IC 12-8-10-1 Application of chapter to money of state agencies used to obtain
services from grantee agencies
Sec. 1. This chapter applies only to the indicated money of the
following state agencies to the extent that the money is used by the
agency to obtain services from grantee agencies to carry out the
program functions of the agency:
(1) Money appropriated or allocated to a state agency from
money received by the state under the federal Social Services
Block Grant Act (42 U.S.C. 1397 et seq.).
(2) The division of aging, except this chapter does not apply to
money expended under the following:
(A) The following statutes, unless application of this chapter
is 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 under
the 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 developmental
disabilities.
(4) The state department of health, for money expended under
the 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 the
purchase of services if all the following apply:
(A) The purchases are made under a contract between the
state agency and the office of the secretary.
(B) The contract includes a requirement that the office of the
secretary perform the duties and exercise the powers
described 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 person
that receives money directly from a state agency in return for the
performance 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 financial
services 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 is
broken down into measurable units.
(2) A rate of reimbursement for each unit of service to be
provided under the contract is established.
(3) The units of service actually provided under the contract are
reported by the service provider on a regular basis.
(4) The cost of providing a unit of service under the contract is
paid 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 the
office 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 agencies
subject to this chapter have the exclusive authority to select the
grantee agencies to be compensated from the funding sources listed
in section 1 of this chapter.
(b) Whenever the group becomes aware that a grantee agency
exists that is capable of performing a service for an agency subject
to this chapter, the group shall inform the agency of the potential
grantee agency. As added by P.L.2-1992, SEC.2.
IC 12-8-10-7 Procedure for reimbursing grantee agency; purchase of service
format or other contract format use; determination
Sec. 7. (a) When a state agency selects a grantee agency under
section 6 of this chapter, the state agency shall determine whether the
purchase of service format can be used as the procedure for
reimbursing the grantee agency. The state agency has exclusive
authority to make this determination, but the state agency shall seek
to use the purchase of service format whenever possible.
(b) If a state agency determines that the purchase of service
format can be used with a particular grantee agency, the state agency
shall notify the group of the state agency's decision. The group shall
then follow the procedure described in section 8 of this chapter.
(c) If a state agency determines that the purchase of service format
cannot be used with a particular grantee agency, the state agency
shall select the contract format that is to be used. If a state agency
selects a contract format under this subsection, the state agency shall
notify the group of the state agency's decision. The group shall then
follow the procedure described in section 8 of this chapter.
(d) Notwithstanding IC 4-13-2-20, IC 12-17-19-19, or any other
law, a contract format selected under subsection (b) or (c) may
include provisions for advance funding as follows:
(1) For not more than one-sixth (1/6) of the contract amount if
the annual contract amount is at least fifty thousand dollars
($50,000).
(2) For not more than one-half (1/2) of the contract amount if
the annual contract amount is less than fifty thousand dollars
($50,000).
(3) For interim payments, with subsequent reconciliation of the
amounts paid under the contract and the cost of the services
actually 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 selection
of a grantee agency and a contract format, the group shall do the
following:
(1) Prepare a contract with the grantee agency.
(2) Present the contract to the affected state agency for
execution.
(b) A contract prepared by the group under subsection (a) is
subject 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 contract
covered by this chapter shall maintain sufficient records to show the
following:
(1) The actual cost of services provided under the contract.
(2) The nature and amount of services provided under the
contract.
(b) At least every two (2) years the group shall, in the manner
prescribed by the state board of accounts, conduct audits of all
grantee agencies that, under a contract under this chapter, receive
payment from any of the money described in section 1(2) or 1(3)(J)
of this chapter. These audits must include an investigation of the
records of the grantee agencies to determine whether the services
rendered under the contracts have been in compliance with the terms
of the contracts.
(c) This section does not prohibit the state board of accounts from
auditing grantee agencies under the board's own authority. The office
of the secretary may do either of the following:
(1) Contract with the state board of accounts to conduct audits
of grantee agencies.
(2) Require grantee agencies to obtain independent audits of
their agencies.
(d) A contract between a state agency and the office of the
secretary under section (1)(6) of this chapter may include a provision
requiring the group to perform or arrange for the audits described by
this 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 of
each audit required by this chapter, the group shall submit a copy of
the 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 the
audit.
(3) The legislative council, upon request of the legislative
council or when required by federal law. A report submitted
under this subdivision must be in electronic format under
IC 5-14-6.
(4) The appropriate federal agency, when required by federal
law. As added by P.L.2-1992, SEC.2. Amended by P.L.28-2004, SEC.87.
