HomeMy WebLinkAboutAgreement A-22-451 County of Fresno Final Settlement Agreement.pdf Agreement No. 22-451
1 JUDITH A. RECCHIO (SBN 163060)
Deputy Chief Counsel
2 DENISE A. ACKERMAN (SBN 200404)
Assistant Chief Counsel
3 KATIE KONZ (SBN 271436)
Attorney IV
4 IRINA KACHAGIN (SBN 273140)
Attorney IV
5 Offices of Legal Services, MS 0010
Department of Health Care Services
6 P.O. Box 997413
Sacramento, CA 95899-7413
7 Telephone: (916) 345-8366
Facsimile: (916) 650-6868
8 Attorneys for
Department of Health Care Services
9
10 STATE OF CALIFORNIA
DEPARTMENT OF HEALTH CARE SERVICES
11 OFFICE OF ADMINISTRATIVE HEARINGS AND APPEALS
12
13 In the Matter of: ) APPEAL NO.: MHS22-0612-275E-VB
14 FRESNO COUNTY BEHAVIORAL ) SETTLEMENT AGREEMENT
HEALTH )
15 )
16 FISCAL PERIOD ENDING: June 30, 2012 )
17 Appellant. )
18 1
19
20 The Department of Health Care Services (Department) and Fresno County
21 Behavioral Health (County) (collectively, the Parties) enter into this Settlement Agreement
22 (Agreement) and agree to fully dispose of the issues raised in the above-captioned
23 appeal as follows:
24 RECITALS
25 1. The Department conducted an audit and review of County's Mental
26 Health Services Act (MHSA) Revenue and Expenditure Report for fiscal period ending in
27 June 30, 2012 (Revenue and Expenditure Report).
28
-1-
FRESNO COUNTY BEHAVIORAL HEALTH —SETTLEMENT AGREEMENT
1 2. On April 16, 2021, the Department issued the Report on the Mental
2 Health Services Act Revenue and Expenditure Report Review for fiscal period ending
3 June 30, 2012 (Finding Report), making three findings to County's Revenue and
4 Expenditure Report.
5 3. The County appealed the Department's Finding Report to the Office
6 of Administrative Hearings and Appeals (OAHA).
7 4. On August 9, 2021, OAHA received the County's Statement of
8 Disputes Issues (SODI). In its SODI, the County appealed the Department's findings that
9 (1) the County failed to comply with the stated MHSA contract maximums (Finding No. 2),
10 and (2) the County did not comply with the MHSA non-supplant requirement (Finding No.
11 3). The County's SODI also referenced the Department's Finding No. 1 regarding prior
12 year expenditures being improperly included in the audit year expenditures. However, the
13 SODI stated that the County was in agreement with Finding No. 1.
14 5. The formal hearing was originally set for January 18, 2022, before
15 Administrative Law Judge Vincent J. Blackburn. The hearing was subsequently continued
16 to June 7-9, 2022.
17 6. As a result of the Finding Report, the County submitted a Plan of
18 Correction to the Department stating the recommended corrective actions the County
19 intends to take to address each of the three findings made by the Department (POC).
20 7. The Parties have engaged in settlement discussions. Based on
21 additional documentation and information received during the course of those settlement
22 discussions, the Parties now desire to fully and finally resolve all issues in this matter
23 without the need for further proceedings, and without incurring the costs and uncertainty
24 of litigation.
