Transcript Integrated Provider Network New Provider Orientation

Milwaukee County
Department of Health &
Human Services (DHHS)
2007 Purchase of Service
Contracts Orientation
Presented by:
Dennis Buesing – DHHS Contract Administrator
Wes Albinger – DHHS Contract Services Coordinator
Randy Iding- DHHS Accounting Coordinator
Overview of 2007
Purchase-Of-Services
Contract & Changes
Presented By:
Dennis Buesing, DHHS Contract Administrator
January 18, 2007
Summary of Changes
SECTION TEN - INDEMNITY & INSURANCE
Paragraph A: Indemnity from copyright and patent
infringement language added as a separate paragraph.
Paragraph B: Coverage language added to include:
malpractice, errors and omissions.
Automobile insurance requirements statement added.
Statement regarding professional liability added.
Types of Insurance Coverage: Working Out of Home Office
Exclusions to “additional insured” endorsement updated.
Evidence of insurance coverage to be furnished on or
before the date of renewal.
Insurance underwritten on a Claims-Made Basis.
Identifies when insurance “binders” will be accepted
January 18, 2007
Summary of
Changes…..contd.
Insurance Requirement:
Auto Liability: required for all agency
vehicles (owned, non-owned, and/or
hired). Coverage: 1 million per accident
Employees of Providers using personal
vehicles to transport Clients/
participants, or for any other reason
related to the contract shall have
Automobile Insurance providing the
same liability limits as required of the
Network Provider
January 18, 2007
Summary of Changes…..cont’d.
Insurance Requirement (Cont’d):
Commercial General and/or Business Owner’s
Liability: Required of ALL Providers and must
include premises and off premises liability
coverage
Professional Liability: If the services provided
constitute Professional Services, Provider shall
maintain Professional Liability coverage (i.e. if a
license or certification is required to perform the
service). Includes Certified/Licensed Mental
Health & AODA Clinics and Providers. Coverage:
1MM/3MM
January 18, 2007
Summary of Changes…..cont’d.
Insurance Requirement (Cont’d):
Upon Renewal: Provider shall furnish County
annually on or before the date of renewal,
evidence of a Certificate indicating the
required coverage (with the Milwaukee
County Department of Health & Human
Services named as the “Certificate Holder”)
Binders are not acceptable except during
preliminary application period
Failure to comply with insurance
requirements may result in suspension or
non-renewal of contract
January 18, 2007
Summary of
Changes…..contd.
SECTION NINETEEN - PROHIBITED PRACTICES AND
REQUIRED DISCLOSURES
Section rewritten re. Campaign contribution
restrictions associated with Milwaukee County Code of
Ethics - Chapter 9.
SECTION TWENTY - CERTIFICATION REGARDING
DEBARMENT & SUSPENSION
Debarment By Milwaukee County – 2 Yr. Minimum
Period of Debarment (New Section)
SECTION TWENTY-THREE – CRC PLAN
Language modified/rewritten
January 18, 2007
Budget & Other Final Submission Items
2007 Purchase of Services Revenue &
Expenses Report
2006 Revenue & Expenses Report
Issues
January 18, 2007
Budget and Other Final
Submission Issues
Providers using Old Forms, or modifying current
forms.
Providers using Initial Submission numbers for
Total DHHS Request, vs. the numbers approved
by County Board. This affects forms 1, 3, 3S, 4,
4S, 5, 5A and 6.
Providers reporting Milwaukee County’s share of
the program only, versus the total program,
typically on Forms 1 or 5. (i.e. Forms don’t agree
with Total Program Expenses, Form 3)
January 18, 2007
Final Submission Items cont’d
Providers reporting only on programs applied
for, versus all agency programs, Form 5.
Lack of Agreement between total clients to
be served on the Client Characteristics chart
and Form 1.
Not Properly filling up Form 5 ( Row 9200
Allocated Costs), and Form 6, (Total
Allocated Costs should agree with Form 6 &
include all Indirect Costs to be allocated).
Omission of IRS form 990 for Non Profit
providers.
