Revision 19-0; Effective March 1, 2019
The Rehabilitation Services Administration (RSA) requires HHSC to develop and implement standards for Centers for Independent Living (CILs) to ensure compliance with Title VII of the Rehabilitation Act of 1973, as amended. The Independent Living Base/Operational Grant Standards for Service Providers (ILBOGS) is based on:
- Section 725 of the Rehabilitation Act of 1973, as amended (the Act);
- 34 Code of Federal Regulations (CFR) Section 364; and
- 34 CFR Section 366.
A CIL that receives funds from HHSC must meet the standards in applicable state and federal regulations, as well as those described in this chapter and in the following sections of Chapter 1: Basic Standards for Centers for Independent Living (CILs), of the ILBOGS:
- 1.1, Overview;
- 1.15, Safe and Secure Environments;
- 1.17, Allegations or Incidents of Abuse, Exploitation or Neglect of Persons with Disabilities;
- 1.22, HHSC Office of the Ombudsman; and
- 1.29, Monitoring.
A CIL must promote and practice an independent living philosophy including commitment to consumer control of the CIL, and including:
- service delivery;
- establishment of the policy and direction of the CIL;
- self-help and self-advocacy — for example, by training people with significant disabilities in self-advocacy;
- peer relationships and peer role models — for example, by using people with significant disabilities who have achieved independent living goals as instructors in its training programs or as peer counselors; and
- equal access for people with significant disabilities to all public or private services, programs, activities, resources and facilities.
A CIL is a private nonprofit organization that is consumer-controlled, community-based, cross-disability and nonresidential, is designed and operated in the local community by people with disabilities, and provides an array of IL services.
A CIL must have written documentation that its board is the CIL's principal governing body, and has a majority of members who have significant disabilities.
Each CIL shall have written documentation that the CIL promotes increased availability and improved quality of community-based programs that serve individuals with significant disabilities, and removal of any existing barrier (architectural, attitudinal, communication, environmental or other type) that prevents the full integration of these individuals into society.
This documentation must demonstrate that the CIL performed at least one activity in each of the following categories:
- community advocacy;
- technical assistance to the community on making services, programs, activities, resources and facilities in society accessible to individuals with significant disabilities;
- public information and education;
- aggressive outreach to members of populations of individuals with significant disabilities that are unserved or underserved by programs under Title VII of the Act in the CIL's service area; and
- collaboration with service providers, other agencies and organizations that could assist in improving the options available for individuals with significant disabilities to avail themselves of the services, programs, activities, resources and facilities in the CIL's service area.
Each CIL must submit to the State Independent Living Council (SILC) a copy of its Annual Performance Report for the State Independent Living Services Program (RSA-704 Part II). (See Chapter 4 , Reporting.) The SILC uses this information for reports (for example, to the Texas Legislature) as well as to monitor information contained within the State Plan for Independent Living (SPIL).
The CIL must be chartered by the state of Texas as a nonprofit organization and must have a board of directors.
The board must:
- ensure that the CIL maintains the organization's focus on its mission and purpose;
- hire the executive director;
- outline the responsibilities of each position and each member in the board's organization;
- either as a whole or by means of the CIL's finance committee, regularly review actual revenue and expenditures and compare them with budgeted revenue and estimated costs;
- meet at least quarterly;
- review and approve programs and budgets;
- periodically review policies and procedures for the organization's operation; and
- review and approve changes and revisions to policies and procedures before implementation.
Each board member must receive training that covers board responsibilities and applicable CIL policies, to be provided within 90 days of his or her board appointment.
Board meeting minutes must include, at a minimum, the following:
- meeting date and location;
- names of all attendees and visitors;
- progress made on grant work plan goals and objectives;
- all items voted upon;
- results of votes; and
- date the board approved the minutes.
The CIL must observe sound business practices in securing bonding and insurance to provide adequate coverage for HHSC-funded projects.
Board members and staff members must be insured or bonded when required:
- by the organization's bylaws;
- by law or regulations;
- as a condition of the grant award; and
- to protect HHSC's grant interests.
A CIL must develop and follow policies and procedures that comply with:
- 34 CFR 364;
- 34 CFR 366;
- the Education Department General Administrative Regulations (EDGAR);
- 2 CFR 230 (OMB Circular A-122);
- OMB Circular A-133; and
- Independent Living Base/Operation Grant Standards for Service Providers.
