Section 357.1  Purpose (Renumbered)

 

(Source:  Renumbered to Section 357.10 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.2  Definitions (Renumbered)

 

(Source:  Renumbered to Section 357.20 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.3  Procuring Services (Renumbered)

 

(Source:  Renumbered to Section 357.40 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.4  Issuance of Requests for Proposals (Renumbered)

 

(Source:  Renumbered to Section 357.50 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.5  Content of Requests for Proposals (Renumbered)

 

(Source:  Renumbered to Section 357.60 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.6  Evaluation of Proposals (Renumbered)

 

(Source:  Renumbered to Section 357.70 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.7  Notification of Awards (Renumbered)

 

(Source:  Renumbered to Section 357.80 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.8  Disclosure of Proposals (Renumbered)

 

(Source:  Renumbered to Section 357.90 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.9  Contract Approval (Renumbered)

 

(Source:  Renumbered to Section 357.100 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.10  Purpose

 

The purpose of this Part is to explain how the Department purchases professional services on behalf of the children, youth and families it serves and what the Department requires from a purchase of service provider.  This Part does not apply to the goods and services governed by the standard procurement rules of the Department of Central Management Services.

 

(Source:  Old Section 357.10 renumbered to Section 357.110 and new Section 357.10 renumbered from Section 357.1 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.11  Fiscal Reports and Records (Renumbered)

 

(Source:  Renumbered to Section 357.120 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.12  Required Documentation (Renumbered)

 

(Source:  Renumbered to Section 357.130 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.13  Contract Termination (Renumbered)

 

(Source:  Renumbered to Section 357.140 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.20  Definitions

 

            "Adult" means a person age 18 and older.

 

            "Department", as used in this Part, means the Illinois Department of Children and Family Services.

 

            "Equal proposals for family preservation services" means proposals received by the Department which have been assigned, after review, the same number of evaluation points and the services to be provided are equal pursuant to the requirements of Section 357.70.

 

            "Fiscal year" means July 1 through June 30.

 

"Illinois Sex Offender Registry" means the registry of felony child offenders operated and maintained by the Illinois State Police.

 

            "Legal child care arrangement" means child care is being provided in a licensed child care facility, in a child care facility that is exempt from licensing, or in the child's own home.

 

            "Minor traffic violation" means a traffic violation under the laws of the State of Illinois or any municipal authority therein or another state or municipal authority that is punishable solely by fines as a petty offense. (See Section 6-601 of the Illinois Driver Licensing Law [625 ILCS 5/6-601].)

 

            "Negotiated contract" means a written contract with an agency or individual to provide needed child welfare or youth services, which contract is not competitively bid, but rather is mutually agreed upon with a provider.  Use of such contracts is further described in Section 357.40.

 

            "New service initiatives" means services that previously have not been provided by or purchased by the Department in the State or in a specific geographical area of the state.

 

            "Professional services" as used in this Part means child welfare services as defined in 89 Ill. Adm. Code 302 (Services Delivered by the Department of Children and Family Services) and youth services, as defined in this Section.

 

            "Program plan" means that part of the purchase of service contract that explains in detail who will be served, where and how they will be served and what outcomes are expected from the service.

 

            "Purchase of service provider" means an agency or individual offering services to a Department client through a signed contract with the Department. As used in this Part, the term does not include grants-in-aid that are awarded pursuant to 89 Ill. Adm. Code 360 (Grants-in-Aid).

 

            "Requests for proposals" or "RFPs" means a formal invitation to bid that the Department uses to obtain professional services.  The RFP explains the purpose, outlines the scope of the work and solicits proposals from individuals or organizations for the funding of services for certain initiatives or projects undertaken by the Department.

 

"SACWIS" means the Statewide Automated Child Welfare Information System operated by the Department that replaced the CANTS system.

