NonSub Change - 696 ARA update

To: Kelsi Feltz

Office of Information and Regulatory Affairs (OIRA)

Office of Management and Budget (OMB)

From: Anne-Marie Twohie

Acting Director

Office of Child Care

Administration for Children and Families (ACF)

Date: June 3, 2025

Subject: Non-Substantive Change Request –Child Care and Development Find (CCDF) ACF-696 Financial Report for States and Territories (OMB #0970-0510)

This memo requests approval of non-substantive changes to the approved information collection: Child Care and Development Fund (CCDF) ACF-696 Financial Report for states and territories, (OMB #0970-0510).

Background

The CCDF ACF-696 Financial Report is used by 50 States, the District of Columbia, and five U.S. Territories that receive CCDF funding (American Samoa, Commonwealth of Northern Mariana Islands, Guam, Puerto Rico, and U.S. Virgin Islands) to report quarterly expenditures. The ACF-696 Financial Report form is approved through June 30, 2027 with quarterly reporting frequency.

On December 21, 2024, the American Relief Act (ARA) of 2025 (P.L. 118-158) was enacted and provided $250 million of supplemental discretionary non-disaster and another $250 million of supplemental discretionary disaster funding to the Child Care and Development Block Grant (CCDBG) program. The ACF-696 Financial Report form does not have any means for reporting how ARA non-disaster funds are used.

ACF is seeking approval for non-substantive changes to this form and form completion instructions to accommodate the newly authorized ARA funds.

Overview of Requested Changes

ACF proposes the following updates to the current ACF-696 Financial Report form and instructions:

1. Change the name of the existing Column F to report ARA supplemental discretionary non-disaster funding;

2. Add descriptive language in the form completion instructions about ARA Act of 2025 reporting requirements.

The above changes will allow for comprehensive reporting of financial information as well as improved simplicity and clarity for user of the ACF-696 Financial Report forms. We consider these changes to be non-substantive.

Time Sensitivities

The next financial reporting period for the ACF-696 Financial Report is quarter-end June 30, 2025, with a due date of July 30, 2025. The changes to the form will allow grant recipients to report their ARA non-disaster expenditure because there is currently no mechanism for states and territories to report these expenditures. ACF needs this information to ensure proper monitoring of grant obligations and liquidations made during the FFY. It takes significant staff hours to update financial report forms in ACF’s grant reporting system. Therefore, a prompt approval of these edits is requested to enable timely reporting by CCDF grant recipients.