Bureau of Child Care and Development (BCC&D)
Program Manual FY 2017

  1. I. INTRODUCTION/DEFINITIONS
  2. II. POLICY AND PROCEDURES
  3. III. CONTRACT/AMENDMENT PROCEDURES
  4. IV. DELIVERABLES/COSTS/PAYMENT
  5. V. PROVIDER RESPONSIBILITIES
  6. VI. DEPARTMENT RESPONSIBILITIES
  7. VII. SUPPORT SERVICES
    1. A. Training Manager-Training and Technical Assistance
    2. B. Technical Assistance - Program Support and Operations
  8. VIII. BILLING
  9. IX. PROGRAM MONITORING
    1. A. Purpose
    2. B. Child Care Program Field Review Objectives
    3. C. Monitoring Procedures
  10. X. PROGRAM BUDGET
  11. XI. Applicable Laws and Rules
  12. XII. Method of Payment
  13. XIII. Reporting Requirements
  14. XIV. Special Conditions
  15. XV. Data Sharing Agreement

I. INTRODUCTION/DEFINITIONS

  1. The Bureau of Child Care and Development (BCC&D) administers child care programs statewide with a goal of ensuring that high quality child care services are available, affordable, and meet standards appropriate for the healthy development of Illinois children.
    Illinois implemented a new, income-based child care system for working families on July 1, 1997. The Child Care Program combines state and federal funds, along with parent fees, to serve low-income working families that meet income and/or education/training guidelines. These services are crucial to low-income families, especially those who have transitioned, or are transitioning, from welfare to work. The Child Care Program ensures that parents have the supportive systems they may need to obtain and maintain productive employment.
    Child care services in Illinois are provided through a system of government agencies, not-for profit agencies, regional resource and referral agencies, community child care facilities, and organizations representing the interests of children, families and providers. These groups are not only involved in the delivery of services to children and their families, they influence the availability, quality and affordability of services.
  2. Following are definitions of the site administered program funded by BCC&D and commonly used terms.
    • Address Indicator - A one or two digit alpha/number assigned by BCC&D, immediately following the vendor number, used to identify the different addresses, including the payment address and multiple locations of the provider.
    • Applicant -The parent (or other primary adult caretaker who is responsible for the child(ren) when the parent(s) is not available due to special circumstances) who signs a request/application for child care assistance.
    • Application (IL444-3455) - Child Care Application. The initial form completed by any person applying for the Child Care Assistance Program.
    • Approval Form - Approval of Request for Child Care Payments (IL444-3455A) - Form, generated by the Child Care Management System (CCMS), notifying the client and provider that the child(ren) has/have been approved for the Child Care Assistance Program (CCAP).
    • BCC&D - Bureau of Child Care and Development - This is the bureau, within the Illinois Department of Human Services (IDHS), assigned to administer the Child Care Assistance Program (CCAP).
    • Cancellation Notice - See Notice of Cancellation For Child Care Payments.
    • CARS - Consolidated Accounting and Reporting System - The accounting system employed by IDHS for the payment of all bills.
    • CCAP - Child Care Assistance Program
    • CCMS - Child Care Management System - The web-based, electronic data management system used by IDHS to store information for the child care program and assist in determining family eligibility.
    • CCR&R - Child Care Resource and Referral agency - Contracted agencies that manage the child care programs for families and providers that are in their Service Delivery Areas.
    • COI - Change of Information (IL444-3527) - This form is completed by CCAP families and used by Site Administered providers to change client information during an eligibility period.
    • Certificate Child Care - The portion of IDHS Child Care Program managed by the Child Care Resource and Referral (CCR&R) agencies. CCR&Rs determine family and provider eligibility for the CCAP, make referrals for appropriate child care, determine eligibility and make payment arrangements with providers.
    • Child Care Collaboration Program - The Child Care Collaboration Program was created to facilitate high quality collaborative arrangements between Child Care and other early care and education providers and/or funding streams. It is enabled by Child Care Administrative Rule, Sections 50.610-650.
      The benefits of becoming an approved Child Care Collaboration include the ability to take advantage of the following child care rule exceptions, for families approved in the collaboration:
      • Annual redetermination of family eligibility;
      • Using a ninety-day job loss grace period; and,
      • Maintaining indefinite eligibility for families whose current TANF Responsibility & Service Plan specifies the child or family's participation in the collaboration.
    • Child Care Assistance Program (CCAP) - The Child Care Assistance Program (CCAP) administered by BCC&D that provides subsidy assistance for child care for working families at or below 185% of the federal poverty level. The program will also ensure services to working families receiving Temporary Assistance for Needy Families (TANF), non-TANF families in approved education/training programs, families receiving TANF who are participating in IDHS approved education/training activities, and teen parents in high school or GED programs.
    • Child Care Provider - Providers of the Child Care Assistance Program (CCAP) services who receive payment through IDHS.
    • Child Care Rate Certification Form (IL444-4469) - A form, to be submitted annually with the site administered contracts, that identifies the rates to be charged to IDHS and the rates charged for the same services to private pay families. At no time may a Child Care Provider charge more for the Child Care Assistance Program (CCAP) than for private pay families.  Site Administered Child Care Providers cannot charge the Child Care Assistance Program (CCAP) families higher than the maximum rate for regular child care services (excluding fees). Site Administered Child Care contracts will not be processed without this completed form.
    • Contract Address - Generally the administrative address of the provider. All provider payments will be sent to this address.
    • Co-Pay/Co-Payment/Parent Co-Pay - The Site Administered provider will assess and collect parent co-payments (parent's share of the payment) as required by Department Policy 04.02.01 of the Bureau of Child Care & Development CCAP Policy Manual. The assessed parent co-payment shall be deducted by IDHS from the total charged for services at the time of payment. It is the child care provider's responsibility to collect the amount of assessed co-payment. CCR&Rs assess co-payment amounts for families participating in the Certificate Program.
    • Co-Pay Worksheet - Co-Payment Calculation Worksheet - The document used in determining client eligibility to calculate income and the parent's share of the payment for child care services.
    • Data Sharing Agreement - A data-sharing agreement is a formal IDHS contract that clearly documents what data are being shared and how the data can be used. All child care providers are required to have signed, executed copies of all required data sharing agreements on file with BCC&D.