 

            "Youth services" include but are not limited to community services, primary prevention, outreach and recreational opportunities, including the use of indigenous community volunteers to provide programs designed to correct conditions contributing to delinquency; diversion services, including client advocacy, family counseling, employment and educational assistance and service brokerage; and emergency services, including 24-hour crisis intervention and shelter care.  Youth services are further defined in 89 Ill. Adm. Code 310 (Delivery of Youth Services Funded by the Department of Human Services).

 

(Source:  Amended at 29 Ill. Reg. 8706, effective June 8, 2005)

 

Section 357.30  Purchase of Day Care Services

 

a)         The Department may purchase day care services for an eligible child in any legal child care arrangement including, but not limited to, licensed day care facilities, facilities exempt from licensing, and relatives and individuals who provide care in the children's homes.

 

b)         As a condition of receiving payment for day care services from the Department,  each in-home day caregiver, license exempt day care provider and assistant, and all adult members of the household in which a day care home exempt from licensing operates shall:

 

1)         complete and submit to the Department on a form prescribed by the Department a certification under penalty of perjury whether the person has been convicted of a crime, other than a minor traffic violation, or has been indicated as a perpetrator of child abuse and neglect; and

 

2)         complete and submit to the Department an authorization for a background check which may include, solely at the discretion of the Department, a criminal history check, a check of the Statewide Automated Child Welfare Information System (SACWIS) and a check of the Illinois Sex Offender Registry; and

 

3)         if requested, submit his or her fingerprints to the Department within 30 days after the Department's written request for such fingerprints.

 

c)         The Department shall conduct a check of SACWIS and the Sex Offender Registry on all individuals listed in subsection (b) of this Section when:

 

1)         care is being given to a child for whom the Department is legally responsible;

 

2)         a child is a member of an intact family that is receiving Department services; or

 

3)         one of the individuals required to complete the authorization for background checks as provided in subsection (b) of this Section acknowledges that he or she has been indicated as a perpetrator of child abuse or neglect.

 

d)         The Department shall conduct a check of SACWIS and the Illinois Sex Offender Registry on a random basis for all other individuals required to complete the authorization for background checks in subsection (b) of this Section.

 

e)         The Department shall send a notice to the individuals in subsection (b) of this Section requiring them to submit to fingerprinting whenever he or she acknowledges that he or she has been convicted of a crime, other than a minor traffic violation, as defined in Section 357.20.

 

f)         The Department may, in its sole discretion and on a random basis, require fingerprints of not more than 15% of all other individuals in subsection (b) of this Section and submit the fingerprints to the Illinois State Police.

 

g)         Authorization for payment for day care services shall be denied or withdrawn whenever an individual in subsection (b) of this Section:

 

1)         failed or refused to submit the authorization for background checks and fingerprints (if requested), as required by subsection (b) of this Section; or

 

2)         is found to have been convicted of any of the criminal acts listed in Appendix A of 89 Ill. Adm. Code 385 (Background Checks), or to have been indicated as the perpetrator of child abuse or neglect, or is listed in the Illinois Sex Offender Registry.

 

h)         In addition, if the Department learns one of the individuals in subsection (b) of this Section has falsified information on the certification form, the Department may deny or withdraw authorization for payment for day care services to that provider.

 

(Source:  Amended at 29 Ill. Reg. 8706, effective June 8, 2005)

 

Section 357.40  Procuring Services

 

a)         The Department procures professional child welfare and youth services by means of negotiated contracts and competitively bid contracts.

 

b)         Negotiated contracts are used in the following circumstances:

 

1)         When the nature of the service is such that it can only be obtained from a single service provider.

 

2)         When, in the opinion of the Department, maintenance of ongoing established services is necessary to ensure the continuity of care and assistance to children, youth and families served by the Department.

 

3)         When, in the opinion of the Department, an emergency exists and the urgency for the service will not allow time for preparing requests for proposals.

