Miss. Code. tit. 18, pt. 15, ch. 1, r. 18-15-1-1, ATTACHMENT, att. COMPLIANCE MONITORING
Statutory Reference 2605(b)(10)
Division of Monitoring (DPI)
MONITORING
The Mississippi Department of Human Services (MDHS) is required to monitor the activities of its subgrantees by following the Single Audit Act Amendments of 1996, the Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and the OMB Circular A-133 Compliance Supplement. MDHS shall monitor each project, program, subgrant, function, or activity supported by a Federal award to assure compliance with applicable Federal regulations and that performance goals are achieved.
POLICY
MDHS has established uniform monitoring policies designed to ensure that all subgrants under the jurisdiction of MDHS are administered in compliance with Federal requirements and with the terms of the subgrant agreements. Monitoring subgrants, for compliance with the applicable Federal regulations, State laws, Agency policies, and the terms of the subgrant agreements, is the responsibility of the MDHS Division of Monitoring.
Subgrant monitoring procedures may include several of the various options available. These options include: reviewing reports submitted by the subgrantee; reviewing documentation supporting expenses reported under MDHS subgrants; reviewing the subgrantee ' s single audit or program-specific audit results and evaluating audit findings and the subgrantee ' s corrective action plan; performing on-site reviews of fiscal and programmatic records and observing subgrantee operations; and/or, arranging for limited scope audits of specific compliance areas.
Planning Considerations
When determining the extent of monitoring procedures to perform, MDHS will consider factors such as the amount of the subgrant, the percentage of a Federal program ' s total funds awarded to subgrantees, and the complexity of the compliance requirements. To determine the appropriateness of monitoring procedures, MDHS will consider the cost-effectiveness of monitoring procedures compared to the relative size and complexity of the Federal awards administered by the subgrantee. The following factors will also be considered when determining the monitoring procedures to be performed to ensure compliance with the Federal regulations, State laws, Agency policies and procedures, and the terms of the subgrant agreement:
Monitoring Procedures
Subgrants may be monitored by reviewing reports submitted by the subgrantee for compliance with the subgrant agreement and program instructions. For example, the monthly reporting worksheets may be reviewed for accuracy and completeness or the quarterly programmatic report may be reviewed to ensure that each element of the Scope of Services is being met.
Subgrants may be monitored by performing a desk review of supporting documentation for expenditures reported under the subgrant. This review consists of contacting the subgrantee and requesting documents to support certain amounts included on the subgrantee ' s reporting worksheets. These documents will be examined by the monitors to determine compliance with the subgrant agreement and with State and Federal regulations. The results of the desk review will be communicated in a written report to the subgrantee and to the MDHS Funding Division.
Desk reviews may be conducted at any time by staff of the MDHS, Division of Monitoring. The desk review procedure may be used in lieu of or in conjunction with an on-site fiscal review or as a follow-up to an on-site fiscal review to ensure that corrective actions have been implemented.
Fiscal monitoring through a desk review will include, at a minimum, a review of all documents to support all expenses reported for one month of the subgrant period. Documents shall be reviewed to support costs reported on the reporting worksheet submitted for the month in which the highest dollar amount of expenses was reported as of the date that the schedule letter was prepared to begin the desk review and request support documents.
When fiscal monitoring is initiated through a desk review and sufficient documents are not provided by the subgrantee/contractor to support costs reported on the reporting worksheet, the desk review shall cease, and fiscal monitoring shall be completed through an on-site review.
Fiscal monitoring shall not be performed through a desk review on the first subgrant awarded to a subgrantee. In addition, monitoring through a desk review shall be alternated with on-site reviews so that on-site fiscal monitoring is performed at least every other year.
Monitoring for programmatic compliance cannot be performed through a desk review.
Subgrantees that expend $500,000.00 or more of Federal financial assistance during the subgrantee ' s fiscal year shall have an audit performed by an independent Certified Public Accountant in accordance with the Single Audit Act and OMB Circular A-133. As a part of MDHS ' monitoring of each of its subgrants, these independent auditor ' s reports shall be obtained from the subgrantees and reviewed for compliance with Federal regulations.
