New Administrators’ Training Session 5: CCDF Fiscal Management

National Center on Tribal Early

Childhood Development

New Administrators’ Training Session 5:

CCDF Fiscal Management

Tribes with Small, Medium, and Large Allocation

Sizes

September 17, 2020

National Center on Tribal Early Childhood Development 1

Welcome and Introductions


Questions Related to Eligibility and

Equal Access?


Check-in

Have you viewed

your current

Notice of Award?


Session Objectives

Participants will:

◆ Review how the CCDF program is funded

◆ Learn about requirements and timelines for

the use of CCDF funds

◆ Explore the components of a CCDF budget

◆ Explore and practice strategies for successful

fiscal management and budgeting

◆ Explore the Tribal Child Care Management

Systems related to fiscal management


Fiscal Management Systems

6

CCDF grant CCDF budget

Program integrity & accountability

CCDF record keeping and reporting

CCDF Administrator

CCDF fiscal staff

Tribal leaders

National Center on Tribal Early Childhood Development


Tips for New Administrators

by CCDF Administrators

Overview of CCDF

Funding and

Grant Awards


“This is the best grant you can manage. You

have the standards—so use them the way it will fit your program. CCDF knows all programs are

different. Also, call your Program Specialist.

They are helpful. Good luck!”

Feedback gathered during the 2018 Office of Child Care American Indian/Alaska Native Regional

Conferences

Application for CCDF Funds

8

Tribal CCDF Plan

◆ Tribal CCDF Plans (ACF- 118A)

are effective for 3 years.

◆ Serves as Tribal Lead Agency’s

application for CCDF funds by

providing a description of its

childcare program and services

available to eligible families.

◆ Fiscal Year 2020-2022 CCDF

Plan effective October 1, 2019

Child Count Declaration

◆ Child count declarations are

effective for 3 years.

◆ Certifies the number of Indian

children under age 13 (up through

age 12) who reside within the

grantee’s service area.

◆ The Administration for Children

and Families uses the child count

to calculate CCDF grant award

amounts.

Note: P.L. 102-477 grantees do not submit a triennial CCDF Plan but do

submit the child count declaration.


CCDF Funding Award

◆ Funds are awarded on a

Notice of Award letter

◆ By accepting the award,

Tribal Lead Agencies

agree to comply with the

terms and conditions.

9National Center on Tribal Early Childhood Development

For additional information contact

the Office of Grants Management:

https://www.acf.hhs.gov/occ/resource/cont

act-information-for-acf-office-of-grants-

management-staff

https://www.acf.hhs.gov/occ/resource/contact-information-for-acf-office-of-grants-management-staff

Page 2


CCDF Funds

11

Discretionary funds

Child Care and Development

Block Grant Act

Mandatory funds*

Section 418 of the Social

Security Act

Total CCDF allocation

*In Alaska, only the 13 entities defined by the Alaska Native Claims Settlement Act may receive mandatory

funds


Example: FY 2021 Funding


Mandatory

Funds

Discretionary

Funds

(total base and

per-child

amounts)

Discretionary

Base

Discretionary

Per-Child

Total FY 2021

Funding

$201,418 $1,018,458 $30,000 $988,458 $1,219,876

Preparing for the Next Fiscal Year

◆For planning purposes, current Tribal Lead

Agencies should use their funding

amounts from the previous year as an

estimate

◆GY 2021 funding amounts are available on

the Office of Child Care website:

https://www.acf.hhs.gov/occ/data/gy-2021-

ccdf-final-tribal-allocations


https://www.acf.hhs.gov/occ/data/gy-2021-ccdf-final-tribal-allocations

Allocation Size

Requirements for Tribal Lead Agencies are based

on allocation size.


Small

Allocation

Less than

$250,000

Large

Allocation

More than

$1 million

Medium

Allocation

$250,000 to

$1 million

Source: Child Care and Development Fund, 45 C.F.R. § 98.80 (2016).

