If pass-through expenses exceed the estimate by more than 10%, what must the agency obtain?

If pass-through expenses exceed the estimate by more than 10%, what must the agency obtain?

• A. Written acknowledgement and agreement from the adoptive parents that they will incur the additional expenses.
• B. Authorization from Licensing.
• C. Save the receipt and absorb the cost.
• D. Refund the excess to the client.

Answer: (A)

When actual costs for pass-through items go beyond the initial estimate by more than 10%, the agency must secure written acknowledgement and agreement from the adoptive parents that they will cover the extra charges. Pass-through expenses are costs the agency bills clients for that aren’t profit for the agency, so transparent disclosure and written consent are required before those additional costs are incurred. This protects the adoptive parents from surprise charges and creates an official record of their agreement to the higher costs. The other options don’t provide that documented consent or address how the extra costs are to be handled: licensing authorization isn’t a mechanism for clients’ consent, absorbing the cost ignores the requirement to inform and obtain agreement, and refunding the excess would not give the adoptive parents the agreed-upon authorization to pay more.

When actual costs for pass-through items go beyond the initial estimate by more than 10%, the agency must secure written acknowledgement and agreement from the adoptive parents that they will cover the extra charges. Pass-through expenses are costs the agency bills clients for that aren’t profit for the agency, so transparent disclosure and written consent are required before those additional costs are incurred. This protects the adoptive parents from surprise charges and creates an official record of their agreement to the higher costs.

The other options don’t provide that documented consent or address how the extra costs are to be handled: licensing authorization isn’t a mechanism for clients’ consent, absorbing the cost ignores the requirement to inform and obtain agreement, and refunding the excess would not give the adoptive parents the agreed-upon authorization to pay more.