25 SPECIFIC AGREEMENT
26 The Parties agree as follows:
27 8. The Department agrees to revise its findings and adjustments in a
28 manner consistent with the Updated Audit Adjustments to Revenue or Expenditure
-2-
FRESNO COUNTY BEHAVIORAL HEALTH -SETTLEMENT AGREEMENT
1 Summary Worksheet, attached hereto as Exhibit A.
2 9. As part of the settlement, the Department will accept the County's
3 submitted POC and the County's recommendations stated therein. In exchange, the
4 County agrees to comply with the Department's comments and directives to the County's
5 POC, as specified in Exhibit B attached herewith.
6 10. The County waives all rights it may have to further litigate, in any
7 forum, the issues raised in this appeal with respect to the Finding Report, Revenue and
8 Expenditure Report, SODI, POC, and any corresponding adjustments or revised findings
9 resulting from the instant appeal and settlement. The County further agrees that any
10 issue, finding, and/or adjustment not raised in this appeal or its SODI relating to the
11 Finding Report, Revenue and Expenditure Report, POC, and any corresponding
12 adjustments or revised findings are waived upon this Agreement becoming a Final
13 Decision as provided by Paragraph 11 below.
14 GENERAL AGREEMENT
15 11. Final Decision. The Parties request that the Administrative Law
16 Judge assigned to this matter approve and incorporate the terms of this Agreement into a
17 Final Decision.
18 12. Resolution of All Issues. The Parties agree that this Agreement
19 resolves all issues that were raised from the Revenue and Expenditure Report, Finding
20 Report, SODI, and this appeal.
21 13. Admissions. The Parties enter into this Agreement for settlement
22 purposes only, and this Agreement does not constitute an admission of fault or
23 wrongdoing by either party. Nothing in this Agreement restricts the filing of a criminal
24 prosecution, or limits any claims that may be made in any such prosecution by any other
25 federal, state, or local prosecuting, administrative, or regulatory authorities.
26 14. No Restriction on Program Participation. This Agreement does
27 not restrict, limit or otherwise adversely affect the County's ongoing participation in the
28 Medi-Cal Program.
-3-
FRESNO COUNTY BEHAVIORAL HEALTH -SETTLEMENT AGREEMENT
1 15. Further Action. This Agreement shall not affect the Department's
2 right to take action against the County as authorized by law and based on facts and
3 information that are made known to the Department after the effective date of this
4 Agreement.
5 16. No Precedent. The execution of this Agreement shall not operate as
6 a policy directive, nor be considered precedential or binding upon the Department
7 regarding similar issues that may arise with the County or other counties or providers. It is
8 expressly understood that the terms of this Agreement pertain to this specific audit and
9 review and fiscal period, and are not intended to affect any other MHSA revenue and
10 expenditure report, audit, review, or fiscal period.
11 17. Integration. The Parties agree that this Agreement constitutes the
12 sole, entire, and complete agreement to resolve their disputes in the above-captioned
13 appeal. The Parties agree that no promise, inducement, representation, or agreement not
14 expressed in this Agreement has been made, and the terms of this Agreement are
15 contractual and not a mere recital. No amendment to this Agreement or any other
16 agreement among the Parties affecting this Agreement shall be effective unless it is in
17 writing and signed by all parties to this Agreement.
18 18. Mutual Preparation. The Department and the County further agree
19 that this Agreement is the product of their mutual preparation and accordingly, shall not
20 be deemed to have been prepared or drafted by either party. The Parties further agree
21 that any court or tribunal seeking to interpret this Agreement should construe it as the
22 product of mutual preparation.
23 19. Advice of Counsel. The Parties to this Agreement have been
24 advised or have had the opportunity to be advised by legal counsel with respect to the
25 terms of this Agreement, and understand and acknowledge its significance and
26 consequences. The Parties acknowledge and agree that each had full opportunity to
27 consult with attorneys or legal or other advisors of their choice.
28
-4-
FRESNO COUNTY BEHAVIORAL HEALTH -SETTLEMENT AGREEMENT
1 20. Meeting of the Minds. By signing this Agreement, the Parties certify
2 that they have read this Agreement in its entirety, have understood the terms of its
3 Agreement, and fully agree to the terms conditions in it.
4 21. Waiver of Unknown Claims. The County acknowledges that it is
5 familiar with the provisions of California Civil Code section 1542, which provides the
6 following:
7 A general release does not extend to claims that the
creditor or releasing party does not know or suspect to
8 exist in his or her favor at the time of executing the
9 release and that, if known by him or her, would have
materially affected his or her settlement with the debtor
10 or released party.
