DCF 54.07(2) (2) A child-placing agency shall charge all Wisconsin public purchasers the same rate for the same services.

DCF 54.07 History History: EmR1106: emerg. cr., eff. 9-16-11; CR 11-026: cr. Register December 2011 No. 672, eff. 1-1-12.

DCF 54.08 DCF 54.08 Allowable costs. In determining rates under this subchapter, the department may consider costs incurred for any purpose that is allowable under all of the following:

DCF 54.08(1) (1) Applicable federal regulations, including 2 CFR Part 200, 45 CFR Part 75, and 48 CFR Part 31, except as provided in sub. (2).

DCF 54.08(2) (2) Reserves or profit as allowed under the following:

DCF 54.08(2)(a) (a) For nonprofit corporations, reserves allowed under s. 49.34 (5m) (b) 1., Stats.

DCF 54.08(2)(b) (b) For proprietary child-placing agencies, profit allowed on an annual basis is the smaller amount determined under the following 2 methods of calculating profit:

DCF 54.08(2)(b)1. 1. The equity method is the sum of 7.5 percent of allowable operating costs plus 15 percent of average net equity for the year. In this subdivision, “average net equity” means the average cost of equipment, buildings, land, and fixed equipment minus the average accumulated depreciation and average long term liabilities for the year.

DCF 54.08(2)(b)2. 2. The expenses method is 10 percent of allowable operating costs for the year.

DCF 54.08 Note Note: Further explanation is available in the department’s Allowable Cost Policy Manual, which is available in the Partner Resources/Grants and Contract Administration section of the department’s website at http://dcf.wisconsin.gov.

DCF 54.08 History History: EmR1106: emerg. cr., eff. 9-16-11; CR 11-026: cr. Register December 2011 No. 672, eff. 1-1-12; CR 20-003: am. (1), (2) (a) Register July 2020 No. 775, eff. 8-1-20.

DCF 54.09 DCF 54.09 Rate methodology.

DCF 54.09(1) (1) Cost And service information. Each year by July 1, a licensee shall submit the following information to the department:

DCF 54.09(1)(a) (a) A cost and service report in which the licensee reports the child-placing agency’s costs, types of services provided, and number of children served in the previous year for services provided for foster homes with a Level 3 or 4 certification. The report shall be submitted on a department-prescribed form.

DCF 54.09 Note Note: The cost and service report form is available on the department website, http://dcf.wisconsin.gov, by clicking on foster care and adoption/child welfare licensing/rate regulation.

DCF 54.09(1)(b) (b) The child-placing agency’s most recent audit report under s. DCF 54.06 (8) (a).

DCF 54.09(2) (2) Maximum allowable rate. Each year no later than September 1, the department shall notify licensees of the per client administrative rate that no child-placing agency may exceed for services provided in the following calendar year.

DCF 54.09(3) (3) Proposed rates.

DCF 54.09(3)(a) (a) Each year no later than October 1, a licensee shall submit to the department a proposed rate for the following calendar year for each child-placing agency program that the licensee operates. The licensee shall submit the proposed rate on a department-prescribed form.

DCF 54.09(3)(b) (b) A licensee may request an exception to the department’s maximum rate under sub. (2) if the licensee provides a specialized service or specialized programming to a specific population of children. The exception request shall explain the benefits of the service or programming and why the licensee cannot provide the service or programming within the maximum rate. The exception request shall be made on the rate request form.

DCF 54.09 Note Note: The rate request form is available at https://dcf.wisconsin.gov/ratereg.

DCF 54.09(4) (4) Review of a proposed rate. In reviewing a proposed rate submitted by a licensee under sub. (3), the department shall consider all of the following:

DCF 54.09(4)(a) (a) Whether the proposed rate exceeds the maximum rate determined by the department under sub. (2).

DCF 54.09(4)(b) (b) The child-placing agency’s most recent cost and service report under sub. (1) (a).

DCF 54.09(4)(c) (c) The child-placing agency’s most recent audit report under sub. (1) (b).

DCF 54.09(4)(d) (d) Whether the child-placing agency’s reported costs are within a range of similar costs reported by other child-placing agencies for similar items and services.

DCF 54.09(4)(e) (e) The child-placing agency’s per client administrative rate in previous years.

DCF 54.09(4)(f) (f) Changes in the consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, for the 12 months ending on June 30 of the year in which the proposed rate is submitted.

DCF 54.09(4)(g) (g) Changes in the consumer price index for all urban consumers, U.S. city average, for the medical care group, as determined by the U.S. department of labor, for the 12 months ending on June 30 of the year in which the proposed rate is submitted.