Tracking# 2010-00958
FA/P 12/3/10, eff. 2/1/11

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(9 CCR 2501-1)

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Revision of sections 1.142, 1.151 and 1.152 were final adoption following publication at the 12/3/2010 Executive Director rule-making session, with an effective date of 2/1/2011 (Rule-making# 10-9-24-1). Statement of Basis and Purpose and specific statutory authority for these revisions were incorporated by reference into the rule. These materials are available for review by the public during normal working hours at the Colorado Department of Human Services, Division of Boards and Commissions, State Board Administration.
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1.142  General Definitions [Rev. eff. 2/1/11]

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“Sanction” means an action taken by the State Department upon a confirmed finding of a county department’s noncompliance. State Department actions may ultimately result in financial sanctions or state operation of programs as set forth in the Human Services Code, Section 26-1-109(4)(b), (c), (d), (e), C.R.S. 
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1.151  Corrective Action Process Components [Rev. eff. 2/1/11]
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D.  Presentation of Preliminary Findings 
Upon completion of the on-site monitoring activities, the State staff shall, within twenty (20) state working days of the completion of the audit or review, draft a Preliminary Report and provide a copy of the report to the county department sent by certified mail to the County Director.  The Preliminary Report shall include the audit or review findings based on the review instrument or tool(s) used. If a county department is found to be out of compliance in any area, such area shall be highlighted in the preliminary report.
E.  County Department Response
The County Director or his/her designee shall, within twenty (20) state working days of the date the Preliminary Report was mailed, respond in writing to the State Department. The response shall include information regarding agreement or disagreement with the findings, any identified areas of non-compliance, requirements for CAPs, or any objection to specific wording. Any designee appointed by the county director to act on his/her behalf shall be a county employee approved by the county commissioners, city mayor, or city council persons as appropriate. If the county director appoints a designee to act on his/her behalf, this shall also be put in writing and submitted to the State Department. 
If the county department does not respond in writing within twenty (20) state working days of the date the preliminary findings were mailed, the Preliminary Report shall be considered the Final Report.
F.  Exit Conference
State Department staff will schedule an Exit Conference with the county department in order to discuss the Preliminary Report and the county department’s response within twenty (20) calendar days from the end of the time frame for a county response as indicated in Section 1.151, E. The following persons, at a minimum, shall attend the exit conference: the State staff responsible for the audit or review or their designee, the County Director and/or his/her designee(s), State Department program staff with responsibility for any rules reviewed, State staff who conducted the review, and the regional Field Administrator. State staff may also invite appropriate local officials such as County Commissioners, City Mayors or Council Persons, County Administrators or others as deemed appropriate.
G.  Final Report
Within twenty (20) state working days of the Exit Conference, State staff shall create a Final Report and provide a copy of the report to the county department and the County Commissioners, City Mayors or Council Persons, Council Administrators or others as deemed appropriate.
H.  County Department Appeal
Upon receipt of the Final Report, the county department may appeal the findings of the Final Report to the Executive Director of the Colorado Department of Human Services. Within twenty working days of the date the Final Report was mailed (through certified mail), the County Director may request a review of the findings by the Executive Director of the State Department. The county department’s request shall identify the specific findings under dispute and provide data, statements of evidence or other evidence and the documentation to support the appeal. The Executive Director of the State Department, or his/her designee, shall respond in writing to the county department within twenty (20) state working days of the date the appeal letter was received. All decisions by the Executive Director or his/her designee shall be considered the final decision. If the county department does not appeal the findings in the final report, the right to appeal is forfeited.
As applicable, the State would modify the Final Report based on the Executive Director’s decision. If the Final Report requires the county department to complete a CAP, the timeline for submitting the CAP does not begin until after the appeal has been heard and formal notification of such has been mailed to the county department. 
I.  Corrective Action Plan
If necessary, a Corrective Action Plan shall be submitted by the county department of human/social services to the State Department.
