State of Indiana State of Indiana

Child Care Development Fund Electronic Time and Attendance - Payment System

Indiana’s CCDF HistoryIndiana’s CCDF History

Late 90’s – Contracted, locally controlledLate 90’s – Contracted, locally controlled

““Voucher Agents” determined eligibility, enrolled providers, AND paid Voucher Agents” determined eligibility, enrolled providers, AND paid providers. All data sent to state from 3 different software systems providers. All data sent to state from 3 different software systems through bi-weekly extractsthrough bi-weekly extracts

2001 – Agency began planning for new business structure2001 – Agency began planning for new business structure

Separation of eligibility and payment Separation of eligibility and payment

Contracted, but state controlledContracted, but state controlled

Web based systems were desiredWeb based systems were desired

2003 – Completed rollout of web based intake system2003 – Completed rollout of web based intake system

2004 – Completed rollout of electronic, time/attendance system2004 – Completed rollout of electronic, time/attendance system

Indiana Child Care Indiana Child Care

EnvironmentEnvironment• Absence of direct contracts with providers (other states do have)

• Varying types of care (approx. numbers)License Centers (620) Licensed Home (2,500)

Registered Ministries (640) Contract Centers (60)Home Exempt (2-5000) Center Exempt (3-500)

• “Minimum Standards” Statute – requirements to receive CCDF payments

• $142 Million direct service budget • 17,000 families; 33,000 children

Electronic System RationaleElectronic System Rationale

Goals:Goals:EliminateEliminate paper based voucher systempaper based voucher systemReduce potential for fraud and wasteReduce potential for fraud and waste

Increase program dollarsIncrease program dollars

Also Get:Also Get:More accurate time and attendance dataMore accurate time and attendance data

More accurate provider payments – pay only for actual More accurate provider payments – pay only for actual services renderedservices rendered

More accurate financial controls More accurate financial controls

ACCOUNTABILITY!!ACCOUNTABILITY!!

Other BenefitsOther Benefits

Real time informationReal time information

ExpendituresExpenditures Provider ActivityProvider Activity

Case activityCase activity Multiple reporting layersMultiple reporting layers

Monitoring from central officeMonitoring from central office

No paper checks in mailNo paper checks in mail

Promote parental self-sufficiency goalsPromote parental self-sufficiency goals

Identify underused dollarsIdentify underused dollars

In a nutshell, what is it?In a nutshell, what is it?

The electronic capturing child care services rendered The electronic capturing child care services rendered using “commercial” using “commercial” stylestyle environment environmentPOS – Point of Service vs. Point of SalePOS – Point of Service vs. Point of SaleMagnetic Stripe Card – like your debit cardMagnetic Stripe Card – like your debit cardIn our system – the card currently has no value – time in In our system – the card currently has no value – time in and time outand time outAttendance recorded each 2 week service period is used Attendance recorded each 2 week service period is used to calculate payment due to providerto calculate payment due to providerPayments made bi-weekly, via ACH direct deposit Payments made bi-weekly, via ACH direct deposit The two systems (eligibility and T/A-Payment “talk to The two systems (eligibility and T/A-Payment “talk to each other” – file interfacing. each other” – file interfacing.

Main PreparationsMain Preparations

Coding of current Indiana business rules. Coding of current Indiana business rules. System had to enforce those.System had to enforce those.

System interfacing between eligibility and T/A-System interfacing between eligibility and T/A-Payment system – file transfers, acceptancePayment system – file transfers, acceptance

Training – State personnel, all providers and Training – State personnel, all providers and clients in “waves”. Now done one-to-one as clients in “waves”. Now done one-to-one as participants are added to the programparticipants are added to the program

System rolled out geographically in waves after System rolled out geographically in waves after initial 3 county pilotinitial 3 county pilot

Challenges Challenges

Initial provider aversion Initial provider aversion Parental commitment – T/A can be burdensome Parental commitment – T/A can be burdensome in the “real world” for many reasons (lines at in the “real world” for many reasons (lines at larger providers, before and after school care, larger providers, before and after school care, “exceptions”, “I forgot my card”“exceptions”, “I forgot my card”No cash value to card – willingness to give the No cash value to card – willingness to give the card to providers for “convenience”card to providers for “convenience”The “Swipe Card Police” – warning letters, fraud The “Swipe Card Police” – warning letters, fraud investigations investigations DISCREPANCIES DISCREPANCIES

The Future for IndianaThe Future for Indiana

CONSOLIDATION!!CONSOLIDATION!!ConvenienceConvenienceFocus on like/same agency programs for Focus on like/same agency programs for

nownowOptions other than T/A – different payment Options other than T/A – different payment

or benefit issuance models or benefit issuance models Biometrics (Fingertip, photos)Biometrics (Fingertip, photos)