Ohio Administrative Code Title 5122:1 - Fiscal Administration
Ohio Administrative Code Title 5122:1 – Fiscal Administration
Overview
Title 5122 pertains to the Ohio Department of Mental Health and Addiction Services (formerly Ohio Department of Mental Health). Specifically, Chapter 1 under this title covers Fiscal Administration — the rules and procedures related to the financial management, budgeting, accounting, and fiscal operations of mental health facilities and programs under the Department's jurisdiction.
The goal of these rules is to ensure efficient and transparent use of public funds, compliance with state and federal financial regulations, and sound fiscal oversight within mental health services.
Scope and Purpose
Establish fiscal management standards for institutions and programs operated or funded by the Ohio Department of Mental Health and Addiction Services.
Ensure proper allocation, recording, and auditing of funds.
Define roles and responsibilities for fiscal personnel.
Set procedures for budgeting, expenditure control, reporting, and compliance.
Key Provisions of OAC 5122:1
1. Budgeting and Appropriations
Facilities and programs must develop annual budgets consistent with the Department’s fiscal policies.
Budgets must comply with legislative appropriations and funding limits.
Procedures for submitting, reviewing, and approving budgets are set forth to maintain fiscal discipline.
2. Accounting and Recordkeeping
Accurate records must be maintained for all receipts, expenditures, payroll, and assets.
Compliance with Generally Accepted Accounting Principles (GAAP) and state accounting standards is required.
Regular financial reports are submitted to the Department and state auditors.
3. Expenditure Control
Clear authorization is required for all expenditures.
Spending must align with approved budgets.
Rules prohibit unauthorized or inappropriate use of funds.
4. Auditing and Reporting
Periodic internal and external audits are mandated.
Facilities must cooperate with audits and provide requested documentation.
Audit findings are reported to the Department and relevant oversight bodies.
5. Procurement and Contracts
Procedures for procurement and contract management ensure competitive bidding and compliance with state procurement laws.
Contracts must be authorized and properly documented.
Examples of Specific Rules under OAC 5122:1
5122:1-1-01: Definitions related to fiscal administration.
5122:1-1-02: Budget preparation and submission requirements.
5122:1-1-03: Fiscal control procedures.
5122:1-1-04: Financial reporting requirements.
5122:1-1-05: Audit procedures and responsibilities.
Relevant Ohio Case Law
While direct case law specific to OAC Title 5122:1 may be limited due to its administrative and procedural nature, several Ohio cases provide guidance on the principles of fiscal administration, state agency financial management, and accountability:
1. State ex rel. Ohio Auditor of State v. State, 2006-Ohio-2940
Issue: Accountability and proper use of public funds by state agencies.
Holding: The court emphasized strict compliance with fiscal rules and that public agencies must maintain transparency and proper documentation in expenditures.
Significance: Reinforces that rules like those in OAC 5122:1 must be rigorously followed to avoid mismanagement or misuse of public funds.
2. State ex rel. Husted v. Ohio Dept. of Transp., 2013-Ohio-3353
Issue: Proper authorization and adherence to budgetary limits for state expenditures.
Holding: The court invalidated expenditures made outside approved budgets or without proper authorization.
Significance: Supports the fiscal control mechanisms embedded in OAC 5122:1 and affirms that agencies cannot spend beyond appropriations.
3. State ex rel. Trimble v. Ohio Dept. of Mental Health, 1986 Ohio App. LEXIS 10724
Issue: Challenge related to financial management practices at a state mental health institution.
Holding: The court upheld the Department’s authority to establish fiscal policies, including budgeting and expenditure controls.
Significance: Validates the administrative rules such as those in OAC 5122:1 and confirms agency discretion in fiscal administration within legal bounds.
Legal Principles
Compliance and Accountability: State agencies must strictly follow fiscal rules to ensure accountability in handling public money.
Authority of Administrative Rules: Courts recognize the validity of administrative codes like Title 5122:1 that set internal fiscal policies.
Budgetary Control: Expenditures must align with legislatively approved budgets; unauthorized spending is unlawful.
Transparency and Recordkeeping: Maintaining accurate financial records and cooperating with audits is a legal requirement.
Practical Implications
Mental health facilities and programs must have robust fiscal procedures aligned with OAC 5122:1.
Fiscal officers and administrators should be trained on these rules to avoid mismanagement.
Regular audits and internal controls are essential to detect and prevent financial irregularities.
Legal challenges to fiscal decisions are typically based on noncompliance with these administrative rules or statutory authority.
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