Common use of Fiscal Control Clause in Contracts

Fiscal Control. a. The LHD shall comply with the Local Government Budget and Fiscal Control Act, North Carolina General Statute Chapter 159, Article 3. 1. The LHD shall maintain a purchasing and procurement system in accordance with generally accepted accounting practices and procedures set forth by the Local Government Commission. b. The LHD shall execute written agreements with all parties who invoice the LHD for payment for the provision of services to patients. Exceptions may be permitted in cases where the patient has a preference for a non-contracted provider and that provider verbally agrees to abide by program requirements and to accept program payment as payment in full. c. The LHD, when subcontracting, must meet the following conditions: 1. The LHD is not relieved of any of the duties and responsibilities provided in this Agreement. 2. The LHD will not enter into a subcontractual financial assistance agreement with any entity on the current North Carolina Office of State Budget and Management (OSBM) “Suspension of Funding” list (SOFL) and shall withhold funds not yet disbursed until the entity has been removed from the SOFL. Updated SOFLs are released weekly and are available on the OSBM website (xxxxx://xxx.xxxx.xx.xxx/management/grants). 3. The subcontractor will agree to abide by the standards contained herein or to provide such information as to allow the LHD to comply with these standards. 4. The subcontractor shall be subject to all conditions of this Agreement and of any subsequent Agreement Addenda for which they perform work on behalf of the LHD. 5. The subcontractor will agree to allow State and federal authorized representatives’ access to any records pertinent to its role as a subcontractor of the LHD. 6. Upon request, the LHD will make available to the State a copy of subcontracts supported with State or federal funds. d. The LHD must receive prior written approval from the State to subcontract when any of the following conditions exist: 1. The LHD proposes to subcontract to a single entity 50 percent or more of the total State and federal funds made available through this Agreement. 2. The LHD proposes to subcontract 50 percent or more, or $50,000, whichever is greater, of the total State and federal funds made available through this Agreement for any Agreement Addendum. 3. The LHD proposes to subcontract for services in the Women, Infants and Children (WIC)

Fiscal Control. a. The A. LHD shall comply with the Local Government Budget and Fiscal Control Act, North Carolina General Statute Chapter 159, Article 3. 1. The LHD shall maintain a purchasing and procurement system in accordance with generally accepted accounting practices principles and procedures set forth by the Local Government CommissionCommission (xxxxx://xxx.xxxxxxxxxxx.xxx/state-and-local-government-finance-division/local-government- commission). b. The B. LHD shall execute written agreements with all parties who invoice the LHD for payment for the provision of services to patients. Exceptions may be permitted in cases where the patient has a preference for a non-contracted provider and that provider verbally agrees to abide by program requirements and to accept program payment as payment in full. c. The LHD, when C. When subcontracting, LHD must meet the following conditionsrequirements: 1. The LHD is not relieved of any of the duties and responsibilities provided in this AgreementConsolidated Agreement and Agreement Addenda. 2. The LHD will not enter into a subcontractual financial assistance agreement with any entity on the current North Carolina Office of State Budget and Management (OSBM) “Suspension of Funding” list (SOFL) and shall withhold funds not yet disbursed until the entity has been removed from the SOFL. Updated SOFLs are released weekly and are available on the OSBM website (xxxxx://xxx.xxxx.xx.xxx/management/grants). 3. The subcontractor will agree to abide by the standards contained herein or to provide such information as to allow the LHD to comply with these standards. 