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:
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.
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.
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.