Financial statement audit, Department of Economic Security, Division of Developmental Disabilities ALTCS Contract

              STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Report on Audit of Financial Statements
June 30, 2001
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Report on Audit of Financial Statements
June 30, 2001
Table of Contents Page
Independent Auditors' Report 1
Balance Sheet—Special Revenue Fund 2
Statement of Revenues, Expenditures, and Changes
in Fund Balance—Special Revenue Fund 3
Notes to Financial Statements 4
Supplementary Schedules
Medical Claims Payable (RBUCs and IBNRs) 11
Analysis of Profitability by Major Rate Code Classification 12
Utilization Data Report 14
Related Party Transactions 15
Lag Report for Institutional Care Payments 16
Lag Report for Home- and Community-Based Services Payments 17
Listing of Plan Officers and Directors 18
2910 NORTH 44 th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553 -0333 • FAX (602) 553 -0051
DEBRA K. DAVENPORT, CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL WILLIAM THOMSON
DEPUTY AUDITOR GENERAL
Independent Auditors' Report
Members of the Arizona State Legislature
John L. Clayton, Director
Department of Economic Security
We have audited the accompanying financial statements of the State of Arizona, Department of
Economic Security, Division of Developmental Disabilities, ALTCS Contract as of and for the year
ended June 30, 2001, as listed in the table of contents. These financial statements are the
responsibility of the Department and its Division of Developmental Disabilities' management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with U.S. generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
As discussed in Note 1, the financial statements of the Department of Economic Security, Division
of Developmental Disabilities, ALTCS Contract are intended to present the financial position and
results of operations of only that portion of the General Fund of the State of Arizona that is
attributable to the transactions of the Department of Economic Security, Division of Developmental
Disabilities, ALTCS Contract.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Department of Economic Security, Division of Developmental Disabilities,
ALTCS Contract as of June 30, 2001, and the results of its operations for the year then ended in
conformity with U.S. generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial statements of the
Department of Economic Security, Division of Developmental Disabilities, ALTCS Contract taken
as a whole. The accompanying financial information listed as supplementary schedules in the
table of contents is presented for purposes of additional analysis and is not a required part of the
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the financial statements and, in our opinion, is fairly presented, in all material respects,
in relation to the financial statements taken as a whole.
Debbie Davenport
Auditor General
September 27, 2001
2
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Balance Sheet—Special Revenue Fund
June 30, 2001
Assets
Cash and investments held by the State Treasurer $55,861,039
Due from other state funds 1,433,375
Total assets $57,294,414
Liabilities and Fund Equity
Liabilities:
Accrued administrative and payroll costs $ 2,012,766
Accrued medical and health care claims 31,945,342
Due to other funds 3,942,234
Total liabilities 37,900,342
Fund equity:
Fund balance 19,394,072
Total liabilities and fund equity $57,294,414
See accompanying notes to financial statements.
3
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Statement of Revenues, Expenditures, and Changes in
Fund Balance—Special Revenue Fund
Year Ended June 30, 2001
Revenues:
Capitation $356,891,686
Ventilator dependent 6,241,024
Fee for service 91,379
Reinsurance 1,134,672
Interest 2,849,702
Total revenues 367,208,463
Expenditures:
Aid to individuals 290,967,843
Allocated administrative expenditures
Case management
24,646,494
16,294,391
Professional and outside services 3,074,073
Total expenditures 334,982,801
Excess of revenues over expenditures 32,225,662
Other financial uses:
Transfers to other State funds (10,478,153)
Excess of revenues over expenditures and other financial uses 21,747,509
Fund deficit, July 1, 2000 (2,353,437)
Fund balance, June 30, 2001 $ 19,394,072
See accompanying notes to financial statements.
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Notes to Financial Statements
June 30, 2001
4
Note 1 - Summary of Significant Accounting Policies
The accounting policies of the Department of Economic Security, Division of
Developmental Disabilities, ALTCS Contract conform to U.S. generally accepted
accounting principles applicable to governmental units adopted by the
Governmental Accounting Standards Board. A summary of the Division's more
significant accounting policies follows.
