1. (a) The books of account of a grantee must include a general ledger and records of original entry. If a grantee operates more than one residential child care facility, the grantee shall maintain separate books of account for each facility. A grantee's records of original entry must include

   1. (1) a receipts journal and accounts receivable ledger;
   2. (2) a cash disbursement journal and payroll journal; and
   3. (3) a general journal.

2. (b) A general ledger must include a summary by account classification of financial transactions as they have been recorded in the records of original entry. A grantee shall use a separate general ledger for the transactions of each state fiscal year. A grantee shall enter a transaction in the general ledger only if the transaction was first recorded in a book of original entry. For each transaction, the grantee shall record information in its general ledger that includes

   1. (1) the date;
   2. (2) a reference to the journal and page number where the transaction is recorded;
   3. (3) the dollar amount of the debit or credit from the transaction; and
   4. (4) the balance of the account.

3. (c) A receipts journal must include a chronological record of all receipts for collections. For each receipt the grantee shall record information that includes

   1. (1) the date;
   2. (2) the receipt number;
   3. (3) the payor;
   4. (4) the amount received; and
   5. (5) a classification of the amount by account number.

4. (d) For each bed in a facility for which the department has granted money, and for each child for whom the grantee provides services under an agreement with a party other than the department, the grantee shall maintain an account in its accounts receivable ledger and record information in that account includes

   1. (1) the date billed, if any;
   2. (2) the dates for which each amount receivable was earned;
   3. (3) the name of the individual for whom services were provided;
   4. (4) the person or governmental entity that is responsible for paying the cost of the services;
   5. (5) the date, amount, and source of each payment that the grantee receives;
   6. (6) the account balance; and
   7. (7) adjustments to the account.

5. (e) A cash disbursement journal must include a record of all of the grantee's disbursements. For each disbursement a grantee shall record information that includes

   1. (1) the date of the disbursement;
   2. (2) the check number;
   3. (3) the payee;
   4. (4) the amount of the disbursement; and
   5. (5) a classification of the amount by account number.

6. (f) For each disbursement for salaries, wages, or direct fringe benefits, a grantee shall record, in a payroll journal, information that includes

   1. (1) the employee name and the date of the disbursement;
   2. (2) the check number;
   3. (3) payroll period covered;
   4. (4) the gross amount of the payment;
   5. (5) deductions from payroll credits;
   6. (6) net pay; and
   7. (7) a classification of the disbursement by grant project, facility and account number.
7. (g) A general journal must include a record of financial transactions that cannot be properly recorded in another book of original entry. A grantee shall record a full explanation and reference for each entry in its general journal.
8. (h) A grantee shall use a bookkeeping system that allows auditors to trace general ledger entries to specific receipts and checks.

9. (i) A grantee shall keep the following subsidiary records:

   1. (1) earnings records and vacation and leave records for each employee;
   2. (2) a record of all terms of each transaction involving the sale, purchase, or rental of land, land improvements, buildings, fixtures or equipment, including the date, amount, and parties;
   3. (3) a log of all long distance telephone calls, showing the date, number called, person calling, and purpose of the call;
   4. (4) a record of all postage expenditures for purposes such as fund raising, that are not directly related to the provision of residential child care;
   5. (5) a schedule of fixed assets and related depreciation that separately identifies each asset for which the grantee claims reimbursement for use or depreciation costs;
   6. (6) a record of meals and lodging provided as taxable compensation to employees;
   7. (7) a record of all travel paid for by the grantee, including date, amounts spent, person traveling and relation of that person to the grantee, and purpose of trip; and

   8. (8) A separate record for the petty cash fund that includes

      1. (A) an account summary;
      2. (B) a cash count record;
      3. (C) petty cash vouchers for each disbursement;
      4. (D) receipts for payments out of petty cash; and
      5. (E) receipts for each time that the petty cash fund was replenished from the bank.

(Eff. 1/13/85, Register 93)

Authority: AS 47.05.010, AS 47.40.011, AS 47.40.031