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Background
The Minnesota Legislature directed DHS to develop and implement a provider cost review for agencies that provide at least one service covered by DWRS (Minn. Stat. §256B.4914, subd. 10a).
We will use the data gathered from DWRS cost reporting to make evidence-based recommendations to the Legislature about the payment rates for disability waiver services. We will collect this data on an ongoing basis to inform policy makers of the cost drivers and allow the DWRS to set rates that:
- Appropriately fund services
- Encourage provider viability
- Ensure service access for people who receive services under the home and community-based services (HCBS) disability waivers.
All agencies that provide DWRS services must submit a completed cost report by the deadline established by DHS. Failure to complete the cost report may result in DHS stopping payment for services.
Reporting begins in 2021, which is the first year in a five-year reporting cycle. All DWRS provider agencies must report at least once during the cycle. DHS will notify agencies if they are required to report in the spring of their reporting year, and they will have through the summer to complete the online cost report. For specific dates, see the schedule below.
A cost report must include 12 months of business costs. The last day of the 12-month period cannot be more than 18 months from the submission day. For most organizations, this period would be their most recently completed fiscal year, whether that be from January through December of the previous calendar year or another definition of a fiscal year.
Cost reports include the revenues and costs associated with providing DWRS framework services. These revenues and costs are everything included within an organization’s Federal Employer Identification Number (FEIN), or tax ID. This may include multiple NPI numbers or service sites, but all costs that are being reported should be under the organization’s one FEIN. DHS asks provider organizations to report only these costs so we can better understand the costs associated directly with providing DWRS services. For more information about what is included in a cost report and how to report it, see the DWRS Cost Reporting Tool Instruction Manual.
Annual reporting timeline
| Date |
Task |
| By March 31 |
Initial notification to provider agencies required to report that year |
| June 1 |
Notification that reporting period is opening |
| Aug. 31 |
Final deadline for reporting |
| Oct. 1 |
Notification of 30 days noncompliant |
| Nov. 1 |
Notification of 60 days noncompliant |
| Dec. 1 |
Notification of 90 days noncompliant and begin stop-payment process |
To find out more about cost reporting and what DHS expects of DWRS providers, see DWRS cost reporting presentation (PDF).
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News/updates
Auditing
DHS is required to conduct audits of randomly selected cost reports for data validity and completeness. DHS began the auditing process in 2023 with internal auditors thoroughly reviewing a sample and requesting additional bookkeeping records to justify costs.
To support ongoing data integrity and auditing procedures, DHS is implementing a series of data validation reviews during the 2024 reporting period of all submitted cost reports to ensure that blatant errors or omissions are caught early. DHS may unsubmit reports that fail these checks but will work with affected providers to edit their reports or clarify their costs.
DWRS direct care worker compensation thresholds requirement
Beginning Jan. 1, 2025, home and community-based Services (HCBS) provider organizations are required to spend a specified percentage of their DWRS revenues to compensate direct care workers. Read more about the new policy on the DWRS compensation thresholds policy webpage.
Upcoming trainings
Visit the DSD training news and information page on TrainLink for news about upcoming Disability Waiver Rate System cost reporting training sessions.
Visit the Disability Services Division Disability Services Division training archive for past trainings and office hours for DWRS cost reporting. To find trainings, search for “DWRS cost reporting” in the keyword search field.
Reporting notifications
DHS notified the provider organizations that are required to report their DWRS costs this year. We sent these notifications via email to authorized agents on March 31 (as defined under Minn. Stat. §245A.02, subd. 5a).
Not all provider organizations are required to report in a year. If an authorized agent has not received a reporting notification, then it is not their organization’s reporting year.
Online reporting system
DHS partnered with Minnesota IT Services (MN.IT) to develop a web-based reporting platform that streamlines the reporting process for providers. This system went live on March 30, 2021. Providers will be able to access the system when DHS notifies them, via their authorized agent, of their year to report.
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Resources
For a quick overview of what you will be reporting, see the DWRS cost reporting overview webpage.
Visit this page for a list of of all DWRS Services.
Reports
Manual
The DWRS Cost Reporting Manual is a step-by-step guide on how to report costs. It includes definitions, plain language explanations and many examples. DHS encourages you to read the manual before completing the report and use the information as a reference while working through it.
Presentations
DWRS cost reporting presentation (PDF)
Workbook
DHS created an Excel-based workbook to help providers plan for their online reporting and do offline work within their organization. Providers can use the DWRS Cost Reporting Manual as they fill out the workbook.
The workbook is for providers’ internal planning purposes only. It does not take the place of the online reporting system. Provider organizations must enter their cost-reporting information into the web-based platform to be considered complete and to meet reporting requirements outlined in statute.
Provider tool kit
Because cost reporting is a new requirement, providers might not have been tracking all of the information DHS asks for in the cost report. Regardless of whether providers have previously tracked these items, providers still must report on them to the best of their abilities.
To prepare for cost reporting, review the DWRS Cost Reporting Manual and workbook to ensure your organization’s record-keeping is adequate for reporting. DHS also created the following tools that may help ensure your organization is ready for cost reporting.
Staff time tracking
The cost report asks about the different types of work on which a staff member/group of staff members spend their time. This can include direct care for multiple types of services and program support time to complete documentation or plan for activities. Use Time-study worksheet, DHS-7190 (PDF) to track working hours in your organization.
Cost tracking
Frequently asked questions
Before reaching out to DHS with questions, review the Frequently asked questions about DWRS cost reporting webpage.
Still have questions?
Email dhs.costreport@state.mn.us with questions or input about DWRS cost reporting at any time.
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Links
