Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care...

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Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/15 1 Presenters: John Sellen, Northstar Care Theresa Hill, SSIS Sue Nelson, SSIS Alexia Kjos, SSIS Laura Arleth, SSIS Deb Jensen, Former Financial Operations Division John Glisczinski, Scott Leon Anderson, Ottertail

Transcript of Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care...

Page 1: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Northstar Care II – Fiscal Reports and

Begin Fiscal Reconciliation

AMSSA 2015 – Northstar Care For Children – Session II

6/12/15 1

Presenters:

John Sellen, Northstar Care

Theresa Hill, SSIS

Sue Nelson, SSIS

Alexia Kjos, SSIS

Laura Arleth, SSIS

Deb Jensen, Former Financial Operations Division

John Glisczinski, Scott

Leon Anderson, Ottertail

Page 2: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

NC4C Session #2 Topics1. Overview of Session #2

2. Northstar Care Fiscal Reconciliation Concepts

3. Northstar Care Fiscal Reconciliation Inputs Concepts

4. Inputs: Fiscal Reporting by Agencies

5. Inputs: Fiscal “Reporting” by DHS

6. Inputs: Historic Data

7. Reporting and Processing Schedule

8. Resources and Questions

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Page 3: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Overview of all Three Sessions These three sessions are designed to work

together, each building on the last But you can stop after the second and still have

something worthwhile Session #1 included an overview and some review,

with a special focus on proofing fiscal reports Session #2 focuses on inputs into the Northstar

Care Fiscal Reconciliation process: fiscal reports, DHS expenditures, historical data, etc.

Session #3 goes in-depth into the process and outputs of Northstar Care Fiscal Reconciliation

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Page 4: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Overview of Session #2 Today Our Session #2 today will start with Northstar

Care Fiscal Reconciliation concepts We introduce a simplified 5-county model We use that model to illustrate the three most

important types of inputs:Fiscal ReportsDHS “Reporting”Historic Data

We end with the planned processing schedule

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Page 5: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

NC4C Session #2 Topics1. Overview of Session #2

2. Northstar Care Fiscal Reconciliation Concepts

3. Northstar Care Fiscal Reconciliation Inputs Concepts

4. Inputs: Fiscal Reporting by Agencies

5. Inputs: Fiscal “Reporting” by DHS

6. Inputs: Historic Data

7. Reporting and Processing Schedule

8. Resources and Questions

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Page 6: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Northstar Care Fiscal Reconciliation Concepts

Counties and tribes pay about the same amount as they would have paid without Northstar Care

Northstar Care is more expensive Additional federal funds and state funds pay for

these extra phase-in costs Avoid anomalies and distortions Trend forward costs from 2011-2014 historical

data Use the two fundamental calculations

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Page 7: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Trends in 2011-2014The nonfederal portion of permanency

expenditures (Adoption Assistance, RCA, and MnPD) went up slightly 2011-2014

From 2009-2012, the nonfederal portion of foster care expenditures went down

But from 2012-2014 (most of the 2011-2014 period), the nonfederal portion of foster care expenditures went up

We trend this data forward

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Page 8: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

State/Local Shares to BeginTrending the nonfederal portion of all of

these expenditures forward, our preliminary estimates show that in the absence of Northstar Care, there would have been a split like this:40% state60% local

If that is borne out, that’s where Northstar Care will start

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Page 9: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

State/Local Shares Adjust for Phase-in

As Northstar Care phases in, the state share will slowly increase

Preliminary estimates show by 2019 a split like this:44% State share56% Local share

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Two Fundamental Calculations

This 40/60 split (or whatever it turns out to be) is used in the first of the two fundamental calculations

Two fundamental calculations:

1. State/Local Share Calculation

2. Proportionate Share Calculation

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Page 11: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

State/Local Share CalculationThe first calculation compiles the

nonfederal portion of all expenditures by DHS and all county and tribal agencies

This really big number is split between the state share and local share

This uses the 40/60 split (or whatever the figures turn out to be)

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Done First to Avoid Cost Shifting

The state/local share calculation is done first to prevent cost shifting from the state to local agenciesThe state/local share calculation will

either be done for all agencies together, or perhaps separately for all the counties and then for the AICWI tribes

