Report 2010-121 All Recommendation Responses
Report 2010-121: Foster Family Home and Small Family Home Insurance Fund: Expanding Its Coverage Will Increase Costs and the Department of Social Services Needs to Improve Its Management of the Insurance Fund (Release Date: September 2011)
Recommendation #1 To: Social Services, Department of
To ensure that the insurance fund makes the most efficient use of the State's limited resources, Social Services should use these claims and expenditure data to determine the annual appropriation amount needed for the insurance fund to meet its anticipated liabilities.
Annual Follow-Up Agency Response From October 2013
Fully Implemented/Completion Date: July 1, 2013. The CDSS has fully implemented the recommendations from the audit completed on the FSH Fund. Procedures have been developed that not only detail roles and responsibilities, but also describe the methodologies for determining fund appropriation and reserve. These methodologies analyze claims and expenditures data to calculate the amount needed for the fund to cover its anticipated liabilities. Initial application of the methodologies occurred during the 2013-14 budget cycle and reduced the FSH General Fund appropriation amount to $600,000 (a reduction of $140,000). In addition, the adjustment to the FSH Fund reserve also returned $2,300,000 to the General Fund for FY 2013-14. These methodologies will again be used to reevaluate the fund's needs during the FY 2014-15 budget cycle and annually thereafter.
- Completion Date: July 2013
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
Annual Follow-Up Agency Response From November 2012
The attached CDSS document outlines procedures and identifies responsibilities for CDSS Administration Division and the Foster Care Audits and Rates Bureau (FCARB) within the Children and Family Services Division. The FCARB will be the Department's liaison to the Department of General Services/Office of Risk and Insurance Management (DGS/ORIM). In that capacity, the FCARB will conduct program and contract management over DGS/ORIM. (See Attachment 1.)
The methodologies for determining both the Foster Family Home and Small Family Home Insurance Fund (FSH) fund annual appropriation and the fund reserve requirements are explained in the CDSS Final Draft Procedures. Future adjustments to the fund's balance and appropriation will be conducted as part of the fall budget process (September 2012- December 2012) in conjunction with the Department of Finance's budget development timelines for release of the proposed FY 2013-14 Governor's Budget on January 10, 2013.
- Estimated Completion Date: May 2013
California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented
Recommendation #2 To: Social Services, Department of
To ensure that the insurance fund makes the most efficient use of the State's limited resources, Social Services should establish a written policy or procedures to guide staff on the appropriate methodology to use when calculating these anticipated liabilities.
Annual Follow-Up Agency Response From October 2013
Fully Implemented/Completion Date: July 1, 2013. The CDSS has fully implemented the recommendations from the audit completed on the FSH Fund. Procedures have been developed that not only detail roles and responsibilities, but also describe the methodologies for determining fund appropriation and reserve. These methodologies analyze claims and expenditures data to calculate the amount needed for the fund to cover its anticipated liabilities. Initial application of the methodologies occurred during the 2013-14 budget cycle and reduced the FSH General Fund appropriation amount to $600,000 (a reduction of $140,000). In addition, the adjustment to the FSH Fund reserve also returned $2,300,000 to the General Fund for FY 2013-14. These methodologies will again be used to reevaluate the fund's needs during the FY 2014-15 budget cycle and annually thereafter.
- Completion Date: July 2013
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
Annual Follow-Up Agency Response From November 2012
The attached CDSS document outlines procedures and identifies responsibilities for CDSS Administration Division and the Foster Care Audits and Rates Bureau (FCARB) within the Children and Family Services Division. The FCARB will be the Department's liaison to the Department of General Services/Office of Risk and Insurance Management (DGS/ORIM). In that capacity, the FCARB will conduct program and contract management over DGS/ORIM. (See Attachment 1.)
The methodologies for determining both the Foster Family Home and Small Family Home Insurance Fund (FSH) fund annual appropriation and the fund reserve requirements are explained in the CDSS Final Draft Procedures. Future adjustments to the fund's balance and appropriation will be conducted as part of the fall budget process (September 2012- December 2012) in conjunction with the Department of Finance's budget development timelines for release of the proposed FY 2013-14 Governor's Budget on January 10, 2013.
- Estimated Completion Date: May 2013
California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented
Recommendation #3 To: Social Services, Department of
To ensure that the insurance fund makes the most efficient use of the State's limited resources, Social Services should establish an adequate reserve amount for the insurance fund and reevaluate it annually.
