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HomeMy WebLinkAboutResolutions - 2001.09.06 - 26675REPORT (misc. 101226) September 6, 2001 BY: Public Services Committee, David Moffitt, Chairperson IN RE: CIRCUIT COURT/FRIEND OF THE COURT — 2001/2002 MEDICAL SUPPORT ENFORCEMENT REIMBURSEMENT CONTRACT ACCEPTANCE To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The Public Services Committee, having reviewed the above-titled Resolution on August 28, 2001, reports with a recommendation to add the following paragraph: BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners respectfully directs the State's attention to the significant, outstanding issues with the form of the contract detailed in the Oakland County Corporation Counsel opinion dated July 30, 2001, noting that the State's late delivery of the form of the proposed contract rendered difficult, if not impossible, timely discussion to resolve these issues, and urges the State, in the strongest possible terms, to responsibly address and resolve these issues with the County following contract approval. Chairperson, on behalf of the Public Services Committee, I move acceptance of the above-mentioned Resolution with the recommended amendment. PUBLIC SERVICES COMMITTEE Public Services Committee Vote: Motion carried unanimously on a roll call vote. September 6, 2001 REPORT (MISC. 101226) BY: PERSONNEL COMMITTEE, THOMAS A. LAW, CHAIRPERSON RE: Circuit Court/Friend of the Court — 2001/2002 Medical Support Enforcement Reimbursement Contract Acceptance To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: The Personnel Committee, having reviewed the above mentioned resolution on August 29, 2001, recommends the resolution be adopted; including the additional Be It Further Resolved paragraph suggested by the Public Services Committee on August 28, 2001. Chairperson, on behalf of the Personnel Committee, I move the acceptance of the foregoing report. PERSONNEL COMMITTEE (3,w/ Personnel Committee Vote: Motion carried on unanimous roll call vote with Galloway absent. ., MISCELLANEOUS RESOLUTION # 01226 September 6, 2001 BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON IN RE: CIRCUIT COURT/FRIEND OF THE COURT - 2001/2002 MEDICAL SUPPORT ENFORCEMENT REIMBURSEMENT CONTRACT ACCEPTANCE TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS the Michigan Family Independence Agency has awarded the 2001/2002 Medical Support Enforcement Reimbursement contract to the Oakland County Friend of the Court in the amount of $361,444; and WHEREAS this is the fourth year for the contract and provides 100% reimbursement for services which establish and enforce medical support and insurance provisions in domestic relations cases; and WHEREAS the grant award is the same as the application and covers the period of October 1, 2001 through September 30, 2002; and WHEREAS the contract provides funding to continue three (3) Domestic Support Specialists, and two (2) Case Assistants and the upward reclassification of one (1) Domestic Support Specialist to Domestic Support Specialist Supervisor, and one (1) Clerk III to FOC Case Assistant, as well as various overtime; and WHEREAS approval of the contract agreement is pending further review by Corporation Counsel. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners accepts the Michigan Family Independence Agency 2001/2002 Medical Support Enforcement Reimbursement contract for the Oakland County Friend of the Court in the amount of $361,444. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners approve the upward reclassification of one (1) SR Domestic Support Specialist (35404-07793) to Domestic Support Specialist Supervisor, and the upward reclassification of one (1) SR Clerk III (35404-09124) position to a FOC Case Assistant in Circuit Court/Family Division/Friend of the Court. BE IT FURTHER RESOLVED that future level of service, including personnel, will be contingent upon the level of funding for this program. BE IT FURTHER RESOLVED that the Chairperson of the Board of Commissioners is authorized to execute the contract agreement and to approve amendments and extensions up to fifteen (15%) percent variance from the award, consistent with the original agreement as approved. BE IT FURTHER RESOLVED the Circuit Court/Friend of the Court FY 2001 Special Revenue Budget be amended to reflect the following: Revenue 35-141661-71000-0171 Medical Support Enforcement $361,444 Chairperson, on behalf adoption of the foregoing re Expenditures 35-241661-71000-2001 35-241661-71000-2075 35-241661-71000-2002 Salary Fringe Benefits Overtime of the Finance Committee, solution. FINANCE COMMITTEE $230,074 $ 88,491 $ 42,879 $ 0 I move the FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Taub absent. Oakland' County Grant Application Summary Report Requesting Department/Program/Agency Circuit Court/Friend of the Court Title of Grant Medical Support Enforcement Grantor Agency Michigan Family Independence Agency Title of Grant Funded Program Medical Support Enforcement Grant Notification 6/06/01 Submission/Acceptance 6/30101 Date Deadline Grant being submitted is: New • Renewal Modified • Is a County match required: Yes • No Is match in your current budget: Yes • No Will the requested County match Yes • No require an additional appropriation: This will be the fifth year of grant funding for this program. Is this program projected to extend beyond the current grant funding period? Yes The maximum number of years for which this grant is available: Indefinite Briefly, describe any program and/or personnel changes since the most recent grant acceptance: Two position upgrades GRANT SUMMARY PRIOR YEAR AMT GRANT REQUEST GEN ERAL , 'N. FC> M 'All, I! 0 N Grant funding period 10/1/00-09/30/01 10/1/01-09/30/02 . (provide mrn/yy— mrn/yy) Total amount ($$) of grant $327,900 $361,444 R).;1 E WU: E .; lilt ,A.,T a4-K ,R, E CI U I. IR• 'IVI", E, Federal match $0 $0 State match $327,900 $361,444 Local or agency match $0 $0 PER S*. NOCE L Number of grant funded positions 7 — 2 case assistants, 4 support 7 — 3 case assistants, 3 support (list classes, ex. 3 clerks) specialists, 1 clerk Ill specialists, 1 support spec. supervisor Grant funded personnel costs $206,226 $272,954 Grant funded fringe benefits $87,392 $88,490 E X P E, IT EY l' 7, IP R E.;,S Grant funded program costs $34,282 $0 County match requirements $0 $0 Please attach: Program Summary; Approvals from Fiscal Services, Corporation