Welcome to the 2003-2004 Residential Treatment / Foster Care Rate Setting

1. Welcome to the 2003-2004 Residential Treatment / Foster Care Rate Setting **For Application Process & Time Study, Contact Aydlett Hunike (aydlett.hunike@ncmail.net) or (919) 855-3684 **For Program Issues, Contract Requirements or Payments, Contact Elsie Roane (elsie.roane@ncmail.net) or (828) 669-3388

2. 2003-2004 Foster Care and Residential Treatment Cost Reports 1) Facility Rate Cost Report Process 2) Time Study / Instructions / Definitions /Spreadsheet- Foster Care Service Activities utilized in the Time Study 3) Individual Facility (Cost Of Care) Rate - Formula Sheet for TITLE IV-E Allowable Cost 5) Certification of Allowable Recreation Expense Form 4) Allowable Costs Defined For IVE-Maximization of Federal Foster Care Funds 6) Residential Treatment And Foster Care Cost Report-2003-2004 Schedule “A” - Signature Certification of demographic information Schedule “A-1” - Multiple Facility Information Schedule “B” - Revenues Schedule “C” - Expenses Schedule “C-1” - Supplemental HRI-R Expenses for Residential Treatment Facilities 7) Instructions For Completing Cost Report

3. Policies And Rules Governing Foster Care • OMB circular A-87 • Federal policies ACYF - PR-82-01 and PR-82-02 - The general guidelines from these policies is that "the amount of state's payments for foster care maintenance payments shall be reviewed no less frequently than once every two years to ensure their continuing appropriateness. The review shall include examination of the costs of maintaining a child in foster care and the criteria for setting rates for foster care maintenance payments." Also "there shall be public participation in the review.” • Administrative procedure act rules in 10NCAC 41M - The general guidelines particular to rate setting is section .0007 Cost Containment which elaborates on the need for a cap to be established. • General statute 131D

4. FACILITY RATE COST REPORT PROCESS In order to have a facility rate,a facility must submit the following no later than the due date set (March 16, 2003) 1) RESIDENTIAL TREATMENT AND FOSTER CARE COST REPORT including: Schedule “A” application for cost of care, Schedule A-1 for Multiple Facilities Schedule “B” revenues, and Schedule “C” expenditures, (Schedule C-1 for HRI-R expenditures) 2) FACILITY (COST OF CARE) RATE FORM/S or FACILITY RATE WORKBOOK(Excel) used in computing TITLE IV-E Allowable Costsand must becompleted for each type of care for which a FACILITY RATE is being requested.

5. FACILITY RATE COST REPORT PROCESS- continued 3) DOCUMENTATION OF CHILD CARE DAYS. All submitted documentation must be totaled. Please attach a calculator tape if log is created manually. 4) AN AGENCY AUDIT with the required level of specificity, delineating allowable foster care costs. 5) CERTIFICATION OF ALLOWABLE RECREATION EXPENSE FORM signed and completed for each type of care.

6. FACILITY RATE COST REPORT PROCESS- continued 6) TIME STUDY PARTICIPATION - if a facility has a position(s) which perform social service activities. Once the cost figures are completed: • The administrative costs are distributed to the program(s) provided, based on the direct care costs of the respective program, compared to the direct care/program costs for the complete agency. • In addition to the direct program costs, is the portion of administrative costs and the adjustments for non-allowable social worker expenses. • The total program costs are then dividedby the program provided daysof service, resulting in a cost per day figure for the program.

7. FACILITY RATE COST REPORT PROCESS- continued • Two years of inflation are applied to the cost per day. • The respective inflated cost figures for each program of service, for all agencies applying for a facility rate, are presented at a meeting with members of the NC Children Services Association. • The association representatives then recommend a CAP rate for each type of program service. DSS Management then approves the CAP rates. • All programs with cost figures exceeding the CAP only receive the CAP rate. • All other agencies below the CAP rate receive the cost figure justified by their respective report. • Letters are sent to the Facilities indicating their new rates as well as a letter to the County DSS Directors.

8. Time Study - General Instructions • Federal regulations for the establishment of a Facility (cost of care) Rate include the requirement for staff who perform social services activities to participate in a month long time study each year at a prescribed time. • The purpose of the time study is to document social services activities that the federal regulations specify are either “allowable” or “non-allowable” IV-E FOSTER CARE REIMBURSABLE activities. • Federal guidelines emphasize that it is “not the title or position of the performer”, but rather “the [social services] activity being performed” that determines the staff who should participate in the time study.

9. Time Study - General Instructions -continued • Division of Social Services Foster Care Services Definitions are utilized for the time study in order for agencies to determine the staff who are required to participate and the tasks and activities that must be documented. • If any agency has questions about the staff who should participate in the time study, they should request consultation from the Division of Social Services.

