WHO IS ACCREDITED?

Private Organization Accreditation

Germaine Lawrence is a residential treatment center for girls ages 12-18 with complex behavioral, psychological and learning challenges.   Girls live at our programs while receiving special education, individual, family and group therapy; psychiatric and primary medical care; and a wide variety of therapeutic activities and interventions.
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ORGANIZATION TESTIMONIAL

Orange County Government, Youth & Family Services Division

Rodney J. Hrobar Sr., LMHC, CPP, Quality Assurance Manager

As the lead agency in Orange County, providing the safety net for children and families, it is reassuring that our clients can be confident that their needs will be addressed in accordance with the most stringent standards of public, as well as private, accountability as monitored and reviewed by the Council on Accreditation. 
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Purpose

The for-profit organization ensures accountability through effective administration and management, and sound financial management practices that are in accord with legal and regulatory requirements.

CA-AFM 9: Financial Management

Positive financial outcomes are achieved through a financial management system that receives, disburses, and accounts for funds consistent with sound financial practices. 

Rating Indicators
1
The organization's practices fully meet the standard, as indicated by full implementation of the practices outlined in the CA-AFM 9 Practice standards.
2
Practices are basically sound but there is room for improvement, as noted in the ratings for the CA-AFM 9 Practice standards.
3
Practice requires significant improvement, as noted in the ratings for the CA-AFM 9 Practice standards; and/or
  • CA-AFM 9.08 has been rated 3 or 4.
4
Implementation of the standard is minimal or there is no evidence of implementation at all, as noted in the ratings for the CA-AFM 9 Practice standards. 

Table of Evidence

Self-Study Evidence On-Site Evidence On-Site Activities
    • Financial management and accounting procedures
    • Job description and resumé of the person responsible for managing financial accounts
    • Cost allocation plan (CA-AFM 9.03)
    • Procedures regarding protection of client funds and assets (CA-AFM 9.08)
    • Documentation of training on the use of the accounting system (CA-AFM 9.07)
    • Interview:
      1. Owner
      2. CEO or designee
      3. CFO
      4. Personnel at all levels
    • Observe reporting and accounting system

  • CA-AFM 9.01

    Annual financial statements are prepared in accordance with Generally Accepted Accounting Principles. 

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement.
    3
    Practice requires significant improvement.
    4
    The organization’s financial statements are not prepared according to the Generally Accepted Accounting Principles.

  • CA-AFM 9.02

    The organization’s financial reporting system has the capacity to: 

    1. define and measure financial performance;
    2. produce timely financial reports; 
    3. predict future cash flows; and
    4. monitor its economic resources, claims to those resources (obligations), and the effects of transactions, events, and circumstances that change resources and claims to resources.

    Rating Indicators
    1
    The organization's practices reflect full implementation of each of the standard's elements.
    2
    Practices are basically sound but there is room for improvement; e.g.,
    • One of the elements is not fully addressed.
    3
    Practice requires significant improvement; e.g.,
    • Two elements are not fully addressed; or
    • One element is not addressed at all.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all.

  • CA-AFM 9.03

    Accounting practices and procedures include: 

    1. prompt, accurate, and complete recording of transactions in the general ledger; 
    2. preparation of journal entries;
    3. an inclusive and descriptive chart of accounts; 
    4. monthly, quarterly, and year-end financial close processes;
    5. information on all funds, including source information and pertinent regulations; 
    6. timely payment of financial obligations;
    7. policies for recognizing revenues and expenses; 
    8. disbursement and receipt of monies;  
    9. cost allocation plan; 
    10. tracking of fixed assets; and 
    11. timely deposit of funds received.

    Interpretation: Please note that these procedures must address cash, checks, and other accounts.

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement; e.g.
    • One or two of the elements are not fully addressed.
    3
    Practice requires significant improvement; e.g.
    • Three elements are not fully addressed; or
    • Two elements are not addressed at all.
    4
    The standard has not been implemented and little or no progress has been made toward implementation; e.g.
    • Four or more elements are not fully addressed; or
    • Three or more elements are not addressed at all.

  • CA-AFM 9.04

    The organization seeks to conserve its financial resources by: 

    1. maintaining sound practices regarding purchasing and inventory control; 
    2. coordinating the purchase of goods or services among internal divisions; and 
    3. using competitive bidding, when appropriate. 

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement; e.g.,
    • One of the elements is not fully addressed.
    3
    Practice requires significant improvement; e.g., 
    • Two of the elements are not fully addressed; or
    • One of the elements is not addressed at all.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all.

