WELCOME

Fiscal Training

Presented by the Department of Alcohol and Drug Programs (ADP)

CFTM 23 CADPAAC Fiscal Training March 23, 2010

My name is Jeffrey Trapnell Fiscal Analyst for Fiscal Management and Accountability Branch jtrapnell @adp.ca.gov

916-323-1819

How did I get here

• 14 years USN, USNR – Sailor of the Year, BM1, Instructor • International Sales and Marketing • Degrees in Accounting and Finance • Field and Project manager for AT&T • Advanced Degree in Economics • Dad

Job Description in mathematical terms

AGENDA

•

10:00 AM – Welcome and Theme

•

10:15 AM – Morning Session

– 12:10 PM – Lunch •

12:40 PM - Afternoon Session

•

3:50 PM – Evaluation and Closing

•

4:00 PM - Adjourn

CHANGE

It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.

(Charles Darwin, 1873)

The Morning

•

ADP’s Goldmine of Knowledge:

 References and Resources –  Where to go and who to talk to •

ADP Funding:

 It used to be funded that way last year  New Multi-Year Contracts, again?

•

Payments and Allocation:

 Operating within the squeeze  Encumbrances and Expenditures, Timeframes, and Methodologies

Splitting Lunch

• QFFMR - Yes we talk to FMAB / Cost Reports •

CalOMS Prevention / CalOMS Treatment –

• Yes there is a difference •

Drug Courts

• Not OTP / Not SACPA / Not JAG-Byrne • OTP money today and tomorrow • Audits - We know a few tricks ourselves • All about staff hours

Cost Reports, DMC Forms and SDMC P2

•

Cost Reports and Paradox:

 Throwing off life support and showing its value  I think the State owes me more money  Form Whisper – I think the forms talk to me •

Star date Twenty Ten, Captain’s Log:

 SDMC P2 - We have arrived  The legacy, the final throes of Bridge Resubmissions  Does it matter if it is a resubmission or replacement claim

Finale

• Questions and Answers • Evaluation • Adjourning

What have you done for me lately?

ADP WEB PAGES

http://www.adp.ca.gov/

Which link has my information

PUBLIC SERVICES SERVICE PROVIDERS

Veterans Addiction Treatment Alcohol Awareness Co-Occurring Disorders Criminal Justice Driving Under the Influence (DUI) Find Treatment Help Methamphetamine Initiative Problem Gambling Prescription Drug Misuse Women's Services Youth and Young Adults ADP Bulletins and Letters CalOMS Prevention CalOMS Treatment Certification for Counselors DATAR Drug Medi-Cal Billing Drug Medi-Cal Certification Licensing Negotiated Net Amount (NNA) Resource Center Screening and Brief Intervention (SBI) SBI Tool Kit Technical Assistance and Training

Additional link information

PUBLIC INFORMATION PROGRAMS AND STAKEHOLDERS

About ADP Comments and Complaints Contact ADP Contracting Opportunities: IFB/RFP/RFO Employment Opportunities at ADP Events Calendar Press Room Public Records Act Requests What’s New?

Advisory Groups Constituent Committees Continuum of Services System Re engineering Co-Occurring Joint Action Council Director’s Advisory Council (DAC) Governor’s Prevention Advisory Council (GPAC) HIPAA/Privacy/Security SACPA/Offender Treatment Program

But what about my needs?

• Fiscal, Cost Report and QFFMR information is found under the Negotiated Net Amount link • Drug Medi-Cal Billing information, Drug Medi-Cal Billing Manual and appropriate forms are found under the Drug Medi-Cal Billing link

Additional Web page links

• Information regarding the Code of Federal Requirement for patient confidentiality, Short-Doyle Medi-Cal Phase II information and appropriate companion guides can be found under the HIPAA / Privacy / Security link • Information regarding Treatment ADP’s home page.

CalOMS Prevention and CalOMS can be found within their specific links from • Drug Courts as well as OTP updates can be found under the Criminal Justice link .