The CIL board must ensure that organizational policies and procedures include:
- personnel policies to be followed by CIL management and staff members;
- financial management and procurement standards; and
- program service guidelines that comply with federal and state requirements.
Organizational policies and procedures must be:
- periodically reviewed by the board; and
- published and distributed or made available to all board and staff members.
Any changes or revisions must have board approval before becoming effective.
The CIL organizational budget:
- reflects, in monetary terms, the organizational goals and objectives for the coming year;
- provides an opportunity to review the prior year's actual expenditures against the initial budget; and
- allows assessment of variances to determine whether they are likely to recur in the coming year and should be reflected in the new budget.
The CIL must maintain an organizational budget that:
- is prepared at least annually;
- is approved by the board;
- identifies all anticipated funding sources; and
- identifies planned use of all financial resources.
HHSC provides financial assistance that enables CILs to provide services for consumers.
The CIL must:
- accept full legal responsibility for the program, including fulfilling grant requirements;
- direct all program and administrative aspects through effective and sound management practices and policies; and
- provide fiscal and program management of the grant.
HHSC provides financial assistance based on an approved grant application submitted by a CIL. The HHSC grant application is typically submitted every two years. The grant application consists of a grant work plan, a budget and other requirements. HHSC will communicate the deadline for submission of the application during the contract renewal process.
The CIL prepares a grant work plan with goals, objectives, activities, and measurable outputs and outcomes and has the responsibility to fulfill the plan. The plan must be consistent with the State Plan for Independent Living (SPIL) at the time the grant application is prepared. If a new SPIL becomes effective after the grant application is prepared and requires changes to the work plan, the CIL must consult the Grant Award and Contract section to see if a contract amendment is required. (See 2.4.4, Grant Award and Contract.)
A budget must be prepared for each year of the grant period. The grant budget reflects anticipated costs associated with the goals, objectives, activities and outcomes outlined in the grant work plan. Costs are budgeted under seven cost categories, which are described later in this section.
After approving the application, HHSC develops a bilateral contract. The basis of the agreement between HHSC and the CIL include:
- the approved application;
- the contract; and
- any amendments and updates to the application and the contract.
The contract is effective for one year, with a one-year renewal option. Renewal requires submission of updates to certain sections of the application (for example, the budget, work plan and other information that has changed). Any commitment or expenditure of grant funds must be based on the approved application and signed contract, as well as on amendments and updates to the contract and application.
An amendment to the contract is required when a substantial change to the contract or work plan is made.
Changes to goals or objectives in the work plan require an amendment. Major changes to activities (for example, deleting an activity, adding a new activity or substantially altering an activity) may require an amendment. The CIL should consult with the contract manager when making such changes.
CILs are reimbursed for allowable budgeted expenses incurred and paid in the course of providing services consistent with the terms of the contract.
A CIL may be considered higher risk if HHSC determines that the CIL:
- demonstrates poor performance in the conduct of grant requirements;
- is not financially stable; or
- does not comply with:
- Independent Living Base/Operational Grant Standards for Service Providers;
- provisions of the grant application;
- the contract; or
- applicable state and federal rules, regulations or laws.
Based on these factors that indicate higher risk, the HHSC grant may include special conditions or restrictions, such as:
- additional approvals of grant decisions;
- required training and/or technical assistance;
- payment on a reimbursement basis instead of cash advances;
- more frequent financial and/or program performance reports; and
- increased grant and/or project monitoring.
All CILs must comply with applicable Office of Management and Budget (OMB) and U.S. Department of Education General Administrative Regulations (EDGAR) fiscal and accounting requirements. CILs must adopt those fiscal control and fund accounting procedures, as necessary, to ensure proper disbursement of, and accounting for, CIL funds.
The CIL maintains a sound fiscal management system that:
- discloses financial results;
- maintains accurate and complete records of funding sources and uses of all grant funds;
- complies with grant rules and regulations;
- maintains system-generated reports required by the board, executive director and funding agencies;
- evaluates progress toward objectives; and
- has an internal control structure that segregates funds, authorizes expenditures, addresses separation of duties, includes adequate checks and balances, records financial transactions and limits access to assets.
The CIL's policies and procedures for financial management should include methods for making payments, accounting for program income, approving budget revisions, determining legitimacy of costs and establishing fund availability.