  • CA-AFM 9.05

    Accounting records are kept up-to-date and balanced on a monthly basis, as demonstrated by: 

    1. timely reconciliation of bank statements and subsidiary records to the general ledger; 
    2. up-to-date posting of cash receipts and disbursements; 
    3. monthly updating of the general ledger; and 
    4. review of the bank reconciliation by a person other than the person who performs the reconcilitation and who is not authorized to sign checks.

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement; e.g.,
    • The organization has an occasional, minor problem in compliance such as short delays in posting receipts and disbursements or slightly overdue updating of the general ledger.
    3
    Practice requires significant improvement; e.g.,
    • Bank reconciliation is not regularly reviewed by two people as required.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all.

  • CA-AFM 9.06

    The organization uses the accrual method of accounting, at least at the end of the year. 

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement.
    3
    Practice requires significant improvement.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all.

  • CA-AFM 9.07

    Oversight and management of the organization’s accounting system require: 

    1. a financial officer or business manager who is responsible for maintaining the financial accounts and has prior accounting and bookkeeping experience, and/or an accounting degree, C.P.A. credential, or other recognized accounting/financial certification, as appropriate to the size and complexity of the organization; 
    2. all personnel who use the system to receive initial and ongoing training on its use; and 
    3. secure access, controlled by user IDs, passwords, and permissible logon times. 

    Interpretation: Regarding element (a), organizations can demonstrate implementation if it engages an outside vendor that meets the listed qualifications.

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement; e.g.
    • Initial training is provided but there is no evidence of ongoing training; or
    • The security system needs minor improvement.
    3
    Practice requires significant improvement; e.g., 
    • The organization has a qualified financial officer, but the system is deficient in some significant regard, such as lack of training for some personnel.
    4
    There are flaws in the operation of the financial management system which create the potential for mismanagement and/or inability to detect fraudulent practices.

  • CA-AFM 9.08

    An organization that assumes fiduciary responsibility for, or disburses client funds: 

    1. segregates client funds from other organization funds;
    2. protects client assets; and 
    3. complies with applicable legislative, regulatory, judicial, and governmental requirements. 

    Interpretation: Examples of the types of funds that organizations may assume responsibility for or disburse to clients include: 

    • allowances for children and youth in out-of-home care;
    • funds under the control of the organization in guardianship cases; 
    • social security or SSI benefits when the organization serves as representative payee.

    NA The organization does not assume fiduciary responsibility for, or disburse client or non-fee-for-service funds to service recipients.

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement; e.g.,
    • Procedures for segregation of funds or protection of client assets need strengthening.
    3
    Practice requires significant improvement; e.g.,
    • Two of the required elements need strengthening or one or more elements is not addressed at all.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all; e.g.,
    • The organization has no written procedures, and adequate protection and guidelines have not been developed to protect assets of persons served; or
    • There have been instances in which funds for which the organization had a fiduciary responsibility appear to have been misused, e.g., assets or funds have been inappropriately co-mingled or disbursed inconsistently.

  • CA-AFM 9.09

    The organization that provides services as a vendor establishes safeguards against over- and under-billing that include: 

    1. an accurate account of units of service provided; 
    2. timely submission of invoices and required documents;
    3. a process for the timely resolution of payment delays; and 
    4. compliance with applicable regulations. 

    Note: Organizations should review state Medicaid plans or other third party reimbursement claims processing requirements to avoid administrative denials for payment. Payment can be denied for many reasons, including, but not limited to: failure to submit the claim within the appropriate timeframe; incomplete or missing documentation or forms; and codes or services being inconsistent with authorizations. 

    NA The organization is not a vendor of services.

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement; e.g.,
    • There are instances of less than timely submission of invoices and/or required documents.
    3
    Practice requires significant improvement; e.g.,
    • Procedures for recording units of services provided is weak and impacts on timely or accurate submission of invoices or required documents.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all.

  • CA-AFM 9.10

    The organization determines the basis for any denial of coverage or payment under insurance or contractual arrangements and follows up with timely appeals and communication with the service recipient, as applicable. 

    NA The organization only accepts fee for service clients.

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement; e.g.,
    • The organization determines the basis for denial of coverage or payment, follows up appropriately, and files written appeals; however, it is sometimes slow to take action.
    3
    Practice requires significant improvement; e.g.,
    • The organization fails to follow up in a timely way in a significant percentage of cases where payment is denied, and/or does not file a written appeal.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all; e.g.,
    • The organization consistently fails to follow up appropriately in cases in which coverage or payment is denied; or
    • Written appeals are often not filed in a timely way or at all.
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