Tuesday, October 27, 2009

No pre-payments allowed by DDA

So, after getting prompt reimbursements for a year for the cost of a 10-lesson prepaid package at the stables for therapeutic horseback riding, I have been informed by the fiscal management agency and a DDA representative that this was not permitted and can not continue. The agency is worried that if any services are pre-paid, then if the services are not actually received during the fiscal year, that a refund will be paid to the person who was re-imbursed. I asked DDA, what if you pay the vendor directly and then any unused lessons will be re-imbursed directly to DDA via the fiscal management agency? The answer is still no. I don't really understand that, but that is the way it is.
So, the result of this ruling for us is that I can continue to pay for the pre-paid lesson packages and get reimbursed for the cost after the lessons are completed, or I can pay a higher price per lesson and pay as each lesson is taken, filing for reimbursements much more frequently than before. Since it would cost significantly more to pay as we go, using much more money from the budget than anticipated, I will carry the cost of the pre-paid lessons for my daughter, but I can see that this policy would either increase the cost of these services or create a financial hardship for a family that has fewer resources than we have to do the same.

Anyway, as you budget for services, realize that you can not take advantage of any cost savings offered by prepayment unless you can wait until all of those prepaid services have been used to apply for re-imbursements. There is no case-by-case considerations or exceptions. It is a blanket policy.