Cash basis accounting is the method in which income is recorded when funds are received, and expenses are recorded when funds are paid out. Because of the nature of foster care maintenance payments, the cash basis is the preferred method of managing children’s income, and DFPS uses this method.

Common Sources of Children’s Income

Children’s income consists mainly of Supplemental Security Income (SSI) and Retirement, Survivors, and Disability Insurance (RSDI), which are both Social Security Administration (SSA) benefits. DFPS serves as the representative payee for a beneficiary who is a minor while the beneficiary is in the managing conservatorship of DFPS.

Time Frame for Payments to Caregivers and Providers

All foster care and kinship payments that DFPS makes to the caregiver are paid in the month following the receipt of funds.

In order to determine the exact payment due to a caregiver or provider, DFPS processes invoices on the 3rd of the month following the month in which the care occurred. For example, foster care for the month of March is paid for in April, using funds received in March. The amount of a foster care maintenance payment to a contracted foster home or facility is determined by the days of service, daily foster care rate, and facility type.

Monthly payments to caregivers or providers come from CIA funds and are mailed no later than the 15th of the month, if there are no billing discrepancies associated with the funds being spent. If the 15th of the month falls on a weekend or holiday, payments are mailed on the previous business day.