Payments will be in accordance with Administrative Directive 01.07.01.070 Grant Payments, 2 CFR 200.302, 2 CFR 200.305, 31 CFR 205 (procedures implementing Cash Management Improvement Act and the Treasury-State Agreement (TSA)), and 44 Ill. Admin. Code 7000.120 (GOMB Adoption of Supplemental Rules for Grant Payment Methods). Three different award payment methods exist, namely Advance Payment, Reimbursement, and Working Capital Advance.
1. Advance Payment Method (Advance and Reconcile)
- An initial payment will be processed in an amount equal to the first two months' cash requirements as reflected in the Advance Payment Requirements Forecast (Cash Budget) Form submitted with the Grantee's application. The initial payment will be processed upon execution of the grantee's Uniform Grant Agreement.
- Grantees must submit monthly invoices in the format and method prescribed in the Grantee's executed Uniform Grant Agreement. The first invoice is due within 15 days after the first month of the Award's term. Invoices must include only allowable incurred costs that have been paid by the Grantee. For programs that have Grantee matching requirements, allowable costs are only reimbursable when matching costs have also been incurred.
- Subsequent monthly payments will be based on each monthly invoice submitted by Grantee to Grantor, and will be adjusted up or down, based on a comparison of actual cumulative expenditures to cumulative advance payments, to date.
- Grantees that do not expend all advance payment amounts by the end of the Award term or that are unable to demonstrate that all incurred costs were necessary, reasonable, allowable, or allocable as approved in their respective budget, must return the funds within 45 days.
- Grantees may be required to submit supporting documentation for their requests at the request of and in a manner prescribed by the Grantor.
- Failure to abide by advance payment governance requirements may result in grantee losing their right to advance payments.
2. Reimbursement Method
- IDHS will disburse payments to Grantee based on actual allowable costs incurred as reported in the monthly financial invoice submitted for the respective month, as described below.
- Grantees must submit monthly invoices in a format prescribed by Grantor. Invoices must include all allowable incurred costs for the first and each subsequent month of operations until the end of the Award term. Invoices must be submitted on or before the 15th calendar day following the end of each monthly invoice period. As practicable, Grantor shall process payment within 30 calendar days after receipt of the invoice, unless the State awarding agency reasonably believes the request to be improper.
- Grantees may be required to submit supporting documentation for their requests at the request of and in a manner prescribed by the Grantor.
3. Working Capital Advance Method
- IDHS Grant Program Managers will advance working capital payments to the grantee to cover their estimated disbursement needs for an initial period not to exceed two months of grant expenses. Startup costs may be approved if determined by IDHS Grant Program Managers to be allowable.
- Grantees must submit monthly invoices for each of the one or two months covered by the Working Capital Advance in the format and method prescribed by the Grantor. The first invoice is due 15 calendar days after the first month of the Award term. Invoices must include only allowable incurred costs that have been paid by the grantee. For grant programs that have grantee matching requirements, allowable costs are only reimbursable when matching costs have also been incurred.
- Grantees may be required to submit supporting documentation for their requests at the request of and in a manner prescribed by the Grantor.
- Working Capital Advance Payments are limited to a single occurrence per grant term.
- Following the initial working capital advance payment, grantees will be paid via advance or reimbursement method as appropriate.
All invoices shall be HIPPA compliant
a. Rate-based services (PAY for PERFORMANCE) will be paid as follows:
Milestone 1 Outcome Payment.
The Department shall pay the Provider $3,000 for each person diverted (see definition A2f above). The date of hospital discharge or diversion start date is equal to day one (1). Reconciled once in the attainment month.
Milestone 2 Outcome Payment.
The Department shall pay the Provider $3,000 for each person who remains in community placement at day 90 who is also engaged in treatment services from the diversion start date with no intervening behavioral health (psychiatric) inpatient admissions nor any admission to any type of long-term care facility. Reconciled once in the attainment month.
Milestone 3 Outcome Payment.
The Department shall pay the Provider $1500 for each person diverted (see definition A2f above) and who was placed into a Permanent Supportive Housing (PSH) unit, defined as a leased unit in the person's name. Reconciled once in the attainment month.
Milestone 4 Outcome Payment.
The Department shall pay the Provider $1,000 for each person diverted in excess of their negotiated diversion target number. Determined and Reconciled ANNUALLY on attainment.
NOTE: The date of hospital discharge or diversion start date is equal to day one (1).
b. Expense based services will be paid as described in Exhibit A Scope of Services, #A3, #A4, and #A5, above. Submission of monthly invoices are required.
Supplemental documentation to support Milestone and Expense based services will be required to submit each month along with generic invoice.
Penalties
If at any time during the grant agreement period the Department determines that the Provider has/is failing to provide the deliverables identified in the grant agreement, the Department reserves the right in its sole discretion to institute the following actions:
(1) The Department reserves the right in its sole discretion to provide notice of grant performance deficiencies and to work with the Provider to identify the reasons for the underperformance and provide direction on remedying the deficiencies within a reasonable time, with demonstrable progress and improvement within sixty (60) days of said notice.
(2) If the Provider fails to demonstrate improvement within 60 days of the notice of deficiencies, the Department reserves the right in its sole discretion to require a written Corrective Action Plan. The Corrective Action Plan must identify with specificity the actions and outcomes necessary to bring the Provider into compliance with the grant agreement deliverables and be approved by the Department. The Provider will have a maximum of sixty (60) days from the date of the approval of the Corrective Action Plan to achieve compliance with the grant agreement deliverables and remain in good standing with the Department.
(3) In the event the Provider fails to perform the actions and meet the outcomes contained in the Corrective Action Plan, the Department reserves the right in its sole discretion to adjust the budget of the Provider. This action includes, but is not limited to, reassigning one or more of the hospitals or SMHRFs currently served by the Provider to another Front Door Diversion Provider. Reassignment of hospitals or SMHRFs (i.e. partial termination of the agreement) may be done at any time either as part of or after a Correction Action Plan is agreed upon, in the event circumstances warrant such action to ensure targets, performance measures, and performance standards are met. Any such reassignments will include agreement and budget amendments to reflect the same, that will be proportional to the reduced anticipated diversions as a result of the reassignment.
(4) If the Provider continues to underperform, in addition to all other termination rights identified in the grant agreement, the Department reserves the right to immediately terminate the grant agreement without penalty to the Department. This does not preclude the Department from terminating all or part of a grant for any other reason, as provided for in the grant agreements. In the event a grant agreement is terminated either in whole or in part, the Provider shall work cooperatively with the Department to transition records and data relevant to the Front Door Diversion Program grant services. This includes, but is not limited to case records, medical information, and service data for all individuals supported and served by the grant agreement.
Additional Advance Payments
Additional working capital advance payments may be considered on a case-by-case basis. Such requests must be made in writing, may require supporting documentation and must be approved by IDHS Executive Staff.
Grantees that do not select either the Advance Payment Method or the Working Capital Advance Method will automatically default to the Reimbursement Method. Grantees selecting the Advance Payment Method, or the Working Capital Advance Payment Method must complete the Advance Payment Request Cash Budget Template as described in the procedures above.
Payment Forms
