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Penalties for Late Consolidated Fiscal Reports

Do you receive payments from the New York State Office for People With Developmental Disabilities (OPWDD), Medicaid payments from the NYS Office of Mental Health (OMH), or the NYS Office of Alcoholism and Substance Abuse Services (OASAS)?

If so, you’ll want to investigate late filing penalties association with Consolidated Fiscal Reports (CFR).

 

In the November MP&S Nonprofit Alert from Marks Paneth & Shron, the following was reported:

 

The New York State Office for People With Developmental Disabilities (OPWDD) is planning to implement a 2% penalty for late submission of the Consolidated Fiscal Report (CFR).  A not-for-profit service provider’s reimbursement will be cut by 2% and the rate will be restored only upon submission of the CFR.  There will be no refund on the money lost during the overdue period.

According to the New York State Consolidated Fiscal Reporting and Claiming Manual, all service providers must submit their completed CFR to the applicable State funding agencies not later than 120 days after the end of the reporting period.  If an extension is submitted, the due date is not later than 150 days after the end of the reporting period.  An extension request must be electronically submitted.  For example, a June 30, 2011 CFR, with an extension is due on December 1, 2011.  Late submissions of a CFR, including all certifications and attachments, may result in a sanction or penalty being imposed against the service provider.

Providers who receive Medicaid payments from the NYS Office of Mental Health (OMH) relative to certified program services can have their payments temporarily withheld up to 20% for the first month under sanction.  Such reductions will be increased in each subsequent month by 10% until the CFR is submitted.  Providers who receive payments under contract with OMH can have their entire quarterly payments withheld until a satisfactory submission has been received.

Similarly, the NYS Office of Alcoholism and Substance Abuse Services (OASAS) can impose sanctions for late filing of the CFR as prescribed in OASAS Local Services Bulletin 2001-05.

The current regulations allow OPWDD to withhold up to 5%

of the revenue in certain programs; however, it was not strictly enforced.  Now OPWDD is planning to impose a sanction of 2% on all programs.  Originally, OPWDD planned to implement a 10% cash hold-back policy on all programs but that proposal was rejected.

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