Child Care and Development Fund (CCDF) ACF-696T Financial Report for Tribal Grantees

INSTRUCTIONS FOR COMPLETION OF FORM ACF-696T

Financial Reporting Form for the

Child Care and Development Fund Tribal Grantees

NOTE: "THE PAPERWORK REDUCTION ACT OF 1995"

Public reporting for this collection of information is estimated to average 7 hours per response, including the time for reviewing instructions, gathering and maintaining the data needed, and reviewing the collection of information.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.

All Tribal grantees are required to complete and submit this report on an annual basis in accordance with these instructions on behalf of the Tribal Lead Agency administering the Child Care and Development Fund (CCDF).

Definition

Child Care and Development Fund (CCDF):

Child care programs conducted under the provisions of the Child Care and Development Block Grant Act, as amended. For Tribal grantees, the fund consists of Discretionary funds authorized under section 658B of the amended Act, and Tribal Mandatory funds appropriated under section 418 of the Social Security Act.

Electronic Submission: The ACF-696T is available for submission through the Internet using OLDC. Tribal Lead Agencies with OLDC assignments may access the system at: https://extranet.acf.hhs.gov/ssi. Tribal Lead Agencies without OLDC assignments may access the system at the above address after submitting the OLDC Request Form to the appropriate ACF Regional Office contact. The OLDC Request Form is attached and is available electronically (along with OLDC help sheets, user guides and tutorials) at: https://extranet.acf.hhs.gov/oldcdocs/materials.html. The completed OLDC Request Form may be emailed or faxed to your Regional Office contact (see attachment). Please submit an OLDC Request Form for each staff person who will play a role in using OLDC. ACF will create a User ID based on the information provided on the OLDC Request Form. An e-mail message is automatically sent to the staff member identified on the OLDC Request Form when an OLDC User ID and password is created for that person.

Due Date: The ACF-696T form must be received by ACF within 90 days after the end of the Federal fiscal year—i.e., December 29 of each year.

Supporting Documentation: Upon request, a Tribal Lead Agency must provide the Administration for Children and Families with supporting documentation for any reported expenditures to ensure compliance with Federal CCDF rules.

Identifying Information

At the top of the form, enter identifying information, as described below.

Tribe. Enter Tribe’s Name.

Fiscal Year Grant Was Awarded. Enter the fiscal year of the grant for which this report is being submitted. This fiscal year indicates the year in which the funds were awarded--not necessarily the year in which they were expended. The fiscal year for a grant award can be found at the top of the Notice of Grant Award received from the Administration for Children and Families and is also displayed in the second and third positions of the grant's document number.

Grant Doc. #(s). Enter the Grant Document Number(s). The Grant Document Number is found on the Grant Award Document under the heading "Document Number". If multiple grant awards are issued in a fiscal year (e.g., construction and renovation), please enter all relevant numbers.

Expenditure Period. Indicate the expenditure period covered by the report (i.e., the period during which reported cumulative expenditures were made). The expenditure period should correspond with the Federal fiscal year—beginning on October 1 and ending on September 30. For example, if the Tribe is reporting expenditures made during fiscal year 2020, the expenditure period reported on the ACF 696T form would be “10/1/2019 to 9/30/2020”.

Tribal grantees must submit separate annual reports for each fiscal year in which CCDF funds were awarded. An interim report is submitted if the Tribal grantee has not yet expended all funds for a given fiscal year. A final report is submitted once all funds for a given fiscal year have been expended. In other words, Tribes have to submit interim cumulative reports annually until all funds that were awarded in a given fiscal year have been liquidated. Since CCDF funds are available for use in more than one fiscal year, a Tribe may have to submit more than one ACF-696T financial reporting form each year.

For example, if a Tribe has received FY 2018, FY 2019 and FY 2020 funds, annual reports would be due as follows: (Note: * designates the report due this current reporting period.)

• First interim FY 2018 report was due on or before 12/29/2018

Second interim FY 2018 report was due on or before 12/29/2019

Final FY 2018 report is due on or before 12/29/2020 *

• First interim FY 2019 report was due on or before 12/29/2019

Second interim FY 2019 report is due on or before 12/29/2020 *

Final FY 2019 report is due on or before 12/29/2021

• First interim FY 2020 report is due on or before 12/29/2020*

Second interim FY 2020 report is due on or before 12/29/2021

Final FY 2020 report is due on or before 12/29/2022

As you can see, the Tribe may be submitting three reports at the end of FY 2020--a final report for FY 2018 funding, an interim report for FY 2019 funding, and an interim report for FY 2020 funding.

