Procedure ED2003 - Cedar Clinic Financial Control
College of Education
Policy Steward facilitating procedure: Dean, College of Education
Table of Contents:
- PROCUREMENT AND ISSUANCE OF TESTS
- RECORDING SERVICES
- PROCESSING PAYMENTS FOR SERVICES
- PROCESSING RETURNED CHECKS
- AUDIT COORDINATION - FINANCIAL AND PROCEDURAL
- RECORDS RETENTION, DISPOSITION AND DESTRUCTION
- CONTACT INFORMATION
- CROSS REFERENCES
The CEDAR (Center for Educational Diagnosis and Remediation) Clinic is where, under close professional supervision, graduate students gain experience working with children with a wide variety of problems. The student staff is observed and closely supervised by Certified Psychologists. The clinic director is a Professional Psychologist who has been granted a Pennsylvania license and has been certified as a Diplomat qualified to practice in the specialty of School Psychology by the American Board of Professional Psychology. Additional supportive services are provided by members of the Speech and Hearing Clinic and consultants in reading, special education and other fields, each of whom hold appropriate licenses or certificates.
Services to children and young adults with learning and adjustment problems are provided by the CEDAR clinic upon referral by parents and/or concerned persons in schools or other agencies. Most referred clients are given a set of tests to provide appropriate information. These may include tests of intelligence, achievement, personality, interest, and/or visual/motor performance.
Fees are charged for clinical services using a sliding fee schedule based upon the ability of the client to pay. The fees are approved by the University Controller. No prospective client will be refused service, however, due to an inability to pay these fees.
This procedure addresses controls related to the collection and reporting of fees, and maintaining a supply of the tests used by the CEDAR Clinic (here-after referred to as the Clinic).
All income is applied against Budget 02-012-36 (School Psychology/CEDAR Clinic), Fund 3094 (Restricted), Object Code 0209 (Fees). Expenses are applied to Budget 02-012-36, Fund 3094 (Restricted), and the appropriate Object Code.
The School Psychology Librarian monitors the quantity of tests that are on-hand in order to determine when more must be ordered. The Librarian prepares a memo addressed to the Director of the Clinic indicating which tests must be ordered and their respective quantities.
The Clinic Director reviews the listings, makes adjustments (if required), initials it (indicating approval), and forward the memo to the Budget Secretary.
The Budget Secretary is responsible for procuring the indicated materials per standard University procedures. The Penn State Purchasing Card could/should be used for purchases whenever possible.
All testing materials are to be delivered to the Librarian who is responsible for comparing the materials received against what was ordered. If a problem with the order is discovered (other than an item being back-ordered), the Librarian notifies the Budget Secretary.
The Librarian must also record the receipt of materials on an Inventory Card (Exhibit "A") for each item received. These cards are maintained in the library and are used to record the receipt and issuance of testing material. One cards exists for each item maintained. The card must indicate a description of the item, quantity and units of measure (i.e., "each", "set," etc.), and whenever an item is received, the card is to be updated to show the quantity received, date received, Purchase Order number, and the vendor from which it was received.
Whenever testing materials are permanently issued (consumed during testing), it is the responsibility of the Librarian to record the issuance on the respective Inventory Card(s). This information must include the quantity issued, the date issued, and to whom the material was issued.
Whenever testing materials are reusable and temporarily issued (such as a test booklet, to be returned after use), the Librarian has the Clinician, who is borrowing the materials, note the due date and sign the respective Sign-Out Card (Exhibit "B") acknowledging receipt of the materials. When the materials are returned, the Librarian initials and dates the card in the presence of the Clinician, acknowledging the return of the materials.
Clients are expected to pay Clinic Fees for diagnostic services on the day their children are seen, and quarterly for other services such as play sessions, parent counseling, or group sessions. Fees may be waived for students of the University and their dependents (but not faculty or staff). Under certain conditions, the fee may be waived altogether. No fees are charged for services to children enrolled in special demonstration classes on campus.
