This letter transmits the new Title IV-E Fiscal Accountability rules that were promulgated in order to comply with the fiscal accountability provisions of House Bill 448 that was signed into law by Governor Bob Taft on July 6, 2000. The law became effective on October 6, 2000 and mandated, among other requirements, the establishment of rules governing procedures for fiscal accountability for Public Children Service Agencies (PCSA), Private Child Placing Agencies (PCPA), and Private Noncustodial Agencies (PNA).
The new rules also reflect the recommendations issued in June 2000 by the Child Welfare Reform Shareholders Group, and address the systematic weaknesses in the fiscal system that were identified in the Auditor of State's Child Protective Services audits.
Also included in this transmittal is Appendix A which contains a sample contract that ODJFS has developed for counties to use or adapt for use when purchasing foster care from private agencies. A Title IV-E agency may use the sample contract or develop its own contract. The sample contract may be downloaded from the ODJFS internet website http://www.state.oh.us/ODJFS/ocf/ive.stm.
The expected effective date of the enclosed rules is December 1, 2001. A brief explanation of each of the new rules appears in the following table.
| OAC Rule Number | A Brief Explanation of Proposed Changes |
|---|
| 5101:2‑33‑19 (New) |
This rule sets forth the penalties ODJFS may enforce against PCSAs, PCPAs and PNAs for their failure to comply with procedures involving fiscal accountability. There are two classes of penalties:
The first class imposes a penalty for initial failures and requires the provider to develop a corrective action plan.
The second class is for subsequent failures or failure to comply with the corrective action plan. This provision authorizes ODJFS to take the following action:
(1) for PCSAs, ODJFS may take any action permissible under 5101.24 of the Ohio Revised Code;
(2) for PCPAs and PNAs, ODJFS may cancel the provider's Title IV-E rate or revoke the provider's license. Cancellation of the Title IV-E rate precludes IV-E reimbursement. ODJFS will resume the Title IV-E rate effective on the first day of the month following the date of compliance. However, there will be no retroactive adjustment to the period of time the provider was out of compliance.
|
| 5101:2‑47‑23.1 (New) |
This rule sets forth the requirements that a PCSA must establish a system of contracts and contract monitoring when purchasing foster care from private providers. Each contract shall include the following minimum requirements:
scope of services to be provided,
annual independent audit of its Title IV-E Cost Report,
definition of allowable costs,
record retention requirements,
invoicing procedures specifying the per diem cost and reimbursement associated with delivery of services,
procedures and time frames for submitting progress reports for each child,
requirements specifying the providers responsibility to participate in the child's treatment plan,
requirement of the adherence to specific accounting procedures,
requirement regarding the use of funds,
beginning and ending date of the contract, and
appropriate remedies for breach of contract.
ODJFS has developed a Model Contract for counties to use or adapt for use when purchasing foster care from private providers.
|
| 5101:2‑47‑26.1 (New) |
This rule sets forth the following cost report monitoring requirements:
cost report filing requirements,
desk review process,
record retention requirements,
related party disclosure requirements, and
development of a single cost report form to report costs reimbursable under Medicaid.
|
5101:2‑47‑26.2 (New)
|
This rule sets forth the Title IV-E cost reports annual audit requirements.
The audits must be conducted in accordance with Government Auditing Standards and shall be filed with the cost report.
For PCPAs and PNAs, the audits shall be performed by an independent public accountant. The qualifications for the independent public accountant and the audit procedures to be applied will be published in an ODJFS Title IV-E Audit Manual and Title IV-E Work Program.
ODJFS will also conduct quality control reviews of the independent audit report that it receives.
|
INSTRUCTIONS
The following chart depicts what materials are to be removed from the Family, Children and Adult Services Manual (FCASM) and what materials are to be inserted in the FCASM
| LOCATION | REMOVE AND FILE AS OBSOLETE | INSERT/REPLACEMENT |
|---|
| MANAGEMENT AND ADMINISTRATION | | |
| Fiscal Management and Administration | |
5101:2‑33‑19 (AFTER 2-33-18)
5101:2‑47‑23.1 (AFTER 2-47-23)
5101:2‑47‑26.1 (AFTER 2-47-26)
5101:2‑47‑26.2 (AFTER 2-47-26.1)
|
| TRANSMITTAL LETTER INDEX | | |
| Transmittal | Transmittal Letter Index Starting with No. 105 |
Transmittal Letter Index Starting with No. 105 |
| | |
FCASMTL No.110 |
Appendix A
Click here to view the Sample Contract for PCSAs and Providers of Child Placement and Related Services.