimbursable services which have been determined to be reasonable and necessary to ensure the provision of quality treatment services in the general statewide treatment environment (i.e., medical models, residential treatment models, community mental health centers). A thirty, day advance written notice will be provided when new rates are established.
3.08TREATMENT SERVICE CAPACITYTreatment programs shall provide treatment services, if ADAP funding is available, within fourteen days of receipt of request for admission. Interim services (see Definitions Section, 7.03) will be provided for IDU and pregnant clients until the time of admission.
Treatment programs must notify ADAP when they reach 90% of their capacity to admit individuals to their program.
If funded, subordinate care costs or allocations may be less than but may not exceed 33% of any grant for alcohol funding (i.e., ADAP adult treatment, SSBG adult treatment, adolescent treatment, etc.), or 33% of any grant for drug funding awarded to any treatment provider.
3.09PROVISION OF SERVICESNo client may be refused treatment services due solely to an inability to pay so long as the provider has available ADAP funds. When a provider has exhausted the reimbursable amount of their contract, clients may be refused due to inability to pay.
3-10FUNDING UTILIZATIONIf utilization of total funding by category falls below 90% at the end of each quarter, at the option of the Director of the ADAP, funding may be reduced or deobligated from the provider's project or program and included in a pool for reallocation. Awards of reallocated monies shall be at the discretion of the ADAP Director.
...........The provisions of this section are not intended to establistrbifiing quotas for services, nor to determine the manner in which the provider shall earn income. At the discretion of the Director of the ADAP, billing quotas or limits may be implemented for service allocations if ;
'necessary to ensure the achievement of program goals-and objectives or if mandated by federal regulation or law.
Providers are encouraged to continue to submit bills for services provided to ADAP-eligible clients even after all ADAP funding is exhausted. ADAP may include over-utilization statistics or unpaid bills on file in awarding certain types of funds (see Section 5.0123).
3.11AUDIT3.111Independent Audit: An annual audit for the fiscal period of the provider contract/grant shall be conducted by a Certified Public Accountant and shall be prepared to the generally accepted governmental audit standards as determined by the American Institute of Certified Public Accountants, the Comptroller General of the United States, United States General Accounting Office (GAO), and the United States Office of Management and Budget (OMB). All subrecipients, regardless of organizational structure, receiving $25,000 or more in aggregate federal assistance for the contract/grant period will be audited in accordance with the provisions of the Office of Management and Budget (OMB) Circular A-128 and/or A-133.
A copy of the audit must be submitted to ADAP within 120 days of the end of the fiscal period. In the case of a contract/grant which ends or is terminated prior to the end of the fiscal period, a short period audit is required.
The independent audits will be reviewed forcompliance with program - - - - - -
requirements. If the audit reveals that the program is not in compliance, the ADAP will determine the steps necessary for the corrective action, notify the provider accordingly, and advise the provider of available administrative appeal procedures.
