BHSD and CYFD utilize State and Federal funds to pay for services administered by our provider network. All providers have signed the Client-Based or Non-Client Based agreement with Falling Colors, the current Administrative Services Organization (ASO). BHSD and CYFD are sending out this notice to all of the provider network as a reminder of providers responsibility to submit their Financial Audits as required by the Agreement no later than 6 months following the close of the vendors’ Fiscal Year. Providers are to submit based on their funding expenditures and ALL BHSD and CYFD providers are required to report. Below is the Article 14 for reference:
ARTICLE 13 (Non-Client Based Agreement) ARTICLE 14 (Client Based Agreement)
FINANCIAL AUDIT REQUIREMENTS/REPORTS
A.
STATE AND FEDERAL FUNDS. A Vendor receiving State or federal funds from Falling Colors shall comply with applicable auditing requirements under the Single Audit Act (SAA) (31 U.S. C. Section 7501, et seq.), all New Mexico State Auditor’s rules and regulations, and any other applicable rules and regulations.
B.
FEDERAL FUNDS SUBJECT TO SAA. A Vendor receiving federal funds in excess of Seven hundred fifty thousand dollars ($750,000) in any single year that are subject to the SAA shall submit to Falling Colors an audit conducted by a Certified Public accountant in compliance with the Single Audit Act.
C.
FEDERAL FUNDS EXEMPT FROM SAA. A Vendor receiving federal funds in excess of Seven hundred fifty thousand dollars ($750,000) that are otherwise exempt from the Single Audit Act or state funds from Falling Colors in excess of One hundred thousand dollars ($100,000) in any single year shall submit to Falling Colors Annual Financial Statements and a Management Letter expressing an opinion on the Financial Statements prepared by an external Certified Public Accountant.
D.
AUDIT SUBMISSIONS TO FALLING COLORS. A Vendor receiving state funds from Falling Colors less than one hundred thousand dollars ($100,000) or federal funds less than seven hundred fifty thousand dollars ($750,000) in any single year shall submit to Falling Colors:
E. Annual Financial Statements and a Management Letter expressing an opinion on the Financial Statements prepared by an external Certified Public Accountant, or If Financial Statements are not normally prepared by a Certified Public Accountant, internally prepared Financial Statements are acceptable.
G.
FINANCIAL REPORT SUBMISSIONS. Applicable annual financial reports shall be submitted to Falling Colors no later than six months following the close of the Vendor’s fiscal year.
H.
DELIVERY. To ensure proper delivery and receipt, the Vendor shall submit their annual financial reports electronically to:
Falling Colors Corporation
Attn: Controller
I.
NO REIMBURSEMENT. The Vendor shall not request payment from Falling Colors for the cost of preparation of annual financial reports required by this Article.
J.
SUBMISSION. The above provisions are a necessary component of the financial disbursement process and as such financial reporting shall be performed by Vendor and financial reports shall be submitted to Falling Colors. Non-compliance of above annual financial reporting provisions may be grounds for termination as described in Article 9.
Thank you for complying with this contract requirement. Failure to submit may be grounds for termination.
For questions regarding this alert, please contact Juan Medina, Administrative Operations Manager for BHSD, at
juan.medina@state.nm.us
Thank you,
BHSDStar Support