A. Reporting Entity
For financial reporting purposes, the Department of Economic Security, Division of
Developmental Disabilities includes those portions of the State of Arizona’s General
Fund that are controlled by the Department of Economic Security. Further, the
Division's ALTCS Contract includes those portions of the Department of Economic
Security’s General Fund that are controlled by the Division of Developmental
Disabilities. Control by the Division of Developmental Disabilities was determined
on the basis of accountability. Fiscal responsibility for the Division remains with the
Department of Economic Security and, ultimately, with the State of Arizona. The
Division of Developmental Disabilities is a contractor with the Arizona Health Care
Cost Containment System (AHCCCS) to provide health care services to eligible
enrollees of the AHCCCS Arizona Long-Term Care System (ALTCS) program for
the developmentally disabled. This program provides inpatient and outpatient
medical and nursing services in addition to managed institutional and home- and
community-based long-term care services to eligible enrollees of the AHCCCS
ALTCS program. The Division receives monthly premiums from the AHCCCS for all
eligible enrollees under the AHCCCS ALTCS program for the developmentally
disabled.
B. Fund Accounting
The Division's accounts are maintained in accordance with the principles of fund
accounting to ensure that limitations and restrictions on the Division's available
resources are observed. The principles of fund accounting require that resources
be classified for accounting and reporting purposes into funds in accordance with
the activities or objectives specified for those resources. Each fund is considered a
separate accounting entity, and its operations are accounted for in a separate set of
self-balancing accounts that comprise its assets, liabilities, fund equity, revenues,
and expenditures.
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Notes to Financial Statements
June 30, 2001
5
The ALTCS Contract’s financial transactions are recorded and reported using the
flow of current financial resources measurement focus as a special revenue fund
since the proceeds are from specific revenue sources that are legally restricted to
expenditures for specified purposes.
Although the ALTCS Contract is considered a special revenue fund when reported
on individually, it becomes a part of the Department of Economic Security's General
Fund at the combined department level and a part of the State of Arizona's General
Fund at the combined statewide level.
C. Basis of Accounting
The financial statements of the ALTCS Contract are presented on the modified
accrual basis of accounting. Revenues are recognized when they become
measurable and available to finance current-period expenditures. Expenditures are
recognized when the related fund liability is incurred.
All ALTCS Contract revenues were susceptible to accrual.
D. Budgetary Accounting
Revenues and expenditures are not formally budgeted at the ALTCS Contract level.
Consequently, a Statement of Revenues, Expenditures, and Changes in Fund
Balance—Budget and Actual cannot be presented.
Note 2 - Cash and Investments Held by the State Treasurer
Cash and investments held by the State Treasurer represent the ALTCS Contract’s
portion of monies deposited with the State Treasurer. The Treasurer invests idle
monies, on a pool basis, and distributes interest to the participating funds or
programs. The ALTCS Contract’s portion is not identified with specific investments
and is not subject to custodial credit risk. Accordingly, the ALTCS Contract’s portion
of these deposits and investments is reported at fair value.
Note 3 - Due from Other State Funds
Amounts due from other state funds at June 30, 2001, include $183,375 of interest
earned and $1,250,000 of capitation receivables due from the AHCCCS.
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Notes to Financial Statements
June 30, 2001
6
Note 4 - Accrued Medical and Health Care Claims
Accrued medical and health care claims totaling $31,945,342 include reported but
unpaid claims (RBUC) of $19,217,243 and estimated incurred but not reported
(IBNR) medical claims of $12,728,099.
Note 5 - Change in Funding Structure
Beginning in fiscal year 2000-2001, the ALTCS Contract no longer directly receives
legislative appropriations to fund the State’s matching requirements under the
ALTCS program. Instead, DES transmits that long term care fund portion of
legislative appropriations to AHCCCS. AHCCCS then funds the ALTCS Contract’s
activities entirely through matched (Title XIX and legislative appropriations)
capitation, ventilator dependent, reinsurance, and fee for services payments. The
ALTCS Contract reports the payments as revenues from those sources.
Note 6 - Acute Care Reinsurance
During the year ended June 30, 2001, the Division received reimbursement from the
AHCCCS for acute care reinsurance expenditures incurred for enrollees for claims
incurred in prior fiscal years. These revenues are recorded as fee for service and
reinsurance revenues.
The Division subcontracts with various health plans to provide acute care services
to ALTCS enrollees. These health plans must submit clean reinsurance claims to
the Division within 12 months from the date of service.
The Division disbursed a total of $2,950,804 to the health plans during the year
ended June 30, 2001, and had RBUCs of $598,573 and IBNR claims of $1,173,878
for total acute care reinsurance expenditures of $4,723,255, which has been
included in aid to individuals expenditures.
