This letter serves to address the modifications made to the Title IV-E/FACSIS payment system to implement policy establishing the Adoption Assistance Pass Through Program. (Reference: Family, Children and Adult Service Procedure Letter No. 29 and Family, Children and Adult Services Manual Transmittal Letter No. 17). This letter gives technical instructions on 1.) how to input data to the system, 2.) how the system will process the data and 3.) what the system's outputs will be. As such, we request that a copy of this material be forwarded to technical staff within the agency responsible for the Title IV-E/FACSIS payment system.

1.)Input of Information

There are two means of inputting information to the system. First, the Title IV-E Auxiliary Payment Authorization form (ODHS 1659) can be utilized. Instructions for its use and completion can be found in the Forms Section of the Family, Children and Adult Services Manual. Please keep in mind that underpayments, by definition, may be authorized for cases in which payment was previously issued for a lesser amount than for which the recipient was eligible. For reporting an underpayment, enter the difference between the previously claimed amount and the amount that should have been claimed. If a recipient has received full payment for a benefit period, no matter what system paid the benefit, do not claim any amount through FACSIS and the ODHS 1659.

Secondly, the FACSIS Payment Authorization Event 338 can be utilized for recurring benefits. Once a benefit level has been established via a signed Adoption Assistance Agreement, the Public Children Services Agency (PCSA) must transmit the following elements of the Payment Authorization Event: "Effective Date", "Monthly Maintenance Amount" and Difficulty of Care" equal to "None".

The net result of these procedures will be the pass through of the federal portion of an AA payment above $250. (The state will continue to match federal payments up to $250). One exception to this procedure will be for the subpopulation of children who have been designated dual eligible.

Prior to January 13, 1992, 34 counties established approximately 1230 children eligible for both Title IV-E Adoption Assistance and the State Adoption Maintenance Subsidy (dual eligibles). Dual eligibility was eliminated for new adoption cases as of January 13, 1992. In order to maximize the use of federal Title IV-E funds, these counties who have utilized both programs must convert the payment sources by September 1, 1993.

Procedures for converting dual eligible children are outlined in Attachment I. After the dual eligible cases have been converted, use the instructions in the attachment to input the Title IV-E payment amount.

2.)Processing of Payments

If a child is eligible only for the Title IV-E program, payment will be processed as follows:

The benefit level minus $250 (threshold of federal/state funding) with the difference multiplied by the current federal medical assistance percentage (FMAP) to calculate the federal pass through portion.

For example, assume the benefit level is $275.

a.)$275 - $250 (state share) = $25 x 60.25% (current 1992-1993 FMAP rate = $15.06 (federal pass through share).

b.)Warrant will be issued to recipient for $250 + $15.06 or $265.06.

c.)The PCSA will be responsible for issuing a warrant to the recipient for the non- federal share of the amount beyond the threshold or $25 x 39.75% or $9.94.

3.)Output of Information

The system will continue to generate either a warrant to a recipient or an Error Report (1659 Auxiliary System Error Report or FBI Interim Error Report) to the PCSA if a warrant cannot be produced. As described in the example above, the warrant will be the federal share of the amount listed in the 338 event or on the 1659 auxiliary payment system plus the nonfederal share up to $250.

Additionally, the system will also generate an Auxiliary Payroll (FB1017RA) if payment information is submitted via an ODHS 1659. The FBI017RA has been expanded to report not only the warrant amount but also the amount of the PCSA's obligation to the recipient. (See attached for sample of new format).

Finally, the system will continue to generate an Adoption Disbursement Journal (FB1003RB) to report recurring benefits issued from FACSIS information. This report has also been expanded to show the PCSA's obligation to the recipient.

Example:A benefit of level of $400 would equal:

a.)$400 - $250 (state share) = $150 x 60.25% (current 1992-1993 FMAP rate) = $90.38 (federal pass through share)

b.)Warrant will be issued to recipient for $250 + $90.38 = $340.38.

c.)The PCSA's non-federal share to be paid to the recipient in a warrant issued by the county is $150 x $39.75% = $59.62.

Processing of the ODHS 1659 for pass through payments is currently in place.

NOTE:Caution should be taken in submitting ODHS 1659s requesting regular adoption assistance benefits and pass through benefits, since duplicate payment requests could result in an error message.

The recurring process for the pass through payments is in place to process information entered by September's cutoff for October's benefit issuance.

Any questions about the processing of pass through payments as described in this procedure letter should be directed to your district office social services coordinator.