Phase II Findings: Error Rate Methodology Pilot
Executive Summary, I. Introduction, II. Methodology, III. Measuring Improper Payments in Nine States, IV. Findings and Next Steps, V. Recommendations, Appendices: Appendix A: Arkansas, Appendix B: Colorado, Appendix C: Illinois, Appendix D: Ohio, Appendix E: Record Review Worksheet, Appendix F: Data Entry Form, Appendix G: Telephone Discussion Guide, Appendix H: Arizona, Appendix I: California, Appendix J: Kansas, Appendix K: Nebraska, Appendix L: New Hampshire
Appendix H: Arizona
Arizona is a centralized, State-administered child care program. Fourteen administration offices take applications, determine eligibility, and provide services for all of the assistance programs. Arizona provides Child Care Resource and Referral through Child and Family Resources, Inc., which provides training, technical assistance, and matches parents seeking child care with resources.
Improper Payments Process
Arizona defines improper payments in revised statute, 46–213B:
If a recipient is overpaid for whatever reason, the recipient is liable for the amount of the overpayment. The Department with the concurrence of the Department of Law shall determine the method of securing repayment which is most appropriate to the particular situation. If there are insufficient assets or resources to justify collection, if the recipient has not obtained assistance or services by intentional misrepresentation, or if the overpayment was due to an error on the part of the Department, the Department may waive a repayment by the recipient. The Department with the assistance of the Department of Law may institute appropriate court proceedings to recover overpayments.
The definition of improper payments in policy reads:
Payment of funds to a provider on behalf of a client who was not eligible for assistance, does not have an eligible activity or need, use more assistance they were eligible for, or payment were made for days/hours, in which they were not in attendance with the child care provider. Overpayments may be client, provider, or agency caused.
Arizona identifies improper payments through a variety of methods, including:
Examples of exception reports include reports that identify providers for billing for the maximum number of units every month or identify clients for whom the income varies more than 20 percent when child care data are compared with unemployment insurance.
Arizona has thresholds for overpayment referrals. Overpayments of $2,000 or less go to the Office of Accounts Receivables and Collections. Overpayments exceeding $2,000 go to the Office of Special Investigations to determine if prosecution is warranted. If warranted, the case goes to the Attorney General for prosecution; if not, the case returns to the Office of Accounts Receivables and Collections for collection.
Automation
The Arizona Child Care Administration Tracking System (AzCCATS) consists of modules for eligibility, family data, provider data, certification, contract monitoring, and payments and authorizations. The system interfaces with Temporary Assistance for Needy Families (TANF) and Food Stamps. The system is a mainframe system that was transferred from Utah in 1988. It is supported internally and has been modified extensively. Providers can access the AzCCATS system to directly input their billing, or they can submit paper billing requests to the Payment Processing Unit.
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