Counsel and Personnel Revised 02/27/01 Date: To: From: July 16, 2001 Stefanie Rodgers Kathleen Cox/Joseph Saiamone Title/Subject: File # Contact Parson: Medical Support Enforcement Application & Contract Department: Telephone #: Circuit Court/Friend of the Court 848-0422 Kathleen Cox Final Other * 1 I No f x I Yes — Resolution # Date: Is Board Resolution required? - )1.ISK MANAGEMENT AND SAFETY: ( EZ Approved I I Disapproved • %Approved • EQApproved PERSONNEL DEPT: CORPORATION COUNSEL: 7 Approved X1 Disapproved • Modify * Date: CONTRACT/PROGRAM SYNOPSIS: Medical Contract for enforcement of medical .rovisions of court orders: i.e. reimbursement of health care expenses, modification of orders to include language re: medical insurance and health care costs. Insurance informationrmpided to state of Michigan and custodial parents. The Medical contract is funded 100% by the state of Michloan. No county match is necessa MANAGEMENT AND BUDGET: Disapproved • Disapproved • Modify • Date: Modify' Date: Modify • Date: Signature: I Signature: Signature:4e4/12.34.1 C ht2C/L/477//i/(2 CONTRACT/PROGRAM REVIEW REQUEST STATUS: (Check appropriate box) E:] Initial 7 Revision # FT Extension • If "other is checked, please explain: • • When "Disapproved" is noted or "Modify" is requested, attach explanation. Risk Management & Safety — Revised 2198 Gaetly's FileskWord '971Sanzica1Watetthed‘CONTRACr-PROGRAM REVIEW REQUEST.doc CORPORATION COUNSEL MEMO OAKLAND COUNTY INTEROFFICE To: Frank Millard Joseph Salamone Kathleen Cox Stefania Rodgers CC: Judy Cunningham From: Karen Agacinski file: 2001-0607 Date: July 30, 2001 Re: Grant Application Medical Support Enforcement Application and Contract ISSUE This grant application and draft contract were sent to our office for review. While the grant application is straightforward and presents no particular problems, many provisions in the contract are not in the best interests of the County and should be negotiated with FIA. Until then, I cannot recommend that ite Board of Commissioners approve the grant application or accept the grant. Alternatively, if the Board of Commissioners agrees to submit the grant application, it should not sign the contract until the issues discussed below have been addressed, resolved and language that reflects these changes incorporated into the contract. ANALYSIS For ease of discussion, each section of the draft contract which contains language or concepts that are vague, overly broad or unilaterally give excessive power and authority to PTA without providing recourse to the County or FOC are considered separately. In the contract, the Family Independence Agency is "FIA", the Court is "Curt" and the County is "Contractor". Section I, Contractor and Court Duties and Responsibilities The first sentence states, "Contractor through FOC shall enforce all medical support orders . . . and seek modifications of orders to include medical support." The first difficulty here is that FOC is an arm of the Court, not the County. By agreeing to this language, the County agrees to enforce and seek modification of medical support orders through an agency over which it has only limited supervisory power. In addition, this foundational provision commits the County to each and every obligation and subjects it to every penalty set forth in the remainder of the contract, again while the BOC is without a supervisory role regarding FOC operations or PRIVILEGED AND CONFIDENTIAL ATTORNEY / CLIENT COMMUNICATION Oakland County Corporation Counsel control over the performance of the various duties and tasks. The remainder of Section I also requires compliance with a number of manuals, letters and other "Title N-D Standards." These standards are subject to change without notice. Based on the absolute language used here (e.g., "shall" instead "reasonable efforts" or "within a reasonable time") both the County and FOC are being asked to commit to immediate compliance with unknown (and at this time, unknowable) regulations and requirements. Similar provisions also appears elsewhere in the draft contract, [e.g., Section II (C)] Section I (A) Services Letter (h) states, "FOC shall review and modify medical support orders." It is my understanding that modification of court orders is the province of the Family Division Judges. This language should be changed to better reflect the advisory role of FOC. Section I (D) Statewide Automated System states that Contractor and Court agree to "cooperate" in meeting the federal requirement for a statewide automated system and "thereby agree to comply with all IV-D, OCS, Child Support Enforcement and FIA reporting requirements" (again including any and all prospective changes in reporting requirements). • As written, this section st'ems to include "cooperate" among the requirements, yet "cooperate" is undefined. In other words, FIA can decide that the County has breached the contract if FIA determines, according to unknown and unspecified standards, that the County is not "cooperating" in meeting the federal requirement for a statewide automated system. This language may "open the door" to allowing the State to pass federal penalties on to the County if FIA decides that the County is not "cooperating" in meeting the federal requirement for a statewide automated system. The potential cost to the County if federal penalties are passed through is enormous. Section I (F) Billing Method, second paragraph, third se'ntence states, "The funding in this contract shall be available only to the extent that Contractor and Court maintain the same IV- D staffing levels already funded under the 1995 CR contract program. Contractor and Court shall not leave positions vacant under the CR contract while billing for services under the MSE contract." Positions under this grant are 100% state funded. The other "staffing levels" mentioned above are funded by both the State and the County. This clause seems designed to prevent FOC from using 100% state funded positions while leaving county/state funded positions vacant. However, according to the final sentence in this section, the County and FOC are in breach of contract if any positions funded under this grant are not continuously occupied. This language does not reflect the realities of hiring employees and should be changed to something more realistic such as "The FOC shall use reasonable efforts to promptly fill positions funded by this grant." NATEMPFILE\1number12001\2001-0600 