The fee requirement is determined according to the Fee Schedules (Exhibit "C" and Exhibit "D"), which is based upon income and the number of dependents, and is published by the Clinic. The client must complete a Fee Schedule form on or before the initial session and submit it to the Clinic Secretary. The Clinic Secretary notes the reduced fee on the back of the client's Statement of Account (Exhibit "E") which is maintained together with other clients' statements, and files the Fee Schedule in the Client's clinical history folder.
If a waiver of the fee is requested by the client, the matter must be brought to the attention of the Director. The Director decides whether or not to grant the request. If a waiver is granted on a blanket basis such that all services rendered to the client will be exempt from a fee, a notation to this extent is typed onto a line on the front of the Statement of Account. The notation must indicate at least for what period of time the waiver is granted and the reason for the waiver. The Director must sign the Statement of Account next to the notation in order for the waiver to be valid.
Whenever services are rendered after the waiver is granted, a "N/C" (no charge) will be recorded under the "Charge" column on the client's Statement of Account. If a waiver is granted for one visit or a limited number of visits, the specific services and/or dates are to be noted on the Waiver Memo.
If the Director grants a waiver for one or a number of sessions already provided, a credit is issued by the Director. In this case, the particular services to which the credit applies must be delineated on the Statement of Account by the Clinic Secretary along with the amount of the credit. The Clinic Secretary records the amount of the credit under the "Adjustment" column of the client's Statement of Account, along with an appropriate explanation in the "Description Column." The Director must sign the Statement of Account adjacent to the credit in order for the credit to be valid.
The Clinic Secretary is responsible for the recording of all charges on the client's records and for the billing of all outstanding charges not paid at the time of the client's visit to the Clinic.
Using the Clinic's appointment schedule, the Clinic Secretary partially prepares a four-part prenumbered Service Memo (Exhibit "F") in advance of each client's appointment with the client's name and the date of the appointment. After services have been rendered the Clinician completes the Service Memo with the type of service(s) rendered and other pertinent information, and the Clinic Secretary posts it to the related charges based on available information from the clinician and from the back of the client's Statement of Account (which indicates if a reduction of a fee is applicable).
The client is given the "client," "billing," and "insurance" copies of the Service Memo, and the Clinic Secretary retains the "office" copy. The "office" copies are accumulated on a daily basis. Errors involving the recording of dollar amounts on a Service Memo may not be adjusted or corrected, but rather the form is to be voided and retained, and a new Service Memo completed. All Service Memos must be accounted for. Any Service Memos involving clients who were unable to keep their appointment are to be so marked and retained.
The Clinic Secretary uses all of these Service Memos to update each affected client's Statement of Account (Exhibit "E"). After the Statements have been updated, the Service Memos are to be given to the Director, along with that day's appointment schedule.
The Director compares the Service Memos against the appointment schedule to make sure that there is a one-to-one relationship between appointments and memos (while taking into consideration any voided memos). He/She also verifies the sequence of the prenumbered Service Memos to make sure that there are no gaps in the numbers for that day, nor any missing between the last one used from the prior day and the first one used the current day. The Director then returns them to the Clinic Secretary.
The Clinic Secretary files the Service Memos in each respective client's folder.
The Financial Officer is responsible for assuring that the integrity of the numerical sequence of the Service Memos is maintained.
Services may either be paid for at the time the services are rendered, be billed to the client, or be filed as a claim with the client's insurance carrier. The receipt and processing of all payments are the responsibility of the Budget Secretary.
The recording of the payment onto the client's Statement of Account is the responsibility of the Clinic Secretary.