IC 12-8-10-1 Application of chapter to money of state agencies used to obtain
services from grantee agencies
Sec. 1. This chapter applies only to the indicated money of the
following state agencies to the extent that the money is used by the
agency to obtain services from grantee agencies to carry out the
program functions of the agency:
(1) Money appropriated or allocated to a state agency from
money received by the state under the federal Social Services
Block Grant Act (42 U.S.C. 1397 et seq.).
(2) The division of aging, except this chapter does not apply to
money expended under the following:
(A) The following statutes, unless application of this chapter
is 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 under
the 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 developmental
disabilities.
(4) The state department of health, for money expended under
the 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 the
purchase of services if all the following apply:
(A) The purchases are made under a contract between the
state agency and the office of the secretary.
(B) The contract includes a requirement that the office of the
secretary perform the duties and exercise the powers
described 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 person
that receives money directly from a state agency in return for the
performance 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 financial
services 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 is
broken down into measurable units.
(2) A rate of reimbursement for each unit of service to be
provided under the contract is established.
(3) The units of service actually provided under the contract are
reported by the service provider on a regular basis.
(4) The cost of providing a unit of service under the contract is
paid 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 the
office 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 agencies
subject to this chapter have the exclusive authority to select the
grantee agencies to be compensated from the funding sources listed
in section 1 of this chapter.
(b) Whenever the group becomes aware that a grantee agency
exists that is capable of performing a service for an agency subject
to this chapter, the group shall inform the agency of the potential
grantee agency. As added by P.L.2-1992, SEC.2.
IC 12-8-10-7 Procedure for reimbursing grantee agency; purchase of service
format or other contract format use; determination
Sec. 7. (a) When a state agency selects a grantee agency under
section 6 of this chapter, the state agency shall determine whether the
purchase of service format can be used as the procedure for
reimbursing the grantee agency. The state agency has exclusive
authority to make this determination, but the state agency shall seek
to use the purchase of service format whenever possible.
(b) If a state agency determines that the purchase of service
format can be used with a particular grantee agency, the state agency
shall notify the group of the state agency's decision. The group shall
then follow the procedure described in section 8 of this chapter.
(c) If a state agency determines that the purchase of service format
cannot be used with a particular grantee agency, the state agency
shall select the contract format that is to be used. If a state agency
selects a contract format under this subsection, the state agency shall
notify the group of the state agency's decision. The group shall then
follow the procedure described in section 8 of this chapter.
(d) Notwithstanding IC 4-13-2-20, IC 12-17-19-19, or any other
law, a contract format selected under subsection (b) or (c) may
include provisions for advance funding as follows:
(1) For not more than one-sixth (1/6) of the contract amount if
the annual contract amount is at least fifty thousand dollars
($50,000).
(2) For not more than one-half (1/2) of the contract amount if
the annual contract amount is less than fifty thousand dollars
($50,000).
(3) For interim payments, with subsequent reconciliation of the
amounts paid under the contract and the cost of the services
actually 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 selection
of a grantee agency and a contract format, the group shall do the
following:
(1) Prepare a contract with the grantee agency.
(2) Present the contract to the affected state agency for
execution.
(b) A contract prepared by the group under subsection (a) is
subject 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 contract
covered by this chapter shall maintain sufficient records to show the
following:
(1) The actual cost of services provided under the contract.
(2) The nature and amount of services provided under the
contract.
(b) At least every two (2) years the group shall, in the manner
prescribed by the state board of accounts, conduct audits of all
grantee agencies that, under a contract under this chapter, receive
payment from any of the money described in section 1(2) or 1(3)(J)
of this chapter. These audits must include an investigation of the
records of the grantee agencies to determine whether the services
rendered under the contracts have been in compliance with the terms
of the contracts.
(c) This section does not prohibit the state board of accounts from
auditing grantee agencies under the board's own authority. The office
of the secretary may do either of the following:
(1) Contract with the state board of accounts to conduct audits
of grantee agencies.
(2) Require grantee agencies to obtain independent audits of
their agencies.
(d) A contract between a state agency and the office of the
secretary under section (1)(6) of this chapter may include a provision
requiring the group to perform or arrange for the audits described by
this 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 of
each audit required by this chapter, the group shall submit a copy of
the 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 the
audit.
(3) The legislative council, upon request of the legislative
council or when required by federal law. A report submitted
under this subdivision must be in electronic format under
IC 5-14-6.
(4) The appropriate federal agency, when required by federal
law. As added by P.L.2-1992, SEC.2. Amended by P.L.28-2004, SEC.87.