The CIL must follow all state laws regarding prompt payment to its vendors.
The CIL must maintain an accounting system and records that:
- record revenue and expenditures using generally accepted accounting principles;
- include a chart of accounts that lists all accounts by an assigned number;
- contain a general ledger and subsidiary ledgers;
- identify all funding sources and expenditures by separate fund type; and
- use a double-entry accounting system (e.g., the cash, the accrual or the modified accrual system).
Fund accounting is a system in which separate records are maintained for each funding source. When fund accounting is used, the chart of accounts must be carefully structured and must account for each program separately. For example, HHSC reimburses the CIL for specific line-item costs.
The CIL must define circumstances under which the chart of accounts may be revised and the frequency of board approval.
CILs must designate people who have financial administration authority to:
- enter into contracts;
- request and expend funds;
- seek and pursue funding sources; and
- administer and manage all fiscal matters on behalf of the CIL.
CIL policy approved by the board must indicate positions and areas of responsibility for financial administration. Positions with financial administration authority may include:
- the CIL board chair, president or a board member with relevant expertise;
- the CIL executive director or chief executive officer; and
- other staff members or contractors with financial responsibilities.
Those given financial administration authority must have sufficient experience in grant expenditures, including:
- keeping financial records;
- preparing financial statements;
- anticipating financial needs;
- safeguarding and managing financial assets;
- complying with federal and state reporting requirements;
- establishing and monitoring a system of internal controls;
- participating in long-range planning to secure permanent funding for projects that provide services; and
- signing financial documents to certify their accuracy and validity according to HHSC reporting requirements and CIL policy approved by the board.
CIL contracts are classified as cost reimbursement contracts, which means that CILs are reimbursed for allowable incurred costs. The CIL may request operating funds for no more than 30 days in advance or to be reimbursed for allowable costs already incurred.
CILs that meet the contract requirements may request advance payments, certifying that the amount requested will not exceed 30 days' operating funds. If advanced funds are not expended during the month of the request, they must be adjusted on the next request.
CILS must complete a Request for Advance or Reimbursement (RAR) at least every 90 days for the base grant contracts.
If the CIL does not meet the requirements of the contract, HHSC may:
- adjust payments;
- reimburse based on actual costs already incurred;
- require additional supporting documentation to make payments; and
- take other action, as appropriate.
A contractor must respond promptly in settling claims when HHSC discovers an overpayment. If a contractor discovers an overpayment from HHSC, the contractor should self-report the overpayment to the contract manager immediately and arrange for reimbursement.
HHSC is obligated to pay only for goods and services that meet the requirements in the Independent Living Base/Operational Grant Standards for Service Providers and on the service authorization.
The CIL must ensure that no more than $500 earned in interest on advance payments is retained for administrative expenses over the grant year.
CIL cash management policies must address:
- check and cash receipting;
- petty cash funds (if used); and
- check processing.
Cash receipts and checks must be deposited promptly and recorded in the accounting system according to CIL policies. In addition:
- a cash-receipts log must be maintained; and
- checks must be restrictively endorsed.
Petty cash disbursements must be:
- adequately safeguarded; and
- properly recorded.
Checks for CIL purchases must be processed by completion of an order or request. CIL policy must identify those with authority to approve expenditures and sign checks.
The CIL must maintain proper custody over checks, including voided checks.
Bank accounts must be reconciled monthly by someone who does not disburse, receive or record receipt of funds.
Records must include:
- initialed and dated monthly reconciliation;
- bank statement;
- check register;
- canceled and voided checks;
- electronic funds transactions; and
- any other applicable accounting records.
All adjusting entries must be approved by management and promptly recorded by appropriate staff members.
All cash disbursements must be verified and entered into the CIL's accounting system.
In the grant application, the CIL provides information about other sources of funds used to support the CIL program, in addition to HHSC grant funds. These other sources of funds may include:
- RSA federal funds and other grant money;
- donated volunteer services and goods; and
- program income.
The CIL must determine the value of donated goods and volunteer services and show them as other sources of funds in the grant application. The value of donated goods must reflect the cost that would be incurred if the CIL were to purchase the items, and may not be reimbursed as either a direct or indirect cost. Donated goods and volunteer services must be allowable, reasonable, and necessary to the program in order to be reported. For guidance on how to value volunteer time, see 2.6.7 , Volunteer Program.
