Plain Text Law

Title 16 — Subtitle 04. Administrative Services

Chapter 01. Juvenile Facilities Capital Program

Regulation .01 Scope.Copy Citation

This chapter governs the administration of State grants to counties, municipal corporations, and for-profit and nonprofit organizations for the planning, design, construction, conversion, acquisition, renovation, and equipping of juvenile facilities under the Juvenile Services Facilities Capital Program.

Regulation .02 Definitions.Copy Citation

A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Acquire” means to purchase or otherwise obtain ownership of all or part of a building or other property for use as a juvenile facility.
(2)
“Act” or “Juvenile Services Facilities Capital Program” means Human Services Article, §9-401 et seq., Annotated Code of Maryland.
(3)
“Construct” means to construct a new building or an addition to an existing building for use as a facility.
(4)
“Convert” means to transform all or part of a building or other property for use as a facility.
(5)
“Equip” means to acquire essential fixed or movable equipment and furnishings that have an expected useful life of at least 15 years.
(6)
“Facility” has the meaning stated in Human Services Article, §9-401, Annotated Code of Maryland.
(7)
“Renovate” means to restore, improve, or modernize all or part of an existing or proposed facility and bring it into compliance with federal, State, and local standards, codes, and requirements, so that it may retain or acquire a license to provide treatment or services or to increase the number of youths the facility serves.
(8)
“State grant” means a grant provided under the Act.

Regulation .03 Eligibility to Apply.Copy Citation

A.
Who. To be eligible for a State grant, the applicant shall be:
(1)
A county;
(2)
A municipal corporation;
(3)
A for-profit organization; or
(4)
A nonprofit organization.
B.
For What. An application may be filed for any one or more of the following facility-related projects, including their planning and design:
(1)
Construction;
(2)
Conversion;
(3)
Acquisition;
(4)
Renovation; and
(5)
Equipping.
C.
Accessibility to Mobility Impaired Persons. To be eligible for a State grant under the Act, the applicant shall certify that the facility will be accessible to mobility impaired persons in accordance with all applicable federal and State laws and regulations.

Regulation .04 Application.Copy Citation

A.
In General. An application for a State grant shall be filed with the Secretary in the form the Secretary prescribes.
B.
Compliance with Other Requirements. The applicant shall also comply with all requirements of:
(1)
The Act;
(2)
COMAR 14.24.04; and
(3)
All other applicable State and federal regulations.
C.
Submission to Board of Public Works. If the Secretary approves an application, the Secretary shall submit the application to the Board of Public Works, together with a written report of:
(1)
The Secretary's approval for State funds;
(2)
If the project also involves federal funds, the necessary approvals for those funds; and
(3)
The State Clearinghouse's review and recommendations under COMAR 14.24.04.

Regulation .05 Priority of Awards.Copy Citation

The priority of applicants to be awarded State grants shall be established in accordance with the comprehensive plan adopted by the Secretary under Human Services Article, §9-204, Annotated Code of Maryland.

Regulation .06 Site Acquisition and Renovation.Copy Citation

A.
Site Acquisition Only. If an applicant proposes to acquire a land site on which to construct a facility, the cost of the land is not eligible for State participation.
B.
Site with Improvements—State Funds Only.
(1)
Subject to §B(2) of this regulation, if an applicant proposes to acquire a site with existing improvements and will not be using any federal funds for site acquisition or renovation, total project costs, including costs applicable to the acquisition of the site and existing improvements, are eligible for State participation.
(2)
At least two State-approved appraisers shall determine the value of the site and existing improvements, and State participation shall be limited to the lesser of:
(a)
The average of the approved appraisals; or
(b)
The actual acquisition cost.
C.
Site with Improvements—State and Federal Funds. If an applicant proposes to acquire a site with existing improvements and will be using both State and federal funds for site acquisition and renovation, at least two State-approved appraisers shall determine the portion of the total cost that is applicable to the land site alone. That portion shall be excluded from State participation.

