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Montana DPHHS/ 
Child Care & Development Fund 



Cqtz. 
Provider (Suidelines 

for the 

Best Beginnings 

Child Care 

Scholarship 



DPHHS-HSC/CC-122 
Revised: September 2007 








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Table of Contents 




Section 1: 

Introduction: Wha'f Are -[he Sest Seg/nn/ngs Programs? 1 



Section 2: 

Q. Best Beginnings CcWd Care Scholarship Program 3 

b. Parents Responsibilities 7 

c. Provider Responsibilities 15 



Section 3: 

Legally Unregistered Child Care Providers 



31 



Section 4: 

Other Best Beginnings Programs 



45 



Section 5: 

Contact Information 



49 



Missoula 

Child Care Resources 

127 East Main Street, Suite 314 

PO Box 7038 

Missoula, MT 59807-7038 

(406) 728-6446 

(800) 728-6446 

FAX (406) 549-1189 

ccr@chi lclcareresources.org 
www. chi lclcareresources.org 

Early Childhood Project 

Montana State University 

P.O. Box 173540 

Bozeman,MT 59717 

(406) 994-4746 

(800) 213-6310 

FAX (406) 994-7555 

ecp@ montana.edu 
www.montana.edu/ecp 

Child Care plus+: The Center on Inclusion 
in Early Childhood 

University of Montana - Rural Institute 

634 Eddy Ave. 

Missoula, MT 59812-6696 

(406) 243-5467 

(800) 235-4122 

www.ccplus.org 

Early Childhood Services Bureau 

PO Box 202925 
Helena, MT 59620-2952 
(406) 444-1788 
(866) 239-0458 

www.childcare.mt.gov 



Page 53 



Helena 

Child Care. Partnerships 

901 North Benton 

Helena, MT 59601-2751 

(406) 443-4608 

(888) 244-5368 

FAX (406) 443-6186 

ccp@chilclcarepartnerships.org 
www.chilclcarepartnerships.org 

Kalispell 

The Nurturing Center 

146 Third Avenue West 

Kalispell, MT 59901-4428 

(406) 756-1414 

(800) 204-0644 

FAX (406) 756-1410 

info@nurturingcenter.org 
www.nurturingcenter.org 





Section 1 




Introduction: 
What Are the Best Beginnings Programs? 



Lewistown 

District 6 HRDC Child Care Link 
300 First Avenue North, Suite 203 
Lewistown, MT 59457-1700 
(406) 535-7488 
(800) 766-3018 
FAX (406) 535-2843 

www.hrdc6.org 

Miles City 

DEAR Child Care Resource & Referral 
2200 Box Elder, Suite 151 
Miles City, MT 59301-5930 
(406) 234-6034 
(800) 224-6034 
FAX (406) 232-7018 

deapadmn@midrivers.com 



Page 52 



Page 1 



What are the Best Beginnings Programs? 

The Best Beginnings Early Care and Education Programs are 
designed to improve the quality, availability and affordability 
of child care for all working families in Montana. They include: 

• Child care resource <& referral (CCRAR) services to build 

child care supply; 

• Initiatives to improve the supply and quality of infant/ 

toddler care, school-age care, and care of children with 
special needs; 

• Child care scholarships to help low-income working families 

pay for the child care they need; 

• Grants to providers to expand and/or improve their 

services; and 

• Education and training for providers to improve their knowl- 

edge, skills, and abilities in child development. 

The programs are funded by a combination of state and 
federal dollars, which is known as the Child Care Development 
Fund. 

Best Beginnings programs are administered by the Montana 
Department of Public Health and Human Services (DPHHS), 
Human and Community Services Division (HCSD) in Helena. Call 
(866) 239-0458 and ask for the Early Childhood Services 
Bureau (ECSB). 



