DWRS Cost Reporting Tool Instruction Manual
This manual provides instructions for provider organizations to complete the Disability Waiver Rate System (DWRS) cost report. DHS encourages the cost report preparer to read all instructions in this manual before completing the report and use the manual as a reference throughout the process. The cost report preparer and authorized agent also should reference:
Note: A family provider is an organization that only provides family foster care or family supported living services. DHS created this guide so they do not have to navigate the larger manual).
When completing the cost report, the cost report preparer enters information into fillable fields. This manual includes specific guidance for each section of the cost report about required information and fields to complete.
Note: DHS’ Community First Services and Supports (CFSS) Cost Reporting Tool Instruction Manual provides instructions for provider organizations to complete the CFSS cost report. For more information, refer to DHS – CFSS cost reporting.
Purpose of cost reporting
DHS must compare the wage and component values in the DWRS frameworks to provider organizations’ actual costs, as required by Minn. Stat. §256B.4914, subd. 10a.
To ensure DHS pays provider organizations correctly, we must collect and analyze cost data, as well as some non-cost data. For example, we ask provider organizations to report:
It is important that the information submitted is complete, accurate and valid so DHS can use the data to recommend adjustments to the DWRS components (e.g., wage and benefit levels, facility costs, other costs that factor into DWRS rates).
DHS must conduct random audits to validate information submitted in cost reports. Because of this, the cost report preparer should include documentation to support the costs and supplemental information reported.
Timeline
Provider organizations must submit a cost report at least once every five years, at DHS’ direction. To ease the burden on provider organizations as they respond to COVID-19, DHS delayed the scheduled launch of the DWRS cost reporting system until March 2021.
In March 2021, we entered the first year in a five-year reporting cycle. All DWRS provider organizations must report during this five-year cycle. DHS will notify provider organizations in the spring of their reporting year if they are required to report. They will have through the summer to complete their online cost report. If an organization fails to complete a report by the deadline and it is 90 days overdue, DHS must suspend payments until the report is completed.
A cost report must include 12 months of business costs. The last day of the 12-month period cannot be more than 18 months from the submission day. For most organizations, this period would be their most recently completed fiscal year, whether that be from January through December of the previous calendar year or another definition of a fiscal year.
Example: An organization reports in 2024 and uses information from January through December 2023.
Reporting notification
Each year, DHS notifies provider organizations that are required to report their DWRS costs by emailing authorized agents (as defined under Minn. Stat. §245A.02, subd. 5a) on March 31.
Not all provider organizations are required to report in a year. If an authorized agent has not received a reporting notification by March 31, then it is not their organization’s reporting year.
What to include
When completing the cost report, the cost report preparer should include the revenues and costs associated with providing DWRS framework services. These revenues and costs are everything within an organization’s Federal Employer Identification Number (FEIN) or tax ID. This may include multiple National Provider Identifier (NPI)/Unique Minnesota Provider Identifier (UMPI) numbers or service sites, but all costs reported should be under the organization’s one FEIN number. DHS asks provider organizations to only report costs related to DWRS so we can better understand the costs associated directly with providing DWRS services.
Some organizations may only see a single site, or one NPI/UMPI, listed in the system, but the organization should always report costs and revenues from whatever falls under the umbrella of the organization’s FEIN.
Example: The organization sees “Example Name Facility, FEIN #” in the system. However, Example Name Facility is only one NPI under the organization’s FEIN. The organization still needs to report on all costs under the FEIN, not just Example Name Facility’s costs.
Note: Do not report incomes received for non-service revenues, such as Supplemental Security Income (SSI), Housing Support (formerly known as Group Residential Housing), non-DWRS waiver service incomes or costs not allowed under Medical Assistance.
Room and board costs
Do not report any room and board costs on the cost report, including costs for residential service facilities or homes. This includes, but is not limited to:
Home and community-based services (HCBS) waivers cannot pay for room and board, so DWRS payments do not cover these costs. Provider organizations should not count these costs as DWRS costs because other programs (e.g., Housing Support) cover them.
Sections of the cost report workbook
The cost report workbook includes sections to collect the following information:
1. Provider contact information and attestations about the accuracy and completeness of reported information.
2. 11 primary cost and revenue sections, including:
3. Direct care worker policies.
4. Additional notes and disclosures about reported information.
5. A final section that compiles all the information reported, by cost category.
The data collected from each of these sections aligns with the component values that make up the DWRS frameworks, from which the rates are calculated. This data will allow DHS to consider adjustments to the component values.
DWRS compensation thresholds
Beginning Jan. 1, 2029, HCBS provider organizations, except assisted living facilities, must spend a specified percentage of their DWRS revenues on compensation to direct care staff. Providers previously were required to meet certain threshold levels outlined in Minn. Stat. §256B.4914, subd. 10d, but the 2025 Minnesota Legislature postponed implementation until Jan. 1, 2029. For more information, refer to DHS – DWRS compensation thresholds policy.
Next step
Review the terms and definitions used in this manual in the glossary.
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