What are pass-through funds?
Pass-through funds are defined in the 704 Report Instructions as non-title VII funds “that a provider receives on behalf of a consumer that are subsequently issued by the provider directly to the consumer.” They include any funds that are received by the service provider on behalf of the consumer and are expressly designated, by the funding source, for a particular use by or on behalf of the consumer. These funds are either directly passed on to the consumer by the service provider or are expended on behalf of the consumer by the service provider for a specific use determined by the funding source. For example, if a personal care attendant contract stipulates that 20% of the funding must be used to provide a specific number of hours of personal care attendant services for consumers, that 20% would represent pass-through funds. The service provider pays the attendant on behalf of the consumer (who, in turn, may be responsible for hiring and supervising the attendant).
