Dear Administrator - 2005 LTHHCP Cost Report Software

December 1, 2006

RE: 2005 LTHHCP Cost Report Software

Dear Administrator:

In accordance with Part 86-5.2 of Title 10 the Commissioner's Administrative Rules and Regulations, all Long Term Home Health Care Programs (LTHHCP) shall complete and file annual financial and statistical report forms.

As you know, the Department has been engaged in protracted negotiations with the accounting industry, as represented by the American Institute of CPA's (AICPA), on the specific language to be included in the accountant's certification for the LTHHCP cost report. These discussions have now been finalized, and the 2005 LTHHCP Software is now available on the Department's Internet-Based Health Provider Network (HPN).

The 2005 LTHHCP Cost Report (lthhc05) must be filed with the Department no later than January 31, 2007. No extensions beyond this date will be granted. The originally executed copies of both the operator's and accountant's certification must be postmarked on or before February 14, 2007. If a program files the report or certifications after the required due dates, penalties may be assessed in accordance with Part 86-5.2(d) and Section 12-d of the Public Health Law.

Health Provider Network (HPN) Address

You may download the software from the department's Internet-Based Health Provider Network. This may be accessed at https://commerce.health.state.ny.us/hpn/. Once you have reached this page, you will need to access the section entitled "Programs" and then click on the Program Area for the Division of Health Care Financing. Once you have reached our division's Home Page, you may access the LTHHCP Cost Report 2005 for download.

Enclosed with this letter are instructions on using the HPN and on installing the software onto your computer.

Operator and Independent Accountant Certifications

Based on recent agreement with the accounting industry, as represented by the American Institute of CPA's (AICPA), the software contains the approved revisions to the accountant's certification form. The software also includes the approved revisions to the governmental form that may be utilized for a government - sponsored LTHHCP in those situations where the overall county audit is performed by a different CPA firm than the firm opining on the cost report. It is important to note that the applicable accountant's certification included in the 2005 cost report is the only acceptable accountant's certification that can be submitted to comply with the filing requirements of Parts 86-5.2 and 5.5.

The Department can accept absolutely no alteration to the certification. In order to insure compliance with the filing requirements of Parts 86-5.2 and 5.5 for 2005, agencies should insure that the accountant's certification submitted for their cost report is the exact and correct certification form as included in the 2005 software package. Any other form of accountant's certification will be rejected and the cost report will not be acceptable in accordance with Parts 86-5.2 and 5.5.

As a result of the certification discussions with the accounting industry, the operator's certification has also been revised to further clarify that the operator is responsible for insuring that the cost report is completed in accordance with the cost report instructions. In accordance with Parts 86-5.2 and 5.6, the Department can accept no alteration to the operator's certification included in the 2005 software.

The Bureau must receive the originally executed copies of both the operator's certification and the accountant's opinion no later than February 14, 2007. These statements must be printed from the software and the original hard copy must be mailed to:

Mr. Timothy E. Casey
New York State Department of Health
Bureau of Long Term Care Reimbursement
943 Corning Tower Building
Empire State Plaza
Albany, NY 12237-0709

Changes for the 2005 Cost Report

In addition to the changes to last year's (2004) software for Schedule D-2 and new Schedule H, the following change has been made for 2005:

General Information Page 2 - has been modified to include additional lines for agencies to report both the cost and number of background checks incurred in 2005 in accordance with the the Criminal History Record Check regulations, Part 400.23 of Title 10.

Filing the Report

Once your cost report passes all edits and is finalized, a Declaration Control Number (DCN) will appear on the computer screen and each page of report printouts. Any change in the cost report will cause the DCN to be erased and another DCN will not be generated until the report is finalized again. Please refer to the HELP section of the LTHHP software for information on creating the Final Cost Report and the DCN Number.

The Department will be accepting reports when you receive this letter. When the report has been successfully uploaded and filed with the Department, the agency will receive an electronic acknowledgment indicating the report is accepted and echoing back the DCN for the agency's report. This will happen each time that the agency files a report with a different DCN. Reports with the same DCN will be rejected after the first report is accepted.

If a facility files multiple reports, certifications are required only for the "final" report. The DCN of the "final" report must appear on both the Operator's Certification and Accountant's Opinion. If multiple reports are filed, the Department will deem the last report filed for the agency as the "final" report, unless the agency notifies the Bureau, in writing, that an earlier submission should be recognized as the "final" report. The agency must clearly identify such earlier submission by DCN as the "final" report and insure that the certifications are appropriately completed for the "final" report.

As noted above, the cost report submission is incomplete until the Bureau receives the original executed copies of both the operator's certification and the accountant's opinion.

Please notify all appropriate personnel, including your accounting firms, of the filing requirements for the cost report and please begin compiling the cost report information as soon as possible in order to avoid any late filing penalties.

Should you have any problems or questions regarding the electronic mail network please contact the HELP line at 1-866-529-1890.

If you have any questions regarding completion of Schedule H – Waivered Services, please contact Ms. Marlene Stevens at (518) 473-8910. If you have any other questions concerning completion of the report, please contact Mr. Gary Crucetti at (518) 473-8910.

Sincerely,
Kathleen E. Gill
Director Bureau of Long Term Care Reimbursement

Enclosures