Library: Policy

340:110-3-153. Finances

Revised 11-1-20

(a) Evidence of sufficient funds.  The program demonstrates evidence of sufficient funds.

(1) A new program submits a letter to Licensing from a certified public accountant documenting the procedures in place for operating the fiscal management system so the program's financial statements can be audited at the first fiscal operational year end.

(2) A new program submits a budget for the first 12 months of operation including predictable funds, as well as reserve funds.

(3) The program maintains a written financing plan projecting sufficient funds to carry out the program's defined purposes and provide proper care for children.

(b) Fiscal responsibility.  The program demonstrates fiscal responsibility.

(1) The executive director maintains complete financial records of all income and disbursements.

(2) When cash funds are received, the executive director requires individuals with cash handling responsibilities be bonded.

(c) Accountability.  The program demonstrates financial accountability.

(1) Program financial records are audited by a certified public accountant, who is not program personnel or a board member, or audited, per the governmental funding source.

(2)  When completed, a copy of the auditor's letter, including a statement verifying the program's financial records accurately reflect its financial operations, per generally accepted accounting principles, is submitted to Licensing.

(d) Insurance.  The program maintains insurance.  Insurance policies are available for Licensing review.

(1) The program is covered by property casualty insurance, unless operated by a government entity that is self-insured, per state law.

(2) The program is covered by general liability insurance, unless exempt by state law.  Coverage is at least $200,000 for each occurrence of negligence. Form 07LC092E, Insurance Verification, that includes a certificate of insurance obtained from the insurance agent is completed annually, maintained at the facility, and made available to Licensing.

(3) Vehicles used to transport children are covered by liability and medical insurance.