Local Assistance Flow Chart 1

State of California - Local Assistance Funding Managed and/or Tracked by the Department of Alcohol and Drug Programs (ADP) ADP Funding Non-ADP Funding

Drug Medi-Cal Funding Non Drug Medi-Cal Funding See Chart #2 See Chart #3 See Chart #7

Local Assistance Flow Chart 2

Drug Medi-Cal (DMC) Funding Regular (Non-Perinatal) Perinatal Federal Financial Participation (FFP) 50% American Recovery and Reinvestment Act (ARRA) 11.59% State General Fund (SGF) 38.41% Federal Financial Participation (FFP) 50% American Recovery and Reinvestment Act (ARRA) 11.59% State General Fund (SGF) 38.41%

Local Assistance Flow Chart 3

Non Drug Medi-Cal Funding Substance Abuse Prevention and Treatment Block Grant (SAPT Block Grant) See Chart #4a FY 2011-12 See Chart #4 State General Fund (SGF) See Chart #5 Other ADP Funding See Chart #6

Local Assistance Flow Chart 4

Substance Abuse Prevention and Treatment Block Grant (SAPT Block Grant) (within Negotiated Net Amount [NNA] Contract) Female Offender Treatment Program Discretionary Adolescent/Youth Primary Prevention Set- Aside Friday Night Live Funding matrix for SAPT Block Grant through FY 2009 - 10 Club Live HIV Set-Aside Perinatal Set-Aside Special Projects Substance Abuse Treatment and Testing Accountability

Local Assistance Flow FY 2010 11

Funding matrix for SAPT Block Grant FY 2010 – 11 Substance Abuse Prevention and Treatment Block Grant (SAPT Block Grant) (within Negotiated Net Amount [NNA] Contract) Bold indicates combined funding allocations Female Offender Treatment Program Primary Prevention Set- Aside Discretionary / Substance Abuse Treatment and Testing Accountability HIV Set-Aside Perinatal Set-Aside Adolescent/Youth Special Projects Club Live and Friday Night Live

Local Assistance Flow Chart 5

State General Fund (within NNA contract) Regular (Non Perinatal) Perinatal Women and Children’s Parolee Services Network (funding received from California Department of Corrections and Rehabilitation [CDCR])

Local Assistance Flow Chart 6

Other ADP Funding (not included in NNA/DMC Contract) Access to Recovery (California Access to Recovery Effort) Drug Court Partnership Dependency Drug Court Comprehensive Drug Court Implementation ADP SGF Funding Provided to CDCR for parolee service activities

Offender Treatment Program

(Proposed to be eliminated in Governor’s FY 2010-11 preliminary budget)

Safe and Drug Free Schools and Communities

Funding eliminated in June 2011

Substance Abuse and Crime Prevention Act (Substance Abuse Treatment Trust Fund)

Residual funds only; subject to ADP SACPA Audit

Local Assistance Flow Chart 7

Non-ADP Funding Used for Alcohol and Other Drug Services Fees (General Client Fees, DUI Fees) County Funds (General County Funds) PC 1463.16 (Statham Funds) County Match (General County Match, OTP, CDCI, DCP, and DDC) Targeted Case Management/ Medi-Cal Administrative Activity Non County Revenue CalWORKs Administered by Dept of Social Services Insurance County Unrestricted Funds (DMC Only) Provider Unrestricted Funds (DMC Only) SB 920/921 (PC 1463.25/HSC 11372.7) Penal Code (PC) 1000 Private Industry Council (PIC)

ADP Local Assistance Funding Matrix Fiscal Year 2009 - 2010

DISCLAIMER

• Information included in this matrix does not relieve counties of any monetary match requirements mandated by State or Federal Law.

• The Department cautions counties and providers that violating State and Federal laws and regulations may jeopardize future AOD funding levels. Federal (SAPT Block Grant) Law prohibits the supplantation of SGF with Federal Funds.

SAPT Discretionary

Authority Summary of Allowable Expenses Summary of Restrictions / Not Allowable - Title 42, Chapter 6A, Subchapter XVII, Part B, Subpart ii, Sections 300x-21 through Section 300x-66 - HSC 11754 - CFR 45, Subtitle A, Part 96, Subpart L, Sections 96.120 through 96.137

These funds may be used for a wide range of activities to prevent and treat substance abuse and deal with the abuse of alcohol, the use or abuse of illicit drugs, and preventing the use or abuse of tobacco products. - See “General SAPT Block Grant Funding Information” for further restrictions - Can be used on loans for Resident Run Housing programs. - Cannot be used for stand alone tobacco treatment services.

SAPT Friday Night Live (FNL) Program

Authority Summary of Allowable Expenses Summary of Restrictions / Not Allowable - Title 42, Chapter 6A, Subchapter XVII, Part B, Subpart ii, Sections 300x-21 through Section 300x-66 - HSC 11754 - CFR 45, Subtitle A, Part 96, Subpart L, Sections 96.120 through 96.137

Funding used to prevent alcohol and drug use among teenagers through activities including community action, assemblies, and leadership training.

* Will be merged with SAPT Club Live in 2010-11.

