Rescinded Effective July 18, 2011 per FCASMTL 205

The following accounting procedures are necessary for maintenance of the financial relationship between local areas and the Ohio department of job and family services (ODJFS). The procedures in this rule are the guidelines for state and local accountability in the annual and grant closeout of federal and state funds.

(A)Annual closeout for state-funded allocations.

(1)Final quarterly expenditure corrections shall be submitted to ODJFS and uploaded into county finance information system (CFIS) reporting system by the fifteenth day of September each year.

(2)Upon receipt of all final reports, as outlined in this paragraph, ODJFS shall perform a reconciliation for each local area. Each appropriated fund will be reconciled on an individual local area basis.

(3)The annual reconciliation and JFS 02717 "Annual Closeout Agreement and Certification Administrative Fund Reconciliation" (rev. 8/2007) will be generated by ODJFS for each allocation and sent to the workforce development local area no later than the thirtieth day of November.

(a)The local area shall review the annual reconciliation report and return the JFS 02717 no later than the fifteenth day of December.

(b)The local area may submit a written request for extension no later than ten days prior to the original due date of October fifteenth. Request for extensions shall explain the circumstances beyond the control of the WIA area. For good cause, as determined appropriate by ODJFS, JFS 02717 may be submitted no later than November ninth when written approval from ODJFS is obtained prior to the original due date of the agreement.

(c)If the local area fails to submit a signed JFS 02717 within fourteen days after the original due date, by the extension date granted by ODJFS, or submits an incomplete or inadequate report, the annual reconciliation report shall be processed as final.

(4)If the local area agrees with the annual reconciliation report and certifies agreement with annual closeout amount, the local area shall return the JFS 02717 to ODJFS affirming its agreement.

(5)If the local area disagrees with the annual reconciliation report, the local area shall return the JFS 02717 form stating the disagreement, along with supporting documentation to the office of fiscal and monitoring services (OFMS), bureau of county finance and technical assistance (BCFTA).

The fiscal supervisor assigned to the local area shall review the documentation, verify the fiscal amount and submit a report of findings to ODJFS within thirty days of receipt of the information.

(6)If ODJFS records are found to be in error, ODJFS shall correct the error and generate a revised annual reconciliation report and the JFS 02717 within fifteen working days of receipt of the fiscal supervisor's findings. The local area shall return the revised JFS 02717 within fifteen working days and any applicable payment within fifteen days of receipt of the revised agreement.

(7)If the local area records are found to be in error, the local area may request correction of the error only if it results in monies due back to ODJFS. The local area shall return the original reconciliation report, JFS 02717, and applicable payment within fifteen working days of receipt of the fiscal supervisor's findings.

(B)Any excess expenditures identified in the procedures in paragraph (A) of this rule are the responsibility of the local area.

(1)Overpayments and underpayments will be offset and the final exchange of funds for the state fiscal year (SFY) closeout will occur as follows:

(a)The area shall submit one check for any existing overpayment amount no later than the thirtieth of November unless the WIA area disagrees with the annual closeout amount as described in this paragraph. Separate checks for each allocation are not necessary. Failure by the WIA area to remit payment by the thirtieth of November may result in referral to the office of the attorney general for collection proceedings.

(b)ODJFS will redistribute funds to the local area for any underpayment no later than the fifteenth of December. The redistribution process may be dependent upon the timely receipt of funds by local areas with overpayments.

(C)Closeout for federal grants

(1)Federally-funded subgrants will be reconciled quarterly throughout the grant availability period and closed at the end of the grant availability period during the normal quarterly closeout process. ODJFS will enter grant availability dates in the CFIS and ODJFS will notify the local area of the closeout dates of the individual grants.

(a)At the end of the grant availability period, upon receipt of all final quarterly reports, ODJFS will perform a grant reconciliation.

(b)The grant reconciliation report will include:

(i)A list of grants ending.

(ii)The expenditures charged to those grants.

(iii)Whether the grants were overpaid or underpaid.

(iv)The total of all grants for which the local agency was overpaid.

(v)The total of all grants for which the local area was underpaid.

(2)ODJFS will send the grant reconciliation report and closeout agreement to the local area after the end of the grant period noting the following:

(a)The local area shall review the grant reconciliation report and return the signed closeout agreements to ODJFS within fifteen business days of the date of receipt.

(b)If the local area fails to submit the closeout agreement by the required time period or submits an incomplete or inadequate report, the grant reconciliation report will be processed as final.

(3)If the local area disagrees with the grant reconciliation report, the local area shall return the certification form stating its disagreement, along with supporting documentation to BCFTA. The ODJFS fiscal supervisor assigned to the local area will review the documentation, verify the fiscal amount, and submit a report of findings to ODJFS within thirty days of receipt of the information.

(4)If the records of ODJFS are found to be in error, the ODJFS will correct the error and generate a revised annual reconciliation report and closeout agreement within fifteen business days of receipt of the ODJFS fiscal supervisor's findings. The local area shall return the revised closeout agreement within ten business days, and any applicable payment within thirty days, of receipt of the revised agreement. The identification of an error in ODJFS records may result in subsequent adjustments to statewide redistribution and ceiling excess coverage.

(5)If the local area's records are found to be in error, the local agency shall only request correction of the error if it results in monies returned to the state. The local area shall return the original reconciliation report, closeout agreement form, and applicable payment within fifteen business days of receipt of the ODJFS fiscal supervisor's findings.

(D)Any excess expenditures identified in the procedures in paragraph (C) of this rule are the responsibility of the local area.

(1)Overpayments and underpayments will be offset and the final exchange of funds for the SFY closeout will occur as follows:

(a)The local area shall submit one check for any existing overpayment amount unless the local area disagrees with the grant closeout amount as described in this paragraph. Separate checks for each grant are not necessary. Failure by the local area to remit payment may result in referral to the office of the attorney general for collection proceedings.

(b)ODJFS shall be scheduled to distribute funds to the local area for any underpayment. The distribution process may be dependent upon the timely receipt of funds by the local area with overpayments.

(E)Financial, programmatic, statistical, recipient records, and supporting documents shall be retained by the local area for a minimum of three years after ODJFS acceptance of the final closeout expenditure report, or as otherwise provided by any minimum retention requirements specified by applicable state or federal law. If any litigation, claim, negotiation, audit, or other action involving the records has started before the expiration of the three year period, the record shall be retained until the completion of the action and resolution of all issues that arise from it, or until the end of the regular three year period, whichever is later.