Glasgow 

Hi-Line Home Programs, Inc. 
605 Third Ave S 
Glasgow, MT 59230-2408 
(406) 228-9431 
(800) 659-3673 
FAX (406) 228-2984 

www.hilinehomeprograms.org 



Slendive 

DEAR Child Care Resource & Referral 

120 West Towne 

Glendive, MT 59330-1644 

(406) 377-4909 

(800) 578-4909 

FAX (406) 377-6927 

deaphix@midrivers.com 



Sreat Falls 

Family Connections 

600 Central Plaza, Suite 225 

Great Falls, MT 59401-3157 

(406) 761-6010 

(800) 696-4503 

FAX (406) 453-8976 

ki mt@f amcon .o rg 
www.famcon.org 



The Early Childhood Services Bureau is advised by a volunteer 
group of parents, child care providers, and citizen advocates 
called the Montana Early Childhood Advisory Council. The coun- 
cil meets regularly, and its meetings are open to the public. To 
learn more about the council's upcoming agenda, contact the 
Early Childhood Services Bureau. 



Havre 



District 4 HRDC Child Care Link 
2229 Fifth Avenue 
Havre, MT 59501-5217 
(406) 265-6743 
(800) 640-6743 
FAX (406) 265-1312 

www.hrdc4.org 



Page 2 



Page 51 



Child Care Resource & Referral Agencies 

Billings 

District 7 HRDC 

7 North 31=' Street 

P.O. Box 2016 

Billings, MT 59103-2016 

(406) 247-4732 

(800) 443-1411 

FAX (406)248-2943 

ccrr@hrclc7.org 

www.hrclc7.org 



Bozeman 

Child Care Connections 

317 E Mendenhall, Suite C 

Bozeman, MT 59715-3684 

(406) 587-7786 

(800) 962-0418 

FAX (406) 587-1682 

ccc@childcareconnections.info 
www.childcareconnections.info 



Butte 



Butte 4-Cs 
101 East Broadway 
Butte, MT 59701-9335 
(406) 723-4019 
(800) 794-4061 
FAX (406) 723-6982 
dchatriand@butte4-cs.org 

www.butte4-cs.org 



Page 50 





Section 2a 




The Best Beginnings Child Care 
Scholarship Program 



What is a CCR&R, or Child Care 
Resource d Referral Agency? 

A: One of 12 regional agencies in 
Montana who recruit and train child 
care providers, and help parents find 
and pay for child ccace.. See Section 5 
for more information. 



Page 3 



Best Beginnings Child Care Scholarships offer child care 
payment assistance to low-income parents who are working and 
participating in pre-approved education programs, with certain 
limitations. For example, scholarships are not available for 
parents who wish to advance beyond a bachelor's degree for 
school hours, but may qualify for work hours. 

What families are eligible to receive Best Beginnings Child 
Care Scholarships? 

Parent(s) who are working and meet income guidelines. Income 
guidelines and a monthly co-payment chart is available from 
your regional Child Care Resource <& Referral agency (CCRAR). 

• Two-parent families must work at least 120 hours per 
month. Either or both parents may work these hours. 

• Single-parent families must work at least 60 hours per 
month. Single-parent families attending school or training 
full time must work at least 40 hours per month (Part-time 
students must work 60 hours per month). 

• Parents participating in Temporary Assistance for Needy 
Families {J kH?') may receive a child care scholarship for 
approved activities. Families receiving TANF cash are 
referred to their local CCRAR by their WoRC case 
manager. 

• Children who are referred by DPHHS/Child Protective 
Services (CPS). 



NOTE: When a parent is absent from the household, 
the applicant must be receiving court approved child 
support for each child in the household or be 
in-compliance with Child Support Enforcement to be 
eligible for a scholarship. The department would also 
accept a court approved parenting plan that specifi- 
cally stated no support was required from an absent 
parent. 

Page 4 




Section 5 




Contact Information 



Page 49 



When is child care covered by a Best Beginnings 
Scholarship? 

1. During work and school hours, when parents meet the work 
requirement, and no parent is available to care for the 
children. 

2. During the hours when teen parents are attending high 
school or GED classes (work not required). 

3. When TANF families are participating in family investment 
activities employability plan, which require child care. 



CO-PAYMENTS 

All parents are responsible to pay a portion of their monthly 
child care bill. This portion is called the parent's monthly 
co-payment. The amount of the co-payment is determined by 
the CCRAR through a sliding fee scale based on family size and 
income. The child care provider is responsible for collecting 
the co-payment every month and must report nonpayment to 
the CCRAR. The child care provider has the option to accept a 
co-payment in lieu of cash if agreeable by both parties, and 
must indicate on the invoice that the co-payment has been 
satisfied. 



