Library: Policy

340:110-5-7. Finances

Revised 11-1-20

(a) Evidence of sufficient funds.The child-placing agency (agency) has evidence of sufficient funds.

(1) New agencies submit a letter to Licensing from a licensed public accountant with the initial request for license documenting procedures are in place for operating the fiscal management system so the agency's financial statements can be audited at the first fiscal operational year end.

(2) New agencies also submit a budget for the first 12 months of operation with the initial request for license including a written plan documenting predictable funds for the first 12 months of operation as well as reserve funds or reserve funds documentation.

(3) Existing and new agencies have a written financial plan projecting sufficient funds to carry out the program's defined purposes and provide proper care for children.

(b) Fiscal responsibility.The agency executive director is responsible for:

(1) maintaining complete financial records of all income and disbursements; and

(2) ensuring the individual responsible for receiving cash funds is bonded.

(c) Accountability.The agency demonstrates financial accountability.

(1) The agency's' financial records are audited:

(A) by a certified public accountant who is not agency personnel or a board member; or

(B) per the governmental funding source.

(2) When completed a copy of the auditor's letter:

(A) is submitted to Licensing; and

(B) includes a statement that the agency's financial records accurately reflect the financial operations, per generally accepted accounting principles.

(d) Insurance.The agency is covered by property casualty insurance and liability insurance unless operated by a government entity that is self-insured, per Section 404.3 of Title 10 of the Oklahoma Statutes (10 O.S. § 404.3). 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 child‑placing agency, and made available to Licensing.