| (a) The Department may place on Cost Reimbursement
any contract, other than non-Discretionary CSBG. Cost reimbursement
requires Subrecipients to submit supporting documentation and back
up for Expenditures or Obligations prior to the Department releasing
funds. The Department staff shall establish appropriate review protocols
for each party placed on cost reimbursement status, indicating whether
all expenses will be reviewed or a sample, and the nature of any additional
documentation that will be required in connection therewith. Approving
the release of funds in a cost review situation does not constitute
final approval of the expenditure. Funds so advanced remain subject
to future reviews, monitorings, and audits and in no way serve to
constrain or limit them.
(b) In addition to the reporting requirements outlined
in §6.7 of this Title (relating to Subrecipient Reporting Requirements)
an entity on Cost Reimbursement must submit, at a minimum, their expanded
general ledger, chart of accounts, cost allocation plan, and bank
reconciliations for the previous three months. Upon review of those
items the Department will request submission of back up for some or
all of the reported Expenditures.
(c) The budget caps for each budget category will be
enforced each month the entity is on Cost Reimbursement.
(d) An entity will be removed from Cost Reimbursement
when the Department determines that identified risks or concerns have
been sufficiently mitigated.
(e) An entity on Cost Reimbursement remains subject
to monitoring.
(f) The Department reserves the right to outsource
some or all of its work associated with the Cost Reimbursement process
to a third party.
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