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Page 13: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Local Proportionate Share Calculation The second fundamental calculation is the

Local Proportionate Share Calculation It starts with the entire nonfederal local

share from the first calculation and splits this big number among all the agencies Or we might be doing it separately for the counties and for

the AICWI tribes

In either case, the split is based on each agency’s average proportion from the 2011-2014 historical data

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Invoices & Payments

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At the end of the process we know: The total amount of payments issued by the agency

during the quarter

The total Title IV-E revenue for the quarter

The agency share for the quarter

If the agency issued more than their share DHS sends money for the State Share of Foster Care

If the agency issued less than their share DHS invoices the agency for the Local Share of

Permanency

InvoicePay $$

Page 15: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

NC4C Session #2 Topics1. Overview of Session #2

2. Northstar Care Fiscal Reconciliation Concepts

3. Northstar Care Fiscal Reconciliation Input Concepts

4. Inputs: Fiscal Reporting by Agencies

5. Inputs: Fiscal “Reporting” by DHS

6. Inputs: Historic Data

7. Reporting and Processing Schedule

8. Resources and Questions

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Page 16: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Northstar Care Fiscal Reconciliation Inputs

Inputs include: Historical data 2011-2014, trended forward Current expenditures by your agency, by

other agencies, and by DHS Current Title IV-E earned by your agency, by

other agencies, and by DHS Adjustments to avoid anomalies and

distortions

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Historical Data 2011-2014

Historical data is important: It’s easy to see how important the

historical data is to the Northstar Care Fiscal Reconciliation process

The historical data is the basis for both of the two fundamental calculations

You’ve had a chance to request adjustments to avoid anomalies and distortions

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Page 18: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Current Expenditures Current expenditures come from fiscal reports: The Child Foster Care Report The RCA Report The Minnesota Permanency Demonstration Project

(MnPD) Report DHS equivalent fiscal “reports”

Hint: Proofing tabs on reports, are very important to the Northstar Care Fiscal Reconciliation process: You have a chance to correct errors for four quarters prior

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Page 19: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Current Title IV-E Earnings By Federal Financial Participation (FFP) Rate: The Child Foster Care Report uses the FFP

Rate to calculate Title IV-E earnings When DHS pays Title IV-E, it nets off child

support and the Title IV-E recoveries entered on the Child Foster Care Report The Northstar Care Fiscal Reconciliation uses the

Title IV-E Revenue before child support and Title IV-E recoveries are netted off

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Page 20: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Adjustments to Avoid Anomalies & Distortions

DHS is directed by statute to avoid anomalies and distortions

Adjustments can be made to avoid anomalies and distortions

Examples of adjustments include:Historical data adjustmentsState/local split adjustmentsProportionate share adjustments

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Page 21: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

NC4C Session #2 Topics1. Overview of Session #2

2. Northstar Care Fiscal Reconciliation Concepts

3. Northstar Care Fiscal Reconciliation Input Concepts

4. Inputs: Fiscal Reporting by Agencies

5. Inputs: Fiscal “Reporting” by DHS

6. Inputs: Historic Data

7. Reporting and Processing Schedule

8. Resources and Questions

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Page 22: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

State of Disco-Tech (aka DHS)

For our example, our pretend state, Disco-Tech, has only 5 agenciesOur agency is the

Sunshine Agency

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Page 23: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Northstar Care Fiscal Reconciliation ExampleOur scenario uses all 5 agency’s inputs,

Disco-tech (DHS) state inputs, and historic dataUses simplified, very small numbers The way it works is the same, but it’s easier to see

the results if we look at just 5 agencies with small numbers, instead of 80+ agencies

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Page 24: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Agency Inputs

What Is Included In Northstar Care Fiscal Reconciliation process? Local agency information from three reports:

RCA ReportChild Foster Care Report (CFC Report)Minnesota Permanency Demonstration Project

(MnPD) Report MnPD counties include Carlton, Dakota, Hennepin &

Ramsey

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Page 25: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Relative Custody Assistance (RCA) Report The RCA program has closed

