WHO IS ACCREDITED?

Private Organization Accreditation

Stillwater-based FamilyMeans provides services in budget and credit counseling, mental health, collaborative divorce, caregiver support, youth programming, and an employee assistance program. 
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ORGANIZATION TESTIMONIAL

Nuevo Amanecer Latino Children's Services

Galo A. Rodriguez, M.P.H., President & CEO

Since Nuevo Amanecer Latino Children’s Services pursued its COA accreditation on October 14, 2004, this corporation has sustained a continuous quality improvement process by not looking whom to blame among the involved parties but improving what we have already done well… because good enough is not good enough.
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Purpose

The nonprofit organization’s financial accountability and viability are achieved through the application of sound financial management practices that accord with legal and regulatory requirements.

FIN 7: Financial Management System

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 FIN 7 Practice standards.
2
Practices are basically sound but there is room for improvement, as noted in the ratings for the FIN 7 Practice standards.
3
Practice requires significant improvement, as noted in the ratings for the FIN 7 Practice standards; and/or
  • FIN 7.08 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 FIN 7 Practice standards. 

Table of Evidence

Self-Study Evidence On-Site Evidence On-Site Activities
    • Financial management and accounting procedures
    • Job description and resume of the person responsible for managing financial accounts
    • Cost allocation plan
    • Procedures regarding protection of client funds and assets
    • Network procedures for verifying accuracy of services billed
    • Network procedures regarding provider appeal of payment denials
    • Network procedures for informing providers of a possible delay in payment
    • Documentation of training on the use of the accounting system (FIN 7.07)
    • Interview:
      1. Governing Body
      2. CEO/CFO
      3. Personnel at all levels
    • Observe reporting and accounting system
    • Network Interview:
      1. Directors of subcontracted organizations

  • FIN 7.01

    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.

  • FIN 7.02

    The organization’s financial reporting system has the capacity to: 
    1. define and measure financial performance;
    2. provide 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.

  • FIN 7.03

    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.,
    • Up to 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 elements or more are not addressed at all.

  • FIN 7.04

    The organization seeks to conserve its financial resources by: 
    1. taking advantage of tax exemptions, where applicable; 
    2. maintaining sound practices regarding purchasing and inventory control; 
    3. coordinating the purchase of goods or services among internal divisions; and 
    4. using competitive bidding, when applicable, according to governing body policy and law or regulation. 

    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.

  • FIN 7.05

    Accounting records are kept up-to-date and balanced on a monthly basis, as demonstrated by: 
    1. timely reconciliation of the bank statement 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 reconciliation and is not authorized to sign checks.

    Interpretation: Subsidiary records include, but are not limited to: accounts receivable, accounts payable, and property plant & equipment.

    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.

  • FIN 7.06

    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.

  • FIN 7.07

    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 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; 
    3. a proper audit trail; and 
    4. secure access, controlled by user IDs, passwords, and permissible logon times.

    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.,
    • Ongoing staff training needs strengthening.
    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.

  • FP
    FIN 7.08

    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.

  • FIN 7.09

    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; and 
    3. 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 accurately recording units of services provided is weak and impacts on timely submission of invoices or required documents.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all.

  • FIN 7.10

    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.

  • FIN 7.11

    The network management entity: 
    1. has a process for verifying the accuracy of network services billed by subcontracting service providers; and 
    2. maintains a formal mechanism through which subcontracting providers can appeal payment denials and that includes timely written notification of the resolution and an explanation of any further appeal, rights, or recourse.

    NA The organization is not a network management entity. 

    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 verifying accuracy of billing or for appealing payment denial need strengthening.
    3
    Practice requires significant improvement; e.g., 
    • There are reported concerns about the process for verifying billing or for appealing adverse decisions; or
    • Written procedures for one of the standards elements are weak or nonexistent.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all.

  • FIN 7.12

    Contracted providers are informed in a timely manner if delays in payment to the network by the purchaser may result in delays in payment to providers.

    NA The organization is not a network management entity.

    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 informing providers need strengthening.
    3
    Practice requires significant improvement; e.g.,
    • There are reported concerns about the process for informing providers; or
    • Written procedures are weak or nonexistent.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all.
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