1.  Upon receiving the Final Report, and if the Report requires the submittal of a Corrective Action Plan, the county department shall prepare and return a Corrective Action Plan to the State Department within twenty (20) state working days of the date the Final Report was mailed. If the county department filed a formal appeal to the Executive Director of the Department Human Services that was denied, the CAP must be submitted within twenty (20) state working days of the date the formal notice of denial was sent by certified mail.
2.  The written CAP shall be completed on the CAP form provided by the State Department and shall identify areas of non-compliance, action steps to be taken for each area, dated by which action steps are to be implemented, indicators of progress toward compliance, dates for progress reports, and a date for achieving compliance.
3.  Within twenty (20) state working days from the date the state designated lead received the county CAP, the State Department shall notify the county department of acceptance or denial of the CAP and request modifications deemed necessary.
4.  If a county department does not submit a CAP within the twenty (20) state working days, the State Department shall follow the sanction process as described in Section 1.152.
5.  If the county department needs additional time to meet any of the deadlines provided in this Rule Volume 1, the county director may submit a request in writing to the Department, providing the reasons that an extension of time is necessary and a proposed date for the submittal of required documents or plan. The Department will respond to the request for an extension with five (5) state working days of the date the denial was mailed to the county department.
If the county department needs to modify a CAP, the county director may submit a request in writing to the Department, providing the reasons that a modification is necessary and a proposed date the Department received the request.
a.  If the request for a modification is denied, the CAP shall remain as previously approved.
b.  If approved, the county will be required to submit a modified CAP Form to the Department by the proposed date.
c.  If the county does not submit the revised CAP Form within the timeline approved, the original CAP will continue to be in force.
6.  At the time the State Department accepts the CAP, questioned costs and/or sanctions will be processed in accordance with accounting policy and procedures.
J.  Corrective Action Plan Monitoring
Monitoring of the Corrective Action Plan shall begin within twenty (20) state working days following State approval of the plan and continues through the completion of the plan. Monitoring may include, but not be limited to, case and record reviews, onsite conferences, staff interviews, data analysis, and direct observation. At any time during the monitoring of the Corrective Action Process, the Department may provide technical assistance, training and other assistance as needed. At any time during the monitoring process, but no later than the agreed end of the Corrective Action Plan timeframe, the State Department shall notify the county department of the status for final compliance. If compliance has been achieved, written notification shall be provided to the Executive Director, the Deputy Executive Director, the County Director, Board of County Commissioners, and other as deemed appropriate. If the county department remains in noncompliance, sanctions will be imposed.
K.  The confidentiality of records audited or reviewed in the course of a program intervention or in the course of the corrective action process will be maintained as required by the statutes and rules governing the specific program area or areas being audited or reviewed. The confidentiality of a program intervention or corrective action process will be maintained as authorized under Colorado law.
Records can be disclosed as authorized under the Colorado Open Records Act or other similar federal and state laws.
1.  If the county or state department receives an open records request of audited or reviewed records, the county or state department shall process the request as required by the statutes and rules governing the specific program area or areas being audited or reviewed.
2.  If the county or state department receives an open records request of records specific to a program intervention for the Corrective Action Process, the county or state department shall process the request as required by the statutes and rules governing the specific program area or areas being audited or reviewed and the county department will notify the state department within twenty-four hours of the request.
1.152  Sanctions [Rev. eff. 2/1/11]
If a county department does not meet the requirements of this Rule Volume 1 or fails to comply with an approved Corrective Action Plan, the State Department may impose any financial sanction as set forth in the Human Services Code, Section 26-1-109(4)(b), (c), (d), (e), C.R.S. These sanctions may include, but not be limited by, the following: 
A.  Disallowance of State funds equal to the salary of the County Director of Human/Social Services from the grant which the CAP is issued. 
B.  The State Department to undertake the administration of the public assistance or welfare program for which the county department has not met the requirements of a Corrective Action Plan. 
Notwithstanding the provisions of this Rule Volume 1, if the circumstances of noncompliance, as defined herein, creates or has the potential to create a risk of imminent harm to a person or damage to property, the State Department may take action, as it deems appropriate, consistent with Colorado Human Service Code, Section 26-1-101, et seq., C.R.S.

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