22VAC30-60-150: Elements of an acceptable financial management system

A. An Area Agency on Aging shall maintain records and make reports in such form and containing such information as may be required by the Virginia Department for Aging and Rehabilitative Services. An Area Agency on Aging shall maintain such accounts and documents as will serve to permit expeditious determination of the status of funds and the levels of services provided under the approved area plan, including the disposition of all moneys received from the Virginia Department for Aging and Rehabilitative Services, and the nature and amount of all charges claimed against such funds.

B. An Area Agency on Aging shall keep records that identify adequately the source and application of funds for grant-supported or contract-supported activities and for activities under subcontract. At a minimum, these records shall contain information pertaining to the grant or contract, subcontracts, authorizations, obligations, unobligated balances, assets, outlays, income, and, if the recipient is a governmental entity, liabilities.

C. Special grant or contract conditions more restrictive than those prescribed in 45 CFR Part 75 may be imposed by the Virginia Department for Aging and Rehabilitative Services on an Area Agency on Aging, as needed, when the Virginia Department for Aging and Rehabilitative Services has determined that the Area Agency on Aging:

1. Is financially unstable;

2. Has a history of poor performance; or

3. Has a management system that does not meet the standards of 45 CFR Part 75.

D. For the purpose of determining the adequacy of an area agency's financial management system, the Virginia Department for Aging and Rehabilitative Services shall consider the following records maintained on a current basis to be minimum:

1. General journal;

2. General ledger;

3. Separate or combined cash receipts and disbursements journal or voucher register;

4. Payroll register (if the agency has more than 10 employees);

5. Fixed assets register for all owned and leased property and equipment;

6. In-kind journal or worksheets;

7. Project cost control subsidiary ledger or worksheets; and

8. Bank statements reconciled within 30 calendar days of receipt.

E. Grantees or contractors of the Virginia Department for Aging and Rehabilitative Services may substitute the equivalent kind of records for those specified in subsection D of this section, provided the substitute records meet the function for which those records have been required.

F. An Area Agency on Aging shall have procedures for determining the reasonableness, allowability, and allocability of all contract costs.