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Children’s Long-Term Support (CLTS) Provider Handbook

Section 2: Types of CLTS Program Providers

The CLTS Program uses the umbrella term provider to define the range of entities that can register to deliver services in the program. It is important to know which category of provider entity you are associated with to ensure you are accurately registered, credentialed, and authorized to provide services.

CLTS Program providers at a glance

The CLTS Program recognizes three provider types*:

Agency

Providers who employ one or more individuals to deliver service

Financial management service

Fiscal intermediary that works with families who would like a participant-hired worker

Sole proprietor or independent contractor

Provides services directly and does not employ staff

*CLTS Program recognized provider types and descriptions are specific to the program and may be different than what a provider registers as for tax purposes.

Agencies

An agency is an organization that employs staff to deliver direct services to CLTS participants. The provider agency:

  • Hires, trains, and supervises employees.
  • Assigns staff to participants.
  • Manages payroll, taxes, scheduling, and compliance requirements.

When services are provided through an agency, the agency serves as the employer.

DHS collects certifications, licenses, training materials, and required experience related to the service listed on a provider’s registration. Agencies are responsible for individual training and background checks for their employees.

Financial management service (FMS)

A Financial management service (FMS) is an organization that supports families who choose to direct their child’s services and hire providers not employed by an agency.

The FMS functions as indirect support and does not provide hands-on care for the participant. The FMS assists families by managing employment-related and administrative responsibilities, including:

  • Verifying provider eligibility.
  • Completing required background checks.
  • Processing payroll.
  • Managing employment taxes and required withholdings.
  • Maintaining employment records in accordance with state and federal requirements.

By using an FMS, families can self-direct services while ensuring compliance with applicable regulations.

Within the CLTS Program, families have the authority to self-direct services in the following categories:

  • Daily living skills training
  • Mentoring
  • Personal supports
  • Respite
  • Specialized youth care
  • Transportation

Sole proprietors

A sole proprietor is an individual provider who is self-employed and operates independently. A sole proprietor:

  • Is not owned or employed by a provider agency.
  • Is responsible for their own business operations and tax obligations.
  • May provide approved CLTS services in accordance with program requirements.

DHS completes background checks for this provider type. Sole proprietors are distinct from family-hired employees supported through an FMS.

Glossary