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

ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

Authorization

42 U.S.C. 618; Social Security Act, as amended; Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 104-193; 42 U.S.C. 9858; Child Care and Development Block Grant Act of 1990, as amended; Balanced Budget Act of 1997, Public Law 105-33.

 

Program Number

93.596

 

Last Known Status

Active

 

Objectives

To make grants to States and Tribes to assist low-income families with child care 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

States must ensure that not less than 70 percent of the total amount of Mandatory and Matching funds from the Child Care and Development Fund are used to provide child care assistance to families who are receiving assistance under a State program under Title IV-A of the Social Security Act as amended by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, 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 5 percent of the aggregate amount of funds used by the State 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 4 percent of the amount of the 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 CCDF 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.)

 

Eligibility Requirements

Applicant Eligibility

All States, the District of Columbia, Federally recognized Tribal Governments, Tribal organizations, and Alaskan Native Corporations.

Beneficiary Eligibility

Children under age 13 (or up to age 19, if disabled 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 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

Grantees (States, Tribes, Tribal organizations, and Alaskan Native Organizations) must operate under a plan approved by the U.S. Department of Health and Human Services, and must certify compliance with all Federal regulations governing the payments under the Child Care and Development Fund.

 

Application and Award Process

Preapplication Coordination

The Chief Executive Officer of each grantee must designate a lead agency, the duties of which shall include developing a plan that must be submitted with the application for a grant. In conjunction with the development of the plan, the lead agency must hold at least one public hearing, after at least 20 days of statewide public notice, to allow 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 units of general purpose local government. This program is excluded from coverage under E.O. 12372.

Application Procedure

Each State or Tribal Government desiring to receive an allotment for a fiscal year is required to submit a State or Tribal plan to the Secretary of Health and Human Services (HHS) for a two-year period, as well as, financial and other information necessary for the grants process. 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 Child Care and Development Block Grant Act of 1990; an outline of the proposed use of block grant funds; the provision of certification regarding payment rates as stated in Section 658E(c)(4) of the Child Care and Development Block Grant Act; and the establishment of a sliding fee scale. Additional requirements are specified by 45 CFR Parts 98 and 99. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure

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

Deadlines

Contact Headquarters Office listed below for deadline dates.

 

Range of Approval/Disapproval Time

Appeals

Guidelines for appeals of disapprovals for State and Tribal Government plans are specified in regulations, 45 CFR Part 99.

Renewals

Plans for States, Tribes, and tribal organizations must be submitted every 2 years.

 

Assistance Considerations

Formula and Matching Requirements

States will receive an amount that is equal to the greater of Federal payments in FY 1994, FY 1995, or the average of FY 1992-1994 for the former AFDC child care, Transitional child care, and At-Risk child care programs. 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 will be allotted based on the proportion of children under age 13 residing in the State and must be matched at the applicable FMAP rate. FMAP is the Medicaid Program matching rate. Up to 2 percent of the total mandatory and matching funds are reserved for Tribes, Tribal Organizations, and Native Alaskan Corporations based on the number of children living on or near tribal reservations or other appropriate area served by the tribal grantee. Tribes are not required to provide matching funds.

Length and Time Phasing of Assistance

Mandatory State funds must be obligated by the end of the first fiscal year, only if matching funds are requested. There is no limit on liquidation. Matching funds must be obligated by the end of the first fiscal year and liquidated by the 2nd fiscal year. Maintenance of effort funds must be both obligated by the end of the first fiscal year and expended in that fiscal year. Tribal funds must be obligated by the end of the second fiscal year and liquidated by the end of the third fiscal year.

 

Post Assistance Requirements

Reports

As specified in 45 CFR Part 98, States must report to the Secretary of Health and Human Services (HHS) annually on data on families, children in care, providers, payment methods, and consumer education. Quarterly reports are required to provide data on families, children, and providers, and expenditure information.

Audits

In accordance with the provisions of OMB Circular No. A- 133 (Revised, June 24, 1997), "Audits of States, Local Governments, and Nonprofit Organizations," nonfederal entities that expend financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Further auditing may be necessary.

Records

Proper grant accounting records must be maintained.

 

Program Accomplishments

In fiscal year 2002, 318 grants were awarded. It is estimated that 318 grants will be awarded in fiscal year 2003 and 318 in fiscal year 2004.

 

Financial Information

Account Identification

75-1515-0-1-609.

Obligations

(Grants) FY 02 $2,717,000,000; FY 03 est $2,717,000,000; FY 04 est $2,717,000,000. (These figures do not include CCDF discretionary funds under 93.575.)

Range and Average of Financial Assistance

For States, including the District of Columbia and Puerto Rico, the range of grants is: $8,504,000 to $516,062,669; average grant is approximately $90 million. For 259 Tribal grantees, the range is: $23,000 to $14,700,000; average grant is $371,000. For four Territories, the range is $1,625,000 to $4,000,000; average grant is $2,600,000. (These figures are inclusive of funds received through 93.575 and 93.596.)

 

Regulations, Guidelines and Literature

These funds are subject to the Child Care and Development Fund Final Rule, issued July 24, 1998.

 

Related Programs

93.558, Temporary Assistance for Needy Families; 93.575, Child Care and Development Block Grant.

 

Information Contacts

Regional or Local Office

Persons are encouraged to communicate with the ACF Regional Administrators. (See Appendix IV of Catalog for addresses of Regional Offices.) Child Care Bureau, ACF. (202) 690-6782; Fax (202) 690-5600.

Headquarters Office

Child Care Bureau, Administration on Children, Youth, and Families, Administration for Children and Families, Department of Health and Human Services, Karen Tvedt, 401-5130. Use same number for FTS.

Web Site Address

http://www.acf.dhhs.gov/programs/ccb

 

Examples of Funded Projects

None.

 

Criteria for Selecting Proposals

Not applicable.