If payment is to be made at the time that services are rendered, the client takes the "client," "billing," and "insurance" copies of the Service Memo (Exhibit "F") to the Budget Secretary along with the payment. The Budget Secretary accepts the payment and notes the amount on all three Service Memo copies. He/She retains the "billing" copy, and the remaining copies are given to the client. Checks must be made payable to "The Pennsylvania State University" and must be immediately restrictively endorsed as outlined in Policy FN01, to the credit of Budget 02-012-36 (School Psychology/ CEDAR Clinic). The payment is recorded on a Daily Receipts Listing (Exhibit "G" or a similar report which itemizes amounts received and to what accounts payments are to be applied), and is deposited. (The recording of the payment onto the client's Statement of Account is discussed later.).
The Clinic Secretary bills clients by sending a photocopy of the client's Statement of Account to those clients who, for whatever reason, did not pay at the time the services were rendered.
When payment is received by mail (all payments are to be remitted to the Budget Secretary), the Budget Secretary will record the payment onto the Daily Receipts Listing, and deposits it appropriately.
The Clinic Secretary shall record the payment onto the client's Statement of Account (discussed later) based on the information appearing on the Daily Receipts Listing provided by the Budget Secretary. (After updating the statements of Account, the Clinic Secretary retains the Daily Receipts Listing.)
The clinic does not process insurance claims, but rather provides the client with the "insurance" copy of the Services Memo (Exhibit "F") so that the client himself/herself can file the claim. The payment of the claim may either be assigned to the Clinic so that the settlement check from the insurance carrier is made payable to the Clinic rather than to the client, or to the client. In either case the client must be held financially responsible, regardless of the anticipated source of the payment, until payment in full is received.
Upon receipt of the payment, it is recorded on the Daily Receipts Listing (Exhibit "G") and deposited accordingly by the Budget Secretary.
He/She records the date received, the amount, and a brief description that includes the source of the payment (i.e., client or insurance carrier) and the check number (if the payment was made by check).
The Financial Officer is responsible for ensuring that procedures pertaining to the accountability and safeguarding of all cash receipts, cash funds, and other assets are established and followed in accordance with approved University policies and procedures. Regular audits relating to advances, cash, travel, equipment accountability, and other expenditures provide a means to protect University assets. The Financial Officer is responsible for working with Internal Audit when audits are being performed in the administrative area, as well as performing an annual audit that is submitted to the Assistant Controller.
Record retention must be managed in accordance with Policy AD35 - University Archives and Records Management, and records schedules approved by the Records Management Advisory Committee, Office of General Counsel, and Office of the President. These retention requirements are the University's retention criteria, either derived or based upon federal, state, and local statute or regulations, industry standards, and business needs. Retention beyond recommended time periods require justifiable reasons and warrant review by the Records Management Officer or designee. All documents must be maintained in such a manner so as to provide ease of access for review, and to provide a suitable audit trail for all transactions.
- Documents subject to a Legal Hold (see AD35, Legal Hold). A legal hold will remain in effect until it is released in writing by the Office of General Counsel.
- Documents under audit or review, either internally or externally. The retention period extends until released by the Corporate Controller's Office. The Financial Officer will be notified regarding any accounts which are under audit; the Financial Officer will be responsible for contacting the department.
Additional questions may be directed to the University Archivist or the Records Management Officer.
- Exhibit A - Inventory Card
- Exhibit B - Sign-Out Card
- Exhibit C - Fee Schedule
- Exhibit D - Contract Fee Schedule
- Exhibit E - Statement of Account
- Exhibit F - Service Memo
- Exhibit G - Daily Receipts Listing
For questions, additional detail, or to request changes to this procedure, contact the College of Education Financial Officer.
- Policy AD22 - Health Insurance Portability and Accountability Act
- Policy AD35 - University Archives and Records Management
- Policy FN01 - Processing Cash Revenues
- Procedure CR2002 - Processing Returned Checks
- Blue/White Shredding Program
Date Approved: 01/17/2000
Most recent changes:
- Revision 1 - 9/3/1999
Revision History (and effective dates:)
- Original - 8/27/1985