Final Report. Check the appropriate box (“yes” or “no”) to indicate whether this is a final report for a given fiscal year. A Tribe should mark “yes” if it has finished expending funds for the given fiscal year, and should mark “no” if it plans future expenditures from the given fiscal year.

Submission: Original/Revised. Check the appropriate box ("original" or "revised") to indicate whether this is a new report (original) or a revision of a report previously submitted (revised) for the same fiscal year grant and expenditure period.

Definition

Obligation and Liquidation:

Generally speaking, an obligation is an action that commits the funds, such as a legally-binding agreement (e.g., contract or subgrant) between two parties for purchase of services, supplies or equipment. Liquidation generally means the payment of funds to a third party as a result of an obligation.

More specifically, determination of whether funds have been obligated and liquidated will be based on applicable tribal, State or local law. If there is no applicable tribal, State or local law, then definitions at 45 CFR 75.2 apply (as described further in the last paragraph of this box).

Depending on applicable law, obligations may include subgrants or contracts that require the payment of funds to a third party (e.g., subgrantee or contractor). However, the following are not considered third party grantees or contractors: (1) a local office of the Lead Agency; (2) another entity at the same level of government as the Lead Agency; or (3) a local office of another entity at the same level of government as the Lead Agency.

Funds for CCDF services provided through a child care certificate or voucher will be considered obligated when a written certificate/voucher is issued to a family that indicates: (1) the amount of funds that will be paid to a child care provider or family, and (2) the specific length of time covered by the certificate/voucher, which is limited to the date established for redetermination of the family’s eligibility, but shall be no later than the end of the liquidation period.

In cases where tribal, State or local law does not apply, 45 CFR 75.2 defines:

Obligations means orders placed for property and services, contracts and subawards made, and similar transactions during a given period that require payment by the non-Federal entity during the same or a future period.

Liquidations (or outlays/expenditures) as charges made to the project or program. For reports prepared on a cash basis, liquidations are the sum of actual cash disbursement for direct charges for goods and services, the amount of indirect expense incurred, the value of in-kind contributions applied, and the amount of cash advances and payments made to contractors and subgrantees. For reports prepared on an accrued expenditure basis, liquidations are the sum of actual cash disbursements, the amount of indirect expense incurred, the value of inkind contributions applied, and the new increase (or decrease) in the amounts owed by the grantee for goods and other property received, for services performed by employees, contractors, subgrantees, subcontractors, and other payees, and other amounts becoming owed under programs for which no current services or performance are required, such as annuities, insurance claims, and other benefit payments.

Obligation and Liquidation Timeframes (for Funds Other than Discretionary Disaster Relief Funds). Tribal grantees have two years to obligate Tribal Mandatory and Discretionary funds and an additional year to liquidate. For example, Tribes have until September 30, 2021, to obligate Tribal Mandatory and Discretionary funds awarded in FY 2020 (10/1/19 to 9/30/20). Those funds must be liquidated by September 30, 2022.

There are different obligation/liquidation requirements for funds in the grant award for construction and renovation--three years to liquidate with no separate obligation requirement (with the exception of Discretionary Disaster Relief funds used for construction/renovation; see below). The liquidation timeframe for construction/renovation begins with the date that funds are originally awarded—not the date that funds are transferred to the separate grant award for construction and renovation. For example, funds awarded and then transferred to construction and renovation in FY 2020 must be liquidated by September 30, 2022. (Funds cannot be moved to construction/renovation after the end of the fiscal year in which they were awarded.)

Any FY 2020 funds not liquidated by September 30, 2022, would revert to the Federal government.

Obligation and Liquidation Timeframes for Discretionary Disaster Relief Funds. Tribal grantees have two years to obligate Discretionary Disaster Relief funds and an additional year to liquidate (unless the funds are used for construction and renovation; see below). For example, Tribes have until September 30, 2021, to obligate Discretionary Disaster Relief funds awarded in FY 2020 (10/1/19 to 9/30/20). Those funds must be liquidated by September 30, 2022.

There are different obligation/liquidation requirements for Discretionary Disaster Relief funds that are used for construction and renovation--four years to obligate and one additional year to liquidate. The liquidation timeframe for construction/renovation begins with the date that funds are originally awarded—not the date that funds are transferred to the separate grant award for construction and renovation. For example, Discretionary Disaster Recovery funds awarded and then transferred to construction and renovation in FY 2020 must be obligated by September 30, 2023 and liquidated by September 30, 2024.

Cumulative Fiscal Year Totals

All amounts reported must reflect expenditures of Federal CCDF funds made under the Tribe’s approved CCDF plan and in accordance with all applicable statutes and regulations. Do not include tribal, local, private, or other funds.