    • Denial of Request for Child Care Payment (IL444-4179) - The form given to a client when they are deemed ineligible for the Child Care Assistance Program (CCAP).
    • Extended Hour Child Care - A rate add on for Site Administered care provided before 6:00 a.m. and/or after 6:00 p.m. and on Saturdays and Sundays. Care must be given for at least two (2) hours in this extended time frame to qualify for the add-on. This add-on rate is available to programs who have received prior approval from IDHS, either through the FY98 expansion process or the pilot program. The add-on rates are $3.00 per day for children under 2 years of age and $2.00 per day for children 2 years of age and older.
    • Family - The applicant, his or her spouse, and the biological, adoptive, or stepchildren of the applicant or his or her spouse under the age of 21 living in the same household. Family must also include the child for whom care is requested, the child's dependent blood-related and adoptive siblings, and the child's and sibling's parents living in the same household. The family may include in his or her family other persons related by blood or law to the applicant or his or her spouse living in the same household if they are dependent upon the family for more than 50% of their support, if including these individuals would be beneficial for the family. The family may also include in his or her family a child of the applicant or his or her spouse under the age of 21 who is dependent upon the family for more than 50% of his or her support and who is a full-time student away at school, provided he or she has not established legal residence outside of the family household, if including this individual would be beneficial for the family.
    • Families Experiencing Homelessness - means families who lack a fixed, regular, and adequate nighttime residence.
    • Fees for Additional Services - Any other service fees, special fees or additional charges of any type for regular child care services to IDHS subsidized clients. These fees may not be imposed by the Site Administered Child Care provider. Fees for alternative services, such as transportation, swimming, special instruction, or late charges may be assessed to the client if all enrolled families receiving services from the child care provider are charged equally. A written notice listing optional services must be provided to all parents before activities are rendered and such services must be offered on a voluntary basis. The child care provider will ensure that these special service fees do not represent costs associated with the provision of services to non-subsidized clients. The child care provider certifies that the rates do not exceed the rates for the same or substantially similar services to non-subsidized clients.
    • Full-Time Child Care Rate - The rate for eligible child care that is five (5) or more hours each day.
    • GRF - General Revenue Funds allocated by the State of Illinois used to operate the child care program.
    • Grace Periods - The temporary periods of time when, in occasional circumstances identified in Policy 02.04.01 of the Bureau of Child Care & Development (CCAP) Program Manual, the Child Care Assistance Program (CCAP) parent may need continued child care services but is not working or in school. In order to protect the child(ren) from losing his/her/their space (and moving to another provider), exceptions or "grace periods" may be allowed as described in the CCAP Program Manual.
    • HSCCMS - The data system used by IDHS to enter and track provider payments for the Child Care Assistance Program.
    • IDHS - Illinois Department of Human Services.
    • IES - Illinois Integrated Eligibility System, a computer system for medical, SNAP and cash benefits eligibility determination and case management to replace AIS, ACM, IPACS, VIS and the CDB.
    • Improper Payments - Improper Payment means any payment that should not have been made or that was made in an incorrect amount (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; and includes any payment to an ineligible recipient, any payment for an ineligible service, any duplicate payment, payments for services not received, and any payment that does not account for applicable discounts.
    • Income Guidelines (IL444-3455B, Important Parent Co-Payment Information) - A form developed by IDHS and used by Site Administered Child Care providers and CCR&Rs, to determine the family income limits for eligibility and amount of co-payment a client must pay for the Child Care Assistance Program (CCAP).
    • Income Eligible - When the combined gross monthly base income (earned and unearned) of all adult family members is at, or below, the income guidelines as stated in the current IL444-3455B.
    • Infant - A child whose age is 6 weeks through 14 months.
    • IPACS - Illinois Public Aid Communication System - Which includes the Automated Client Inquiry Database (ACID), the Key Information Data System (Child Support information) and the Automated Wage Verification System (Department of Labor and Employment Security information that can provide information about a family that has been collected by other State agencies and offices. By using all accessible information, determining eligibility and income can be a more accurate process.
    • Location - A term used to identify the physical location of a provider. Generally used for providers with more than one location.
    • Monthly Enrollment Report (MER) - The billing form used by Site providers to request payment for eligible children.
    • Multi-Site Form - Form used when a client has children at two different Site providers.
    • Multi-Site/Transfer Case Information - One of three documents to be completed and agreed upon by Site providers for a client using more than one Site provider (no CCR&R providers) for child care. The other two documents to be completed are the Shared Case Parent Co-Payment Worksheet and Shared Case Schedule. This document must have all appropriate signatures.
    • Network Providers (Home or Center) - An entity that provides supplemental services including, but not limited to, payments, lending library, assistance with licensing, referral to available care within their network and administrative oversight to a group of child care homes or centers.
    • Notice of Cancellation for Payment (IL444-4178) - The form given to a client when their case has been cancelled because they are deemed no longer eligible for the Child Care Assistance Program (CCAP).  Child care providers are also given a copy of this notice when it is issued to the family.
    • OCA - Office of Contract Administration - The office, within IDHS, responsible for the execution of all IDHS contracts and two party amendments.
    • Parents - Applicants or recipients of child care services, including the child's custodial biological, adoptive, stepparent, legal guardian or caretaker relative within the fifth degree of kinship.
    • Part-Time Child Care Rate - The rate for eligible child care that is less than five (5) hours each day.
    • Program Support and Operations - The office, within BCC&D, that is responsible for processing all Bureau contracts, payments, eligibility determinations, and MIS issues.
