Agencies have the option of receiving two (2) advance payments on their Administration and Services allocations.
If Advance payments are requested they will be calculated as follows:
- January 2006 Advance – 1/24th of the Administration Allocation + 1/24th of the Services Allocation
- February 2006 Advance – 1/24th of the Administration Allocation + 1/24th of the Services Allocation
The W-2 Contract agencies who must earn a portion of their Administration and Services funding will receive advance payments on their full Administration and Services allocations. The funding amount that needs to be earned will not affect the advance payments they are entitled to.
Recovery (Take Back) of Advance Payments
The recovery of advance payments will occur during the last two (2) reimbursement months in each two (2) year funding period or at the time when the W-2 Contract Agency’s reported expenditures equal or exceed its current allocation, less the advances on that allocation. The Department reserves the right to begin recovery of advance payments (also known as Take Back) prior to that which is stated above if a W-2 Contract Agency is under-spending its allocation and full recovery would not be possible in only two (2) months worth of reimbursements.
Admin Allocation: $600,000
Advance Payments: 2 @ $50,000 (1/12th of $600,000)
The Administration advance payments will be charged against the CORe Administration contract code (2100), and the Services advance payments will be charged against the CORe Services contract code (2200). Agencies will receive reimbursements for allowable expenditures as reported on their monthly expense reports up to the point in which their full allocation has been paid out to them. Agencies are only entitled to receive reimbursement for allowable expenditures up to their contract amount, so they will still need to submit allowable expenditures to support or offset the receipt of the advance payments.
CORe will be set up to take back 50% of the advance payments issued with the November 2007 reimbursement.
- If your agency had only incurred $450,000 of administration expenditures through October 2007, then you wouldn’t have reached the point when the system stops reimbursing you but you only have two months left to submit expenditures to offset the $100,000 received in advance payments. $50,000 (the amount of your first advance payment or 50% of the total advance payments issued) will be deducted from your November reimbursement. If you do not have enough expenditures submitted to cover this deduction, a receivable will be created.
- If your agency has already incurred $540,000 of administration expenditures through October 2007 then you would have already submitted $40,000 of expenses to offset your 1st advance payment. With the November 2007 reimbursement the remaining amount of your first advance payment will be deducted from your reimbursement, which would be $10,000 in this scenario.
CORe will be set at 100% take back for the December 2007 reimbursement, which results in the final 50% (2nd Advance Payment) being taken back. If an agency does not submit sufficient allowable expenditures to support the payments made to them, the amount they received over the amount of their allowable expenditures will be deducted. Any deductions that cannot be made from the current reimbursement calculation will result in an accounts receivable due to DWD.