Tribes should report amounts on a cumulative basis. For example, for funds awarded in FY 2020, the first interim report is due by December 29, 2020, the second interim report is due by December 29, 2021, and the third and final report is due by December 29, 2022. Amounts reported in the second and third reports should reflect expenditures to date, including any expenditures that were included in the earlier report(s).

Columns

Column (A). Tribal Mandatory Funds. Amounts reported in this column relate to CCDF Tribal Mandatory Funds provided under section 418 of the Social Security Act.

Definition

Tribal Mandatory Funds:

Child care funds set aside at section 418(a)(4) of the Social Security Act. The funds consist of 2 percent of the aggregate Mandatory and Matching child care funds reserved by the Secretary in each fiscal year for payments to Indian Tribes and tribal organizations.

Column (B). Discretionary Funds. Amounts reported in this column relate to CCDF Tribal Discretionary Funds provided under the Child Care and Development Block Grant Act, not including the base amount, which is reported separately in Column (C).

Definition

Discretionary Funds:

Child care funds authorized under section 658B of the Child Care and Development Block Grant Act. The Secretary reserves not less than 2 percent of total Discretionary Funds in each fiscal year for grants to Indian Tribes and tribal organizations.

Although Tribes receive CCDF Federal funds from two different sources (Tribal Mandatory and Discretionary), both Tribal Mandatory and Discretionary Funds may be expended for the same purposes--child care services, child care administration, non-direct services, quality activities, and (subject to ACF approval) construction and renovation. Expenditures are subject to certain limitations and requirements that are described below in the line-by-line instructions.

Column (C). Discretionary Funds Base Amount. Amounts reported in this column relate to the Discretionary base amount.

Definition

Discretionary Funds Base Amount:

Tribal grants from Discretionary Funds include a base amount of $30,000 for individual Tribes (not part of a consortium). Grantees representing a consortium of Tribes receive $30,000 for each consortium member (or a pro-rated amount for members with fewer than 50 children). The base amount may be used for any activity consistent with the purposes of CCDF, including the administrative costs of implementing a child care program and is not subject to the 15 percent administrative cost limitation.

Column (D). Construction and Major Renovation Tribal Mandatory Funds. Amounts reported in this column relate to funds transferred from the Tribal Mandatory Funds grant award to a separate grant award for construction/renovation.

Column (E). Construction and Major Renovation Tribal Discretionary Funds. Amounts reported in this column relate to funds transferred from the Discretionary Funds grant award to a separate grant award for construction/renovation. Note: A Tribal grantee must request and receive ACF approval prior to using funds for construction and renovation that are reported in Columns (D) and (E).

Column (F). Discretionary Disaster Relief Funds. Amounts reported in this column relate to CCDF Discretionary Disaster Relief Funds.

Definition

Discretionary Disaster Relief Funds:

Supplemental Appropriations for Disaster Relief Act of 2019 (Pub. L. 116-20) made disaster relief funds available to Tribal CCDF Lead Agencies (as well as State and Territorial CCDF Lead Agencies) for child care expenses directly related to Hurricanes Florence and Michael, Typhoon Mangkhut, Super Typhoon Yutu, wildfires and earthquakes that occurred in calendar year 2018, and tornadoes and floods occurring in calendar year 2019.

Column (G). Discretionary Disaster Relief Funds—Construction and Major Renovation. Amounts reported in this column relate to CCDF Discretionary Disaster Relief Funds used for construction and renovation.

Definition

Discretionary Disaster Relief Funds—Construction and Major Renovation:

CCDF Lead Agencies that are awarded CCDF Discretionary Disaster Relief funds may use those funds for renovating, repairing, or rebuilding child care facilities, subject to ACF approval. Upon approval, ACF will transfer any funds approved for use on construction or major renovation to a separate grant award, which will be reported in Column (G). If not all funds transferred to the separate grant award are ultimately needed for construction or renovation, the Lead Agency may request permission from ACF to use the funds for other allowable CCDF purposes (i.e., purposes other than construction and renovation). By law, Discretionary Disaster Relief funds used for construction or major renovation are not subject to administrative cost, quality, or direct services requirements.

Discretionary Disaster Relief Funds Narrative Report

The annual submission of the financial report should include an attached narrative description of the services and activities funded with CCDF Discretionary Disaster Relief funds. The narrative should describe all services and activities funded with CCDF Discretionary Disaster Relief funds that were spent in the fiscal year by the State, regardless of the year in which those funds were awarded. Specifically, the narrative report should provide an explanation for the amounts reported on Columns (F) and (G). The narrative report should include, but is not limited to, the following information:

• Specific project or activity titles with descriptions of deliverables, and the name of the entity(ies) that are responsible for deliverables;

• Description of outputs, such as the number of persons served and/or products produced in activity.