    • QRIS - Quality Rating and Improvement System - The quality rating and improvement system (QRIS) was started on July 1, 2007 to provide an add-on to help off-set the additional costs of providing quality child care. Provider participation in QRIS, above the licensing level,  is voluntary. The system offers progressive levels which license-exempt and licensed family child care providers and licensed centers can achieve. Specific quality criteria or standards must be met to achieve a level depending on the type of care provided. Once a provider has met the required criteria for a level, a certificate is awarded and a quality add-on rate to the CCAP standard daily reimbursement rate may be available. Three Circles of Quality are available for licensed programs to apply for, with add-ons ranging from 10%-15%. License-exempt home providers can apply at one of three Training Tiers, with add-ons ranging from 10%-15% at the two highest levels. The QRIS application process is administered by the Illinois Network of Child Care Resource and Referral Agencies (INCCRRA). Additional information can be found at www.excelerateillinoisproviders.com.
    • RAI - Request for Additional Information (IL444-4480) - The form used by CCAP to request additional, clarifying, or missing information from a provider and/or client. CCAP staff working through a Site Administered provider contract must issue this form to applicants and/or clients when additional information/documentation is needed to determine eligibility.
    • RSP - Responsibility and Service Plan (IL444-4003) - The form developed for each TANF client and approved by the client's IDHS caseworker. This form is required for certain situations, as described in Policy 01.03.03, and RSP Process Memo dated 12/19/2012, of the Bureau of Child Care & Development Policy Manual.
    • Rates - The maximum Child Care Payment Rates, per age group, per type of care, per geographical area, which can be charged for the Child Care Assistance Program (CCAP) services. Providers may charge for the Child Care Assistance Program (CCAP) families up to these maximums provided they do not charge more for subsidized children than they do for private pay families. Site Providers also cannot charge the Child Care Assistance Program (CCAP) families higher than the maximum rate for regular child care services (excluding fees). Child care providers who offer scholarships, sliding scale rates, fee reductions to families with more than one child in the facility and weekly rates that are lower than the daily rate must keep in mind that at no time may they charge the State of Illinois more for the Child Care Assistance Program (CCAP) than they do for private pay families.
    • Rede - Request for Redetermination Information (IL444-3455E) - The form an approved client completes in order to continue child care after the current eligibility approval period expires.
    • SAMER - Site Administered Monthly Enrollment Report (ILL444-3492C) - This is the billing form generated from the HSCCMS each month, used by Site Administered Child Care Providers, listing the eligible cases and children for each provider location and funding source.
    • School-Age Child - A child whose age is five (5) years to thirteen (13) years and is attending school. This term includes five year old children enrolled in Kindergarten.
    • School-Age Child Care Rate - The rate for eligible child care for school-age children before and/or after school. For agencies operating school age programs, the interpretation of a full time rate for school age children is care provided from 5 through 12 hours per day. This may be a combination of before school and after school care. Children meeting this criteria may be billed for the full-day rate. Anything less than 5 hours of care per day, regardless of the time frame, is subject to the part day/school-age day rate. The parents' work/school schedule must support the hours the child is in care. Child care providers may not charge IDHS more than they charge private pay families for the same care, nor may Site Child Care Providers exceed the maximum Child Care Payment Rate. Sites also may not charge the Child Care Assistance Program (CCAP) families higher than the maximum rate for regular child care.
    • Shared Case - A case where a child attends more than one child care provider or children from the same family attend different child care providers, being any combination of multiple site providers and CCR&R providers. When a family has requested both a Site provider as well as a Certificate provider, the CCR&R will manage the entire case. If two Site providers share a case, the Site that would receive the higher monthly payment will manage the case.
    • Site - A term used to identify a Site Administered Child Care provider and/or the physical location(s) of a provider who contracts with IDHS.
    • Site Administered Child Care - The portion of the IDHS Child Care Assistance Program managed by licensed child care providers and/or networks. This portion of the Child Care Program was formerly known as Low Income.
    • Site Administered Child Care Providers - Department of Children and Family Services (DCFS) licensed child care providers and licensed and license exempt networks who contract directly with IDHS. They are responsible for determining family eligibility and assessing parent co-pays.
    • Special Needs - A rate add-on for Site Administered Child Care provider allowable for children with documented special needs that cause an increase in the cost of care provided. Eligibility is determined for an individual child based on his/her documented needs, other funding available to the child care provider, and the capacity of the child care provider to meet these special needs. The child and family must be determined eligible for the Child Care Assistance Program (CCAP) and submit an application with appropriate documentation to qualify for the program. Prior approval  must be received from IDHS for each individual child. This approval will be given on an INDIVIDUAL basis. Eligibility will begin the first day of the month following approval. Rates will not be retroactive, nor will they be prorated for a partial month. Application form can be requested from BCC&D Staff.
    • Subsidized Child Care - The Child Care Assistance Program (CCAP) - Child Care costs for eligible low income families paid by IDHS. A parent co-payment is assessed to families who are determined eligible for this service.
    • Supplemental - Supplemental Request-Site Administered Child Care - The form necessary to request additional payment for a past service month. Supplemental payments may be requested for cases which were omitted and/or could not be paid with the original payment request.
    • TANF - Temporary Assistance for Needy Families
    • TANF Assistance Unit - Consists of the members of the household included in the TANF cash grant.
    • Teen Parent - A custodial parent whose age is between thirteen (13) and nineteen (19) years and who is enrolled in high school or a GED program.
    • Toddler - A child whose age is 15 months up to two (2) years.
    • Transfer Case Information - Form used when a client changes providers from a CCR&R to a Site Administered Contract provider or vice versa. This document must have all appropriate signatures.
    • Travel Time - The time it takes a parent to travel between the child care provider and other approved activities, e.g. employer or training program.