January 18, 2007
Changes in Allowable Costs
The Annual audit report shall contain a budget
variance and reimbursable cost calculation for
each program contracted. (refer format)
Costs allowable under State and Federal allowable
cost guidelines that exceed the approved program
budget by the greater of (1) 10% of the specific
budget line item, or (2) 3% of total budgeted costs
are deemed unallowable. You can remedy excess
variance by submitting revised budget & obtaining
approval by DHHS prior to end of contract yr.
(Extended until deadline for final billing, Jan. 26, 2007)
Final billing should include revised budget. (Refer to
Section 4 Reporting Requirements Pg 113 of Tech Requirements Booklet)
An annual audit report that omits information or
doesn’t present line item information utilizing
classifications as per Form 3 will place Contractor out
of compliance with the contract.
January 18, 2007
2007 Purchase of Service
Revenue & Expenses Report
2007 Purchase of Service Revenue & Expense Report has
been revised. (http://www.milwaukeecounty.org/display/router.asp?docid=15483)
No More Macros. No buttons to hide columns or switch
between summary and detail as in last year’s forms. New
selection boxes added (e.g. partial or final invoice, period of
contract, budget – original, revised or amended).
New Tabs added last year for uniformity and detail of items
requiring further explanation:
Exp-Details TAB – to enter all the expenses;
Units TAB – to enter units and multiple rates within program;
Equipment TAB – to report all equipment over $500
purchased with county funds; and
Travel TAB – to report detail of employees’ travel expenses.
2007 Professional Services Expense Report has also been
revised. (http://www.milwaukeecounty.org/display/router.asp?docid=15483)
January 18, 2007
Common Errors in 2006 Revenue &
Expense Reporting
Failure to submit by the end of the fifth working day of the
month following the month in which services were delivered.
Timely submission of required reports is a scored item in the
proposal review process, and failure to submit required
reports in a timely fashion can reduce agency scores on
"Administrative Ability" by up to 33%.
Improper use of email subject line. (e.g. Division, Agency,
Program & Month). Instructions detailing the proper use of
the subject line are detailed in the "Instructions" tab
included with the template.
Sending reports email addresses other than
[email protected]
Combining of line items-a common error is combining line
items 7100, employee benefits, and 7200, payroll taxes.
January 18, 2007
Common Errors… Contd.
Inaccurate approved budget figures - approved
budget for the program should reflect the format and
amounts in your final submission of Form 3.
Budgeted “Net Request” should agree with the
County Contract amount on Attachment 1. (i.e.
budgets should balance & not have net unfunded
requests!)
Reporting estimated versus actual expenses. All
expenses should be supported with general ledger
entries. (mandated by fed & state costs principles)
Reporting expenses for line items with no approved
budget for that line item. (will not be paid)
Combining multiple programs into 1 R/E statement.
January 18, 2007
Common Errors… Contd.
Reporting expenses for line items for which the
YTD total exceeds the greater of 10% of the
prorata budget for the line item or 3% of the total
prorata approved program budget prior to
receiving approval of revised budget.
Reporting only the Milwaukee County purchase
contract portion of the program, versus the
whole program. This applies to expenses as well
as units.
January 18, 2007
Common Errors… Contd.
Not entering approved budgeted units on the
“Units” tab
Entering the incorrect, or no unit rate on the
“Units” tab. (Unit rate should equal
“Absenteesm Rate” on contract Attachment
1)
Itemizing units by different funding sources
on the "Units" tab. All units should be
reported together, except in the case of
different services with different rates within a
program, such as Supportive Living Options.
January 18, 2007
Audit and Account Requirements
Maintaining Financial Records
General Information on Allowable
Costs
Audit Waiver Procedures
Audit Review Issues
January 18, 2007
Who Must Have an Audit?
Audits are required by State Statute if the care & service purchased
with State funding exceeds $25,000 per year
Statutes allow the Dept. to waive audits. Audits may not be waived
if the audit is a condition of state licensure, or is needed to claim
federal funding (e.g. Group Foster Care or CCIs)
Statutes require audits to be performed at least every other year.