4. The subcontractor shall be subject to all conditions of this Consolidated Agreement and of any subsequent Agreement Addenda for which they perform work on behalf of the LHD. 5. The subcontractor will agree to allow State DCFW and/or DPH and federal authorized representatives’ access to any records pertinent to its role as a subcontractor of the LHD. 6. Upon request, the LHD will make available to the State DCFW and/or DPH a copy of subcontracts supported with State or federal funds. d. The D. LHD must receive prior written approval from the State DCFW and/or DPH to subcontract when any of the following conditions exist: 1. The LHD proposes to subcontract to a single entity 50 percent or more of the total State and federal funds made available through this Consolidated Agreement.; 2. The LHD proposes to subcontract 50 percent or more, or $50,000, whichever is greater, of the total State and federal funds made available through this Consolidated Agreement for or any Agreement Addendum.; and/or 3. The LHD proposes to subcontract for any of the services in the Women, Infants and Children (WIC) Program. E. LHD shall return by email a signed copy of all public health Funding Authorization documents to the DPH Budget Office. F. LHD shall retain a copy of all Funding Authorization documents, the monthly certified electronic printed screen of the Expenditure Reports with any amendments (via the Aid-to-Counties Database), Consolidated Agreement and subsequent Amendments, Agreement Addenda, Agreement Addenda Revisions, and other financial records in accordance with the current Records Disposition Schedule for Local Health Departments issued by the North Carolina Department of Natural and Cultural Resources and located on its website at: xxxxx://xxxxxxxx.xxxxx.xxx/government/local-government-agencies/local- health-departments-schedule. G. Audits/Monitoring: The county or LHD shall have an annual audit performed in accordance with the Single Audit Act of 1984 (with amendment in 1996) and 2 C.F.R. Part 200. The audit report shall be submitted to the Local Government Commission (LGC) by the County Administration (if single county LHD) or the District Health Department or Public Health Authority (if so organized) within six months following the close of the Agreement. Audit findings referred to the NCDHHS Internal Audit Office by LGC will be investigated and findings verified by the NCDHHS Controller’s Office staff with assistance of DPH Program Staff.

Fiscal Control. a. The A. LHD shall comply with the Local Government Budget and Fiscal Control Act, North Carolina General Statute Chapter 159, Article 3. 1. The LHD shall maintain a purchasing and procurement system in accordance with generally accepted accounting practices principles and procedures set forth by the Local Government Commission.Commission.7 b. The B. LHD shall execute written agreements with all parties who invoice the LHD for payment for the provision of services to patients. Exceptions may be permitted in cases where the patient has a preference for a non-contracted provider and that provider verbally agrees to abide by program requirements and to accept program payment as payment in full. c. The LHD, when C. When subcontracting, LHD must meet the following conditionsrequirements: 1. The LHD is not relieved of any of the duties and responsibilities provided in this AgreementConsolidated Agreement and Agreement Addenda. 2. The LHD will not enter into a subcontractual financial assistance agreement with any entity on the current North Carolina Office of State Budget and Management (OSBM) “Suspension of Funding” list Funding List (SOFL) and shall withhold funds not yet disbursed until the entity has been removed from the SOFL. Updated SOFLs are released weekly and are available on the OSBM website (xxxxx://xxx.xxxx.xx.xxx/management/grants).website.8 3. The subcontractor will agree to abide by the standards contained herein set out in this Consolidated Agreement and relevant Agreement Addenda or to provide such information as to allow the LHD to comply with these standards. 4. The subcontractor shall be subject to all conditions of this Consolidated Agreement and of any subsequent Agreement Addenda for which they perform work on behalf of the LHD. 5. The subcontractor will agree to allow State DCFW and/or DPH and federal authorized representatives’ access to any records pertinent to its role as a subcontractor of the LHD. 6. Upon request, the LHD will make available to the State DCFW and/or DPH a copy of subcontracts supported with State or federal funds. d. The D. LHD must receive prior written approval from the State DCFW and/or DPH to subcontract when any of the following conditions exist: 1. The LHD proposes to subcontract to a single entity 50 percent or more of the total State and federal funds made available through this Consolidated Agreement.; 2. The LHD proposes to subcontract 50 percent or more, or $50,000, whichever is greater, of the total State and federal funds made available through this Consolidated Agreement for or any Agreement Addendum.; and/or 3. The LHD proposes to subcontract for any of the services in the Women, Infants and Children (WIC) Program. E. LHD shall return by email a signed