II. POLICY AND PROCEDURES

For contracted providers that are responsible for determining a family's eligibility to participate in the Child Care Assistance Program (CCAP), policies and procedures can be found in the Bureau of Child Care & Development Child Care Assistance Program (CCAP) Policy Manual. CCAP Manual updates are sent via e-mail to Site Administered child care providers when policies or procedures are changed to enable providers to implement the change in a timely manner. The Child Care Assistance (CCAP) Policy manual is located on the IDHS website at http://www.dhs.state.il.us/page.aspx?item=9877 or by going to the IDHS Home Page at http://www.dhs.state.il.us.page.aspx? and clicking the About DHS tab, then Publications in the box, then Manuals, Family and Community Services Manuals, and then Child Care Program Manual in the related links box on the right of the page.

Policy clarifications can be requested from BCC&D policy staff. The inquiry must include the case name, case number, policy number, whether the question is case specific or general, and a brief but detailed description of the situation, question or problem. The Site Provider can request through a Policy Clarification work item in CCMS or be e-mailing DHS.CCAP.Policy@Illinois.gov. Requests should be addressed to the CCAP Policy Manger. Policy staff are committed to responding within forty eight (48) hours of receipt of a request. Responses which require input or expertise of staff in other Bureaus of IDHS may take longer.

Use the Child Care Assistance Program Resource Guide for Determining Eligibility to help ensure consistent application of IDHS policy by CCR&R and Site Administered program staff members when determining eligibility for challenging cases. The Child Care Assistance Program Resource Guide for Determining Eligibility can be accessed at http://www.dhs.state.il.us/page.aspx?item=33514.

Information regarding the Child Care Program can be obtained by Accessing the Administrative Rule on the Web. The Administrative Rule is located at the following website: http://www.ilga.gov/commission/jcar/admincode/089/08900050sections.html.

Or from the DHS Home page at http://www.dhs.state.il.us/page.aspx by hovering your pointer over About DHS and selecting Publications, Administrative Rules, Division of Family and Community Services, Title 89 Illinois Administrative Code, Part 50 - Child Care.  Click on this section to access Administrative Rules pertaining to Child Care.

