Ohio Administrative Code
Title 5122 - Department of Mental Health and Addiction Services
Chapter 5122-9 - Management of Funds
Section 5122-9-10 - Management and control of internal funds
Universal Citation: OH Admin Code 5122-9-10
Current through all regulations passed and filed through September 16, 2024
(A) The purpose of this rule is to establish policy for management and control of the internal funds at each Ohio department of mental health and addiction services regional psychiatric hospital (RPH) business office, to establish books and accounts for each fund in a standardized and uniform manner, and to install a system of internal controls to ensure the safe guarding of assets.
(B) The provisions of this rule are applicable to all RPHs. Further, the provisions of this rule apply to all internal funds now on hand or which may be established in the future at the RPH. Should any conflict arise between the provisions of this rule and the provisions of rules 5122-2-03, 5122-1-28, and 5122-1-29 of the Administrative Code, the provisions of the latter rules will apply.
(C) The following definitions apply to this rule in addition to or in place of those appearing in rule 5122-1-01 of the Administrative Code:
(1) "Cash journal" means
a printed form (DMH-FIS-053), usually bound in a post binder, suitable for
maintaining a daily record of money received and spent, and a stated balance of
assets. The use of any other form, paper or electronic,
is to be approved by the office of fiscal
administration and support.
(2)
"Patients' funds account" means
the
internal fund established under the authority of section
5119.56
of the Revised Code for the purpose of receiving
and holding in
trust
those monies in the possession of patients on admission to a regional
psychiatric hospital or received for them during the course of their residence
at a RPH that may be disbursed for their benefit.
There are specific earmarked portions within this fund called patients' funds
account, patients' representative payee account, commissary fund, and savings
fund.
(3) "Commissary cash journal"
means a printed form, usually bound in a post-binder, used for maintaining a
daily record of money received and spent, the balance of assets, and special
columns in which to detail the exact nature of receipts and disbursements,
as well as
the retail value of merchandise bought for resale.
(4) "Internal funds" means those funds that
are maintained and controlled by the managing officers at the hospital. Such
funds may include, but are not limited to, the
following:
(a) Patients' funds accountpursuant to
section
5119.56
of the Revised Code;
(b) Commissary
fundpursuant
to rule
5122-1-29
of the Administrative Code;
(c)
General revenue fund, perpursuant to Chapter 131.
of the Revised Code;
(d) Industrial
and entertainment fundpursuant to
rule 5122-1-28 of the Administrative Code;
(e) Petty cash fundpursuant to
division (A)(6) of section
126.21
of the Revised Code; and
(f) Any
other fund that may be established.
(5) "Pre-numbered receipts" means a multiple
part form used for recording a sum of money from an organization or individual
for credit to a specific account to which the money will be deposited. The
forms are
to be sequentially prenumbered, and will have
captions to describe from where the money came, the amount received in both
alphabetic and numerical form, and the signature of an employee of the hospital
who has been authorized by the managing officer to receive and deposit
funds.
(6) "Rotary change fund"
means a fixed sum of cash for the purpose of making small disbursements from
any of the internal funds where cash is appropriate or required, and for
tendering change to patrons in the conduct of the commissary sales activity. A
change fund drawer or cash box is to contain the total of the fixed amount at all
times, such total to be comprised of cash, paid invoices, or any combination of
the two. The cash journal will be posted only when checks are drawn to
replenish the change fund. All change funds or modifications
are to
have the prior approval of the chief of fiscal administration.
(7) "Subsidiary ledger" means a special
section of a cash journal by which to account for a portion of an internal fund
that has been designated for a specific purpose, the balance of which
is to be
included in the total assets of the fund.
(8) "Voucher" means a printed form used for
each internal fund to identify the purpose and amount of a disbursement and
provide an authorization for payment by the managing officer or
the managing
officer's designee. It is to be supported by an invoice or invoices and other
related documents, such as patient roster, receiving reports, freight bill,
etc., to assure accuracy, completeness, and validity.
(D) Procedure
(1) Pre-numbered
receipts will be used as the source document to record all
income in
each internal fund.
(2) Cash
withdrawal form DMH-CA-001will be the
source document to authorize all disbursements from the patients' fund
account.
(3) Cash receipts
will be
deposited intact on a timely basis in a bank checking account, but in no instance later
than every Friday, allowing a minimum to remain on hospital grounds over a
weekend. The deposit amount will be posted in the checkbook from the certified
amount listed on the bank deposit ticket.
(a)
All monies accruing to a fund in excess of current needs should be invested in
interest-bearing accounts. This does not apply to patients' fund account where
savings may be established only in the name of individual patients. Savings
accounts may be established in commissary funds only to the extent of
anticipated or projected needs for repairs, remodeling, or replacement of
equipment.
(b) A cash journal
will be
established for each fund in which to record daily all receipts and
disbursements. A special cash journal will be
established for commissaries. Subsidiary ledgers may be established within the
cash journals of certain funds as necessary.
(c) All disbursements from internal funds
will be
by check. Cash requirements will be met through the use of a rotary change fund
which is reimbursed by check. The bank signature cards
are to
be updated as needed and maintained in a current status.
(d) Disbursements from internal funds
will be
controlled and documented by a voucher system. Disbursements made for supplies,
clothing, or equipment are to be
supported by a receiving report prior to payment. Disbursements made for the
entertainment of patients will be documented by a verified roster of the
patients served.
(E) To the extent possible, there is to be a division of responsibility between the cash receiving and cash disbursing functions. These duties should be divided into two positions. The first will receive all income and deposit it intact into the appropriate account. The second will tender all cash pay outs and prepare checks. This separation should reduce the possibility of records being manipulated for personal gain.
(F) Daily procedures for maintaining funds
(1) Post the total sum of cash receipts to
the cash journal of each fund.
(2)
Post all disbursements to the cash journal as checks are drawn.
(3) The patients' fund receipts and
disbursements will be posted on-line to the patient accounting
system. At the conclusion of the business day, the daily posting journal and
daily balance reports will be printed
and maintained in accordance with the department's retention schedule. The
patients' fund daily reconciliation form is to be
completed verifying liabilities (amount due patients) agree with the assets of
the fund.
(G) Procedures to be completed monthly
(1) Foot the receipts and disbursements
columns of all cash journals, reconcile the amounts shown in the balance
columns, and balance these sums to the total cash on hand and in the bank for
each fund.
(2) When all funds have
been balanced to the bank statement, a monthly report of cash book balances and
bank reconciliations will be forwarded to the internal audit
group.
Disclaimer: These regulations may not be the most recent version. Ohio may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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