3.112Audit/Review Performed By ADAP: There must be maintained within the state agency administering the program the authority and responsibility for overall supervision, control and oversight of program activities. Therefore, in the best interest of the providers and the State, circumstances may indicate a need for various other types of audit activities. Such audits may encompass a variety of procedures including, but not limited to, service to billing reviews, limited financial management audits, management reviews and special investigations. ADAP audits include, but are not limited to, the review and examination of documents, records, reports, systems, internal controls and accounting and financial procedures pertaining to the grant/subgrant, for one or more of the following purposes:
1. To ascertain whether the statements contained within an independent audit present fairly the financial position and results of financial operations in accordance with Generally Accepted Accounting Principles;2. To determine the mathematical accuracy of the financial transactions;3. To ascertain whether all financial transactions-have been properly recorded;4. To confirm that eligible clients received reimbursable services in -'" " ** 'J accordance with the agreement j* '
5. To investigate reported irregularities of the program involving the provider, its staf£ or Board of Directors; and6. To determine compatibility with Federal and State laws, regulations and guidelines.3.113.Audit Settlement: If the independent audit or AD AP review/audit results in a repayment due to ADAP, the provider will choose, upon the approval of the ADAP Director, either of the following recoupment methods; 1. Payment in full to ADH-ADAP within 90 days;2. Negotiated recoupment schedule with installments deducted from payments made by ADAP to the provider.3.12USE OF FUNDS - SPECIFIC REQUIREMENTS3.121Restrictions. Contract/grant funds may be used specifically and only for the direct costs attributable to the execution of the particular alcohol or other drug abuse related program as approved by the ADAP and as detailed in the individual contract/grant. Also, services may only be provided in a catchment area as determined by the ADAP.3.122Transfer of Funds. Contract/grant funds may not be transferred, consigned, assigned, or used to subcontract for services without the prior written consent of -the Director, ADAP.3.123Replacement of Other Funds. No funds allocated from contract/grant funds will be used to supplant or otherwise replace funds which may be available from other federal, state, or local sources for the purchase of services, supplies, equipment, etc.3.124Deviation from Budget. Contract/grant funds cannot be spent in any category other than that specified in the contract/grant. The ADAP recognizes, however, that situations may arise which will cause some deviation from the approved budget of a program. If such a situation arises, the provider must submit in writing to the ADAP the amounts of funds which are to be transferred between budget categories, and must show the revision by line item amounts. This must be done before liabilities are incurred. The ADAP budget form must be used to show the transfer of funds. Also, any changes in the approved equipment list included in the funding application must have a similar written request made before the change can be made. In no case are changes effective without the written approval of the ADAP. A formal letter must accompany the budget revision giving justification for the changes. Approval will not be given retroactively.
3.125Retention of Financial Records. Records of the provider, including books of original entry, source documents, supporting accounting transactions, the general ledger, subsidiary ledgers, personnel and payroll records, cancelled checks, and related documents and records, to include electronic files, must be retained for a period of three years, with the following qualifications: (1) the records shall be retained beyond the three-year period if audit findings have not been resolved,(2) if the program is closed out, all records concerning the contract shall be transferred to the ADAP,(3) the retention period starts from receipt of the final billing and/or expenditure report.3.126Third Party Reimbursement - Treatment. Treatment programs supported with funds from the ADAP for the delivery of alcohol and other drug abuse services are expected to develop, to the extent possible, independence from ADAP support. Therefore, these projects will be encouraged and assisted in the development and use of alternate funding sources to supplement or replace ADAP support where possible. These funding sources include third-party payers, other available federal, state, local and private funds, and beneficiaries who are able to pay. (See Section 3.04) . Where third-party payers, including government agencies, are authorized or under legal obligation to pay all or a portion of charges for health care services, all such sources must be billed for covered services and every effort must be made to obtain payment. The provider must have an operative procedure for identifying all persons served who are eligible for third party reimbursement.
Where a significant percentage of the cost of care and services provided by the project is to be reimbursed by a third party, there should be a written agreement with such third party.
3.127Third Party Reimbursement - Prevention. The ADAP encourages Prevention z programs to access additional funding sources, however, full time equivalent prevention staff paid with ADAP contract funds shall not charge for those contracted services. If an honorarium is received, see Section 3.16, Program Income.3.128Deobligation of Funds. All contracts/grants shall automatically be deobligated 60 days following the end of the award period. Bills, not to exceed the amount of the obligated funds, submitted after the contract is deobligated may be paid after review and approval by the Coordinator, Office of Financial Management and Compliance. Such relief may be granted for any reasonable explanation of the delay if allowable by any federal regulations affecting the funding. Providers with unexplained delays or willful negligence in timely billing will not be granted relief from the deobligation requirement.3.129Selected Items of Cost3.1291Equipment.-Equipment is personal tangible property with a total acquisition price of $50.00 or more and useful life of at least one year. Only equipment listed in the contract/grant approved budget may be purchased. This must be done at cost equal to or less than the price listed in the original contract/grant. Unexpended funds at the end of a contract/grant period may not be used to purchase or lease items of capital expense such as office furniture and equipment to include typewriters, calculators, adding machines, copy equipment, mimeograph duplication machines, postage meters, VCR, TVs, camcorders, stereo equipment, or films, without special approval from the Coordinator, Office of Financial Management and Compliance. Equipment used as match must be cost incurred, during the contract/grant period. All equipment purchased with federal and local match dollars within the contract/grant period must be inventoried and reported to the ADAP within 30 days after the contract/grant ends. The ADAP shall discourage the funding of programs whose major purpose is the purchase of equipment (i.e., films, audio-visual, recreational equipment, etc.). Approval shall be given only if the program is able to adequately justify that the application is for a total program which shall be assisted through the purchase of equipment. The ADAP shall not furnish equipment which will be used to supplement programs funded for purposes other than alcohol and other drug primary prevention, education, treatment or intervention.