 

4)         When the Department is not required to use competitive bidding by statute or by the provisions of subsection (c)(1):

 

c)         Although the professional services governed by this Part are exempt from the competitive bidding procedures of the Illinois Procurement Code [30 ILCS 500] as opposed to the goods and services governed by the standard procurement rules of the Department of Central Management Services, the Department nevertheless recognizes the value of competition and therefore issues Request for Proposals (RFPs) in the following situations:

 

1)         The Department shall issue a RFP for all new service initiatives over $25,000 except where the RFP is required by Federal regulations such as 45 CFR 74.  The Director shall waive the RFP requirement when a determination is made that an emergency exists.  An emergency shall include, but not be limited to, the following situations:

 

A)        When the service initiative is immediately needed to prevent interruption in services to current clients, or

 

B)        The service initiative is immediately needed to assure the clients' health and welfare.

 

2)         In addition, the Department shall issue RFPs for service contracts (except for substitute care and day care) over $50,000 at least once every 6 years.  However, comprehensive community-based youth services provided through local boards or local service systems shall be reviewed once every 4 years in accordance with Department of Human Services' requirements found in 89 Ill. Adm. Code 334 (Administration and Funding of Community-Based Services to Youth).  When requests for proposals are issued, purchase of service providers shall submit a response in accordance with the RFP in order to be considered for contracts for the fiscal year specified.  When an RFP is not required, subsequent contracts may be negotiated and renewed at the Department's discretion without recourse to a RFP.  The Department will review such contracts in order to determine that the provider is complying with the provisions of the current contract and providing effective services that meet the needs of the Department's clients.

 

3)         When equal proposals for family preservation services have been submitted to the Department, not-for-profit corporations are to be given preference over for-profit corporations.

 

(Source:  Amended at 29 Ill. Reg. 8706, effective June 8, 2005)

 

Section 357.50  Issuance of Requests for Proposals

 

The Department shall ensure that RFPs are issued to current purchase of service contractors and issued in such a manner that the development of needed new services will be encouraged and that new purchase of service providers will be encouraged to submit proposals.  RFPs shall be advertised in the official newspaper in the State of Illinois as designated by the Department of Central Management Services or a local newspaper serving the geographical area covered by the RFP.  The Department shall also maintain a list of potential bidders and will mail RFPs to potential bidders.  A minimum of 30 days to respond to RFPs shall be allowed.

 

(Source:  Renumbered from Section 357.4 and amended at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.60  Content of Requests for Proposals

 

a)         Requests for proposals will be in writing and contain the necessary information to enable a prospective provider to prepare a proposal.  The RFP shall include:

 

1)         A description of the work to be performed.

 

2)         The submission process.

 

3)         The review process.

 

4)         General contract and bid information.

 

5)         Date, time and address of bidders' conference when applicable.

 

6)         The Department contact person.

 

b)         Requests for proposals will inform prospective providers of all evaluation factors and of the relative importance attached to each criterion.

 

(Source:  Renumbered from Section 357.5 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.70  Evaluation of Proposals

 

When deciding which applicant shall be awarded a contract, the Department shall consider the following factors:

 

a)         The type of services to be provided as described in the RFP;

 

b)         The target population for which their services are intended as described in the RFP;

 

c)         The experience and ability of the provider's staff as described in the RFP;

 

d)         The cost-effectiveness of the program;

 

e)         The acceptability of the service delivery model as described in the RFP; and

 

f)         The need for the service in that geographical area.

 

(Source:  Renumbered from Section 357.6 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.80  Notification of Awards

 

a)         After the evaluation of proposals has been completed, the Department will notify in writing the applicant(s) selected as well as those not selected.

 

b)         Upon written request of an unsuccessful applicant, the Department will describe the reasons for rejection.

 

(Source:  Renumbered from Section 357.7 at 21 Ill. Reg. 13160, effective October 1, 1997)

 

Section 357.90  Disclosure of Proposals

 

All proposals received pursuant to a request for proposal become the property of the Department.

