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Allowable Cost Policy Manual

Financial Management Manual

Financial Management Manual
for Counties, Tribes and 51 Boards

On December 26, 2013, the Office of Management and Budget released Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which supersedes and streamlines OMB Circulars A-21, A-87, A-102, A-110, A-122, and A-133. This guidance will be effective on December 26, 2014.

The Financial Management Manual presents a combination of good financial management practices and various financial management requirements that providers must meet as a condition of receiving DHS funds.  This Manual is intended for the use by provider agencies in the health and human services system receiving DHS funds, either directly from the Department or through counties.

Table of Contents

  1. Introduction (PDF, 14 KB)
  2. Department of Health Services Financial Management Policies
  3.  
    1. Basic Elements of an Effective Financial Management System (PDF, 34 KB)
    2. Accounting Records and Source Documentation (PDF, 54 KB)
    3. Allowable Costs (PDF, 20 KB) (Including OMB Circulars A-87 and A-122, which was updated in 2004)
    4. Establishing and Maintaining a System of Internal Controls (PDF, 32 KB)
    5. State and Federal Compliance Requirements (PDF, 15 KB)
    6. The Community Aids Reporting System (CARS) (PDF, 18 KB)
    7. Purchase of Services Model
      1. 2004 Update (PDF, 493 KB) - Model Purchase of Services Contract: A guide for writing contracts under Wis. Stat. 46.036.  
      2. Prior to 2004 (PDF, 11 KB) - Purchase of Services Model Contract Language and Instructions.

      Note: The Model Purchase of Service (POS) Contract information in this chapter applies only to programs funded by the Department of Health Services. If using funding from other Departments, contact the respective Departments for guidance on subcontracting their funds.

    8. Audit Guides (PDF, 24 KB) (by reference)
    9. County Audit Resolution Policies and Procedures (PDF, 15 KB)
      1. Part A - Policy and Guidance for Resolving Audit Findings  
      2. Part B - Audit Resolution Questions and Answers
      3. Part C - Sample Audit Desk Review Checklist
  4. Relevant Publications Issued by the Federal Government(OMB Circulars A-87 and A-122 are included in the Allowable Cost Policy Manual in Chapter B3)
    1. OMB Circular A-102 (exit DHS; PDF, 42 KB) "Grants and Cooperative Agreements with State and Local Governments"
    2. Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments (exit DHS) (Common Rule)
    3. OMB Circular A-110 (exit DHS) "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations"
    4. OMB Circular A-128 "Audits of State and Local Governments" (Obsolete, replaced by OMB Circular A-133)
    5. Questions and Answers on the Single Audit Process of OMB Circular A-128 "Single Audits of State and Local Governments (Obsolete)
    6. OMB Circular A-133 (exit DHS) "Audits of Institutions of Higher Education and Other Non-Profit Institutions"
  5. Suggestions and Ideas on Improving Financial Management
    1. How to Contract for Audit Services
    2. Special Conditions for High Risk Grantees (45 CFR 92.12)
    3. A Site Tool for Monitoring Organizational Performance
    4. Management of Accounts Receivable
 

    

Last Revised:  June 12, 2014