Funding must be used in accordance with the six Primary Prevention Strategies

SAPT Club Live (CL) Program

Authority Summary of Allowable Expenses - Title 42, Chapter 6A, Subchapter XVII, Part B, Subpart ii, Sections 300x-21 through Section 300x-66 - HSC 11754 - CFR 45, Subtitle A, Part 96, Subpart L, Sections 96.120 through 96.137

Funding for this program is used for middle school-age students and is an extension of the FNL program.

Summary of Restrictions / Not Allowable * Will be merged with SAPT Friday Night Live in 2010-11.

Funding must be used in accordance with the six Primary Prevention Strategies

SAPT HIV Set Aside

Authority Summary of Allowable Expenses Summary of Restrictions / Not Allowable - Title 42, Chapter 6A, Subchapter XVII, Part B, Subpart ii, Sections 300x-21 through Section 300x-66 - HSC 11754 - CFR 45, Subtitle A, Part 96, Subpart L, Sections 96.120 through 96.137

- Funding used to provide HIV early intervention services to individuals under going treatment for substance abuse. Services include appropriate pre-test counseling, testing, appropriate post-test counseling, and providing therapeutic measures in relationship to the testing for preventing and treating the conditions of the disease. - Services may be provided at treatment program site or satellite sites that provide treatment services only. - This funding can be used in treatment programs only.

- HIV services are voluntary - not required as condition of receiving AOD treatment - HIV early intervention services must be made available to individuals in an AOD treatment program at the treatment site.

SAPT Substance Abuse Treatment and Testing Accountability (SATTA)

Authority Summary of Allowable Expenses Summary of Restrictions / Not Allowable - CCR, Title 9, Division 4, Chapter 2.5, Section 9535 - Title 42, USC, Section 300x-21(b) Title 42, Chapter 6A, Subchapter XVII, Part B, Subpart ii, Sections 300x-21 through Section 300x-66 - HSC 11754 - CFR 45, Subtitle A, Part 96, Subpart L, Sections 96.120 through 96.137

- This funding is for drug testing of clients treated under SACPA. After the SACPA funds have been expended for the FY, then these funds can be used for any other purposes consistent with federal SAPT Block Grant requirements.

* Will be merged with SAPT Discretionary in FY 2010-11.

- May be used for drug testing provided it is part of client’s treatment plan and not a stand alone program or initiative.

Federal Financial Participation (FFP) for Drug Medi-Cal (DMC) (Non Perinatal and Perinatal)

Authority Summary of Allowable Expenses Summary of Restrictions / Not Allowable - Title XIX (Social Security Act), California Medicaid State Plan, and CCR, Division 3, Title 22 - Health Care Financing and Administration (HCFA-15)

This funding is allowed for services as identified in CCR, Title 22, Section 51341.1 and HCFA-15 Currently 50% to State General Fund (SGF non-Peri and Perinatal) - Matchable to SGF funding only for DMC services. (50%) - This funding is not allowed for Minor Consent clients (Medi Cal Aid Code 7M, 7N, or 7P which are 100% SGF funded)

American Recovery and Reinvestment Act (ARRA) for Drug Medi-Cal (DMC) (Non Perinatal and Perinatal)

Authority Summary of Allowable Expenses - Title XIX (Social Security Act), California Medicaid State Plan, and CCR, Division 3, Title 22 - Health Care Financing and Administration (HCFA-15)

This funding is allowed for services as identified in CCR, Title 22, Section 51341.1 and HCFA-15

Summary of Restrictions/ Not Allowable

Currently 11.59% to State General Fund (SGF non-Peri and Perinatal) - Matchable to SGF funding only for DMC services. - See FFP on Minor Consent client limitations.

SGF Discretionary – Regular

Authority California Budget Act Authority Summary of Allowable Expenses Summary of Restrictions / Not Allowable

These funds are used for the cost of alcohol and drug treatment and prevention services. - Cannot be used to match the Federal Share in the Drug Medi Cal program - County match required (see County Match) - If county population is less than 20,000, SGF can be used for DUI programs

SGF Match to DMC (Non Perinatal and Perinatal)

Authority California Budget Act Authority Summary of Allowable Expenses Summary of Restrictions/ Not Allowable

This funding is allowed for services as identified in CCR, Title 22, Section 51341.1. - 100% of this funding is for Minor Consent clients (Medi-Cal Aid Code 7M, 7N or 7P) - Perinatal SGF Match to DMC funding can only be used for services as defined in Title 22 for pregnant or 60-day postpartum women - With the exception of Minor Consent clients (Medi-Cal Aid Codes 7M, 7N or 7P), must have FFP match

Substance Abuse Offender Treatment Program (OTP)

Authority Summary of Allowable Expenses - California Budget Act Authority - HSC, Division 10.10, Chapter 76, 2006 Statutes

- Enhancing treatment services for offenders assessed to need them, including residential treatment and narcotic replacement therapy - Increasing the proportion of sentenced offenders who enter, remain in, and complete treatment - Reducing delays in the availability of appropriate treatment services - Use of a drug court model, including dedicated court calendars - Developing treatment services that are needed but not available

NOTE: Proposed to be eliminated per the Governor’s FY 2010 11 preliminary budget.

