N.J. Admin. Code § 12:51-3.5
Current through Register Vol. 56, No. 23, December 2, 2024
Section 12:51-3.5 - Business and financial practices(a) The rehabilitation organization's accounting system will follow the standards established by the Commission on Accreditation of Rehabilitation Facilities and the American Institute of Certified Public Accountants (AICPA) Audit Guide for Audits of Voluntary Health and Welfare Organizations. The accounting system shall be functional and enable the organization to identify clearly the cost of rehabilitation services, production activities, administration, and other expenses of operation.(b) The governing entity and the executive director of not-for-profit organizations shall have an audit conducted which meets the requirements for the Single Audit Act, Federal OMB Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Organizations," as amended and supplemented, incorporated herein by reference. This audit shall be conducted in accordance with generally accepted auditing standards and the AICPA Industry Guide for Voluntary Health and Welfare Organizations and a copy shall be filed with the Division of Vocational Rehabilitation Services each year.(c) A for-profit organization shall provide a written report by an independent auditor in compliance with the terms and conditions of the grant agreement and applicable laws and regulations, within 13 months of the conclusion of the contract, or within 13 months of the end of the fiscal year which includes the grant period. Such a report on compliance can be part of the independent auditor's financial audit, or can be a separate report.(d) Charges for services or products will be based on a knowledge of their cost, including overhead. All long-term contracts should be reviewed regularly to ensure an adequate pricing structure.(e) Where fees are charged for services not paid for by other agencies, the organization will have an established schedule of fees for services. The schedule of fees shall be available in printed form and will be applied fairly and equitably to each person served. Fees will not be divided with other agencies or individuals as consideration for referral of persons to be served.(f) In quoting bids for contract work, an overhead mark-up should be charged. The value of any products or services, equipment or space provided by the contractor for the contract operation may be included in the determination of this mark-up. Bid quotations for program services or work should take into consideration the following: 1. Knowledge of local industry prevailing piece or time rates for comparable work;2. Determination of production norms of the clients;3. Production rate norms established when industry rates are not available; and4. Costs of supplies, equipment peculiar to the work, and of administrative overhead.(g) Selling prices of the organization's manufactured products will be in line with the prevailing price range for such products in the areas in which its products are marketed.(h) Subcontract prices and selling prices of manufactured items and services will be reviewed at least annually to assure that they remain fair and competitive. The organization will not knowingly accept work from companies whose workers are legally on strike at the time they accept it.(i) The organization will pay wage rates commensurate with those paid for similar types and amounts of work of local commercial and industrial establishments maintaining approved labor standards.(j) The organization must comply with all Federal and State wage and hour laws and regulations, and be certified when applicable, by the Wage and Hour Public Contracts Division of the U.S. Department of Labor and by the State of New Jersey. All clients under the age of 18 are required to have working papers issued by the local board of education. The organization will comply with Federal, State and local laws and regulations covering the physical facility, staff, client benefits and will also comply as nearly as practicable with local industrial and/or business practices relating to fringe benefits, including Social Security coverage for all clients so eligible. The community rehabilitation program shall have a risk protecting program adequate to preserve its assets and to compensate its staff, volunteers, clientele, and the public for reasonable claims due to events for which the facility is liable. Evaluation of the needs for insurance and the types of protection offered shall be reviewed annually, or more frequently, if necessary. Insurance or risk coverage will include building(s), equipment, inventory, and malpractice liability, Workers' Compensation, Social Security and bonding of appropriate personnel.(k) Active membership should be maintained in the appropriate State and national professional associations such as the National Rehabilitation Association, the Association for Choices in Community Supports and Employment Services (ACCSES) and their affiliates, the American Rehabilitation Association, the New Jersey Psychiatric Rehabilitation Association, the Association for Persons in Supported Employment, and any other allied health and welfare organizations.(l) All financial records will be made available to authorized representatives of the New Jersey Department of Labor and Workforce Development and the New Jersey Commission for the Blind and Visually Impaired community rehabilitation program staff and will be subject to examination and audit upon satisfactory notice thereof.(m) The organization will file with the Division of Vocational Rehabilitation Services an annual copy of its certified audit and the management letter.(n) The Division of Vocational Rehabilitation Services will suspend payment to any organization that does not keep appropriate records.N.J. Admin. Code § 12:51-3.5
Amended by R.1983 d.600, effective 1/3/1984.
See: 15 N.J.R. 1548(a), 16 N.J.R. 51(b).
Update the regulations to recognize the "shop rate" concept for bidding.
Amended by R.1991 d.604, effective 12/16/1991.
See: 23 N.J.R. 2927(b), 23 N.J.R. 3797(a).
Revised (a)1-5, 12, and 15-19.
Amended by R.1996 d.564, effective 12/16/1996.
See: 28 N.J.R. 4045(a), 28 N.J.R. 5209(a).
Substantially amended section.
Amended by R.2002 d.119, effective 5/6/2002.
See: 33 N.J.R. 4091(a), 34 N.J.R. 1726(a).
Rewrote the section.
Amended by R.2007 d.279, effective 9/4/2007.
See: 39 N.J.R. 1628(a), 39 N.J.R. 3744(a).
In (a), substituted "Commission on Accreditation of Rehabilitation Facilities" for "Rehabilitation Accreditation Commission", and deleted ", as amended and supplemented, incorporated herein by reference" following "Organizations"; in (j), deleted "and" following "equipment," and inserted ", and" following "inventory"; and in ( l), inserted "and Workforce Development".