2. Children and Youth Services Revenue Streams and Budget: The Structure and Process Behind Federal, State and Local Funding of Child Welfare Services

3. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Learning Objectives Participants will: –Gain an understanding of the funding streams for child welfare. –Improve their understanding of Children and Youth’s fiscal reporting system. –Increase their awareness of recent policy changes, changes in funding stream distributions, and the impact changes have on county programming and planning. 2

4. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Child Welfare Services The purpose of Title IV-B is to promote State flexibility in the development and expansion of a coordinated child and family services program that utilizes community-based agencies and ensures all children are raised in safe, loving families, by— –(1) protecting and promoting the welfare of all children; –(2) preventing the neglect, abuse, or exploitation of children; –(3) supporting at-risk families through services which allow children, where appropriate, to remain safely with their families or return to their families in a timely manner; –(4) promoting the safety, permanence, and well-being of children in foster care and adoptive families; and –(5) providing training, professional development and support to ensure a well-qualified child. 3

5. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center How do counties pay for the child welfare services they need to provide to children and families? 4

6. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Needs Based Plan and Budget (NBPB) This process is used to determine the service level of need in each county and develop funding allocations to ensure that the needs of the children and families being served are met. Act 30 of 1991 created the current funding and budgeting process. 5

7. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Special Grants Needs Based Plan and Budget is not all-inclusive. Counties can also request funding through Special Grants (earmarked for specific purposes). Examples include: –Evidence-Based Programs (EBP) –Pennsylvania Promising Practices (PaPP) –Housing Initiative –Alternatives to Truancy Prevention (ATP) –State Reintegration 6

8. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Evidence-Based Programs Multi-Systemic Therapy (MST): an intensive family- and community-based treatment that addresses the multiple determinants of serious antisocial behavior in juveniles. Functional Family Therapy (FFT): family intervention program applied to a wide range of at-risk youth aged 11-18 and their families, including youth with conduct disorder, violent acting-out, and substance abuse with interventions that range from 8 to 12 one-hour sessions, up to 30 sessions of direct service. 7

9. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Evidence-Based Programs, (cont’d) Multidimensional Treatment Foster Care (MTFC): an alternative to institutional, residential and group care placements for boys with severe and chronic criminal behavior, children with severe emotional and behavioral disorders, girls with severe delinquency, and youth in foster care. Family Group Decision Making (FGDM): family- centered practice that maximizes family input and decision making with professional agency support. 8

10. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Evidence-Based Programs, (cont’d) Family Development Credentialing (FDC): a professional development course and credentialing program for caseworkers (public and private) to learn and practice skills of strength-based family support with families. High-Fidelity Wrap Around (HFWA): wraparound process, which improves the lives of children with complex behavioral health needs and their families. 9

11. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Pennsylvania Promising Practices The county may identify one outcome-based dependency practice/program and/or one outcome-based delinquency practice/programs (for a total of two practices) in its request for special funding consideration. The state encourages outcomes- based services (i.e.,non-certified evidence-based), and the county must report on each program’s services and outcomes. The information the county submits regarding dependency and delinquency outcome-based practice/programs must demonstrate a concurrent decrease in out-of-home placement days of care. The state will fund county-identified PaPPs as special grants for two years. Thereafter, if producing desirous outcomes, the PaPP becomes part of the county’s operating practices and is fiscally represented in the NBPB. If the program is not producing desirous outcomes, the county may choose to end the program or fund it through other resources. 10

12. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Housing Initiative Designed to meet the needs for housing resources for dependent and delinquent youth in order to: –prevent children from entering out of home placement; –facilitate the reunification of children with their families; or –facilitate the successful transition of youth aging out, or those who have aged out, of placement to living on their own. 11

13. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Alternatives to Truancy The county may identify one practice or program designed to address truancy issues among school-age youth in order to: –reduce the number of students referred for truancy; –increase school attendance among student participants; –improve educational outcomes among student participants who may not have otherwise benefited without the program; –increase appropriate advance to the next higher grade level; –decrease child/caretaker conflict; or –reduce the percentage of children entering out of home care because of truancy. 12

14. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center State Reintegration Program Designed to serve youth leaving the youth development center/youth forestry camp (YDC/YFC) system. This program supports youth in making a smooth transition back into the community, which thereby improves the likelihood of successful reintegration, increases accountability to victims, and makes communities safer. 13

15. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center What’s the difference? Special Grants are reimbursed at higher state participation rates but are restrictive to specific types of services. Reimbursement rates range from 80% to 95%. NBPB is not as restrictive as Special Grants, but services are reimbursed at lower state participation rates. Reimbursement rates range from 50% to 90% based on the service provided (per § 3140.22 of Title 55 PA Code). 14

16. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center How do we classify expenses for the services we provide? Into 4 Major Categories: –In-Home Services –Community-Based Services –Institutional Services –Administration 15

17. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center What types of revenue are available? It depends on the types of services a county provides. 16

18. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Revenue Streams Program Income Federal –Title IV-E Placement Maintenance, Title IV-E Administration & Training, TANF, Title IV-B, Title XX and MA Most federal funds provided by the Social Security Act State (Act 148) Local or County Match 17

19. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Examples of Program Income Parental Support (Title IV-D) Social Security Income: –Social Security Disability (SSD), Survivors Benefits, etc. Supplemental Security Income (SSI) Veterans (VA) Benefits Donations Interest Income Other private funds 18

20. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Title IV-E Title IV-E is available to child welfare agencies for reimbursement of specific expenses related to maintaining an eligible child in eligible out-of-home placements, Adoption Assistance payments for special needs children, and Subsidized Permanent Legal Custodianship payments. The agency must determine the child’s eligibility for the program and monitor the child’s eligibility and reimbursability status. 19

21. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Title IV-E, (cont’d) Uncapped revenue; however, child must be eligible and the placement must be eligible for reimbursement Invoice Title IV-E for the entire eligible amount of the expense and the Title IV-E reimbursement is established by the Federal Financial Participation (FFP) rate in effect on the date the child received the services Remaining expense must be reimbursed with state and local funds 20

22. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Title IV-E Administration and Training This revenue is the Government’s way of reimbursing counties for complying with Title IV-B mandates. Title IV-E funds are also available to reimburse expenses resulting from child welfare agency staff performing specific Title IV-E eligible activities. Expenses are accumulated in the wages, benefits, operating, and fixed asset objects of expenditure. The Title IV-E Administration and Training revenue is determined from the statewide Random Moment Time Study (RMTS) results, the county’s net cost pool, and county case counts. 21

23. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Title IV-E Administration and Training, (cont’d) If the Statewide RMTS results do not accurately reflect the amount of time casework staff spend conducting Title IV-E eligible activities, the administrative claim for the entire state is skewed. Every eligible activity miscoded as an ineligible activity costs the state tens of thousands of dollars in federal revenue. As Administrators, it is vital to support the RMTS process by establishing internal controls to ensure accurate coding of staff “moments”. 22

24. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Title IV-E Administration and Training, (cont’d) Title IV-E Administration and Training is also used to reimburse Non-recurring costs paid to adoptive parents and Permanent Legal Custodians. Non- recurring costs are costs related to the legal adoption or custodianship of a child. Private foster family providers’ rates consist of two components; maintenance and administrative. The administrative portion of private foster family home per diems is also reimbursed at 50%. 23

25. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Title IV-E Administration and Training, (cont’d) Requires State and Local matching funds On average, Title IV-E makes up 15% of the Total Revenue based on certified allocations from FY 09/10 through FY 11/12 24

26. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Temporary Assistance to Needy Families (TANF) Capped revenue Can only be used to reimburse eligible child and eligible expenses not funded with program income or Title IV-E Used for emergency shelter costs and all purchased in- home service costs except Adoption Assistance, SPLC, and Juvenile Act Proceedings Pays for 100% of eligible clients’ eligible expenses (no state or local match required) Makes up approximately 3% of Total Revenue 25

27. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Title IV-B Capped Revenue Used to reimburse expenditures relating to specific purchased In-Home cost centers, all Community Based, specific Institutional Placement cost centers, and Administration Title IV-B makes up less than 1% of the Total Revenue 26

28. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Title XX Capped Revenue Block Grant to States for Social Services Used to reimburse expenditures relating to specific purchased In-Home cost centers Used to reimburse a portion of the daily per diem for Specific Community Based and Institutional Placement cost centers related to providing social services and/or treatment Title XX makes up less than 1% of the Total Revenue 27

29. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Medical Assistance Reimburses for a portion of expenses related to staff and agency performing medical assistance eligibility determinations (RMTS) A handful of counties are approved as Type 40 providers (MA providers) and receive reimbursement for medically fragile children. A medically-fragile child is one who requires medical care in addition to daily parental or supervisory care. MA makes up less than 1% of Total Revenue 28

30. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Act 148 Act 148 can only be used once all other appropriate funding sources and client- generated revenues have been exhausted (per § 3140.46 Title 55 PA Code). Act 148 reimburses a portion of the remaining costs based on the state participation rates and allowability of the costs. Final State appropriations are determined by legislature, which is proportionately distributed to individual counties. Distributions are based on OCYF’s request to the Governor’s office. 29

31. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Act 148, (cont’d) At present, the largest revenue to support county child welfare comes from the Act 148 allocation. (56.34%) –(based on Certified Allocations for FY 09/10 through 11/12) 30

32. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Local or County Match Matching funds required by various levels of services As state level of funding increases, the county’s required match also increases County match makes up approximately 22% of Total Revenue 31

33. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center 32 Total Revenues Total Expenses = PI + Federal + State + Local

34. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Fiscal Years Most counties use the calendar year (January to December) to develop their budgets. The state fiscal year (SFY) runs from July to June of following year. The Federal Fiscal Year (FFY) runs from October to September of the following year. 33

35. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Invoicing & Payments Reimbursement is the primary form of revenue distribution (i.e., counties must incur the expenses first). 34

36. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Title IV-E & TANF Invoicing & Payments Title IV-E & TANF invoices must be completed on a quarterly basis or as needed (i.e., supplemental invoices). Title IV-E & TANF invoices must be completed to build an accurate Act 148 invoice. Payments (reimbursements) are received 4-6 weeks following validation/approval of the invoices. 35

37. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Title IV-B & Title XX Payments Paid as quarterly advances Do not represent a significant portion of revenues. 36

38. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Payments from RMTS MA & Title IV-E Admin and Training invoices are based on information calculated during completion of the automated Act 148 invoice package. These invoices must be submitted quarterly or as needed (i.e., supplemental invoices). 37

39. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Act 148 Invoicing Act 148 invoices completed quarterly –Due 45 days after the end of the quarter The Act 148 invoice must be revised (if necessary) to reflect the submission of supplemental Title IV-E or TANF invoices. 38

40. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Act 148 Payments Act 148 is a combination of advances and actual payments. Payments are received 4-6 weeks after processed. 1st Quarter Advance – 1/8 of total allocation is processed after Legislative Budget Bill is passed. 2nd Quarter Advance – 1/8 of total allocation is processed within 45 days of the 2nd quarter. 1st Quarter Actual and 3rd Quarter Advance – reimbursement of 1st quarter actual expenses are adjusted by previous payments up to ¼ of the total allocation. In addition to the actual payment, the 3rd quarter advance of 1/8 of total allocation is also processed. 39

41. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Act 148 Payments, (cont’d) 2nd Quarter Actual and 4th Quarter Advance – reimbursement of 2nd quarter actual expenses are adjusted by previous payments up to ½ of the total allocation. In addition to the actual payment, the 4th quarter advance of 1/8 of total allocation is processed. 3rd Quarter Actual – reimbursement of 3rd quarter actual expenses are adjusted by previous payments up to ¾ of the total allocation. 40

42. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Act 148 Payments, (cont’d) 4th Quarter Actual – reimbursement of 4th quarter actual expenses are adjusted by previous payments, not to exceed 100% of the total allocation. 4th Quarter actual payment could be delayed if a Budget Amendment is required. Payment is issued once a Budget Amendment request is submitted and approved. 41

43. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Budget Amendments Must be completed when costs exceed budgeted expenditures by 10% or $10,000 (whichever is greater) in any major category for the fiscal year Must be completed to process requests for changes to the staff complement that were not previously budgeted for Must be completed to request additional fixed assets that have not been previously budgeted for Can be submitted anytime before the 4th quarter actual invoice 42

44. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Auditing The records of the county and its contracted service providers are subject at reasonable times to review and audit by the Department to determine compliance with regulations and policies. As a result of state and federal reviews, adjustments to federal and state invoices may occur. 43

45. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Planning Counties plan for future needs through the NBPB process. Counties plan and provide for current needs through the contracting process. 44

46. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Contracting for Services Counties can purchase services to meet the needs of children/families. This is accomplished by contracting with providers for services. Contracts are negotiated between the county and the provider. Service providers invoice the county for services rendered. 45

47. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Contracting for Residential Services Provider must submit a contract documentation package for each FY to establish Act 148 maximum allowable rates and Title IV-E allowable percentages County contracts with service providers through negotiation Service providers under contract deliver requested services Service providers invoice county agency for services rendered 46

48. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Child Welfare Fiscal Cycle 47 PlanningContracting Needs Based Budgeting Invoicing Budget Amendments Auditing

49. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Needs Based Plan & Budget Completed using the actual expenditures for the current ending FY as a base (ex: FY 10/11) -- using actual data allows counties to better document the need for additional funds Changes can be requested for the new FY (i.e., Implementation Plan (ex: FY 11/12)) Planning and Budgeting for the FY to come (i.e., Needs Based Plan (ex: FY 12/13)) All adjustments to the base must be justified with supporting fiscal and programmatic information 48

50. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Needs-Based Plan & Budget, (cont’d) Counties must identify the services that the county will provide or purchase in order to meet mandates. Regulations require the NBPB submission by August 15th. 49

51. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Budget Variables Local Politics Court Decisions President Judges New Legislation (State and Federal) Revenue Stream Reductions Eligibility Changes Staffing Issues 50

52. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Trends Year-end fiscal data is collected from all 67 counties to enable parties to evaluate the trends of major categorical services, funding streams and expenditure changes. 51

53. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Certified Expenditures for 2007/08 to 2009/10 Compared to Actual Expenditures 2007/082008/092009/10 Certified:$1,860,975,139$1,910,162,399$1,784,595,903 Actual:$1,867,064,180$1,800,174,204$1,683,501,226 Percentages: 100.33%94.24% 94.34% 52

54. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Actual Expenditure Trends In FY: –2007/08, counties expenditures were $6 million over certified levels. –2008/09, counties expenditures were $110 million under certified levels. –2009/10, counties expenditures were $101 million under certified levels. 53

55. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center What is overmatch? Overmatch is excess county revenue that occurs when a county’s Act 148 allocation is exhausted due to expenditures exceeding certified levels or to a loss of other revenue sources. 54

56. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center How does changing revenue affect counties? A reduction of federal revenue places increasing burdens on the state and county. 55

57. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center IV-E Certified vs. Actual FY 07/08FY 08/09FY 09/10 Certified:$340,867,799$300,450,237$261,127,092 Actual:$303,698,354$272,677,684$263,045,598 Percentages: 89.10%90.76% 100.73% 56

58. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center You should be able to… Identify the Child Welfare Fiscal Cycle Relate the importance of the Needs Based Plan and Budget Process Identify various types of revenue Understand how counties are reimbursed 57

59. 700: Children and Youth Services Revenue Streams and Budget The Pennsylvania Child Welfare Resource Center Questions and Answers 58