DEPARTMENT OF MANAGEMENT SERVICES ADMINISTRATIVE POLICY TITLE: Management of the Privately Operated Institutions Inmate Welfare Trust Fund (POIIWTF) EFFECTIVE: March 4, 2009 REVISED: July 24, 2009 POLICY NUMBER Private Prison Monitoring 08- PURPOSE This policy creates procedures and guidelines for the operations and management of the Privately Operated Institutions Inmate Welfare Trust Fund. SCOPE This policy applies to private correctional facilities and its employees under contract with the State of Florida, Department of Management Services, and Bureau of Private Prison Monitoring. AUTHORITY State/Federal Statutes: Chapter 957 Correctional Privatization Chapter 945.215 Inmate Welfare and Employee Benefit Trust Funds Chapter 944.72 Privately Operated Institutions Inmate Welfare Trust Fund Chapter 286 Public Business: Miscellaneous Provisions Chapter 287 Procurement of Personal Property and Services Florida Administrative Code: 60AA-203.101 Inmate Welfare Fund and Canteen Operations 69I-40. Restriction of Expenditures Contract References: Article 5.5 Operation of the Privately Operated Institutions Inmate Welfare Trust Fund (POIIWTF) Article 5.6 Auditing of Trust Accounts Article 5.7 Financial Reporting RESPONSIBLE OFFICE Private Prison Monitoring Page 1 of 8 DMS Policy No. 09-
DISTRIBUTION The following individuals should be notified of this policy Contractors Division of Specialized Services Department of Corrections Bureau of Policy Development Bureau of Finance & Accounting Method of Notification E-mail and/or letter Will disseminate in quarterly meeting E-mail and/or letter Staff meeting E-mail POLICY The contractor shall keep all expenditure and programmatic records five years from the date of last activity. The department shall have unlimited access to all expenditure and programmatic records. All costs will be reasonable, allowable, allocable, and documented. In general, the department will accept three or more responses to meet and establish price reasonableness. The following items are examples of unallowable expenses (please note that this list is not all inclusive and is presented for example purposes only): Candy Food Lobbying Refrigerators Banquets Alcohol Microwave Ovens Catering Decorations Parties Coffee Pots Congratulatory Telegrams Gifts Flowers Promotional Items Refreshments Speaker Fees Plaques Page 2 of 8 DMS Policy No. 09-
Travel approved for use by the POIIWTF adheres to state rules and regulations. DMS Travel Policy, and forms required to complete by traveler for reimbursement, are provided on the department s Administrative Policy Web site: http://www.dms.myflorida.com/agency_administration/administrative_policies_and_proc edures_code_of_personal_responsibility/financial_management_services_f_a. No programs will be approved for POIIWTF funding that are required by the contract or ACA Standards. This includes programs outlined in responses to Invitation to Negotiate (ITN) documents and includes enhancement of programs required by the contract or ACA standards. All program certifications must be state or federally recognized. PROCEDURES By May 1 of each year, the contractor must submit a list of expenditures to be made from the trust fund for the next fiscal year to the bureau and be reviewed by the POIIWTF Committee. This application will be submitted on Attachments A, B, & C. Each program proposal will be submitted with separate attachments and accompanied by a budget narrative explaining, in detail, the budget summary. Attachments will be submitted to the bureau via e-mail with a hard copy to follow with an original signature on Attachment A from the warden for each proposed program. Attachment A is the cover page which includes the warden s signature signifying that he/she believes the proposed program meets the requirements of statute, rules, and this policy. Attachment B is the program narrative. This should be no more than five pages long and include detailed information answering the evaluation criteria. Information should also be provided on how the program will be evaluated by the facility during the year, including a timeline. This information will be verified by the on-site contract monitor. Attachment C is the budget narrative and should include information detailing the items to be purchased and why they are needed to meet the program deliverables. All program proposals are added to the tracking log by the budget operations and management consultant and forwarded to the committee for review and final determination within thirty (30) days of the bureau s receipt. The POIIWTF Committee will make its recommendation to the secretary of the department to be considered by the legislature in the allocation of funds. In accordance with 60AA-203.101, Florida Administrative Code, planned expenditures must cover expenses for unique and innovative programs, items, or activities for the inmates at the privately operated facility. Proposed expenditures from the POIIWTF for contractually required programs will not be authorized. Page 3 of 8 DMS Policy No. 09-
The contractor must compile a report that documents the actual receipts and expenditures from the POIIWTF for the previous fiscal year, beginning July 1 and ending June 30, and provide such to the bureau by September 1 of each year. The program and financial status report shall include a summary of activities, deliverables, goals, and objectives as well as the associated costs. This shall be submitted and approved prior to final payment for the fiscal year by the bureau chief. Expenditures for operational cost and fixed capital outlay made from the POIIWTF must meet the guidelines of Section 945.215, Florida Statutes, and applicable terms of the contracts. Once authorized or approved, the vendor is responsible for contracting and supervising the construction of fixed capital outlay projects authorized by the legislature. All operations and fixed capital outlay projects and expenditures must be approved by the bureau. Expenditures made from the POIIWTF may not include items included in the contractor s response to the ITN, or required by the contract or ACA Standards. The contractor must develop and update, as necessary, with the approval of the bureau, administrative procedures to ensure proper accounting and internal control of the receipts and expenditures of the funds from the POIIWTF. The contractor shall have an independent audit of the POIIWTF account conducted on an annual basis and the results of the audit will be submitted to the bureau no later than February 1 of each year. The contractor must send a monthly report to the bureau of all deposits and expenditures made to or from the POIIWTF by the fifteenth (15 th ) of the month. All expenditures for approved programs must be submitted monthly. The bureau will review all receipts and reimburse the contractor for allowable expenditures for approved programs. The bureau may, at its discretion, require additional documentation during review in order to ensure expenditures qualify for reimbursement and are directly beneficial and efficacious to the objectives of program activities. The annual financial statement, prepared in accordance with GAAP and clearly distinguishing POIIWTF, shall be filed not later than July 1 of each year. The financial statement shall consist of, at a minimum: a statement of revenues, expenses, and statement of budgeted and actual expenditures (detailed by object code). Continued on next page. Page 4 of 8 DMS Policy No. 09-
