This document contains responses to public comments submitted about the CFR Penalty Amendments during the public comment period for the proposed regulations on this topic. OPWDD received comments from one provider of services to people with developmental disabilities.

Comment: The provider commented that since the 150 days for providers with a fiscal year ending on June 30 falls on November 27, it often coincides with the Thanksgiving Holiday weekend, and it would be helpful to change the deadline to the first business day of December. The provider stated that for large agencies it takes at least four months or sometimes longer to close the fiscal year, have the CPA perform their audit, perform third party verifications, resolve accounting issues that may arise during the course of the audit process, prepare the CFR, perform reviews, etc. The provider indicated that all agencies want to submit their CFR as accurate as possible and the process is very labor intensive. The provider commented that CPA firms do not work on just one agency’s audit exclusively, they have other clients that need to submit June 30 financial statements and CFRs at the same time. The provider asserted that, additionally, the CPA firm review process and approval of a final audit work and financial statements has become more involved and extensive in recent years.

The provider also commented that should auditing or accounting circumstances arise which are beyond the control of the provider and/or auditing firm, the provider should be granted an automatic 30 days additional approved extension beyond the 150 days.

Response: OPWDD considered the provider’s comments and is promulgating the regulations with no changes. The Centers for Medicare and Medicaid Services (CMS) and OPWDD share the position that the 150 day deadline with an extension should be sufficient for a provider to submit all necessary documentation. The provider may request a waiver of the penalty when there are unforeseeable circumstances beyond the provider’s control that will prevent the provider from filing the cost report by the 150 day deadline. OPWDD will approve the request if it determines that the circumstances warrant a waiver of the penalty.