Behavioral Health Standard 1.F – Financial Planning


The organization’s financial planning and management activities are designed to meet:

  1. Established outcomes for persons served.
  2. Organizational performance objectives.
  • Corporate Status


Budgets are prepared:

  1. Prior to the start of the fiscal year.
  2. That:
    1. Include:
      1. Reasonable projections of:
        1. Revenues.
        2. Expenses.
        3. Capital expenditures.
      2. Input from various stakeholders, as required.
      3. Comparison to historical performance.
      4. Consideration of necessary cash flow.
      5. Consideration of external environment information.
    2. Are disseminated, as appropriate, to:
      1. Personnel.
      2. Other stakeholders.
    3. Are:
      1. Written.
      2. Approved by the identified authority.
  • See budgets in “Plan Book”


Actual financial results are:

  1. Compared to budget.
  2. Reported to:
    1. Personnel.
    2. Persons served.
    3. Other stakeholders.
  • Executive summary at CQI Meeting.


Reviewed at least monthly.

  • CQI Minutes held monthly


The organization identifies and reviews, at a minimum:

  1. Revenues.
  2. Expenses.
  3. Internal:
    1. Financial trends.
    2. Financial challenges.
    3. Financial opportunities.
    4. Management information.
  4. Eternal:
    1. Financial trends.
    2. Financial challenges.
    3. Financial opportunities.
    4. Industry trends.
  • Budgets


Financial solvency, with the development of remediation plans if appropriate.

  • Budgets


If the organization has related entities, it identifies:

  1. Types of relationships.
  2. Financial reliance on related entities.
  3. Responsibilities between related entities and the organization, including:
    1. Legal.
    2. Contractual.
    3. Other.
  4. Any material transactions.
  • N/A


The organization:

  1. Implements fiscal policies and procedures, including internal control practices.
  2. Provides training related to fiscal policies and written procedures to appropriate personnel including:
    1. Initial training.
    2. On-going training.
  • Financial Planning & Funds Management
  • Program Director’s Orientation


If the organization bills for services provided, it conducts a documented review of a representative sample of bills of the persons served:

  1. At least quarterly.
  2. That addresses:
    1. Whether bills are accurate.
    2. Trends.
    3. Areas needing improvement.
    4. Actions to be taken.
  • Chart review rubric & Client records
  • Gold Star Post Payment Review Tool for Innovations, Residential, & Providers


The organization, if responsible for fee structures

  1. Identifies the basis of the fee structures.
  2. Demonstrates:
    1. Review of the fee schedules.
    2. Comparison of fee schedules.
    3. Modifications when necessary.
  3. Discloses to the persons served all fees for which they will be responsible.
  • Fee Policy
  • Admissions Agreement


If the organization takes responsibility for the funds of persons served, it implements written procedures that address:

  1. Identification of the role of the organization.
  2. How the persons served will give informed consent for the expenditure of funds.
  3. How the persons served will access the records of their funds.
  4. How funds will be segregated for accounting purposes.
  5. Safeguards in place to ensure that funds are used for the designated and appropriate purposes.
  6. When interest-bearing accounts are used, how interest will be credited to the accounts of the persons served.
  7. How account reconciliation is provided to the persons served at least monthly.
  8. How funds will be returned to the persons served upon transition/exit from the program.
  • Client Funds in Residential Services


The organization provides documented evidence of:

  1. An annual review or audit of the financial statements of the organization conducted by an independent accountant authorized by the appropriate authority.
  2. Any recommendations that resulted from the review or audit of its financial statements, if applicable.
  3. Management’s response to the recommendations, including corrective actions taken or reasons why corrective actions taken or reasons why corrective actions will not be taken, if applicable.
  • N/A