ProtectOhio is a child welfare demonstration project operated under enabling authority found in section 1130 of the Social Security Act. The demonstration project began October 1, 1997, and its duration, research objectives, and composition are governed by an agreement executed jointly by HHS and ODJFS. The purpose of this transmittal is to establish a separate accounting structure to ensure accountability for ProtectOhio funding. Details are outlined in new rule 5101:9-6-25 of the Administrative Code which replaces the previous rule 5101:9-6-25.

Each PCSA that is a member of the demonstration project shall establish a sub account within the PCSA general ledger into which the county will record capitation receipts and the required non-federal share. Disbursements shall also be recorded in this sub account.

The Title IV-E waiver provides new flexibility, but no new money. Under the demonstration, Title IV-E foster care maintenance (FCM) funds are advanced as a capitation rather than reimbursed.

Capitation funds may be expended in whole or in part without a corresponding expenditure of their associated non-federal share. The non-federal share required for the capitation payment may be expended, in part or in whole, without a corresponding expenditure of the capitation funding; except that such non-federal funds cannot be used to meet any other federal matching requirement so long as they remain present in the fund, account, or accounting mechanism as noted above.

Upon completion of each federal fiscal year (FFY), ProtectOhio counties may transfer the balance of any remaining capitation funding, and any associated non-federal share funding, attributable to the completed FFY to the children services fund established in section 5101.14 of the Ohio Revised Code. Any capitation funding that is transferred will be considered to be fully earned at the point of transfer.

Administrative Procedure Manual sections 6660 through 6663 are obsolete and replaced by the attached amended rule 5101:9-6-25 of the Administrative Code. Administrative Code and Administrative Procedure Manual information may also be accessed at: http://emanuals.jfs.ohio.gov.

Questions regarding family service agency responsibilities should be directed to your fiscal supervisor or the Bureau of County Finance at (614) 752-9194.