H. QUARTERLY CERTIFICATION OF FUNDS

SHARS providers are required to certify on a quarterly basis the amount reimbursed during the previous federal fiscal quarter. TMHP Provider Enrollment mails the quarterly Certification of Funds statement to SHARS providers after the end of each quarter of the federal fiscal year (October 1 through September 30). The purpose of the statement is to verify that the school district incurred costs on the dates of service that were funded from state or local funds in an amount equal to, or greater than, the combined total of its interim rates times the paid units of service. While the payments were received the previous federal fiscal quarter, the actual dates of service could have been many months prior. Therefore, the certification of public expenditures is for the date of service and not the date of payment.

H1. Why do districts have to certify the total 100% instead of just the state share?

The Centers for Medicare & Medicaid Services (CMS) changed its interpretation of the COF process. Effective 10/1/06, school districts must certify that the school district spent an amount equal to or greater than the Total Computable Expenditure (i.e., both the federal and state/local shares) for the service. The SHARS services are reimbursed only the federal share and the school district is required to provide the state/local match.

Total computable expenditures must meet the definition of Medicaid-allowable costs. The Medicaid-allowable costs are direct payroll costs (i.e., salaries/wages, payroll taxes, employee benefits, and contracted compensation) for employees and contracted staff delivering SHARS.

H2. What is the purpose of the quarterly COF letter?

The purpose of the COF letter is to verify that the school district incurred the costs on the dates of service that were funded from state or local funds in an amount equal to or greater than the combined total of its interim rates times the paid units of service.

H3. Who can sign the quarterly Certification of Funds letter?

The school district’s Business Officer and/or Financial Representative who is responsible for signing other documents subject to audit can sign the quarterly COF letter. The quarterly COF letter must be notarized.  Also, refer to the current TMPPM section on SHARS.

H4. What is the difference between quarterly Certification of Funds letter and the Cost Report Certification (insert name of document)?

The quarterly COF letter is the interim payments received during that certification of funds quarter regardless of the SHARS dates of service. While the payments were received the previous federal fiscal quarter, the actual dates of service could have been many months prior.

The Cost Report Certification is required when submitting the annual SHARS cost report. It is used to formally acknowledge that the cost report is true, correct and complete, and was prepared in accordance to all rules and regulations.

H5. What happens if I don’t get my COF letter in on time?

If the initial COF letter is not received at Texas Medicaid & Healthcare Partnership (TMHP) by the deadline, a second COF letter will be sent with a due date of 10 calendar days later. If the second COF letter is not received at TMHP by the deadline, HHSC will be notified and the district will be sent a REFERRAL letter that is mailed via certified mail return receipt. If the REFERRAL letter is not received by the date specified in the cover letter, a vendor hold will be placed on the provider's payments until such time as the COF letter is received at TMHP. At any time the school district can contact TMHP at 1-800-925- 9126 to request a copy of their COF letter.