Code of Massachusetts Regulations › 808 CMR - DIVISION OF PURCHASED SERVICES › Title 808 CMR 1.00 - Compliance, Reporting And Auditing For Human And Social Services › Section 1.06 - Price Authorization for M.G.L. c. 71B Approved Private School Programs

Current through Register 1525, July 5, 2024
808 CMR 1.06 sets forth the eligibility and procedural requirements applicable to M.G.L. c. 71B Approved Private School Programs seeking Massachusetts approved prices. 808 CMR 1.06 does not limit the prices a Contractor may charge to other purchasers of a Program, however, pursuant to 808 CMR 1.03(4)  no price authorized under 808 CMR 1.06 may exceed the lowest price charged by a Contractor to other purchasers of the Program. In the calculation of an Authorized Price for an M.G.L. c. 71B Approved Private School Program, OSD shall not apply unrestricted funds or unrestricted revenue not specifically designated for such calculation by the Contractor. Any voluntary use of unrestricted funds or unrestricted revenues shall be governed by an annual written agreement between the Contractor and OSD. Any price authorization made as a result of such a written agreement shall not extend beyond June 30th of the Fiscal Year for which the price is authorized.
(1)
Annual Price Authorization for Approved Private School Programs Located within the Commonwealth
.
(a)
Eligibility for a Price Increase
. In order for an Approved Private School Program to be eligible for an increase to its currently Authorized Price, the Contractor must have filed a UFR or appropriate documentation of exemption for the designated Base Year in accordance with 808 CMR 1.04 or predecessor regulation and the instructions to the UFR.
(b)
Price Determination for Eligible Programs
. If a Program has been determined to be eligible for a price increase in accordance with 808 CMR 1.06(1)(a), OSD may establish a subsequent year price for the Program by adding a per student annual adjustment amount to the current Authorized Price as follows:
1. Where the Program's Authorized Price has been calculated pursuant to 808 CMR 1.06(3) or recalculated pursuant to 808 CMR 1.06(4) or predecessor regulation as a result of a revision by ESE of the Programs approved staffing and other components since the Base Year, the per student annual adjustment amount will be determined by multiplying the current Authorized Price by a percentage factor, as determined on an annual basis by OSD, which reflects adjustments to employee compensation.
2. Except as provided in 808 CMR 1.06(1)(b)1., the per student annual adjustment amount will be determined by multiplying the current Authorized Price by a percentage factor, as determined on an annual basis by OSD.
3. Unless otherwise provided in 808 CMR 1.06, the price as determined in 808 CMR 1.06(1)(b)1. or 2. will be the annual price authorized for the subsequent Fiscal Year.
(c)
Price Determination for Other Programs
. If a Program does not satisfy the criteria for a price adjustment under 808 CMR 1.06(1)(a), OSD will authorize a price for the Program equal to the current Program price, unless otherwise provided in 808 CMR 1.06.
(d)
Additional Price Adjustments
.
1.
Adjustments to Account for Surplus Revenues and Audit Findings
. Where a Contractor has accumulated a surplus in the Base Year in excess of the limitations contained in 808 CMR 1.03(7), or an audit of the Program by the Office of the State Auditor has determined that Program funds are subject to recoupment or OSD has determined that Department funds have been expended by the Program on nonreimbursable costs, OSD may adjust the Program price to recoup such excess surplus or inappropriate expenditures. Such adjustments may reduce the base upon which future years' prices are determined.
2.
Adjustments for Failure to Comply with Audit Requirements
. OSD will rescind any price increase authorized under 808 CMR 1.06 and will adjust the Authorized Price accordingly if, by June 1st:
a. the Contractor has failed to correct UFR filing deficiencies identified by OSD; or
b. OSD has not received a corrective action plan incorporated into an administrative agreement which has been prepared and signed in accordance with the OSD Audit Resolution Policy relative to material and reportable internal control and compliance findings contained in its UFR for the Base Year.
(e)
Adjustments to Reflect Price Increases Due to Extraordinary Circumstances
. The Program price authorized under 808 CMR 1.06(1) may be prospectively adjusted for increases subsequently granted under 808 CMR 1.06(4), however any adjusted price shall not exceed the greater of the price authorized under 808 CMR 1.06(1), or that granted under 808 CMR 1.06(4).
(f)
Annual Adjustment Limitation
. No price authorized under 808 CMR 1.06(1) except a price authorized under 808 CMR 1.06(1)(e) may exceed the price in effect for the current Fiscal Year plus the annual adjustment percentage determined annually by OSD.
(g) Prices authorized pursuant to 808 CMR 1.06(1) will be authorized on or before the first Wednesday in February of each year and shall become effective on July 1st following authorization.