Any audit findings identified in the independent auditor ' s reports, as well as the subgrantees proposed corrective action plans, shall be evaluated by the MDHS Funding Divisions. If the subgrantee ' s corrective action plan is acceptable, a management decision will be issued by the MDHS Funding Division to resolve the audit findings. The MDHS Division of Monitoring will follow-up on the subgrantee ' s corrective action plan during the next on-site fiscal review that is conducted.
On-site reviews for program compliance are required to be conducted at least once during the subgrant period for every MDHS subgrant. On-site reviews for program compliance may be performed on any subgrant at any time and may be repeated as often as deemed necessary by MDHS. These reviews for program compliance will be conducted by the MDHS Division of Monitoring.
The on-site programmatic reviews are formal in nature and are normally preceded by written notification to the subgrantee and to the appropriate MDHS Funding Division Directors. However, unannounced on-site programmatic reviews may also be conducted. On-site entrance and exit conferences will be conducted with subgrantee officials and a written report will be issued communicating the results of the review to the subgrantee and to the MDHS Funding Divisions. The Agency shall follow-up on the subgrantee ' s corrective action plan for any programmatic monitoring findings.
On-site reviews for fiscal compliance will be conducted by the Division of Monitoring, as provided under this section. These visits may also be conducted at the request of the MDHS Executive Director or the MDHS Funding Division Director.
These reviews are formal in nature and are normally preceded by written notification to the subgrantee. The appropriate Funding Division Directors shall also receive written notification of on-site fiscal reviews. However, unannounced on-site fiscal reviews may also be conducted. On-site entrance conferences will be conducted with subgrantee officials. Exit conferences will be conducted and a written report will be issued communicating the results of the review to the subgrantee and to the MDHS Funding Divisions. MDHS shall follow-up on the subgrantee ' s corrective action plan for any fiscal monitoring findings.
The Agency may engage an independent Certified Public Accountant to perform a Limited Scope Audit of certain MDHS subgrants. The need for this type of review shall be determined on an individual basis and shall be documented by the Division of Monitoring. The results of this review shall be communicated to the subgrantee and to the MDHS Funding Divisions in a written report.
Corrective Action Process
The Initial Report of Findings and Recommendations that is forwarded to the subgrantee and to the MDHS funding division shall require a written response from the subgrantee within fifteen (15) working days. Upon receipt of the response from the subgrantee, the Director of the Division of Monitoring and other appropriate staff shall assess each response for adequacy. If all responses are adequate, a letter will be issued to the subgrantee clearing all findings. If any responses do not adequately address the findings, the subgrantee will be notified in writing by the issuance of a Status Report acceptable to MDHS requiring a second response from the subgrantee within ten (10) working days.
If the subgrantee fails to satisfactorily resolve all of the monitoring findings, the Division of Monitoring will issue a Final Notice Letter to the subgrantee demanding that the subgrantee refund the amount of questioned costs and advising the subgrantee of the procedures to follow if they wish to request an administrative hearing with the MDHS Executive Director.
If the subgrantee does not respond to the Final Notice Letter, the subgrantee will be referred to the State of Mississippi Office of the Attorney General to recover the unresolved questioned costs, and the Agency may begin procedures for debarment and suspension against the subgrantee organization and the subgrantee authorized official.
Discovery of Possible Fraud, Mismanagement, or Program Abuse
In the event indications of possible fraud, mismanagement, or program abuse are discovered during the course of monitoring subgrants, the Director of the Division of Monitoring shall notify the Chief Compliance Officer, who shall notify the MDHS Inspector General. The MDHS Inspector General and appropriate personnel will decide the course of action to be taken, including the degree of disclosure to subgrantee personnel and to the MDHS Funding Divisions. The format for reporting such incidents will be determined by the Chief Compliance Officer and/or the MDHS Inspector General.
