DATE:

DATE:

01/27/03

SUBJECT: FINAL READING ORDINANCE NO. 2003-O-020

Authorizing the City Manager to amend the FY 2002-2003 budget by appropriating revenues and expenditures in the amount of $52,931 for the Medicaid Administrative Cost (MAC) Project of the City of Laredo Health Department for the period beginning October 1, 2002, through September 30, 2003. This amount includes program surplus funds from FY 2002 in the amount of $34,537 and funding in the amount of $18,394, which was received in the current fiscal year.

INITIATED BY: STAFF SOURCE:

Cynthia Collazo Hector F. Gonzalez, M.D., M.P.H.

Asst. City Manager Health Director

PREVIOUS COUNCIL ACTION: On January 13, 2003, Council held public hearing introducing ordinance and instructing staff to proceed with final reading.

BACKGROUND:

The Texas Department of Health (TDH) provides funding to the City of Laredo Health Department (CLHD) no less than 95% of the Title XIX federal share of actual and reasonable costs for Medicaid administration costs provided by its staff or by staff in agencies with which it has subcontracted for administrative activities for the agreement. These costs are based upon a time accounting system which is in accordance with provisions of the OMB Circular A-87 and 45 CFR Parts 74 and 95, as well as, the expense and equipment costs necessary to collect data, disseminate information and carry out the staff functions outlined in this agreement.

The City of Laredo, in turn, performs or coordinates its subcontractor’s performance of Medicaid administrative activities on behalf of the TDH to improve the availability, accessibility, coordination and appropriate utilization of preventive and remedial health care resources to Medicaid eligible clients and their families.

The CLHD (1) accounts for the activities of staff providing these services, (2) submits its claim for reimbursement on a standardized invoice which will be provided to TDH by the Commission, (3) provides quarterly reports of claims submitted to the Commission, or its designee, in a timely manner, (4) spends federal match dollars generated from Medicaid administrative activities for health-related services for clients, and (5) designates an employee to act as liaison with TDH for issues concerning this agreement.

According to the agreement between agencies, reimbursed funds generated from Medicaid Administrative Claims activities may only be used for health related services for clients. The contract also specifies that an annual cost report is required that shows how MAC funds were spent.

Allowable expenditures are costs associated with the implementation of the MAC project, costs associated with the addition of direct service staff to clients, or for expansion of health services to clients.

BUDGET ON NEXT PAGE

FINANCIAL: The City of Laredo Health Department received $52,931 for Medicaid Administrative Costs reimbursements. The revenue account is 226-0000-373-2028 and expenditure account division is 226-6500.

RECOMMENDATIONS:

STAFF: Recommends that Council approve ordinance.

ORDINANCE 2003-O-020

WHEREAS, the Texas Department of Health (TDH) provides funding to the City of Laredo Health Department (CLHD) no less than 95% of the Title XIX federal share of actual and reasonable costs for Medicaid administration costs provided by its staff or by staff in agencies with which it has subcontracted for administrative activities for the agreement. These costs are based upon a time accounting system which is in accordance with provisions of the OMB Circular A-87 and 45 CFR Parts 74 and 95, as well as, the expense and equipment costs necessary to collect data, disseminate information and carry out the staff functions outlined in this agreement; and

WHEREAS, the City of Laredo, in turn, performs or coordinates its subcontractor’s performance of Medicaid administrative activities on behalf of the TDH to improve the availability, accessibility, coordination and appropriate utilization of preventive and remedial health care resources to Medicaid eligible clients and their families; and

WHEREAS, the CLHD (1) accounts for the activities of staff providing these services, (2) submits its claim for reimbursement on a standardized invoice which will be provided to TDH by the Commission, (3) provides quarterly reports of claims submitted to the Commission, or its designee, in a timely manner, (4) spends federal match dollars generated from Medicaid administrative activities for health-related services for clients, and (5) designates an employee to act as liaison with TDH for issues concerning this agreement; and

WHEREAS, According to the agreement between agencies, reimbursed funds generated from Medicaid Administrative Claims activities may only be used for health related services for clients. The contract also specifies that an annual cost report is required that shows how MAC funds were spent. Allowable expenditures are costs associated with the implementation of the MAC project, costs associated with the addition of direct service staff to clients, or for expansion of health services to clients.

NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

Section 1: Revenue line item 226-0000-373-2028 funded by the Texas Department of Health is increased from $0 to $52,931.

Section 2: Expenditure line item 226-6500 is increased from $0 to

$52,931.

Section 3: The City Manager is hereby authorized to make transfers

within the budget as allowable under the General Provisions

of the existing general contract with the Texas Department of

Health to meet the necessary costs to accomplish the scope

of work for the project.

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR

ON THIS _________________ DAY OF ________________________, 2003.

_________________________

ELIZABETH G. FLORES

MAYOR

ATTEST:

_________________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

APPROVED AS TO FORM:

______________________

JAIME FLORES

CITY ATTORNEY