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Old 01-12-2017, 11:07 AM
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littlesteps littlesteps is offline
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Question DHS-State Subsidy Audit Repayment

Hello so i had Michigan DHS run a audit on my back in Nov 2015 and just now last week of December 2016 they sent back a letter stating that i had to refund back $13,000+ on 6 families that had attended my center for over a year. Now these families are some of the ones i had terminated and sent out to collections company for non payment.

I'm guessing DHS send out letters to all my parents with assistance and they respond what ever they like and believe them like a parent that sent a hand written letter signed stating her kids never attended my center even if i send out attendance records for almost 2 years. Ive been emailing with one parent stating that they are responsible for that money now since the state said "never mind we want our money back", she said she not paying and threatening to call state on my center if i send her again to collections.

I'm in a HUGE limbo i don't want to pay this amount of money back for services i gave these parents that threaten to call state on me if i keep charging them and then DHS dont care to hear or read what the parents tell me other than just recouping that money back.

Any advise or any one had something similar like this?
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Old 01-12-2017, 12:13 PM
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I am confused. Why are you responsible for any of it? Did the parents defraud the state?
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Old 01-12-2017, 01:35 PM
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Blackcat31 Blackcat31 is offline
 
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Quote:
Originally Posted by littlesteps View Post
Hello so i had Michigan DHS run a audit on my back in Nov 2015 and just now last week of December 2016 they sent back a letter stating that i had to refund back $13,000+ on 6 families that had attended my center for over a year. Now these families are some of the ones i had terminated and sent out to collections company for non payment.

I'm guessing DHS send out letters to all my parents with assistance and they respond what ever they like and believe them like a parent that sent a hand written letter signed stating her kids never attended my center even if i send out attendance records for almost 2 years. Ive been emailing with one parent stating that they are responsible for that money now since the state said "never mind we want our money back", she said she not paying and threatening to call state on my center if i send her again to collections.

I'm in a HUGE limbo i don't want to pay this amount of money back for services i gave these parents that threaten to call state on me if i keep charging them and then DHS dont care to hear or read what the parents tell me other than just recouping that money back.

Any advise or any one had something similar like this?
This is taken directly from the CDC (Child Development and Care) handbook:

"Licensed and registered providers are not required to use the CDC Daily Time and Attendance Record,
but must maintain records showing the:
*Child(ren)’s full name.
*Dates for each day you cared for the children or billed for absence hours during the pay period.
*Daily care begin time and daily care end time for each child.
*You and the parent must certify the daily attendance records are accurate.

You must sign your time and attendance records.
The parent must sign or initial daily to show that they agree with the information on the time and attendance records, including absence hours.

It is recommended that licensed and registered providers also include the child(ren)’s age, pay period
number, and provider ID.
IMPORTANT: You must provide information to the Department when asked. You may have to
return Department payments and may be disqualified if an audit or investigation finds you do not have the time and attendance records requested by the Department."


If you have that ^^ paperwork/signatures/attendance logs verifying everything you billed for I don't understand why you are being charged with an over payment?
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Old 01-12-2017, 01:36 PM
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Cat Herder Cat Herder is offline
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Did you keep billing after they were no longer in care? Did you follow their termination policy?

I do know that if they decide that you did not follow the guidelines that made you eligible to receive federal funds, they will demand reimbursement.

I'd talk to an attorney. ASAP
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Old 01-13-2017, 05:10 AM
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284878 284878 is online now
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Quote:
Originally Posted by Blackcat31 View Post
This is taken directly from the CDC (Child Development and Care) handbook:

"Licensed and registered providers are not required to use the CDC Daily Time and Attendance Record,
but must maintain records showing the:
*Child(ren)ís full name.
*Dates for each day you cared for the children or billed for absence hours during the pay period.
*Daily care begin time and daily care end time for each child.
*You and the parent must certify the daily attendance records are accurate.

You must sign your time and attendance records.
The parent must sign or initial daily to show that they agree with the information on the time and attendance records, including absence hours.

It is recommended that licensed and registered providers also include the child(ren)ís age, pay period
number, and provider ID.
IMPORTANT: You must provide information to the Department when asked. You may have to
return Department payments and may be disqualified if an audit or investigation finds you do not have the time and attendance records requested by the Department."


If you have that ^^ paperwork/signatures/attendance logs verifying everything you billed for I don't understand why you are being charged with an over payment?
Hmm. I wonder about this too.


The attendance logs with signatures are required by the state in the first place and we are required to keep records on all children for years (I can't remember how many).

MI CDC has changed how they do things several times in the past few years, including changes in 2016. Basically been revamping.


Since op referred to being a center, I will assume she is a center and not a home daycare, centers have different rules/ guidelines than family home daycare or group home daycare in both state and CDC.

OP -
I would think that any letter from the state would list what the reasoning is for the return of the money. Does the letter explain why?

Can you explain more on why you needed to send a CDC client that you termed to collections? (I ask because their portion is supposed to be relatively small)
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