A.Bidding. All renovation and purchases of equipment, supplies or services must be done in accordance with State Contract Bidding Procedures, and reported to the ADAP before final purchase is made Basically, the-following guidelines apply. 1. Commodity over $2,000 (known as Formal Bid). The provider must (1) develop specifications for each item bid, (2) mail an invitation to bid to all eligible prospective bidders, (3) make an insertion in a newspaper with statewide circulation, not less than five nor more than thirty days prior to the opening date, (4) post bid forms on a "Bid Notice Board," and (5) open and tabulate bids at the time and date indicated.2. Commodity of $500 to $2,000 (Quotation Bid). The provider must (1) obtain at least three bids, (2) receive all bids at least one day prior to the date of purchase and (3) have the bids recorded and signed by the person receiving them.3. Commodity of $500 or less - No bids are necessary. The best judgment of the agency purchasing official should be used.4. Note that in any case where other than the low bid is to be purchased, a full letter of justification must be sent to the ADAP.B.ADAP Retention of Ownership. All equipment purchased by any program with contract/grant funds are the property of the Department of Health, Bureau of Alcohol and Drug Abuse Prevention and must be returned to the ADAP if for any reason the program is terminated or ceases to function as an alcohol or other drug related program or operate according to the specified guidelines of the grant. Such equipment, however, may remain with the provider after the contract/grant period as long as the program continues in operation. The program must assure, in writing, each year that the program will continue to serve the population designed in the original grant application. Failure to do so will result in return of property to ADAP.C. " Inventory Requirements, Under a line item cost reimbursement contract/grant, all equipment purchased with contract/grant funds remain the property of the ADAP and must be kept on the inventory list. Each item shall be affixed with an identification tag provided by the ADAP. The program should provide the ADAP with an inventory list of all equipment costing over $250.00 purchased with contract/grant funds. The list should include a description of the item and its serial number. This equipment is the property of ADAP and within 48 hours of the program's closing, all equipment shall be returned to the ADAP.
3.1292Travel. (Applies to line item cost reimbursement contracts/grants only.) Reimbursement for travel expenses will be made only if specified in the contract/grant. Reimbursement will be made for mileage only, and at a rate not to exceed the rate established by the Chief Fiscal Officer of the State of Arkansas, (currently 25 cents per mile) based on the shortest highway distance. Reimbursement for meals, lodging, fees, etc., will not be allowed unless specified in the program contract/grant. In such cases, the prevailing state rate of reimbursement will apply. Out-of-state travel must have prior approval from the ADAP to be eligible for reimbursement except for travel into Texarkana, Texas, Memphis, Tennessee or similar such immediate border areas.3.1293Insurance. Treatment programs funded by the ADAP shall be required to have a liability program thatprovides for the protection of the-physical and financial resources of the program, coverage of the building and equipment and coverage of its clients, staff and general public. If the program is part of a governmental agency, in lieu of liability insurance, the program must have other appropriate means of protection for the items specified above.3.130Program Implementation Requirements. Contracts/grants must be implemented within the time authorized by ADAP (90 days from date of award or approved project start date). Contracts/grants not implemented within this time frame will be deobligated unless the approved applicant can justify to both the ADAP Director and to the ADAP Alcohol and Drug Abuse Coordinating Council why this action should not occur. Deobligated funds will revert to the ADAP. 3.13ALLOWABLE COSTSThe following is a general guideline. Federal and State regulations specific to the program -" being "funded may differ. Seethe RFP/RFA-or Progress Report for exceptions.
