Rule and Procedure Table of Contents
Overpayments to providers or to youth who receive their own payments (youth in independent living arrangements) usually occur because the CFS 906 and 906-1 (Placement/Payment Authorization Forms) are not completed in a timely manner whenever there is a change in a child's placement, a change in the services provided or a change in the status of the home. If the change in placement is not processed in a timely manner, the provider (usually a foster parent or supervisory agency) continues to receive payments for a time period in which the child for whom the payment is made is no longer in that foster parent's home.
If a change in services provided is not processed in a timely manner, the provider will receive full payment for the new services, and a receivable for the original payment will be created. If there is a change in the license status of the home (no longer licensed) and the notification to the Central Office Payment Unit is not timely, another payment to the provider at the higher licensing rate could result.
If a provider cashes and spends an amount for which no service was rendered, or an overpayment was generated (provider was paid more than once for the same time period for different services), the provider is liable for repaying that amount to the Department. The best way to prevent overpayments is to process changes in a child's placement or services by completing and submitting the CFS 906 as soon as the placement changes.
a) The Office of Collections, located in the Department's Central Office, Springfield, is responsible for collecting any overpayments that have been made. The Office of Collections is notified of overpayments by means of a computer- generated billing statement that lists the child's name, I.D. number, the type of service, the amount of the overpayment and the month of service in which the overpayment occurred.
1) If the provider continues to receive payments from the Department for other children in placement, the amount of the overpayment will be automatically deducted from the next month's payment for those other children until the overpayment is repaid.
2) The Office of Collections will notify providers (or youth) no longer receiving payments from the Department that an overpayment was made and request that the amount be repaid.
b) Foster parents who continue to provide care for other children for whom the Department is making payments may feel that the amount of the deduction will severely affect their ability to provide adequate care for the children remaining in their home. They may then notify their worker and request that an adjustment be made in the deduction. The deduction can be changed to monthly installments. The worker may negotiate a monthly amount with the foster parent based on the foster parent's income, expenses and family size. The smallest amount of the monthly deduction is equal to at least 10% of the monthly payment amount received by the provider.
When the worker and foster parent have agreed upon an amount, the worker shall inform the Office of Collections by faxed memo, e-mail (via Microsoft Outlook to: Riley, Cathleen) or a call to the manager. The memorandum or e-mail shall include the foster parent's name, provider I.D. number and the amount to be deducted monthly. The memorandum must be sent to the:
Manager, Office of Collections
406 East Monroe Station #433
Springfield, IL 62701
Phone: (217) 785-2535
Fax: (217) 782-4246
The Office of Collections will then data enter the amount indicated by the worker to be deducted from the current month's payment until the entire amount of the overpayment has been repaid.
The same process as above is to be followed for youth in independent living arrangements who have been overpaid and who continue to remain in an independent living arrangement.
c) If the provider who received an overpayment no longer has other children in care for whom payments will continue or a youth who received an overpayment is no longer in a paid independent living arrangement, the Office of Collections will notify the provider or youth in writing of the overpayment and a repayment schedule can be negotiated, taking into account their ability to repay based on income, expenses and family size.
d) When the Office of Collections has exhausted all
means to recover overpayments from former providers or youth formerly in
independent living arrangements, it will refer the matter to a private
collection agency, the State Comptroller's Office, and the Office of the
Attorney General.