DI 39503.903 Items of Consideration for DDS Budget Preparation
National workload projections are currently available for FYs 1987 and 1988 only. Actuarial projections for FY 1989 are not available at this time. Therefore, in preparing your budget request, you should use the FY 1988 workload data for FY 1989 as well. These workload projections are subject to change due to updates and revisions by the actuary. In addition, the availability of resources may affect the continuing disability review estimates.
Workload projections are reflected in DI 39503.906. Your regional office will provide workload estimates for your State. Federal Medicare claims are included in the title II initial claims category and represent 500 cases nationally in each fiscal year. The projected overall workloads indicate that pending cases will decline nationally through the end of the fiscal year.
Your workpower analysis will be your agency blueprint for maintaining and improving on the productivity levels attained during the latter half of FY 1986 and during FY 1987. Each initiative for workload simplification/process streamlining must be accurately evaluated for impact on productivity. This will require a rigorous analysis of each aspect of your workflow using workpower analysis and workpower measurement techniques, as appropriate, to determine work-year changes from year-to-year.
We believe the stability of the workload during the budget cycle will be paralleled by stability of the workforce, disability legislation and adjudication policy. These conditions should lead to significant productivity increases in each year of the budget cycle. A national productivity-per-workyear level of 205 cases for FY 1988 and FY 1989 has been projected. Your resource planning for the budget request should be consistent with these projections.
While staffing levels should generally remain relatively constant over the budget period, examination and review of the mix of employees offers an opportunity for productivity improvement and cost containment. To that end, you should carefully review the agency's needs with regard to administrative and management staffs in relation to operational staffs. You should plan for the most cost-effective ratios consistent with program objectives.
D. Cost Effectiveness Measurement System (CEMS)
During FY 1987, the DDS CEMS will become available to managers at all levels and will be fully integrated into existing management processes. Sufficient trained staff should be maintained to input and utilize CEMS data, including:
proper reporting and input;
production of management information; and
use of modeling techniques.
E. Medical development
Medical development expenditures offer the greatest opportunity for DDS management control. The development of medical evidence of record sources should be fully considered prior to securing consultative examinations (CEs). In addition, your budget should reflect the cost containment initiatives associated with the CE oversight process and local initiatives for cost-effective medical development practices in support of accurate medical determinations.
F. Disability Hearings Units (DHUs)
A separate budget is required for those States that will have established DHUs in FYs 1988 and 1989. On a national basis, productivity for the DHU's has been projected at 256 cases. This productivity level includes the activities of the hearings officer and all support personnel.
G. Nonpersonnel services
Your budget should fully document each element of cost in the “other cost” category. Each cost element should be related to the goods/services purchased where possible, e.g., rental costs related to square footage; equipment to type; and telephone costs to caseload.
You should include a complete cost analysis and justification for any nonrecurring costs (such as decentralization, systems acquisitions, equipment purchases, moving costs, or special projects) in excess of $200,000 or 1 percent of your budget, whichever is less.