What is a co-paymenf? 

A: A co-payment is that portion of 
the monthly child care bill that 
parents must pay directly to the 
child care provider. 



Page 5 



How do parents select their child care provider? 

When families apply for child care scholarships they can 
request a packet of informational materials to help them 
select a child care provider. Parents are free to choose the 
care that best meets the needs of their family. They may 
select a licensed center, a registered family or group child 
care home, or a friend or relative 18 years of age or older who 
is eligible and agrees to become a Legally Unregistered 
Provider (LUP). For more information on the LUP option, see 
Section 3. 



What is an LUP, or Legally Unregistered Provider? 

A: A friend or relative who is at least 18 years old, 
who is selected by the parent and paid by the Best 
Beginnings Scholarship Program to provide pre- 
approved child care, and who passes the required 
background checks. 



When parents need help finding child care, they may call their 
local CCRAR for a referral. Each CCRAR maintains a list of 
child care providers in their district, including the type of 
program and other relevant information parents consider when 
making a child care choice. To contact your CCRAR, see the 
information in Section 5. 



What is CC\J^S7 

A: A centralized computer program used to determine 
eligibility for the Best Beginnings 5cy\o\orsW\p Program, 
manage the child care licensing and registration 
process, make payments to providers, and manage Best 
Beginnings quaWiy programs. 



Page 6 



Child Care Provider Grants 

DPHHS offers annual grants to licensed and registered child care 
providers, allowing them to improve or create high-quality child care 
programs, which expands and improves access to stable child care for 
low income families. 

Child Care Provider Mini-grants & Infant/Toddler Mini 
Srants 

DPHHS offers quarterly grants to licensed and registered child care 
providers to obtain equipment and/or create safe environments. 

Merit Pay 

This program is designed to encourage child care providers to partici- 
pate in additional training beyond the 8 hours required by licensing. 
There are 3 types of Merit Pay programs; Infant/Toddler Merit Pay; 
Higher Education Merit Pay; and Merit Pay I. 

Specialized Training Grants 

The goal of this grant is to identify and fund well-qualified people 
who will pass along their knowledge by training early care and 
education practitioners and community agencies. 

BEST 

This program for new providers, combines classroom and on-site 
training with a CCR&R trainer. 

Child Care Development Specialist Apprenticeship Program 

This program is designed to encourage providers to complete early 
childhood course work from an accredited Montana college and 
complete On-the-job training in an early care environment with the 
guidance of a qualified mentor. 

Montana Inclusive Child Care Project 

The major goals of this project are to promote public awareness and 
disseminate information about inclusive child care efforts. 



Infant/Toddler Certified Caregiver Stipend 

This program provides a stipend to caregivers who have successfully 
completed training to be an Infant/Toddler Certified Caregiver and 
works in the same facility for up to 18 months. 

Page 47 



The DPHHS Early Childhood Services Bureau sponsors other 
Best Beginnings Programs for child care providers. You may be 
an ideal participant for one or more of these initiatives! 
Contact your Child Care Resource and Referral agency for 
more information. 



Early Care & Education Career Development 

Located at the Early Childhood Project in Bozeman, is the 
Early Care and Education Career Development Office. The 
Career Development office provides education, training and 
recognition for early childhood providers, educators, trainers 
and professionals. The Early Childhood Project, with help from 
a statewide advisory board, coordinates the program. 

Components of career development are: 

Knowledge Base: defines what practitioners who work 

with young children and families need to know. Includes 

nine content areas. 

Career Path: provides guidance to document and 

recognize experience, education and training 

accomplishments of practitioners. 

Practitioner Registry: recognizes a practitioner's level on 

the Career Path and documents professional 

achievements in early care and education. 

Training Calendar: supplies people with approved training 

opportunities in the Knowledge Base areas. 

Training Approval System and Trainer Directory: 

recognizes quality training and identifies trainers 

throughout Montana. 

Scholarship Program: provides funds for accreditation 

fees, such as National Association of Education of Young 

Children (NAEYC) and the National Association of Family 

Child Care (NAFCC), and Child Development Associate 

(CDA) assessment fees. 