3.131Salaries and Fringe Benefits; The costs of salaries are allowable to the extent that compensation of each employee is (1) reasonable and necessary, (2) comparable to that paid for similar work in the labor market and (3) supported by time-records. NOTE: Budgeted positions which are vacant should be filled within sixty (60) days of the effective date of the contract, or the cost removed from the budget. FICA, life and health insurance, unemployment coverage, worker's compensation, retirement and pension plans are allowable if reasonable and made available to all employees in the program.
The cost of housing and/or food is allowable only if it is part of an employee's compensation because of required attendance at the facility.
Fringe benefits for volunteers are not allowable; however, they may be reimbursed for expenses directly related to the program.
3.132Maintenance and Operation3.132.1Accounting and Auditing: The expense of establishing and maintaining accounting and other information systems required in the performance of the contract is an allowable expense. The cost of the required annual independent audit is also allowable.3.132.2Advertising: Costs are allowable for recruitment of personnel, * procurement of scarce items and'disposal of scrap or surplus-material.3.132.3Bonding and Insurance: The costs of bonding and insurance are allowable if in accordance with sound business practice and the rates are competitive.3.132.4Building Space and Related Facilities: Costs associated with building space and related facilities used for the benefit of the program are allowable. Funds may not be utilized for the purchase, construction or permanent improvement (other than minor remodeling) of any building.3.132.5Communications: Allowable costs include (1) Telephone costs for local and long-distance calls, service charges, installation costs, and similar expenses. (2) Postage used in the office for communication related to the program.3.132.6Depreciation and Use Allowance: A_depreciation schedule should be available and supported by adequate records and inventory.3.132.7 v Equipment Expenditures: Expenditures for equipment costing less than $500 or with a useful life of less than two years are allowable. If the total costs of all components of a system (such as for ......... computers or stereos) is S500 or more,"it must be considered a capital expense (see 3.14).
3.132.8Equipment Rental: The cost of rental equipment is allowable. Lease-purchase of equipment must be recovered through depreciation.3.132.9Field Trips: The cost of educational and recreational outings for clients, including the cost of admission, transportation (if not provided for under another line item), snacks, beverages, and food costs directly associated with field trips are allowable.3.132.10Food Service Supplies: Costs of supplies (such as plates, silverware, etc.) directly associated with the provision of meals to clients is allowable.3.132.11Freight: Costs incurred for freight, postage, and other transportation costs directly relating to goods purchased, delivered or moved from one location to another are allowable.3.132.12Indirect Costs: See Item 3.173.132.13Inspections: The cost of required inspections such as health and fire inspections, is allowable if such inspections are not available without charge.3.132.14Insurance: See Bonding and Insurance3.132.15Lease Costs: See Rental Costs3.132.16Maintenance and Repair: Costs incurred for necessary maintenance, repair or upkeep of property, including motor vehicles.3.132.17Materials and Supplies: The cost of materials and supplies necessary to carry out the objectives of the program is allowable. This line item should be broken into the following categories: Office Supplies (paper, folders, ink, pencils, etc.), Janitorial Supplies (brooms, mops, soap, etc.); Program Supplies (classroom materials, etc.). (See Section 4.09 and 4.10 regarding audio-visuals, books, tapes, etc.).3.132.18Meetings and Conferences: See Training3.132.19Memberships: The cost of membership in trade, technical, and professional organizations is allowable if: (1) related to the cost of the program; (2) is for provider membership; (3) cost is reasonable; and (4) not for membership in an organization which devotes a substantial part of its activities to influencing legislation.3.132.20.Postage: See Communications3.132.21Printing and'Reproduction: Costs for printing" and reproduction services necessary for the program, including but not limited to forms, reports and manuals is allowable.3.132.22Public Information Costs: Costs for pamphlets, news releases, and -; - other forms of information services are allowable when the primary purpose of such activities is to inform the public about the availability of services. (Prior approval from ADAP is required. See Section 4.08 for additional information.)3.132.23Rental Costs: Rental costs are allowable to the extent they are reasonable and necessary and the provider does not gain a material equity in the property.3.132.24Subcontracted Services: May be allowable: (1) Based on services rendered in relation to the contract; (2) the necessity of contracting for the services; (3) the past pattern of such costs; (4) whether contracting is more economical than service performed by employee; (5) the qualifications of the individual or firm and fees charged; and (6) written contractual agreement for services. (Also see Section 4.07.)3.132.25Subscriptions or Reference Materials: The cost of books and subscriptions to trade, business or professional periodicals is allowable when related to and subscribed for the program.3.132.26 Taxes: In general, tax payments which the program is legally required to pay are allowable. (See Section 3.14 - 9).3.132.27Training. Meetings. Conferences: In-service training is allowable . where the primary purpose is the dissemination of technical information of direct benefit to the program. Costs may include meals, transportation, lodging; registration fees, materials, etc. The cost may not exceed allowable limits for State employees on State business.