For more information about funding, see:
- 2 CFR Part 215 (OMB Circular A-110), administrative requirements; and
- 2 CFR 230 (OMB Circular A-122), cost principles.
Program income is gross income that is earned by the CIL and that is directly generated by a supported activity of the CIL grant award.
The CIL must ensure that program income is:
- used during the current fiscal year as a deduction from total allowable costs charged to the grant; or
- an addition to the grant funds to be used for additional allowable program expenditures; and
- accounted for separately for each fiscal year.
The CIL must maintain policies that:
- document resources used in generating program income;
- ensure that earned and used program income is accounted for separately in the chart of accounts; and
- address the process to carry forward program income.
Records must include:
- sources of program income;
- amount of program income received; and
- quarterly financial reports consistent with accounting records.
All costs must be reasonable, necessary, allowable and allocable to the contract in accordance with 2 CFR 230 (OMB Circular A-122).
If the CIL has questions about a specific cost that is not addressed in 2 CFR 230 (OMB Circular A-122), the CIL should seek technical assistance from the contract manager.
When costs are distributed between multiple programs or cost centers, a CIL must submit a cost allocation plan with the grant application to ensure that all costs are allocated properly. The CIL must pay particular attention to personnel, building costs and equipment. For details about cost allocation plans, see 2 CFR 230 (OMB Circular A-122).
The CIL must:
- obtain board approval of the cost allocation plan;
- update the cost allocation plan as needed — for example, when new funding sources are obtained;
- document application of the cost allocation plan to shared costs to ensure that the appropriate share is requested from the HHSC grant; and
- submit the cost allocation plan to the contract manager when the grant application is submitted and when revisions are made.
The CIL's organizational and personnel assignment practices, as documented in written board policy, must comply with Section 503 of the Rehabilitation Act, including taking affirmative action to employ and promote qualified individuals with significant disabilities.
A CIL must also document that the majority of its staff members, including members in decision-making positions, are people with disabilities.
CIL staff members must include specialists in developing and providing IL services and in developing and supporting a CIL. To the greatest extent possible, personnel should be available who are able to communicate:
- with individuals with significant disabilities who rely on alternative modes of communication, such as manual communication, nonverbal communication devices, braille or audiotapes;
- with people who apply for or receive IL services under Title VII of the Act; and
- in the native languages of individuals with significant disabilities whose English proficiency is limited and who apply for or receive IL services under Title VII of the Act.
CILs must establish and maintain a program of staff development for those involved in providing IL services and, if appropriate, in administering the CIL program. Staff development programs should emphasize improving the skills of staff members directly responsible for providing IL services, including knowledge and practice of the IL philosophy. A CIL must provide training to its staff on how to serve unserved and underserved populations, including minority groups and urban and rural populations, as evidenced by in-service training records.
CILs must comply with federal and state employment laws in their human resource policies.
CIL policies must address:
- Fair Labor Standards Act (FLSA) minimum wage and maximum hours provisions;
- definitions of full-time, part-time and temporary positions;
- wage and salary schedule;
- approved job descriptions, including duties and functions of each position;
- minimum knowledge, skills and abilities to perform the job;
- employee performance appraisal;
- employee separation or termination; and
- professional conduct.
The CIL must maintain an organization chart outlining the current structure of the CIL organization. The chart must:
- identify all staff and volunteer positions by job title, including supervisory positions; and
- define reporting relationships among positions, which must be approved by the board.
The CIL must maintain personnel files that include, at a minimum:
- current application and/or résumé;
- current job description;
- documents that support payroll deductions (W4, court orders, etc.);
- proof of citizenship or right to work in the United States (Form I-9 or other state or federally recognized form);
- proof of professional credentials (if applicable); and
- current driver license and evidence of automobile insurance (if applicable).
Time reporting must be based on documented payrolls approved by responsible officials of the organization. Salaries and wages must be supported by personnel activity reports reflecting the distribution of activity of each employee charged to the grant. The reports must:
- reflect an after-the-fact determination of the actual activity of each employee;
- account for the total activity for which employees are compensated and which is required in fulfillment of their obligations to the organization;
- be signed by each employee and by a responsible supervisory official having first-hand knowledge of the activities performed by the employee, assuring that the distribution of activity represents a reasonable estimate of the actual work the employee performed during the periods covered by the reports; and
- be prepared at least monthly and coincide with one or more pay periods.
