1. CMAA: Direct Charge Expenses Non-Offset Revenues
We are here to discuss two essential concepts to MAA invoicing: direct charge of expenses and non-offset revenues.
These are not always complicated but are certainly not the easiest part of MAA invoicing. By the end of this presentation we hope you have a greater understanding of each and some real examples.

2. CMAA: Direct Charge Types of expenses can include:
Salary and Benefits
Subcontractor
Non-labor costs of services and supplies
Costs of staff who time survey are not direct charge

3. When to direct charge staff?
Requirements:
Staff costs must be 100% attributable to a single Medi-Cal eligible activity
Staff whose costs are direct charged must still attend an annual time survey training
Staff must perform reimbursable activities 100% of the time or in distinct and documented blocks of time
Staff time must be documented/logged
Staff must complete “Staff Certification of Direct Charge Time” each quarter

4. Direct Charge Common Codes
Common MAA activities for direct charge include:
Code 8 - Facilitating Medi-Cal Application
Code 10 - Arranging and/or Providing Non-Emergency, Non-Medical Transportation to a Medi-Cal Covered Service
Code 19 - MAA/TCM Coordination and Claims Administration

5. Direct Charge Log Identifying staff information
Date activity was performed
Amount of time spent
Total hours paid for day, month, or quarter
Activity description

6. Direct Charge of Contractor Expenses
Contract can be direct charged if it:
Describes the claimable activities to be performed
Specifies the dollar amount for each claimable activity
Contingency fees cannot be direct charged

7. Direct Charge Non-Labor Costs
Normal day-to-day operating expenses necessary to run the claiming unit
Overhead costs not included in indirect rate
Identify these costs and develop backup documentation showing detail and amount to be claimed

8. Direct Charge Non-Labor Costs
Non-salary and/or overhead costs associated with MAA specific reimbursable activities (‘non-salary costs’):
Travel
Training
Printing
Computer, or other equipment costs
Supporting documentation to substantiate any non-salary and/or overhead direct charges
Should test in your invoice whether it is more advantageous to direct charge these costs or put them in Cost Pool 6.

9. Direct Charge Non-Labor Costs
Transportation Costs for Medi-Cal enrolled individuals to a Medi-Cal non-emergency covered service
Need to track:
Client name
Client Medi-Cal ID
Date of service
Type of Medi-Cal covered service/provider
Mileage, van operating costs, insurance, driver, etc.
Bus tokens, taxi vouchers, etc.

10. Direct Charging Other Details
Staff or contractor must be listed on the CUFG
Staff must be trained annually
Staff must sign a Duty Statement
Corresponding Activity Sheet must reflect if staff or contractors are direct charging rather than time surveying
Program Planning & Policy Development can be direct charged when performed full time by an employee whose tasks officially involve program planning and policy development
LGAs may also utilize the staff classification and payroll coding documents to verify the reimbursable costs for staff that perform Medi-Cal eligible services and/or activities 100 percent of the time

11. Cost Pool 4 vs. Cost Pool 5 Cost Pool 4: Cost Pool 5:
Expenses that can be directly charged to CMAA at enhanced rate
Cost Pool 5:
Non-SPMP expenses that can be directly charged to CMAA
CMAA specific contracted costs

12. Staff Certification of Direct Charge Time
2016 LGA Annual Conference

13. Sample Direct Charge Log
LGA:
Claiming Unit:
Code
Name:
(Full-time Employee)
July
Note: Total Paid Hours should match time card.
Date
MAA Activity Description
TOTAL PAID HOURS
MAA Coord/Claims Admin Direct Charge
General Admin.
Paid Time Off
Other Programs
7/1
Reviewed time surveys.
8.00
2.00
1.00 5
7/2
Attended MAA invoice training.
5.00 2
7/3
Worked on MAA invoices.
3.00
0.50
4.00
0.5
7/4

14. Direct Charge on CUFG NUMBER OF STAFF
Name of LGA
Submittal Date
Name of Claiming Unit
Number of Staff
Address
Contact Person
Phone Number
Description of Claiming Unit Functions
NUMBER OF STAFF
MEDI-CAL ADMINISTRATIVE ACTIVITY CODE
(ENTER NUMBER OF STAFF UNDER EACH ACTIVITY)
STAFF JOB CLASSIFICATIONS
SPMP
NON- SPMP
DIRECT CHARGE 4 6 8 10 12 13 15 16 17 18 19 20
MAA Coordinator 1
Subcontract – MAA Time Survey Software X

15. Direct Charge or Time Survey?
Only document time spent on reimbursable activity
Great for individuals who perform an activity in a block of time
Good option for some contractors, when contract clearly describes activity and cost for that activity
Time Survey
Does not require a log of activities
Allows for multiple codes to be claimed during the same encounter

16. CMAA: Non-Offset Revenues
Many revenues offset expenses. Failing to appropriately identify non-offset revenues can have a major impact on an invoice. Before we look at revenues that are not off-set, we must first review at least briefly which revenues must be off-set.

17. REVENUES WORKSHEET Identify all revenues within the budget unit
Sort between Non-Offset and Cost Pools 1 – 6
Revenues are used to determine the net cost of MAA eligible activities for federal reimbursement
Some revenues can be entirely assigned to NON OFFSET or only 1 OFFSET Cost Pool.
Other revenues that require partial offsetting may need to be split between the various cost pools depending on how the cost was charged in the Other Costs Worksheet of the invoice.

18. OFF-SETTING REVENUES Revenues that must be Off-Set: Federal funds
MOE (Maintenance of Effort)
Local match for federal funds
State match for federal funds (including Medi-Cal fee-for-service revenue)
State “carve out” programs like CCS, CHDP
Payments collected from non-governmental sources for the delivery of direct client services
Offset funds are required to be reported on the MAA invoice to ensure that you are not double claiming federal dollars for the same expenses to MAA and other federal grants (ex. MCAH or immunization education). Therefore, offset funds do not count towards meeting your CPE requirement. Be very careful to only offset revenues in CP 1, 2, and 6 when necessary to be in compliance as this directly reduces reimbursement on the MAA invoice.

19. NON-OFFSET REVENUES County General Funds
Realignment Funds (MVLF and Sales Tax)
The exception: Required match for programs such as CCS and CHDP
Other Local Public Entity (LPE) Funds (First 5)
MHSA
MAA Reimbursements
Potentially other revenues that not required to offset expenses
Realignment used in excess of a required match can be assigned to non-offset. Other non-offset revenues: State Tobacco funds and AIDS Drug Assistance Program (ADAP) funds.

20. CPE Compliance
Claiming Units must have enough non-offset funds to equal or exceed the amount of reimbursement being claimed for the MAA Program.
For example, if your invoice total is $150,000, you must have at least $150,000 for the quarter in non-offset funds. If there are insufficient non-offset funds to match claimed expenses, this correctly reduces the amount that can be claimed.
Invoice – Claim Calculation Tab

21. Non-Offset Revenues Tips
Things to consider: Failure to identify non-offset revenues will very likely reduce the total invoice amount! Identifying revenue incorrectly as non-offset will very likely result in an audit exception! Be sure of the classification of revenues or seek assistance.

22. QUESTIONS & DISCUSSION
Open to floor