EVALUATION CRITERIA The following provides the criteria on how the committee will make its recommendation to the secretary of the department for funding of programs by the POIIWTF trust fund. The committee reserves the right to accept and/or reference other criteria during its review process and is not limited by the items below. 1. Is this program required by the contract? 2. Would the requested funding affect an expansion or an enhancement of a program beyond what is already required by the contract? 3. Is the program required by an ACA Standard? 4. Would the requested funding affect an expansion or an enhancement of a program beyond what is already required by an ACA Standard? 5. Is this program unique and/or innovative? 6. Does this program have the potential to aid the inmates reintegration into society? 7. Is there an inmate/societal need for the skills being acquired by program participants? 8. Are the program activities independent of the operations of the facility and not being used to support the prison complex? For example, is this program being used to maintain the facility rather than providing the inmates with meaningful training for a potential career? 9. Does this program provide items to benefit the inmate population? 10. Does this program provide activities that benefit the inmate population? 11. Are the goals and objectives achievable? 12. Does the program narrative provide a well-formulated need? 13. Does the proposal explain clearly what work will be done? 14. Does the proposal explain clearly what items will be purchased? 15. Is there evidence that this program will significantly impact recidivism? DEFINITIONS Word/Term ACA Standards Bureau of Private Prison Monitoring (Bureau) Bureau Chief Definition The Standards for Adult Correctional Institutions (Fourth Edition, 2003) published by ACA The Department of Management Services Bureau of Private Prison Monitoring oversees the contractual requirements for the private correctional facilities. The chief of the Bureau of Private Prison Monitoring. Page 5 of 8 DMS Policy No. 09-
Word/Term Contract Manager Contractor DC Department GAAP ITN Privately Operated Institutions Inmate Welfare Trust Fund (Fund) Privately Operated Institutions Inmate Welfare Trust Fund Committee (Committee) Management Services Agreement, or Contract Definition The bureau employee who is primarily responsible for management and oversight of the contract Also responsible for evaluation of the contractor's performance of its duties and obligations pursuant to the terms of the contract. The contract manager is currently the bureau chief. The vendor or vendors under contract with the Florida Department of Management Services, Bureau of Private Prison Monitoring, to operate and manage a private correctional facility. The Florida Department of Corrections. The Florida Department of Management Services. Generally Accepted Accounting Principles A widely accepted set of rules, conventions, standards, and procedures for reporting financial information, as established by the Financial Accounting Standards Board. Invitation to Negotiate A competitive process whereby the department solicits for proposals offering to meet the needs of the State by providing a correctional facility. The contractor accounts in accordance with all applicable standards and DC rules and regulations. Funds in the POIIWTF may be appropriated annually by the Legislature for the benefit and welfare of inmates incarcerated in privately operated correctional facilities. The committee, acting under the current membership of the bureau chief, budget operations and management consultant, procurement operations and management consultant, finance and accounting representative, and the management review specialist is responsible for reviewing and approving or denying written, documented requests for reimbursement from the fund. The operation and management services contract, Include all attachments, exhibits, amendments and modifications between the department and the contractor. Page 6 of 8 DMS Policy No. 09-
Word/Term On-Site Contract Monitor Program Quality of Life Definition The employee or employees of the bureau who monitor the daily operations of the facility for contract compliance. Coordinate actions and communications between DC, the department, and the contractor. The on-site contract monitor is designated by the bureau. The on-site contract monitor is the official liaison between the bureau and the contractor on all onsite matters pertaining to the operation and management services of the facility. The proposed program, items, or activities that is(are) unique and innovative for the facility. These are not required in the contract with the contractor. These are the expenditures for the year that the contractor is requesting approval of. The following items should be considered when evaluating quality: Sanitation and hygiene practices Inmate exercise Access to mail, telephone and visitation Staff working conditions Inmate work assignments Continued on next page. Page 7 of 8 DMS Policy No. 09-
RESPONSIBILITIES Individual or Group Contractors On-Site Contract Monitor Committee Bureau Responsibilities Keep records of all expenditures for a minimum of five years. Submit program and financial status report by September 1 for previous fiscal year. Submit travel vouchers for all travel associated with POIIWTF programs. Submit program proposals by May 1 for expenditures to be made from the POIIWTF fund for the following fiscal year. Provide receipts for reimbursement associated with POIIWTF programs on a monthly basis to the bureau. Contract and oversee construction of fixed capital outlay projects approved by the bureau. Contract for an independent audit of fund yearly. Provide annual financial statement by July 1 yearly. Provide annual expenditures and program report by September 1 yearly. Review program progress and timeline for deliverables. Review receipts at request of bureau. Review program proposals within 30 days of receipt. Make recommendations to secretary for inclusion in the legislative budget request Reviews receipts monthly. Reimburses for approved program expenditures. ASSOCIATED ATTACHMENTS Attachment A Cover Page Attachment B Program Narrative Attachment C Budget Narrative Page 8 of 8 DMS Policy No. 09-