 

(Source:  Renumbered from Section 357.8 at 21 Ill. Reg. 13160, effective October 1, 1997

 

Section 357.100  Contract Approval

 

Federal and State regulations authorize the Illinois Department of Children and Family Services to purchase service and care for eligible children and families from purchase of service providers.  Purchase of service providers shall meet the following prerequisites before a contract is approved:

 

a)         When licensure is required to provide the service, the purchase of service provider has obtained the necessary license or permit from the appropriate licensing authority to provide the specified services throughout the contract period.

 

b)         Except for individual foster care provider contracts and day care provider contracts, the purchase of service provider has submitted a detailed program plan that specifies and contains the following:

 

1)         the type and extent of services that will be provided.  The number of individual and/or family clients that may be served, and the number of hours or the number of days for which services are provided may be used to define the extent of services;

 

2)         the number and types of staff available to provide the specified services;

 

3)         the clientele for whom the services were designed;

 

4)         the provisions for recordkeeping and reporting as required by Department rules or the purchase of service contract;

 

5)         that the resources are sufficient to provide the service.  "Resources" include the following:

 

A)        facilities that are large enough to safely accommodate the clientele, which contain sufficient equipment and furniture to provide the services offered and that satisfy all public health and safety regulations and Department licensing requirements;

 

B)        staff who possess accepted professional standards of education and experience for their assignments; and

 

C)        administrative personnel with appropriate educational backgrounds and experience for their positions;

 

6)         a clause titled "billable service" that:

 

A)        clearly defines the billable unit of services such as:  hour, day, week or month;

 

B)        stipulates whether the provider will bill for client "no shows," travel, telephone conversations, canceled appointments, staffing and group sessions.

 

c)         The purchase of service provider has a plan to assure that minimal staffing levels, as may be required by child care facility licensing standards, and as specified in the contract, are maintained.

 

d)         The purchase of service provider shall submit documentation that the total Department reimbursement for administration costs, including personnel and other fixed and variable costs for administration do not exceed 20% of the cost of other reimbursable items.

 

e)         The purchase of service provider has submitted evidence of financial stability.

 

f)         The new purchase of service provider has submitted evidence of financial stability for the contract period including either letters of credit, statements of backing, or audited financial statements.

 

g)         The purchase of service provider has submitted a budget of anticipated expenditures based on the negotiated rate or the negotiated contract maximum, if a budget is required by the contract.

 

h)         The current purchase of service provider has submitted the required financial reporting documents in accordance with Section 357.120.

 

(Source:  Amended at 29 Ill. Reg. 8706, effective June 8, 2005)

 

Section 357.110  Compliance During the Contract Period

 

Purchase of service providers under contract to the Department must comply with Federal and State laws and regulations and Department rules.  When the provider signs the purchase of service contract, this signature shall be the provider's certification of compliance with the applicable laws, regulations and rules.

 

(Source:  Amended at 29 Ill. Reg. 8706, effective June 8, 2005)

 

Section 357.120  Fiscal Reports and Records

 

a)         Purchase of service providers shall furnish the Department with any required reports during the contract period in a manner specified in this Section. 

 

b)         When all of the contracts with one provider expire or terminate prior to the end of the fiscal year, the revenue and expense sections of the Department's cost report shall be submitted with an opinion from a certified public accountant.  This report and opinion shall be submitted within 30 days after the expiration or termination of the contract.

 

c)         Any purchase of service provider (with the exception of day care providers, unless they are involved in cost based rate negotiations authorized under 89 Ill. Adm. Code 356.30(a), and governmental agencies) who receives $150,000 or more from the Department within the State fiscal year shall submit an agency-wide certified independent audit using the requirements in this Section and in accordance with Government Auditing Standards, 2003 (no later amendments or editions included), available from the Government Accountability Office, 441 G Street, NW, Washington, DC 20548.