Page 46 





Section 2b 




How To Participate in the Scholarship 
Program — Parents 



Can applications be back-dated? 

k.Besf Beginnings Scholarships will 
not be backdated before the date 
the application is received by the 
CCRAR. 



Page 7 



There are steps that every parent and child care provider must follow 
to participate in the Best Beginnings Scholarship Program. If you are 
a legally unregistered provider {\\)?), there is more information for 
you in Section 3. 

Non-TANF Parent Application Process 

The parent application packet includes the following; 

• Child Care Scholarship Application: All areas of this form 
must be completed. This includes monthly gross income (before 
taxes and deductions are withheld), and all other sources of 
income including child support, for each household member in 
appropriate columns. All income must have verification such as 
pay stubs, award letters, etc. 

• Authorization to Release Information Form; Each adult in the 
home must complete a release. If not, the CCR&R cannot help in 
gathering information to determine eligibility. The applicant will 
need to verify all the information on the application. 

• Release of Information/Request for Verification Form; One 

work verification form must be completed for each parent and/ 
or job. Parents take this form to their employer and/or school 
to have all information completed, verified and signed by an 
authorized person. Applicants may submit an official copy of a 
school schedule (or a bill) instead of the training verification 
form. If a parent is self-employed, she/he should contact their 
CCR&R to determine necessary employment verification. 

• Child Care Service Plan Information Form; Parents must 
complete this form with their child care provider, and return it 
to their CCR&R. (Parents who need help finding a child care 
provider should contact their CCR&R.) 

• Families with absent parents must provide verification of child 

support for each child in the family. This verifies that they 
either receive child support for each child under a child support 
order recognized by a Montana district court, comply with Child 
Support Enforcement Division, or have good cause not to pursue 
child support. (There are exceptions to this policy for parents 
under the age of 18.) 



Pages 




Section 4 



^ 




Other Best Beginnings Programs 



Page 45 



6) Discuss any strong feelings or concerns you have. Talk 
candidly with parents about your views on discipline and 
guidance, television viewing, homework, playtime with 
friends, daily chores, etc. These issues might be included 
in your written contract. 

7) Seek training that will improve the quality of your child 
care. There are fundamental skills that you can learn to 
improve your ability and satisfaction as a child care 
provider. For a list of classes, contact your CCRAR agency. 
You will find many opportunities beyond the 3-hour 
orientation. 

8) Keep accurate income and expense records to help you 
when you file your taxes. Use a duplicate receipt book to 
track the payment you receive from parents. Payment from 
the state will be documented in a year-end Form 1099 
(except LUIs). Sa\/e child care expense receipts to docu- 
ment your costs as a business deduction. For more infor- 
mation, contact your CCRAR agency. 

9) Think about becoming registered. If you become 
registered as a Family Day Care Home, you will be eligible 
to receive an increased rate of payment from the Best 
Beginnings Sc\\o\ars\\\\> Program. 

10) Discuss whether this is a long or short-term 
arrangement. Are you simply helping out through a tough 
transition, or do you want a permanent child care job? If 
you sense the need for a new arrangement, find a time 
and place to talk about it with parents. 



Page 44 



Child Care Service Plan Information Form 

Once parents have selected a child care provider, they 
complete the Child Care Service Plan information form with 
their provider and return it to their CCRAR. The CCRAR then 
sets up a certification plan, which designates the amount and 
schedule of the care. Child care must be re-certified before 
the ending date listed on the certification plan. This assures 
that eligibility has not changed and to verify the amount and 
schedule of the continuing care. 



Don't Forget! Until the application 
process is completed and child care 
is certified or re -certified, 
payment for child care services is 
not assured. 




The Certification Plan (Authorization for Care) 

The CCRAR will send a copy of the family's child care 
certification plan to the child care provider when they have 
authorized child care. The certification plan shows the days 
and hours of care, the beginning date and ending date of 
care, the children authorized for care, and the co-payment 
amount. 

The certification plan shows the minimum benefit available to 
the family. The provider may bill only for actual attendance, 
rounded to the nearest 1/4 hour each day as it relates to 
approved activities. The provider is not entitled to bill 
unless the child attends. Specific policy exceptions may ap- 
ply, such as CE days, holidays or a pre-approved hold-the- 
slot payment, discussed later in this booklet. 