III. CONTRACT/AMENDMENT PROCEDURES

A.  Contract Procedures

The Bureau of Child Care and Development contracts are available through the CSA (Community Services Agreement) Tracking System each spring. The Office of Contract Administration will notify all registered providers of the contract availability via e-mail. The e-mail will also contain instructions for submission of the contract signature page.

B. Amendment Procedures

Requests for changes to the contract are to be submitted in writing to BCC&D. Requests for a change to the contract amount are reviewed by BCC&D staff. If the increase/decrease appears warranted, BCC&D staff will obtain the necessary approvals, make the changes in the Department's CARS accounting system and forward it to the Office of Contract Administration for approval. During this process, payments are temporarily suspended until approval of the increase/decrease is granted by the Office of Contract Administration. The increase/decrease is then forwarded to the Illinois Office of the Comptroller for filing.

Requests for a change in the contract terms require a formal, two party signed amendment. BCC&D staff will obtain the necessary Department approvals, and the amendment will be made available on the CSA Tracking System for downloading. An e-mail will be sent to the provider with instructions for returning the amendment signature page to OCA. BCC&D contract staff will make the changes in the Department's CARS accounting system and forward the amendment, and Department approval form, to the Office of Contract Administration for execution.

IV. DELIVERABLES/COSTS/PAYMENT

All contractors must have a community outreach plan which includes a detailed description for notifying the community of the program, hours of operation, and admittance/eligibility requirements into the program(s) they administer for IDHS. Each contractor must have available for inspection linkage agreements or memorandums of understanding with other community service agencies, IDHS Family and Community Resource Centers, and other outreach entities. IDHS must approve any publication and distribution of flyers, printed materials and brochures that are part of the IDHS funded program. All contractors must have a referral process that assists program participants with enrollment into public benefit programs such as TANF, Food Stamps, All Kids medical and disability assistance, as well as other resources that address the needs of the population targeted for service.

All Child Care providers will review their contract exhibits for specific deliverables and requirements.

V. PROVIDER RESPONSIBILITIES

Each provider shall be responsible for the deliverables outlined in the Exhibits of the contract.

On-Site Legacy System Support

  • All child care providers are required to have all required current, signed and executed copy of the IDHS Data Sharing Agreements on file.
  • Each provider shall designate a minimum of two Subject Matter Experts (SMEs) to participate in the planning, implementation, testing, and training of upgrades and enhancements of computer systems and databases used as part of the CCAP process. CCAP staff shall participate in information gathering sessions to provide feedback with each phase of Information Technology projects as requested.
  • Providers shall have an on-site problem escalation procedure to serve as the first level of support for CCAP questions or issues. There must be one primary and one secondary staff assigned to perform on-site (first level) assessment and escalation of unresolved questions or issues up to BCCD (second level).
  • Providers are responsible for receipt and implementation of CCAP updates on system issues, training opportunities and computer requirements.
  • Provider personnel who perform data entry into DHS systems must have basic computer knowledge prior to beginning DHS system training.
  • Providers are responsible for ensuring that they have an agency representative in attendance during all CCAP meetings or training sessions. That representative is responsible for the receipt and dissemination of all meeting and/or training session content.

VI. DEPARTMENT RESPONSIBILITIES

  • BCC&D will provide technical assistance and training as needed.
  • BCC&D will process payments for eligible child care services upon receipt of the appropriate billing form.
  • BCC&D will provide updates on system issues, training opportunities and computer requirements.

VII. SUPPORT SERVICES

Support services are provided via training, technical assistance and the appeals process for CCAP. An explanation of each follows.

A. Training Manager-Training and Technical Assistance

Site Administered Child Care providers who are having difficulties with processing applications, redeterminations or billing forms can request technical assistance from BCC&D. Training for new subsidy staff is also available. Requests for training and technical assistance can be made by contacting BCC&D's Training Manager at 312/793-3610.

Technical assistance visits are scheduled with Site Administered providers on an individual basis. These visits are scheduled at either the request of the provider or the Department.

B. Technical Assistance - Program Support and Operations

Program Support and Operations is responsible for many of the activities involved with the Child Care Contracted Providers. Assistance is provided in the following areas:

  • Contract process - The provider can contact staff in this area for information regarding the contract process and with questions on the completion of the contract attachments.
  • Shared case coordination - BCC&D staff have been assigned to work with Site providers and CCR&R staff in resolving shared case issues.
  • Payment entry - Staff will respond to questions regarding the payment status.

The Office of the Comptroller has provider warrant amounts and contract information located at www.illinoiscomptroller.gov on the Internet.

VIII. BILLING

Contracted providers are required to bill for services by the 15th of the month following the month of services. Each program is to submit the appropriate billing form, as outlined in the contract exhibits.

