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Health and Human Services Agency recommending the Board approve and authorize the Chair to sign a Fiscal Year (FY) 2021-22 Budget Transfer Request increasing appropriations in the Public Guardian program to accommodate a payback of funds to the California Department of Health Care Services for the final audit of the FY 2017-18 Targeted Case Management cost report. (4/5 vote required)
FUNDING: General Fund from the Audit Reserve Designation established in FY 2016-17 for this purpose.
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DISCUSSION / BACKGROUND:
The Health and Human Services Agency (HHSA) Public Guardian program discontinued participation in the Targeted Case Management (TCM) program administered through the California Department of Health Care Services (DHCS), at the end of FY 2017-18. The changes that DHCS made to the program at that time were in response to a federal audit of DHCS, and they were applied retroactively several years back to FY 2010-11. The new regulations increased the level of required documentation, changed time study methodologies, and increased the level of audit risk. All of the statewide participating Local Government Agencies (LGAs) were required to complete retroactive revised cost settlement reports, applying the new regulations to past years that had already been closed out. During FY 2016-17, the Chief Administrative Office established an Audit Reserve within the General Fund in response to the likelihood of significant TCM audit payback. HHSA received the final audit letter for the FY 2017-18 TCM cost report in December 2021, which requested a payment due to DHCS of $82,966. This budget transfer is for the final audit and payback of TCM program funds.
ALTERNATIVES:
Should the Board decline to approve and authorize the Budget Transfer Request, the HHSA budget for the Public Guardian program will be over budget in Net County Cost.
PRIOR BOARD ACTION:
N/A
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
N/A
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
Paid from the General Fund Audit Reserve Designation established for this purpose. After the $82,966 has been pulled from the designation there will remain $861,464, with $800,000 of that added in FY 2020-21 as a CARES audit reserve.
CLERK OF THE BOARD FOLLOW UP ACTIONS
The Clerk of the Board will obtain the Chair’s signature on the Budget Transfer Request form and forward it to the Chief Administrative Office (CAO) for processing.
STRATEGIC PLAN COMPONENT:
Good Governance
CONTACT
Daniel Del Monte, Interim Director