 

1)         All governmental and not-for-profit organizations must also consider federal audit guidelines and complete audits in accordance with the guidance specified in the Office of Management and Budget (OMB) Circular A-133 Audits of States, Local Governments, and Non-Profit Organizations, when required by A-133 to conduct an audit.  If required to prepare an audit in accordance with OMB Circular A-133, the audit must still contain the information listed in subsection (d).

 

2)         The Department may also request, at its sole discretion, certified agency-wide or limited-scope audits from any purchase of service providers (including day care providers and government entities) to ensure compliance with Federal, State and Department requirements.  All governmental entities audited by the Illinois Auditor General will submit those audits to the Department within 60 days after completion.

 

3)         The audits for all entities must be completed within 180 calendar days after the completion of the provider's fiscal year.

 

4)         A waiver of the certified audit requirement may be requested in writing and directed to the Department’s Deputy Director of Monitoring and Quality Assurance.  The request must state the reason for the waiver and shall be submitted prior to the due date of the report.

 

5)         A request for an extension of the deadline for submittal of the audit and/or costs report beyond the time frame specified in subsection (c)(3) must be submitted in writing to the central office manager responsible for the administration of the reimbursement rates and excess revenue by the required due date in subsection (c)(3).

 

6)         The Department will respond to the requests for waivers or extensions within 30 business days, specifying approval or rejection of the waiver or extension.  Waivers are approvable if the cost to the provider outweighs the benefit of the requirement.  Extensions beyond 60 calendar days are approvable when circumstances beyond the agency's control prevent a timely submission (e.g., death, hospitalization or a change at the agency) or when a further extension from another State or federal agency requiring the same reports has been granted.

 

d)         The agency-wide certified independent and OMB A-133 audit report submission shall contain the following information:

 

1)         Independent Auditor's Report – an expression of the auditor's opinion on the financial statement;

 

2)         Statement of Financial Position (balance sheet);

 

3)         Statement of Activities – a statement of revenue and expenses and changes in net assets.  This statement should specifically identify revenue received for the Department's programs.  The cost of management and general expenses should be shown;

 

4)         Statement of Cash Flows;

 

5)         Statement of functional expenses for the agency, including management and general expenses and fundraising expenses.  This schedule should show by functional and natural classifications the expenses for each individual program to enable identification of costs covered by Department funding;

 

6)         Notes to the financial statements, including, but not limited to, a note on the basis of accounting and the basis for recording and method for depreciation of assets;

 

7)         Reports on Compliance and Internal Controls Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and

 

8)         A management letter from the certified independent audit firm that specifies those accounting and internal control deficiencies that merit attention.

 

e)         Limited scope audits will be requested in the contract program plan and defined for each situation.  The audit report shall include the objectives, scope and methodology; the audit results, including findings, conclusions, and recommendations, as appropriate; a reference to compliance with generally accepted government auditing standards, as necessary; the views of responsible officials; and, if applicable, the nature of any privileged and confidential information omitted.  Reports shall be received within the time frames specified in the contract.

 

f)         Cost and Audit Reports are necessary to evaluate the costs for all provider services.  Unless the Department determines that circumstances do not warrant the following action, noncompliance with the fiscal reporting requirements included in this Part and the cost reporting requirements in accordance with 89 Ill. Adm. Code 356.40 (Cost Information Requirements of Providers) will result in:

 

1)         withholding of rate increases; or

 

2)         non-renewal or termination of the purchase of service contract; or

 

3)         withholding of current contract payments in full or in part for services provided.  Such withholding of payments will occur 60 days after the provider has received written notice from the Director of the Department.

