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The NCACDSS Fiscal Management Committees held its September
2002 meeting on September 11 at the Wake County Human Services Facility.
In attendance were:
| Maggie Parsons: | Cumberland DSS | Jane Johnson | State DSS |
| Marianne Iavarone | Guilford DSS | Terri Land | Franklin DSS |
| James Clark | State DSS | Kathy Lockamy | State DSS |
| Adrienne Johnson | Mecklenburg DSS | Donn Gunderson | Craven DSS |
| Earl Marett | Johnston DSS | Jerry Rhodes | Washington DSS |
| Carrie Laws | Catawba DSS | Sandra Wilson | State DSS |
| Patty St. Hilare | Stokes DSS | Judy Hopkins | State DSS |
| Hugh Cole | State DSS | Sharon Hirsch | Durham DSS |
| Bill Scarlett | Cumberland DSS | Letitia Maynor | Harnett Co. Finance |
| Patricia Dunbar | Wake Human Services | Paul Lesieur | State DSS |
| Jim Cook | Cabarrus DSS | Kathy Huffstetler | Wake Human Services |
| Holly Steed | Wayne DSS | Judy Pelt | Wayne DSS |
| Millie Brown | Duplin DSS | Barbara Willoughby | Wilson DSS |
| Dianne Gallimore | Alamance DSS | Louise Biller | Onslow DSS |
| Bob Eason | Carteret DSS | Nicki Griffin | Franklin DSS |
| Rick Polito | Catawba DSS | Amy Johnson | Mecklenburg DSS |
| Joyce Lee | Orange DSS | Jim Cook | Cabarrus DSS |
Co-Chairman Donn Gunderson called the meeting to order.
Paul Lesieur provided a report on the Joint Agreement of 9-9-02 relating to the state budget for DSS programs for the current year which had been adopted by the General Assembly. Significant were the following: $2,045,157 which would have paid the 50% state share of cost for a SCSA rate adjustment was cut (and would result in a corresponding savings to counties); no funds were cut from either the Adult Home Specialist Fund or the Adult Home Case Management Program; $500,000 was cut from the Intensive Family Preservation Services Program; State Aid to County Administration was cut $1,000,000 (rather than the $5,500,000 which had been proposed by the Senate); and, Welfare Reform Automation was cut $5,400,000, (a non-recurring cut) rather than the $9,800,000 which had been proposed by the House;
Paul discussed the need his office has for counties to be able to complete year-end adjustments on their own (e.g., rather than having the state office do the bulk of this) as he has pressure to close the books on the state fiscal year earlier and earlier. He noted a Controller’s Office letter from February 2000, asking counties to develop the capacity to do their own re-coding at the end of the year. Committee members commented that difficulties are encountered in counties’ efforts to do this as: 1) quarterly allocations are difficult to manage, and 2) as there appear to continue to be bugs in the DMG software’s handling of split entry workers. It was asked whether counties could submit the final reimbursement report and have 48 hours then to see the resulting reports and make any adjustments needed. Paul indicated he would look into whether that could be done.
The Committee next discussed recommendations it might make to the Association regarding the issue of recoupment of overpayments in the Child Day Care Subsidy Program. Bill Scarlett presented the following recommendation which had been developed and adopted by the Day Care Committee earlier in the day:
It is essential for us to continue identifying fraud and acting responsibly to recover funds inappropriately spent. The integrity of our child day care program and the reputation of county departments of social services, generally, are at stake. We are rightly expected to ensure that only eligible families receive help, only in the right amounts, and misspent funds are recovered.
The difficulty counties are experiencing in meeting the needs of families is recognized by our General Assembly and by our Governor. Counties are currently challenged in addressing existing requirements and do not have funding for this purpose.
If NC DHHS is correct in assuming the worst case, i.e., immediate pay back of federal funds when fraud, or error, is identified, then I recommend that the Secretary brief the Governor relative to its implications for program integrity and public support and ask, if approval is required, the General Assembly's concurrence in setting aside state funds currently earmarked for child day care services to be used to provide the payback of federal funds. Counties would replenish these funds as collections are achieved for error or fraudulently spent funds.
There was discussion. Bill pointed out that there is a potential source of funding to be used in this approach. He explained the State has $18.8 million in new state funds for day care services which might be drawn upon for the funds needed to make the payments required. Bob Eason moved, and Roger Penrod seconded, the motion that this be the position recommended by the Fiscal Management Committee to the Association. The motion was amended to provide the Association request the Secretary of DHHS: 1) notify the NCACC of this issue; 2) freeze action on implementation of a repayment policy until an acceptable approach can be developed; and, 3) find a solution. The resolution was adopted unanimously.
Donn Gunderson gave a brief report on the Fiscal Conference scheduled for February 27 and 28 in Raleigh. This topic will be on the October Committee agenda.
Jim Cook and Donn Gunderson reported that Pheon Beal had arranged for them to visit with Paul Lesieur on the following morning to review data relating to the apparent $3.25 million reversion of state administrative funds by counties in FY 02. A report will be made at the October meeting.
Donn Gunderson reviewed the Committee’s Charter. This was adopted by a unanimous vote on a motion by Earl Marett which was seconded by Bob Eason.
The Committee reviewed the Committee’s Scope of Work document.
Next, the Controller’s Office had requested feedback (through the Fiscal list serve) regarding the updating of the Fiscal Manual. The Controller’s Office had discussed this issue with Jim Cook and Donn Gunderson in a telephone conference prior to the meeting. The Controller’s Office had received feedback to the effect that more frequent updates to the Fiscal manual are desired.
Debbie Hawkins had explained in the telephone conference that they have been requested by the people that maintain their Web updates to keep change requests to a minimum. They don't do their own updates and this function is "farmed out" to another area within DHHS. She indicated they will not have any problem with twice a year, but might have problems with more frequent requests. She said in the telephone conference that any Dear County Director letter making changes to coding is added to the Controller's Office Web site and a hard copy is sent to the counties. Notification can also go out via the list serve that a new letter has been added. There are not usually a lot of changes unless they are adding or deleting programs, she stated. What they do at the Controller’s Office, she said, is make a copy of the letters and put them in the front of their manuals for reference. The counties may want to do the same. They will continue to explore being able to update the Fiscal Manual more frequently.
At the Fiscal Committee meeting, there was a strong desire expressed that the Fiscal Manual itself be updated as changes occur, and that the use of change notices, either on paper or posted at the Web site, be eliminated. Committee members would like to see e-mail notices that changes have occurred in specific sections of the Manual simply to alert users that changes have occurred. There was consensus on these concepts, and this appeared to differ from what Debbie Hawkins had told Donn Gunderson and Jim Cook could be done at this point (e.g., update the manual posted on the Web site every six months, post change notices on the Web site, and send e-mail messages that these change notices have been posted.) It was agreed Jim Cook and Donn Gunderson would be back in touch with Debbie Hawkins for further discussion.
Finally, Donn Gunderson reviewed items from the Association Strategic Goals the Committee might address in the coming months.
June Milby had been scheduled to visit the Committee for a discussion and update on NC Health Choice. However, she was unable to attend.
There being no additional business, the Committee meeting was adjourned.
