Section R. 330.2808 - Fiscal managementRule 2808.
(1) The governing body of a community mental health services program shall plan and approve an annual operating budget for a program based on anticipated revenues and projected expenditures.(2) The governing body of the community mental health services program shall establish procedures for interim modification of the annual operating budget.(3) When applicable, a community mental health services program shall develop a capital expenditure plan, including detailed amortization schedules.(4) An independent certified public accountant shall conduct an annual audit of the program's financial records and audit exceptions shall be corrected.(5) A program shall establish policies and procedures for purchasing and competitive bidding.(6) A program shall analyze per unit costs of services and establish appropriate service fees at least annually.(7) A program shall comply with the ability to pay process as outlined in the act.(8) When applicable, a program shall establish policies regarding the investment of funds.(9) A program shall utilize generally accepted accounting principles and maintain detailed records of all revenues and expenses.(10) A program shall restrict access to community mental health services program funds to appropriate personnel.(11) A program shall control the disbursement of funds, the receipt of funds, and the use of credit.(12) A program shall manage risk and reduce potential liability by purchasing insurance, pooling risk, or utilizing other appropriate mechanisms, or a combination of these methods.(13) A program's contracts shall specify, in measurable terms, the obligations of the parties.(14) A program shall monitor a contract agency's compliance with the provisions of the contractual agreement.(15) A program shall maintain and control inventory.Mich. Admin. Code R. 330.2808