(1) Each participating district shall be entitled to retain all surplus funds in their account at the end of each fiscal year if the participating district submits a plan by April 1 of the current fiscal year and the plan is approved by the department of corrections with input from the cost containment review panel. Surplus funds retained by the participating district must be used by the participating district during the following two fiscal years to fund intervention programs and services for youth in the participating district.

(2) Non-participating districts may not retain any surplus funds in their allocation at the end of a fiscal year. Unused funds in non-participating districts shall be returned to the department.

(3) The department may not release any surplus funds to a participating district until such time as all placements, services, and bills for services have been entered accurately in the CAPS system and a final account balance has been determined by the department for all services which are not paid through the CAPS system. The department shall finalize each participating district's account balance within 180 days after the end of a fiscal year and release the funds to the participating district. The department shall not pay and may not release funds to any participating district for bills presented for payment more than 90 days after the service was rendered.