Children still receiving RCA benefit payments are in the Legacy program

The RCA Report is due quarterly Eligible amounts on the RCA Report will be

included in the Northstar Care Fiscal Reconciliation

RCA reimbursement will now be rolled into the Northstar Care Fiscal Reconciliation process

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Page 26: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

RCA Report

What is INCLUDED? RCA claims that are reported quarterly

Eligible amounts based on the RCA Worksheet in effect for the service dates

What is EXCLUDED? Payments not claimed on the RCA report

No RCA Worksheet in effect for the dates of RCA service

Non-eligible amounts on RCA claims For example, the amount of the payment exceeds the

Monthly RCA Payment Amount on the RCA Worksheet in effect for the service dates

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Page 27: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

RCA Report

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Page 28: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Avoid the Fiscal Implications of “Bad Data”

Run proofing Verify the child still lives with relative

custodian Verify the address of the relative custodian Verify the RCA Worksheets continue to be

completed

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Page 29: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

RCA Report & Commissioner Transitions

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Children receiving the RCA benefit payments will either:

Age out of the RCA program, or become ineligible for RCA, or…

Be selected by the Commissioner to transition to Northstar Kinship Assistance (NKA)

Commissioner Transitions to NKA Children under age 16 may be selected to transition to

Northstar Kinship Assistance Special consideration is given to children with high

assessment needs, and to sibling groups to transition all of the siblings within the same home at the same time

AMSSA 2015 – Northstar Care For Children – Session II

Page 30: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

RCA Commissioner Transitions These transitions are initiated by DHS

DHS will contact your agency when we are ready to initiate each group of your kids for commissioner transitions

Coordination at the local level is critical!Select a point person to coordinate the county end of

the process

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Refer to the Worker Mentor meeting Information page on County Link for training

materials on Commissioner Transitions.

Page 31: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Commissioner Transitions - RCA New RCA Report

Proofing Message for Commissioner’s Transitions Coming in a future

release When the Transition

Status is “Transition complete,” RCA Payments for service dates after the “Create Date” CANNOT be reimbursed

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Page 32: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Child Foster Care Report (CFC Report) This report replaces the Title IV-E Abstract Report

and allows local agencies to claim and receive Title IV-E reimbursement

This report also allows local agencies to report costs that will be included in the Northstar Care Fiscal Reconciliation, which also includes costs for non-Title IV-E children

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Page 33: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Child Foster Care Report

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Page 34: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Child Foster Care Claim

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For more detail on Child Foster Care Report, refer to V15.1.5 release training materials

on SSIS Fiscal CountyLink training site.

Page 35: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Child Foster Care ReportIncluded for Title IV-E Claims

Payments for Title IV-E eligible children in licensed foster care settings:

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Family Foster HomesGroup Residential

FacilitiesChildren’s Residential

Treatment Facilities Initial ClothingChildcare

Supervised Independent Living (SIL)

SIL settings do not need to be licensed

Educational TransportationRule 4 Placing Agency

Admin Fees

Page 36: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Child Foster Care ReportIncluded for Northstar Claims

Both Title IV-E & non-Title IV-E eligible children Payments for family foster care homes

BRASS Service 180 & 181 Basic per diem + Supplemental per diem

Educational Transportation costs

Includes licensed homes Includes unlicensed homes for the first 6 months of

placement in the home

Payments for extended foster care in supervised independent living (EFC-SIL) settings BRASS Service 188

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Page 37: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Child Foster Care ReportExcluded from Northstar Claims Payments for group foster care settings

BRASS Service 171, 183, 185, & 483

Maintenance payments for unlicensed homes after 6 months of placement in the home

Initial Clothing Additional Childcare - BRASS Service 214 Rule 4 Placing Agency Admin Fees

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Page 38: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Minnesota Permanency Demonstration Project (MnPD) Report

What is INCLUDED? All MnPD payments Reported Quarterly

What is EXCLUDED? Nothing from the

MnPD report is excluded

Counties involved with MnPD have been reporting the necessary elements since it started in 2005

No changes are planned at this time for MnPD reporting

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Page 39: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Treating Fiscal Reports as Inputs: Maximizing RevenueIn particular:

Make sure all applicable information is entered in SSISDo proofing to include all eligible expenditures on the

Child Foster Care Report and the RCA ReportComplete Title IV-E eligibility determinationsComplete the licensing process within the first 6

months of placementKeep MAPCY assessments up-to-date

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Page 40: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

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Current Quarter Agency Inputs – All 5 Agencies

Agency ExpendituresQ1 2015

Family Foster Care and EFC-SIL(CFC Report)

Relative Custody Assistance (RCA Report)

MN Permanency Demonstration Project (MnPD Report)

TOTAL Agency Issued Payments

BeeGee $49.00 $3.00 $0.00 $52.00

Pointer $146.00 $3.00 $0.00 $149.00

Sledge $144.00 $12.00 $0.00 $156.00

Summer $5.00 $0.00 $0.00 $5.00

Sunshine $334.00 $8.00 $22.00 $364.00

TOTAL All Agency Issued Payments

$726.00

Page 41: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

NC4C Session #2 Topics1. Overview of Session #2

2. Northstar Care Fiscal Reconciliation Concepts

3. Northstar Care Fiscal Reconciliation Inputs Concepts

4. Inputs: Fiscal Reporting by Agencies

5. Inputs: Fiscal “Reporting” by DHS

6. Inputs: Historic Data

7. Reporting and Processing Schedule

8. Resources and Questions

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Page 42: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

DHS InputsExpenditures IncludedAdoption Assistance

Legacy AA PaymentsNorthstar Adoption Assistance (NAA)

Payments

Kinship AssistanceNorthstar Kinship Assistance (NKA) Payments

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Page 43: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

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Current Quarter DHS Inputs – on behalf of all 5 Agencies

DHS ExpendituresQ1 2015

Adoption Assistance

Northstar Kinship Assistance

TOTAL DHS Issued Payments

BeeGee $49.00 $1.00 $50.00

Pointer $193.00 $0.00 $193.00

Sledge $108.00 $5.00 $113.00

Summer 9.00 $0.00 $9.00

Sunshine $190.00 $14.00 $204.00

TOTAL All DHS Issued Payments $569.00

Page 44: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

NC4C Session #2 Topics1. Overview of Session #2

2. Northstar Care Fiscal Reconciliation Concepts

3. Northstar Care Fiscal Reconciliation Inputs Concepts

4. Inputs: Fiscal Reporting by Agencies

5. Inputs: Fiscal “Reporting” by DHS

6. Inputs: Historic Data

7. Reporting and Processing Schedule

8. Resources and Questions

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Page 45: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

What is Determined From the Historic Data? Proportionate Share for each agency Total Agency Nonfederal Expenditures for

each agencyTrending Agency historic nonfederal portion forward

Total State Nonfederal Expenditures for DHSTrending DHS historic nonfederal portion forwardEstimated Extra Phase-in Costs

State/Local nonfederal share

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Page 46: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Determine the Agency Proportionate Share The Agency Proportionate Share is the 2nd

Fundamental calculation for the Northstar Care Fiscal Reconciliation Process

To determine the Agency Proportionate Shares: 1. Compile the historic data

2. Adjust as needed

3. Net off Title IV-E revenue

4. Compare the averages for each agency to the total amount

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Page 47: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Proportionate Share – Step 1

Compile the historic data for Foster Care Expenditures Includes calendar years 2011-2014Includes Federal Title IV-E revenueReview data and request any needed

adjustments

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Page 48: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Proportionate Share – Step 1Foster Care Expenditures Table: Total of 16 quarters Each agency column has two

rows at the bottom Formula for Average

Average of all 16 quarters for agency

Formula for Proportion Agency Average / TOTAL column

Average

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BeeGee expenditures represent a little more than 7% of the TOTAL,

Sunshine expenditures represents 47.5% or nearly ½ the TOTAL.

Page 49: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Proportionate Share – Step 2

Foster Care Expenditure Adjustments Table: Many agencies

requested adjustments Typically small

adjustments to do with coding errors, children supervised by Corrections with no Title IV-E Agreement/umbrella, etc.