11 The County, being aware of California Civil Code section 1542, agrees to
12 expressly waive any rights it may have under this section, as well as under any other
13 statutes or common law principles of similar effect, with respect to any claim for damages
14 against the State of California and/or the Department resulting from this disputes or facts
15 that are the subject of this Agreement.
16 22. Successors. This Agreement shall be binding upon and inure to the
17 benefit of the Parties and their respective successors in interest, licensees, heirs,
18 representatives, agents, and assigns.
19 23. Severability. If any of the terms of this Agreement are found to be
20 invalid, illegal, or unenforceable in any respect, the remaining provisions shall
21 nevertheless be binding with the same effect as if the invalid, illegal, or unenforceable
22 term or terms were originally deleted. Neither this Agreement nor any provisions set forth
23 in it may be amended, cancelled, revoked, waived, discharged, terminated, or otherwise
24 modified except by a signed written agreement executed by all parties to this Agreement.
25 24. Choice of Law. This Agreement is entered into, and shall be
26 construed and interpreted, in accordance with the laws of the State of California.
27
28
-5-
FRESNO COUNTY BEHAVIORAL HEALTH -SETTLEMENT AGREEMENT
1 25. Effective Date. The effective date for the purposes of this
2 Agreement shall be the date the Agreement is adopted and incorporated as a Final
3 Decision by OAHA.
4 26. Counterparts and Signatures. This Agreement may be executed in
5 one or more counterparts, each of which shall be deemed an original, but all of which
6 together shall constitute one and the same instrument. The Parties further agree that
7 faxed, scanned, electronic, or digital signatures and multiple signature pages are
8 acceptable and have the same force and effect as an original.
9 APPROVED AND ACCEPTED:
10
11 d;y�l2 - 2- "c �1
Dated:
12 Brian Pacheco, Chairman
of the Board of
13 Supervisors of the County
of Fresno
14
15 Dated: 10/28/2022
Bob Sands, Asst. Division Chief and
16 Acting Branch Chief
Department of Health Care Services
17 Audits and Investigations Division
Financial Audits Branch
18
19 APPROVED AS TO FORM:
20
21 Dated: September 30, 2022
Libby H. TdAgue
22 Deputy County Counsel
Office of the Fresno County Counsel
23 Attorney for County of Fresno
24
25 Dated: 10/28/22
Katie Konz ci
26 Irina Kachagin
ATTEST: Attorneys for Department of Health
27 BERNICE E.SEIDEL Care Services
28 Clerk of the Board of Supervisors
County of Fresno,State of California
By - Deputy
-6-
FRESNO COUNTY BEHAVIORAL HEALTH-SETTLEMENT AGREEMENT
Exhibit A
State of California Department of Health Care Services
Health and Human Services Agency Financial Audits Branch
FRESNO COUNTY DEPARTMENT OF BEHAVIORAL HEALTH
MENTAL HEALTH SERVICE ACT
UPDATED AUDIT ADJUSTMENTS TO REVENUE OR EXPENDITURE SUMMARY WORKSHEET
FISCAL YEAR ENDED:JUNE 30,2012
A B C D E F G
As Audited
Adj.to As Reported Adjustment
# Type of Adjustment FY Account (County (State Amount) Amount Reason/Management Comment
Amount
1 Expenditure FY 11/12 CSS $ 25,054,969 * $ 25,271,756 $ 216,787 Accrual adjustment per Finding#1
2 Expenditure FY 11/12 PEI $ 5,850,990 $ 6,360,884 $ 509,894 Accrual adjustment per Finding#1
3 Expenditure FY 11/12 INN $ 317,646 $ 318,219 $ 573 Accrual adjustment per Finding#1
4 Expenditure FY 11/12 WET $ 200,087 $ 209,211 $ 9,124 Accrual adjustment per Finding#1
5 Expenditure FY 11/12 CFTN $ 470,536 $ 558,527 $ 87,991 Accrual adjustment per Finding#1
