1. (1) In order that appropriate maximum State aid reimbursement rates for foster care services provided by authorized agencies, and maintenance services provided in approved schools for the handicapped may be promulgated in a timely manner, authorized agencies and such schools shall submit the required fiscal, programmatic and statistical reports and forms relating to the standards and cost of providing foster care and educational maintenance services to the department prior to November 1st of each year. Agencies and schools which submit completed forms and reports to the department shall be notified in writing by the department if such reports or forms need clarification or supplementation. An agency or school which is so notified will be given an additional 30 days from the date of the notice to submit the corrected forms or reports. An authorized agency or approved school for the handicapped which fails to submit the required forms and reports or submits part but not all of the required forms and reports to the department by November 1st will be deemed to have failed to meet the submittal deadline.
2. (2) If for good cause shown, an agency or school is unable to meet the November 1st deadline, the agency or school may request an extension which must include an explanation of why the extension is needed. This request shall be submitted in writing to the department prior to the November 1st due date. The department may grant an extension of up to 30 days. A further extension may be granted until December 31st, if there are unusual circumstances which are beyond the control of the agency or school and which justify the extension. If the unusual circumstances continue to exist beyond December 31st, the department may grant one- month extensions until the agency or school is able to submit its mandated reports and forms. All extensions granted by the department pursuant to this paragraph shall be forwarded in writing to the appropriate authorized agency or school.

3. (3) Those authorized agencies and schools which are late in submitting the required forms or reports, or fail to respond within 30 days to a written request from the department for additional or clarifying information on forms or reports already submitted, will be subject to a penalty. Such penalty shall result in a reduction in the allowable administrative cost component of the agency's or school's maintenance rate for a specified period of time. The administrative component for family boarding home programs is composed of the same administrative cost accounts as are used in establishing the administrative component for the group foster care programs and approved schools. The amount of the penalty will depend upon the number of days after November 1st which expire prior to receipt of the required reports and forms by the department. The penalties will be determined in accordance with the following schedule:

   Days late	Percentage reduction of reimbursable administrative cost component	Starting date of full rate for authorized agencies	Starting date of full rate for approved schools
   16 – 30 days	10 percent	July 15th	September 15th
   31 – 45 days	20 percent	August 1st	October 1st
   46 – 60 days	40 percent	August 15th	October 15th
   61 – 90 days	50 percent	September 1st	November 1st
   91 – 180 days	60 percent	September 1st	November 1st
   181 – 270 days	75 percent	September 1st	November 1st
   271 – 365 days	90 percent	September 1st	November 1st
   365+	100 percent	September 1st	November 1st

   For those agencies or schools which have not submitted their mandated reports and forms by June 1st, the maintenance rate payable beginning July 1st will be equal to the previous year's maintenance rate minus 90 percent of such rate's administrative component. This reduced rate will continue in effect until a new maintenance rate can be calculated. Upon receipt of the required reports and forms, a new maintenance rate will be calculated and made effective retroactively. A percentage of the administrative cost component of the new rate will be deducted from such rate in accordance with the above-referenced penalty schedule.

4. (4) The department shall start counting the number of days late on November 2nd. For those agencies or schools which are granted an extension by the department pursuant to paragraph (2) of this subdivision, the count will start the day after the extension expires. For those agencies or schools which receive a written request for additional or clarifying information pursuant to paragraph (1) of this subdivision, the penalty count starts on the 31st day after the date of such written request if the requested additional material is not submitted within the 30 days allowed. If the due date falls on a weekend or holiday, the count will begin on the next business day. Every day which qualifies as a late day shall be counted when determining the total number of days that an agency or school is late in submitting the required documentation to the department. The total number of days beyond the date authorized for submitting required reports or forms pursuant to this Part or the date authorized for submitting supplemental information shall be considered in establishing the total number of late days and the amount of the penalty.

5. (b) State reimbursement shall not be made to a social services district on payments for foster care for children in an institution, group residence, group home program, agency boarding home program, foster family boarding home program or on payments for educationally handicapped children in an approved school for the handicapped until the department has promulgated a maximum State aid rate on which State reimbursement shall be made for providing care for a child in such facilities.

   (c) Placements outside of New York State.

   State reimbursement for the cost of foster care for any child provided in an institution, group residence, group home program, agency boarding home program or foster family boarding home program outside New York State shall not exceed the maximum reimbursement level established for the same type of foster care purchased within New York State.

   (d) Community facilities projects.

   Any special foster care project which is financed in whole or in part pursuant to the provisions of title 5-A of article 6 of the Social Services Law (Youth Facilities Improvement Act) and which has entered into a regulatory agreement in the manner prescribed by the department, shall be reimbursed and have its maximum reimbursement level set pursuant to the terms of said regulatory agreement and/or section 410-i of the Social Services Law, subject to the approval of the Director of the Budget.

(a) Submission of forms and reports; penalty.