3.132.28Travel: Costs are allowable for mileage, lodging, meals and related items incurred by employees who travel on official program business. The maximum allowable may not exceed limits for State employees on official business. In no case may funds be used to pay for employees' travel between the place they are employed and their residence without prior approval from ADAP.3.132.29Utilities: The cost of utilities is allowable.3.14UNALLOWABLE COSTSThe following costs are unallowable:
2. Bidding and Proposal Costs3. Capital Expenditures (unless-specifically approved bytheiunding source4. Capital Payments (mortgage payments, investments, etc.)6. Contributionsand Donations7. Deposits (for utilities, etc.)8. Entertainment (This is not intended to apply to clients receiving socialization services with meals, congregate meal services, or field trips.)10. Interest and Other Financing Cost15. Organization Costs (incorporation fees, fund raising costs, etc.)16. Profits and Losses on Disposition of Capital Assets17. Purchase or Improvement of Land or Buildings3.15CASH DEPOSITORIESThe ADAP does not impose contract or grant requirements which;
1. Require the provider to use a separate bank account for the deposit of grant funds or reimbursement funds.2. Establish any eligibility requirement for banks or other financial institutions in which providers deposit funds.3.16PROGRAM INCOMEProgram income means gross income earned from activities part or all of the cost of which is borne as a direct cost by a contract or grant. It includes but is not limited to such income in the form of fees for services performed during the award period, proceeds from sale of tangible or.. real property, usage or rental fees, and patent or copyright royalties. If income meets this definition, it shall be considered program income regardless of the method used to calculate the -amount paid to the provider - whether, for example, by a cost reimbursement method or fixed price arrangement.
Program income may be retained by the provider only if allowed by the federal funding source and specifically authorized in writing by the ADAP, If retention of program income is approved it must be deducted from the funded amount or, if approved by ADAP, used for costs which are in addition to allowable costs of the program but support the objectives of the funded program.
3.17REIMBURSEMENTNo payment can be made until a completed W-9 is on file with the Arkansas Department of Health. The W-9 must reflect the legal name of the entity and the full mailing address for receipt of warrants. Any change in the name and address requires the completion and submission of a revised W-9.
3.171Billing. All funding requests are submitted on the appropriate forms provided by the ADAP. These must be for the actual units of service delivered or expenses incurred, if budget based, for the month not to exceed the limits of the contract/grant nor the ADAP ceiling rates for the fixed price contracts/grants.3.172Billing for Services. All reimbursement requests for any treatment service must be reconciled with the Client Logs (ADAP-6) for the particular report month. When - -j - the amount requested for these services cannot be reconciled with what appears on the ADAP-6 and correction or clarification cannot be made by telephone, the -
..... " request will be returned immediately to the provider for correction and resubmission. If the reimbursement request does correspond with the ADAP-6, the Office of Financial Management and Compliance will forward for payment.