Safe and Drug Free Schools and Communities (SDFSC) Grant

Authority Summary of Allowable Expenses - No Child Left Behind Act - SDFSC (20 USC Section 7111 et seq.)

This funding is used for reducing drug, alcohol, and tobacco use, and violence, through education and prevention activities to create a safe and drug-free learning environment that supports student academics in the nation’s schools and communities.

NOTE : Grant funding has been eliminated as of June 30, 2011. All documents are due to ADP by August 30, 2011. Additional information March 10, 2010 e-mail from Jane Williams, ADP

Substance Abuse Treatment Trust Fund (SATTF) (Also known as SACPA)

NOTE:

No new funds are available in FY 2009 – 10. Residual funds if available only; funding expired June 30, 2009

Non-County Revenue

Authority County operated revenue Summary of Allowable Expenses

This funding information is revenue from sources other than allocated or county-generated such as non-federal grant, donations, contributions, and third-party payments other than insurance.

Summary of Restrictions / Not Allowable

Restrictions as defined by county

County Funds

Authority HSC, Sections 11840 and 11840.1

Summary of Allowable Expenses Summary of Restrictions / Not Allowable

These are funds provided by the county as administered by the County Alcohol and Drug Program Administrator. These are funds in addition to the county match funds. Restrictions as defined by county

Fees

Authority County generated revenue Summary of Allowable Expenses

These are fees that are collected from clients and expended for treatment services. Share of cost information should be reported as a fee. These revenues shall be used in support of additional alcohol and other drug services or facilities.

Summary of Restrictions/ Not Allowable

- These fees cannot be used in Support Services for administrative, management and support functions as they relate to how the funding it identified in the budgets and cost reports under the Support Services modality.

County/Provider Unrestricted Funds

Authority County/provider generated revenue Summary of Allowable Expenses Summary of Restrictions/ Not Allowable

This funding is used to identify how much the county and/or provider is using to cover DMC costs that exceed the DMC rate. Restrictions as defined by county/provider

Insurance / Share of Costs

Authority County generated revenue Summary of Allowable Expenses

This funding is what is collected from third-party payers and / or Medi-Cal Share of Costs.

Summary of Restrictions/ Not Allowable

- These fees cannot be used in Support Services (HSC 11841).

PC 1463.25 (SB 920) and HS 11372.7 (SB 921)

Authority Summary of Allowable Expenses

This funding results from fines collected by the county for violations and convictions of alcohol/drug related offenses as required by SB 920 (Alcohol Abuse Education and Prevention Penalty Assessment) and SB 921 (Controlled Substance Abuse Penalty Fee).

Summary of Restrictions/ Not Allowable

- A minimum of 33 percent collected shall be allocated to Primary Prevention programs. - These funds shall supplement and not supplant any local funds made available to support the county’s alcohol and drug abuse education and prevention efforts.

Reporting Requirements

• Reporting Requirement Matrix – Responsible ADP Division/Branch/Section – Name of document, report, or data – Due Date(s) – Authority – Purpose • Monthly Reporting Requirement Matrix – displays in calendar format reporting dates

Reporting Matrix - Partial

Division/Branch/ Section Document, Report, or Data

Division of Admin. - ASB A-133 Audit Report OCJC – OTP OTP Invoice Subject to future funding

Purpose

Requirements of Single Audit Act for audits of federal funds Distribution of OTP funding IMSD - Data Mgmt Services Section CalOMS Treatment Data Files LCD - PPSB, Program Support PSD Treatment - FMAB Relocation for NTPs Cost Reports, including applicable DMC forms Meet federal requirements for reporting client teratment data and to provide data needed by state and counties for planning, budgeting, and reporting Recommendation for new program address Ensure expenditures meet federal and state requirements

ADP Payment Information ADP PAYMENT INFORMATION

Type of Funding/ Payment Method

12 monthly payments

SGF Regular (non-peri) and Perinatal SAPT Block Grant DMC SGF Regular (non-peri) and Perinatal DMC FFP – Regular DMC (non-peri) and Perinatal Drug Court Funding (DCP, CDCI, and DDC) OTP (*)

