GENERAL FISCAL CONCERNS
updated 10-2002
AUTHORITY
Rehabilitation Act of 1973 as amended, Sec. 103 (a)
Federal Regulation: CFR 361.5 (b)
Kentucky Revised Statute: KRS 45A
Administrative Regulation: 781 KAR 1:020 and 200 KAR 5
For the purpose of this manual, use of the terms must or shall
reflect requirements of Federal law or regulation or state or administrative
regulation and must be adhered to strictly.
GENERAL REGULATIONS FOR PROVIDING SERVICES AND AUTHORIZATIONS
All purchases for individuals will be authorized and paid utilizing, as
appropriate, the Department’s Authorization for Goods and/or Services. When an
expenditure is $10,000 or more, the Field Administrator will countersign and the
Director of Program Services will review the expenditure prior to the
authorization being issued to the vendor. Approval of the expenditure will be
evidenced by signature of the Field Administrator on the authorization.
Authorizations must be prepared, signed and dated by the counselor, and
delivered to the vendor before a service is initiated. The Department will not
approve payment for services provided to an individual when the Department has
made no prior authorization. Each item must be consistent with the provisions
planned and all services clearly itemized with their respective costs. The
Department will ensure that physicians or other vendors of services agree not to
charge or accept from the applicant/consumer or his/her family any payment for
such services unless the amount of such charge or payment is previously known to
and, where applicable, approved by the Director of Program Services
All authorizations are submitted with a pay or non-pay descriptor. A non-pay
descriptor means that the payment is processed in a different manner, i.e.
interaccount expenditure to another state agency, imprest cash, contract, etc.
Counselor must verify that a service has been rendered before the
authorization is sent to Frankfort for payment. Service is not considered
received on psychological or doctor reports until the report is received in your
office.
AUTHORIZATION SERVICE CODE AND EXPENDITURE CATEGORIES
Authorized services are classified by expenditure code. An individual’s
service code (case status) determines which expenditure codes can be used. With
the exception of diagnostics, most expenditure categories for services also
require that a work plan written date be in the consumer record of the case
management system before the service can be authorized. Service codes are listed
below:
11 - Services for Individuals, Status 02 & 04
(diagnostic)
12 - Services for Individuals, Status 06
13 - Services for Individuals, Status 10-24
14 - Services for Individuals, Status 32 (post employment)
All authorized services should be charged to the
appropriate Expenditure Category Code. Each subcategory is listed below with a
brief description of the types of services provided under a particular
subcategory. More detailed information is included in this Manual under
Services and under other topics, (please refer to the Table of Contents). The
information below is only a guideline and the more detailed information should
be referred to before authorizing for a service.
Diagnostic and Evaluation (10) - Services in this
subcategory may be provided at any stage of the rehabilitation process other
than referral and closure and are usually provided to determine eligibility
for services and the nature and scope of services to be provided..
Medical diagnostic services may include: medical and
surgical examination, psychiatric evaluation, consultation with examinations
by specialists, trial treatment for differential diagnosis, stabilization on
drug therapy, or determination of treatability in the case of emotional
disturbance, and other medically recognized diagnostic services.
Surgery and Treatment (21) – This subcategory
includes services that are necessary to correct or substantially modify a
physical or mental condition, and may include the services of physicians,
surgeons, assistant surgeons, and anesthetists that are not on the staff of
the hospital and not included in the costs of hospitalization (surgery may
include pre-operative and post-operative care). Optometrists and visual
services are also provided under this subcategory.
Prosthetic and Orthotic Appliances (22) – In
addition to prosthetic, orthotic, and visual appliances or aids, this
subcategory also includes wheelchairs and surgical appliances such as belts,
trusses, corsets, elastic stockings, arch supports, orthopedic shoes,
suspensories, and crutches.
Hospitalization and Convalescent Care (23) - This
subcategory includes payments to hospitals approved by the Agency for
inpatient or outpatient hospital services in connection with medical or
surgical treatment. Also included are convalescent or nursing homes for
individuals including room, board, nursing home care and other services
provided by the facility under agreement with the State Agency; nursing
services provided in the individual’s own home by organizations or
individuals; or special nursing services provided during hospitalization by
hospitals or related facilities and not included in the hospital bill.
Other Physical Restoration (24) - This subcategory
is used for restoration services that cannot be properly classified under any
other subcategory.
Training (3-) – The training category has eight
subcategories (listed below) that cover the cost of various types of training
and training related materials or services. Training may be provided at
schools, colleges, universities, rehabilitation facilities, by tutor,
correspondence, apprenticeship, in an organized on-the-job training situation,
or by some other organized training program. Training may include: personal
adjustment training, prevocational training, work adjustment training,
training in the use of artificial limbs, hearing aids, or other appliances,
remedial training, speech and hearing training that is not medically directed,
lip reading, mobility training, or any other kind of organized training needed
to meet the rehabilitation needs of the individual being served.