3.173Professional Requirements to Provide Subordinate Services. Only services by physicians, psychiatrist, psychological examiners, clinical psychologists, psychiatric registered nurses and laboratories are considered to be eligible for billing as Subordinate Services. If any agency wishes to request an exception for another category or staff member, then such a request for reimbursement for any such service must be made in writing and written approval must be received from the Director, ADAP, prior to billing for such services.3.174Billing Due Dates - Reimbursement Requests. All programs are required to submit their requests for reimbursement or expenditures monthly to be postmarked no later than the seventh of the month. 3.18UNEXPENDED FUNDSAny ADAP funds over 10% remaining at the end of a contract/grant period must be returned to the ADAP. A written request to retain unexpended funds (including budget) may be -addressed to the ADAP Director. If approved, these funds may be retained by the contractor/grantee. A request for retention of funds 10% and under shall be addressed in writing (including budget) to the Coordinator, Financial Management and Compliance Section.
3.19INDIRECT COSTIndirect cost shall be allowable only when special approval is given, in writing, from the . Director, ADAP. Generally this shall not exceed 10%. Indirect costs are costs incurred by an organization that are not readily identifiable with a particular project or program but are necessary to the operation of the organization and the performance of its program.
A copy of the Federally approved indirect cost rate, or a cost allocation showing the items and expense included and the method used to equitably distribute the cost should be maintained by the provider.
4.00GENERAL REQUIREMENTS4.01ACCESSIBILITY OF FACILITIESFacilities, programs, and services-supported-inpart or in whole with funds provided by the ADAP will be so located as to be readily accessible, available, and responsive to the needs of the population to be served without discrimination because of sex; race, disability, age, religion, color, national origin, or duration of residence. Services for alcohol and other drug abuse prevention or treatment will be actively publicized so as to be generally known to the population to be served.
4.02EQUAL OPPORTUNITYEqual employment opportunity will be assured by all programs. Discrimination in any aspect of personnel administration based on race, sex, age, color, national origin, religion, disability or political affiliation is prohibited except where age, sex, or physical requirements constitute a bona fide occupational qualification. No qualified applicant will be denied employment in a position wholly or partly supported by funds provided by the ADAP solely on the basis of a prior history of alcohol or drug dependence. An Affirmative Action Plan shall be prepared and retained for review.
4.03LICENSUREAll persons, partnerships, associations or corporations establishing, conducting, managing, or operating an alcohol and drug abuse treatment program must be licensed by the Bureau of Alcohol and Drug Abuse Prevention as provided by Act 173 of 1995
4.04TREATMENT REQUIREMENTS4.041Basic Requirements. All prospective contractors/grantees for funds for treatment programs are obligated to be familiar with, and comply with, the provisions of all pertinent state, federal, and local regulations governing the activities of treatment programs." In addition, providers should be aware that programs are subject to the requirements of the ADAP Licensure Standards Manual for Alcohol and Other Drug Abuse/Addiction Treatment Programs. Providers are advised to review thoroughly the Licensure Standards package for those specific requirements (see item 4.03) The ADAP will not award funds to programs who fail to meet other licensure laws. For example, any treatment program that provides residential or similar services to adolescents must also comply with the applicable licensure requirements mandated by the Department of Human Services, Division of Children and Family services (DCFS).
