State of Indiana Child Care Development Fund Electronic Time and Attendance - Payment System

Indiana’s CCDF History Late 90’s – Contracted, locally controlled “Voucher Agents” determined eligibility, enrolled providers, AND paid providers. All data sent to state from 3 different software systems through bi-weekly extracts 2001 – Agency began planning for new business structure Separation of eligibility and payment Contracted, but state controlled Web based systems were desired 2003 – Completed rollout of web based intake system 2004 – Completed rollout of electronic, time/attendance system

Indiana Child Care Environment 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 Rationale Goals: Eliminate paper based voucher system Reduce potential for fraud and waste Increase program dollars Also Get: More accurate time and attendance data More accurate provider payments – pay only for actual services rendered More accurate financial controls ACCOUNTABILITY!!

Other Benefits Real time information Expenditures Provider Activity Case activity Multiple reporting layers Monitoring from central office No paper checks in mail Promote parental self-sufficiency goals Identify underused dollars

In a nutshell, what is it? The electronic capturing child care services rendered using “commercial” style environment POS – Point of Service vs. Point of Sale Magnetic Stripe Card – like your debit card In our system – the card currently has no value – time in and time out Attendance recorded each 2 week service period is used to calculate payment due to provider Payments made bi-weekly, via ACH direct deposit The two systems (eligibility and T/A-Payment “talk to each other” – file interfacing.

Main Preparations Coding of current Indiana business rules. System had to enforce those. System interfacing between eligibility and T/A-Payment system – file transfers, acceptance Training – State personnel, all providers and clients in “waves”. Now done one-to-one as participants are added to the program System rolled out geographically in waves after initial 3 county pilot

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

The Future for Indiana CONSOLIDATION!! Convenience Focus on like/same agency programs for now Options other than T/A – different payment or benefit issuance models Biometrics (Fingertip, photos)