This regulation sets administrative standards for providers contracted with the Alabama Department of Mental Health and Mental Retardation (DMH/MR), covering financial reporting, subcontracting limits and approval, administrative cost caps (15%), subcontractor payment timelines, and continuous quality improvement (CQI) requirements. Providers must submit annual unqualified audits, obtain DMH/MR approval before subcontracting more than 10% of total funding, and ensure compliance with the applicable DMH/MR service division's certification standards. These are operational and fiscal governance requirements applicable across the department's contracted provider network.
View official sourceAla. Admin. Code r. 580-1-4-.05 - Administrative Standards For Providers (Non - 310) State Regulations Compare Providers must meet the following standards: (1) Providers must supply to the DMH/MR annually an unqualified prior year audit including such DMH/MR contracted funds allocated for subcontractors. (2) Providers when subcontracting shall provide to the DMH/MR a copy of the subcontract for approval prior to initiation. No Provider may subcontract more than 10% of their total DMH/MR funding without approval of the DMH/MR. (3) Providers may use no more than 15% of the DMH/MR contracted funds for administrative costs. Administrative costs include non-direct program costs and administrative costs to support, maintain, and administer the direct program services provided or contracted by the Provider. (4) Providers shall not charge an administrative fee to subcontractors providing services funded through DMH/MR. (5) Providers shall pay subcontractors within 15 working days of the receipt of contract funds from DMH/MR. (6) Providers shall establish a CQI system, which complies with the standards set forth by the DMH/MR, and shall encompass its subcontractor of DMH/MR services. (7) Providers shall ensure compliance with the specified DMH/MR service division's certification standards. Author: Department of Mental Health and Mental Retardation Notes Ala. Admin. Code r. 580-1-4-.05 New Rule: Filed December 5, 2001; effective January 9, 2002. Amended: Filed March 26, 2002; effective April 30, 2002. Statutory Authority: Code of Ala. 1975 , § 22-50-11 . State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare. No prior version found. State Regulations Toolbox