thru 2001-0699\2001-0607 MCSES-FIA with Friend of the CourtMemo.doc 2 07/31/01 Oakland County Corporation Counsel Section I (G), Billing Procedure requires that the "Title IV-D Medical Support Expenditure Report (Form FIA-286A) shall be submitted within 15 working days of the end of the monthly billing period." This section makes no allowance for delays that may be beyond the County's or FOC's control, includes no provision for seeking an extension, and again places the County and the FOC in immediate breach if the report is not submitted within this time frame. See discussion on Section II (B)(1) (below). Section I (H), Bonding of Employees requires the approval of FIA if Contractor and Court are self-insured. This approval should be in writing for the protection of the County. At this time, I am unaware that any written approval of the County's self-insurance practices has ever been issued by FIA. Failure to obtain a written approval while continuing to self-insure places the County at risk for breach of contract. Section 11 (B)(1) Payment [for services billed under Section I (G)] states that the late submission of the billing report permits FIA to delay processing. However, since this section is not referenced in Section I (G) and delay in payment is not identified as the sole penalty for late billing report submissions, delay in processing and payment should not be viewed as the sole and exclusive penalty for late submissions. Section II (B)(2) allows FIA to defer or disallow payment for several reasons. This section contains nvrovision to permit FOC to disagree with or challenge FIA's determination that it has Tailed to comply with the listed requirements. Section II(C), Title IV-D Standards Compliance Monitoring and Evaluation, paragraph 1, gives FIA authority to "monitor and evaluate Contractor and Court performance for compliance with the statewide automated system, Title IV-D Standards, all Contractor and Court duties and responsibilities, as identified in Section 1 of this Agreement and all other terms set forth in this Agreement. (See also Section I.) "Monitoring" and "evaluating" are terms that suggest and require identifiable measurement and performance outcomes. The County should not agree to be monitored and evaluated unless it knows the frequency and the level of performance which will be required to achieve compliance, e.g., 80% compliance, 90% compliance. In addition, achieving 100% compliance, if that is the intent, is impossible to achieve. Agreeing to this language places the County and the Court in breach even while performing the prescribed duties thoroughly and well. Without greater specificity in this language, the County and FOC cannot establish compliance at anything less that 100%. This language also opens the County and Court to continuous monitoring even if the practices are disruptive to operations and performance. Section 1I(C), Title IV-D Standards Compliance Monitoring and Evaluation, paragraph 2, allows FIA to issue a notice of Non-Compliance, direct corrective actions and set completion NATEMPFILE1number\2001\2001-0600 thru 2001-0699\2001-0607 MCSES-FIA with Friend of the CourtWerno.doc 3 07/31/01 Oakland County Corporation Counsel due dates. FOC has no way to appeal the assessment and the paragraph omits reference to any collaborative or reasonable methods to remedy an alleged non-compliance. There is also no provision to seek a time extension. Section 111(E), Examination and Maintenance of Records permits FIA and federal auditors to review all records for up to five years after final payment. This section gives FIA unilateral authority to adjust or withhold future payments or to require repayment if it determines that the County has been overpaid. As written, it also allows FIA to withhold or require repayment of even undisputed amounts. The section does not provide for an appeal process. Section ifi (I), Property Title gives title to any non-CSES real or personal property to FIA if the property is purchased with grant funds. The County and FOC agree to return, or pay pro rata, for any property purchased with grant funds. This language fails to protect any proprietary, confidential or licensed materials or any intellectual property, such as software or software modifications, that may be acquired or developed by the County or FOC and/or used in this program. This language goes much further than the right to a royalty-free use license described in Section III (G). Since this grant funds positions, this section is unnecessary. Section 111(N) Dispute Resoluti8n describes a several-step dispute resolution process. In Section (N)(3), Formal Notice of Intent, the first sentence requires the County and Court to act jointly to pursue a claim against FIA. If the interests of the County and FOC differ, and only one of them seeks to bring a claim, it would be impossible. Other sentences in this section suggest that the County or the Court may act separately in bringing a claim. The language used in this section regarding the capacity to bring a claim should be clarified. In addition, the dispute resolution process is not-referenced in any other contract section such as sections where FIA has unilateral authority to withhold payment, demand repayment or impose another penalty. Section ill (N)(4) reiterates FIA's right to suspend payment or require repayment under Section (B) even if the dispute resolution process has been initiated. Since the majority of disputes seem likely to be about money, FIA's contractual right to hold the purse strings is significant. In Section DI (Q) Audit Requirements FIA agrees "to participate" in audit costs. The percentage of costs that each party would be required to pay should be specified. Finally, the draft contract does not include language by which each party agrees to be responsible for the conduct, actions, errors or omissions of its employees. Nothing in the NATEMPFILE1number1200112001-0600 thru 2001-069912001-0607 MCSES-FIA with Friend of the Court1Iviemo.doc 4 07/31/01 Oakland County Corporation Counsel contract limits the County's liability for actions of state employees or the State's right to seek indemnification from the County. RECOMMENDATIONS The BOC should be aware that while the grant application is innocuous, the provisions in the draft contract are not Among other things, the contract provisions: • allow FIA to decide, using unspecified criteria, that