Background Information: Purpose, Utilization, Operation and FMAP & FFP Rates

1. Understanding the SACWIS Implications of theTITLE IV-E PROGRAMS QUARTERLY FINANCIAL REPORT (Form CB-496)

2. Understanding the SACWIS Implications of the NewTitle IV-E Programs Quarterly Financial Report (Form CB-496) • Background Information: Purpose, Utilization, Operation and FMAP & FFP Rates • Overview and Design of Form CB-496: Programs Covered, Cost Categories, Key Definitions. What’s New & Form Design • Title IV-E Automated Systems Cost Reporting SACWIS Operational Costs, Sub-categories of SACWIS Developmental Costs & Non-SACWIS Automated Systems Costs • CB-496 Reporting - SACWIS Design Implications Cost Accumulation, Cost Allocation Statistics & Caseload Data

3. Background Information – Purpose The Title IV-E Programs Quarterly Financial Report is needed to: Collect expenditure, funding request (estimates), and caseload composition data on one report Track each of the three title IV-E entitlement programs (Foster Care, Adoption Assistance & Guardianship Assistance) separately Break out the differing rates of Federal reimbursement and required IV-E agency match by categories of cost Report in accordance with special requirements applicable to automated systems and demonstration project costs Accomplish ongoing program funding adjustments while applying applicable claiming time limits Why is a Specialized Financial Reporting Form needed? 3

4. Background Information - Use Report Utilization The Title IV-E Programs Quarterly Financial Report serves as a mechanism to report and track information used: In the calculation of quarterly program grant awards*1 (estimates & expenditure reconciliations) In the determination of the allowability of reported program expenditures As a source of information on program performance reported to Congress or otherwise made available to the public *1- Grant awards provide Federal Financial Participation (FFP) to IV-E agencies to provide assistance payments and administer title IV-E plans. 4

5. Background – Operation Functioning of the CB-496 Reporting Form Quarterly submission (electronically through OLDC) 30 days after close of each calendar quarter Replaces previously used Form ACF-IV-E-1 Implementation in the 1st “claiming” quarter of FY 2011 Applicable to all State and Tribal IV-E agencies 5

6. Background Information – FMAP and FFP Rates • Federal Medical Assistance Percentage (FMAP) Rates - Applicable only to title IV-E Assistance Payments. • Each FMAP rate is specific to a grantee and a Federal fiscal year (FFY) • Developed by HHS using a statutory formula and appropriate data (Basic FMAP rates can vary from 50% to 83%). • Tribal FMAP rate calculation procedures notice published in the Federal Register for comment purposes on October 8, 2010. • Federal Financial Participation (FFP) Rates– Applicable to Title IV-E Administration, Automated Systems Development & Operation and Training (from 50% to 75%). • FFP rates differ for different categories of cost and can vary by FFY. • FFP rates are the same for all IV-E agencies.

7. Overview of Form CB-496 – Title IV-E Programs Covered*1 Foster Care Helps to provide safe and stable out-of-home care for children until they are safely returned home, placed permanently with adoptive families or placed in other planned arrangements for permanency. Adoption Assistance Provides funds to IV-E agencies to facilitate the timely placement of children, whose special needs or circumstances would otherwise make it difficult to place, with adoptive families. Guardianship Assistance Provides kinship guardianship assistance payments to relatives who provide permanency by assuming legal guardianship of children for whom they have cared while foster parents. *1- The title IV-E CFCIP and ETV programs utilize Form SF-269 (SF-425 upcoming) rather than Form CB-496. 7

8. Overview of Form CB-496 –Categories of Title IV-EProgram Costs • Assistance Payments – Payment to cover the cost of (and the cost of providing) food, clothing, shelter, daily supervision, school supplies, a child's personal incidentals, liability insurance with respect to a child and certain reasonable travel for the child. • Administration - Costs incurred by the IV-E agency or agencies it supervises for purposes of administering title IV-E programs except costs for certain automated systems and training. • Automated Systems - Developmental and operational costs of an automated system that in accordance with the terms of an approved advance planning document (where required) is designed to meet the requirements of a Statewide Automated Child Welfare Information System (SACWIS). • Training – Costs for development, delivery or participation by eligible staff, providers and partners in training. • Demonstration Projects – Costs for approved title IV-E demonstration projects authorized under Section 1130 of the Social Security Act.

