1.3 Strategies & Expenditure Allowability

Expenditure Allowability Related Strategies

Ensuring that expenditures align with guidelines and serve the intended purpose is crucial for the effective management of funds. Here are some strategies to assist in determining the allowability of expenditures:

Regular Reviews of the LSP

The LSP is a guiding document that outlines how funds should be allocated. Community needs and priorities may change over time. Regularly reviewing it ensures that expenditures align with current community needs and priorities.

Potential Action Steps:

1. Schedule quarterly reviews of the LSP. This can be done through established health committee, or LSP committee, meetings.
2. Cross-check proposed expenditures against the LSP to ensure alignment. If not already in place, consider integrating this step into an established expenditure approval process.

Billing Considerations for Goods/Services

Goods/services that are allowable as billable items in the Medicaid program are also considered allowable expenditures and can be paid for using reimbursement dollars.

Potential Action Steps:

1. Maintain a list of goods/services that are billable under the Medicaid program.
2. Cross-reference proposed expenditures with this list.
3. Ensure that administrative costs remain within the CDE recommended 20% limit.

Considering Historical Approval

Past approvals can serve as a precedent for current and future expenditure requests. Oftentimes, past approvals can be found as examples in many CDE support documents such as the Expenditure Allowability Support document or listed in the LSP guidelines under the appropriate health service category.

Potential Action Steps:

1. Maintain a database or record of previously approved expenditures, along with why they were approved.
2. Regularly update the list with new approvals and any changes in guidelines.
3. Before approving a new expenditure, check if similar items have been approved in the past.

Consultation and Collaboration

When in doubt, seeking external input can provide clarity on the allowability of an expenditure. The CDE School Health Services Consultant is a great resource to assist with expenditure allowability-related queries.

Potential Action Steps:

1. Organize a meeting or call with CDE to discuss ambiguous expenditure requests.
2. Collaborate with other LEAs to share insights and best practices on expenditure allowability.