Training materials include such items as: writing
materials, learning aids, processing materials used in mechanical or technical
training; special supplies, laboratory aprons, nurses' uniforms, breakage
fees, and tools, machines and small equipment used in technical, mechanical,
commercial, adjustment and on-the-job training.
Academic Associate, Baccalaureate and Other Higher
Degree Training (31) - Include in this subcategory the costs of
academic associate, baccalaureate, or graduate higher-degree training
regardless of whether the training is full-time or part-time. Baccalaureate
and higher degree training is defined as training which is higher than
secondary education and which leads to a baccalaureate or higher degree.
Academic or associate degree training is defined as training which is higher
than secondary education, which consists of basic academic courses, and
which leads to an associate degree.
Other Academic (32) - Include in this
subcategory the cost of training at the elementary or secondary level.
Business Training (33) - Include in
this subcategory the costs of business training. Business training is
defined as training, which leads to a certificate and usually provides
specific job-related instruction but does not include broad-based academic
courses. Skills to be obtained may include office practice, typing,
accounting, bookkeeping, computer skills (e.g., word processing, data
entry), etc. Courses included in business training are not usually accepted
for credit in an academic associate or a baccalaureate degree training
program.
Trades Training (34) - Include in this
subcategory the costs of trades training. Trades training is defined as
training that may lead to a license or a certificate and provides specific
job skills, but does not include broad-based academic courses. Skills to be
obtained may include welding, woodworking, metalworking, TV repair,
electrical wiring, automobile mechanics, etc. Courses such as these are not
usually accepted for credit by academic associate or baccalaureate degree
programs.
On-the-Job Training (35) - Include in this
subcategory any costs in connection with on-the-job training for an
individual. Under this program the individual usually works for wages while
learning the skills of the job.
Personal and Vocational Adjustment (36) -
Include in this subcategory costs incurred for training that helps an
individual adjust to a particular situation that is hindering his/her
rehabilitation potential, such as: work conditioning, developing work
tolerance, training in the use of artificial limbs and/or appliances,
remedial training, literacy training, mobility training, lip reading,
braille, etc.
Technical Associate Degree Training (37) -
Include in this subcategory the costs associated with technical associate
degree training which is defined as training higher than secondary education
and consisting of a combination of basic academic and technical courses,
that lead to an associate degree.
Miscellaneous (38) - Include in this
subcategory costs associated with training which cannot be classified in any
other training subcategories.
Maintenance (40) - Include in this subcategory
basic living expenses necessary to derive the full benefit of other vocational
rehabilitation services such as long-term training, or while in travel status
for a short-term training program or other service. Also included are basic
expenses incurred in conjunction with job interviews or employment at home or
away from home, up to receipt of initial paycheck.
Services to Family Members (50) - This
subcategory is for providing services to members of an individual's family
when such services are necessary to the adjustment or rehabilitation of the
individual, except at referral or at closure.
Transportation (60) - Include in this subcategory
transportation that will enable the individual to arrive at appointments for
assessment, medical services, training, work, or any other rehabilitation
service, and if necessary, their escorts, attendants, or guides. This includes
taxis and bus fares for consumers while in any status except referral or
closure.
Computer Equipment (80) - Include in this category
all costs directly related to purchase, use, or access of computer services,
such as microcomputer equipment purchase, creation or alteration of software
to accommodate an individual's disability, access to mainframe computer
systems, etc.
Other – Personal Assistance Services, Tools, Initial
Stocks, Equipment, Supplies, and Licenses (90) – This subcategory
includes goods, licenses, or personal services necessary to render an eligible
individual able to participate in a training program, engage in a gainful
occupation, or to determine his/her rehabilitation potential.
Property Modifications (91) – This subcategory
includes modifications to vans, vehicles, home, or work site when it is deemed
necessary to render an eligible individual able to engage in a gainful
occupation or to determine his/her rehabilitation potential.
Assistive Technology/Rehab Engineering (92) – This
subcategory includes services that are intended to help the individual
maintain or enhance his/her ability to function personally, socially, and/or
vocationally. Services provided under this subcategory are:
Assistive technological aids or devices include
any item, piece of equipment, or product system, whether acquired
commercially off the shelf, modified, or customized, that is used to
increase, maintain, or improve functional capabilities of the individual.
Assistive technology services are services that
directly assist an individual in the selection, acquisition, or use of an
assistive technology device.
Rehabilitation engineering is a complex of
services entailing an original design or concept. The original design or
concept must be innovative and not an adaptation of an existing mode of
accommodation. Typically the involvement of a rehabilitation technology
specialist would be required and can encompass devices, equipment, aids, and
modifications to the environment, work site or transportation.
Job Services (93) -.This subcategory includes job
finding and job placement services.
RECEIPTS FOR TOOLS, EQUIPMENT, ETC.
Various items, such as tools, equipment, supplies, etc. will require that a
Receipt, Receipt/Transfer Agreement, or Security Agreement be signed by the
recipient. Receipts for non-transferable items are retained in the field office.
Receipt/Transfer Agreements for items over $500 and Security Agreements are sent
to the Systems Management Branch in Central Office.