the County is not "cooperating" in the implementation of a statewide automated child support enforcement system (CSES) and potentially "opens the door" to FIA passing federal penalties through to the County if FIA decides that the County is not "cooperating." • impose stringent performance requirements on the FOC, but do so in a way that permits subjective evaluation of Performance, and creates the risk of breach even for normal effective day-to-day operations; • require an agreement to abide by regulations that may change at a moment's notice at any time in the future; • make the County responsible for performance by the Court which it does not supervise; \;* • contain many vague and ambiguous terms when specificity would better serve the contractual goals; • provide little or no recourse if the County or FOC disagrees with FIA's assessment of FOC' s performance; • require FIA approval of self-insurance; and • give ownership of all property including any intellectual property developed by the County to the State. This ownership right far exceeds any rights inherent in a license to use intellectual property which may be developed by the County. Many of these deficiencies could be corrected through negotiations with FIA and by redrafting portions of the contract. However, based on this analysis, I cannot approve this grant application and contract for signature. Perhaps there is a better way to fund these positions than by accepting grant money that imposes requirements such as those discussed here on the County. NATEMPFILE\1number12001\2001-0600 thru 2001-0699\2001-0607 MCSES-FIA with Friend of the Court\Memo.doc 5 07/31/01 Contract No: Contract Amount: County: Method of Payment: CS/MED-02-63001-1 $361,444.00 OAKLAND Actual Cost AGREEMENT between Michigan Family Independence Agency and The County of Oakland 235 South Grand Avenue County Bldg, 1200 N Telegraph Rd P 0 Box 30037 Pontiac, MI 48341 Lansing, Michigan 48909 This Agreement, effective October 1, 2001 through September 30, 2002, is by and between the Family Independence Agency, (hereinafter referred to as "FIA"), the County of Oakland, a public organization, (hereinafter referred to as "Contractor"), and the Chief Circuit Judge for the Court, (hereinafter referred to as "Court"). I. CONTRACTOR AND COURT DUTIES AND RESPONSIBILITIES Contractor through Friend of the Court (FOC) shall enforce all medical support orders which it has jurisdiCtion over and seek modifications of orders to include medical support in accordance with all applicable federal regulations and requirements, statutes, court rules, FIA policies and procedures that relate to enforcing and modifying medical support orders, by using the automated Michigan Child Support Enforcement System, the Friend of the Court Manual, Section 4000, the Friend of the Court Letters, Office of Child Support (OCS) IV-D Combined Manual and the Michigan IV-D Action Transmittals (hereinafter referred to as "Title IV-D Standards"). The intent of this contract with enhanced funding is to: • Enable Friends of the Court to identify the existing backlog of IV-D cases requiring medical support enforcement efforts, • Determine what enforcement action is needed on those backlogged cases, and • Initiate needed enforcement action on all backlogged and new IV-D cases. For enforcing medical child support orders in IV-D cases and as a subrecipient of Federal Financial Assistance, Contractor and Friend of the Court shall comply with Title IV-D Standards. 1 A. Services The Friend of the Court shall: 1. Make Medical Support Enforcement (MSE) services available to all eligible individuals. Eligible individuals are those custodial parents (and their children) who are past or present recipients of Family Independence Program (RP), IV-E Foster Care or the Medicaid programs or who have filed an application for IV-D services. 2. Maintain records and provide collection services. 3. Enforce medical support obligations using all appropriate Title IV-D standards: a) Identify cases requiring medical support enforcement through manual review of cases or through approved computer tape match processes. b) Obtain medical insurance information and convey it to Department of Community Health (DCH), Revenue and Reimbursement Division through electronic submission to the Michigan Child Support System; or, submission of "Employer's Disclosure of Income and Health Insurance Information" (FOG 22a) and "Friend of the Court Case Questionnaire" (FOC 39C). C) File petitions with the court to order the inclusion of health insurance in new or modified orders. d) Serve dependent health care coverage orders on employers and insurance carriers. e) Contact absent parents to obtain insurance information or to obtain insurance coverage if available at reasonable cost though not ordered. f) Contact employers or insurers to obtain policy coverage information or to request notification of lapsed coverage. g) Inform non-Medicaid clients of the availability of medical support enforcement services. h) Review and modify medical support orders. i) Inform non-Medicaid clients of insurance information obtained through FOC enforcement efforts (Medicaid clients shall be notified by FIA when DCH receives the information). 2 4. Initiate locating action when necessary. 5. Cooperate with other states for enforcement of medical support orders. 6. Maintain the following administrative processes a) Fiscal Policies and Accountability b) Bonding of Employees c) Separation of Cash Handling and Accounting Functions d) Safeguarding of Information B. Reports Contractor and Court shall prepare, complete and submit the following reports in the cycles indicated, to the units named: 1. Form: FIA-286A - Title IV-D Medical Support Expenditure Report, including appropriate time documentation. This expenditure report shall not be complete and acceptable for payment unless the report section of the form is completed listing the progress on achieving $, the goals ofVe contract as set in the contract application. Cycle: Due by the fifteenth (15) working day after month of service To: Family Independence Agency Office of Child Support P.O. 30478 Lansing, MI 48909-7978 2. Form: FOC 22A IV-D Approved Electronic Reporting - Employer's Disclosure of Income and Health Insurance Information. This report must contain the Family Independence Case Number before it is submitted to DCH, Revenue and Reimbursement Division (formerly TPL). The form is described in the Friend of the Court Manual, Section 4000, Chapter 500. Cycle: Whenever the information becomes available. To: Entered on Child Support Enforcement System (CSES) or Medical Support Enforcement System (MSES) for interfacing with the Michigan's Title XIX Agency, DCH, Revenue and Reimbursement Division. 