Note: This is based on your 2016 funding amounts, for new grantees it is based on your first-year

funding amounts https://www.acf.hhs.gov/occ/data/fy-2016-ccdf-final-tribal-allocations

https://www.acf.hhs.gov/occ/data/fy-2016-ccdf-final-tribal-allocations

Questions





Fiscal Requirements


“Know how to set your budget and what needs to be tracked for the end of year report.”


Conferences

Obligation and Liquidation Periods


Fiscal Year FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024

10/1/18 to 10/1/19 to 10/1/20 to 10/1/21 to 10/1/22 to 10/1/23 to

9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 9/30/2024Grant Year

GY2019 obligate obligate liquidate

GY2020 obligate obligate liquidate

CARES Act obligate obligate obligate liquidate liquidate

GY2021 obligate obligate liquidate liquidate

CRRSA Act obligate obligate liquidateARP Act Stabilization

Grant

obligate obligate liquidate

ARP Act Discretionary

obligate obligate obligate liquidate

Spending timeframe

Obligation and Liquidation

◆ Obligation is an action that commits

the funds through a legal binding

agreement, purchase order,

contract, or sub-grant between two

parties for purchase of services,

supplies, or equipment.

◆ Liquidation means the payment of

funds to a third party as a result of

an obligation.


Source: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, 45 C.F.R.

§ 75.2 (2016).

Brainstorm: Obligation

◆ What are some ways

that you can obligate

your CCDF funds?


Allotment and Redistribution

◆ Tribal discretionary funds are subject to

reallotment.

◆ Tribal Lead Agencies must report to the

Secretary of Health and Human Services if

they are unable to obligate all of their funds

the prior year.

◆ Based on the reallotment reports submitted

by Tribal Lead Agencies, the secretary will

reallot Tribal discretionary funds among the

other Tribal Lead Agencies.



Poll 1.

◆Will you liquidate all of your FY 2019 funds

by September 30th?

◆Will you obligate all of your FY 2020 funds

by September 30th?





Fiscal Management

and Budgeting


“Get access to your program’s financial

reports immediately.”


Conferences

CCDF Budget Requirements

23

Administrative Cap

Direct Services

Quality

Nondirect Services

Administrative Costs (all allocations)

• Organization-wide CCDF management and administration

functions

• Maximum of 15% of all expended funds

• Excludes base amount

Quality Spending (all allocations)

• Allowable activities under the CCDF final rule designed to

improve the quality and availability of child care

• 8% of all FY 2020 expenditures

• An additional 3% infant/toddler set-aside for medium and

large allocations starting in FY 2020

• Excludes base amount

Direct Services (medium and large allocations)

• Child care services provided via grants or contracts,

certificates (or vouchers), or Tribally operated centers

• No less than 70% of remaining discretionary funds, after

taking into account funds for quality activities and

administrative costs

Nondirect Services

• Program costs that are not direct services to families,

quality expenditures, or administrative costs



Administrative Costs

◆ Applies to all allocations.

◆ No more than 15 percent of the aggregate CCDF

funds expended from each year’s allotment may be

used for administrative costs.


NOTE: Amounts used for construction and

major renovation are not considered

administrative costs.

NOTE: Discretionary base amount

($30,000) is not subject to the

administrative limitation and is excluded

from the calculation.


FY 2021 Quality Spending Requirements


Quality Spending FY 2017 FY 2018 FY 2019 FY 2020 FY 2021FY 2022

(and ongoing)

% Quality Set-Aside (All) 4% 7% 7% 8% 8% 9%

% Infant-Toddler Set-Aside

(Medium and Large)0% 0% 3% 3% 3% 3%

Total % Quality

(Small)4% 7% 7% 8% 8% 9%

Total % Quality

(Medium and Large)4% 7% 10% 11% 11% 12%

Source: Child Care and Development Fund, 45 C.F.R. § 98.83(g) (2016).

Direct Services

◆ After taking into account funds reserved for

quality activities and administrative costs, Tribes

with medium and large allocation sizes must use

no less than 70 percent of the remaining

discretionary funds to fund direct services.