Regulation .07 Completion of Work.Copy Citation

A.
In General. Except as otherwise provided in this regulation, the recipient of a State grant shall complete all of the work for which the grant was authorized:
(1)
In the manner approved by the Secretary; and
(2)
Within 2 years after receiving the State grant for that work.
B.
Extensions or Changes.
(1)
If the grant recipient is unable to complete the work in the manner or within the time required, it shall promptly notify the Secretary.
(2)
For good cause shown, the Secretary may grant a request for a change in the manner of or time for completing the work.

Regulation .08 Insurance Requirements.Copy Citation

Any fire or extended coverage insurance payments for damages or losses shall be applied first to the State's interest in the project.

Regulation .09 Annual Financial Statement.Copy Citation

A.
Statement Required. For each of the next 30 years after the receipt of a State grant under the Act, the facility for which the grant was made shall submit an annual certified financial statement to the Department.
B.
Contents. The statement shall include, for the year covered:
(1)
All personnel employed and all related salaries, remunerations, retainers, and other expenses;
(2)
All other persons rendering services to the facility under contract or otherwise and all related payments, fees, retainers, and other expenses;
(3)
All other expenses of the facility;
(4)
A schedule of rates and fees charged for services provided by the facility and all income derived from those rates and fees;
(5)
All grants, gifts, or endowments received;
(6)
A statement of the days of service rendered to clients;
(7)
A certified profit and loss statement and balance sheet; and
(8)
Any other supplemental information that the Secretary requires.
C.
Verification. The facility shall make its records available to representatives of the Department and its designated agents, such as the Department of Budget and Management or the Office of Legislative Audits, for verification of its annual statements.

Chapter 02. Audits of Contracts and Grants

Regulation .01 Scope.Copy Citation

A.
In General. This chapter applies to audits required or authorized under State Finance and Procurement Article, §7-404, Annotated Code of Maryland, for private-care contracts, including grants, made by the Department of Juvenile Services.
B.
Additional Examinations. In addition to conducting audits under this chapter, the Secretary may also provide for periodic examinations of the accounts and records of all contractors, including grantees, receiving funds from the Department.

Regulation .02 Periodic Audits Required.Copy Citation

The Secretary shall provide for periodic audits of the accounts and records of all contractors providing care for juveniles.

Regulation .03 Purpose and Scope of Audit.Copy Citation

A.
In General. The audit shall determine whether funds were spent in accordance with the contract.
B.
Expenditures and Revenues. The auditor shall review expenditures and revenues to determine if they are consistent with the approved budget and supported by documentation, in accordance with the contract and generally accepted accounting principles.
C.
Amounts Due. The audit shall establish amounts due to or from the State by comparing budgeted, reported, and audited expenditures to revenues.
D.
Basis of Final Settlement. The audit findings shall be the basis for making a final settlement of the contract.

Regulation .04 By Whom Conducted.Copy Citation

A.
In General. Except as provided in §B of this regulation, the Department's Audit Division shall conduct the audits required by this chapter.
B.
Local Governments.
(1)
Subject to §B(2) of this regulation, the Audit Division need not conduct an audit of contracts with local governments for which audits are conducted in accordance with the federal Single Audit Act, 31 U.S.C. §7501 et seq.
(2)
If audits conducted under the Single Audit Act do not satisfy the requirements of the Department, the Audit Division shall conduct such further auditing as it considers necessary under the circumstances.

Regulation .05 How and When Conducted.Copy Citation

A.
How. The audits shall be conducted in accordance with:
(1)
The terms of the contract; and
(2)
Allowable cost guidelines of the Department.
B.
When. The audits shall be performed at the intervals and in the manner approved and determined by the Secretary.

