Child Care Mandatory and Matching Funds of the Child Care and Development Fund (93.596)

Program

93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund

Federal Agency

Agency: Department of Health and Human Services
Office: Administration For Children And Families

Authorization

Social Security Act, Title IV, Section 418, 42 U.S.C 618; Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104-193); Child Care and Development Block Grant Act of 1990, as amended (Public Law 101-508, 42 USC 9858, et seq); Balanced Budget Act of 1997 (Public Law 105-33); and the Deficit Reduction Act of 2005 (Public Law 105-171).

Program Number

93.596

Last Known Status

Active

Objectives

The Child Care Mandatory and Matching Funds are a part of the Child Care and Development Fund (CCDF) program, along with the Child Care and Development Block Grant Act (CCDBG) or Discretionary Funds (see CFDA 93.575). To make grants to States, Tribes, and tribal organizations for child care assistance for low-income families and to: (1) allow each State maximum flexibility in developing child care programs and policies that best suit the needs of children and parents within such State; (2) promote parental choice to empower working parents to make their own decisions on the child care that best suits their family's needs; (3) encourage States to provide consumer education information to help parents make informed choices about child care; (4) assist States to provide child care to parents trying to achieve independence from public assistance; and (5) assist States in implementing the health, safety, licensing, and registration standards established in State regulations.

Types of Assistance

FORMULA GRANTS

Uses and Use Restrictions

Title IV of the Social Security Act appropriates funds (Mandatory and Matching Funds) for the purpose of providing child care assistance. Lead Agencies must use Mandatory and Matching Funds for child care services on a sliding fee scale basis, activities that improve the quality or availability of such services, and other activities that realize the goals of the CCDBG Act. Lead Agencies must ensure that not less than 70 percent of the total amount of Mandatory and Matching Funds are used to provide child care assistance to families who are receiving assistance under the Temporary Assistance for Needy Families program, families who are attempting through work activities to transition off of temporary assistance programs, and families who are at risk of becoming dependent on temporary assistance programs. Not more than five percent of the aggregate amount of CCDF Funds expended by the State (15 percent for Tribes or tribal organizations) may be expended for administrative costs incurred by the State to carry-out all of its functions and duties. The term "administrative costs" does not include the costs of providing direct services. A State shall use not less than four percent of the CCDF Funds to improve child care quality and availability including comprehensive consumer education, activities to increase parental choice, and other activities such as resource and referral services, provider grants and loans, monitoring and enforcement of requirements, training and technical assistance, and improved compensation for child care staff. Except for approved construction of child care facilities by tribal grantees, no Mandatory or Matching Funds may be used for the purchase or improvement of land, or for the purchase, construction, or permanent improvement of any building or facility (other than for minor remodeling and for upgrading of facilities to meet State and local child care standards.) No Mandatory or Matching Funds provided directly to child care providers through grants or contracts may be expended for any sectarian purpose or activity, including sectarian worship or instruction. However, Grantees must give parents the option of receiving vouchers or certificates to allow parents the choice of faith-based or community child care providers. No Mandatory or Matching Funds may be provided for any services provided to students enrolled in grades 1 through 12 during the regular school day; for any services for which such students receive academic credit toward graduation; or for any instructional services which supplant or duplicate the academic program of any public or private school.

Eligibility Requirements

Applicant Eligibility

Eligibility: All 50 States, the District of Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and Federally recognized Tribal Governments, including Alaskan Native Corporations.

Beneficiary Eligibility

Children under age 13 (or, at the option of the grantee, up to age 19, if physically or mentally incapable of self-care or under court supervision), who reside with a family whose income does not exceed 85 percent of the State median income for a family of the same size, and who reside with a parent (or parents) who is working or attending job training or educational program, or are in need of, or are receiving protective services.

