December 2004

Our system of care community is committed to involving families and youth in all of our system of care activities, including but not limited to participating in meetings, attending trainings, and supporting other families. We want to respect the families and youth by being able to financially support the costs of their participation. I have heard that other communities are providing stipends and other supports to families and youth. Is this an allowable expense, and if so, what strategies are other communities using to get families and youth the support they need? Will families who receive benefits lose their benefits if they receive financial support?

Providing financial support to families and youth so that they can participate in system of care activities is an allowable federal grant or cooperate agreement cost according to OMB-Circulars 122/133. These direct costs are known as participant support costs and are defined as follows:

Participant support costs are direct costs for items such as stipends or subsistence allowances, travel allowances, and registration fees that are paid to or on behalf of participants or trainees (but not employees) in connection with meetings, conferences, symposia, or training projects. These costs are allowable with the prior approval of the awarding agency.

This is a new area of fiscal awareness for system of care communities and agencies working on developing guidelines, policies, and procedures for implementing this practice. Based on what I have learned out in the field, below are some helpful hints.

1. First make sure that your system of care community has been approved by the Center for Mental Health Services (CMHS) to use the money in your budget to provide financial support for families and youth.
2. Work with your accountant to make sure that your policies and procedures are in compliance with audit standards.
3. Establish a rate structure that details which families will be reimbursed for attending activities and what the reimbursement will cover. Some communities have a set rate for attending meetings that the family can use to cover their lost wages, childcare, and/or transportation. Other communities choose to pay families at an hourly rate or provide direct compensation for child care and/or transportation. A few communities provide gift cards.
4. Develop a reimbursement form that includes at least the date of service, the individual's name, address, contact information, and social security number, the purpose of reimbursement, the rate of reimbursement and what is specifically being reimbursed, and the individual's signature. Reimbursement forms should be submitted before payment is received. Agencies should aim to process the reimbursement form and turn around payment in a timely manner.
5. It is good practice to make families aware that if they receive over $600 in reimbursements, they are required to adhere to IRS reporting requirements and will receive a 1099. Families who receive benefits must check immediately with their benefit counselors to make sure that any reimbursements they receive are reportable, regardless of whether they receive cash or a gift. It is also good practice to ask families to complete a W-9 form and to keep this form on file with your agency. I have seen families that have meaningful participation once they are aware of their benefit limits.
6. Reimbursement for participant involvement should not be the only financial mechanism of support for family involvement. Reimbursements or stipends should not be used excessively with an individual. It is important to look at your commitment to this individual's level of participation and the type of service they provide. It may be more appropriate to approach reimbursement differently if this individual makes an ongoing commitment and performs activities not listed above. For example, many communities are now hiring families as staff within agencies and family organizations. Others are hiring families as independent contractors. Again your accountant needs to make sure that you have an independent contract with an appropriate scope of work in place and that it meets audit requirements.

Reimbursing families is important to increasing family involvement and voice in systems of care and is necessary if we are to become truly family-driven in our practices. Families should be valued as equal partners and should receive the same compensation for their input as the professionals with whom they work. There are families who cannot make the commitment without these mechanisms of support. It should also be recognized that families may want to volunteer their efforts, and volunteer programs should be developed and encouraged in system of care communities.

Resources

OMB information:

• http://www.whitehouse.gov/omb/circulars/a122/a122.html
• http://www.whitehouse.gov/omb/circulars/a133/a133.html

Sample reimbursement form: Parent Support Network of Rhode Island

Sample independent contract and scope of work

Volunteer resource information:

• Developing and Managing Volunteer Programs http://www.mapnp.org/library/staffing/outsrcng/volnteer/volnteer.htm
• ServiceLeader.org: For Volunteer Managers http://www.serviceleader.org/new/managers/index.php

W-9 Form: http://www.irs.gov/pub/irs-pdf/fw9.pdf