(a) The Program shall have an operating budget approved and reviewed by the governing body and agreed to by contract with the Division. - (i) The budget shall categorize revenues and expenses for each grant project and position by the expense categories of the approved budget.
- (ii) The Division and governing board must approve all grant specific budget change request reflecting changes within line items.
(b) Fiscal Accounting records supported by source documentation are to be maintained on a current basis and balanced monthly.
(c) The Program shall have a financial review committee of not less than two members who are not involved in the daily accounting functions. The committee's function is to perform an internal review at least semi-annually of cash receipts and disbursements. The committee shall report to the governing board.
(d) Fiscal Reporting. - (i) Regular financial reports of the fiscal management of the Program shall be made to the governing body and the Division every six months and at the end of the contract.
- (ii) The report shall include a comparison of actual support, revenue and expenses to date by funding source. Actual expenditures are to be compared with budgeted amounts.
(e) Audits. - (i) Programs receiving $500,000 or more in federal funds or $100,000 or more in state funds within one year shall have an audit conducted for the contract period. The audit conducted for federal funds must be in accordance with the provisions of Circular A-133.
- (ii) Audits shall be performed by independent accounting firms engaged by the Program.
- (iii) In the event of allegations of misappropriations of funds, the Division may require an independent audit of the Program at the Program's expense.
(f) Any funds not expended by the last date of the contract period shall be returned to the Division within 45 days of the end of the contract.