Credentials/Documentation

Lead Agencies must operate under a CCDF plan approved by the Administration for Children and Families, and must provide assurances that the grantee will comply with the requirements of the CCDBG Act and all applicable Federal law. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Each Grantee must designate a Lead Agency to which grants are awarded and that is accountable for the use of the Mandatory and Matching Funds provided, the duties of which shall include developing a CCDF plan. In conjunction with the development of the CCDF plan, the Lead Agency must hold at least one public hearing no earlier than nine months before the CCDF plan becomes effective and after at least 20 days of statewide public notice, to provide the public an opportunity to comment on the provision of child care services under the plan. In advance of the hearing, the Lead Agency must make the content of the plan available to the public. The Lead Agency must also coordinate the provision of services under the program with other Federal, State, and local child care and early childhood development programs. Also, the Lead Agency must consult with appropriate representatives of local governments. Tribal Lead Agencies submitting applications for construction must submit an environmental impact assessment. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. A Lead Agency desiring to receive an allotment for a fiscal year is required to submit a two-year CCDF plan to the Administration for Children and Families, as well as, financial and other information necessary for the grants process. Each plan must contain certifications and assurances by the Lead Agency that it will comply with the requirements of the Child Care and Development Block Grant Act (CCDBG). The plan must also include: the designation of a Lead Agency; the provision of assurances regarding policies and procedures as stated in Section 658E(c)(2) of the amended CCDBG; an outline of the proposed use of block grant funds in compliance with Section 658E(c)(3) of the CCDBG; the provision of certification regarding payment rates as stated in Section 658E(c)(4) of the CCDBG; and the establishment of a sliding fee scale. Additional requirements are specified by 45 CFR Parts 98 and 99.

Award Procedure

Grants are awarded after the receipt and approval of an application and plan by the Administration for Children and Families.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time

The Administration for Children and Families will review the CCDF plans for approval and will act on the plans within 90 days.

Appeals

Guidelines for appeals of disapprovals of CCDF plans are specified in regulations at 45 CFR Part 99.

Renewals

CCDF plans must be submitted every two years.

Assistance Considerations

Formula and Matching Requirements

Statutory Formula: Title 45 CFR, Part 98.53.

Matching Requirements: Allocations of the Mandatory Funds are based on a State's Federal share of the expenditures for the now-repealed AFDC-linked child care programs (AFDC/JOBS Child Care, Transitional Child Care, and At-Risk Child Care) in 1994 or 1995, or the average of 1992 through 1994, whichever was greater. A State is not required to expend any State funds in order to receive its share of the Mandatory Funds. The remaining funds are Matching Funds and are distributed based on the number of children under age 13 in a State compared with the national total of children under age 13. To access Matching Funds, a State must obligate all of its Mandatory Funds allotted in a fiscal year and maintain 100 percent of the State's share of expenditures for the former programs in fiscal year 1994 or fiscal year 1995, whichever is greater. Matching Funds must be matched at the applicable FMAP rate, which is the Medicaid Program matching rate. Not less than one percent, but not more than two percent of the total Mandatory and Matching Funds are reserved for Tribes and tribal organizations based on the number of children living on or near tribal reservations or other appropriate area served by the tribal grantee. Tribes and tribal organizations are not required to provide matching funds. The District of Columbia is treated as a State for purposes of receiving its share of Mandatory and Matching Funds. Territories are not eligible to receive Mandatory or Matching Funds.

This program has MOE requirements, see funding agency for further details.

Length and Time Phasing of Assistance

Grant awards are made to Lead Agencies with approved CCDF plans. If Matching Funds are requested, Mandatory Funds must be obligated by the end of the first fiscal year. There is no time limit on liquidation of Mandatory Funds and no time limit on obligation of Mandatory Funds if no Matching Funds are requested. Matching Funds must be obligated by the end of the first fiscal year and liquidated by the second fiscal year. State funds expended toward the Maintenance of Effort requirement must be both obligated and expended by the end of the first fiscal year. Mandatory and Matching Funds awarded to Tribes and tribal organizations must be obligated by the end of the second fiscal year and liquidated by the end of the third fiscal year. Method of awarding/releasing assistance: quarterly.

