LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7219 NOTE PREPARED: Apr 5, 2021
BILL NUMBER: HB 1532 BILL AMENDED: Feb 2, 2021
SUBJECT: Department of Child Services Reporting.
FIRST AUTHOR: Rep. DeVon BILL STATUS: Enrolled
FIRST SPONSOR: Sen. Grooms
FUNDS AFFECTED: X GENERAL IMPACT: State
DEDICATED
FEDERAL
Summary of Legislation: The bill requires the Department of Child Services (DCS) to annually submit to
the General Assembly a report providing specified information regarding cost reports submitted to the DCS
by child caring institutions, group homes, child placing agencies, and private secure facilities. It also requires
the first such report submitted by the DCS to provide the specified information for the preceding four years.
Effective Date: July 1, 2021.
Explanation of State Expenditures: The bill’s requirements for the DCS to prepare a report due on May
1 each year concerning disallowed expenditures impacts workload, yet is within the DCS’s routine
administrative functions and should be able to be implemented with no additional appropriations, assuming
near customary agency staffing and resource levels.
Additional Information - The DCS’s additional workload may include collection of unallowable cost
information. Unallowed costs are not included on cost reports or considered in the administrative payment
calculation. The unallowable costs include salaries above the median wage by job category, fringe benefits
above the median by provider type, staff costs in significant excess of caseload requirements, supervisor
ratios above industry standards, and indirect and total administrative costs above the amounts set by the DCS.
For residential facilities, unallowed costs also include excess capacity costs. A provider may ask for review
by the DCS of base rates and cost-based rates the provider believes to be in error. Collecting data for the
prior four years may add to the initial workload of the DCS.
Explanation of State Revenues:
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Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected: DCS.
Local Agencies Affected:
Information Sources: 465 IAC 2-16 and 465 IAC 2-17.
Fiscal Analyst: Karen Rossen, 317-234-2106.
HB 1532 2