TAG - The Alliance Group, LLC - Newsletter January 1998

January 1998 volume 9712

Topic: Winter Update

We hope you enjoyed the holiday season. As we begin the New Year, we would like to apprise you of a few matters that may be of interest to you.

Hopefully, by this time, those of you operating preschool programs have received approval of your business plans. You should review the date The New York State Education Department ("SED") sent your letter of approval because you must submit a progress report. Agencies that received approval prior to September 1, 1997, must submit their report by January 15, 1997. All other agencies that received approval after September 1, 1997, must submit their progress report six months from the date they received approval. Given our first-hand experience with drafting and implementing business plans, we can assist you with this update and any further documentation requested.

You should also be aware that, as a result of implementing your business plan, you may experience disallowance's due to the application of the nondirect care screen and/or the total cost screen. The October 2, 1997 memorandum from Thomas Hamel, Chief of Program Services Reimbursement Unit, which sets forth the 1997-98 tuition rate-setting methodologies, provides that those schools experiencing cost screen disallowance's may request a waiver within 15 business days of receipt of the reconciliation sheets. We strongly recommend that you apply for the waiver if cost screen disallowance's occur solely from implementing your business plan. We would be happy to assist you with determining whether your program will experience cost screen disallowance's and drafting an adequate waiver request.

Speaking of waivers, we worked with many of you last year on submitting a 1996-97 prospective total cost screen waiver. For those of you operating segregated preschool special class programs at greater than 2.5 hours per day that did not apply for the 1996-97 waiver, we suggest that you request a waiver for 1997-98 as soon as possible as the due date is June 30, 1998. To receive approval, you must demonstrate that your program services individuals with severe disabilities. A narrative also must be submitted along with a class listing of the approved ratio of students to teacher to teacher assistants for the 1996-97 and 1997-98 school years. The waivers are subject to the approval of the State Division of the Budget. Please call us at your earliest convenience so that we can calculate your agency’s interim rates and screens for 1997-98, and your rates and screens for 1996-97 if those calculations have not been completed. Approval of the waiver may result in additional allowable costs to your agency.

In addition to the 1997-98 waiver, there have been initial discussions regarding proposed changes with respect to rate reimbursement, expected to be effective July 1999. These changes would include SED issuing four approved ratios. If your program does not fit these reimbursement ratios, you would be reimbursed based upon the ratio that most closely fits the staffing percentages. There would be regional rates established for each ratio, excluding property. A component of the rate would address therapeutic services. Although this change in methodology has not been approved at this time, we will keep you abreast of current developments. In addition, given the possibility that the regional rate may not cover all of your agency’s costs, please call us to discuss appropriate options to address these potential changes including a strategic plan that meets the needs of your agency so that by the year 2000 all your programs can operate within these proposed rates.

Finally, as most of you know, we have extensive experience preparing the Consolidated Fiscal Report. Please call Gerald N. Tischfeld or Patrick F. Monaghan, III to discuss how we can be of assistance to you.

We wish you a Happy and Healthy New Year and look forward to hearing from you soon.

Very truly yours,

Gerald N. Tischfeld

President

100 JERICHO QUADRANGLE - SUITE 339 - JERICHO, NEW YORK 11753-2702

TELEPHONE: (516) 932-0846 - FACSIMILE: (516) 932-0951