Section 441.153.15. Decategorization services funding pool.

       153.15(1) Creation and composition of pool. The department shall create the decategorization services funding pool for a project by combining funding resources that may be made available to the project from one or more of the following funding sources:

        a.           The project’s allocation of any funding designated for decategorization in a state appropriation. When the general assembly designates a portion of the department’s child welfare appropriation specifically for decategorization services, the designated funds shall be allocated to decategorization project services funding pools. Unless otherwise specified by legislation, the designated funds shall be allocated among decategorization projects based solely on each project’s share of the population of children under the age of 18.

        b.           Child welfare and juvenile justice services funds that are:

       (1)             Specifically designated and committed in writing to the project by the service area manager; and

       (2)             Accepted by the project’s governance board.

        c.           Any juvenile justice program funds that are:

       (1)             Specifically designated and committed in writing to the decategorization project by a chief juvenile court officer; and

       (2)             Accepted by the project’s governance board.

        d.           Any carryover funds available to the project from funding transfers and from operation of decategorization services during the previous state fiscal year.

        e.           Funds made available to the project from any other funding source, such as another state agency or a grant awarded to the project. Funds awarded to the project under this provision may be subject to specific conditions, reporting requirements, and expenditure limits specified by the entity that awards funding.

       153.15(2) Use of funding pool. A governance board shall use the funding pool in accordance with the following requirements:

        a.           The funding pool shall be used to provide services that meet at least one of the following criteria:

       (1)             Services are flexible;

       (2)             Services are individualized;

       (3)             Services are family-centered;

       (4)             Services are preventive;

       (5)             Services are community-based;

       (6)             Services are comprehensive; or

       (7)             Services promote coordinated service systems for children and families in order to reduce the use of restrictive approaches that rely on institutional, out-of-home, and out-of-community care.

        b.           The governance board may use the funding pool for enhancements to the child welfare and juvenile justice service systems within the project.

        c.           The funding pool shall not be used for any of the following services:

       (1)             Institutional services;

       (2)             Out-of-home services; or

       (3)             Out-of-community services.

        d.           The funding pool shall be expended in accordance with statutes and rules regarding vendor solicitation and service contracting, including Iowa Code chapter 8 and department of administrative services rules at 11—Chapters 106 and 107, Iowa Administrative Code.

       153.15(3) Designation and transfer of department funds. A service area manager may choose during each state fiscal year to designate and transfer a portion of the service area’s child welfare and juvenile justice service allocation to a decategorization project’s funding pool. When designating funds, the service area manager and the governance board shall follow these procedures:

        a.           The service area manager shall provide written notification of any funding designations to the governance boards within the service area by June 1 of the state fiscal year. The service area manager shall specify any special terms and conditions of the funding designation in the written notification to the governance board.

        b.           The governance board shall consider the offer of designated funding and provide written notification of acceptance or rejection to the service area manager by June 30 of the state fiscal year.

        c.           If the governance board accepts the designated funding, the funds shall:

       (1)             Be transferred to the project’s decategorization services funding pool; and

       (2)             Be under the sole management authority of the governance board, subject to any special terms and conditions agreed to by the governance board.

        d.           Any funding from such transfers that remains unencumbered or unobligated at the close of the state fiscal year shall be carryover funding in accordance with subrule 153.15(5).

       153.15(4) Designation and transfer of juvenile justice funds. A chief juvenile court officer may choose to designate and transfer a portion of the judicial district’s juvenile justice program funding to a decategorization project’s services funding pool. When designating funds, the chief juvenile court officer and the governance board shall follow these procedures:

        a.           The chief juvenile court officer shall provide written notification of any funding designations to the governance boards within the judicial district by June 1 of the state fiscal year. The chief juvenile court officer shall specify any special terms and conditions of the funding designation in the written notification to the governance board.

        b.           The governance board shall consider the offer of funding and shall provide the chief juvenile court officer with written notification of acceptance or rejection of the funding by June 30 of the state fiscal year.

        c.           If the governance board accepts the designated funding, the funds shall:

       (1)             Be transferred to the project’s decategorization services funding pool; and

       (2)             Be under the sole management authority of the governance board, subject to any special terms and conditions agreed to by the governance board.

        d.           Any funding from such transfers that remains unencumbered or unobligated at the close of the state fiscal year shall be carryover funding in accordance with subrule 153.15(5).

       153.15(5) Carryover funding. Funds allocated to a decategorization project from a legislative appropriation for decategorization services and funds designated and transferred to a decategorization project’s funding pool that remain unencumbered or unobligated at the close of a state fiscal year are referred to as “carryover funding.” The following procedures shall apply to the determination and use of decategorization carryover funding:

        a.           Upon the close of a state fiscal year, the department shall determine the exact amount of funding that is unencumbered or unobligated in each project’s decategorization services funding pool. The department shall collaborate with governance boards to reconcile expenditure records and determine the amount of carryover funding for each decategorization project.

        b.           Before December 15 of each state fiscal year, the department shall provide each governance board with written notification of the official amount of carryover funding available from the previous state fiscal year.

        c.           Carryover funding shall not revert to the state general fund but shall remain available to the governance board until the close of the succeeding state fiscal year.

        d.           Carryover funding shall be under the authority of the project’s governance board. These funds shall be available for expenditure for child welfare and juvenile justice systems enhancements and other purposes of the project as determined by the governance board.

        e.           Any carryover funding not expended by a decategorization project by the close of the succeeding state fiscal year shall revert to the fiscal authority of the department. The department shall return these funds to the state general fund.