Policy must address:
- work hours;
- attendance; and
- leave reporting.
The following are considered benefits if the costs are absorbed by all organizational activities in proportion to the amount of time or effort devoted to each:
- regular compensation paid to employees for authorized absences, such as vacation leave, sick leave, etc.; and
- employer contributions to Social Security, workers' compensation, insurance, pension plans, etc.
Policy must address:
- accrual, balance and carryover of leave;
- deferred compensation;
- workers' compensation; and
- unemployment compensation.
When a CIL uses a volunteer to fill a position that fulfills a critical function of the IL program, the CIL must provide:
- an approved job description;
- time sheets signed by the volunteer and supervisor; and
- documented valuation of the hourly rate assigned to the volunteer's time.
These requirements do not apply to one-time, spontaneous or informal volunteer activities.
The value of volunteer services in positions that would otherwise require hired staff members is based on the work performed. CILs that already have employees performing these activities may use their own rate of pay to assess the value of volunteer services. If a CIL does not have employees in a similar position, it may use standard local compensation for such positions.
CIL procurement policies must address:
- conflict of interest situations;
- planning for procurement needs;
- criteria and situations for obtaining bids or proposals;
- purchasing of supplies and equipment;
- contracts for goods or services; and
- maintenance of procurement records.
CILS must have written procurement procedures that address the requirements of 2 CFR Part 215 (OMB Circular A-110), including:
- avoiding the purchase of unnecessary items;
- where appropriate, analyzing lease and purchase alternatives to determine which would be the more economical and practical procurement for the CIL;
- ensuring that solicitations for goods and services provide for all of the following:
- a clear and accurate description of the technical requirements for the material, product or service to be procured. In competitive procurements, the description must not contain features that unduly restrict competition;
- requirements that the bidder must fulfill and all other factors used in evaluating bids or proposals;
- a description, whenever practicable, of technical requirements in terms of functions to be performed or performance required, including the range of acceptable characteristics or minimum acceptable standards;
- the specific features of "brand name or equal" descriptions that bidders are required to meet when such items are included in the solicitation;
- the acceptance, to the extent practicable and economically feasible, of products and services dimensioned in the metric system of measurement;
- preference, to the extent practicable and economically feasible, for products and services that conserve natural resources, protect the environment and are energy efficient;
- making efforts to use small businesses, minority-owned firms and women's business enterprises, whenever possible;
- clarifying the type of procuring instruments used (for example, fixed price contracts, cost reimbursable contracts, service authorization and/or purchase orders, and incentive contracts); and
- ensuring that contracts are made only with responsible contractors who have the potential ability to perform successfully under the terms and conditions of the proposed procurement.
CILs must, on request, make available to HHSC pre-award review and procurement documents, such as requests for proposals or invitations for bids, independent cost estimates, etc.
CILs must develop and follow policies and procedures that address asset purchase and inventory records, safeguarding assets, periodic conduct of inventory and disposition of HHSC-funded assets.
- dispose of equipment by following the current edition of the American Hospital Association's (AHA’s) Estimated Useful Lives of Depreciable Assets, except when federal or statutory requirements supersede; and
- request approval from the HHSC program staff before disposing of equipment with a fair market value of $5,000 or more, or a controlled asset before the end of that item's useful life, or as otherwise required by contract.
The AHA Estimated Useful Lives of Depreciable Assets may be obtained through:
- Health Forum, Inc., at 800-242-2626; or
- on the AHA Web site in the Online Store.
The requirements in the Uniform Grant Management Standards must be followed if an item of equipment or a controlled asset is not:
- contained in the AHA Estimated Useful Lives of Depreciable Assets;
- governed by contract; or
- superseded by federal or state requirements.
If approval for disposition is not required, or approval has already been obtained from HHSC program staff members, sub-recipients must ensure that disposition of any equipment or controlled asset is in accordance with the terms of the contract, such as compliance with Generally Accepted Accounting Principles and any applicable federal guidance.
All grant-funded contracts for goods or services must be in writing and include all terms and conditions.
Contracts must contain:
- a clause requiring that the contractor does not subcontract with another individual or organization;
- rights and responsibilities of both parties;
- purpose of the contract;
- description of deliverable goods or services;
- delivery dates of services or goods;
- the amount and method of payment;
- appropriate pass-through regulations (for example, civil rights and other rights identified in the Independent Living Base/Operational Grant Standards for Service Providers); and
- the signatures of authorized parties.