4.042Client Records. Treatment facilities are required to establish a uniform client record system to document and monitor client care. These client records will conform to the requirements established in the ADAP Licensure Standards.4.043Retention of Client Records. The provider shall retain all records and other documents relating to services rendered and the individuals in receipt of the services for a minimum of three (3) years from the expiration of the agreement for the purpose of client follow-up, evaluation of the program and for completion of compliance reviews in progress at that time.4.044Confidentiality. Confidentiality of alcohol/drug abuse client records shall be assured by the provider and shall be in accordance with all pertinent state and federal regulations. Existing federal iaw (42 CFR; Part 2) provides for safeguarding files or any other client identifying information from access by any unauthorized individuals, and requires that records be maintained in a secure manner All records, however, are subject to review by the ADAP at any time for the purpose of monitoring proper execution of the contract/grant, and must be made available to ADAP upon request.4.045Client Input. Each program will develop and implement a procedure whereby persons served by the program can provide input on the operation and services of the program.4.046Client Grievance Procedures. Each program shall develop and implement a procedure whereby persons served by the program can communicate a grievance against that program and the means whereby the program will respond to the grievance. The program will also develop and implement a procedure that documents the mechanism whereby persons served by the program are informed of this procedure.4.05ON FILE REQUIREMENTS4.051Items Required On File with ADAP. As applicable to-particular programs, the following items are required to be provided to the ADAP for file, prior to approval for funding. 1. A current list of Board of Directors, including names, addresses, telephone numbers, date of appointment, length of term, and identification of officers. The Board should represent the gender, ethnic and economic-level population distribution of the entire geographic area to be served.2. A description of volunteers including numbers used in the program, a summary of qualifications for the duties to be performed, and methods of recruitment.3. A copy of the bond for the bookkeeper or accountant. Note that this must be provided prior to the effective date of the contract/grant.4. A copy of the Articles of Incorporation5. Current referral agreements with local human service providers.6. A narrative history of the program and current organizational chart.7. Listing of program personnel.8. The goals, objectives and target groups of the program for the current contract/grant year.9. Evaluation Methodology.10. Treatment Approaches and Philosophies.11. Current subcontractors and cooperative agreements.12. Geographic area of service; program hours of-operation; client/staff ratio; and facility capacity according to local fire, health and safety standards.14. Assurances of Section 504 and Americans with Disabilities Act compliance.15. Annual assessment of program progress.4.06PARTICIPATION IN CONFERENCEThe provider must participate in a minimum of one local or statewide sponsored coordinating conference, training seminar, or training workshop as so directed by the ADAP if deficiencies are identified which require specific training.
4.07SUBCONTRACTED SERVICES4.071Restriction of Services. Unless-subcontracted services are specifically identified in the program contract/grant, they may not be paid for from contract/grant funds.4.072Other Agency Subcontractor: -If a subcontractor is employed-full-time by another agency or group, a letter of permission must be obtained from the regular employer and approved by the ADAP prior to utilization in the funded program.4.073Subcontract Requirements. All subcontractors are subject to the same requirements as the prime contractor/grantee. Subcontract arrangements must contain, at a minimum, the following conditions. 1. A statement describing the particular services to be provided.2. A statement setting forth the number of hours or description of other rate computation which the consultant has agreed to provide.3. A statement of the amount of compensation to be paid.4. A clear understanding that the fee-for-services, or other compensation is available only from the funded program and not from the ADAP or other program participants.5. Provision for termination of the contract if the above requirements are not met.4.08ADVERTISING AND PUBLICITYContract/grant funds or matching funds to be spent for advertising or publicity must be clearly identified in the program contract/grant line item budget and the advertising or publicity materials must have prior written approval of the ADAP before implementation. All publicity and advertising materials, releases, etc., must identify the program as an affiliate of the Bureau of Alcohol and Drug Abuse Prevention. In addition, treatment programs shall conduct an active publicity campaign for alcohol and other drug abuse treatment utilizing all available public service announcements in the local news media.
4.09AUDIO-VISUAL MATERIALSAll audio-visual materials used by the project must have prior content approval from the, Director, Prevention Services before purchase-obligation is incurred. Review copies must, where feasible, be furnished to the ADAP.
4.10BOOKS. TAPES. FILMS AND OTHER LITERATUREAll books, tapes, films, and other literature must have prior content approval from the Director, Prevention Services at the ADAP before purchase obligation is incurred. Review copies must, where feasible, be furnished to the ADAP.
4.11VOLUNTEERSIf volunteer services are included in the terms of the contract/grant, the provider is responsible for the overseeing of the volunteers and for the monitoring of services provided by these individuals.
4.12TERMINATIONEither party has the right to terminate a contract/grant on 30-day written notice to the other party. Termination may also result by failure of the provider to meet contractual or grant obligations.
Other services may be established as needed and defined in the appropriate RFP/RFA or Progress Report.