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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Glossary

Active Case (Case) - A case (child) for which a child care subsidy was authorized for payment during a sample review month. A case is the primary sampling unit for this analysis.

Authorization for Payment (Authorization) - An authorization for payment is the subsidy amount authorized during eligibility determination or redetermination for a sample review month.

Average Amount of Improper Authorization for Payment– The average amount of improper authorization for payment is the average amount of money the State authorized improperly to be paid per child during the review period. This rate is determined by dividing the gross amount (overpayments plus underpayments) of improper authorizations for payment in the sample by the number of cases in the sample that had an improper authorization for payment.

Case Record – The physical record or case file. The case record is usually maintained by and located in the local eligibility office, but also may include information maintained in computer files and fiscal records pertaining to the payment.

Child Care Subsidy Authorization for Payment - Authorization for payment of CCDF grant funds, including Federal Discretionary funds (which includes any funds transferred from the TANF Block Grant), Mandatory and Matching Funds and State Matching and Maintenance-of-Effort (MOE) Funds. For States that do not separate CCDF funds from non-CCDF funds, this includes all pooled child care funds.

County – This is the primary legal division of most States. The term county includes independent municipalities. Most counties are functioning governmental units, whose powers and functions vary from State to State. If a State CCDF program does not currently have any process to collect any data by county or independent municipality, the State may substitute for "county" the smallest jurisdiction within the State for which data is collected, such as early learning coalition or region.

Documentation – Documentation is a written or printed statement or a copy of a document furnishing information. For purposes of this review, documentation may also be information contained on automated systems.

Eligibility Action – Eligibility action is the action that is taken on a case that determines the authorized payment amount. It is the basis for the sample review month’s authorization.

Error – An error is any violation or misapplication of law, regulation, or policy governing the administration of CCDF grant funds, regardless of whether such violation results in an improper authorization for payment. For purposes of this methodology, an error is an administrative error that results when a reviewer determines during a case record review that either a case was authorized to receive an incorrect payment amount or there was some other misapplication of policy or procedures, regardless of whether such misapplication results in an improper authorization for payment.

Estimated Annual Amount of Improper Authorizations for Payment – This measure projects the amount of improper authorizations for payment the State has made on an annual basis for the fiscal year being reviewed. This amount is determined by multiplying the Percentage of Improper Authorizations for Payment by the total dollar amount of child care authorizations for payment that the State made during the twelve month review period.

Improper Authorization for Payment (Improper Authorization) – An improper authorization for payment is an amount authorized for payment during the client eligibility process that should not have been authorized or was authorized in an incorrect amount under applicable law, regulation, or policy.

Overauthorization for Payment (Overauthorization) – An overauthorization for payment is an improper authorization for payment that exceeds the amount that should have been authorized.

Percentage of Cases with an Error (Case Error Rate) – This measure is the percentage of cases with an error, regardless of whether the error ultimately results in an improper payment. This rate is determined by dividing the number of sampled cases with an error by the total number of cases reviewed in the sample and then multiplying by 100.

Percentage of Cases with an Improper Authorization for Payment – This measure is the percentage of cases in the sample with an error that resulted in an improper authorization for payment. The percentage is determined by dividing the number of sampled cases with an error that resulted in an improper authorization for payment by the total number of sample cases for the review period and then multiplying by 100.

Percentage of Improper Authorizations for Payment – This measure is the percentage of improper authorizations for payment for the review period. This rate is determined by dividing the gross amount of improper authorizations for payment in the sample (Overauthorizations plus Underauthorizations) by the total dollar amount of child care authorizations for payment in the sample cases and then multiplying by 100.

Recertification – This is an eligibility action taken to authorize a payment amount for an additional period immediately following the expiring certification period.

Review Month - The review month refers to a specific month for which a sampling of cases is created. For example, January is a sample review month with a sampling frame created from all of the cases in January.

Review Period – The review period is the Federal Fiscal Year prior to July 1 of the designated calendar year in which a State Improper Payments Report must be submitted. For example, for a July 1, 2008 submission date, the review period would be October 1, 2006 through September 30, 2007.

Sampling Frame – The sampling frame is the list of sampling units (total population or universe) authorized to receive a child care payment during the sample month. The sample of cases for each sample review month is drawn from the sampling frame.

Sampling Unit – The sampling unit is a child for whom a child care payment was authorized during the sample review month.

State – The term State includes the 50 States, the District of Columbia, and Puerto Rico.

Underauthorization for Payment (Underauthorization) – An Underauthorization for payment is an improper authorization for payment that is less than the amount that should have been authorized.