6 Expenditure FY 11/12 CSS $ 25,011,147 $ 25,054,969 $ (43,822)Revised Contract Max Exception Finding#2
7 Expenditure FY 11/12 CSS $ 25,009,278 $ 25,011,147 $ 1,869 Revised Contract Max Exception Finding#2
8 Expenditure FY 10/11 CSS $ 19,740,707 $ 19,523,920 $ 216,787 Accrual reclassification per Finding#1
9 Expenditure FY 10/11 PEI $ 4,897,294 $ 4,387,400 $ 509,894 Accrual reclassification per Finding#1
10 Expenditure FY 10/11 INN $ 233,506 $ 232,933 $ 573 Accrual reclassification per Finding#1
11 Expenditure FY 10/11 WET $ 224,174 $ 215,050 $ 9,124 Accrual reclassification per Finding#1
12 Expenditure FY 10/11 CFTN $ 752,912 $ 664,921 $ 87,991 Accrual reclassification per Finding#1
* Balance carried from prior adjustments
* Balance carried forward to subsequent adjustments
Page 1 of 1
Exhibit B
Fresno Plan of Correction
MHSA Revenue and Expenditure Report Review for Fiscal Period Ended June 30, 2012
Finding # or Finding or Recommendation #
Suggested Suggested (State Corrective Action Step / Identify Timeline / and DHCS Score —
Improvement # Improvement Evidence of Corrections / Mechanisms for Monitoring Comments/Notes
Effectiveness
Finding # 1 Prior year Recommendation # 1 Fresno County should use the The submitted plan is
expenditures included Modified Accrual Basis of Accounting accepted
(MHSA RER in current year for the RER.
Report Review - expenditures- method Fresno County is currently using
Fiscal Year of accounting reported the Modified Basis of Accounting
Ended June 30, on cash basis. for the RER
2012 — Report
issued April 16,
2021)
Finding #2 MHSA Expenditure Recommendation #2 Fresno County disagrees with this Based on additional
Contract Maximum finding. However, we will review and documentation received
Exceptions clarify the language in our contracts from Fresno County,
to make it clearer that contracts with DHCS is updating this
vendors are based on budgeted finding to reflect a
funding source amounts with change in total audit
maximum projected total expenditure adjustment, from
limits. $2,988,670 to $45,691.
a) Clarified contract language will Please see enclosed
be going into new agreement updated adjustment
starting July 1, 2021 and any schedule.
amendments to existing
contracts existing thereafter. DHCS accepts the
The nature of the funding sources County's plan of
being budgeted will be elaborated on correction and expects
in Fresno Counties MHSA FY 20/21 to receive the County's
Annual Update. final draft contract
language and an
updated policy ensuring
1
CONFIDENTIAL SETTLEMENT COMMUNICATION
Fresno Plan of Correction
MHSA Revenue and Expenditure Report Review for Fiscal Period Ended June 30, 2012
Finding # or Finding or Recommendation #
Suggested Suggested (State Corrective Action Step / Identify Timeline / and DHCS Score —
Improvement # Improvement Evidence of Corrections / Mechanisms for Monitoring Comments/Notes
Effectiveness
the language is added to
contracts and
amendments by July 31,
2022.
Finding #3 Non-Supplant Recommendation #3 Fresno County disagrees with this DHCS accepts the
Compliance Exception finding. However, we will publish a County's plan of
written non-supplant policy and correction as full
establish workpapers that will more satisfaction of this
clearly demonstrate compliance with Finding. DHCS expects
our non-supplant policy. the County to submit its
a) Fresno Counties Non- draft non-supplant policy
Supplant Policy will be codified by July 31, 2022.
by September 30, 2021.
Fresno County will complete yearly
workpapers alongside the annual
RER to demonstrate compliance with
the Non-Supplant Policy.
2
CONFIDENTIAL SETTLEMENT COMMUNICATION