Most adjustments were expenditure reductions, but a few were increases

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Page 50: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Proportionate Share – Step 2

Adjusted Foster Care Expenditures Table: The approved

adjustments are netted against the expenditures to derive the adjusted expenditures

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Proportionate Share – Step 2

MN Permanency Demonstration Project Expenditures: In Disco-Tech State,

only Sunshine county participates in MnPD

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Proportionate Share – Step 2

Foster Care + MnPD Expenditures: This amount needs to

be added to History Data

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Note: Once MnPD expenditures and Adjustments were added, the Proportion % have changed.

Sunshine county Proportion has increased from 47.53080% on table 1 to 47.88365%.

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Proportionate Share – Step 3

Federal Title IV-E Earnings (Foster Care & MnPD): These are the full FFP

earnings, not the amount net of child support, fees, and other recoveries that is actually disbursed to agencies by DHS

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Netting off Title IV-E earnings yields the Nonfederal Portion of total agency expenditures

Page 54: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Proportionate Share – Step 4Nonfederal Foster Care & MnPD Expenditures: The Proportion figures

of this table are the historic Proportionate Shares used in the Northstar Care Fiscal Reconciliation Process

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Note: After netting off Title IV-E, BeeGee & Sunshine Proportionate %’s have changed again.

Page 55: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Agency Proportionate Shares

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These % are used for the 2nd Fundamental Calculation – Agency Proportionate SharesHere are our Agency Shares for our scenarios

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Determine the Total Agency Nonfederal Expenditures

To determine the Total Nonfederal Expenditures:

1. Compile the historic data

2. Adjust as needed

3. Net off Title IV-E revenue

4. Trend the nonfederal expenditures forward

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Hint: The first 3 steps are the same for determining the Proportionate Share and Total Nonfederal Expenditures.

Page 57: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Determine the Total Agency Nonfederal Expenditures– Step 4

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The Northstar Care Fiscal Reconciliation process calls for the historic data to be adjusted based on trendsThe trend adjustments are at the aggregate level for all

agencies vs. the state share, not for each individual agency

Smaller agencies can have large swings in caseloads and expenditures, so instead the trends take statewide shifts into account

Page 58: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Determine the Total Agency Nonfederal Expenditures– Step 4

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Trending Agency Historic Nonfederal Forward: The trendline suggests that $600 is the expected nonfederal agency expenditures for the next

quarter This figure is used to represent Total Local Nonfederal Expenditures in determining the State/Local

Share (1st fundamental calculation)

Page 59: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Total State Nonfederal Expenditures

To determine the State Total Nonfederal Expenditures:

1. Compile the historic data

2. Adjust as needed

3. Net off Title IV-E revenue

4. Trend the nonfederal expenditures forward

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Hint: The first 3 steps are still the same…

Page 60: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

State Total Nonfederal Expenditures – Steps 1-3

DHS is the only relevant state entity Can be done on one table for all State

expendituresRCA

Prior to 2015 RCA was 100% reimbursed by DHS

Functions as a State expenditure for History

In 2015, RCA is an agency expenditure

MnPD

Legacy Adoption Assistance

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DHS State Expenditures: Formula for STATE

TOTAL column SUM of (RCA + MnPD

+ Non-Federal AA)

Almost done… need to trend DHS nonfederal amount forward

State Total Nonfederal Expenditures – Steps 1-3

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Trending DHS Historic Nonfederal Forward: The trendline

suggests that $380 is the expected nonfederal DHS expenditures for the next quarter

State Total Nonfederal Expenditures – Step 4

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Using the trendlines for the expected Nonfederal expenditures means the State/Local Share would be… State trendline = $380

State Share would be 39%

Agency trendline = $600Agency Share would be 61%

State/Local Share - 1st fundamental calculation

However, there is one more step before the State/Local share is complete!

Page 64: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

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Final step to calculate the State/Local Share: Need to estimate the extra phase-in costs

because Northstar Care is more expensive than the previous legacy programs In our example, the additional costs are estimated to be

$20That $20 is added to the Total State Nonfederal

Expenditures$380 + $20 = $400 Total State Nonfederal Share

Now can derive the State/Local Share

State/Local ShareUsed in the 1st Fundamental Calculation

Page 65: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

State/Local Share

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We now have the historic data input for the two fundamental calculations

HOORAY!!!!!!!!!