Lines

Line 1. Federal Funds Awarded. Enter in Columns (A), (B), (C), and (F) the total amount of Federal funds awarded for each columnar category for the fiscal year for which the report is being submitted. No entry should be made in Columns (D) and (E). For example, Line 1 Column (A) should be the total amount of Federal Tribal Mandatory funds issued to the Tribe for the fiscal year for which the report is submitted. The amount of funds awarded is indicated on the Notice of Grant Award received from the Administration for Children and Families. The amount of funds awarded can also be found on the Office of Child Care’s website at: http://www.acf.hhs.gov/programs/occ/law/allocations/tribal.htm. Please use the “final” allocation table for the relevant fiscal year.

Line 2. Transfer to Construction/Renovation. Enter in Columns (A), (B), (C), and (F) the total amount of Federal funds transferred to the construction/renovation grant award for each columnar category from the fiscal year's grant for which the report is being submitted. No entry should be made in Columns (D) (E), and (G). For example, Line 2 Column (A) should contain the total amount of Federal Tribal Mandatory funds transferred to construction/renovation from the fiscal year's grant for which the report is submitted. The amount of funds transferred to construction/renovation is indicated on a separate construction/renovation Notice of Grant Award received from the Administration for Children and Families.

The amounts reported on Line 2 are the amounts that have been transferred to the separate grant award for construction/renovation--not amounts that have actually been expended for construction/renovation. Amounts expended for construction/renovation are reported on

Line 9.

Once funds are transferred to construction/renovation, those funds remain there; however, upon ACF approval (in accordance with CCDF-ACF-PI-2016-05), those funds may be used for other child care activities. Please note that if the Tribe subsequently requests that construction/renovation funds be used for other child care activities, these funds will still be reported in columns (D), (E), and (G).

Line 3. Total Funds Available. Enter in Columns (A), (B), (C), (D), (E), (F), and (G) the total amount of Federal funds available for each columnar category from the fiscal year's grant for which the report is being submitted. For each of the Columns (A), (B), (C), and (F), line 3 is equal to line 1 minus line 2. The amounts reported on line 3 should be equal to the funding amounts for Tribal Mandatory Funds and Discretionary Funds (and Discretionary Disaster Relief Funds, if received) contained on the revised Notice of Grant Award(s) issued after the transfer of funds to the separate grant award for construction/renovation.

For example, Line 3 Column (A) should contain the total amount of Federal Tribal Mandatory funds issued to the Tribe for the fiscal year for which the report is submitted less the amount transferred to construction/renovation. Line 3 Column (D) will be equal to the amount entered in Line 2 Column (A); Line 3 Column (E) will be equal to the total of the amounts entered on Line 2 Column (B) and Line 2 Column (C). Line 3 Column (G) will be equal to the amount entered in Line 2 Column (F).

Lines 4 through 8: Use of Construction and Renovation Award for Activities Other Than Construction and Renovation

If a Tribal grantee requests and receives approval to use construction/renovation funds for CCDF activities other than construction/renovation, those funds are not moved back to either the Tribal Mandatory or the Discretionary funds (or Discretionary Disaster Relief funds). While the funds remain in the separate grant award for construction/renovation, the Tribal grantee can use the funds for CCDF activities other than construction/renovation after requesting and receiving ACF approval.

For Columns (D), (E), and (G), a Tribal grantee should not enter data on Lines 4 through 8 unless the Tribe has requested and received approval to spend construction/renovation funds on CCDF activities other than construction or renovation. If, however, a request has been made and approved, Lines 4 through 8, Columns (D), (E), and (G) are left "open" for data entry to provide the Tribal grantees with the ability to categorically track construction/renovation funds that have been approved for use on other CCDF activities.

Requirements Based on Tribal Allocation Sizes

Some CCDF requirements vary based on the Tribe’s CCDF allocation size. For the FY 2020-2022 CCDF Plan cycle, a Tribe’s total FY 2016 CCDF allocation amount is used to determine allocation size, as follows:

• Large Allocations—more than $1 million

• Medium Allocations--$250,000 to $1 million

• Small Allocations—less than $250,000

Line 4. Expenditures for Child Care Services. Enter in Columns (A), (B), (C), (D), (E), (F), and (G), Federal expenditures made for child care services (also known as direct child care services) from the fiscal year's grant for which the report is being submitted. Child care services may be provided through grants or contracts for child care slots, certificates (or vouchers), or tribally-operated centers.