IX. PROGRAM MONITORING

A. Purpose

The Child Care Assistance Program (CCAP) in Illinois is administered through a system of agents working with the Illinois Department of Human Services to provide a seamless network of child care services. These agents include local government agencies, nonprofit regional Child Care Resource and Referral (CCR&R) agencies, Site Administered Child Care Providers, community child care facilities, and licensed and license exempt center and home day care providers. These groups are involved in the delivery of services to children and their families, and have a direct impact upon the availability, quality, and affordability of services. Illinois utilizes the federal Child Care Development Fund, state General Revenue Funds (GRF), the federal Temporary Assistance for Needy Families (TANF) Block Grant and the Social Services Block Grant in the operation of its Child Care Program (CCP).

The Program Integrity and Quality Assurance Unit of the Bureau of Child Care and Development is charged with the responsibility of monitoring the state Child Care Program. Monitoring is accomplished through the field review of licensed and license exempt center based and group day care home network child care providers and their agents. This includes all Child Care Resource and Referral agencies, the City of Chicago Department of Family Support Services, and child care facilities contracting with the state to provide services for clients participating in the state Child Care Assistance Program. Contracts include administrative services such as those provided by the Child Care Resource and Referral agencies, the City of Chicago, and contracted child care Site Providers, as well as the direct provision of child care services performed by licensed child care center based providers participating in the Child Assistance Program.

Child Care Program compliance reviews are primarily accomplished through field reviews in which on-site visits are performed of the administrative and/or direct service agent. Field reviews of administrative only agents such as Child Care Resource and Referral agencies, the City of Chicago, and licensed home network child care providers includes review in the areas of administrative service provision to providers and clients, client record review for program eligibility compliance and internal controls. Direct service agents' child care facilities are, in addition to the above, reviewed for compliance to licensing standards promulgated by the Illinois Department of Children and Family Services.

B. Child Care Program Field Review Objectives

In general, field reviews for compliance monitoring include the review of client files for application and redetermination documentation and timeliness, client eligibility determination, client co-payment processing calculations, payment processing and attendance documentation, termination procedures and timeliness for client cancellations and denials, internal controls, and financial record keeping compliance.

The objectives for Child Care Assistance Program compliance monitoring reviews are as follows:

  • To determine that child care services are being provided in compliance with rules and agreements, as well as efficiency, effectiveness, and economy of the program relative to IDHS.
  • To ascertain if the determination of program eligibility for client application, redetermination and change reporting is adequately documented, timely, and performed within the guidelines defined in the Bureau of Child Care & Development CCAP Policy Manual.
  • To determine if the services billed were delivered, are appropriately documented, and eligible for reimbursement.
  • To determine if the calculation of client co-payment is correctly figured, and adequately documented.
  • To determine, for the vouchered (Certificate) program, if the child care certificates are reviewed by CCR&R staff for the extent of services billed with regard to the need for care, and on a timely basis.
  • To determine, for the Site Administered Program, if the Monthly Enrollment Report billing documents adequately reflect the days of eligible care in comparison to client eligibility and attendance record keeping.
  • To determine, for the Certificate Program, if the Monthly Certificate billing documents adequately reflect the days of eligible care in comparison to client eligibility and attendance record keeping.
  • To determine if cancellation or denial of client eligibility is appropriate, timely, and well documented according to program policy and procedures.
  • To determine if the direct service staff are periodically evaluated, trained, and knowledgeable, appear to be adequate for the number of children served, and the facilities appear to be safe and operated in a manner conducive to the provision of adequate service delivery in accordance with IDHS and DCFS standards.
  • To determine if performance under the contract is monitored with respect to service delivery to insure funds are being expended in accordance to the program budget, and that any changes to the budget are discussed with department staff to insure that funds are spent appropriately.

