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Health and Human Services Agency, Community Services Division, recommending the Board:
1) Approve and authorize the Chair to sign a Budget Transfer Request increasing Low Income Home Energy Assistance Program and Weatherization Program revenue and appropriations by $100,000 of Federal and State funding; and $100,000 in General Fund; and decreasing the General Fund contribution and appropriations by $100,000 in the Aging Programs due to program savings; and
2) Approve and authorize the Chair to sign a Budget Transfer Request increasing revenue and appropriations by $50,000 in the Senior Day Care Program due to additional fee revenue. (4/5 vote required)
FUNDING: Federal and State revenue, General Fund and Sr. Day Care fees.
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DEPARTMENT RECOMMENDATION:
Health and Human Services Agency (HHSA) recommending the Board approve the Chair to sign a Budget Transfer Request (BTR) to increase revenue and appropriations by $200,000 in the Low Income Home Energy Assistance Program and Weatherization Program (LIHEAP) by transferring previously allocated General Fund from Aging Programs revenue and appropriations by $100,000 and increasing grant funding by $100,000. HHSA received a higher than anticipated grant amount for the LIHEAP program, thereby allowing increased services to the clients in the amount of $100,000. Additionally, the General Fund contribution previously budgeted for these programs was insufficient to cover current year program activities and increased costs as well as additional match requirements for the increased grant revenue. HHSA has identified savings in the Aging Services Program due to staff vacancies, and is requesting to transfer said funds to cover the LIHEAP Program. This transfer would result in no increase to Net County Cost.
In addition, HHSA recommending the Board approve the Chair to sign a BTR increasing revenue and appropriations by $50,000 for the Senior Day Care (SDC) Program. Increased attendance at both SDC sites resulted in an increase in revenue and commensurate increases in client services, the need for extra help staff, and administration charges. The BTR reflects the increases in appropriations in Other Compensation, Client Program Services, Indirect cost and Division Administration expenditure. This BTR would result in no increase to Net County Cost.
DISCUSSION / BACKGROUND:
The Low Income Home Energy Assistance Program (LIHEAP) consists of the Home Energy Assistance Program (HEAP) and Weatherization Program (WX), which is a federal grant managed by California Community Services District (CSD), and requires proportionate spending of operating expenses, salary and benefits, and administrative expenditures through the grant period. The grant covers thirteen (13) months (January through January) and does not coincide with the County fiscal year of July through June. For this reason, at the time the County FY 2015-16 budget was submitted, the information regarding the January 2016 - January 2017 grant amount was not available, and so the budget was estimated based on historical data.
The additional funding through the LIHEAP grant allows the County to provide additional services to clients, including the addition of an extra help employee to provide service to our clients. However, this results in additional operating, salary and benefits, and administrative expenditures.
HHSA has identified one-time savings in the Aging Services program and requests to transfer those savings to the LIHEAP program, resulting in no additional Net County Cost.
Revenues in the Senior Day Care Program are partially funded by client fees; therefore, increased attendance resulted in increased revenue. In accordance with the increased revenue and activities, the appropriations for Client Program Services, Indirect Cost and Division Administration expenditure increased. In addition, a long-term Senior Day Care employee retired, resulting in a large payout that further impacted the program funding.
ALTERNATIVES:
If the Board declines to approve the Budget Transfer Request to transfer funds from the Aging Services program to LIHEAP, HHSA would be required to return funding due to the inability to comply with contract terms. Likewise, if the Budget Transfer Request is not approved additional General Fund dollars will be needed to pay for the under budgeted LIHEAP administrative costs for the Fiscal Year 2015-16 Budget.
If the Board declines to approve the Budget Transfer Request to increase revenue and appropriations in the Senior Day Care program, thereby leaving an increase in appropriations only, the result would be an increase in Net County Cost.
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
Chief Administrative Office
CAO RECOMMENDATION:
Chief Administrative Office concurs with the department recommendation.
FINANCIAL IMPACT:
There is no Net County Cost associated with this Agenda item. Sufficient appropriations were included in the Aging Services program budget to cover the increased program expenditures based on the additional funding for 2016.
CLERK OF THE BOARD FOLLOW UP ACTIONS
1) Clerk of the Board to obtain signature of Chair on attached Budget Transfer Requests.
2) Clerk of the Board to return one (1) minute order to the HHSA Contracts Unit at 3057 Briw Road.
STRATEGIC PLAN COMPONENT:
N/A
CONTACT
Don Ashton, M.P.A., Director