Page 9 



Child care providers will receive a new child care 
certification plan if there are changes. Read the 
certification plan carefully. Contact your CCRAR if you have 
any questions. The CCRAR has not officially authorized child 
care unless you have received a written child care 
certification plan. 

Child care payments cannot continue beyond the ending 
date of the certification plan. A family's eligibility can 
end prior to the certification end date . The CCRAR will 
mail a notice 10 days before they reduce or end the child 
care certification plan unless the exceptions listed on page 
13 are met. 



What if I provide care in excess of 
the amount listed in the certification 
plan? 

A: Child care services you provide in 
excess of the authorized certification 
plan for non-approved activities are the 
responsibility of the parent. 



Before you begin providing services to a Best Beginnings 
Scholarship family, it is important that you verify that the 
family is eligible for the program. Do not hesitate to 
confirm that your CCRAR approved the family for a 
scholarship. All information regarding family income, 
occupation, etc. must be kept confidential. 



Page 10 



Top 10 Ways to Improve the Child Care 
You Provide for a Friend or Relative 



1) Use a written contract. The state recommends a basic 
contract, but you may customize it to meet your needs. 

2) Be clear about the days and times that care will be 
provided. What days of the week, and times of the day, 
will you offer care Will there be an extra charge if 
parents are late in picking up their children? Include this 
information on the written contract. 

3) Be clear about the amount and time of payment. The 

CCRAR will determine each family's co-pay amount using 
the state's sliding scale. In addition, a provider may have 
over and above charges that the parent will be expected 
to pay. Your contract should state when these will be paid 
to you each month. 

4) Talk about the child's routines. Ask everything you need 
to know about a child's daily routine for eating, sleeping, 
and playing. What about moods, energy levels, favorite 
toys and activities, food likes and dislikes? Don't forget 
to mention allergies, medications, and medical conditions. 

5) Create a safe environment for children. Go through a 
safety checklist (available from your CCRAR) to make 
sure your house is ^^child-proofed!' Get training in 
pediatric CPR and First Aid. Learn to deal appropriately 
with children of different ages and stages. 



Page 43 



Wage and Tax Statement 

Each employee must receive a Wage and Tax Statement (Form W-2) 
by the last day of January as a record of wages paid the previous 
year. The employer must file a copy of Form W-2 with the Social 
Security Administration by the last day of February. 



Earned Income Credit (EIC) Advance Payments 

•An employee eligible for the Earned Income Tax Credit may elect to 
receive advance payments during the year with her or his pay. 
•The employer must make advance payment if the employee provides 
a signed and completed Form W-5, Earned Income Credit Advance 
Payment Certificate, to the employer. 

' IRS Publication 15, Circular E, Employer's Tax Guide, contains an 
advance EIC payment table detailing the EIC amount the employee 
should receive with their paycheck. 

•An employer who makes advance EIC payments is entitled to reduce 
the amount of PICA and withhold federal income tax payable to the 
IRS by the amount for the advance payments given to the em- 
ployee. 



For More Information 

For more information on federal tax issues, contact the IRS at 
(800) 829-1040. Order federal forms and publications by call- 

ing (800) 829-3676. Publications are also available on the Internet 
at www.irs.ustreas.qov. 

(This information was compiled by the Child Care Law Center, 973 
Market Street Suite 550, San Francisco CA 94103. (415) 495-5498) 

LUP Termination 

In the event that the family, which the LUP/LUI is providing cavz 
for, loses eligibility for a child carz scholarship, the LUP/LUI license 
shall be terminated to the date that the family lost eligibility. 



What circumstances might end eligibih'ty and 
payment before the certification end date? 

A: Loss or start of a job, changes in hours 
of employment, children or adults moving in or 
out of the home, school ending, loss of public 
assistance eligibility, change of child carz 
provider, not reporting changes to child support 
case, or loss of program funding. 



Changes in Family Circumstances 

Best Beginnings Sc\\o\ars\\\'^ eligibility and payment can end 
before the end date listed on the certification plan in some 
circumstances. If the CCRAR reduces or ends the 
certification plan, they will mail a notice to the child care 
provider 10 days prior to the effective date. 