copy of all DCFW Funding Authorization documents to DCFW Budget Office and all DPH Funding Authorization documents to DPH Budget Office. F. LHD shall retain a copy of all Funding Authorization documents, the monthly certified electronic printed screen of the Expenditure Reports with any amendments (via the Aid-to-Counties Database), Consolidated Agreement and subsequent Amendments, Agreement Addenda, Agreement Addenda Revisions, and other financial records in accordance with the current Records Disposition Schedule for Local Health Departments issued by the North Carolina Department of Natural and Cultural Resources.9 7 xxxxx://xxx.xxxxxxxxxxx.xxx/divisions/state-and-local-government-finance-division/local-government-commission 8 xxxxx://xxx.xxxx.xx.xxx/stewardship-services/grants-management/suspension-funding-memos 9 xxxxx://xxxxxxxx.xxxxx.xxx/government/local-government-agencies/local-health-departments-schedule G. Audits/Monitoring: The county or LHD shall have an annual audit performed in accordance with the Single Audit Act of 1984 (with amendment in 1996) and 2 C.F.R. Part 200. The audit report shall be submitted to the Local Government Commission (LGC) by the County Administration (if single county LHD) or the District Health Department or Public Health Authority (if so organized) within six months following the close of the Agreement. Audit findings referred to the NCDHHS Internal Audit Office by LGC will be investigated and findings verified by the NCDHHS Controller’s Office staff with assistance of DPH Program Staff.

Fiscal Control. a. The A. LHD shall comply with the Local Government Budget and Fiscal Control Act, North Carolina General Statute Chapter 159, Article 3. 1. The LHD shall maintain a purchasing and procurement system in accordance with generally accepted accounting practices principles and procedures set forth by the Local Government Commission.Commission.7 b. The B. LHD shall execute written agreements with all parties who invoice the LHD for payment for the provision of services to patients. Exceptions may be permitted in cases where the patient has a preference for a non-contracted provider and that provider verbally agrees to abide by program requirements and to accept program payment as payment in full. c. The LHD, when C. When subcontracting, LHD must meet the following conditionsrequirements: 1. The LHD is not relieved of any of the duties and responsibilities provided in this AgreementConsolidated Agreement and Agreement Addenda. 2. The LHD will not enter into a subcontractual financial assistance agreement with any entity on the current North Carolina Office of State Budget and Management (OSBM) “Suspension of Funding” list Funding List (SOFL) and shall withhold funds not yet disbursed until the entity has been removed from the SOFL. Updated SOFLs are released weekly and are available on the OSBM website (xxxxx://xxx.xxxx.xx.xxx/management/grants).website.8 3. The subcontractor will agree to abide by the standards contained herein set out in this Consolidated Agreement and relevant Agreement Addenda or to provide such information as to allow the LHD to comply with these standards. 4. The subcontractor shall be subject to all conditions of this Consolidated Agreement and of any subsequent Agreement Addenda for which they perform work on behalf of the LHD. 5. The subcontractor will agree to allow State DCFW and/or DPH and federal authorized representatives’ access to any records pertinent to its role as a subcontractor of the LHD. 6. Upon request, the LHD will make available to the State DCFW and/or DPH a copy of subcontracts supported with State or federal funds. d. The D. LHD must receive prior written approval from the State DCFW and/or DPH to subcontract when any of the following conditions exist: 1. The LHD proposes to subcontract to a single entity 50 percent or more of the total State and federal funds made available through this Consolidated Agreement.; 2. The LHD proposes to subcontract 50 percent or more, or $50,000, whichever is greater, of the total State and federal funds made available through this Consolidated Agreement for or any Agreement Addendum.; and/or 3. The LHD proposes to subcontract for any of the services in the Women, Infants and Children (WIC) Program. 7 xxxxx://xxx.xxxxxxxxxxx.xxx/divisions/state-and-local-government-finance-division/local-government-commission 8 xxxxx://xxx.xxxx.xx.xxx/stewardship-services/grants-management/suspension-funding-memos E. LHD shall return by email a signed copy of all DCFW Funding Authorization documents to the DCFW Budget Office and all DPH Funding Authorization documents to the DPH Budget Office. F. LHD shall retain a copy of all Funding Authorization documents, the monthly certified electronic printed screen of the Expenditure Reports with any amendments (via the Aid-to-Counties Database), Consolidated Agreement and subsequent Amendments, Agreement Addenda, Agreement Addenda Revisions, and other financial records in accordance with the current Records Disposition Schedule for Local Health Departments issued by the North Carolina Department of Natural and Cultural Resources and located on its website.9