C. Monitoring Procedures

  1. Scheduling Reviews
    Staff review assignments for the period, which is usually the fiscal year, and contact the assigned provider by telephone. The review will be scheduled at a mutually agreed upon time, but usually is a minimum of two weeks prior to the field review phase unless circumstances are such that the provider specifically requests the review to be conducted sooner or later than the two week norm. Upon agreement of time and location, a packet which, depending upon the provider type, usually contains the letter of confirmation, the client record request list, the request for copies of forms, an initial interview questionnaire, and a fiscal record request list is mailed to the provider. The review period is normally the most recent month for which services have been paid, as well as the availability of fiscal records. Depending upon the number of clients served, the field phase of the review can take from two days to one week in length. If the review includes multiple sites, CCR&R's or additional programs such as Quality Enhancement, additional days will be needed.
  2. Field Review
    Upon arrival on site the monitor will conduct an entrance conference in order to determine if all client files, as well as the financial records, are available for review. During the conference the questionnaire will be thoroughly reviewed to determine if all questions have been answered, as well as all copies of requested forms have been obtained. Monitors will inquire about all unanswered questions. At this time providers are asked for a copy of their current license if licensed, or a current letter of exemption from DCFS if they state they are license exempt, with an explanation obtained if the license or letter of exemption is not available or expired. The client file review is conducted for the sample chosen by the monitor. The review entails examination of the files for record documentation to support the services rendered as well as client eligibility for the period under review. For license exempt center based providers, only child care attendance records are reviewed. For license exempt center based providers, child care certificates are checked against attendance records including weekly or monthly classroom reports, as well as sign in and sign out sheets. For the Site Administered Program, Monthly Enrollment Reports are checked against attendance records, including weekly or monthly classroom reports, as well sign in and sign out sheets. In addition, a tour of the facility is conducted to determine if overall the facility appears to meet health and safety standards and that the provider is adequately staffed. An exit conference is conducted to inform the provider of any general preliminary findings.
  3. Reports
    Upon completion of the field phase of the review a draft report is prepared and issued, normally within 30 calendar days from the date of the termination of the review. Exceptional findings involving the input from other agencies, i.e., DCFS may cause additional time to be needed for completion of the report. If the report contains findings for which recommendations are made for corrective action and/or recoupment of overpayments, the provider is given 30 calendar days to respond. If found acceptable, the provider's response is then incorporated into the draft report to finalize it. Providers not responding in a timely manner will have the report finalized with the notation that the provider refused to respond and further action, including withholding future payments may be taken. Programs in which exceptional findings were noted may be revisited to insure that corrective action has been taken to rectify any problems.
  4. Monitoring Selection Criteria
    To some extent, selection criteria depends upon the type of provider contract. Site and Child Care Resource and Referral agencies are monitored on a routine basis in rotation every three years. Because of the number and size of the various Site Administered Program providers, the following criteria is utilized in their selection for review:
    1. Contract amount.
    2. Date of last monitoring review.
    3. On demand by state agency due to problems exhibited in billing, utilization, reporting or other concerns.
    4. Follow up to determine rectification of problems previously identified in monitoring reviews with recommendations for corrective action.

X. PROGRAM BUDGET

Each fiscal year Site Administered Child Care providers are required to submit a Funding Request, proposing how the funds provided to them by IDHS will be utilized.

XI. Applicable Laws and Rules

The provider must comply with applicable laws and rules which enable these services, including, but not limited to:

  1. Federal. 43 USC 9858-45 CFR Parts 98 and 99, 42 USC 9801-45 CFR Parts 1304-1310 (Migrant and Seasonal Head Start)
  2. State. 305 ILCS 5/9A-11 (IL Public Aid Code); 20 ILCS 505/5.15 (Children and Family Services Act); 89 Illinois Administrative Code, Part 50 (Child Care) 20 ILCS 505.22.1(c) (Migrant and Seasonal Head Start)
  3. All state and local health, safety and business regulations

XII. Method of Payment

  1. Grant - A program that receives all or part of the funding in advance of the actual delivery of services.  This includes prorated prospective payments and payments made by DHS on an estimated basis or any other basis when DHS does not know the actual amount earned by the provider.  This does not include advance payments made under the authority of the Illinois Finance Act (30 ILCS 105/9.05), nor does it include payments made by DHS when there is documentation prior to expiration of the lapse period to which the expenditures are charged that the goods or services were received.  All funds paid as a grant are subject to the Illinois Grant Funds Recovery Act (30 ILCS 705 et. seq.). All funds disbursed by DHS on a grant basis are subject to reconciliation and the recovery of lapsed funds. Grant funds recovery activity is based on the Illinois Grant Funds Recovery Act (30 ILCS 705). The reconciliation will be based on one of the following methods at the election of DHS:
  1. Eligible Expenditures vs. Program Revenue - this method compares the eligible expenditures to the total DHS grant revenues by program. An independent audit and associated supplemental revenue and expense schedule may be required from the provider. Eligible expenditures will be determined based on 89 Ill. Adm. Code 509.20, Allowable/unallowable Costs, and specific program requirements, if applicable.
  2. Eligible Services Delivered vs. Services Projected - This method compares the actual eligible services delivered to the services projected in the Contract/Agreement.  If the services were based on a rate methodology, the number of eligible service units delivered times the rate, unit cost, etc., is compared to the total of all grant payments for that services.
  1. Fixed Rate - A program for which the payments are made on the basis of a rate, unit cost or actual allowable cost incurred and is based on a statement or bill as required by DHS. These payments occur after documentation has been received by DHS. Payments made as a fee-for-service are not subject to the Illinois Grant Funds Recovery Act (30 ILCS 705 et. seq.).
    Payments to the Provider are based upon services and rates as specified in the approved Program Plan. Billings, with required substantiating documentation, are submitted by the Provider upon completion of service. The Provider must accurately complete and submit billings in a timely manner. The Provider understands that incorrect billings or portions of billings may not be processed in the current monthly cycle and may be returned to the Provider for correction.
    The Provider must submit accurate reports (service or cost, as specified by DHS). Payments may be suspended if reports are not received in the proper format or timely as specified in the Program Plan.

