Effective Date: 12/01/03

Reference: None; Cross Reference: 03.01.01-Contents of Case Records


Policy Statement:

A child care provider who participates in the Illinois Department of Human Services Child Care Program is subject to and must cooperate with a monitoring review of their records to insure that the services billed to the Department are adequately documented.

Procedure:

  1. General Requirements

    A child care provider who contracts with the State of Illinois to provide direct service care for a client who is enrolled in the Illinois Department of Human Services Child Care Program must keep adequate records to fully document the extent of services provided. This includes a record of attendance which clearly delineates the dates and times the child was present. The minimum requirements for documents that comprise a client’s case record can be found in 03.01.01-Contents of Case Records. A licensed day care center, licensed home, or group home provider is required to maintain records which fully document the extent of services provided for a minimum of 5 years from the date of payment. In addition, Site Administered Contracted providers agree to make all case records and supporting documentation relevant to the services billed to the State of Illinois available to any and all authorized Department representatives and Federal authorities. Failure to maintain adequate records shall establish a presumption in favor of the State for any funds paid by the State for which adequate documentation is not available to support disbursement.

    Child Care Resource and Referral Agencies are subject to the same documentation requirements as stated above with the exception of attendance records.

    All contractors are required to keep adequate financial records to document program income and expenditures as it contributes to the delivery of services to State Subsidized Child Care program clients.

    Non-contracted child care providers are required to keep adequate attendance records which clearly delineate the dates and times each child billed to the Department was present.
  2. Monitoring Review

    The IDHS staff person assigned to perform the monitoring review must:
    1. Contact the child care provider or CCR&R by telephone to inform them of the Department’s intent to perform a monitoring review. During this initial contact, a mutually agreeable date is set for the monitoring review.
    2. Send the child care provider or CCR&R a letter to confirm the date and time.

      The confirmation letter must include:
      1. A list of client case records that will be reviewed, and
      2. A list of other items that must be reviewed such as the DCFS license; a copy of the forms used in a typical client folder; fiscal records, including a bank statement; cash receipts and disbursements journals; and chart of accounts. Other additional items include the Drug Free Workplace Certification and a copy of the attendance records.
  3. The length of the review will vary from several days to several weeks depending upon the number of records reviewed and the complexity of the records. Normally, one staff member performs a review. However, if multiple locations are involved or a substantial number of records are reviewed, additional staff may be assigned.

    A monitoring review consists of:
    • an entrance conference,
    • a case record review,
    • a fiscal review, and
    • an exit conference.
    The entrance conference consists of routine questions regarding the operation of the center(s), capacity, licensing restrictions, staff, hours of operation and number of children served.

    The case record review consists of a thorough examination of a preselected number of client case records to ensure program eligibility and contract compliance. Monitoring staff must examine each file for the minimum case record requirements as required in 03.01.01 ensuring all forms are properly completed, signed, and dated as appropriate; and the required eligibility documentation has been received. Additional factors such as processing time frames, calculations, and eligibility determination are checked for accuracy. Attendance records consisting of the sign in/sign out sheets and daily attendance log are compared to the Child Care Certificate or SAMER to insure that children are only billed for the days eligible and in attendance. The basis for the number of records reviewed is determined by selecting a statistically significant sample from the total number of clients for which the provider is approved for the Child Care Program.

    The fiscal record review traces program income to the cash account and expenditures to source documentation. In addition, employee payroll records are reviewed for accuracy and bank statements are checked for reconciliation.

    Finally, an exit conference is held where, time permitting, preliminary results of any findings may be discussed. After completion of the monitoring review, if there are findings requiring a response, a draft report is created and sent to the provider. Providers must respond to the findings within 30 days of receipt of the draft report. Reviews completed requiring no response are finalized with a copy sent to the provider. A finalized report requires no action on the part of the provider and is prepared for the provider’s information only.