Note 7 - Aid to Individuals Expenditures
Aid to individuals expenditures consists of the following expenditures summarized
by type of service setting or service provided, as applicable.
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Notes to Financial Statements
June 30, 2001
7
Institutional care:
Skilled nursing $ 2,334,853
Intermediate (mentally retarded) 11,676,918
Institutional care RBUC 747,132
Institutional care IBNR 370,383
Total institutional care 15,129,286
Home- and community-based services (HCBS):
State-operated group home 4,342,712
Vendor-operated group home 96,690,926
Adult developmental home 7,745,014
Home-based services 83,172,709
HCBS RBUC 17,319,119
HCBS IBNR 8,224,644
Total HCBS 217,495,124
Acute care:
Acute care 43,748,315
Acute care RBUC 372,950
Acute care IBNR 1,115,489
Reinsurance 2,950,804
Reinsurance RBUC 598,573
Reinsurance IBNR 1,173,878
Total acute care 49,960,009
Other:
Mental health 70,565
Ventilator dependent (including nonacute and acute care) 6,289,685
Other RBUC (ventilator dependent acute care) 179,469
Other IBNR (ventilator dependent including nonacute and acute care) 1,843,705
Total other 8,383,424
Total aid to individuals expenditures $290,967,843
Note 8 - Allocated Administrative Expenditures
During the year ended June 30, 2001, the Division of Developmental Disabilities,
ALTCS Contract recorded allocated administrative charges of $24,646,494 as
expenditures for its share of services provided by the Department.
Note 9 - Transfers to Other State Funds
Transfers out during the year ended June 30, 2001, included $3,702,808 to the
AHCCCS; $1,800,000 to the DES; $4,300,000 to the Long-Term Care program; and
$675,345 to the Social Services Block Grant.
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Notes to Financial Statements
June 30, 2001
8
Note 10 - Commitments and Contingencies
The State of Arizona has the ultimate fiscal responsibility for the ALTCS Contract.
Accordingly, any claims requiring additional resources require the Arizona State
Legislature’s approval. While there is a possibility that claims could be asserted that
would require additional resources to become available to the ALTCS Contract, in
management’s opinion, the possibility that valid claims will be asserted and their
amounts cannot reasonably be estimated.
Note 11 - Risk Management
The Division is exposed to various risks of loss related to torts; theft of, damage to,
and destruction of assets; errors and omissions; injuries to employees; medical
malpractice; and natural disasters. The Department is a participant in the State’s
self-insurance program, and in the opinion of the Division’s management, any
unfavorable outcomes from these risks would be covered by that self-insurance
program. Accordingly, the Department has no risk of loss beyond adjustments to
future years’ premium payments to the State’s self-insurance program. All
estimated losses for unsettled claims and actions of the State are determined on an
actuarial basis and are included in the State of Arizona Comprehensive Annual
Financial Report.
Note 12 - Related Party Transactions
The ALTCS Contract reimbursed the Division of Developmental Disabilities for
services provided to enrollees, as applicable. See the accompanying
supplementary schedule, Related Party Transactions, for details.
Note 13 - Retirement Plan
Plan Description—The Division contributes to a cost-sharing multiple -employer
defined benefit pension plan administered by the Arizona State Retirement System.
Benefits are established by state statute and generally provide retirement, death,
long-term disability, survivor, and health insurance premium benefits. The System
is governed by the Arizona State Retirement System Board according to the
provisions of Arizona Revised Statutes Title 38, Chapter 5, Article 2.
The System issues a comprehensive annual financial report that includes its
financial statements and required supplementary information. The most recent
report may be obtained by writing the System, 3300 North Central Avenue, PO Box
33910, Phoenix, AZ 85067-3910, or by calling (602) 240-2000 or (800) 621-3778.
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Notes to Financial Statements
June 30, 2001
9
Funding Policy—The Arizona State Legislature establishes and may amend active
plan members’ and the Division’s contribution rate. For the year ended June 30,
2001, active plan members and the Division were each required by statute to
contribute at the actuarially determined rate of 2.66 percent (2.17 percent retirement
and 0.49 percent long-term disability) of the members’ annual covered payroll. The
Division’s contributions to the System for the years ended June 30, 2001, 2000, and
1999, were $843,337, $771,613, and $941,448, respectively, which were equal to
the required contributions for the year.