3 3. Form: FOC 390 - Friend of the Court Case Questionnaire. Page 3 of this questionnaire may include health care information. A copy of page 3 of this form may be used to convey information to DCH, Revenue and Reimbursement . Division (formerly TPL). HA case number and the names of the Payer and payee must be added to it before submission. The form is described in the Friend of the Court Manual, Section 4000, Chapter 500. Cycle: Whenever the information becomes available. To: Michigan Department of Community Health Budget and Finance Administration Bureau of Audit and Revenue Enhancement Revenue and Reimbursement Division P.O. Box 30479 Lansing, Michigan 48909 C. Client Grievance System Each Court shall have a written office grievance system, which provides the opportunity to seek relief for those who believe they have not received services required by the IV-D program, or believe the services they have received are not in accordance with IV-D regulations. Information about the grievance system shall be provided to clients or F1A upon request. D. Statewide Automated System Contractor and Court hereby agree to cooperate in meeting the federal requirement for a statewide automated system and agree to use the automated Michigan Child Support Enforcement System (hereinafter referred to as "System") for processing intra- and inter- state data pursuant to Title IV-D Standards throughout the life of this Agreement, and thereby agree to comply .with all IV-D, OCS, Child Support Enforcement, and FIA reporting requirements. FIA will evaluate Contractor and Court as complying with all such requirements upon implementation and continuous use of the System. E. Applicable Costs, Maintenance of Effort on Cooperative Reimbursement Contract Contractor and Court, as subrecipients of Federal Financial Assistance, agree to abide by applicable provisions of the Cost Principals for State and Local Governments issued in the Federal Office of Management and Budget Circular No. A-87. This Circular provides cost principles to be used in determining the availability of Federal Financial Assistance for Child Support Enforcement activities under Title IV-D of the Social Security Act. If any staff funded in part or whole by IV-D funds do not work full-time on medical support matters, detailed time-records for such employees are required to document the amount of time spent on reimbursable activities. If employees intermingle work effort on child support enforcement and medical support enforcement, the FOC must document the medical support enforcement effort through time study if a claim is to be honored under this contract. Medical Support Enforcement has been and shall continue to be funded under the existing Cooperative Reimbursement (CR) contract already in effect between these parties. This contract shall fund medical support enforcement work effort in addition to that already funded under the CR contract. The funding in this contract shall be available only to the extent that Contractor and Court maintain the same IV-D staffing levels already funded under the 1995 CR contract program. Contractor and Court shall not leave positions vacant under the CR contract while billing for services under the MSE contract. F. Billing Method 1. The Actual Cost Reimbursement Method shall be used to claim reimbursement under this Agreement. The Medical Support Enforcement Budget is attached hereto and made a part of this Agreement. The Budget and Application detail the amount and object of expenditures for which Contractor and Court shall use funds paid under this Agreement. Contractor and Court shall follow and adhere to the Budget. Only actual costs may be billed. 2. Contractor and Court must obtain written approval from FIA to increase or decrease line items in the budget. Contractor and Court's request for FIA's approval must contain sufficient information to allow F1A to identify which budget line items are to be increased, which line items are to be decreased, the reason for change, the programmatic impact of the budget changes, and must stay within the originally approved budget total. The person authorized to approve budget revisions is the Director of the Office of Child Support, F IA. 3. Actual costs may include the cost of fringe benefits provided by Contractor for the Court and the employees funded by this Agreement, in the same proportion as that employee is employed in IV-D Medical Support Enforcement reimbursable activities, as long as those fringe benefits are no greater than benefits Contractor provides to similar non-IV-D employees, and are not contrary to any federal regulation. Fringe benefits may include longevity, vacation, personal leave, holiday, sick leave, medical, dental, optical, life insurance, disability insurance, retirement, social security, workers compensation, and unemployment insurance. 5 4 G. Billing Procedure Contractor and Court shall complete a monthly "Title IV-D Medical Support Expenditure Report," (Form FIA-286A) detailing program related expenditures and the progress of the project with respect to the goals stated in the contract application. The FIA-286A shall indicate actual costs by category of expense in the performance of this Agreement for the period being billed. The FIA-286-A shall be submitted within fifteen (15) working days from the end of the monthly billing period to Contract Manager. For the month of September, billings shall be submitted as reasonably directed by FIA to meet fiscal year-end closing deadlines. Reimbursement of billings not meeting the F1A fiscal year-end closing deadlines, shall be dependent upon the availability of funds for prior year payment purposes in the applicable F1A current fiscal year appropriation. H. Bonding of Employees Contractor and Court agree to assure that every person who, as a regular part of his or her employment, receives, disburses, handles, or has access to support collections shall be covered by a bond or insurance, or be self-insured with the approval of FIA, in an amount sufficient to protect against loss resulting from employee dishonesty. II. FIA DUTIES AND RESPONSOILIT1ES