Current through Reg. 50, No. 13; March 28, 2025
All contracts must be monitored for compliance.
(1) Construction contracts. The monitoring
activities for all construction contracts must include performing desk reviews
of invoices and reports and conducting on-site reviews.
(2) Certain professional services contracts.
The monitoring activities for all professional services contracts for
architects, engineers, and land surveyors must include periodic reviews of work
product.
(3) Interagency and
interlocal contracts. The monitoring activities for all interagency and
interlocal contracts must include performing desk reviews of invoices and
reports; evaluating the contractor's performance upon completion of the
contract; and, if appropriate, requiring prior approvals for
expenditures.
(4) Certain contracts
for goods and non-consumer services. The monitoring activities for all
contracts for goods and non-consumer services that do not exceed $25,000 must
include performing desk reviews of invoices and reports.
(5) Performance contracts.
(A) To determine necessary financial
monitoring activities:
(i) staff must assess
each local authority's financial risk through ratio analysis of the authority's
liquidity, ongoing operations, and capital structure, which is based on annual
and quarterly financial information submitted by the authority; and
(ii) staff must conduct a desk review of each
local authority's annual audit to determine audit quality and to identify
findings and questioned costs. Staff must ensure that a local authority submits
a corrective actin plan that addresses all findings and questioned
costs.
(B) To determine
necessary performance monitoring activities staff must conduct a review of each
local authority's performance reports and assess the authority's performance
risk by analyzing data regarding at least the following information:
(i) the local authority's ability to provide
services to the required (or target) number of consumers;
(ii) the local authority's performance
outcomes (e.g., state hospital bed-day usage);
(iii) allegations and confirmations of abuse,
neglect, and exploitation at the local authority; and
(iv) number and type of complaints about the
local authority.
(C)
Financial and performance monitoring activities of performance contracts shall
be in proportion to the risk assessed in accordance with subparagraphs (5)(A)
and (5)(B) of this paragraph. Monitoring activities include:
(i) regular or periodic communication between
TDMHMR staff and local authority staff;
(ii) regular or periodic reviews of detailed
reports required to be submitted by the local authority;
(iii) providing training or technical
assistance; and
(iv) conducting
on-site reviews.
(6) All other contracts. Contract monitoring
requirements for all contracts not described in paragraphs (1)-(5) of this
section are as follows.
(A) Contract
monitoring levels and examples of monitoring activities are as follows:
(i) Level I - TDMHMR performs desk reviews of
invoices and reports, and evaluates the contractor's performance upon
completion of the contract.
(ii)
Level II - TDMHMR performs desk reviews of invoices and reports; requires prior
approvals for services and/or expenditures; and evaluates the contractor's
performance every six months or upon completion of the contract if the term is
less than one year.
(iii) Level III
- TDMHMR performs desk reviews of invoices and reports; requires prior
approvals for services and/or expenditures; conducts on-site reviews to ensure
specific performance and service levels (as defined in the contract) are met;
and evaluates the contractor's performance quarterly and upon completion of the
contract.
(B) Each
contract must be assigned a monitoring level based on staff's risk assessment
of the contract. Risk assessment factors must include at least the following:
(i) licensing or regulatory oversight of the
contractor;
(ii) geographic
dispersion;
(iv) number of consumers to
be served;
(v) service mix and
complexity of service or complexity of specifications;
(vi) degree of competition;
(vii) historical performance of contractor;
and
(viii) the contract
amount.
(C) TDMHMR shall
monitor contracts at the level that corresponds with the assigned risk
assessment.
(7) Consumer
services contracts. In addition to the monitoring requirements and activities
described in paragraph (6) of this section, for consumer services contracts
TDMHMR must evaluate:
(A) the safety of the
environment in which services are provided;
(B) the contractor's compliance with the
contract, including the clearly defined performance expectations (as referenced
in §417.56(b)(1) of this title (relating to Provisions for All
Contracts)); and
(C) satisfaction
of consumers and family members with services provided.