Division of Community Services (DCS)
Statutory Reference 2605(b)(10)
TRAINING AND TECHNICAL ASSISTANCE (T&TA)
DCS staff uses several tools and checklists to conduct an overall comprehensive review of the agencies' operations. Throughout both the programmatic and fiscal review process there should be ongoing, open communication with the staff to facilitate clarification of facts and prevent misunderstandings, provide the reviewer with a full understanding of the agencies' operations, and provide the agency with a full understanding of the review process.
Preliminary areas of noncompliance should be summarized and discussed with the Executive Director and/or designated staff during the exit conference. Copies of specific documents, supporting schedules, and reports obtained during the site visit to facilitate preparation of the report should be discussed during the exit conference. The agency is given the opportunity to provide comments and present additional information or explanation regarding a specific finding before it is included in the report.
The report should include specific timelines for any required corrective action associated with each finding. Copies of the report should be mailed to agency's Board and the agency's Executive Director. A copy should also be provided to the DCS Program Director and Compliance Officer.
The agency is required to respond in writing to each of the findings and observations mentioned in the report, including a detailed plan for taking corrective actions and implementing required changes. The initial response is due within 30 days from the date of the report. The agency's plan for resolution and corrective action will be reviewed by Compliance Team to ensure that all findings have been adequately addressed.
In the event an agency is unable or unwilling to correct a specified area of noncompliance within the prescribed timeline, DCS will report the deficiency to MDHS-Inspector General. If MDHS determines that the agency remains noncompliance in a specified area, DCS may contact DHHS to initiate proceedings to terminate the organization's designation as a Community Action Agency.
Division of Community Services (DCS)
Statutory Reference 2605(b)(10)
FEDERAL (SINGLE) AUDIT MANAGEMENT LETTER
BOARD POLICY
MISSISSIPPI DEPARTMENT OF HUMAN SERVICES DIVISION OF COMMUNITY
SERVICES
BOARD POLICY
FOR
COMMUNITY SERVICES BLOCK GRANT ELIGIBLE ENTITIES
The Community Services Block Grant (CSBG) Reauthorization Act of 1998 requires that, as a condition of designation and to receive CSBG funding, private non-profit entities and public organizations administer the CSBG program through tripartite boards that "fully participate in the development, planning, implementation, and evaluation of the program to serve low-income communities." In order for the State to promote the continued viability and effectiveness of eligible entities through appropriately constituted and well-functioning boards, this policy is issued to provide guidance on the composition, role, and responsibilities of the tripartite board.
Board Composition
The eligible entity's board of directors should consist of a minimum of six (6) members and a maximum of three times the number of counties an entity has in its service area (with the exception of agencies with one county). Each county must be equally represented with members from each sector as described below.
Representatives of Low-Income Individuals and Families (Low-Income Sector)
The CSBG statute requires that a minimum of one-third of tripartite board membership be:
Elected Public Officials or their Representatives (Public Sector)
The CSBG statute requires one-third of tripartite membership be elected officials. If a sufficient number of elected officials is not available, an appointed public official may be chosen. The elected official may choose a designee to act on his/her behalf. The designee would then be the board member and have full authority to exercise voting rights.
Entities are not restricted to choosing certain elected officials to serve on the board. These members should support the goal of the agency to address the poverty needs of the community and coordinate action by local governments. If an entity's bylaws state only certain elected officials can serve, the State strongly suggests a revision of the bylaws.
Public officials must be "holding office on the date of selection." Also, the public official or designee may serve on the board only while the public official is in office. The public official may change a designee at any time by submitting a letter to the board. Entities are responsible for ensuring this sector remains current such as prompt notification of newly elected officials or currently elected officials of the opportunity to serve on the board should the entity still choose. The entity must ensure timely replacement of board members who no longer hold office and ensure the last day of office for the public official is the last day of service on the board.
Representatives of Major Groups and Interests in the Community (Private Sector)
The remaining board members must be selected from "business, industry, labor, religious, law enforcement, education, or other major groups and interests in the community served." Members of this sector are included because they represent the balance of the community, and the entity cannot succeed without the support, resources, and participation of this group.
