What To Expect with DHHS Financial Contract Management

DHHS monitors vendors to ensure expenditures are supporting the program under contract. Where federal funds are included, this process is federally-required and referred to as subrecipient monitoring. This monitoring can include reviewing invoices and backup documentation, requesting additional financial records, or a full review of the provider to ensure the DHHS expenditures are appropriately supported. 
A full review would start with a review of your standard internal controls, followed by a review of specific invoices submitted to the Department.

The Department may request the following documentation:

• A brief description of segregation of responsibilities
• Sample timesheets and method for allocating salaries and wages
• All policies and procedures
• Organizational charts
• Employee Handbook
• Copies of any subcontracts or agreements with entities that provide services for the program
• List of the Board of Directors with an email address for the Chair
• Copies of Board meeting minutes from the previous 12 months, including Finance Committee minutes
• A copy of the financial reports as delivered to the Board at their last meeting
• Recent reviews or audits of the agency by other entities, and 
• Written narrative on the processes used to invoice the state for reimbursement

One of the most important reviews we will do is to ensure you have adequate Policies and Procedures. In particular, we are required to ensure there are policies and procedures around cash management, procurement, subrecipient monitoring or contract administration, conflicts of interest, and time and effort reporting.