Regulation .06 Audit of Subcontractor, Subgrantee.Copy Citation

A.
Authority to Audit. The Audit Division may audit a subcontractor, including a subgrantee, when it is in the interest of the State to do so.
B.
Notice to Primary Contractor. If the Department elects to audit a subcontractor, the Department shall inform the primary contractor, in writing, that the primary contractor need not audit that subcontractor as otherwise required by Regulation .10C of this chapter.

Regulation .07 Draft Audit Report.Copy Citation

A.
Issuance. The Audit Division shall conduct an exit conference and issue a draft audit report after the exit conference.
B.
Additional Information. The draft report shall reflect any additional information that:
(1)
The contractor provides at the exit conference or, in accordance with §C of this regulation, after the exit conference; and
(2)
The Audit Division considers relevant.
C.
Postconference Information.
(1)
After the exit conference, the contractor may submit additional information for consideration in the draft report only if the contractor notifies the Audit Division, at or before the exit conference, of its intent to submit this information.
(2)
The additional information shall be submitted by a date mutually agreeable to the Audit Division and the contractor, but not later than 90 days after the exit conference.
D.
Report Final Unless Reconsideration Requested. The draft report becomes final and the amounts found to be payable to or from the State become payable unless the contractor requests reconsideration in accordance with Regulation .08 of this chapter.

Regulation .08 Request for Reconsideration.Copy Citation

A.
When Authorized. The contractor may request a reconsideration of the draft audit report at any time within 30 days of the mailing of the draft report.
B.
How Made. The request for reconsideration shall:
(1)
Be in writing; and
(2)
Specify:
(a)
The amount at issue; and
(b)
The reasons the contractor believes the draft report should not become final.

Regulation .09 Reconsideration by Audit Committee.Copy Citation

A.
In General.
(1)
If a contractor files a timely request under this regulation, the request shall be considered by an audit committee.
(2)
The audit committee shall consist of:
(a)
The Chief of the Audit Division or the Chief's designee;
(b)
The Deputy Secretary for Administration or the Deputy's designee;
(c)
The Assistant Secretary for Departmental Support or the Assistant Secretary's designee; and
(d)
One or more of the other assistant secretaries or their designees.
B.
Modification by Committee. The Audit Review Committee may:
(1)
Modify the draft report as it considers appropriate; and
(2)
Reissue the report in accordance with Regulation .07 of this chapter.
C.
Notice of Final Report.
(1)
If, after reviewing the contractor's original or any subsequent request for reconsideration, the Audit Review Committee finds no basis for considering further appeals, the Committee shall mail a notice of its findings to the contractor.
(2)
The notice shall inform the contractor that:
(a)
Unless appealed within 30 days of the notice's mailing, the audit is final; and
(b)
The contractor may appeal the Committee's decision to the Secretary or to the procurement officer in accordance with the Administrative Procedure Act or the State Procurement Law, as applicable.

Regulation .10 Responsibilities of Contractor.Copy Citation

A.
Disclosure of Records. Each contractor shall provide the Audit Division, during the contractor's regular business hours, full disclosure of all accounting, financial, and other records, as requested from time to time by the Audit Division.
B.
Retention of Records. Each contractor shall retain all accounts and records relating to the contract for a period of 5 years following the close of each fiscal year.
C.
Audit of Subcontractors. Each contractor is responsible for auditing its subcontractors in accordance with this chapter.
D.
Receipts and Expenditures. Each contractor shall maintain detailed accounting records that include all receipts and expenditures of contract funds.
E.
Revenues.
(1)
All revenues received in connection with the contract shall be credited to the contract program and applied to the gross allowable expenditures of the program.
(2)
These revenues include:
(a)
All proceeds from the provision of services, including fee collections and third-party payments;
(b)
All proceeds from the sale of goods, including all goods obtained or manufactured with labor and materials paid for with contract funds; and
(c)
All interest earned on deposited contract funds or proceeds.
(3)
This section does not apply to:
(a)
Undesignated contributions to the contractor; or
(b)
Contributions designated to a specific purpose not contemplated in the contract.