Eligible entities must ensure that no organization, business, or group has an indefinite seat on the board, meaning the selection of board members shall allow the opportunity for other interested organizations to serve on the board. Anyone chosen in this sector must be a member of the organization or an employee and live in that county.
Background Checks
Background checks must be conducted on all Board Members. If the background check identifies a past or present conviction for a felony or crime (either federal or state) the individual may not be seated on the board.
Duration of Service
The state requires a board member to serve no more than a maximum of three (3) four-year terms.
This requirement is not retroactive, meaning, board members whose terms expired prior to this policy revision cannot serve the additional term granted by this policy revision.
The board member must be re-elected or re-appointed at least one month before the end of each four-year term. The terms may be continuous or there may be a break in service. Eligible entities are encouraged to stagger the term expirations, whereas not to create an issue of too many board members leaving the board at the same time thus jeopardizing the governance of the board.
Should a board seat become vacant, it must be filled within a sixty (60) day period, unless a written request for waiver has been granted by DCS Director, within the sixty day period. Further, it is the responsibility of the board to notify DCS in writing within ten (10) days of any board changes, and an updated board roster submitted.
The entity shall provide DCS with a current board roster with supporting documentation of each member's election or appointment. This information must also be kept on file at the entity's main office for review during monitoring visits.
Entities may not seat a former employee as a board member for a period of two (2) years after leaving employment at the agency. Agencies may prohibit a former employee who has been terminated from serving on the board. Entities should prohibit federal/state employees from serving on the board if there is the potential for a conflict of interest between the federal/state office and the entity's business transactions, such as a potential funding source.
Entities may not employ a board member during the time of service on the board, nor for a period of two (2) years after leaving the board. This waiting period is to avoid the appearance of a board member having an undue employment advantage.
Training Requirements
New board members or members who had a one (1) year or more break in service shall participate in an orientation within two (2) months of being seated. The orientation shall include at a minimum: federal, state, local policies and procedures as it relates to the entity and its programs; board bylaws; articles of incorporation; entity mission; entity strategic plan; entity financial and programmatic reports; program overview to include sources of funding; audit report; board responsibilities and liability; conflict of interest; and ROMA.
Board members shall participate in training at least every two (2) years on board responsibilities and governance as specified in the CSBG Organizational Standards.
Training and/or orientation may be done at board meetings, special sessions, and may be done in person, electronic media, or other methods as determined by the board.
Should an entity fail to comply with training requirements, DCS will declare entity at-risk, and issue a request for a corrective action plan, which may result in a notice to terminate funding.
Board Member Responsibilities
The following list of responsibilities is necessary for the success of the entity, however, it is not all inclusive of what is expected of a board member:
Fully participate in the development, planning, implementation, and evaluation of the entity's programs.
Plan and participate in the entity's fund-raising events.
Develop entity mission statement and ensure activities and programs support it.
Develop entity strategic plan and receive periodic reports regarding the progress of it. Establish policy for the entity.
Supervise and evaluate one employee, the entity's executive director. Attend and participate in all scheduled board meetings.
Empower the entity by working with the community and being an ambassador for the entity and its programs.
Participate in scheduled trainings and entity events.
Board Committees
Entities are required to appoint at least five (5) standing committees:
* The Executive Committee is responsible for the general conduct of the board's business on a day-to-day basis. The major functions of this committee are: to act upon matters in a timely manner; establish standing and subcommittees, and assign members to each; review the major administrative policies and recommend modifications to the full Board; secure adequate legal counsel for the entity; and to evaluate the entity's executive director.
* The Planning and Evaluation Committee is responsible for the development of the strategic plan and the evaluation of the entity's performance on meeting the goals in the strategic plan. The duties of this committee include: ensure the community strengths and needs assessment is completed; review and approve programs to be operated by the entity; develop internal reporting standards for programs; recommend funding of specific programs to the full board; evaluate each program or project on a timely basis; and coordinate efforts of the public and private sectors and other committees to meet the needs of the families served.
