OSA/AAA Financial Directors’ Quarterly Meeting
Summary Notes
Participants:
OSA STAFF:
Holliace Spencer
Eric Berke
Steve Betterly
Jan Bowlin
Dan Doezema
Sherri King
Dee Lamb
Laura McMurtry
Hema Malavia
Scott Wamsley / AAA Attendees:
1A: Tony Geisz
1B: Erin George, Joel Gottsacker, Sandra Carter
1C: Kishori Gandhi, Monique James
2: Brenda Jones, Linda Powelki
3A: Stacy Salters
3B: Tom Horwath, John Gelletich, Karla Fales, Sherry Torres
3C: Laura Sutter, Kelly Beem
4: Jim Statzell
5: Becky Briscoe, Michelle Taylor
6: Amy Colletti, Nancy Weber
7: Lisa Pijaszek
8: Paul Willis, Jackie O’Connor
9: Karen Kelsey
10: Michelle Cronin
14: Chere Gardner
Welcome and Introductions:
Holliace Spencer welcomed the large group of AAA Financial Staff and AAA Contract Managers, reviewed the agenda and introductions followed. Mr. Spencer stated that OSA was pleased to have such interest in our quarterly meetings.
Mr. Spencer took this opportunity to inform the group that the Financial Assessment Guide developed by OSA had been requested by DCH Budget Office to use as a tool in development of an overall guide for the Department.
Targeted Case Management (TCM) - Jane Church presented an great overview of the program, the process and history of TCM and distributed a handout titled “Guidelines for Expenditure of Targeted Case Management (TCM) Reimbursement”. While this document had not been updated since 1999, it is still relevant to the process. Only Medicaid client costs are eligible for earning this TCM fund. Medicaid Waiver clients do not qualify in collecting TCM reimbursement. Ms. Church encouraged AAAs to maximize billing within the approved guidelines.
Ms. Church also distributed and reviewed the TCM portion of the OSA Care Management Performance Criteria (pages 23-26). The entire document is available on the OSA Forms and Reporting Site [206.114.54.236]. Notes to remember:
- Rate of reimbursement varies from year to year. FY 07 rate is .5638. Example: If total approved reimbursements costs for the quarter are $10,000, that amount is multiplied by .5638, which equals $5,638 and becomes the amount available for drawdown.
- Rate changes are effective 10/1/xx and 4th quarter reimbursements (10/1/xx – 12/31/xx) are made at the new FY rate.
TCM reimbursement timing per Pam O’Farrell of DCH, Budgets & Contracts Division 4/23/07 and process guidelines for OSA follow:
DCH prepares the department’s federal report, which is submitted 30 days after the end of the quarter
(Jan 31, Apr 30, July 31, and Oct 31). Staff prepares another report 45 days after. That means that generally, the journal vouchers for the revenue occur between 45-60 days after the end of the quarter.
Based on the general guides, we have prepared an example with best estimate of timing of this whole process using the most recent billing cycle as the example:
2nd Quarter ending 12/31/06 (corrected) -
oReport for Federal Medicaid amount due from OSA to DCH, Budgets & Contracts Division by 1/7/07 (usually one week following end of quarter).
- OSA prepares query for the quarter [10/1/06 – 12/31/06] and submits worksheet and cover memo to DCH.
- DCH prepares federal report for submission by 1/31/07.
- DCH prepares Journal Voucher notifying OSA of approved reimbursement for TCM 45-60 days from end of the quarter (est 5/15/07) with cover memorandum to OSA Director. OSA financial staff notified of approval.
- OSA prepares letters to AAAs notifying amount approved for draw (using cash request process) and OSA Director signs. Hard copy mailed to AAA Directors with cc to AAA financial staff and Care Management Program Director (est 5 working days)
- AAAs submit cash request to OSA (Hema) based on amount stated in approval letter from OSA.
- AAAs report expenditures and reimbursement on quarterly FSEP to OSA.
There were questions about the billing process, confusion about the 1st quarter of FY, which is actually 4th quarter of the prior FY. Because of the overlap, AAAs must establish accounts receivable to ensure reimbursements are booked against 4th quarter costs. There was concern and continued confusion over the way this process is handled by DCH.
There was so much discussion and so many questions that Mr. Spencer has asked that a workgroup be formed for further clarification and resolution. Mr. Spencer also stated that OSA would include development of an internal Gantt Chart or calendar for use in following the complex time schedule.
ACTION: Form workgroup for further discussion and procedures: Members included from AAAs - Chere Gardner (Region 14), Lisa Pijaszek (Region 7), Amy Colletti (Region 6), Kishori Gandhi (Region 1C). Workgroup will include Holliace Spencer, Jan Bowlin, Hema Malavia, Dee Lamb, Scott Wamsley and Jane Church as her schedule allows. Tentative Completion/Decision due date: June 30, 2007
Funding Formula Overview, Match Requirements - Hema Malavia prepared a power point presentation with handouts to explain the rationale and process of formulas for AAA allotment. Ms. Malavia reviewed the match requirements for services and administration as well as the Merit Award Trust Fund and Ombudsman differences. This was a brief overview and Ms. Malavia stated that she would be happy to talk to individuals on any further questions for further explanation on the formula information. Please contact her at (517) 373-1485 or email at .