A. Program Administration FIA, as a recipient of Federal Financial Assistance, shall administer the Title IV-D program in Michigan, and shall maintain the approved Title IV-D State Plan consistent with federal requirements. FIA shall also distribute program regulations, forms and instructions to Contractor and Court through the Friend of the Court Manual, Section 4000, the Friend of the Court Letters, the OCS IV-D Combined Manual, and the Michigan IV-D Action Transmittals. B. Payment 1. F1A shall complete its processing of payments to Contractor within thirty (30) calendar days after receipt of Contractor's monthly FIA-286, "Title IV-D Cooperative Reimbursement Expenditure Report," detailing program related expenditures. Payments shall be made in accordance with the budget attached to and made part of this Agreement. For FIA-286 Expenditure Reports submitted after the due date, F1A reserves the right to delay processing and payment to the next available cycle. 6 2. Further, FIA reserves the right to defer or disallow payment of any claim submitted by Contractor or Court for: (a) Failure to document and provide to FIA any required records, statistics, and reports; or (b) Failure to comply with the federally required statewide automated system as described in § I (D) of this Agreement ; or (c) Failure to comply with Title IV-D Standards for medical support enforcement in Michigan as required by this Agreement or as are required by applicable state statute and federal regulations. C. Title IV-D Standards Compliance Monitoring and Evaluation 1. FIA shall monitor and evaluate Contractor and Court performance for compliance with the statewide automated system, Title IV-D Standards, all Contractor and Court duties and responsibilities, as identified in § I of this Agreement, and all other terms set forth in this Agreement; and 2. When FIA determines Contractor or Court is not complying with the statewide automated system as et forth in § I (D), all Title IV-D Standards as defined in § I, fails to provide\FIA or its agents with access to data as FIA deems necessary or all terms set forth in this Agreement, then FIA shall also issue a Notice of Non-Compliance to Contractor and Court which directs corrective action(s) and a completion due date(s). D. Maximum Amount of Agreement 1. The maximum amount F IA hereby agrees to pay Contractor for services as defined by the terms of the Agreement is THREE HUNDRED SIXTY-ONE THOUSAND FOUR HUNDRED FORTY-FOUR AND NO/100 DOLLARS ($361,444.00). 2. The maximum amount of costs to be reimbursed by FIA shall be the State Share of actual expenditures during the life of this Agreement up to the maximum of the Title IV-D Program Net Budget a copy of which is attached hereto and made a part hereof. III. GENERAL PROVISIONS A. FIA's Source of Funds-Termination FIA's payment of funds for purposes of this Agreement is subject to and conditional upon the availability of funds for such purposes, being federal and 7 state funds. No commitment is made by HA to continue or expand such. activities. FIA may terminate this Agreement immediately upon written notice to Contractor and Court at any time prior to the completion of this Agreement if, in the opinion of F1A Director, funding becomes unavailable for this service or such funds are restricted. B. Civil Service Rules and Regulations The State of Michigan is obligated to comply with Article XI Section 5 of the Michigan constitution and applicable civil service rules and regulations. Other provisions to this Agreement notwithstanding, the state personnel director is authorized to disapprove contractual disbursements for personal services if the state personnel director determines that the contract violates Article X1 Section 5 of the Michigan constitution or applicable civil service rules and regulations. C. Fees and Other Sources of Funding Contractor and Court guarantee that any claims made to F1A under this Agreement shall not be financed by any source, including client fees, other than F1A under the terms of this Agreement. If funding is received through any other source, Contractor and Court agree to delete from Contractor and Court billings, or to immediately refund to HA, the total amount representing such duplication of funding. D. Review and Monitoring Reports Contractor and Court shall comply with all program and fiscal reporting procedures, as set forth in the terms of this Agreement, at time intervals and on specified forms as established by the F1A on the beginning date of this Agreement. Any additional reports, which the F1A proposes to be completed, shall be completed pursuant to agreement by the parties to this Agreement. Reports or billing documents denoting event dates shall record month, day, and year as specified by F1A. In all electronic filings, four digits shall be used to designate century. E. Examination and Maintenance of Records Contractor and Court shall permit FlA or any of its identified agents access to the facilities being utilized at any reasonable time to observe the operation of the program. Further, Contractor and Court shall retain all books, records or other documents relevant to this Agreement for five (5) years after final payment, at their cost, and federal auditors and any persons duly authorized by HA shall have full access to and the right to examine and audit any of said material during said period. If an audit is initiated prior to the expiration of the five-year period, and extends past that period, all documents shall be maintained until the audit is 8 completed. F IA shall provide findings and recommendations of audits to Contractor and Court. FIA shall adjust future payments or final payment if the findings of an audit indicate over or under payment to Contractor in the period prior to the audit. If no payments are due and owing Contractor, Contractor shall immediately refund all amounts which may be due FIA. F. Compliance with Civil Rights. Other Laws Contractor and Court shall not discriminate against any employee or applicant for employment with respect to hire, tenure, terms, conditions, or privileges of employment, because of race, color, religion, national origin, age, sex, height, weight, or marital status pursuant to 1976 P.A. 453, Section 209. Contractor and Court shall also comply with the provisions of the Michigan Handicappers Civil Rights Act, 1976, P.A., 220 and Section 504 of the Federal Rehabilitation Act of 