Letter No. 05-93
Medical Care Facility Intergovernmental
Transfer/Proportionate Share Reimbursement
May 10, 1993
TO: Medical Care Facility Administrators, Chairperson
of Social Services Board and County Treasurers of
Counties Operating Medical Care Facilities
FROM: Richard L. Baldermann, CPA
Administrator
Local Audit and Finance Division
RE: Accounting for Medicaid Payment--Intergovernmental
Transfer, Proportionate Share Reimbursements
and Management Fee
On or about July 20, 1993, you will receive a wire transfer of money
for your county medical care facility's (MCF) allocation of the Proportionate
Share Reimbursement. You are required to immediately wire transfer 97.66359%
(intergovernmental transfer) of the amount you received to NBD for deposit
into the State of Michigan account. In addition, you will, by separate
wire, transmit an Intergovernmental Transaction Management Fee of .01083
percent (decimal equivalent .0001083) of the total received, to another
financial institution. You will be mailed detailed instructions for the
wire transfers in a separate memo prior to July 20th.
Upon notification of receiving the wire transfer and after your wire
transfers of the 97.66359% Intergovernmental Transfer to the State at NBD
and the .01083% Intergovernmental Transaction Management Fee, the following
journal entries will be required to record these transactions:
County General Ledger--Medical Care Facility Fund:
291-000-001 Cash XXX
291-000-400 Revenue Control XXX
To record the MCF's receipt of the wire transfer of the Proportionate
Share Reimbursement.
291-000-700 Expenditure Control XXX
291-000-001 Cash XXX
To record the wire transfers of the MCF's Intergovernmental Transfer
Payment and Management Fees to the financial institutions.
Medical Care Facility Accounting Records:
291-671.01-001
Cash XXX
291-671.01-400/678 Revenue-Proportionate Share
Reimbursement XXX
To record the receipt of the Proportionate Share Reimbursement.
291-671.01-700/958 Expenditure-Intergovernmental
Transfer Payment XXX
291-671.01-700/959 Expenditure-Intergovernmental
Transaction Management Fee XXX
291-671.01-001
Cash XXX
To record the Intergovernmental Transfer payment to the State and the
Intergovernmental Transfer Management Fee.
Following are descriptions for the newly assigned revenue and expenditures
accounts for Medical Care Facilities.
If you have any questions, please call (517) 373-3227 or write Michigan
Department of Treasury, Local Audit and Finance Division, P.O. Box 30728,
Lansing, Michigan 48909-8228.
05/04/93
UNIFORM ACCOUNTING PROCEDURES MANUAL FOR COUNTY MEDICAL CARE FACILITIES
CHAPTER 3
| 678 |
PROPORTIONATE SHARE REIMBURSEMENT
-- This revenue account is used to record the county medical care facility's
receipt of the Proportionate Share Reimbursement from the State. |
| |
This account is: |
|
| |
DEBITED-- |
with any adjustments, and when closing
this account to fund balance or other equity account. |
| |
CREDITED-- |
with the collections described above. |
| |
NOTE: |
The revenue reported in this account
is not deducted or used as an offset when computing the Medicare/Medicaid
daily patient cost of care reimbursement rate. |
| 958 |
INTERGOVERNMENTAL TRANSFER
-- This account is used to record the county medical care facility's 97.66359%
of the Proportionate Share Reimbursement as an Intergovernmental Transfer
to the State. |
| |
This account is: |
| |
DEBITED-- |
with the amount of the Intergovernmental
transfer. |
| |
CREDITED-- |
with any adjustments, and when closing
this account to fund balance or other equity account. |
| |
NOTE: |
This expenditure is not included
with the regular operating expenditures of the facility that are accumulated
for computing the Medicare/Medicaid cost reporting procedures for the daily
patient care reimbursement rate. Intergovernmental Transfer payments are
to be reported within the other section of the facility's financial reports
along with the adjustments for depreciation and/or maintenance of effort.
(MOE) |
| 959 |
INTERGOVERNMENTAL TRANSACTION
MANAGEMENT FEE -- This account is used to record the county medical
care facility's .01083% of the Proportionate Share Reimbursement as the
facility's management fee for the Intergovernmental Transfer. |
| |
This account is: |
| |
DEBITED-- |
with the amount of the Intergovernmental
Transaction Management Fee. |
| |
CREDITED-- |
with any adjustments, and when closing
this account to fund balance or other equity account. |
| |
NOTE: |
This expenditure is not included
with the regular operating expenditures of the facility that are accumulated
for computing the Medicare/Medicaid cost reporting procedures for the daily
patient care reimbursement rate. Intergovernmental Transactions Management
Fees are to be reported within the other section of the facility's financial
reports along with the adjustments for depreciation and/or maintenance
of effort. (MOE) |
MICHIGAN ASSOCIATION OF COUNTIES
935 North Washington Avenue
Lansing, Michigan 48906
517/372-5374 FAX: 517/482-4599
TO: County Treasurers with Medical Care Facilities,
Medical Care Facility Administrators and Social Services
Board Members
FROM: Ann K. Beaujean, Senior Legislative Coordinator
DATE: May 10, 1993
RE:
Fiscal Year 1992-93 Medicaid Intergovernmental
Transfer
Over the last few months, the Michigan Association of Counties has been
working cooperatively with representatives of the Department of Management
and Budget to implement a Medicaid Intergovernmental Transfer program for
county medical care facilities (MCF) and hospital long term care units
(HLTCU). The program, which has its legal foundation in the fiscal year
1992-93 Social Services Budget Act, will help Michigan avoid dramatic budget
reductions by maximizing Federal Medicaid matching revenues. In a few simple
wire transfers, your county MCF and HLTCU, which are Class III providers,
will realize a significant financial benefit.
The program, as proposed, will run in the following fashion. On approximately
July 1, 1993, Michigan will request Federal Medicaid matching funds for
$122,362,900 in State Medicaid spending. The Federal government will then
forward $154,726,900 to Michigan in the form of Federal Medicaid match.
When this revenue is received, the State of Michigan will have a total
of $277,089,800 to make proportionate share payments to Class III providers.
On or about July 20, 1993, the State of Michigan will then wire transfer
$277,089,800 of proportionate share payments into the accounts of 45 Class
III Medicaid providers based on their 1991 Medicaid days. The linked
spread sheet outlines the facilities and their corresponding payment
levels.
Using Allegan County as an example, on or about July 20, 1993, the State
will wire transfer a proportionate share payment to the Allegan County
Medical Facility of $3,309,229. The county treasurer will book this payment
into the MCF account as outlined in the enclosed May 10, 1992 treasury
memo from Richard L. Baldermann. Upon receipt, the Allegan County treasurer
will then initiate two outgoing wire transfers. In Allegan County's case,
the first wire will be an intergovernmental transfer to the State of Michigan
for $3,231,912. A second wire transfer of $358 would then be made to a
second account to cover transaction management fees. In three simple wire
transfers, Allegan County Medical Care Facility will receive $76,959.
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