Presentation on theme: "CCDF Presentation September 9, 2013 1. CCDF: CCDF Budget Development The CCDF award is based on the federal fiscal year beginning October 1 st and ending."— Presentation transcript:
CCDF: CCDF Budget Development The CCDF award is based on the federal fiscal year beginning October 1 st and ending September 30 th the following year. When the FY14 budget is finalized the Budget Unit begins composing the CCDF budget to allot anticipated expenditures in each GAA line item to an appropriate funding stream. The CCDF budget tracks the status of CCDF FFY13 and the FFY14 awards and the expenditures that the state must achieve (MOE and State Match). The CCDF budget also tracks the amount of expenditures used toward the Commonwealth’s TANF block claim, SSBG, Title IV-E, and pure state funds. We must properly track our CCDF expenditures to: 1) ensure we do not exceed our CCDF award amount and allotment; and 2) demonstrate that our claim is based on eligible CCDF expenditures. When completed the CCDF budget is over 20 interlinked worksheets in a workbook. The CCDF budget is amended through the year to account for 9Cs, Supplemental funding, and transfers. Every amendment, however, is complicated because it triggers multiple changes throughout the CCDF budget. The CCDF budget primarily helps manage the draw process, but also helps inform the various quarterly and annual reports required from the federal government and OSD. Produce a memo to EHS and DTA for the TANF Transfer amount to CCDF. Include a formal memo (DTA TANF Transfer Letter) to indicate the TANF Transfer, TANF, TANF/Admin and TANF/MOE amounts for the month, state fiscal year to date and federal fiscal year to date. 2
CCDF: Direct Federal Funds Fed Matching: $31.2M Mandatory: $44.9M CCDF Disc: $27M TANF Transfer to CCDF Disc: $91.9M Total Direct CCDF Funds: $195M 3
CCDF: Historical Funding 4 * FFY13 does not include the potential impact of Sequestration. This may reduce the CCDF Discretionary amount by $1,429,126, or 5.3%. Also, the Matching grant is typically supplemented with Matching Redistribution funds (funds from national unspent matching funds. These funds provide roughly $500K in additional matching funds and FFY13 has yet to receive these funds.
CCDF Basic Rules 4% Quality Requirement: Per 45 CFR 98.50(c) – “Of the aggregate amount of funds expended (i.e., Discretionary, Mandatory, and Federal and State share of Matching Funds), no less than four percent shall be used for activities to improve the quality of child care as described at §98.51. We currently have 10% of our funds dedicated to this quality mandate. Administrative Cap: Per 45 CFR 98.51(a) - Not more than five percent of the aggregate funds expended by the Lead Agency from each fiscal year's allotment, including the amounts expended in the State pursuant to §98.53(b), shall be expended for administrative activities. We currently have budgeted less than 3%. Most of these expenditures are in the admin and Access Management accounts. Direct Services - Per 45 CFR 98.50(e) – “Not less than 70 percent of the Mandatory and Matching Funds shall be used to meet the child care needs of families”. We currently have 88.48% of expenditures that satisfy this requirement. Obligation and Liquidation Discretionary Funds: Funds must be obligated in the fiscal year in which funds are awarded or in the succeeding fiscal year. Unliquidated obligations as of the end of the succeeding fiscal year shall be liquidated within one year. Example: With the FFY12 award (October 2011) EEC has until September 30, 2013 to obligate and September 30, 2014 to liquidate. Mandatory Funds: Mandatory Funds for States requesting Matching Funds per §98.53 shall be obligated in the fiscal year in which the funds are granted and are available until expended. Example: With the FFY12 award (October 2011) EEC has until September 30, 2012 to obligate and there is no expiration. Matching Funds: Both the Federal and non-Federal share of the Matching Fund shall be obligated in the fiscal year in which the funds are granted and liquidated no later than the end of the succeeding fiscal year. Example: With the FFY12 award (October 2011) EEC has until September 30, 2012 to obligate and September 30, 2013 to liquidate. 5
Federal Funds and EEC’s Budget 6 Above is a breakdown of how federal revenues tie into the EEC budget. The following slides will breakdown the various pieces. Each category has a letter associated with it that will make it easier to follow. For example TANF will be under “A.
