Direct Purchase of Services October, 2011

Introduction to the DPS and the DPS Manual Define the process that SHOULD be adhered to by potential vendors/providers. Describes services that may be purchased. Describes the application process. Describes the reporting requirements and policies and procedures that guide the DPS manual.

Purpose of the DPS Manual The need to address the required services of a growing population; Cost effective manner while Maintaining the quality of services Addressing a flat or declining funding base; Accountability Monitoring of cost and units provided Performance

Creates a definitive picture on: – Costs variation from urban to rural for various services; Provides an avenue for non – traditional community based organizations to apply for funding; Provides options – (i.e. inadequate capacity for providing new services ); Ensures correct calculation of costs and services;

Monitoring of service units and costs will: – Assist in ensuring the success of the provider/vendor; – Assist in complying with the service delivery plan AND – Ultimately the services to seniors. The DPS process – Takes into consideration the diversity of both communities and programs; – Provides options for individual programs costs while

Providing assurances that there are no barriers to interfere with provision of OR access to services; Allows the flexibility and accountability to determine the level of service in each community. Provides a cost effective, quality driven, comprehensive and coordinated system of supportive services.

The Manual will provide the “specific” tools required to contract with Non – Metro AAA within the DPS guidelines. With the use of the Manual, providers/vendors will have access to step by step procedures and required documentation necessary to enter into a contractual agreement with Non –Metro AAA.

Previous Structure before DPS Submission of line item budgets to AAA Budget Adjustments to AAA to original line item budgets Data entry at local level Inaccuracies of data, information reported to AAA--- resulted in incorrect data reported to funding agencies Submission of monthly financial reports for reimbursements (SA1) Reimbursements based on expenditures and “NOT” services provided Lack of accountability for federal and state funds No concept of the “costs” of delivering services Inconsistencies among providers/vendors budgeting process Lack of standardization Lack of adequate services in rural communities

DPS Original Goals  Improve Integrity of Services  Assure Accountability  Accurate Costs of Service(s)  Urban Costs vs. Rural Costs  Provide an avenue for non- traditional community based organizations – apply for funding  Less Administrative burden for providers  AAA would assume data entry responsibility  Providers/Vendors would be able to “focus” on the provision of service(s)  Accountability and Credibility for required data reported to funding agencies  Accurate data = performance measures  Elimination of inconsistencies at local level

Request for Proposal (RFP) AKA Area Plan 4 Year Area Plan Consolidated Plan/ALTSD Annual Revisions/Amendments Non-AAA Reviews & Rates RFP Agreements (DPA) Issued Current DPS Process

 Provider/Vendor Delivers Services  Provider/Vendor Request Amendment – will NOT be Meeting Units Projected  Non – Metro Amends Agreement With the amendment does this Mean the Provider/Vendor fulfills the contractual Agreement?

Adopted Finalized Process Request for Proposal (RFP) AKA Area Plan 4 Year Area Plan Consolidated Plan/ALTSD Annual Revisions/Amendments Non-AAA Reviews & Rates RFP Agreements (DPA) Issued

Adopted Finalized Process Provider/Vendor makes a request to “Decrease” Units and/or Change “Negotiated Costs. Non – Metro Refers to Contingency Plan. “IF” request made is within the Contingency Plan.

Adopted Finalized Process If Justification is Acceptable the Non – Metro AAA will: Amend Agreement which will Impact # of units, total cost and federal/state Costs

WHAT DOES THIS MEAN ? KNOW THE NEEDS OF YOUR COMMUNITY KNOW THE COSTS OF SERVICES GOOD PLANNING MANAGE STAFF MANAGE SERVICES KNOW AND MANAGE BUDGETS ACCOUNTABILITY KNOW HOW TO MAKE PROJECTIONS – SHOULD I PROJECT HIGH OR LOW?

WHAT DOES THIS MEAN?