70% Direct Child Care Services Requirement for Discretionary Funding: This requirement applies in FY 2020 and later fiscal years to Tribes with medium and large allocations. To comply, the Tribal Lead Agency must reserve:

1. the minimum amount of funding required for quality activities (for FY 2020 and FY 2021, it is 8%; for FY 2022 and onward, it is 9%);

2. the minimum amount of funding required for infant/toddler quality activities (3% of expenditures for medium and large allocation Tribes starting in FY2019); AND

3. the actual amount of Discretionary funding expended for administrative costs [Line 5 Columns (B) and (F)],

After reserving the amounts above, a Tribal Lead Agency with a medium or large allocation must expend not less than 70% of the remainder of Discretionary expenditures on providing direct child care services.

For FY 2020 Discretionary Award (Tribes with Medium and Large Allocations):

By the end of the liquidation period (9/30/22), Line 4 Columns (B), (C), (E), and (F) ≥ (must be greater than or equal to) 70% of [Line 10 Columns (B), (E) and (F) - (8% of Line 10 Columns (B), (E) and (F) + 3% of Line 10 Columns (B), (E) and (F) + Line 5 Columns (B), (E) and (F))].

For FY 2021 Discretionary Award (Tribes with Medium and Large Allocations):

By the end of the liquidation period (9/30/23), Line 4 Columns (B), (C), (E), and (F) ≥ (must be greater than or equal to) 70% of [Line 10 Columns (B), (E) and (F) - (8% of Line 10 Columns (B), (E) and (F) + 3% of Line 10 Columns (B), (E) and (F) + Line 5 Columns (B), (E) and (F))].

For FY 2022 Discretionary Award (Tribes with Medium and Large Allocations):

By the end of the liquidation period (9/30/24), Line 4 Columns (B), (C), (E), and (F) ≥ (must be greater than or equal to) 70% of [Line 10 Columns (B), (E) and (F) - (8% of Line 10 Columns (B), (E) and (F) + 3% of Line 10 Columns (B), (E) and (F) + Line 5 Columns (B), (E) and (F))].

Note: In the calculation described above, Column (C) is included in the first part (involving Line 4), but excluded from the remaining parts (involving Lines 10 and 5). Because Tribes have flexibility regarding how they spend the base amount of Discretionary Funds, Column (C) is not included in the expenditure total that is used to calculate the minimum direct services spending percent threshold. However, when determining if a Tribe has actually met its threshold at the end of the liquidation period, Tribes will receive credit for any direct services expenditures made from the base amount. The minimum direct services spending requirement does not apply separately to each individual column.

Discretionary Disaster Relief expenditures used for construction or major renovation and reported in Column (G) are not included in the quality spending calculation.

Line 5. Expenditures for Child Care Administration. Enter in Columns (A), (B), (C), (D), (E), (F), and (G), Federal expenditures made for child care administration from the fiscal year's grant for which the report is being submitted.

Definition

Child Care Administration:

As listed at 45 CFR 98.54, examples of administrative activities include, but are not limited to:

• planning, developing, and designing the CCDF program;

• providing local officials and the public with information about the program, including the conduct of public hearings;

• preparing the application and Plan;

• developing agreements with administering agencies in order to carry out program activities;

• monitoring program activities for compliance with program requirements;

• preparing reports and other documents related to the program for submission to the U.S. Department of Health and Human Services;

• maintaining substantiated complaint files;

• coordinating the provision of CCDF services with other Federal, State, and local child care, early childhood development programs, and before- and after-school care programs;

• coordinating the resolution of audit and monitoring findings;

• evaluating program results; and

• managing or supervising persons with responsibilities for the activities described above.

Administrative costs do not include the costs of:

• providing direct services

• establishing and operating a certificate program;

• eligibility determination and redetermination;

• the establishment and maintenance of computerized child care information systems;

• preparation and participation in judicial hearings;

• child care placement;

• recruitment, licensing, inspection, reviews, and supervision of child care placements;

• resource and referral services

• rate setting; and

• training of child care staff.

The 15 percent administrative cost limitation applies to the aggregate total of CCDF funds expended, including amounts for construction and renovation but not including the base amount.

At the end of the liquidation period, the sum of Columns (A), (B), (D), (E), and (F) on Line 5 cannot exceed 15 percent of the sum of (A), (B), (D), (E), and (F) on Line 10. The 15 percent limit is calculated on the total of (A), (B), (D), (E), and (F). The 15 percent limit does not apply separately to each individual column. Columns (C) and (G) are not included in this calculation. The base amount of the Discretionary Funds and the Discretionary Disaster Relief funds used for construction or major renovation are not subject to the administrative cost limitation.