9. Overview of Form CB-496 – Key Definitions (Financial) Current Quarter Claims – The Current (Claiming) Quarter is the quarter just ended, for which expenditures made in or allocated to that quarter are being reported. Prior Quarter Adjustments - A Prior Quarter is any quarter that ended prior to the start of the current quarter identified on the financial report. Adjustments are expendituresnewly reported or revised (increase or decrease) from a previously reported amount. Increasing prior quarter adjustments must generally be reported and received within 2 years of the last day of the fiscal quarter in which the expenditure was made. Next Quarter Estimates- The Next (Estimating) Quarter is the quarter about to begin (ending date is always six months after the ending date of the Current Quarter). This is the only section of the financial report where projected rather than actual expenditures are reported.

10. Overview of Form CB-496 –Key Definitions (Program) Foster Care Candidates (Pre-Placement) – Children are considered as in a “pre-placement” foster care status when determined (or redetermined beyond six months) by the IV-E agency as at imminent risk of removal from home as evidenced by the agency either: • Pursuing his/her removal from the home or • Making reasonable efforts to prevent such removal and a decision that the out of home placement for the child will be a foster care setting (with appropriate supporting documentation). A child may not be simultaneously both in foster care placement and a candidate for foster care.

11. Overview of Form CB-496 –Key Definitions (Program) Foster Care (In-Placement) – Children are considered as “in-placement” in a foster care setting where: 24-hour substitute care is provided for children placed away from their parents or guardians and, for whom the IV-E agency has placement and care responsibility. A child is in foster care in accordance with this definition regardless of whether the foster care facility is licensed and payments are made by the State/Tribal or local agency for the care of the child or whether there is Federal funding of any payments that are made. 11

12. Overview of Form CB-496 –What’s New CB-496 = Form ACF-IV-E-1 data – SAC75 – FC Other Admin. + new/modified lines reflecting the Fostering Connection to Success and Increasing Adoption Act of 2008 (Public Law 110-351) provisions or other identified financial reporting needs such as: • Tribal Participation (Direct & IV-E Agreements or Contracts) • Guardianship Assistance & Post-Demo Guardianship • Administration Category Modifications • SACWIS Development Projects (Multiple Lines Available) • Training of Professional Partners • Children AssistedEnhancements • New Funding Activity Codes for Prior Quarter Adjustments

13. Design of the Title IV-E Programs Quarterly Financial Report – Components(*1) Part 1 Claims, estimates, and caseload information on all covered programs Part 1 information collected in four sections Part 2 Details on prior quarter adjustment claims identified in Part 1 and Part 3 Broken out by increasing/decreasing, quarter incurred and cost category Part 3 Details on Waiver Demonstration Project amounts identified in Part 1(*2) 13 *1- Not all parts, sections or lines apply to all IV-E agencies *2- Not relevant to Tribal IV-E agencies

14. Design of the Title IV-E Programs Quarterly Financial Report – Part 1 • Four Sections: • SECTION A: FOSTER CARE • SECTION B: ADOPTION ASSISTANCE • SECTION C: GUARDIANSHIP ASSISTANCE • SECTION D: AVERAGE MONTHLY NUMBER OF CHILDREN ASSISTED

15. Design of the Title IV-E Programs Financial Report – Part 1 Heading & Certification 15

16. Design of the Title IV-E Programs Quarterly Financial Report – Part 1 Part 1, Section A

17. Design of the Title IV-E Programs Quarterly Financial Report – Part 1 Part 1, Section A Continued - 17

18. Design of the Title IV-E Programs Quarterly Financial Report – Part 1 Part 1, Section B

19. Design of the Title IV-E Programs Quarterly Financial Report – Part 1 Part 1, Section C

20. Design of the Title IV-E Programs Quarterly Financial Report – Part 1 Part 1, Section D

21. Design of the Title IV-E Programs Quarterly Financial Report – Part 2 Sections A & B

22. Design of the Title IV-E Programs Quarterly Financial Report – Part 2 Funding Category Codes

23. Design of the Title IV-E Programs Quarterly Financial Report – Part 3 Heading & Section A

24. Design of the Title IV-E Programs Quarterly Financial Report – Part 3 Sections B-D

25. Title IV-E Automated Systems Cost Reporting Part 1, SECTION A: FOSTER CARE SACWIS Costs (50% FFP Rate) Line 11 – SACWIS Operational Costs (Form ACF-IV-E-1, Part 1, FC, Line 5d) Unchanged from ACF-IV-E-1 Stand-alone line (no longer part of Total FC Admin.) Line 12 – SACWIS Developmental Costs – Project 1 – APD Required (Form ACF-IV-E-1, Part 1, FC, Line 6) Same as SACWIS Developmental Costs from ACF-IV-E-1 Covers all APD related SACWIS developmental costs unless a SACWIS Project 2 has been approved or some costs are reportable outside of the approved APD 25