PURCHASE THROUGH BID PROCEDURE
No counselor will commit the Department to purchase tools, equipment, etc.
over the Agency limit of purchase ($3,000) without bids. If the purchase is
over $3,000, the counselor must consult with the Field Administrator, and they
must be in agreement that the purchase is necessary.
 | The list of items to be purchased will be submitted to the Field
Administrator along with two copies of the IPE justifying the request with
strong emphasis on the necessity of the purchase and how it is to be used
by the individual. If approved, the Field Administrator must sign the IPE
and submit to the Finance Branch. |
| A listing of items to be purchased with sufficient description for
ordering must be attached and will include: budget unit number, delivery
address, estimated cost and specifications. The specifications must be
explicit since they will be used to write the requisition that will be
sent to the Division of Purchases and should include: model numbers,
dimensions, branch, pictures, etc. Additionally, the name and address of
the vendor who provided the specifications must also be shown. Contact the
Central Office Finance Branch immediately if there is need for correction
of errors. |
| When the bid is awarded, the counselor will receive a copy of the
purchase contract showing the exact cost and the vendor. The counselor
will prepare a nonpay Authorization for Goods and/or Services. The
delivery address should be designated to the counselor’s office address,
except for large, heavy equipment. |
| Upon delivery, the counselor must verify against the purchase contract
prior to or at delivery of equipment to the individual. |
| When all materials on the purchase contract have been received, the
counselor will date and send the copy of the purchase contract, marked
received, and the signed Receipt/Trans Agreement to the Financial
Management Branch in Central Office. Central Office will then pay the
vendor. |
IMPREST CASH FUND ACCOUNTS
When a counselor has established a legitimate need, funds may be expended
from imprest cash if the item is included in the Agency Imprest Cash Authority
Number 252. The non-pay authorization may be authorized to the recipient of the
service, but should be authorized to a vendor whenever possible.
1) Payment made directly to recipient of service, is not to
exceed $500.00 per non-pay authorization, (exception attendant care).
Services include:
- Maintenance, including room, board, apartment rental and/or subsistence.
- Transportation expenses (other than purchase of airline ticket). Use the
formula in the Counselor Manual to calculate transportation.
- Uniform expenses.
- Incidental needs, i.e., necessary toiletries, laundry, etc., not to
exceed $100.00 per month.
- Lodging, less than one week, daily rates only.
- Testing and or license fees for customers.
- Attendant care, cannot exceed $2000.00 in a month's period.
When a check is issued to the recipient of the authorized service, the
recipient should be informed of the purpose for which the money is provided
and the counselor should have reasonable expectation that the money will be
used for the intended purpose.
An original invoice/receipt must be obtained and filed in the individual's
file. The non-pay authorization will be transmitted to Central Office. The
check and a copy of the non-pay authorization will be mailed back to the
initiating counselor. The non-pay authorization should be signed by the
individual and the counselor verifying receipt of the check and the backup
information filed in the individual’s folder.
2) Payments to vendors from Imprest Cash can be made for the
following:
- Maintenance including room, board, apartment rental, etc.
- Transportation expenses (other than purchase of an airline ticket).
- Drugs and medical supplies.
- Interpreter services, note taking services, tutoring services, attendant
care and childcare.
- On-the-job training services.
- Testing and/or license fees (original application must accompany non-pay
authorization).
When delivery of services has been confirmed, a hard copy of the non-pay
authorization, along with the original vendor signed invoice or Agreement for
Services should be mailed to Central Office and the non-pay authorization
should be transmitted.
If services are not rendered or goods received, the check should be
retrieved and an Authorization Refund document should be prepared, attached to
the check and mailed to the Systems Management Branch in Central Office.
Copies should be filed in the individual’s folder.
CATASTROPHIC FUND
A Catastrophic Fund has been established in response to the needs of
counselors and consumers. There are times when very large expenditures are
necessary in order for a consumer to achieve employment. The outlay of the funds
would deplete the caseload budget to the extent that other consumers on that
caseload might not receive needed services.
Counselors can access the Catastrophic Fund for any expenditure of $10,000 or
more. An exception to the $10,000 amount will be considered if a counselor has
multiple expenditures, none of which singularly amount to $10,000 but which
together constitute a significant amount of the caseload budget. An example
would be a counselor with five consumers in one fiscal year who need van
modifications. After all comparable benefits and the Rehabilitation Technology
budget contribution were considered the caseload budget would still have to
provide $5,000 per modification or a total of $25,000. This would be a major
portion of the caseload budget, and thus, would be considered an appropriate use
of the Catastrophic Fund.
For approval to utilize the Catastrophic Fund:
1. Consult with Field Administrator. If both the counselor and Field
Administrator agree that the circumstances require the use of the Catastrophic
Fund;
2. Send a letter to the Assistant Director of Program Services briefly
describing the needed purchase, the amount, and the results of an exploration
of comparable benefits. Include the authorization for the purchase using
Budget Unit Number (BUN) 6795 which is a separate BUN for this purpose.
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