* The Finance Committee oversees the fiscal functions of the agency. This committee reviews budget proposals prepared by the entity staff; reviews financial reports on a monthly basis; ensures an adequate fiscal management system is in place; assists in securing additional sources of funding; and review and make recommendations to the full Board on all fiscal matters.
* The Personnel Committee is responsible for overseeing personnel functions and certain administrative functions of the entity. The duties of this committee include the review of personnel policies; promotions; salary ranges; hiring of employees recommended by the Executive Director; assist in the selection process when employing an Executive Director; and promote staff and career development programs for entity staff.
* The Human Rights Committee acts on matters regarding the rights of employees. Listening, hearing, fact-finding and providing objective judgements are the core functions of this committee. Other functions include ensuring protection of the entity and the rights of employees as established in the agency's Equal Opportunity Plan and recommending approval or denial of it to the Board; hearing equal opportunity complaints and recommending possible solutions to the Board; and ensuring due process prior to the termination of an employee.
Entities may appoint as many committees as needed to carry out the responsibilities of the board effectively. Committee membership should reflect the composition of the Board, i.e. a committee should be comprised of members from different sectors, counties, etc. Committees should divide the workload of the board, develop and promote the expertise of members, and permit decision-making between meetings. Entities should have a board development plan to ensure quality membership selection.
Voting by proxy is not permitted at board or committee meetings.
Removal of Board Members and Officers
Entities must develop removal provisions in its bylaws, consistent with state nonprofit corporation law, which specifies special notice and other procedural requirements for removal. The board may remove any director or officer for cause, including but not limited to: false certifications on the application, unexcused absences for a certain number of consecutive board meetings, failure to comply with the entity's conflict of interest policy, taking actions not in the best interest of the entity, incapacity, inappropriate conduct.
In instances of waste, fraud, or abuse, a board member must be removed immediately after it is discovered.
If any Board Member has been removed from the private or public sector or was not re-elected for the poor sector, they cannot serve in a different sector (i.e. no moving from one sector to another is allowed.)
By-Laws Requirements
Board by-laws shall list the total number of seats on the board per sector. They must include procedures for the selection of new board members in case of a vacancy for any reason. All vacancies shall be filled within 60 calendar days. The democratic selection procedure for the low-income sector must be described in detail.
Board by-laws must describe any performance standards (such as attendance, etc.). These standards must include a standard of conduct which specify expectations and conditions under which board members may be sanctioned or removed.
Board by-laws must describe quorum requirements, which shall be at least 50 percent plus one of the seats on the board.
Board by-laws must describe meeting requirements. Board meetings are subject to the State Open Meetings Act. The board shall meet monthly. Board meetings must be scheduled for the convenience of its members and the general public. Eligible entities shall provide notice in writing of any board meetings and agenda to all members at least 5 calendar days in advance. Electronic notices are acceptable, is members receiving the notices have agreed to accept this form of notification. Meeting notices and agendas shall be made available to the general public and MDHS/DCS at the time they are submitted to the board members.
By-laws must not conflict with any federal or MDHS policies or procedures.
Board Minutes
The board shall conduct meetings and keep written minutes in accordance with Robert's Rule of Order. Board minutes shall be made available to the public upon request. Minutes shall also be made available upon request in a translation of the appropriate language where a significant portion of the low-income population does not speak English.
Copies of the minutes of each meeting shall be submitted to MDHS/DCS no later than 10 calendar days after the date of the meeting in which the minutes were ratified. If the meeting did not have a quorum, the minutes shall be submitted within 3 calendar days of the meeting.
Board minutes must include a public notice of the meeting (newspaper notice, etc.), an agenda, sign-in sheets, and supporting documentation of newly seated board members. In case of any virtual or phone meetings, a virtual attendance document shall be sent to each individual who participated in the meeting and sent back signed and dated. Board minutes must be submitted on agency letterhead.
Miss. Code. tit. 18, pt. 15, ch. 1, r. 18-15-1-1, ATTACHMENT, att. COMPLIANCE MONITORING