X (1/12 th X of allocation or contract – lesser of the two) Quarterly Invoice Approved Services X X X X

SDFSC (**)

X Payment scheduled by ADP Schedule X X X X X X Submitted to State Controller’s Office for release of warrant X

ADP PAYMENT IDENTIFIERS

SGF Funding 50910/702.11

50913/702.21 50913/702.22

50959/702.18

this is for regular (non-perinatal) SGF discretionary funding.

this is for perinatal SGF discretionary funding. this is for Women and Children’s funding.

this is for parolee services network funding.

DMC Funding - sample of coding for DMC services placed on the 835 Month/ Year

200907

Appropriation Amount State Funding Code

103 NON-PERI $224.40 G

Amount Federal Funding Code

$224.39 F 200908 201003 201004 103 NON-PERI 102 PERI 103 NON-PERI $90.57 G $44,146.68 G $105,970.00 G $90.56 F $44,146.68 F $0 F

SAPT Block Grant Funding

Sample of the coding for August 2010 FFY Award 2010

08/10SAPT10DIS Aug 2010 SAPT10 Discretionary 08/10SAPT10PRE 08/10SAPT10FNL 08/10SAPT10CL Aug 2010 Aug 2010 Aug 2010 Prevention Friday Night Live Club Live 08/10SAPT10HIV 08/10SAPT10PER 08/10SAPT10SATTA Aug 2010 Aug 2010 Aug 2010 HIV Set Aside Perinatal Set Aside SATTA Funding

AOD and Mental Health Funding Sources Chart

• Chart developed by the Funding Sub committee of the Co-Occuring Joint Action Council (COJAC) Workgroup • Similar information as identified on ADP’s Local Assistance Funding Matrix

AOD and Mental Health Funding Sources Chart

• Adds information about – Covered age – Target population – Client Eligibility Requirement and Who Determines Eligibility – Where to find more information • CURRENT AS OF: • MARCH 2009 Updates pending

How are Allocations developed?

•

January 10 - Governor’s Preliminary Budget is issued

– (released Jan. 8, 2010) •

January 10 - Thru Feb.

– Policy discussions held between ADP, CADPAAC Executive Committee, and the Fiscal Workgroup (includes internal ADP reviews). – Per HSC, Section 11814(c) the NNA preliminary allocations must be issued within 45 days of the Governor’s Preliminary Budget.

NNA / DMC Methodology

• Base Funds – same level of funding as in prior year • New Funds - $2,500 per each $1 million and the balance distributed straight per capita • SGF Match for DMC – based on counties final approved contract for prior year.

• Reductions – MBA counties held harmless for first 5% of reduction • Distribution of HIV funds are based on the weighted indicators. These indicators are weighted as:

Distribution of HIV Funds

WEIGHT NEEDS – BASED DATA

20.0% 20.0% HIV Counseling and Testing Prevalence (first time positives 2005 to 2007) Number of newly reported HIVE cases (2006 to 2008) 20.0% 15.0% Cumulative Living AIDS Cases Through April 30, 2009 African American Population (2000 Census) 7.5% 7.5% 5.0% 5.0% 100% Male syphilis cases, 2008 Male gonorrhea cases, 2008 Hispanic population (2000 U.S. Census) People living below federal poverty level (2000 U.S. Census) Total Because HIV funding is based on need, the amount each county receives may change annually.

Drug Court Allocation information

• DCP Methodology for FY 2009-10 Preliminary Allocation – Participating counties receive the same historical allocation as in prior year funding.

• CDCI Methodology for FY 2009-10 Preliminary Allocation – Participating counties receive the same historical allocation as in prior year funding.

• DDC Methodology for FY 2009-10 – Participating counties receive the same historical allocation as in prior year funding.

Additional time lines

• March - June – Legislative Hearing Held on ADP’s Proposed Budget • July 1 – Governor’s signs the Budget Act • July 1 - August – Policy discussions held between ADP, CADPAAC Executive Committee, and the Fiscal Workgroup (includes internal ADP reviews) • August 15 – ADP issues Final Allocations as confirmed in the State Budget (no restrictions on timelines of when Final Allocation must be issued)

Allocation Revisions

• NNA/DMC Statewide Revisions: – If increase in federal funds not captured by the May Revision – New funds are identified – Adjustments to statewide funding level after Budget Act • NNA/DMC Individual Revisions: – Adjust SGF Match to DMC – Inter-County transfers