FCASPL 164 (Federal Reimbursement Increase for Title IV-E Foster Care Maintenance and Title IV-E Adoption Assistance Per the American Recovery and Reinvestment Act of 2009)
Family, Children and Adult Services Procedure Letter No. 164
April 3, 2009
TO: Family, Children and Adult Services Manual Holders
FROM: Douglas E. Lumpkin, Director
SUBJECT: Federal Reimbursement Increase for Title IV-E Foster Care Maintenance and Title IV-E Adoption Assistance Per the American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act of 2009 will increase federal reimbursement to Ohio's custodial agencies for children determined to be Title IV-E foster care maintenance eligible and reimbursable. The increased federal funds will provide a cost savings of local county funds which can be used for other child welfare purposes. Additionally, the Act will increase the federal reimbursement to Ohio's custodial agencies and to the Ohio Department of Job and Family Services for children determined to be Title IV-E adoption assistance eligible. The increased federal share will provide a cost savings of local county funds and State GRF used to support the adoption assistance program.

For both Title IV-E foster care maintenance and Title IV-E adoption assistance, the American Recovery and Reinvestment Act of 2009 increased federal funding by increasing the percentage of reimbursement by 6.2% for Title IV-E eligible youth in foster care and adoption. This increase raises the federal reimbursement percentage for these populations from 62.14% to 68.34% for the period of October 1, 2008 through December 31, 2010.

The Office for Children and Families (OCF) has already updated the FACSIS and SACWIS systems in order to accommodate the increased federal reimbursement percentage for warrants issued for foster care maintenance and adoption assistance service periods beginning May 1, 2009 and thereafter. County local share payments to adoptive providers should be calculated using the 68.34% FMAP beginning May 1, 2009 and thereafter. SACWIS generated local share payments for May 2009 and forward will be calculated using the 68.34% FMAP. No action is required by county users.

However, to accommodate the increased federal reimbursement due for foster care maintenance and adoption assistance for service periods October 1, 2008 through April 30, 2009, OCF is preparing the following with regard to foster care maintenance and adoption assistance:

Foster Care Maintenance

  • FACSIS: OCF staff will pull all payments/reimbursements for service periods October 1, 2008 through April 30, 2009, and calculate the correct federal reimbursement which should have been issued at 68.34%, then subtract the federal reimbursement that was issued at 62.14%, and send out a warrant for the calculated difference.
  • SACWIS: OCF staff will pull all payments/reimbursements for service periods October 1, 2008 through April 30, 2009, and calculate the correct federal reimbursement which should have been issued at 68.34%, then subtract the federal reimbursement that was issued at 62.14%, and send out a warrant for the calculated difference. OCF SACWIS staff and MIS staff will create a defect and complete data fixes for current reimbursement data issued at 62.14% for service periods October 1, 2008 through April 30, 2009, so the system shows reimbursement at the increased percentage of 68.34%.
  • ProtectOhio Waiver Counties: As ProtectOhio waiver counties cannot obtain the increased federal reimbursement percentage through normal billing processes, OCF has submitted a letter to DHHS/ACF seeking approval to increase the calculated FFY 2009 capitation payments by the 6.2% increase in the federal reimbursement percentage. If approved, OCF will submit a check equal to the increase for the seven month period October 1, 2008 through April 30, 2009 to all counties. For May 2009 through September 2009, each monthly payment will be increased to reflect one fifth of the remaining increase balance.

Adoption Assistance

  • FACSIS: OCF staff will pull all payments/reimbursements for service periods October 1, 2008 through April 30, 2009, and recalculate the correct state and local shares based on the increased percentage of 68.34%. We will send out warrants to reimburse the counties (local share) based on the increased federal share.
  • SACWIS: There will be no data fix. SACWIS staff and MIS staff will pull all payments/reimbursements for service periods October 1, 2008 through April 30, 2009, and recalculate the correct state and local shares based on the increased percentage of 68.34%. We will send out warrants to reimburse the counties (local share) based on the increased federal share.

For all non-ProtectOhio Waiver counties, the calculations above will be totaled and one warrant will be generated. For ProtectOhio Waiver counties, one warrant will be generated for the retroactive period for the increased capitation payment and an additional warrant will be issued for the federal increase in adoption assistance. OCF is currently working to finalize the additional federal reimbursement due to the counties. Once the calculations are completed, a subsequent procedure letter will be issued with the date the warrants will be disbursed.

INSTRUCTIONS:

The following chart depicts what materials should be inserted into the Family, Children, and Adult Services Manual (FCASM).

LOCATIONREMOVE AND FILE AS OBSOLETEINSERT/REPLACEMENT
Procedure Letters FCASPL No. 164