EXHIBIT C- DYS ACCOUNTING REQUIREMENTS.PDF - CDHSCP Solicitation Request Documents - 8_25_2026 - 67661102 - - 163907.00.pdf
PDF 183 KB Posted
- Attached to
- RFP for JD22 Fiscal Agent
- Solicitation number
- RFP IKAA 2027000040 1
- Issued by
- Pueblo County, Colorado
About this file
This document is an Exhibit C containing accounting requirements established by the Colorado Division of Youth Services (DYS) for independent contractors providing services under state contracts. The requirements establish minimum financial management standards to ensure contractors maintain viable operations and provide adequate financial oversight. Contractors must implement a double-entry accounting system compliant with generally accepted accounting principles (GAAP), with all expenses posted to this system and billings reconcilable to accounting records. Contractors are required to submit bills in DYS-approved formats at least monthly, with bills returned if they do not conform to requirements or lack adequate supporting documentation. Contractors must maintain adequate timekeeping and cost allocation systems to assign salary and indirect costs to appropriate cost centers.
Contractors receiving $400,000 or more in state funds must obtain annual independent audits of financial statements (Income Statement, Balance Sheet, and Statement of Cash Flows) completed within six months of fiscal year end, with supplemental statements providing detailed expenditure information specific to the DYS contract. Subsidiary contractors must submit separate financial statements for each facility or program serving DYS, reconciled to consolidated parent organization statements. Audit deficiencies require submission of a corrective action plan within four months. DYS may withhold payments if contractors fail to submit audits or disclose financial information timely. Budget changes exceeding 10% between line items require prior written DYS approval, while additions or deletions of line items require formal contract amendment approval. Contractors receiving federal funds must comply with all applicable federal accounting, audit, reporting, and financial management requirements. All contractor financial records are subject to inspection and audit by authorized state representatives at reasonable times, and failure to comply with these requirements constitutes grounds for contract cancellation.
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Text version
Exhibit C
DYS Accounting Requirements
DIVISION OF YOUTH SERVICES
ACCOUNTING REQUIREMENTS FOR INDEPENDENT CONTRACTORS
The purpose of these requirements is to provide minimum assurance the Contractor has adequate accounting and budgeting information available to allow management to maintain a financially viable enterprise.
1) The Contractor must have in place a double entry accounting system, which complies with generally accepted accounting principles (GAAP). All expenses must be posted to the double entry accounting system.
Billings for services must be reconcilable to the double entry accounting system. The vendor must have adequate time keeping and cost allocation systems to allocate salary cost and indirect cost to appropriate cost centers.
2) All billing by the Contractor must be in a format approved by the Division of Youth Services (DYS).
The Contractor must provide all supporting documentation requested by the Division of Youth Services.
Contractors must bill DYS at least once a month. Contractors may bill up to twice a month. Bills will be returned unpaid if the bills do not conform to the approved format or the documentation is inadequate.
3) The Contractor must have an annual audit of their financial statements (Income Statement, Balance Sheet, and Statement of Cash Flows) by an independent public accounting firm if the Contractor receives
$400,000 dollars or more of state funds. If the Contractor is a government agency that has an independent audit done by another agency of that government, their regular audit meets this requirement. The audit must be completed and a copy provided to DYS Program Services within six (6) months after the end of the
Contractor’s fiscal year. The audited financial statements must contain supplemental statements providing detailed financial information for the expenditures of this contract. Contractors that are a subsidiary of a parent organization must submit separate financial statements for the subsidiary that detail each of the
Contractor's facilities and/or programs that provide services for the Division and also must reconcile with the consolidated statements of the parent organization. In cases where audit deficiencies are noted, a plan of corrective action shall be submitted to DYS for approval within four (4) months of the date of the audit.
4) If the Contractor does not submit their annual audit or refuse to disclose financial information regarding the operation of the program in a timely manner, DYS may withhold payment until the audit and/or requested information is submitted.
5) If the contract contains a line item budget, any changes greater than 10% between budget categories must have prior written approval from the appropriate DYS Administrator. Any changes that delete or add line items to the budget must have prior written approval from the appropriate DYS Administrator.
This type of change may require a formal written contract amendment. If the contract includes any
Federal funds, any changes to the approved budget must meet all of the additional requirements specified in the Federal grant.
6) If the Contractor is a sub recipient of federal funds, the Contractor is responsible for complying with all appropriate federal requirements for an adequate accounting system, audits, reporting and financial management. In cases where audit deficiencies are noted, a plan of corrective action shall be submitted to
DYS for approval within four (4) months of the date of the audit.
7) Failure to comply with any of these requirements is justification for DYS to cancel the contract.
8) The Contractor’s financial records shall be open for inspection and audit at reasonable times by an authorized representative of the State. The Contractor must allow the State complete access to all-financial and accounting records pertaining to the operation of the Contractor's program. This shall include but not be limited to inspection of the Contractor's accounting information system and any records related to the
Contractor's accounting information system.
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