Ohio Admin. Code 5123-4-05 - Ensuring the solvency of a county board of developmental disabilities
(A)
Purpose
This rule establishes standards to ensure a county board of developmental disabilities is able to meet its financial obligations and sets forth processes for measuring financial risk, identifying required actions to be taken, and requesting financial assistance from the department.
(B)
Definitions
For the purposes of this rule, the following definitions apply:
(1)
"County board" means a county board of developmental
disabilities.
(2)
"Department" means the Ohio department of developmental
disabilities.
(3)
"Home and community-based services" has the same
meaning as in section
5123.01 of the Revised
Code.
(4)
"Scorecard risk assessment" means an objective tool
administered by the department that identifies indicators and assigns a score
to a county board's level of financial risk based on information from the
five-year projection of revenues and expenditures submitted by a county board
in accordance with section
5126.053 of the Revised Code.
Administration of the scorecard risk assessment results in assignment of a
county board to one of four designations based on the final score: "healthy,"
"watch," "warning," or "emergency."
(C)
Measuring and
managing financial risk
(1)
Following a county board's submission of the five-year
projection of revenues and expenditures in accordance with section
5126.053 of the Revised Code,
the department will administer the scorecard risk assessment and notify the
county board of the results in writing.
(2)
When, based on
results of the scorecard risk assessment, a county board is assigned a
designation of "warning" or "emergency," the county board will complete and
submit a plan of action to the department within sixty calendar days. The plan
of action will:
(a)
Be completed in the format prescribed by the
department.
(b)
Identify methods the county board will employ to
improve its financial situation and/or eliminate conditions that led to its
financial situation.
(c)
Address actions the county board has considered or
taken, including but not limited to:
(i)
By written request, seeking financial assistance
through the county commissioners, including but not limited to, advancement of
a new levy, levy renewal, or restoration of a levy that has been rolled
back;
(ii)
Reducing costs by restricting expenditures, reducing or
eliminating programs other than home and community-based services, and
consolidating functions or positions with other county boards or a regional
council of governments;
(iii)
Exploring shared funding opportunities with other local
agencies such as school districts, regional transit authorities, or area
agencies on aging;
(iv)
Seeking third-party consultation; and
(v)
Adopting a
resolution to request assistance from the department.
(d)
Be
approved by resolution adopted by the county board.
(3)
The department
may prescribe additional actions when, based on results of the scorecard risk
assessment, a county board is assigned a designation of "warning" or
"emergency," which may include submitting a request to the department for
assistance in accordance with paragraph (D) of this rule.
(D)
Process for requesting assistance from the department
(1)
When, based on
results of the scorecard risk assessment, a county board is assigned a
designation of "warning" or "emergency," or in any other event that may place a
county board in unexpected fiscal strain (e.g., failure of a county board
operating levy), a county board may request assistance from the department to
enable the county board to meet its obligations to pay the nonfederal share of
medicaid expenditures for home and community-based services.
(2)
When requesting
assistance, a county board will submit to the department:
(a)
A description of
the actions described in paragraph (C)(2)(b) of this rule the county board has
taken and the results of those actions;
(b)
A history of
levies placed on the ballot in the most recent ten years;
(c)
A cash flow
analysis for the most recent and upcoming twelve months;
(d)
Most recent
annual financial statements;
(e)
Monthly financial
statements for the most recent twelve months;
(f)
A detailed
explanation of how the fiscal strain is affecting the ability of the county
board to provide services and support positive outcomes for individuals with
developmental disabilities and what actions the county board will take if the
department does not provide assistance; and
(g)
A copy of the
resolution adopted by the county board requesting assistance from the
department.
(E)
Department
response to request for assistance
(1)
The department may seek additional information, data,
or reports regarding:
(a)
Cash flow analysis;
(b)
Source, amount,
and use of revenues of the county board for the most recent ten
years;
(c)
Levy experience and strategy;
(d)
Efficiency and
allocation of staff;
(e)
Involvement of a council of
governments;
(f)
Funding sources for programs operated by the county
board;
(g)
Comparability of salaries and benefits of employees of
the county board to other local agencies and to other similar county
boards;
(h)
The county board's most recent strategic
plan;
(i)
Programs operated or funded by the county board;
and
(j)
Any other information determined by the department to
be relevant.
(2)
The department may further review the operations and
financial situation of the county board by:
(a)
Examining the
financial records of the county board;
(b)
Appointing a
public accounting firm to examine the financial statements and other records of
the county board; and
(c)
Appointing a group of peers from other county boards to
perform an on-site review of the operations of the county
board.
(3)
The department will consult with the office of budget
and management and the Ohio department of medicaid in accordance with rule
5160-41-16 of the Administrative
Code.
(F)
Department decision
(1)
The department
will decide whether or not to provide assistance based on:
(a)
Efficiency of the
county board's administration;
(b)
Use of medicaid
to support services in the county;
(c)
The county
board's plan to resolve its financial situation;
(d)
Reasonableness of
costs of the county board in comparison with other agencies;
and
(e)
Alternatives to assistance such as structural and
operational changes to the county board.
(2)
The department's
decision whether or not to provide assistance will be at its sole
discretion.
(3)
If the department decides that assistance will be made
available to the county board, the department will also decide whether the
assistance will be in the form of paying the nonfederal share of medicaid
expenditures for home and community-based services, reducing the number of
individuals required to be enrolled in a waiver component under section
5126.0512 of the Revised Code,
or both. The department will consider:
(a)
Amount needed to
pay the nonfederal share and impact on other counties;
(b)
Number of
individuals on the waiting list and progression of the list;
(c)
Likelihood of the
county board being able to resume paying the nonfederal share after a year;
and
(d)
Maintenance of home and community-based services waiver
assurances.
(4)
If the department permits a reduction in the number of
individuals required to be enrolled in a waiver component under section
5126.0512 of the Revised Code,
no individual may be disenrolled from a waiver as a result of such
reduction.
(5)
The department will issue its decision in writing which
may include any prerequisites for the county board to receive assistance.
Generally, assistance will be made available for a twelve-month
period.
(G)
Monitoring
(1)
Upon the grant of assistance, or as determined by the
plan of action submitted by a county board assigned a designation of "warning"
or "emergency" based on results of the scorecard risk assessment, the county
board will submit to the department on a quarterly basis, or at an interval
otherwise determined by the department:
(a)
Financial
statements;
(b)
Updated projection of revenues and
expenditures;
(c)
Progress on implementing the county board's plan of
action to resolve the county board's financial situation; and
(d)
Plans and
strategy for an operating levy.
(2)
The department
will monitor the progress of the county board toward eliminating the need for
assistance.
(3)
Within six months of issuing its decision, the
department and county board will confer on the impact of the plan of action on
resolving the county board's financial situation and any adjustments needed in
the plan of action.
Replaces: 5123-4-05
Notes
Promulgated Under: 119.03
Statutory Authority: 5123.04, 5123.0413
Rule Amplifies: 5123.04, 5123.0413, 5126.053, 5126.0512
Prior Effective Dates: 01/02/2002 (Emer.), 03/21/2002, 09/01/2010, 01/01/2016, 01/01/2021
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