26. Title IV-E Automated Systems Cost Reporting Part 1, SECTION A: FOSTER CARE SACWIS Costs (50% FFP Rate) Line 13 – SACWIS Developmental Costs – Project 2 – APD Required (Form ACF-IV-E-1, Part 1, FC, Line 6) New reporting line Covers only costs for a SACWIS Project 2 APD that has been approved by ACF Line 14 – SACWIS Developmental Costs – No APD Required (Form ACF-IV-E-1, Part 1, FC, Line 6) New reporting line Covers SACWIS developmental costs that are reportable outside of the approved APD 26

27. Title IV-E Automated Systems Cost Reporting Part 1, Multiple Sections Non-SACWIS title IV-E Automated Systems Costs (50% FFP Rate) Section A, Line 8 – In-Placement- Agency Management (Foster Care) – (Form ACF-IV-E-1, Part 1, FC, Line 5e) - Foster care related financial management, policy and program operations, administration (e.g. indirect costs) associated with training and non-SACWIS systems development and operation. Section B, Line 23 - Administration (Adoption) -(Form ACF-IV-E-1, Part 1, AA, Line 3) - Overall agency administration allocable to the title IV-E Adoption excluding non-recurring costs Section C, Line 33 - Administration (Guardianship) -(Not on Form ACF-IV-E-1) - Overall agency administration allocable to the title IV-E Guardianship excluding non-recurring and kinship guardianship post-demonstration costs. 27

28. CB-496 Reporting - SACWIS Design Implications Cost Accumulation Program Classification - Costs must be properly classified as Foster Care, Adoption Assistance, Guardianship Assistance, Demonstration Project (experimental & control group) or Kinship Guardianship Post-Demonstration Assistance Payment Type– Requirement for States to separately identify title IV-E assistance payments involving a IV-E cooperative agreement or contract with a federally recognized Tribe. Administration Categories –Reporting in revised Foster Care categories including in-placement and pre-placement as well as non-recurring costs for Adoption Assistance and Guardianship Assistance and. if applicable, kinship guardianship post-demonstration services. SACWIS Category – Costs must be clearly identified as operational or developmental subject to an ADP (Project 1 or 2) or not subject to ADP tracking. Training Category –Segregation by applicable FFP rate for trainees and topics as per approved title IV-B training plan. 28

29. CB-496 Reporting - SACWIS Design Implications Cost Allocation Statistics Random Moment or Other Time Study Design - Costs must be properly allocated by program (i.e. Foster Care, Adoption Assistance, Guardianship Assistance) program component (i.e. Foster Care In-placement & Pre-placement, Demonstration Project (experimental & control group) or Kinship Guardianship Post-Demonstration) and reporting cost category or sub-category. Program Eligibility Rates – Proportion of children that are title IV-E eligible for cost allocation purposes in each program area. Documentation of Foster Care Candidate Determinations – Effectiveprospectively from beginning of month in which determined. 29

30. CB-496 Reporting - SACWIS Design Implications Caseload Statistics – Average Monthly Number of Children Assisted Foster Care Line 41- In-Placement IV-E Maintenance Assistance Payments Line 42 - In-Placement IV-E Funded Administration Line 43 - In-Placement Any (IV-E & Non-IV-E) Payments or Administration Line 44 - Pre-Placement IV-E Funded Candidate Administration Adoption Assistance Line 45 - Title IV-E Assistance Payments Line 46 - Any Assistance Payments (IV-E & Non-IV-E) Line 47 - Title IV-E Non-Recurring Administrative Cost Expenses Program Eligibility Rates Guardianship Assistance Line 48 - Title IV-E Assistance Payments Line 49 – Any Assistance Payments (IV-E & Non-IV-E) Line 50 - Title IV-E Non-Recurring Administrative Cost Expenses Line 51 – Title IV-E Post-Demonstration Guardianship Assistance or Services 30

31. - CB-496 Change Matrix: (Handout)- CB-496 Program Instruction: http://www.acf.hhs.gov/programs/cb/laws_policies/policy/pi/2010/pi1014.pdf- Federal Register Notice dated October 8, 2010 on Tribal FMAP: http://edocket.access.gpo.gov/2010/2010-25344.htm Resources:

32. QUESTIONS OR COMMENTS