XIII. Reporting Requirements

The Provider will use the billing process and forms as detailed in the Program Plan and Site Administered Child Care Program Manual. The Provider may be required to complete a close out report as directed by DHS. If the Provider is required to complete a close out report, the terms will be identified in the contract packet provided to them at the beginning of the contract period.

XIV. Special Conditions

  1. Service Period - DHS reserves the option to specify a service period that is different from the Term of the Community Services Agreement. In such instances, service deliverables must be achieved with the period specified in the Program Plan.
  2. Non-waiver - Provision Failure of either party to insist on performance of any term or condition of this Attachment or to exercise any right or privilege hereunder shall not be construed as a continuing or future waiver of such term, condition, right, or privilege.
  3. Safety of Children - The Provider will ensure that children are adequately supervised and that the physical environment is appropriate and safe and meets all applicable standards set by state and federal laws, rules and regulations.
  4. Eligible Clients - The Provider is responsible for ensuring that funds are spent only on individuals eligible for services under the conditions of this Attachment.
  5. Duplications - There will be no payments for duplication of services under this Attachment.
  6. Similar Services - Nothing in this Attachment shall prevent the Provider from performing similar services for other parties. However, the Provider warrants that at no time will the compensation paid by DHS for services rendered under this Attachment exceed the rate the Provider charges for rendering of similar services elsewhere.
  7. Litigation - In the event the Provider, its parent or related corporate entity becomes a party to any litigation, investigation or transaction that may reasonably be considered to have a material impact on the ability to perform under this Agreement, the Provider will immediately notify DHS in writing. Failure to notify DHS constitutes a breach of this Agreement that can result in immediate cancellation.
  8. Negative Incidents - The Provider will provide DHS with written notification of negative incidents involving or impacting children within 48 hours. DHS will assume no responsibility for the inappropriate conduct of clients. The Provider has the right to pursue reasonable legal remedies against clients for misdeeds with no involvement on the part of DHS.
  9. Sale of Center - In the event the Provider, its parent or related entity sells the child care center, the transaction shall terminate the contract with DHS.
  10. Monitoring - In accordance with Article XVI of the Community Services Agreement, DHS shall monitor Provider's conduct under this Agreement which may include, but shall not be limited to, reviewing records of Program performance in accordance with administrative rules, license status review, fiscal and audit review, Agreement compliance and compliance with the affirmative action requirements of this Agreement. DHS shall have the authority to conduct announced and unannounced monitoring visits and Provider shall cooperate with DHS in connection with all such monitoring visits. Failure of Provider to cooperate with DHS in connection with announced and unannounced monitoring visits is grounds to DHS' termination of this Agreement. DHS may request, and Provider shall supply, upon request, necessary information and documentation regarding transactions constituting contractual (whether a written contract is in existence or not) or other relationships, paid for with funds received hereunder. Documentation may include, but is not limited to, information regarding Provider's contractual agreements, identify of employees, shareholders and directors of Provider and any party providing services which will or may be paid for with funds received hereunder, including, but not limited to, management and consulting services rendered to Provider. This ARTICLE XVI does not give DHS the right to review a license that is not directly related to the Program being audited nor does it allow DHS to unilaterally revoke a license without complying with all due process rights to which Provider is entitled under Federal, State or local law or applicable rules promulgated by DHS.
  11. Meetings - The Provider will attend meetings held by DHS to discuss issues related to DHS policy, contracting process, or other related activities.
  12. Training - DHS will provide training to the Provider on: policy and program requirements; billing process; appeal process; use of DHS forms; support services; and fiscal monitoring process/expectations. Thereafter, DHS will provide the Provider with technical assistance at the Provider's request. The Provider will require appropriate program staff to attend DHS arranged training sessions. The Provider will establish procedures to train new hires on DHS policy and procedures.
  13. Approved Budget - DHS is not liable for costs incurred by the Provider that are not contained in the approved program budget/Funding Request. Except as otherwise stated or provided for in this Attachment or in the approved Program Plan, no payment for extra charges, supplies or expenses shall be made without prior approval from DHS.
  14. Computation of Error - DHS reserves the right to correct or return to the Provider for correction any documents with mathematical or computational errors in payment subtotals or total contractual obligation.
  15. Funding Reserve - Reductions in Amounts Payable: The amount(s) payable, or estimated amount(s) payable, to Vendor/Provider under the Agreement and this Attachment may be subject to a reduction as necessary or advisable, based upon actual or projected budgetary considerations, at the sole discretion of the DHS.

XV. Data Sharing Agreement

Pursuant to 01.03.01.040 of the IDHS Administrative Directives - DHS Data Sharing Protocol with Business Entities, DHS may share electronic data, to the extent permitted by State and Federal law, with entities that may require provider or client information, on-line client demographic information, or when DHS requires supplemental client information, such as Social Security information, employment statistics, or tax return information.

All child care providers are required to sign and return an original, unaltered copy of required Data sharing Agreements to DHS. Execution of the Data Sharing Agreements occurs once they have been signed by the principals of both the participating business organization and the Secretary of DHS.