County contracts typically require annual audits
Standards for audits are found in DHFS/DWD/DOC Provider
Agency Audit Guide, 1999 Revision (on line at
www.dhfs.state.wi.us/grants)
Non-profit providers that receive $500,000 or more in federal
awards must also have audit performed in accordance with OMB
Circular A-133 Audit of State, Local Governments, and Non-Profit
Organizations. Fed audit requirements are for an annual audit
January 18, 2007
What Must the Audit Contain?
Opinion on the Financial Statements and all
Supplementary Schedules
Report on Compliance & Internal Control (I/C)
Based on Audit of Financial Statements
Performed in Accordance with GAS and PAAG
If applicable, Report on Compliance with
Requirements Applicable to Each Major Federal
Program and I/C over Compliance in
Accordance with OMB Circular A-133
Summary of Auditor’s Results and Schedule of
Findings and Questioned Costs & Copy of
Management Letter, if any
Corrective action plan for all current-year audit
findings related to County funded programs &
Management’s response to each audit
comment and item identified in the
Management Letter.
January 18, 2007
What Other Schedules are
Required?
Schedule of Expenditures of Federal & State
Awards
Per Contract, Schedule of Program Revenue &
Allowable Cost by Funding Source, and by
Contract, or program/facility within a contract (If
program receives revenue from more than 1 funding
source, all funding sources must be listed
separately)
If applicable, Incorporated Group Home/Child
Caring Institution Supplemental Schedule
Nonprofit providers paid on a unit-times-unit-price
contract, Reserve Supplemental Schedule
For-profit providers, Schedule of Allowable Profits
January 18, 2007
Allowable Costs & Allowable
Profits or Reserves
Per State Statute, ultimately, all agreements
with Milwaukee County DHHS for client care
& services paid with dept. funding are cost
reimbursement contracts
For-profit providers may retain up to 10%
in profit per contract; 7½% of allowable
costs, plus 15% of net equity (Allowable Cost
Policy Manual, Section III.16)
Nonprofit providers paid on a unit-timesunit-price contract may add up to 5% of
contract amount in excess revenues to
reserves each yr., up to a cumulative
maximum
of
10%.
January 18, 2007
Allowable Costs & Allowable
Profits or Reserves
The County will not fund a program’s
cumulative prior year’s deficits with current
year funding (i.e. a program cannot have a
negative reserve balance).
The County does not have to allow either a
profit or reserves to providers who do not
include a Schedule of Allowable Profits, or
Reserve Supplemental Schedule with their
audit
January 18, 2007
Other Allowable Cost Issues
Generally interest expense, except for
purchase-money mortgages to purchase real
estate, or equipment is not an allowable
cost. Interest paid under Working Capital
Loans, a line of credit or refinancing to pull
money out of a property is not an allowable
cost.
Generally, advertising expense, except for
costs associated with hiring and recruiting, is
not an allowable cost
Alcohol, Entertainment, Contributions &
Donations and repayment of audit recoveries
and other debt, are never an allowable cost
January 18, 2007
Allowable Cost & Related Party
Allowable Cost Rules under rental agreements
with Related Parties contain additional restrictions
Allowable rent expense under related party leases
may not exceed the actual costs to the related
party with whom title vests. (Generally, mortgage
interest, real estate taxes, insurance,
maint./utilities & depreciation)
Rental expense under sale lease back
arrangements are only allowable to the extent of
expense which would have been incurred had title
to the property remained vested with the renter
Per contract, the auditor must disclose related
party rental arrangements, rent paid to the related
party, the related party’s actual expenses on the
property, & the amount of unallowable rent on
each property charged to any contract with
Milwaukee County
January 18, 2007
Maintaining Financial Records
Both Federal and State contracting guidelines
require provider agencies to maintain orderly books
and adequate financial records
Maintain a uniform double entry accounting system
and a management information system compatible
with cost accounting and control systems.
Providers should maintain an accurate and up-todate general ledger and timely financial
statements for management & board members
Financial Statements must be prepared in
conformity with accounting principles generally
accepted in the U.S. (GAAP) and on the accrual
basis of accounting. Contractor must request,
and receive written consent of County to use other
basis of accounting in lieu of accrual basis of
accounting.