CILs must monitor contracts to ensure that goods and services are provided and paid according to contract terms and conditions.
Employee compensation costs (or compensation for personal services) must be calculated in compliance with 2 CFR 230 (OMB Circular A-122), and meet HHSC requirements.
A CIL must:
- compensate employees:
- according to policies, programs and procedures that effectively relate individual compensation to the person's contribution to the performance of the contract work;
- follow policies that result in internally consistent, equitable treatment of employees; and
- pay employees a wage or salary that is comparable to that paid for similar services outside the organization in the labor market in which the CIL competes for the kind of employees involved;
- review and approve salaries by position or function; and
- ensure that employees who work:
- solely on a single award or cost objective are supported by periodic certifications that employees worked solely on the IL program; or
- on multiple activities or cost objectives and record the actual time spent on each funded activity on a timesheet or personnel activity report. Time sheets or personnel activity reports must reflect an after-the-fact distribution of actual activity.
A CIL must not bill and receive reimbursement from funding sources for more than 100 percent of an employee's total salary or work time.
Fringe benefits are allowances and services that the CIL provides to employees as additional compensation. Employer contributions for employees' health insurance, life insurance and retirement plans are examples of fringe benefits. Also included are items required by law for the benefit of employees, the employer's portion of the Federal Insurance Contributions Act tax (FICA, also known as Social Security), workers' compensation insurance and unemployment insurance.
A CIL must determine its responsibilities and comply with applicable state and federal laws and regulations, including the following:
- workers' compensation — questions may be addressed to a qualified local insurance agency, the State Board of Insurance or the State Industrial Accident Board;
- FICA — questions may be addressed to the IRS;
- federal unemployment taxes — questions may be addressed to the IRS;
- state unemployment taxes — questions may be addressed to the Texas Workforce Commission.
The percentage of costs for an employee's fringe benefits charged to the contract must not exceed the percentage of time or effort the employee devotes to the contract.
Travel-related expenses are budgeted and allowed on a cost-incurred basis if the costs are reasonable, necessary, allocable and substantiated by adequate documentation. Travel costs are limited to the rates and line items approved in the contract.
Travel expenses are allowable if they are incurred by the CIL's employees while performing official contract business. Travel expenses for consumers are included in the Other Costs category.
Travel-related expenses include:
- personal vehicle mileage;
- parking fees;
- toll fees;
- taxi fare; and
- other travel-related costs.
Reimbursement for meals and lodging is allowed only for approved, overnight travel outside the designated headquarters (city limits). HHSC reimbursement for meals, lodging and mileage may not exceed the comptroller's established Travel Reimbursement Rates. If the CIL has a policy that sets travel reimbursement rates lower than the current state rates, budgeting and contract reimbursement cannot exceed the rate set by the CIL's policy.
If the CIL has a policy that sets travel reimbursement rates higher than the current state rates, the difference between the state's allowable contract reimbursement and the CIL rates may be made up from other funding sources.
According to 2 CFR 230 (OMB Circular A-122), airfare costs in excess of the customary standard commercial airfare (coach or equivalent), or of the lowest commercial discount airfare, are unallowable except in special circumstances, which must be documented.
Out-of-state travel may be budgeted. The purpose and destination must be stated, and if available, supporting documentation must be maintained to justify the expense, including meeting or conference agendas.
If out-of-state travel is not budgeted, prior written approval from the HHSC contract manager is required and a formal budget revision may be required.
Budgeting and reimbursement requests for out-of-state travel must not exceed out-of-state per diem rates in the comptroller's established travel reimbursement rates. Allowability of out-of-state travel costs is determined based on comparing total costs for similar or comparable travel purposes available within the state.
Travel policy for local, in-state and out-of-state travel must address:
- allowable travel;
- required documentation;
- reimbursement rates; and
- circumstances under which an advance may be issued and procedures for reconciliation of actual costs.
Records must include:
- a travel report signed by the traveler that includes:
- certification that the employee incurred travel expenses while performing official contract business;
- the purpose of the trip;
- points of departure and arrival; and
- dates and times of departure and arrival;
- receipts, invoices, travel and mileage logs, travel vouchers and any other documentation that supports the CIL's travel-related costs (receipts for meals are required if the CIL's policy includes this requirement);
- a canceled check or other documentation that indicates:
- the amount reimbursed for travel; and
- reconciliation of actual costs if an advance was issued; and
- accounting system entries that detail the amount of travel paid.