1973, Pi. 93-112, 87 Stat. 394, which states that no employee or client or otherwise qualified handicapped individual shall, solely by reason of handicap, be excluded from participation, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. Contractor and Court shall comply with the Americans with Disabilities Act of 1990 (ADA), P.L. 101-336, 104 Stat. 328, which prohibits discrimination against individuals with disabilities and provides enforcement standards. Further, Contractor and Court shall comply with all other federal, state or local laws, regulations and standards, and any amendments thereto, as they may apply to the perfairmance of this Agreement. G. Royalties and Copyright F1A reserves a royalty-free non-exclusive license to use and authorize others to use all written or visual material or other work products developed in connection with this Agreement, including all copyrightable or copyrighted materials. H. Confidentiality The use or disclosure of information concerning clients obtained in connection with the performance of this Agreement shall be restricted to purposes directly connected with the administration of the programs implemented by this Agreement and as required by federal regulations and state statute. I. Property Title Title to all non-Child Support Enforcement Systems (CSES) property, real or personal, used by Contractor or Court in the performance of this Agreement and which is funded in whole or part by F1A shall remain in FIA during the term of this Agreement. Upon expiration of this Agreement or any extension thereof, Contractor and Court agree to return said property to FIA or pay the then current 9 .. fair market value thereof to F1A. However, in the event that any such property is only partially funded by F1A, Contractor or Court shall return said property to FIA or pay F1A that portion of the current fair market value of such item which is in the same percentage as FIA's contribution to the original purchase price. Where property in which F1A has an interest is traded for other property, Contractor and Court shall maintain continuing records to account for FiA's financial interest in such subsequent acquisitions. J. Subcontracts Contractor or Court shall not assign this Agreement or enter into subcontracts, which shall be paid in whole or part using money received through this Agreement without obtaining prior written approval of F1A. F1A, as a condition of granting such approval, shall require that such assignees or subcontractors shall be subject to all conditions and provisions of this Agreement. Contractor and Court shall be responsible for the performance of all assignees or subcontractors, and shall insure the subcontracted agents comply with all provisions of this Agreement. K. Cancellation of Agreement FIA reserves the right to cancel this Agreement by giving thirty (30) calendar days written notice to Contractor and Court. Contractor or Court may terminate this Agreement upon thirt4(30) days written notice to F1A at any time prior to the completion of the Agreement period. L. Closeout/Extension When this Agreement is concluded or terminated, Contractor and Court shall provide FIA, within sixty (60) calendar days after conclusion or termination, with all financial, performance and other reports required as a condition of the Agreement, unless written extension is granted by F1A for extenuating circumstances. F1A shall make payments to Contractor for allowable reimbursable costs not covered by previous payments. Contractor shall immediately refund to HA any payments or funds advanced to Contractor in excess of allowable reimbursable expenditures. M. Continuing Responsibilities Termination, conclusion, or cancellation of this Agreement shall not be construed so as to terminate the ongoing responsibilities or rights of the parties as provided in § III (E) and (L) of this Agreement, General Provisions, 10 -4 • f Examination and Maintenance of Records and General Provisions, Closeout Extension. N. Dispute Resolution -I. Local Resolution All parties agree to make a good faith attempt to resolve disputes. Resolution of any dispute shall first be attempted at the local level by Contractor, Friend of the Court and FIA's Office of Child Support (OCS) District Managers, as appropriate. 2. Second Stage Resolution If it appears a dispute cannot be resolved at the local level, the aggrieved party shall notify the other parties and the Director of OCS, in writing regarding the nature of the dispute and the efforts made to resolve the dispute. Within sixty (60) calendar days of this notification, the parties and the OCS Director or designees shall meet to attempt resolution of the dispute. 3. Formal Notice of Intent '$4 Contractor and Court shall notify FIA in writing of their intent to pursue a claim against FIA for breach of any terms of this Agreement. No suit may be commenced by Contractor or Court for breach of this Agreement prior to the expiration of ninety (90) calendar days from the date of such notification. Within this ninety (90) day period, Contract and Court, at the request of FIA, must meet with the Director of FIA or designee for the purpose of attempting resolution of the dispute. Formal Notice of Intent action shall not be commenced until resolution has been initiated as described in 1 and 2 above. However, these paragraphs do not restrict the right to invoke and cancel under § Ill (K) of this Agreement, General Provisions, Cancellation of Agreement. 4. Continuation of Services and Payment Prior to commencement and during the pendency of a dispute or a suit for breach of this Agreement, services shall continue to be provided as set forth in this Agreement and payment for such services by FIA shall continue without interruption, except as provided in § 11(B) of this Agreement, FIA Duties and Responsibilities, Payment clause of this Agreement. 