Note 14 - Subsequent Event
Supplemental Appropriations—During fiscal year 1997-1998, the Arizona State
Legislature provided $4,474,800 in supplemental appropriations to the Department
of Economic Security. The Division used these monies to ensure that the State of
Arizona contributed the proper amount of matching monies to the Arizona Health
Care Cost Containment System (AHCCCS) for fiscal year 1996-1997. After the
payment is approved by AHCCCS, the Division must revert all unused monies to
the State’s General Fund.
As of September 27, 2001, $2,374,800 of the supplemental appropriations remains
unused and is subject to reversion. It is the opinion of the Department’s
management that the AHCCCS will approve the reversion of these unused monies
within the next 90 days.
Accounting System—In October 2001, the Division will implement its new acute
care accounting system. The system was developed to increase accountability and
to enhance Division and provider efficiency. During the year ended June 30, 2001,
total administrative expenses include $824,500 for the new accounting system.
Supplementary Schedules
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Medical Claims Payable (RBUCs and IBNRs)
June 30, 2001
Reported But Unpaid Claims (RBUCs)
Account
1-30
days
31-60
days
61-90
days
Over 90
days Total RBUCs (1) IBNR (1)
Total RBUCs
and IBNRs
Institutional care $ 747,132 $ 747,132 $ 370,383 $ 1,117,515
HCBS 17,319,119 17,319,119 8,224,644 25,543,763
Acute care 971,523 971,523 2,289,367 3,260,890
Other medical (2) 179,469 179,469 1,843,705 2,023,174
Total claims payable $19,217,243 $19,217,243 $12,728,099 $31,945,342
(1) The RBUCs amount represents claims paid by the Division during their encumbrance period (i.e., fiscal year 2000-01 claims paid during
July 2001). The remaining estimated medical claims payable are considered incurred but not reported (IBNR) claims.
(2) Other medical represents ventilator dependent payables.
11
12
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Analysis of Profitability by Major Rate Code Classification
Year Ended June 30, 2001
Revenues/Expenditures Medicare Non-Medicare Total
Enrollees 2,251 10,116 12,367
Revenues:
Capitation $86,428,460 $270,463,226 $356,891,686
Ventilator dependent 1,511,389 4,729,635 6,241,024
Fee for service 22,129 69,250 91,379
Reinsurance 274,784 859,888 1,134,672
Interest 690,112 2,159,590 2,849,702
Total revenues 88,926,874 278,281,589 367,208,463
Expenditures:
Institutional care expenditures:
Skilled nursing 1,667,832 667,021 2,334,853
Intermediate (mentally
retarded) 5,746,211 5,930,707 11,676,918
Institutional care RBUC 408,211 338,921 747,132
Institutional care IBNR 202,366 168,017 370,383
Total institutional care 8,024,620 7,104,666 15,129,286
Home- and community-based
services (HCBS) expenditures:
Home health nurse 1,364,547 4,500,687 5,865,234
Home health aide 20,509 67,647 88,156
Homemaker 20,418 67,346 87,764
Respite care 3,036,255 10,014,485 13,050,740
Attendant care 3,317,181 10,941,064 14,258,245
Environmental modifications 218,119 719,423 937,542
Other 36,680,455 120,983,225 157,663,680
HCBS RBUC 4,029,293 13,289,826 17,319,119
HCBS IBNR 1,913,463 6,311,181 8,224,644
Total HCBS 50,600,240 166,894,884 217,495,124
(Continued)
13
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Analysis of Profitability by Major Rate Code Classification
Year Ended June 30, 2001
(Continued)
Revenues/Expenditures Medicare Non-Medicare Total
Acute care expenditures:
Acute care $10,594,529 $ 33,153,786 $ 43,748,315
Acute care RBUC 90,317 282,633 372,950
Acute care IBNR 270,138 845,351 1,115,489
Reinsurance 714,596 2,236,208 2,950,804
Reinsurance RBUC 144,956 453,617 598,573
Reinsurance IBNR 284,278 889,600 1,173,878
Total acute care 12,098,814 37,861,195 49,960,009
Other medical expenditures:
Mental health 17,089 53,476 70,565
Ventilator dependent
(including nonacute and
acute care) 1,523,173 4,766,512 6,289,685
Other RBUC (ventilator
dependent acute care) 43,462 136,007 179,469
Other IBNR (ventilator
dependent including
nonacute and acute care) 446,490 1,397,215 1,843,705
Total other medical 2,030,214 6,353,210 8,383,424
Total medical 72,753,888 218,213,955 290,967,843
Administrative expenditures:
Allocated administrative