◆ The discretionary base amount of the CCDF

grant is not subject to this requirement.



Non-direct Services

◆ Program costs that

are not direct services

to families, quality

expenditures, or

administrative costs.


Source: Child Care and Development Fund, 45 C.F.R.

§ 98.65 (2016).

Base Amount

◆ The discretionary

base amount provides

an important source

of funds that can be

used for any costs

that are consistent

with the purposes and

requirements of

CCDF.


Source: Child Care and Development Fund, 45 C.F.R. §

98.83 (2016).

Poll 2. Which cost category would you

use for…

◆Planning, developing, and designing the

CCDF program

◆Determining if a family is eligible for CCDF

◆Training of child care staff

◆Purchasing culturally relevant classroom

materials

◆Paying for child care provided through a

certificate program


Restricted Use of CCDF Funds


◆ This applies to all allocations.

◆ Funds are not to be used for school

tuition for children in grades 1

through 12.

◆ CCDF funds paid to providers

through grants or contracts may not

be used for any sectarian purposes.

▪ Funds provided through child

care certificates may be

expended for sectarian

purposes.


Restricted Use of CCDF Funds, cont.

◆ CCDF funds may not be used as the non-Federal share for other Federal grant programs (unless explicitly authorized by statute).

◆ CCDF funds cannot be used to purchase land or existing buildings.



Construction and Renovation of Child

Care Facilities


◆ Tribal Lead Agencies may use CCDF funds to make

payments for construction or major renovation costs of child

care facilities.

◆ Tribal Lead Agencies, including 102-477 Tribes, must first

request and receive approval before using CCDF funds for

construction or major renovation.

◆ Requests shall be made in

accordance with uniform procedures

established by program instruction.


CCDF Budgeting

◆ Is a document that

plans, categorizes,

and tracks CCDF

program expenses.


Discussion


Do you have a CCDF budget document? What does it look like?

How do you keep track of your budget?

How often do you communicate with your fiscal staff?

Sample Budget Demonstration


Source: Office of Child Care, Administration for Children and Families, U.S. Department of Health and Human Services.

(2019). Budget Activity – Session #5 – Fiscal Operations – Part I. Retrieved from

https://childcareta.acf.hhs.gov/sites/default/files/public/concurrent_session_5_budget_activity.pdf.

https://childcareta.acf.hhs.gov/sites/default/files/public/concurrent_session_5_budget_activity.pdf

Accountability


Compliance with terms of the

grant

Monitoring fiscal operations

DocumentationProgram assets,

property, and income

Improper payments and

recovery

Accountability

Budget vs. Tribal Cost Allocation Plan

37

Tribal Cost Allocation Plan

◆ A document that

identifies, tracks, and

calculates costs that are

spread across the agency

CCDF Budget

◆ A document that plans,

categorizes, and tracks

CCDF program expenses

Both are important to provide control over and accountability for funds,

property, and other assets.


Allowable

costs

must be…

adequately documented

reasonable

allocable

Source: Child Care and Development Fund, 45

C.F.R. § 75.403-405.

Other

• Conform to limitations and exclusions

• Are consistent with policies and procedures and applied uniformly

• Are accorded consistent treatment

• Meet generally accepted accounting principles (except local and Tribal governments)

• Don’t match other federal awards

• Are chargeable and

assignable

• Beneficial and distributed

using reasonable methods

• Necessary to the award

• Recognized as ordinary and necessary

• Comparable to market prices

• Meet sound business practices, including arm’s length bargaining

• Prudent in light of circumstances

• Meet established cost practices and are consistently applied

• Are verifiable from the

nonfederal entities’ records


Discussion

◆Do you utilize any other funding sources

outside of CCDF to support staffing and

operations of your child care program that

could be a part of a Tribal Cost Allocation

Plan?





Fiscal Reporting and

Audit Requirements


“Get to know who you should call with

questions and/or concerns.”