Description of the Federal Funds A. TANF: This is not direct federal funds, but are tied to the Commonwealth’s overall federal claiming efforts. EHS uses roughly$179M of EEC expenditures for the Commonwealth’s TANF block grant claiming. Each month EEC, after fulfilling the CCDF Block grant obligations, notifies the EHS revenue team the amount of TANF eligible expenditures (basically most of the expenditures are eligible under goal 2 of the TANF block grant – “To end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage, provided that the individuals receiving such services are income eligible.”) B. CCDF Mandatory and Matching: These are direct federal funds amounting to $77M that reimburse eligible CCDF expenditures. The annual amount hardly fluctuates and the department generally liquidates both these award in 12 to 13 month period. C. Discretionary Funds: These are direct federal funds amounting to $27M that reimburse eligible CCDF expenditures. Within the $27M are three earmarks totaling $3.7M tied to quality improvements. These earmarks are not counted toward the 4% quality rule for CCDF (which will be discussed in later slides). The department generally liquidates both these award in 13 to 14 month period. D. TANF Transfer to CCDF: These are direct federal funds amounting to $91.8M that are transferred to EEC from the state’s TANF block grant award. EHS transfers the funds to EEC and the funds take the color of CCDF Discretionary funds. These funds support the caseload accounts: 28.02% of the $91.8M supports the Supportive account, 30.61% supports the DTA-Related account, and 41.37% of the TANF Discretionary fund supports Income Eligible account. 7
Description of the Federal Funds E. Social Service Block Grant (SSBG): DCF can claim expenditures in child care programs administered by the EEC for federal SSBG reimbursement. Child care services provided with SSBG funds would qualify as being supported in part by SSBG funds in order to allow for-profit providers to be eligible for the Child and Adult Care Food Program (CACFP). EEC carves out $25K from the Supportive account child care expenditures for DCF’s SSBG claiming. These expenditures are for services provided to foster care children. F. Federal Title IV-E: A portion of supportive child care funds are provided for youth in foster care. On a quarterly basis, DCF determines IV-E eligibility of children and EEC conducts a match on those children receiving child care. In doing so, EEC (through PCG) prepares a quarterly Title IV-E claim. EEC collects the revenue and the revenue is ultimately swept into the general fund. EEC, therefore, sets aside $1.1M of Supportive funds to tie to the federal portion and another $1.1M to fulfill the state match portion. G. State Match: Per 45 CFR §98.53 (b) – “Expenditures in a State under paragraph (a) of this section will be matched at the Federal medical assistance rate for the applicable fiscal year for allowable activities, as described in the approved State Plan, that meet the goals and purposes of the Act”. Not direct funds, but required that the state expend a $1 for $1 match to the federal match award amount. H. Maintenance of Effort (MOE): The state is required to expend $44.9M per year to satisfy the federal MOE requirement. 45 CFR §98.53 (c)(1) “States shall also expend an amount of non-Federal funds for child care activities in the State that is at least equal to the State's share of expenditures for fiscal year 1994 or 1995 (whichever is greater) under sections 402(g) and (i) of the Social Security Act as these sections were in effect before October 1, 1995”. 8
Description of the Federal Funds I. State Title IV-E: See “F. Federal Title IV-E” J. Projected FY13 State Budget: This is a projected FY13 based on the maintenance budget submitted to the House and Senate Ways and Means. K. Percentage of Budget Claimed or Used as a Match: The purpose of the chart is to give readers an idea of how tied EEC’s budget is to federal funds. Not all the expenditures are directly tied to federal reimbursement, but most of expenditures not directly tied to federal reimbursement still play a key role in the Commonwealth’s effort to maximize federal revenues. 9