Many Federal programs permit Indian Tribes and tribal organizations to apply an indirect cost rate to account for administrative costs that cannot be easily charged to a specific program (e.g., accounting and personnel services). An indirect cost rate is arrived at through negotiation between an Indian Tribe or tribal organization and the appropriate Federal agency. Indirect costs, as determined by an indirect cost agreement, are an allowable expense for tribal grantees under CCDF and, if expended, should be reported on Line 5. However, regardless of a Tribe's negotiated indirect cost rate, CCDF administrative costs cannot exceed the 15 percent administrative cost limit.

Line 6. Expenditures for Non-Direct Services. Enter in Columns (A), (B), (C), (D), (E), (F) and (G), Federal expenditures made for child care non-direct services from the fiscal year's grant for which the report is being submitted. Non-direct services are child care services provided that are not direct services to families (which are reported on Line 4) and are not considered administrative costs under 45 CFR 98.54 (which are reported on Line 5). Non-direct service expenditures reported on line 6 are not considered administrative costs and therefore do not count towards the 15 percent administrative cost limit.

Definition

Non-Direct Services:

Non-direct services are child care services provided that are not direct services to families but that are not considered administrative costs under 45 CFR 98.54. Non-direct services include:

• establishing and operating a certificate program;

• eligibility determination and redetermination;

• the establishment and maintenance of computerized child care information systems;

• preparation and participation in judicial hearings;

• child care placement;

• recruitment, licensing, inspection, reviews, and supervision of child care placements;

• rate setting; and

• training of child care staff.

Non-direct services are not the same as indirect costs. Indirect costs are administrative costs that cannot be easily allocated to a specific program, and are reported on Line 5.

Line 7. Expenditures for Quality Activities (excluding infant and toddler quality activities reported on line 8). Enter in Columns (A), (B), (C), (D), (E), (F) and (G), the Federal expenditures for quality activities from the fiscal year's grant for which the report is being submitted.

Definition

Quality Activities:

Quality activities are designed to improve the quality and availability of child care. Examples of quality activities include, but are not limited to:

• Supporting the training, professional development, and postsecondary education of the child care workforce;

• Developing, implementing, or improving early learning and development guidelines;

• Developing, implementing, or enhancing a tiered quality rating and improvement system (QRIS);

• Improving the supply and quality of child care programs and services for infants and toddlers;

• Supporting child care resource and referral services;

• Facilitating compliance with inspection, monitoring, training, and health and safety requirements;

• Evaluating and assessing the quality and effectiveness of child care programs;

• Supporting child care providers in the voluntary pursuit of accreditation;

• Supporting development and adoption of high-quality program standards; and

• Carrying out other activities to improve the quality of child care services provided.

For additional examples of quality improvement activities, see 45 CFR 98.53. For funds awarded in FY 2018 and FY 2019, a Tribe that receives CCDF funds shall use not less than 7 percent of the amount of such funds (the total of Tribal Mandatory and Discretionary, not including the Discretionary base amount) for quality activities. For funds awarded in FY 2020 and FY 2021, a Tribe that received CCDF shall use not less than 8 percent of the amount of such funds (the total of Tribal Mandatory and Discretionary, but not including the Discretionary base amount or Discretionary Disaster Relief funds used for construction or renovation) for quality activities. For funds awarded in FY 2022 and later fiscal years, no less than 9 percent must be spent for quality activities. The minimum spending requirement applies to funds expended rather than the total of funds available.

For all Tribal grantees: At the end of the liquidation period for funds awarded in FY 2018 and FY 2019, the sum of the amounts in Columns (A), (B), (C), (D), (E), and (F) on Line 7 must be at least 7 percent of the sum of Columns (A), (B), (D), (E), and (F) on Line 10.

At the end of the liquidation period for funds awarded in FY 2020 and FY 2021, the sum of the amounts in Columns (A), (B), (C), (D), (E), and (F) on Line 7 must be at least 8 percent of the sum of Columns (A), (B), (D), (E), and (F) on Line 10.

At the end of the liquidation period for funds awarded in FY 2022 and each succeeding fiscal year, the sum of the amounts in Columns (A), (B), (C), (D), (E), and (F) on Line 7 must be at least 9 percent of the sum of Columns (A), (B), (D), (E), and (F) on Line 10.

Note: In the calculation described above, Column (C) is included in the first sum mentioned (involving Line 7), but excluded from the second sum (involving Line 10). Because Tribes have flexibility regarding how they spend the base amount of Discretionary Funds, Column (C) is not included in the expenditure total that is used to calculate the % minimum spending threshold. However, when determining if a Tribe has actually met its threshold at the end of the liquidation period, Tribes will receive credit for any quality expenditures made from the base amount. The minimum quality spending requirement does not apply separately to each individual column.