Annual Follow-Up Agency Response From October 2013
Fully Implemented/Completion Date: July 1, 2013. The CDSS has fully implemented the recommendations from the audit completed on the FSH Fund. Procedures have been developed that not only detail roles and responsibilities, but also describe the methodologies for determining fund appropriation and reserve. These methodologies analyze claims and expenditures data to calculate the amount needed for the fund to cover its anticipated liabilities. Initial application of the methodologies occurred during the 2013-14 budget cycle and reduced the FSH General Fund appropriation amount to $600,000 (a reduction of $140,000). In addition, the adjustment to the FSH Fund reserve also returned $2,300,000 to the General Fund for FY 2013-14. These methodologies will again be used to reevaluate the fund's needs during the FY 2014-15 budget cycle and annually thereafter.
- Completion Date: July 2013
California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented
Annual Follow-Up Agency Response From November 2012
The attached CDSS document outlines procedures and identifies responsibilities for CDSS Administration Division and the Foster Care Audits and Rates Bureau (FCARB) within the Children and Family Services Division. The FCARB will be the Department's liaison to the Department of General Services/Office of Risk and Insurance Management (DGS/ORIM). In that capacity, the FCARB will conduct program and contract management over DGS/ORIM. (See Attachment 1.)
The methodologies for determining both the Foster Family Home and Small Family Home Insurance Fund (FSH) fund annual appropriation and the fund reserve requirements are explained in the CDSS Final Draft Procedures. Future adjustments to the fund's balance and appropriation will be conducted as part of the fall budget process (September 2012- December 2012) in conjunction with the Department of Finance's budget development timelines for release of the proposed FY 2013-14 Governor's Budget on January 10, 2013.
- Estimated Completion Date: May 2013
California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented
Recommendation #4 To: Social Services, Department of
To mitigate foster parents’ concerns about liability and to increase the likelihood that they will continue to serve as foster parents, Social Services should develop more effective methods to inform and remind licensed homes about the availability of the insurance fund.
60-Day Agency Response
Social Services issued a memo on September 28, 2011, instructing its Community Care Licensing Division (licensing division) program analysts to provide foster parents with General Services’ insurance fund handout during the pre-licensing visit. In addition, Social Services posted the insurance fund information on the licensing division’s Web site on October 20, 2011. Finally, Social Services included the insurance fund information in the licensing division’s fall 2011 Children’s Residential Quarterly Update Newsletter. (See 2012-406, pp. 107-108)
- Response Date: December 2011
California State Auditor's Assessment of 60-Day Status: Fully Implemented
Recommendation #5 To: Social Services, Department of
To comply with state law and improve the timeliness of claims processing, Social Services should ensure that General Services approves or rejects all claims within the mandated 180-day deadline.
1-Year Agency Response
Social Services stated that General Services has implemented a system to be in compliance with the mandated 180-day deadline, by either accepting or rejecting a claim within 180 days. In addition, Social Services implemented a process to track claims pending at General Services to ensure they are processed in 180 days. (See 2013-406, p. 112)
- Response Date: October 2012
California State Auditor's Assessment of 1-Year Status: Fully Implemented
Recommendation #6 To: Social Services, Department of
To comply with state law and improve the timeliness of claims processing, Social Services should require General Services to ensure that claimants receive prompt notification of its decision to approve or reject their claims.
1-Year Agency Response
Social Services stated that General Services has implemented a system to be in compliance with the mandated 180-day deadline, by either accepting or rejecting a claim within 180 days. In addition, Social Services implemented a process to track claims pending at General Services to ensure they are processed in 180 days. (See 2013-406, p. 112)
- Response Date: October 2012
California State Auditor's Assessment of 1-Year Status: Fully Implemented
Recommendation #7 To: Social Services, Department of
To ensure that the insurance fund makes the most efficient use of the State’s limited resources, Social Services should ensure that General Services provides it with all the claims information specified in the interagency agreement.
1-Year Agency Response
Social Services worked with General Services to revise its quarterly reports to include all of the claims information specified in the interagency agreement. (See 2013-406, p. 113)
- Response Date: October 2012
California State Auditor's Assessment of 1-Year Status: Fully Implemented
All Recommendations in 2010-121
Agency responses received after June 2013 are posted verbatim.