 

(Source:  Amended at 31 Ill. Reg. 7616, effective May 31, 2007)

 

Section 357.130  Required Documentation

 

a)         Purchase of service providers shall maintain financial records for 5 years from the expiration or termination of each contract.  The Department reserves the right to inspect all purchase of service provider records that relate to services for which the Department provides funding.  These records shall be kept in accordance with generally accepted accounting principles.  The records must be detailed and accurate enough to document the reasons for a decision, the ways monies were spent, and the beneficiaries of income, goods, and services.  Such required recordkeeping shall include but not be limited to:

 

1)         establishment of financial recordkeeping which includes:

 

A)        Cash Receipts Journal

 

B)        Cash Disbursements Journal

 

C)        General Journal

 

D)        General Ledger

 

E)        All cash disbursements and/or expenses, fully supported by documentation, such as invoices, time sheets, time studies, or approved cost allocation plans

 

F)         Revenue and expenses by program

                       

2)         establishment of programmatic compliance recordkeeping that includes:

 

A)        individual client files on each client applying for and receiving service;

 

B)        schedule of service provided to each client that includes the date and time service was provided and the agency's employee providing service;

 

b)         Purchase of service providers shall maintain individual client records for clients for whom services were purchased by the Department 5 years from the date services are terminated.  Individual client records shall contain:

 

1)         the original referral from the Department or in the case of funded day care facilities the documentation of need for services if it was the provider's responsibility to gather it or if the Department submitted it to the provider;

 

2)         documentation that supports Title IV-E and XIX (42 CFR 431) eligibility determinations, redeterminations, court orders, and court findings regarding reasonable effort (i.e., effort to prevent placement or that effort was not possible) as appropriate, if it was the provider's responsibility to gather it or if the Department submitted it to the provider;

 

3)         documentation that supports the need for child protective services if it was the provider's responsibility to gather it or if the Department submitted it to the provider;

 

4)         documentation of the service planning goals established within required timeframes, when the case was opened and the changes made in the service planning goals as the client's needs changed;

 

5)         documentation of the child and family's progress or lack of progress toward achieving the service planning goals including the social service worker's or other responsible employee's reports and official records regarding the child and family's cooperation in meeting service planning goals;

 

6)         basic client social history data and updates, as necessary, if it was the provider's responsibility to gather it or if the Department submitted it to the provider; and

 

7)         any other documentation specifically required in the purchase of service contract.

 

c)         Purchase of service providers shall maintain personnel records of all employees who provide direct or supportive services to Department clients.  Personnel records shall be maintained on each employee for 5 years after the termination of employment.  The following information shall be maintained:

 

1)         proof of educational background including high school or college transcripts or a copy of the diploma; or, if the employee has attended a training program, documentation of the employee's completion of the program;

 

2)         detailed summary of the employee's work experience;

 

3)         at a minimum, yearly employee performance evaluations;

 

4)         payroll data, including salary, accrued vacation and sick days, records of when vacation and sick days were taken, and travel expense records; and

 

5)         documentation that a background check was completed for each employee in accordance with 89 Ill. Adm. Code 385 (Background Checks).

 

(Source:  Amended at 31 Ill. Reg. 7616, effective May 31, 2007)

 

Section 357.140  Contract Termination

 

a)         The Department of Children and Family Services and the purchase of service provider reserve the right to terminate a purchase of service contract at any time upon provision of 30 days written notice to the other party. However, if either party fails to comply with the terms of the contract, the contract may be terminated by the other party effective upon the date of written notice of termination.

 

b)         The Department shall not be liable for payment for service provided after the contract termination date or after the last child for whom the Department is making payment is removed from the provider's care, whichever is later. The Department is also not liable for any payments to individuals or entities for which the purchase of service provider is contractually obligated.

 

c)         The purchase of service provider shall return to the Department all funds received from the Department that are in excess of actual costs of providing the contract services that were delivered before the contract was terminated.

 

d)         Upon expiration or termination of the contract, any building and equipment meeting the following two conditions shall be identified to the Department within 90 days and returned subject to final disposition decision:

 

1)         exceeding $1,500 in value at the time of purchase with a useful life of 3 years; and

 

2)         purchased directly with Department funds and not included in an acceptable cost allocation plan.

 

(Source:  Amended at 29 Ill. Reg. 8706, effective June 8, 2005)