Page 66: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

NC4C Session #2 Topics1. Overview of Session #2

2. Northstar Care Fiscal Reconciliation Concepts

3. Northstar Care Fiscal Reconciliation Scenarios

4. Northstar Care Fiscal Reconciliation Inputs Concepts

5. Inputs: Fiscal Reporting by Agencies

6. Inputs: Fiscal “Reporting” by DHS

7. Inputs: Historic Data

8. Reporting and Processing Schedule

9. Resources and Questions

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NEXT

Page 67: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Reporting and Processing ScheduleThere are two different schedules:What’s in place now?

What are the plans for the future?

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Page 68: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Current Schedule in Place Fiscal reports are due the 20th of the FIRST

month after each reporting quarter January 20, April 20, July 20, October 20

DHS will process and pay Title IV-E reimbursements in the MIDDLE month February, May, August, November

Northstar Care Fiscal Reconciliation will take its own sweet time… Weeks and frankly even months after reports are submitted We’d rather get it right than get it fast

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Page 69: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Schedule for the Future Fiscal reports still due the 20th of the

FIRST month after each reporting quarter January 20, April 20, July 20, October 20

DHS will process and pay Title IV-E reimbursements in the MIDDLE month February, May, August, November

Northstar Care Fiscal Reconciliation will be completed in the LAST month of the quarter following the reporting quarter March, June, September, December

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Page 70: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Final Fiscal ReconciliationAs part of the usual Title IV-E processing,

DHS looks at the previous five quarters and makes all needed adjustments each quarter for all five of those quarters

Northstar Care Fiscal Reconciliation involves so many moving parts that it’s not practical to follow this model, essentially running the process five times for each quarter

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Page 71: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Fiscal Reconciliation Twice Instead, we plan to do the fiscal

reconciliation twice for each quarter: Once soon after the quarter endsA second and final time a year later

As part of this final reconciliation, an agency may receive a payment or an invoice It would only involve whatever net difference emerges

after everything has been finalized

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Page 72: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Twice is Twice as Nice If there are missing items,

errors or corrections for a particular quarter, they can be included in any of the subsequent quarter’s reports

However, they wait until the final Northstar Care Fiscal Reconciliation of the quarter in which they were paid

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Final Reconciliation Involves All Agencies & DHS Please note that the Northstar Care Fiscal

Reconciliation process involves all agencies, DHS and their data

Even if your agency made no changes, other agencies’ changes will likely have an impact on your agency’s final results for each quarter It may be small, but it will occurThat’s the nature of the process It’s just a little messy that way

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Page 74: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Thoughts From County Panel Members

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Page 75: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

NC4C Session #2 Topics1. Overview of Session #2

2. Northstar Care Fiscal Reconciliation Concepts

3. Northstar Care Fiscal Reconciliation Inputs Concepts

4. Inputs: Fiscal Reporting by Agencies

5. Inputs: Fiscal “Reporting” by DHS

6. Inputs: Historic Data

7. Reporting and Processing Schedule

8. Federal Title IV-E Processing

9. Resources and Questions

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Page 76: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

What is Covered in Session 3?

Session #3 goes in-depth into the process and outputs of Northstar Care Fiscal ReconciliationReview of ProcessGlimpse into “in process” views of SSIS

outputsDiscussion on how to make sense of

the outputs

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Page 77: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

Northstar Care For Children Resources

Northstar Policy Resources

Website CountyLink > DHS Program

Resources > Northstar Care for Children

Email [email protected]

Northstar Care Call Line 651-431-4485

SSIS Application Help Resources

Website CountyLink > DHS Program

Resources > DHS Systems & IT Updates > SSIS resources

SSIS Help Desk Email [email protected]

SSIS Help Desk Phone 651-431-4801

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Page 78: Northstar Care II – Fiscal Reports and Begin Fiscal Reconciliation AMSSA 2015 – Northstar Care For Children – Session II 6/12/151 Presenters: John Sellen,

QUESTIONS

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