CFSS Cost Reporting Tool Instruction Manual

This manual provides instructions to complete the Community First Services and Supports (CFSS) cost report. CFSS agency model provider organizations participate in cost reporting. At this time, CFSS budget model, consultation service model and financial services model provider organizations do not need to participate in cost reporting.

DHS encourages the cost report preparer to read all instructions in this manual before completing the cost report and use the manual as a reference throughout the process. The cost report preparer and authorized agent also should reference:

· Resources tab on DHS – CFSS cost reporting.

· DHS – CFSS cost reporting frequently asked questions.

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’ Disability Waiver Rate System (DWRS) Cost Reporting Tool Instruction Manual provides instructions for provider organizations to complete the DWRS cost report. For more information, refer to DHS – DWRS cost reporting.

Purpose of cost reporting

DHS must compare the wage and component values in the rates determined by CFSS frameworks to provider organizations’ actual costs, as required by Minn. Stat. §256B.851, subd. 8.

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:

· Direct care workers’ wages and the services they provide to make sure the service rates are sufficient.

· The proportion of time staff spends on direct care and non-billable activities to make sure the frameworks accurately account for both types of tasks.

It is important that the information submitted is complete, accurate and valid so DHS can use the data to recommend adjustments to the CFSS components (e.g., wage and benefit levels, facility costs, other costs that factor into CFSS 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 three years, at DHS’ direction. 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 CFSS costs by emailing authorized agents (as defined under Minn. Stat. §256B.851, subd. 8) 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 CFSS 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 report only costs related to CFSS so we can better understand the costs associated directly with providing CFSS services. The cost report preparer should not include UMPI numbers for individual workers in the cost report.

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.

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:

· CFSS-specific revenues.

· Administrative wages and benefits.

· Direct care wages and benefits.

· Client programming and supports.

· General and administrative costs.

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 CFSS rate methodology. This data will allow DHS to consider adjustments to the component values.

Next step

Review the terms and definitions used in this manual in the glossary.