CHAPTER 10. FINANCIAL SERVICES GROUP
IC 12-8-10
Chapter 10. Financial Services Group
IC 12-8-10-1
Application of chapter to money of state agencies used to obtainservices from grantee agencies
Sec. 1. This chapter applies only to the indicated money of thefollowing state agencies to the extent that the money is used by theagency to obtain services from grantee agencies to carry out theprogram functions of the agency:
(1) Money appropriated or allocated to a state agency frommoney received by the state under the federal Social ServicesBlock Grant Act (42 U.S.C. 1397 et seq.).
(2) The division of aging, except this chapter does not apply tomoney expended under the following:
(A) The following statutes, unless application of this chapteris required by another subdivision of this section:
(i) IC 12-10-6.
(ii) IC 12-10-12.
(B) Epilepsy services.
(3) The division of family resources, for money expended underthe following programs:
(A) The child development associate scholarship program.
(B) The dependent care program.
(C) Migrant day care.
(D) The commodities program.
(E) The migrant nutrition program.
(F) Any emergency shelter program.
(G) The energy weatherization program.
(H) Programs for individuals with developmentaldisabilities.
(4) The state department of health, for money expended underthe following statutes:
(A) IC 16-19-10.
(B) IC 16-38-3.
(5) The group.
(6) All state agencies, for any other money expended for thepurchase of services if all the following apply:
(A) The purchases are made under a contract between thestate agency and the office of the secretary.
(B) The contract includes a requirement that the office of thesecretary perform the duties and exercise the powersdescribed in this chapter.
(C) The contract is approved by the budget agency.
(7) The division of mental health and addiction.
As added by P.L.2-1992, SEC.2. Amended by P.L.2-1993, SEC.76;P.L.4-1993, SEC.30; P.L.5-1993, SEC.43; P.L.40-1994, SEC.17;P.L.24-1997, SEC.18; P.L.108-1997, SEC.6; P.L.215-2001, SEC.33;P.L.141-2006, SEC.29; P.L.145-2006, SEC.66; P.L.181-2006,SEC.51; P.L.1-2007, SEC.112; P.L.146-2008, SEC.383.
IC 12-8-10-2
"Grantee agency" defined
Sec. 2. As used in this chapter, "grantee agency" means a personthat receives money directly from a state agency in return for theperformance of services.
As added by P.L.2-1992, SEC.2.
IC 12-8-10-3
"Group" defined
Sec. 3. As used in this chapter, "group" refers to the financialservices group established by sections of this chapter.
As added by P.L.2-1992, SEC.2.
IC 12-8-10-4
"Purchase of service format" defined
Sec. 4. As used in this chapter, "purchase of service format"means a contract format that has the following features:
(1) Each type of service to be provided under the contract isbroken down into measurable units.
(2) A rate of reimbursement for each unit of service to beprovided under the contract is established.
(3) The units of service actually provided under the contract arereported by the service provider on a regular basis.
(4) The cost of providing a unit of service under the contract ispaid after the unit has been provided.
As added by P.L.2-1992, SEC.2.
IC 12-8-10-5
Establishment
Sec. 5. The financial services group is established within theoffice of the secretary.
As added by P.L.2-1992, SEC.2. Amended by P.L.108-1997, SEC.7.
IC 12-8-10-6
Selection of grantee agencies to be compensated
Sec. 6. (a) Subject to approval by the budget agency, the agenciessubject to this chapter have the exclusive authority to select thegrantee agencies to be compensated from the funding sources listedin section 1 of this chapter.
(b) Whenever the group becomes aware that a grantee agencyexists that is capable of performing a service for an agency subjectto this chapter, the group shall inform the agency of the potentialgrantee agency.
As added by P.L.2-1992, SEC.2.
IC 12-8-10-7
Procedure for reimbursing grantee agency; purchase of serviceformat or other contract format use; determination
Sec. 7. (a) When a state agency selects a grantee agency undersection 6 of this chapter, the state agency shall determine whether the
purchase of service format can be used as the procedure forreimbursing the grantee agency. The state agency has exclusiveauthority to make this determination, but the state agency shall seekto use the purchase of service format whenever possible.
(b) If a state agency determines that the purchase of serviceformat can be used with a particular grantee agency, the state agencyshall notify the group of the state agency's decision. The group shallthen follow the procedure described in section 8 of this chapter.
(c) If a state agency determines that the purchase of service formatcannot be used with a particular grantee agency, the state agencyshall select the contract format that is to be used. If a state agencyselects a contract format under this subsection, the state agency shallnotify the group of the state agency's decision. The group shall thenfollow the procedure described in section 8 of this chapter.
(d) Notwithstanding IC 4-13-2-20, IC 12-17-19-19, or any otherlaw, a contract format selected under subsection (b) or (c) mayinclude provisions for advance funding as follows:
(1) For not more than one-sixth (1/6) of the contract amount ifthe annual contract amount is at least fifty thousand dollars($50,000).
(2) For not more than one-half (1/2) of the contract amount ifthe annual contract amount is less than fifty thousand dollars($50,000).
(3) For interim payments, with subsequent reconciliation of theamounts paid under the contract and the cost of the servicesactually provided.
As added by P.L.2-1992, SEC.2. Amended by P.L.20-1992, SEC.25;P.L.21-1992, SEC.7; P.L.1-1993, SEC.96; P.L.1-2005, SEC.127.
IC 12-8-10-8
Group procedure; requisites
Sec. 8. (a) When a state agency notifies the group of the selectionof a grantee agency and a contract format, the group shall do thefollowing:
(1) Prepare a contract with the grantee agency.
(2) Present the contract to the affected state agency forexecution.
(b) A contract prepared by the group under subsection (a) issubject to approval under IC 4-13-2-14.3.
As added by P.L.2-1992, SEC.2.
IC 12-8-10-9
Records of grantee agencies; audits; requirements
Sec. 9. (a) Each grantee agency receiving money under a contractcovered by this chapter shall maintain sufficient records to show thefollowing:
(1) The actual cost of services provided under the contract.
(2) The nature and amount of services provided under thecontract.
(b) At least every two (2) years the group shall, in the manner
prescribed by the state board of accounts, conduct audits of allgrantee agencies that, under a contract under this chapter, receivepayment from any of the money described in section 1(2) or 1(3)(J)of this chapter. These audits must include an investigation of therecords of the grantee agencies to determine whether the servicesrendered under the contracts have been in compliance with the termsof the contracts.
(c) This section does not prohibit the state board of accounts fromauditing grantee agencies under the board's own authority. The officeof the secretary may do either of the following:
(1) Contract with the state board of accounts to conduct auditsof grantee agencies.
(2) Require grantee agencies to obtain independent audits oftheir agencies.
(d) A contract between a state agency and the office of thesecretary under section (1)(6) of this chapter may include a provisionrequiring the group to perform or arrange for the audits described bythis section.
As added by P.L.2-1992, SEC.2. Amended by P.L.108-1997, SEC.8;P.L.181-2006, SEC.52.
IC 12-8-10-10
Audits; distribution of copies
Sec. 10. Not more than thirty (30) days after the completion ofeach audit required by this chapter, the group shall submit a copy ofthe audit to each of the following:
(1) The state board of accounts.
(2) Each state agency that is a party to a contract covered in theaudit.
(3) The legislative council, upon request of the legislativecouncil or when required by federal law. A report submittedunder this subdivision must be in electronic format underIC 5-14-6.
(4) The appropriate federal agency, when required by federallaw.
As added by P.L.2-1992, SEC.2. Amended by P.L.28-2004, SEC.87.