expenditures 5,968,641 18,677,853 24,646,494
Case management 3,946,013 12,348,378 16,294,391
Professional and outside
services 744,448 2,329,625 3,074,073
Total administrative 10,659,102 33,355,856 44,014,958
Total expenditures 83,412,990 251,569,811 334,982,801
Gain from operations $ 5,513,884 $ 26,711,778 $ 32,225,662
14
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Utilization Data Report
Year Ended June 30, 2001
Medicare Non-Medicare Total
Current YTD Current YTD Current YTD
A. Enrollees 2,251 10,116 12,367
B. Member Months 3,226 20,239 20,755 63,321 23,981 83,560
Class 2 and 3 108 444 99 177 207 621
Intermediate care facility—
mentally retarded 171 946 322 976 493 1,922
Home- and community-based services
Group home 1,824 9,685 4,113 11,819 5,937 21,504
Adult developmental day 318 1,483 511 1,466 829 2,949
Home-based services 805 7,681 15,710 48,883 16,515 56,564
C. Institutional care
1. Class 2 and 3
a. Days of care 3,277 13,497 3,016 5,398 6,293 18,895
b. Average daily census 36.01 36.98 33.14 14.79 69.15 51.77
2. Intermediate care facility—
mentally retarded
a. Days of care 5,208 28,767 9,811 29,692 15,019 58,459
b. Average daily census 57.23 78.81 107.81 81.35 165.04 160.16
D. Home- and community-based services
1. Group home
a. Days of care 55,474 294,588 125,110 359,509 180,584 654,097
b. Average daily census 609.60 807.09 1,374.84 984.96 1,984.44 1,792.05
2. Adult developmental
a. Days of care 9,679 45,107 15,534 44,588 25,213 89,695
b. Average daily census 106.36 123.58 170.70 122.16 277.06 245.74
3. Home-based services
a. Days of care 24,480 233,623 477,850 1,486,853 502,330 1,720,476
b. Average daily census 269.01 640.06 5,251.10 4,073.57 5,520.11 4,713.63
E. Ventilator dependent 276 1,002 4,854 16,210 5,130 17,212
F. Acute patient day information
1. Admissions 109 421 376 1,488 485 1,909
2. Patient days 633 1,886 1,844 8,004 2,477 9,890
3. Discharges 111 433 396 1,512 507 1,945
4. Discharge days 625 1,949 1,935 8,214 2,560 10,163
5. Average length of stay 5.63 4.50 4.89 5.43 5.05 5.23
15
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Related Party Transactions
Year Ended June 30, 2001
Related Party
and Relationship Service Provided
Description of Transactions
or Payment Terms Agreement Amount
Department of Economic Security,
Division of Developmental
Disabilities, Intermediate Care
Facility/Mentally Retarded, State
Facilities
Health and rehabilitative
services and administrative
costs
Allocated by Title XIX case
management time reporting and
member days count
$ 6,837,027
Department of Economic Security,
Division of Developmental
Disabilities, State-Operated Group
Homes, State Facilities
Health and rehabilitative
services and administrative
costs
Allocated by Title XIX case
management time reporting and
member days count
3,722,878
Department of Economic Security,
Division of Developmental
Disabilities, Targeted Case
Management
HCBS and institutional services Additional funds provided for
authorized Title XIX services
1,250,000
Department of Economic
Security, all other divisions
Administrative and
fiscal services
Allocated departmental
overhead costs
24,646,494
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Lag Report for Institutional Care Payments
Year Ended June 30, 2001
Quarter Service Provided
Quarter of Payment (1) Current 1st Prior 2nd Prior 3rd Prior 4th Prior 5th Prior 6th Prior 7th Prior Total
Current $1,323,751 $ 953,703 $ 75,845 $ 25,008 $ 7,367 $ 1,260 $ 2,386,934
1st Prior 1,186,554 981,690 62,852 6,692 2,237,788
2nd Prior 1,175,676 771,186 27,880 927 $ 2,576 $ 123 1,978,368
3rd Prior 1,148,470 626,309 56,592 5,855 2,558 1,839,784
4th Prior 1,136,526 689,939 12,153 550 1,839,168
5th Prior 1,129,816 695,050 35,253 1,860,119
6th Prior 1,159,518 643,426 1,802,944
7th Prior 1,233,537 1,233,537
Total $1,323,751 $2,140,257 $2,233,211 $2,007,516 $1,804,774 $1,878,534 $1,875,152 $1,915,447 $15,178,642
Total current year expense reported $15,129,286
Expense through 3rd prior (1) 7,704,735
Adjustment (2) (6,307,036)
Remaining liability 1,117,515
(1) Expense represents the Arizona Social Services and Information Statistical Tracking System’s (ASSISTS) expenditures paid through
the 3rd prior quarter of payment and service provided.
