Measuring Improper Authorizations for Payment in the Child Care Program:
Improper Authorization for Payment Data Collection Instructions [Approved August 31, 2007]
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III. State Reporting Cycle
States calculate five error measures, including an estimated annual amount of improper authorizations for payment once every three years on a rotational cycle. As can be seen in Exhibit 2, using a stratified random sample method of selecting States [1], one third of the total of 52 States were selected to participate each year in the error rate measurement methodology.
In year one, approximately one third of the total of 52 States (18 States) calculate error rate measures, including the estimated annual amount of improper CCDF subsidy authorizations. The total of the 18 States’ estimated annual amount of improper authorizations for payment provides the basis to calculate a national error rate and amount in year one.
In year two, an additional 17 States calculate error rate measures, including the estimated amount of improper CCDF subsidy authorizations. The total of the 17 States’ estimated annual amount of improper authorizations for payment combined with the totals from year one provide the basis to calculate the year two national error rate and amount.
In year three, the remaining 17 States calculate error rate measures, including the estimated amount of improper CCDF subsidy authorizations. The total estimated annual amount of improper authorizations for payment from all three years are combined and provide the basis to calculate the year three national error rate and amount.
In year four, the States selected for year one repeat the methodology. The year four results replace the year one results in the national error rate and amount calculation.
Exhibit 2. States Selected By Year of Three Year Reporting Cycle
Cycle Year 1 |
|
| Region | State |
|---|---|
| I | New Hampshire |
| Vermont | |
| II | Puerto Rico |
| III | Pennsylvania |
| West Virginia | |
| IV | Georgia |
| Alabama | |
| V | Illinois |
| Indiana | |
| VI | Texas |
| Oklahoma | |
| VII | Kansas |
| VIII | Colorado |
| North Dakota | |
| IX | California |
| Nevada | |
| X | Washington |
| Alaska | |
Cycle Year 2 |
|
| Region | State |
|---|---|
| I | Massachusetts |
| Rhose Island | |
| II | New York |
| III | Virginia |
| Delaware | |
| IV | Florida |
| Tennessee | |
| Mississippi | |
| V | Ohio |
| Wisconsin | |
| VI | Louisiana |
| Arkansas | |
| VII | Iowa |
| VIII | Utah |
| South Dakota | |
| IX | Arizona |
| X | Oregon |
Cycle Year 3 |
|
| Region | State |
|---|---|
| I | Connecticut |
| Maine | |
| II | New Jersey |
| III | Maryland |
| D.C. | |
| IV | North Carolina |
| Kentucky | |
| IX | South Carolina |
| V | Michigan |
| Minnesota | |
| VI | New Mexico |
| Missouri | |
| VII | Nebraska |
| VIII | Montana |
| Wyoming | |
| IX | Hawaii |
| X | Idaho |
Following completion of a case record review process, data entry, computation of five error measures, and analysis and response to the improper authorizations findings, States prepare and submit a State Improper Authorizations for Payment Report (See Attachment 3), described in Section VIII of these instructions.
To coordinate this effort, States may choose to create an improper payments planning team (Team). Suggestions for the composition and responsibilities of the Team include the following:
- Select a high level management staff member to act as a project coordinator. The project coordinator will oversee the entire process, including determining which office is responsible for obtaining the reviewers, recruiting planning Team members, answering internal questions, arranging Team meetings and consulting with Team members as needed.
- The project coordinator convenes a Team consisting of the team leader of the review team, State Lead Agency administrator, and high and middle level management staff representatives from program and policy, training, and information technology.
- The project coordinator assigns responsibilities for completion of the required State Improper Authorizations for Payment Report, including the error rate findings and narrative discussion.
States identify the composition and responsibilities of their Teams to best reflect agency organization and total number of available staff.
Administration for Children and Families (ACF) will review the State Improper Authorizations for Payment Reports submitted by States; calculate the national error measures; and consolidate the findings, describing the amounts and types of all identified errors adhering to the requirements found in Appendix C to OMB Circular A–123. This information will be reported in HHS’ annual Performance and Accountability Report (PAR).
1The sample of 52 States was stratified by region (10 total), with the regions randomly ordered. States were sorted within regions by caseload, from the most cases to the least cases. Every third State on the list was then selected, using a random start number the first and second years. The third year included those States not selected in year one or year two. Each year this will yield a mix of county-administered and State-administered States and States serving both small and large numbers of children annually. IV. GENERATING A SAMPLE OF CASES FOR REVIEW: >>