IC 12-8-10-1 Application of chapter to money of state agencies used to obtain
services from grantee agencies
Sec. 1. This chapter applies only to the indicated money of the
following state agencies to the extent that the money is used by the
agency to obtain services from grantee agencies to carry out the
program functions of the agency:
(1) Money appropriated or allocated to a state agency from
money received by the state under the federal Social Services
Block Grant Act (42 U.S.C. 1397 et seq.).
(2) The division of aging, except this chapter does not apply to
money expended under the following:
(A) The following statutes, unless application of this chapter
is 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 under
the 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 developmental
disabilities.
(4) The state department of health, for money expended under
the 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 the
purchase of services if all the following apply:
(A) The purchases are made under a contract between the
state agency and the office of the secretary.
(B) The contract includes a requirement that the office of the
secretary perform the duties and exercise the powers
described 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 person
that receives money directly from a state agency in return for the
performance 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 financial
services 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 is
broken down into measurable units.
(2) A rate of reimbursement for each unit of service to be
provided under the contract is established.
(3) The units of service actually provided under the contract are
reported by the service provider on a regular basis.
(4) The cost of providing a unit of service under the contract is
paid 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 the
office 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 agencies
subject to this chapter have the exclusive authority to select the
grantee agencies to be compensated from the funding sources listed
in section 1 of this chapter.
(b) Whenever the group becomes aware that a grantee agency
exists that is capable of performing a service for an agency subject
to this chapter, the group shall inform the agency of the potential
grantee agency. As added by P.L.2-1992, SEC.2.
IC 12-8-10-7 Procedure for reimbursing grantee agency; purchase of service
format or other contract format use; determination
Sec. 7. (a) When a state agency selects a grantee agency under
section 6 of this chapter, the state agency shall determine whether the
purchase of service format can be used as the procedure for
reimbursing the grantee agency. The state agency has exclusive
authority to make this determination, but the state agency shall seek
to use the purchase of service format whenever possible.
(b) If a state agency determines that the purchase of service
format can be used with a particular grantee agency, the state agency
shall notify the group of the state agency's decision. The group shall
then follow the procedure described in section 8 of this chapter.
(c) If a state agency determines that the purchase of service format
cannot be used with a particular grantee agency, the state agency
shall select the contract format that is to be used. If a state agency
selects a contract format under this subsection, the state agency shall
notify the group of the state agency's decision. The group shall then
follow the procedure described in section 8 of this chapter.
(d) Notwithstanding IC 4-13-2-20, IC 12-17-19-19, or any other
law, a contract format selected under subsection (b) or (c) may
include provisions for advance funding as follows:
(1) For not more than one-sixth (1/6) of the contract amount if
the annual contract amount is at least fifty thousand dollars
($50,000).
(2) For not more than one-half (1/2) of the contract amount if
the annual contract amount is less than fifty thousand dollars
($50,000).
(3) For interim payments, with subsequent reconciliation of the
amounts paid under the contract and the cost of the services
actually 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 selection
of a grantee agency and a contract format, the group shall do the
following:
(1) Prepare a contract with the grantee agency.
(2) Present the contract to the affected state agency for
execution.
(b) A contract prepared by the group under subsection (a) is
subject 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 contract
covered by this chapter shall maintain sufficient records to show the
following:
(1) The actual cost of services provided under the contract.
(2) The nature and amount of services provided under the
contract.
(b) At least every two (2) years the group shall, in the manner
prescribed by the state board of accounts, conduct audits of all
grantee agencies that, under a contract under this chapter, receive
payment from any of the money described in section 1(2) or 1(3)(J)
of this chapter. These audits must include an investigation of the
records of the grantee agencies to determine whether the services
rendered under the contracts have been in compliance with the terms
of the contracts.
(c) This section does not prohibit the state board of accounts from
auditing grantee agencies under the board's own authority. The office
of the secretary may do either of the following:
(1) Contract with the state board of accounts to conduct audits
of grantee agencies.
(2) Require grantee agencies to obtain independent audits of
their agencies.
(d) A contract between a state agency and the office of the
secretary under section (1)(6) of this chapter may include a provision
requiring the group to perform or arrange for the audits described by
this 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 of
each audit required by this chapter, the group shall submit a copy of
the 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 the
audit.
(3) The legislative council, upon request of the legislative
council or when required by federal law. A report submitted
under this subdivision must be in electronic format under
IC 5-14-6.
(4) The appropriate federal agency, when required by federal
law. As added by P.L.2-1992, SEC.2. Amended by P.L.28-2004, SEC.87.