Fiscal Control. a. The A. LHD shall comply with the Local Government Budget and Fiscal Control Act, North Carolina General Statute Chapter 159, Article 3. 1. The LHD shall maintain a purchasing and procurement system in accordance with generally accepted accounting practices principles and procedures set forth by the Local Government Commission.Commission.8 b. The B. LHD shall execute written agreements with all parties who invoice the LHD for payment for the provision of services to patients. Exceptions may be permitted in cases where the patient has a preference for a non-contracted provider and that provider verbally agrees to abide by program requirements and to accept program payment as payment in full. c. The LHD, when C. When subcontracting, LHD must meet the following conditionsrequirements: 1. The LHD is not relieved of any of the duties and responsibilities provided in this AgreementConsolidated Agreement and Agreement Addenda. 2. The LHD will not enter into a subcontractual financial assistance agreement with any entity on the current North Carolina Office of State Budget and Management (OSBM) “Suspension of Funding” list Funding List (SOFL) and shall withhold funds not yet disbursed until the entity has been removed from the SOFL. Updated SOFLs are released weekly and are available on the OSBM website (xxxxx://xxx.xxxx.xx.xxx/management/grants).website.9 8 xxxxx://xxx.xxxxxxxxxxx.xxx/divisions/state-and-local-government-finance-division/local-government-commission 9 xxxxx://xxx.xxxx.xx.xxx/stewardship-services/grants-management/suspension-funding-memos 3. The LHD shall require its subcontractor will to agree to abide by the standards contained herein set out in this Consolidated Agreement and relevant Agreement Addenda or to provide such information as to allow the LHD to comply with these standards. 4. The LHD shall subject its subcontractor shall be subject to all conditions of this Consolidated Agreement and of any subsequent Agreement Addenda for which they perform work on behalf of the LHD. 5. The LHD shall require its subcontractor will agree to allow State DCFW and/or DPH and federal authorized representatives’ access to any records pertinent to its role as a subcontractor of the LHD. 6. Upon request, the LHD will make available to the State DCFW and/or DPH a copy of subcontracts supported with State or federal funds. d. The D. LHD must receive prior written approval from the State DCFW Director and/or the DPH Deputy Director to subcontract when any either of the following conditions exist: 1. The LHD proposes to subcontract to a single entity 50 percent or more of the total State and federal funds made available through this Consolidated Agreement.; 2. The LHD proposes to subcontract 50 percent or more, or $50,000, whichever is greater, of the total State and federal funds made available through this Consolidated Agreement for or any Agreement Addendum. 3E. LHD must receive prior written approval from the Program Contact listed on the applicable DCFW or DPH Agreement Addendum to subcontract when either of the following conditions exist: 1. The LHD proposes to subcontract for any of the services in the Special Supplemental Nutrition Program for Women, Infants and Children (WICWIC Program). 2. LHD provides financial assistance of any funding amount with a contract to a subrecipient who will carry out the LHD’s programmatic responsibilities within the Agreement Addendum, regardless of funding source. F. Definitions for Subrecipient and Vendor: 1. Subrecipient: The federal government defines a subrecipient as a non-federal entity that receives a subaward from a pass-through entity to carry out part of a federal [or State] program.10 It does not include an individual who is a beneficiary of such program (e.g., a client) or a vendor that provides administrative services (e.g., accountant, staffing) or products (e.g., software, assessment) to the program. A subrecipient receives financial assistance to provide core programmatic services and is responsible for how the programmatic work is done, programmatic and financial reporting, and abiding by the award terms and conditions.