11 0. Amendment This Agreement may be amended, at the request of any party, only by written consent of all the parties hereto. If Contractor or Court refuses to sign an amendment, F1A may terminate this Agreement at the end of sixty (60) calendar days from the date of request to amend. Contractor and Court shall suffer no liability to FIA for refusing to agree to said amendment, and said refusal shall not constitute a breach of this Agreement. P. Termination - Unfair Labor Practice FIA may void this contract upon fifteen (15) calendar days notice if the name of Contractor or Court, or the name of a subcontractor, manufacturer, or supplier of Contractor or Court, subsequently appears in the register compiled pursuant to Section 2 of Act 278, P.A. 1980. This Act prohibits the state from entering into contracts with certain employers who engage in unfair labor practices; to prohibit those employers from entering into certain contracts with others; to provide for the compilation and distribution of a register of those employers; and to provide for the voiding of certain contracts. Q. Audit Requirements 1. This Agreement constkutes a subrecipient relationship with HA. a. Contractor is required to comply with all federal regulations that relate to the accounting and auditing of the Federal award(s) used to fund this Agreement. This includes, but is not limited to, compliance with OMB Circular A-133. b. The Catalog of Federal Domestic Assistance (CFDA) number for the federal award(s), along with the Federal Financial Participation (FFP), and the related federal-regulations, laws, and other requirements may be obtained by accessing FIA, Office of Internal Audit's Web page at the following Web address (URL): http://www.mfia.state.mLusloialindex.htm c. FlA agrees to participate in audit cost related to the audit as described in other sections of this Agreement. 2. Audit Reporting Requirements a. If Contractor is required per OMB Circular A-133 to have a Single Audit performed, Contractor must submit the Reporting Package and an Audit 12 9 9 Transmittal Letter to the address below in accordance with the time frame established in the Circular. b. Reporting Package includes: 1. Financial statements and schedule of expenditures of Federal award(s) 2. Summary schedule of prior audit findings 3. Auditor's report(s) 4. Corrective action plan c. Mailing address for all information: Michigan Family Independence Agency Office of Internal Audit 235 South Grand Avenue, Suite 1112 Lansing, Michigan 48909 Attention: William Addison, CPA 3. Audit Transmittal Letter a. Contractor is responsible to identify in an Audit Transmittal Letter all organizations it operates that administer FIA subrecipient programs and the different names 'Contractor may use to contract with FIA. Contractor is responsible for proper completion and submission of an Audit Transmittal Letter. This letter, to be accurately processed by FIA, must include the following information: 1. Contractor's name as reported in FIA Agreement(s); 2. Contractor's Federal Identification Number as reported on FIA Agreement(s); 3. Contractor's fiscal year end; 4. Identify other names(s) and other Federal Identification Number(s) used by Contractor. b. If a Single Audit is not required per OMB Circular A-133, Contractor must still submit an Audit Transmittal Letter stating why a Single Audit was not required and Contractor's fiscal year the letter pertains to. The Audit Transmittal Letter should include items stated in the section, "Audit Transmittal Letter", described above. The letter may be mailed to the address above or FAX to (517) 373-8771. 13 1.t. n 4 4 4. Audit Costs No audit costs may be charged to FlA . when audits required by this Agreement have not been performed or have not been performed in accordance with OMB Circular A-133 requirements. Late submission of the Single Audit report is considered non-compliance with this section and may be grounds to impose sanctions. 5. Audit Sanctions FlA may impose sanctions if Contractor fails to adhere to any of the audit requirements in this Agreement. in cases of continued inability or unwillingness to comply with audit requirements, F1A may impose sanctions such as: a. Withholding a percentage of Federal award(s) until the audit is completed satisfactorily, b. Withholding or disallowing overhead costs, c. Suspending Federal award(s) until the audit is conducted; or d. Terminating the Federal award(s). R. Agreement Inclusivenes1; This Agreement with the previously mutually approved Application incorporated by reference and made a part hereof, is intended by the parties as the complete and final expression of their agreement with respect to the terms included herein, and may not be contradicted by evidence of any prior contemporaneous agreement, oral or otherwise. S. Continuity of Service Each party agrees that they will use due diligence to insure services to HA or its clients will not be disrupted by technology problems, which are within the control of the party. As used in this paragraph, the word technology includes, but is not limited to, computer hardware and software used by Contractor and Court to provide client services. 14 IN WITNESS WHEREOF, HA and Contractor have caused this Agreement to be executed by their respective officers duly authorized to do so, The Undersigned have the lawful authority to bind Contractor and Court to the terms set forth in this Agreement. Dated at , Michigan 6th CIRCUIT COURT Court this day of , 2001 By: Chief Circuit Judge Witness: Print Name: Dated at , Michigan THE COUNTY OF OAKLAND • Contractor this day of ,2001 By: Chairperson, Board of Commissioners Witness: Print Name: Dated at , Michigan FAMILY INDEPENDENCE AGENCY this day of , 2001 By: Douglas E. Howard, Director, or designee Witness: CONTRACT NO: CS/MED-02-63001-1 15 G.-William Caddell, County Clerk A t Resolution #01226 September 6, 2001 Moved by Douglas supported by Obrecht the Public Services and Personnel Committee Reports be accepted. A sufficient majority having voted therefor, the reports were accepted. Moved by Douglas supported by Buckley the resolution be adopted. Moved by Douglas supported by Obrecht the resolution be amended to coincide with the recommendation in the Public Services Committee Report. A sufficient majority having voted therefor, the amendment carried. Vote on resolution, as amended: AYES: Brian, Buckley, Causey-Mitchell, Coleman, Crawford, Dingeldey, Douglas, Galloway, Garfield, Gregory, Law, McPherson, Melton, Millard, Moffitt, Moss, Obrecht, Palmer, Patterson, Sever, Suarez, Taub, Webster, Amos, Appel. (25) NAYS: None. (0) A sufficient majority having voted therefor, the resolution, as amended, was adopted. MIUMMWIammtmorturotsmonotome I HEREBY --, L Brooks Patt I FOREGONG RESOLUTION Date STATE OF MICHIGAN) COUNTY OF OAKLAND) I, G. William Caddell, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on September 6, 2001 with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 6t,day of September, 2001.