Discretionary Disaster Relief expenditures used for construction or major renovation and reported in Column (G) are not included in the quality spending calculation.

Line 8. Expenditures for Infant/Toddler Quality Activities. Enter in Columns (A), (B), (C), (D), (E), (F), and (G), the Federal expenditures for infant/toddler quality activities from the fiscal year's grant for which the report is being submitted.

Definition

Infant/Toddler Quality Activities:

Infant/Toddler quality activities are designed to improve the quality and availability of child care for infants and toddlers. Examples of infant/toddler quality activities include, but are not limited to:

• Establishing or expanding high-quality community or neighborhood-based family and child development centers;

• Establishing or expanding the operation of community or neighborhood-based family child care networks;

• Promoting and expanding child care providers’ ability to provide developmentally appropriate services for infants and toddlers;

• Developing infant and toddler components in the Tribe’s quality rating and improvement system (QRIS), licensing regulations, and the early learning and development guidelines; and,

• Providing health and safety training, including training in safe sleep practices, first aid, and cardiopulmonary resuscitation (CPR) for child care providers and caregivers working with infants and toddlers.

The requirement for grantees with medium and large allocations to spend at least 3 percent of total expenditures on infant/toddler quality activities applies to funds expended rather than total of funds available.

For Tribal grantees with medium and large CCDF allocations: At the end of the liquidation period for funds awarded in FY 2019 and subsequent fiscal years, the sum of the amounts in Columns (A), (B), (C), (D), (E), and (F) on Line 8 must be at least 3 percent of the sum of Columns (A), (B), (D), (E), and (F) on Line 10.

Note: In the calculation described above, Column (C) is included in the first sum mentioned (involving Line 8), but excluded from the second sum (involving Line 10). Because Tribes have flexibility regarding how they spend the base amount of Discretionary Funds, Column (C) is not included in the expenditure total that is used to calculate the minimum spending percent threshold. However, when determining if a Tribe has actually met its threshold at the end of the liquidation period, Tribes will receive credit for any infant/toddler quality expenditures made from the base amount. The minimum infant/toddler quality spending requirement does not apply separately to each individual column.

Discretionary Disaster Relief expenditures used for construction or major renovation and reported in Column (G) are not included in the infant/toddler quality spending calculation.

Line 9. Expenditures for Construction/Major Renovation. Enter in Columns (D), (E), and (G), the Federal expenditures for construction/major renovation from the fiscal year's grant for which the report is being submitted. Only Columns (D) (E), and (G) are completed. No entry is required in Columns (A), (B), (C), and (F).

Note: CCDF funds cannot be spent for construction or major renovation until a Tribe has applied for and received approval from the Administration for Children and Families.

Line 10. Total Federal Expenditures. Enter in Columns (A), (B), (C), (D), (E), (F), and (G), the total amount of Federal funds expended from the fiscal year’s grant for which the report is being submitted.

Line 10 is equal to Line 4 + Line 5 + Line 6 + Line 7 + Line 8 + Line 9.

RECONCILIATION OF PAYMENT INFORMATION

Reconciliation of payment information is required on all grants beginning with Federal Fiscal Year 2017.

To improve grant closeouts, financial transparency and financial management, grant recipients should perform a reconciliation of expenditures reported on the ACF-696T and cash receipts and disbursement reported at the Payment Management System (PMS)

Payment data can be updated by the grantee’s designated PMS user which will then be reviewed by ACF on a regular basis. To submit a Final ACF-696T report via OLDC the Federal funds expended must be reconciled to Federal cash received and disbursed. Payment data is an aggregate of all mandatory, discretionary, discretionary disaster relief, reallotted or redistributed funding. It is also cumulative.

From the instructions accompanying Form SF-425:

Line 10a: Cash receipts line includes the cumulative amount of actual cash received from the Federal agency (PMS) as of the reporting period end date.

Line 10b: Cash disbursements line includes the cumulative amount of Federal fund disbursements (such as cash or checks) as of the reporting period end date. Disbursements are the sum of actual cash disbursements for direct charges for goods and services, the amount of indirect expenses charged to the award, and the amount of the cash advances and payments made to subrecipients and contractors.

For the Final Form ACF-696T to be considered reconciled: (1) Lines 10a and 10b from Form SF-425; and (2) Line 10 column A plus Line 10 Column B plus Line 10 column C plus Line 10 column D plus Line 10 column E from Form ACF-696T must each be the same amount.

An example is necessary for additional clarity.