10. A - NEW this year is the code A. It is used to allow for the inclusion of time/expense allocated to social service activities not detailed in O or Z such as expense for absences due to sickness or vacation. The Time sheets have been modified to capture this information. For example: IV-E Other Absences Total % Minutes A Day Z O A 1 employee went home sick 120 15 345 480 2 240 240 The remainder of this employee’s time was spent in task not expensed (allocated ) to social service activities. 3 360 120 480 End of Month Total720 135 345 1200 A Allocation%84.210526% 15.7894737% 100. % A Minutes Allocated290.52632 54.4737 345 End of Month Total1010.5263 189.474 1200 The Allocation section has been deactivated for the 2003-2004 reporting year.

11. Time Study - General Instructions -continued • Agency staff will collect the reports at the end of February. Retain a copy of the daily work sheets for your files and audit purposes and mail (paper originals) or email(excel) sheets to: • DHHS FC Rate Setting • Office of the Controller • 1050 Umstead Drive, Room 404 • 2019 Mail Service Center • Raleigh, North Carolina 27699-2019 • aydlett.hunike@ncmail.net

12. Time Study - Specific Instructions • The following Header Information has been preprinted for you: Please make as many copies of this as necessary to complete the Time Study. • ID - The identifying number (CCXXX-XX) which has been assigned to your agency for the purpose of the TIME STUDY and the RESIDENTIAL TREATMENT AND FOSTER CARE COST REPORT process, has been added to the Daily Time Sheet. This ID # must be on all Daily Time Sheets submitted. • Participating Agency Name - -The name of your facility/agency has been added to the Daily Time Sheet and must be on all Daily Time Sheets submitted. • Month/Year - This has been automatically entered on the header for each Daily Time Sheet and must be on all Daily Time Sheets submitted. • County - If the County Name is not entered on the Daily Time Sheet, please enter the County Name (where the facility is located) in the white box below the County header line on the Daily Time Sheet.

13. Time Study - Specific Instructionscontinued • The following Individual Employee data must be entered for each individual participating in the time study. Each participant will maintain a Worker Daily Report of Services Provided to Clients for each working day, for one full month (February 2003). 100% of paid time allocated to social service activity is logged. • Employee SSN - Enter the Social Security number of the employee preparing the report. • Employee Name –Enter the last name of the worker, who is completing the form, followed by a space, then the first and middle initial of the employee. • Line Number -Entries are pre-printed in this column for each employee page. Do not skip lines as you enter the data. Do not enter partial data on any line. • Day - Enter the day of the month for which time is being recorded. You may enter the number on the top line and arrow down to the last entry for the day. • Service - 222 has been pre-entered on the forms

14. Time Study - Specific Instructionscontinued • Minutes - Record the number of minutes spent in performing the activity, in no fewer than 15-minute increments and no less than 15 minutesegments. Values outside of the 15-minute increments will not be accepted. Be sure to enter All minutes that are worked. • Program - In the Program Code (PGM) column,enter one of the following codes to indicate whether the activity falls within the definition of an IV-E funded activity. • Program Code A = Other Activity / Absences • Program Code Z = IV-E Activity • Program Code O = Other Activity / Treatment • Activity - This is text -Use this column to briefly describe the activity. The activities identified by Program Code Z must be identified with enough detail to document that the activity fell within the definition of activities funded through Title IV-E.

15. Allowable Costs - For IVE-Maximization of Federal Foster Care Funds • The compliance requirements in the NC Division of Social Services "Cross-Cutting Requirements" in Section D (DSS-0) are applicable to this grant and are stated below. • A. Activities Allowed or Unallowed • Program funds can be used to pay for foster care and supervision, as defined in SSA-AT-78-21, ACYF-PA-82-1, ACYF-PA-82-2, ACYF-PIQ-87-02 and ACYF-CB-PA-97-01, which includes costs of daily care and supervision and some administrative costs for private agencies. Refer to the Family Services Manual, Volume I, Chapter IV, Child Placement, Section 1203: Foster Care Funding for allowable foster care maintenance costs. Non-allowable costs include costs associated with providing counseling and treatment, fund-raising expenses and bad debts. The ACYF source publications outlining allowable foster care costs for private child care agencies are available on the Internet at www.acf.dhhs.gov/programs/cb/ under “Policy and Funding Announcements.”

16. Residential Treatment and Foster Care Cost Reports- Manual Manual Processing:These forms and schedules can be printed, manually filled out and mailed in. Residential Treatment And Foster Care Cost Report-2003-2004 Individual Facility Rate Certification of Allowable Recreation Expense Form Annual Time Study

17. Residential Treatment and Foster Care Cost Reports- Automated Automated Processing:These forms and schedules can be downloaded, information entered directly into the forms with all values calculated, printed and manually mailed as well as electronically submitted. All signature pages must be submitted in paper format in order for original signatures to be retained in the DHHS Controller’s Office. New * Residential Treatment and Foster Care Cost Report application which includes all schedules. (Accesswith self-extracting zip file) Residential Treatment and Foster Care Cost Report application (Excel) Modified Individual Facility Rate Workbook (Excel) Certification of Allowable Recreation Expense Form (Excel) New * Annual Time Study (Excel)

18. Except for Time Study, all information, forms and schedules for completing the Residential Treatment and Foster Care Cost Report are available athttp://www.dhhs.state.nc.us/control/under Program Specific Information for: Look for Residential Treatment and Foster Care in the list to link to pertinent information.