OAR 411-002-0175: Methodology To Determine Budget Levels for Type B Area Agencies on Aging That Have Elected To Have Employment Transfer

(1) Definitions: (a) A “Type B Transfer AAA” means a Type B Area Agency on Aging that has elected to have employees transferred to employment by the Area Agency by transfer agreement. (b) A “Title XIX funded position” means a position that is funded, in part, by Federal funds through Title XIX of the Social Security Act. (c) “SPD Allocated Positions” means the position categories allocated to SPD field offices. These are the categories of positions to be included for the Equity comparison. (d) “Annual OPE” means the benefit rate as calculated by DHS. The resulting rate is used to calculate the amount of OPE per type of position. (e) “Indirect Cost Rate” means the percentage rate used to calculate costs allocated to Type B Transfer AAA offices for indirect costs, including State Government Service Charges and Infrastructure Charges. An established indirect cost rate will not be amended in the middle of the biennium. The initial indirect cost rate is set at 17.78% of the sum of Salary and OPE expenses. The indirect cost rate will be re-based to be effective the first day of the first biennium after the Department of Administrative Services (DAS) changes rates that it publishes in its Price List. (2) Each Type B Transfer AAA shall provide an updated staff report to DHS not later than January 31 each year. The Type B Transfer AAA shall provide the information that DHS requests in the form that DHS prescribes. (3) The following steps will be used to calculate the annual budget for the Type B Transfer AAAs: (a) The updated staff report will be sorted to separate Title XIX funded positions from others. Positions that are not Title XIX funded are not included in the calculation. (b) SPD will publish a list of Title XIX funded job categories not later than January 15 each year. (c) The Title XIX funded positions are sorted by job category. Levels within a single job category are combined. (d) Average step in the salary range and average salary are calculated for each job category. (e) Management staffing will be added in the same ratio and at the same salary ranges that DHS would staff an SPD field office. (f) Each Type B Transfer AAA will be afforded an opportunity to review the information derived in steps (a)–(d) above. Revisions may be made to the information as a result of that review. (g) Reviewed information from steps (a)–(e) will be used to determine calculate average step in the salary range for each job category for each Type B Transfer AAA. (h) An adjustment is made to equate the number of salary steps in the Type B Transfer AAA salary range for each job category to the DHS salary range for each job category. (i) The adjusted average step in the salary range is used to determine the average DHS salary for each job category. (j) The monthly salary is multiplied by 12 and converted to an average annual salary for each job category. (k) The Annual OPE rate is multiplied by the average annual salary for each job category to produce the average annual OPE for each job category. (l) The sum of the average annual salary and the average annual OPE for each job category is multiplied by the number of FTE determined in steps (a)–(e) above. The product is the Total Annual Salary Plus OPE to be used in determination of the budget level. (m) The Total Annual Salary Plus OPE is multiplied by the Indirect Cost Rate to determine aggregate annual indirect costs. (n) The DHS standard Services and Supplies costs for field office employees is multiplied by the number of FTE to determine aggregate Services and Supplies (S&S) costs. (o) The total annual Type B Transfer AAA annual budget level is the sum of (Total Annual Salay Plus OPE) + (aggregate annual indirect costs) + (aggregate S&S costs). (4) The total annual Type B Transfer AAA annual budget level determined above will be reduced by 5%. (5) DHS will use the methodology outlined in Sections (3) and (4) above when determining funding levels to recommend to the Governor for the Type B Transfer AAAs. (6) Notwithstanding Section (5), in determining the funding levels of Type B Transfer AAAs to recommend to the Governor for the 2005-2007 biennium, DHS shall reduce the total annual Type B Transfer AAA annual budget level by 8%.