OAR 410-147-0380
Accounting and Record Keeping


General Requirements:


The following rules and regulations apply to clinics reimbursed under the Federally Qualified Health Center (FQHC) and Rural Health Clinic Program;


In cases of conflict between the rules contained in section (2) and (3) of this rule, section (2) will prevail over section (3);


FQHCs and RHCs must use the cost principles contained in Office of Management and Budget (OMB) Circular A-87 or A-122 to determine reasonable costs. Use the circular appropriate to your clinic;


Must adhere to acceptable accounting standards.


Rules and Regulations:


FQHC and RHC Administrative Rules;


The Division of Medical Assistance Programs (Division) General Rules;


Oregon Health Plan (OHP) Administrative Rules;


All other applicable Division provider rules.


Cost Principles for State and Local Governments, OMB Circular A-87 and A-122.


Each FQHC and RHC shall:


Maintain internal control over and accountability for all funds, property and other assets;


Maintain complete client documentation;


Adequately safeguard from duplicate billings or other routine billing errors;


Adequately safeguard all such assets and assure that they are used solely for authorized purposes;


Prepare Cost Statements (Division 3027) or Medicare Cost Reports for RHCs in conformance with:


Generally accepted accounting principles;


The provisions of the FQHC and RHC Administrative Rules; and


All other applicable rules listed in sections (2) and (3).


Maintain for a period of not less than five years from the end of the fiscal the year:


Cost Statement (Division 3027) or Medicare Cost Report for RHCs;


Cost Statement Worksheet (Division 3032);


A copy of the clinic’s trial balance;


Audited financial statements;


Depreciation schedules;


Overhead cost allocation schedules; and


Financial and clinical records for the period covered by the Cost Statement (Division 3027) or Medicare Cost Report for RHCs.


Maintain adequate records to thoroughly explain how the amounts reported on the Cost Statement (Division 3027) were determined. If there are unresolved audit questions at the end of the five-year period, the records must be maintained until the questions are resolved;


Adequately document expenses reported as allowable costs in the records of the clinic or they will be disallowed. Documentation for travel and education expenses must include a summary of costs for each employee stating the purpose of the trip or activity, the dates, name of the employee, and a detailed breakdown of expenses. Receipts must be attached for expenses over $25;


Prepare special work papers or reports to support or explain data reported on the Cost Statement (Division 3027) or Medicare Cost Report for RHCs for current or previous periods at Division’s request. These work papers/reports must be completed within 30 days of the Division request. An extension of up to 30 days may be granted if the request is made before the end of the original 30 day period. Extensions must be requested in writing;


Ensure that the Cost Statement (Division 3027) or Medicare Cost Report for RHCs is reconcilable to the audited financial records and encounters must be reconcilable to the Uniform Data Set (UDS) form or other reasonable data Division may request. If the Cost Statement (Division 3027) or Medicare Cost Report for RHCs cannot be reconciled, the UDS numbers will be used or other appropriate data sets as determined by Division;


Do not submit financial documentation to Division for FQHC or RHC sites that:


Are not designated as an FQHC or RHC, and/or;


Do not serve Medical Assistance Program clients.

Source: Rule 410-147-0380 — Accounting and Record Keeping, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=410-147-0380.

Last Updated

Jun. 8, 2021

Rule 410-147-0380’s source at or​.us