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NORTH CAROLINA DIRECTORS’ ASSOCIATION
CHILD DAY CARE COMMITTEE
ANNUAL REPORT 2002 – 2003
During the year, the Child Day Care Committee continued to perform its traditional functions of monitoring statewide spending and waiting lists; and, reviewing new policy and procedural proposals by the Division of Child Development.
The most important concern addressed by the Child Day Care Committee early in the year was the Division’s change in allocating available day care dollars to county DSS ’s. The Division returned to its traditional mode for allocating day care funds in FY ‘02-’03. During the previous two years, the Division had departed from its usual and customary method and based the distribution of categorical funding for S.F.Y. ‘00-’01 and S.F.Y. ‘01-’02 on a county’s expenditures for all types of day care, not just child care, to support employment as stipulated in the Division’s Subsidized Child Care Services Manual . The Division made this decision because of the availability of additional federal funding during those two years. When the Division returned to the original method of considering only the employment expenditures, 32 counties and five state-level contractors lost funding. Some of these counties lost significant portions of their previous year’s allocation. The Day Care Committee voted to recommend to the Director’s Association that the Secretary of Health and Human Services be contacted and concern expressed regarding the Department and Division’s handling of significant reductions in funding. The Day Care Committee stated that reductions as significant as these require substantial prior notice and a phased in approach. Further, the Day Care committee expressed support for DCD’s commitment to use carry-forward and new federal funds to restore those counties and contractors that request restoration, up to their previous year’s allocation.
The Division of Child Development introduced a new repayment process after receiving a different interpretation from the federal funding agency concerning the repayment of funds misspent because of client or agency error or client fraud The recommendation would require counties to make corrections in DCD’s "Subsidy Reimbursement System" and then the State would deduct this amount from the county’s reimbursement. The corrections and reduced reimbursements were to be made whether or not the county recouped any money. Subsequently, the Director’s Association recommended to the Secretary of H.H.S. that DCD and the Department ask the Legislature to set aside part of the one-time state funding for ‘02-‘03 ($15 million) to establish an account for the state to repay misspent funds to the federal funding agency until counties recoup those misspent funds.
The Child Day Care Committee considered and made recommendations to DCD regarding the allocation of new and carry-forward funds available in ’02-’03.
The Child Day Care Committee recommended that DCD change the policy concerning payment to a licensed child day care home that is also a licensed foster home for a child. If a child is in DSS custody and placed with a relative who is licensed as both a foster home and day care home, the relative can be reimbursed for day care as well as foster care.
Highlights of other major issues the Committee has been involved with include the following:
Plans for the upcoming year include enhancement to the relationship with DCD in order to continue a strong partnership. The committee will work with DCD to develop and implement a structured, consistent reversion/reallocation process. The Committee will also continue its work in advocating for State support in the area of fraud or overpayment.
The Committee will strive to work with DCD in implementing the new allocation formula in a manner that will not adversely affect counties and families while continuing to assess the statistics used in the formula to ensure allocations are made based on need.
