N.J. Admin. Code § 10:164A-3.2 - Funding requirements

(a) The agency shall submit a cost proposal, which shall itemize all costs incurred in the operation of the agency, with supportive documentation. No more than 15 percent of the total program operating budget shall be allowed for administrative costs and no more than one percent of the total program operating budget shall be allowed for advertising costs. The Department shall analyze the cost proposal and contrast costs with comparable facilities within their region to determine the agency's allowable cost per unit of service. The Department shall reimburse from 20 percent to 75 percent of the agency's allowable costs.

(b) For clients whose income falls below 300 percent of SSI, the Department shall pay 75 percent of the agency's allowable costs. The agency shall obtain up to the remaining 25 percent of the agency's allowable costs (not reimbursed by the Department) from other sources such as donations, foundation funds, or from the client's families or funds in accordance with the sliding fee scale developed in accordance with the table in (c) below. The amount of the center's per diem cost reimbursed by clients and/or families shall not exceed 25 percent of the per diem rate established by the Department for these clients.

(c) For clients whose income falls between 300 percent of SSI and 80 percent of the maximum moderate income limit for the highest income region published by the Council on Affordable Housing (COAH), effective July 1 of each year, incorporated herein by reference, the Department will subsidize between 20 and 60 percent of the agency's allowable costs in accordance with the sliding fee scale developed in accordance with the table below. The percentage of the agreed upon rate not paid by the Department will be the responsibility of the client. The following table reflects the formulas used to calculate income levels for each rate of reimbursement.

Income Guidelines
Percent of COAH	Formula for	Percent	Percent	Agency
for Highest Single	Highest Couple's	Paid by	Paid by	Responsibility
Person's Income	s Income	Department	Client
80%	80% COAH*	20%	80%	0%
+ F**
70%	2x300% SSI	30%	70%	0%
for Single
60%	60% COAH	45%	55%	0%
+ F
50%	50% COAH	60%	40%	0%
+ F
% of SSI for
Highest Single
Person's Income
300%	300% SSI + F	75%	25%	0%
269%	269% SSI + F	75%	20%	5%
238%	238% SSI + F	75%	15%	10%
207%	207% SSI + F	75%	10%	15%
175%	175% + F	175%	175%	20%
Below 175%	174 + F	175%	0%	25%

*5*Where: *5**COAH is the single person income limit. *5***F is the factor used to calculate Highest Couple's Income limit. F = *5*(2x300% SSI)--70% COAH. *5*

(d) If the agency accepts the proposed per diem rate, a Letter of Agreement will be prepared for signature by authorized representatives of the Department and the agency. The Department shall then pay the agreed upon per diem costs per client per day of authorized service.

(e) Upon execution of a Letter of Agreement, the agency may begin to identify eligible clients and submit a Waiting List Application form to the Department requesting approval for funding for each eligible client. Priority shall be given to clients below 300 percent of SSI.

(f) Depending on the availability of funding, the Department shall authorize enrollment of the client for up to three days per week.

Notes

N.J. Admin. Code § 10:164A-3.2

Amended by R.2006 d.380, effective 11/6/2006.
See: 38 N.J.R. 2365(a), 38 N.J.R. 4694(a).
In (a), inserted "program" two times.