(2) Adjustment represents the Financial Management Cost System’s Intermediate Care Facility—Mentally Retarded expenditures, net
non-ASSISTS expenditure corrections.
16
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Lag Report for Home- and Community-Based Services Payments
Year Ended June 30, 2001
Quarter Service Provided
Quarter of Payment Current 1st Prior 2nd Prior 3rd Prior 4th Prior 5th Prior 6th Prior 7th Prior Total
Current $36,828,617 $20,676,822 $ 949,494 $ 292,852 $ 269,892 $ 124,567 $ 78,568 $ 55,833 $ 59,276,645
1st Prior 33,649,383 19,737,631 629,209 383,722 108,540 38,673 18,582 54,565,740
2nd Prior 33,923,997 18,732,467 851,645 330,503 161,336 131,562 54,131,510
3rd Prior 35,721,343 18,127,594 586,515 172,215 122,560 54,730,227
4th Prior 34,353,074 18,118,861 574,191 303,226 53,349,352
5th Prior 32,238,328 17,351,008 840,639 50,429,975
6th Prior 32,191,748 17,745,837 49,937,585
7th Prior 32,085,487 32,085,487
Total $36,828,617 $54,326,205 $54,611,122 $55,375,871 $53,985,927 $51,507,314 $50,567,739 $51,303,726 $408,506,521
Total current year expense reported $217,495,124
Expense through 3rd prior (1) 201,141,815
Adjustment (2) 9,190,454
Remaining liability 25,543,763
(1) Expense represents the Arizona Social Services and Information Statistical Tracking System’s (ASSISTS) expenditures paid through the
3rd prior quarter of payment and service provided.
(2) Adjustment represents the Financial Management Cost System’s Home- and Community-Based Services and State Operated Group
Home expenditures.
17
18
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Listing of Plan Officers and Directors
Year Ended June 30, 2001
Name Title
Other
Relationship to
Division
Type of
Compensation
Barber, Ron Division of Developmental Disabilities,
District II, Program Administrator
None Salary
Buse, Bob Division of Business and Technology
Services, Acting Assistant Director
Related Party (1)
Clayton, John Department of Economic Security,
Director
Related Party (1)
Coulson, Louette Division of Developmental Disabilities,
Managed Care Program Administrator
None Salary
Harmon, Robert Superintendent, Arizona Training
Program at Coolidge
None Salary
Klaehn, Robert Division of Developmental Disabilities,
Medical Director
None Salary
Koppelman, Michael Department of Economic Security,
Associate Director
Related Party (1)
Laux, Patty Division of Developmental Disabilities,
District III, Program Manager
None Salary
Lensch, Brian Division of Developmental Disabilities,
Deputy Assistant Director
None Salary
Matzinger, Karl Division of Business and Finance,
Assistant Director
Related Party (1)
Nelson, Laura Division of Developmental Disabilities,
Medical Director
None Salary
(Continued)
19
STATE OF ARIZONA
DEPARTMENT OF ECONOMIC SECURITY
DIVISION OF DEVELOPMENTAL DISABILITIES
ALTCS CONTRACT
Listing of Plan Officers and Directors
Year Ended June 30, 2001
(Continued)
Name Title
Other
Relationship to
Division
Type of
Compensation
Rapoport, Ed Division of Developmental Disabilities,
Business Operations Administrator
None Salary
Sikkema, Tim Division of Developmental Disabilities,
District VI, Community Program
Administrator
None Salary
Wagemann, Dianne Division of Developmental Disabilities,
District I, Program Administrator
None Salary
Zaharia, Ric Division of Developmental Disabilities,
Assistant Director
None Salary
Zepf, Laurie Division of Developmental Disabilities,
District IV, Program Manager
None Salary
(1) Compensation is paid by other divisions of the Department of Economic Security.