How to Choose an FMS in California's Self-Determination Program

Every participant in California's Self-Determination Program (SDP) must use a Financial Management Service (FMS). It is the only vendored service the program requires, and the regional center pays for it, not your budget. Choosing well matters because the FMS is the company that pays your caregivers and vendors every week of the year.

What an FMS does, and what it does not do

An FMS is a company certified by the Department of Developmental Services (DDS) and vendored by a regional center. Its job is to move money safely. The FMS pays every provider in your spending plan, including the caregivers you hire yourself. It helps with hiring, verifies provider qualifications, directs caregivers to criminal background checks, handles employment and tax compliance, keeps track of your funds so they last the year, and sends you a monthly expenditure report showing what was allocated, what was spent in the last 30 days and what remains.

Just as important is what the FMS does not do. It does not decide how your funds are spent. You do, through your spending plan. It does not approve or deny services. The regional center does that, through your Individual Program Plan (IPP). It does not supervise your caregivers or provide care. If a company tells you it will "approve" your services, it is describing the regional center's job, not its own. See what our role is as an FMS.

The three FMS models

Bill Payer. The FMS pays invoices from vendors and agencies, tracks spending and reports to the regional center. There is no payroll and no individually hired staff.

Co-Employer. You recruit, hire, schedule and supervise your caregivers. The FMS runs payroll, files employment taxes, carries workers' compensation coverage and handles employer compliance. This is the most common model and the usual choice for families who hire their own people. Read more in understanding the Co-Employer model.

Sole Employer. You, or your representative, are the legal employer of record. The FMS acts as your payroll agent: timesheets, paychecks, tax filings and employment records. You may carry your own workers' compensation policy or use the FMS's. This model is often used for skilled nursing or specialized staff.

Our models page lays the three side by side.

Seven questions to ask any FMS

1. Who will I actually talk to? Ask whether you get a named case manager or a call center queue.
2. Is there a portal, and is the budget in it real-time? You should be able to see your budget, invoices, approvals and payment records without asking for a report.
3. How often is payroll? Weekly, every two weeks, or twice a month. Caregivers notice the difference.
4. How are invoices validated? A good answer names the checks: participant, dates of service, service type, service code, rate, authorization, and a duplicate check.
5. What happens when my spending plan changes? Ask what they need from you, how long it takes, and whether they will pay anything before the regional center's updated authorization arrives.
6. How is workers' compensation handled? Under Co-Employer the FMS should carry it. Under Sole Employer, ask whether you must buy your own policy or can use theirs.
7. How many participants do you serve at my regional center? Every regional center has its own forms and practices. An FMS that already works with yours will know them.

DDS recommends interviewing more than one FMS. The DDS FMS contact list is the place to start, and your service coordinator or independent facilitator can suggest names.

Red flags

• No website, or a website that does not say how the company works.
• No named contact. If you cannot get a name and a direct line before you sign, you will not get one after.
• They cannot explain employer burden. Employer taxes, workers' compensation and paid sick leave add a percentage on top of every wage dollar. An FMS that cannot tell you its percentage cannot tell you how many hours your budget buys. See employer burden explained.
• They say they will approve your services. That is the regional center's role.

Timing: when you need to decide

An FMS cannot pay anyone until it has a signed, regional-center-approved spending plan and matching authorizations. Working backwards from your start date:

• Choose your FMS while your spending plan is being written, not after.
• Get the signed and approved spending plan to the FMS by the 10th of the month before the intended start date. That is our deadline; your regional center may set its own, and some ask for FMS paperwork 15 days before start.
• Have regional center authorizations in place the week before the start date.
• Expect two to three weeks of onboarding once documents are in. Missing paperwork extends it.

How Sentinel Four handles this

We are one of the FMS providers on the DDS list, serving 600+ participants across 20 regional centers, with 1,200+ caregivers on payroll. Every family has a dedicated case manager, not a call center. Our secure online portal shows your budget, invoices, approvals and payment records 24 hours a day.

Payroll runs weekly, with paydays every Monday. Invoices are validated against service codes, rates, dates and authorizations, and duplicates are blocked before payment. We offer all three models. Under Co-Employer we carry workers' compensation; under Sole Employer you may use ours or secure your own.

We do not decide how your funds are spent, approve or deny services, supervise your caregivers or provide care.

To start, a signed and approved spending plan must reach us by the 10th of the month before your start date, with authorizations in place the week before you begin. We accept direct referrals from service coordinators and independent facilitators with a draft spending plan, and there is no budget minimum. Onboarding usually takes two to three weeks. Our process page walks through the five steps.