Parents must report changes that effect eligibility. A 
benefit of reporting changes, i.e., increase in family size, 
reduced work and lower income, can result in a reduced 
co-pay. 

Job -Loss Grace Period 

A parent may submit a Change Report Form to their CCRAR 
if they lose their job. If the parent reports to their 
CCRAR within 10 days of the loss of job, and needs child 
care while looking for work, the scholarship may be ex- 
tended for 30 days. The parent must request the grace 
period by completing a Change Report form. The grace pe- 
riod provides continuity of care, supports the parent's ef- 
fort to find work, and maintains the family's relationship 
with its child care provider. 



Page 42 



Page 11 



Parent Changes to New Provider 

Parents may elect to change child care providers anytime, and 
are responsible for notifying their current child care provider 
and the CCRc&R of this change. 

Parents and child care providers are responsible for notifying 
each other of any changes. It is the parent's responsibility to 
inform the child care provider when terminating a child care 
arrangement; /t is not the responsibility of the CCR<&R. 

I^any child care providers include a termination-of-contract 
policy in their contracts. In this case, when child care is 
terminated without the notice required by the child care 
provider, parents are responsible for the contract and any 
related costs. Both parents and child care providers are 
responsible to inform the CCR<&R when notice of termination 
has been given. 



$ $ 



Failure by Parents to Pay Co-payment 

If a parent fails to pay the monthly co-payment, the child care 
provider must indicate this on the monthly billing invoice. 
Parents who fail to pay, or make arrangements to pay, their 
co-payment will lose their child care scholarship. Providers 
have the option to accept other payment arrangements in 
lieu of cash by the parent, but must indicate the 
co-payment has been satisfied on the invoice. 



Page 12 



Overtime 

If an employee qualifies for minimum wage and does not live in the 
home, she/he is also due over-time (1 l/2x) pay when she/he 
works more than 40 hours a week. 

Federal Unemployment Insurance (FUTA) 

a. Non-Relative Caregivers 

• If an employee earns cash wages of $1,000 or more in any 
calendar quarter then the employer owes FUTA taxes. The 
employer must pay this tax and may not withhold the tax from the 
employee's wages. 

• The base FUTA tax rate is 6.2%. However, an employer may 
receive a tax credit of up to 5.4% if the employer pays the proper 
state unemployment insurance amount by mid-April. 

• The employer must pay FUTA taxes on the first $7,000 in wages 
earned by the employee. 

• As with FICA taxes, the employer must report the employee's 
FUTA taxes on Schedule H of his or her Federal income tax 
return. The employer must also submit FUTA taxes to the IRS 
with his or her income tax return. 

•Relative Caregivers 

An employer is not required to withhold FUTA taxes for a parent, 

spouse, or child under the age of 21 who provides care in the 

home. 

Federal Income Tax 

a. Employers are not required to withhold federal income tax, but 

may\i the household employee requests and the employer agrees. 

b.To have federal income taxes withheld, the employee must fill 

out Form W-4, Employee's Withholding Allowance Certificate. The 

employer will report the withheld tax on Schedule Hoi his or her 

annual income tax return. 

c.The income tax withheld is calculated based on the employee's 

wages-both cash and non-cash-before any other amounts, such as 

FICA or state income tax, are deducted. 

d.For the proper withholding amounts see IRS Publication 15 

Circular E, Employer's Tax Guide. 



Page 41 



Social Security and Medicare 

• Non-Relative Caregivers 

• Social Security and Medicare taxes (PICA) are owed if an employee 
is paid cash wages of more than $1,100 per year. This does notapp\y 
to an employee under the age of 18 with a principal occupation other 
than household employment. 

• The cost of Social Security and Medicare taxes is shared equally by 
the employer and the employee, with each contributing 7.65% of the 
employee wages to PICA (6.2% to Social Security and 1.45%> to 
Medicare). 