January 18, 2007
Maintaining Financial Records
Amounts recorded in the general ledger should be
adequately supported by invoices, receipts or
other documentation
Providers should maintain a separate cost center or
dept. in their general ledger for each contract, or
program/facility within a contract
Whenever possible, costs should be charged
directly to a contract, all other costs should be
allocated using a reasonable and consistent
allocation method and supported by an Indirect
Cost Allocation Plan
Providers must not commingle personal and
business funds. A separate checking account
should be established & providers should not use
personal credit cards for agency business
All Provider agencies should maintain and adhere
to a board approved, up-to-date Accounting Policy
& Procedures Manual
January 18, 2007
Audit Waiver
Statutes allow the Dept. to waive audits. Audits may not be
waived if the audit is a condition of state licensure, or is
needed to claim federal funding (Group Foster Care or CCI).
Waiver request can only be entertained if agency does not
need to have an audit according to Federal Audit requirement.
Waivers need to be approved on case by case basis by
regional office based on a risk assessment ( Funding
<$75,000 is considered low risk)
DHHS has been approving Audit Waivers for Fee for Service
contracts mainly on basis of economic hardship
In case of small residential care providers ( Family Group
Home and AFH) county has the authority to grant a waiver.
Waiver Form is available at the bottom of the web page:
http://milwaukeecounty.org/display/router.asp?DocID=9853
January 18, 2007
January 18, 2007
Common Errors or Omissions
Audit indicates issuance of Management
Letter, but agency fails to submit letter &
management’s response
Failure to submit corrective action plan when
audit discloses Finding or Questioned Costs
Failure to report all DHHS Programs
separately by Contract, or program/facility
within a contract
Failure to identity all funding sources on
Sch’l of Program Rev. & Exp’s (all funding
sources must be listed as a separate line
item)
January 18, 2007
Errors or Omissions cont’d
Nonprofits - Failure to provide Supplemental
Reserve Schedule for all programs or contracts
Failure to submit audit in a timely manner (results
in Admin. Probation & inability to renew contract)
Failure to submit written Extension requests
Failure to submit written Waiver requests
Failure to submit evidence of Insurance renewal
in a timely manner
Audits are sent to wrong address
Audit confirmation are sent to wrong address
January 18, 2007
Names & Address for Submissions
Submit Audits to:
Dennis Buesing
DHHS Contract Administrator
1220 W. Vliet St., Suite 109
Milwaukee, WI 53205
Ph:414-289-5853
Submit Audit Confirmation Requests to:
Robert Graveen
DHHS Accounting
1220 W. Vliet St., Suite 109
Milwaukee, WI 53205
Ph:414-289-6036
January 18, 2007
Civil Rights Compliance Plan
Requirements
January 18, 2007
Civil Rights Compliance (CRC)
All recipients of Federal and/or State
funds are required to submit either a Civil
Rights Letter Of Assurance (LOA) or a
Civil Rights Plan for their agency
The Equal Employment Opportunity
certificate is a separate requirement and
does not qualify as a CRC document.
January 18, 2007
CRC (Cont’d)……..
Agencies with 25 or more employees AND
awarded at least $25,000 in federal, state &
county funds are required to submit a full CRC
plan
Agencies with fewer than 25 employees
AND/OR receive less than $25,000 in funding
may opt to submit a Letter of Assurance instead,
which includes AA, EO and LEP policies
Agencies who subcontract are also required to
ensure the subcontractor maintains CRC
requirements
January 18, 2007
OTHER REQUIRED ITEMS (ATTACHMENTS)
FOR SUBMITTING WITH THE CRC LOA
Required Items
Attachment 1:
AA EO in Employment Policy
Attachment 2:
Form DOA-3607
Approval to be in Vendor
Directory
Form DOA-3024
Request for Exemption for
Submitting AA Strategies
for achieving a balanced
workforce
Form DOA-3023
Vendor Subcontractor List
January 18, 2007
Profit & Nonprofit Entities
Required
Not Required
Not Required
Not Required
CRC (Cont’d)……..
New CRC plan requirements for years 2007-2009
have been posted at DWD and DHFS web sites.