Financial Status Expenditure Profile (FSEP) Updates– Scott Wamsley illustrated the most recent updates to the FSEP with a power point presentation and distributed copies to the group. Eric Berke added that these revisions were part of the ongoing course of action to provide consistency with the area plan grant budget. OSA is currently updating the fundable services matrix and revised budget instructions which will be available soon. The new version of the FSEP will be posted to the OSA Forms & Reporting Site. AAAs will be able to utilize the new version for submission of 3rd quarter expenditures (due July 16, 2007).
Some service categories on the revised FSEP were removed. These may have been categories that had been added as regional definitions and just migrated into the service category column. Caregiver information has been moved to a separate page and provides the opportunity for better data collection and expenditure reporting. Mr. Wamsley demonstrated some of the reporting detail now available for that fund source category.
Mr. Berke noted some of the changes to the area plan grant budget for page 2 of 3 in that we have tried to have coincide with the fundable services categories. Also, on page 3 of 3, there is a new box for detail under “Respite”. A question about how this affects the AAA Budgets for 2007 and the 2008 Area Plan Budget was asked.
-The SGA dated 4/11/07 was recently sent and included the carryover for FY2007. Budgets will need to be revised for FY2007 to include these figures once the revised area plan grant budget format is available.
-FY 2008 Area Plan Budgets will use the revised format.
Discussion about the formulas that are built into the FSEP related to recent situations when AAAs changed formulas in order to make the amounts coincide with their own worksheet version. Mr. Wamsley stated that causes problems and AAAs were asked to refrain from changing any formulas. If there is a question or concern about a formula or calculation, please contact OSA.
The OSA Secure File Drop has been operating very well for the most part. This mechanism has allowed a faster, more secure method for submission of files and sharing of information within OSA. There was a misunderstanding about submission of only certain pages of the FSEP where a change had been made. However, it was discovered that because the pages are linked, the formulas and calculations were corrupted and made no sense. All changes, revisions, corrections to any part of the FSEP requires that the entire FSEP be submitted through the OSA Secure File Drop. A notation or file extension can be included in the title. Revisions and corrections should show the revision or correction date.
REMINDER: A signed original FSEP is still required for submission to OSA (Hema Malavia).
ACTION: The revised FSEP will be sent to selected AAAs for testing and comment Update will be given at July 2007 AAA Financial Directors’ Meeting.
2006 Michigan Aging Information System – NAPIS Client & Service Report (April 2007).
Mr. Wamsley distributed the 2006 NAPIS report and a power point presentation. He briefly reviewed the highlights of the report and spoke about how useful this information has been in light of budget issues. There was discussion and lots of interaction with the group who found the report very impressive. The 2006 NAPIS report is available on the OSA website effective immediately.
2006 Expenditure Analysis - Eric Berke discussed the policy and results from the 2006 review and analysis for Title IIIB priority services requirements. He reviewed the efforts made by AAAs to rectify the underspending in priority services.
Title IIIB/Legal Services - Recent change in the requirement for expenditure of IIIB/legal services was changed. The Commission on Services to the Aging approved the decision to raise the minimum percentage for legal services expenditures from IIIB Services to 6.5%, and dropped the requirement for maintenance of effort. Mr. Berke noted that OSA worked with AAAs to make the 2006 expenditure analysis a smooth process which will be repeated for 2007 expenditure analysis.
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Title IIID/Medication Management - The IIID/Medication Management expenditure amount is required by the feds based on a percentage of the total IIID award. The notice to AAAs is later than usual since the FY 2007 federal award only arrived recently (mid-April). Last year we received the notice was received February.
Mr. Berke noted that only a couple of AAAs will be affected by the policy change per Transmittal Letter #2007-131 which states that when an AAA fails to meet the required minimum expenditure, the amount of the shortfall will be added for expenditure in the following fiscal year. This is the process that OSA will follow with the Title IIID/Medication Management funds which increases the 2007 expenditure requirement to include the 2006 shortfall. Mr. Berke also noted that OSA will be offering some innovative and effective suggestions that may assist AAAs in spending these funds appropriately. Additional information will be forthcoming.
AAA Board Member Travel Policy – Jan Bowlin informed the group that travel regulations and reimbursement rate policies for board member for all travel, meals, lodging and so on has been added as an assessment question. This issue will continue to be part of the yearly fiscal assessment questionnaire.
Ms. Bowlin will advise AAAs of any specific information as needed.
Other Questions, Issues:
-Dee Lamb discussed STNHO format and instructions, which have been updated and will be added to the revised FSEP.
- Mr. Lamb discussed the information regarding local revenue sources. Medicaid denies local resources unless they are a governmental entity and have control over the funds. This is from the federal regs for Medicaid.
- The question was raised about funding going directly to DCH/Medicaid – must flow through AAA based on Older Michiganians’ Act.
- Question was raised about due date of 14th of each month. FSEP is due the 15th and since this is part of the FSEP, do they send twice – once on the 14th for STNHO and again on the 15th for FSEP? Is it separate? OSA would like the report by the 14th if the report is submitted on the 15th, it would not be considered late. OSA will look into revising the due date to the 15th for the STNHO. Further questions should be directed to Mr. Lamb at (517) 241-4503 or .
-Discussion about electronic signatures for FSEP, Cash Requests, etc.
- Mr. Spencer indicated that OSA would review and develop a policy on electronic signatures for FSEP and Cash Requests. Agencies should continue with the current process until a new policy is issued.
ACTION: Holliace Spencer will bring to OSA Management for discussion on process, procedures, and implementation. Update at July 2007 quarterly meeting.
- Next quarterly meeting July 2007.
Meeting adjourned at 12:15 p.m.
J. Bowlin
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