The How-To of Alternative Payment Projections Presentation Panel - PowerPoint PPT Presentation

The “How-To” of Alternative Payment Projections Presentation Panel Beth Chiaro, Stuart Orlinsky and Teri Sedrick

OBJECTIVE OF WORKSHOP To provide AP agencies with processes, best practices, and tools for analyzing, strategizing and projecting your provider payments to meet your Maximum Reimbursable Allowance (MRA)

WHAT IS MRA? The Maximum Reimbursable Allowance is the amount of the contract you are attempting to spend – the Provider Payments and the Program Support amounts

PROGRAM & SUPPORT COST A designated percent of each contract to be spent on internal processes as opposed to directly on child care For example, if contract A is $1,000,000 and the designated Program and Support allowance is 17.5% ($175,000), then 82.5% ($825,000) is the goal to spend on child care

PURPOSE OF PROJECTING COST Project provider payment costs through the end of the fiscal year to determine under expended or over expended, based on your current enrollment and projected attrition and to strategize

FAMILY FEES  Project/Average a monthly amount  Revise with actual amounts paid or credited

PROVIDER PAYMENT PROJECTION

KEY DATA ELEMENTS & AREAS  Program Information  Child Information  Child Care Schedule Information  Child School Schedule  Provider Applicable Rate

PROGRAM INFORMATION  Funding Source  Child Start & End dates

CHILD INFORMATION  Child Name-unique identifier  Child Schedule  Date of Birth-Age  Leave of Absence  Age Markers that effect rates – 2 years old, Kindergarten, 6 years old  Date Cash Aid Terminated  Terminations-13 year olds, Program limits

SCHOOL CALENDARS (CCRC)  Holidays  Time in school vs. time in day care  School track

PROVIDER INFORMATION  Child Care Schedule Information  Applicable Rate  Child Care Start and Stop Dates  Outstanding Invoices

RESULTS

STRATEGIES

PROJECTED UNDER OR OVER SPENT  How many children do you need to add to fully earn your contract without over expending?  Or do you need to figure out how to deal with a projected over expenditure?

UNDER SPENT Enrollment Tips  Calculating Number of Children  Using an Eligibility List  Transfers  Enrolling Late in the Fiscal Year

OVER SPENT  Outstanding Child Care Invoices  Family Terminations  Requesting Additional Funds  Transfers

PROJECTION ADJUSTMENTS  Update projections regularly  Track all changes that affect child payment  Track number and cost of enrolled children  Track number and cost of terminated children  Track number and cost of outstanding child care invoices  Track number and cost of transfers

ATTRITION

AVERAGE COST PER CHILD  Update provider payment projected cost for child with actual cost  Track number and cost of child transactions per month  Divide total provider payment amount by child transactions to produce average cost per child per month

OTHER VARIABLES

PROJECTION IRREGULARITIES  Projections without corresponding payments  Payments without corresponding projections  Inconsistencies in projected amounts vs. payments  Unrealistic projected amount  Unusually high cost of care  Inconsistencies within a family

INTERNAL & EXTERNAL FACTORS Internal  Case Management Changes  Policy Changes External  Regional Market Rate Changes  New Regulations  Budget Trailer Bills  Cost of Living Adjustments  Contract Augmentations  Family Fees Changes

The “How-To” of Alternative Payment Projections Presentation Panel Beth Chiaro, Stuart Orlinsky, and Terri Sedrick