Suppose that a grantee is awarded $1,000,000 in Mandatory funding and $1,000,000 in Discretionary funding.

Case 1 Insufficient Reimbursement: When the final report is due the grantee has received a total amount of payments (line 10a of the SF-425) in the amount of $1,500,000 and has reported disbursing $1,500,000 (line 10b of the SF-425). When the grantee sums their Mandatory and Discretionary Federal share of expenditures the total amount is $1,900,000. The form is not reconciled. The grantee must request payment from their PMS account of an additional $400,000, so their Federal cash receipts and disbursements are sufficient to meet their reported Federal expenditures.

Case 2 Excess Advance: When the final report is due the grantee has received a total amount of payments (line 10a of the SF-425) in the amount of $1,500,000 and has reported disbursing $1,500,000 (line 10b of the SF-425). When the grantee sums their Mandatory, Matching, and Discretionary Federal share of expenditures the total amount is $1,000,000. The form is not reconciled. The grantee must return payment of the $500,000 to their PMS account to bring the payments in line with the expenditures.

Case 3 and 4 Update Information: When the final report is due the grantee has received a total amount of payments (line 10a of the SF-425) in the amount of $1,900,000 and has reported disbursing $2,000,000 (line 10b of the SF-425). When the grantee sums their Mandatory, Matching, and Discretionary Federal share of expenditures the total amount is $1,400,000. The form is not reconciled. The grantee must reconcile the different amounts being reported as received and as disbursed on Form SF-425 with the amount being reported as expended on Form ACF-696. This may require revising one or both reporting forms.

Case 5 the Payments, Disbursements and Expenditures Match: When the final report is due the grantee has received a total amount of payments (line 10a of the SF-425) in the amount of $2,000,000 and has reported disbursing $2,000,000 (line 10b of the SF-425). When the grantee sums their Mandatory, Matching, and Discretionary Federal share of expenditures the total amount is $2,000,000. The form is reconciled. Once submitted the form will confirm that the grant is reconciled and ready for closeout actions within the next 180 days.

closeout actions within the next 180 days.

Line 11. Total Federal Share of Unliquidated Obligations. Enter in Columns (A), (B), (C), (D), (E), (F), and (G), the total amount of obligated Federal funds that have not been liquidated from the fiscal year's grant being reported. See pages 4 and 5 of the instructions for a description of obligation and liquidation timeframes.

Line 12. Total Federal Unobligated Balance. Enter in Columns (A), (B), (C), (D), (E), (F) and (G) the unobligated balance for the fiscal year's grant for which the report is being submitted. See pages 4 and 5 of the instructions for a description of obligation and liquidation timeframes.

Line 12 is equal to Line 3 minus (Line 10 + Line 11).

Line 3 is equal to Line 10 + Line 11 + Line 12.

Reallotted Funds

Any portion of a Tribe’s allotment of Discretionary Funds that is not required to carry out its plan, in the period for which the allotment is made available, shall be reallotted to other tribal grantees in proportion to their original allotments. By April 1 of each year, Tribal grantees are

required to report in a letter to ACF the dollar amount from the previous year’s grant that it will be unable to obligate by the end of the obligation period (September 30).

Based on these reallotment reports, ACF will issue a negative Discretionary grant award to the Tribe based on the amount submitted in the letter and those Discretionary Funds will be reallotted. If the total amount available for reallotment from all Tribal grantees is $25,000 or more, funds will be reallotted to other Tribal grantees. If the total available is less than $25,000, no reallotment will take place, and funds will revert to the Federal government. If an individual reallotment amount to a Tribe is less than $500, the reallotment award will not be issued to that Tribe. If a Tribe does not submit a reallotment report by the April 1 deadline, a determination will be made that the Tribe does not have funds available for reallotment. In the case of a report received after April 1, any funds reported to be available for reallotment shall revert to the Federal government.

On the space provided on the form, check whether or not the Tribe would like to receive its proportional share of reallotted Discretionary Funds that may become available in the second fiscal year of a given grant period. Please Note: If the ACF-696T reports are not received within 90 days after the end of the fiscal year (December 29), the Tribe will not be eligible for reallotted Discretionary Funds. This portion of the form is simply a vehicle for Tribal grantees to request reallotted funds, if they become available. This form is not used to report funds that the Tribe will be unable to obligate; these amounts must be reported in a letter prior to April 1, as described above.

Signatures

This report must be signed by an official representing the Tribal grantee and dated in the space provided, including the title, agency and phone number of the individual whose signature is shown. The individual who signs this report is certifying that the information provided on all parts of this form and all accompanying documents is accurate and correct.

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