Post Assistance Requirements

Reports

As specified in 45 CFR Part 98, States must report to the Administration on Children and Families on an annual basis aggregate data on families, children in care, providers, payment methods, and consumer education. Quarterly case-level reports are required to provide data on families, children, and providers, and payment information. Tribes must also provide an annual count of children and families served through CCDF; average hours of service per child by type of care; average monthly payment and co-payments per child; number of children served by income; and supplemental narratives. No cash reports are required. No progress reports are required. States must also submit quarterly expenditure reports. Territories are required to report estimates and expenditures for the Discretionary Fund only on a quarterly basis. States, DC, and Puerto Rico are required to measure, calculate, and report improper authorizations for payments as well as identify strategies for reducing future improper authorizations for payments. One-third of the 50 States, DC, and Puerto Rico must report annually on a three-year cycle. Tribes report expenditures for the Tribal Mandatory, Discretionary, and Construction/Renovation funds. Monitoring is in accordance with 45 CFR 98.90.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Additional auditing may be necessary.

Records

Proper grant accounting records must be maintained.

Program Accomplishments

Fiscal Year 2008: 317 grants were awarded. Fiscal Year 2009: 317 grants were awarded. Fiscal Year 2010: It is anticipated that 317 grants will be awarded.

Financial Information

Account Identification

75-1550-0-1-609.

Obligations

(Formula Grants) FY 08 $2,917,000,000; FY 09 est $2,917,000,000; FY 10 est $2,917,000,000 - These figures do not include CCDF Discretionary Funds under CFDA 93.575. Also excluded are CCDF Discretionary Funds provided by the American Recovery and Reinvestment Act under CFDA 93.713.

Range and Average of Financial Assistance

For States, including DC and Puerto Rico, the range of grants in FY 2009 is: $8,376,985 to $530,439,755; average grant is $94,404,688. For 260 Tribal grantees, the range of grants in FY 09 is: $22,948 to $11,565,378; average grant is $388,006. For the four Territories, the range of grants in FY 09 is $1,885,982 to $3,978,605; average grant is $2,658,851. These figures are inclusive of funds received through CFDA 93.575 and 93.596 but exclude funds provided by the American Recovery and Reinvestment Act (see CFDA 93.713).

Regulations, Guidelines and Literature

These funds are subject to the Child Care and Development Fund regulations at 45 CFR Parts 98 and 99.

Related Programs

93.558 Temporary Assistance for Needy Families; 93.575 Child Care and Development Block Grant; 93.713 ARRA � CHILD CARE AND DEVELOPMENT BLOCK GRANT

Information Contacts

Regional or Local Office

See Regional Agency Offices. Persons are encouraged to communicate with the Child Care Bureau Regional Program Managers (RPM). A list of the RPM's and their contact information is available at www.acf.hhs.gov/programs/ccb/ta/raaddr/program_managers.htm. You may also contact the Child Care Bureau, Office of Family Assistance at (202) 690-6782 or by Fax at (202) 690-5600.

Headquarters Office

Carol Gage Child Care Bureau, Office of Family Assistance, Administration for Children and Families, Department of Health and Human Services
901 D St. S.W., 5th Floor East, Washington, District of Columbia 20447 Email: carol.gage@acf.hhs.gov Phone: 2026906782 Fax: 2026905600

Web Site Address

http//www.acf.hhs.gov/programs/ccb

Examples of Funded Projects

Fiscal Year 2008: See FY 2009. Fiscal Year 2009: Mandatory and Matching Funds are awarded to States via a block grant, which, through their appointed Lead Agencies, make many of the decisions about priorities, policies, and expenditures in achieving goals related to improved family access to quality child care. States are required to commit at least four percent of their CCDF Funds to activities such as consumer education, resource and referral services, provider training, and caregiver recruitment designed to improve child care availability and quality. Fiscal Year 2010: Anticipated results are the same as FY 2009.

Criteria for Selecting Proposals

Not Applicable.