LOA Instructions & Templates are available at:
http://dwd.wisconsin.gov/dws/civil%5Frights/plans0708/lo
a_contents_page.htm
CRC Plan Requirements & Templates are available at:
http://dwd.wisconsin.gov/dws/civil_rights/plans0708/doc/p
lan_07_09.doc
Plan instruction and resources are available at
http://dwd.wisconsin.gov/dws/civil_rights/plans_instructions.htm
Training webcasts are available at:
http://dhfs.wisconsin.gov/civilrights/Index.HTM
January 18, 2007
Wisconsin Civil Rights
Compliance Officer
Questions may also be directed to:
David Duran, CRC Officer
PO Box 7850
One West Wilson Street, Room 561
Madison, WI 53707-7850
[email protected]
Phone: (608) 266-9372
Fax: (608) 267-2147
January 18, 2007
Accounting
Suggestions
Presented By:
Randy Iding, Accounting Coordinator, DHHS Accounting
January 18, 2007
Accounting suggestions
Items DHHS Accounting reviews for before
authorizing proper and timely payments:
R & E Report Format and others:
Use 2007 RE report forms.
Make sure the correct division is checked.
Make sure the correct month is selected.
Backup must match the request.
Make sure contact info is correct.
Don’t put Text in a numeric field.
January 18, 2007
Suggestions…...Cont’d.
Make sure you use the unit count and unit rate(s)
as specified in the Attachment 1.
The program name must agree with that shown on
the Attachment 1.
If budgets are revised and/or amended use the
correct item drop down menu selection in the RE
report to identify the change.
If estimates instead of actual amounts are being
reported. Please pick the correct item from the
drop down menu on the RE report. Use only actual
amounts for the final report.
January 18, 2007
Suggestions…...Cont’d.
DHHS pays on cumulative basis , the Lowest
of the :
•
•
•
Net Expenses (expenses less revenue)
Net Unit amount ( unit x unit rate less
revenue)
Pro rata contract amount.
DHHS usually adjusts the advance payment
in the last two months of the contract. In the
case of under-spent contracts, adjustments
for the advance may be made sooner.
January 18, 2007
Suggestions…...Cont’d.
Please Submit your RE report timely as it takes
Central Accounting about 2 weeks to issue a
check from time of submission to CA plus add
another week from time of submission for review &
processing by CSC & DHHS Accounting.
If Vendor information changes such as name,
address, tax ID #, etc. Please inform the CSC at
the earliest as they have to submit a form to
Central Accounting before payment under a new
name, etc. can be made.
Remember, Last date for submission of final RE
Report for 2006 is January 26, 2007.
January 18, 2007
Reporting Of Units
DSD Agencies should submit the
electronic Form 533 to report units. A
copy of the form is available at the net
http://county.milwaukeecounty.org/Contract
Mgt15483.htm
Please email form 533 to :
[email protected] attention of
Ms. Debra Turzai.
A Copy shold also be submitted to
DHHS Accounting along with monthly
R/E report :
[email protected]
January 18, 2007
Accounting Contact Info:
Randy Iding
(414) 289-6105
Howard Felix
(414) 289-6183
(Billing Supervisor)
[email protected]
[email protected]
Robert Graveen
(414) 289-6036 [email protected]
(Audit Confirmations)
Paula Dills
(414) 289-6465
(Process Payments)
January 18, 2007
[email protected]
BHD Contact info:
Paul Radomski
Walter Laux
(414) 257-7493
(414) 257-7436
[email protected]
[email protected]
Chuck Sigurdson (414) 257-7361 [email protected]
Rochelle Landingham (414) 257-7337 [email protected]
January 18, 2007
DCSD Contact Info:
Eric Meaux
(414) 257-7789
Dave Emerson
(414) 257-7284 [email protected]
Jim Sponholz
(414) 289-5778 [email protected]
January 18, 2007
[email protected]
DSD Contact Info:
Charlotte Williams (414) 289-5898 [email protected]
Wes Albinger
(414) 289-5871 [email protected]
Virgil Cameron
(414) 289-5954 [email protected]
January 18, 2007
ESD Contact info:
Judy Roemer-Muniz (414) 289-6692 [email protected]
Jim Sponholz
January 18, 2007
(414) 289-5778 [email protected]
Thank you for your
participation!
Have a Great Day!

January 18, 2007
Thank you for your
participation!
Have a Great Day!

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