Appendix A: University Billing Procedures for Title IV-E Contracts
Title IV-E Training Contracts Financial Handbook August 2009
Each type of Title IV-E expenditure is calculated separately, since a different percentage, or FFP rate, is applied to each, as indicated in the table below:
Type of Expenditure |
Federal Financial Participation (FFP) Rate |
|---|---|
Training Expenses |
75% |
Indirect Costs |
50% |
To submit a bill for a Title IV-E expense, the worker takes the following steps:
1. Determine that all expenses included under each expenditure type are allowable expenses. Do not include any unallowable expenses in the calculation.
2. Ensure that the expenses are grouped together by type of expenditure (that is, training and indirect costs).
3. Calculate a total for each expenditure type by adding all expenses that fall under that expenditure type.
4. Multiply the expenditure by the population rate.
The population rate is based on the average of the percentage of Title IV-E-eligible children for each of the three months in a federal quarter. The rate is used to determine reimbursement expenditures incurred in each federal quarter: October-December, January-March, April-June, and July-September. The assigned contract manager sends out population rates on a quarterly basis.
5. Multiply training expenses by 75 percent. Multiply indirect costs by 50 percent.
For Training Expenses |
For Indirect Costs |
|---|---|
The reimbursement is calculated by multiplying the expenditure total by the population rate, and then multiply the result by the FFP rate of 75% for training expenses. The final product of this calculation is the amount, which the university may bill to DFPS for training expenses. |
The reimbursement is calculated by multiplying the expenditure total by the population rate, and then multiply the result by the FFP rate of 50% for indirect costs. The final product of this calculation is the amount, which the university may bill to DFPS for indirect costs. |
Example
Calculations
Steps 1 and 2 above have been completed.
For step 3, the totals for each expenditure type are as follows:
Training Expenses = $600
Administrative Expenses = $1,000
For Training Expenses
Step 4 for training expenses involves applying the population rate to the expenditure total before applying the applicable FFP rate:
Expenditure Total... |
Multiplied by the Population Rate... |
Equals |
|---|---|---|
$600 |
73.81% |
$442.86 |
In step 5 for training expenses, the applicable FFP rate is applied to the product obtained in step 4:
Product in Step 4... |
Multiplied by the Applicable FFP Rate... |
Equals |
|---|---|---|
$442.86 |
75% |
$332.15 |
This is the federal reimbursable amount to be billed to DFPS for training expenses. The difference of $110.71 (calculated by subtracting $332.15 from $442.86) is the total certified match, or the amount the university must pay. The university must certify that it has paid this amount out of state or local funds.
For Administration and Other Expenses
Step 4 for administration and other expenses involves applying the population rate to the expenditure total before applying the applicable FFP rate:
Expenditure Total... |
Multiplied by the Population Rate... |
Equals |
|---|---|---|
$1,000 |
73.81% |
$738.10 |
In step 5 for administration and other expenses, the applicable FFP rate is applied to the product obtained in step 4:
Product in Step 4... |
Multiplied by the Applicable FFP Rate... |
Equals |
|---|---|---|
$738.10 |
50% |
$369.05 |
This is the federal reimbursable amount to be billed to DFPS for training expenses. The difference of $369.05 (calculated by subtracting $369.05 from $738.10) is the total certified match, or the amount the university must pay. The university must certify that it has paid this amount out of state or local funds.
Submitting Title IV-E Bills to DFPS
Universities must use Form 4116 State of Texas Purchase Voucher to submit their bills to DFPS. Form 4116 is specifically set up for university billing and is provided to universities by the DFPS contract manager or the Federal Funds Division of DFPS.
University staff:
• complete the stipend worksheet and calculation worksheet attachment to Form 4116;
• complete page one of the voucher;
• submit the bills, voucher, and worksheet to the assigned DFPS contract manager.
The DFPS state office in Austin and the Federal Funds Division of DFPS may, at their discretion, require more extensive documentation to support the bills.
Reviewing Submitted Purchase Vouchers
At a minimum, when reviewing submitted purchase vouchers, the contract manager does as follows:
• Verify that the Payee Identification Number is correct
• Verify that the payee’s address is correct and matches the mail code stored in the HCATS and HHSAS systems for that address (See Appendix C: Glossary)
• Verify that the dates of service are correct and within the time frames for the contract
• Verify the contract number
• Ensure that the object codes for the population rate are correct (AOBJ)
• Verify that the Regional/Division code is 566
• Verify that the program activity code (PAC) is 13500
• Verify that the items claimed are allowable under Title IV-E
• Verify that the population rate is correct
• Verify that the calculation worksheet has been included (the calculation worksheet categorizes expenses, such as travel, administration, and foster care maintenance)
• Verify that the FFP rates are correct
• Verify the calculations are correct
• Verify that the purchase voucher has been signed by the university representative who certifies expenses
All billings must be submitted for reimbursement in accordance with the time limit specified in the university contract. See 45 CFR §95.7. This subpart establishes a two-year (eight quarter) time limit for a state to claim federal financial participation in expenditures under state plans approved under Title IV-E.
Timely Submission of Vouchers
Vouchers or amended vouchers submitted to DFPS later than seven quarters after the end of the quarter in which the expense was incurred are not processed, unless DFPS determines that it can submit the bill to the federal government for payment in a proper and timely fashion.
Time is calculated based on the federal fiscal year, which runs from October 1 through September 30 and is quarterly.