Issue:
Should the timing of the corrective action year for noncompliance with program requirements for reliable data be adjusted to more properly reflect a full year for a state to take corrective action?
Background:
The existing statute penalizes states as the corrective action year begins running before a state even knows that there is anything to correct. The change allows the state to have a full year of corrective action: the corrective action year would begin October 1 of the fiscal year following the receipt of the noncompliance finding. This change provides states the appropriate amount of time to correct any deficiencies, and ensures that only penalties that are appropriate are levied. As an example - under the existing statute, the potential corrective action year for FFY 2003 started on October 1, 2003. However, the Data Reliability audit began on February 1, 2004 - and a report may not be received until June 2004. This only leaves July - September to correct any errors - automated system programming, worker training or correction of data entry. Under the proposal - the corrective action year would start on October 1, 2004 - after the receipt of the report - and would provide the state until September 30, 2005 to correct the errors and submit a new report. If the state were still out of compliance, a penalty would be appropriately imposed at that time.
NCCSD Statement in Support:
NCCSD supports the proposal to change the timing of the corrective action year for state noncompliance to more properly reflect a full year for a state to have adequate time to change its practices and fully comply with federal data reliability requirements.