Conferences

Financial Reporting


◆ Annual financial reporting is required for all Tribal Lead

Agencies, except those receiving CCDF funds through a P.L.

102–477 consolidation plan.

◆ Financial reporting is completed via the ACF-696T: A Financial

Reporting Form for CCDF Tribal Lead Agencies.

◆ Tribal Lead Agencies are required to

use the ACF-696T to report

expenditures for the Tribal

mandatory, discretionary, and

construction and renovation

funds issued under CCDF.


ACF-696T Report

The ACF-696T tracks

CCDF expenditures in the

following categories:

◆ Child care services (#4)

◆ Child care administration

(#5)

◆ Nondirect services (#6)

◆ Quality activities (#7)

◆ Construction and

renovation (#8)


Source: Office of Child Care, Administration for Children and Families, U.S. Department of Health and Human Services. (2014).

Child Care and Development Fund ACF-696T financial report (ACF-696T Form). Retrieved from

https://www.acf.hhs.gov/occ/resource/financial-reporting-for-indian-tribes-acf-696t-form

https://www.acf.hhs.gov/occ/resource/financial-reporting-for-indian-tribes-acf-696t-form

Poll 3. Who will be completing your

ACF-696T Report this year?

◆The CCDF Administrator

◆The Tribe’s fiscal or accounting

department

◆Other

◆ I don’t know

◆Not applicable (102-477 Tribe)


Financial Management

Purpose:

◆ To promote sound financial management—

including effective internal controls—with

respect to federal awards, and to establish

uniform requirements for audit



Internal Controls


Fiscal staff roles and

responsibilities

Policies and procedures for fiscal control

Preventing and addressing

fraud, waste, and abuse

Preventing and addressing improper payments

Internal

controls




Management Systems


“Get to know the staff in your

OMB/Accounting Department. Make

them your friends😊”

Feedback gathered during the 2018 Office of Child

Care American Indian/Alaska Native Regional Conferences

Poll 4. Which

systems are

relevant to

fiscal

management?

Child Care Management Systems

Framework


Source: National Center on Tribal Early Childhood Development.

(2021). A guide to implementing the tribal child care management

systems framework. U.S. Department of Health and Human Services,

Administration for Children and Families, Office of Child Care.

https://childcareta.acf.hhs.gov/resource/guide-implementing-tribal-child-

care-management-systems-framework

https://childcareta.acf.hhs.gov/resource/guide-implementing-tribal-child-care-management-systems-framework

American Indian and Alaska Native

CCDF Fiscal Guide


“I wish I had known to read the AIAN

CCDF Resource Guides.”

Feedback gathered during the 2018 Office of Child Care

American Indian/Alaska Native Regional Conferences

This guide can be found at

https://childcareta.acf.hhs.gov/resour

ce/american-indian-and-alaska-

native-child-care-and-development-

fund-guide-financial

https://childcareta.acf.hhs.gov/resource/american-indian-and-alaska-native-child-care-and-development-fund-guide-financial

Check-Out

◆ What questions do

you still have about

fiscal requirements

and management?


Upcoming Session

◆ Session 6:

Introduction to Data

Reporting

◆ Presented in conjunction

with the National Center

on Child Care Data and

Reporting (NCDR)


Before We Meet Again...

◆ Explore the AI/AN CCDF: Guide to Financial

Management, Grants Administration, and

Program Accountability:

https://childcareta.acf.hhs.gov/resource/america

n-indian-and-alaska-native-child-care-and-

development-fund-guide-financial to determine if

you have any remaining questions.

◆ Complete your reflection worksheets


https://childcareta.acf.hhs.gov/resource/american-indian-and-alaska-native-child-care-and-development-fund-guide-financial

National Center on Tribal Early Childhood Development,

A Service of the Office of Child Care

9300 Lee Highway

Fairfax, VA 22031

Phone: 877-296-2401

Email: [email protected]

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http://www.occ-cmc.org/occannouncements_sign-up/

Documents

New Administrators’ Training Session 5: CCDF Fiscal Management