Equipment includes articles of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost that:
- is $5,000 or more; or
- exceeds the capitalization level established by the organization for financial statement purposes, if lower.
The CIL must obtain prior HHSC approval to purchase equipment. Equipment purchased through the contract is owned by the CIL but is subject to an equitable claim by the state upon closing or terminating the contract. The CIL is accountable for equipment purchased through the contract. The CIL must bill equipment according to federal regulations found in 45 CFR Part 74 and 2 CFR 230 (OMB Circular A-122).
The CIL must:
- define equipment as stated in the applicable law, regulation or condition of the grant award;
- require that all purchases (covered by the above definition) be capitalized;
- maintain a capitalization and depreciation schedule; and
- specify requirements for insurance coverage.
A CIL may include equipment rental or lease in the grant budget if:
- the cost is reasonable; and
- the cost of leasing (over the life of the contract) is less than the purchase price.
Note: The authorized rental or lease of items classified as anything other than equipment should be included in the "Other Costs" line item of the contract budget.
A consumable material or supply is any article that is not classified as equipment or intangible personal property and has a useful life of less than one year. Consumable materials and supplies charged by a CIL as a direct cost must include only the materials and supplies used to carry out the contract.
Material and supply items usually fall into one of the following categories:
- office supplies — such as pens, paper, notebooks, staplers and binders;
- program supplies — such as training materials and outreach materials; and
- maintenance supplies — such as soap, paper towels, mops and cleaning products.
The CIL must:
- ensure that supplies are approved by authorized staff members;
- ensure that supplies are purchased competitively in accord with 2 CFR Part 215 (OMB Circular A-110);
- ensure that purchased supplies will be used during the current budget period to avoid stockpiling supplies; and
- obtain approval from HHSC before disposing of supplies whose average fair market value exceeds $5,000.
Controlled assets are items of real or personal property with an estimated life of greater than one year, but an acquisition cost of less than $5,000. These items are considered high risk and have a high potential for loss; therefore, controlled assets must be maintained in a contractor's inventory system and tagged accordingly based on specified acquisition costs.
CILs should review the Comptroller's State Property Accounting (SPA) User Manual for the most current listing of controlled assets. CILs must add items classified as controlled assets to their inventory list based on the acquisition costs noted in the SPA Manual.
This budget category may include consumer services that are either subcontracted or else are janitorial, accounting and maintenance services, etc., that are addressed by a contract. CIL contracting policy must be followed in determining which services should be contracted.
Other costs are those that are not covered by the preceding cost categories. These typically include items such as building rent, utilities, postage and insurance. In addition, any travel costs paid to or on behalf of consumers are included in this cost category (bus passes, mileage reimbursement, etc.). Each cost must conform to federal and state regulations.
CILs must establish records management policies and procedures that ensure compliance with the HHSC contract and applicable OMB and EDGAR recordkeeping requirements. CIL records must fully disclose and document:
- the amount and disposition by the CIL of grant funds;
- cost of the project for which grant funding is given or used;
- the amount of project cost funding supplied by other sources; and
- compliance with the requirements of Chapter 1 of Title VII of the Act and Part 364 of Title 34 of the Code of Federal Regulations.
The CIL record-keeping system must contain data concerning the grant program's funds, including information necessary to receive payment.
The CIL must ensure that funds are being spent and used in accordance with the grant award.
Records must include, but are not limited to:
- up-to-date ledgers and journals;
- logs of management-approved adjusting journal entries;
- supporting documentation for all journal entries;
- bank statements;
- canceled checks;
- deposit slips;
- records of electronic transactions;
- approved invoices;
- time sheets;
- capitalization and depreciation schedule; and
- cost allocation sheets.
CILs must maintain the security and confidentiality of grant records including the adoption and implementation of policies and procedures that meet the requirements of 34 CFR 364.56 to safeguard the confidentiality of all personal information, including photographs and names.
The CIL must:
- maintain accurate administrative, program or consumer, and fiscal records reflecting the grant's performance; and
- provide HHSC or others authorized by law or regulations to conduct reviews or audits access to its grant-related records for programmatic or fiscal purposes during the grant budget and retention period.