SA Budget Request

4600 - SA Budget Request (Rev. 1, 05-21-04) The annual funding allocation cycle begins in June/July of the preceding FY when CO issues a budget call letter to the ROs and SAs, providing guidelines and program priorities to assist in the SAs annual budget request preparation and ROs with State budget negotiations. Beginning in FY 2003, State Agencies should submit initial budget request documents and forms in accordance with instructions contained in the current State Survey and Certification Budget Call Letter. Furthermore, once a Fiscal Year budget allocation has been provided, the SA will be requested to prepare a Form CMS-435 and supporting budget forms via the State Survey and Certification and CLIA automated reporting system. The Automated Reporting System is a web-based application provided by CMS. The automated reporting system replaces the system of manually preparing and submitting reports. Supporting documentation is to be provided via e-mail, or common carrier. In the event a congressional appropriation is not passed at the beginning of the Federal FY (October 1), Congress approves a continuing resolution that allows work to continue at the prior year funding level. A - Expenditure Categories to Be Shown The SA budget request should be a detailed estimate of State survey program costs for both LTC and non-LTC requirements. Such costs are to be classified according to the category of proposed expenditure. The estimate of each category must be completely explained with respect to program objectives, the State Agency’s plan of operations, and the method used to compute the request. Funds provided to agencies as a result of the budget request are to be used only for necessary expenses. (See §4500.) States are free to shift funds from one expenditure category to another, except State surveyor training funds, which may only be re-designated with RO prior approval. B - Due Date Each SA is to prepare the budget in accordance with the due date provided by CO to ensure that CMS can complete the budget approval process in time to prevent an interruption to cash flow when one FY ends and the succeeding year begins. C - Budget Summary The SAs are to complete Form CMS-435 (see Exhibit 45) State Survey Agency Budget/Expenditure Report and Form CMS-434 (see Exhibit 52) State Survey Agency Workload Report for both non-LTC and LTC requirements. Form CMS-435 is a multi- purpose form (budget request and approvals, expenditures reports, supplemental funding request, etc.) used in Medicare and Medicaid applications. Its various uses are displayed at the top of the form. The SA indicates the specific use of the form by checking the appropriate box. These forms summarize requested funding levels for each category of expense and provide projected workload. The SA budget request must also include documentation as outlined in the annual budget call letter and a Form CMS-1465A (Exhibit 47) - “State Agency Budget List of Positions”; Form CMS-1466 (Exhibit 54) - “State Agency Schedule for Equipment Purchase,” and any other form in accordance with instructions contained in the current State Survey and Certification Budget Call Letter. D - Line Item Budget Justification Explanations for specific categories of expense are essential in both budget preparation and subsequent analysis. Therefore, the budget request must contain complete rationale regarding each line item. Line item justification should consist of narrative statements providing specific rationale for budgetary needs.