• The employer has the option to withhold the employee's share from 
the employee's wages or I'D pay the entire 15.3%> from his or her own 
funds. However, if the employer pays all the Social Security and 
Medicare taxes from his or her own funds, then 7.65%> (the 
employee's share of the PICA taxes) is considered the employee's 
income for income tax purposes. 

por example, an employee earns $2,000 for the year. The employer 
chooses to pay all the necessary PICA taxes, i.e. $306 (15.3%> of 
$2,000). The employee's income for income tax purposes is $2,153 
(initial wages plus employee's share of PICA taxes (7.65%> of $2,000). 

• The employer is responsible for ensuring that the employment 
taxes, both the employee and the employer shares, reach the IRS. 
The employer reports the employee's Social Security and Medicare 
taxes on Schedule Hoi his or her pederal income tax return. The 
taxes must be submitted to the IRS with the employer's income tax 
return. 

• Relative Caregivers 

• Employers are not required to withhold Social Security or Medicare 
for a spouse or child, under the age of 21, who is providing child care 
in the home. 

• If the employee is the employer's parent (e.g. the caregiver is the 
grandparent of the child), the employer may be required to withhold 
PICA. An employer must withhold PICA for his or her parent if; 

1) The employer is divorced, widowed or married to a person who is 
physically or mentally unable to care for the child; and 

2) The child to be cared for is under the age of 18 or is sick for at 
least four continuous weeks. 



Page 40 



Termination Notice Policy 

If the CCRAR terminates or reduces the Best Beginnings 
Scholarship before the end of the certification plan, the 
CCRAR will mail the parent and the child care provider a 
notice 10 days before the termination date. The 
scholarship will continue for the notice period. Reasons for 
termination of child care by the State or the CCRAR 
include, but are not limited to, the following: 

a. The family does not meet program eligibility require- 
ments; 

b.The family no longer needs care; 

c.The parent is not using the scholarship child care for 
appropriate activities; 

d.The child is over the age limit; 

e.The Child Protective Services plan or treatment plan no 
longer requires child care; or 

f . The State or Child Care Development Fund budget is 
depleted. 

In the following instances certification for child care 
services will terminate immediately without prior written 
notice: 

• The parent requests in writing the child care scholarship 

be closed; 

• The provider loses their registration/license or no longer 

qualifies for the Best Beginnings program; 

• CCRAR does not re-certify the family (certification plan 

expires); or 

• Care at the facility ends prior to the end of the 

certification plan. 



Page 13 



Federal Law Obligations for Employers of In- Home 
Caregivers 

Employers of in-home caregivers must comply with the following 
federal requirements; 

Employer Identification Numbers 

Employers must obtain an employer identification number (EIN) from 
the IRS if they report employment taxes or give tax statements to 
their employees. If you do not have an EIN, get Form SS-4, 
Application for Employer Identification Number, from the IRS. 



Employment Eligibility Verification 

All employers must verify that an employee is either a United States 
citizen or legally entitled to work in the United States. The employee 
and the employer must both complete the form Employment Eligibility 
Verification (Immigration and Naturalization (INS) Form 1-9). To 
order INS Form 1-9 or the INS Handbook for Employers (Form 
M274) call 1-800-870-3676. For more information on the employment 
eligibility verification process, contact the INS at 1-800-357-2099. 



Federal Minimum Wage 

• The minimum wage is $5.85/hour, as of July 24, 2007. 

• An employer must pay minimum wage to a babysitter employed on 
other than a casual basis \i: 

1) The babysitter earns at least $50 per year, or 

2) works at least 8 hours per week. 

• Minimum wage does not protect casual babysitters. 

• Definitions; 

A babysitter employed on other than a casual basis provides care 
for a child on a regular basis and derives her or his livelihood 
from child care. 

A casual babysitter works less than 20 hours per week, and less 
than 20% of the babysitter's time is spent on general household 
duties. For example, teenagers who do not rely on babysitting 
income for their livelihood are casual babysitters. 



Page 39 



What is Orientation Training? 

Montana law requires that LUPs participate in child care 
orientation training within sixty (60) days of approval. Ori- 
entation is offered by CCRARs statewide. To learn the ori- 
entation schedule in your region, call your CCRAR. 

The three (3) hour training covers a range of topics related 
to child care regulatory issues, early childhood 
development, child guidance, nutrition, business 
management, fire safety and health issues. The content of 
the orientation is standard across the state. 

A child care orientation manual, the Montana Child Care 
Orientation Handbook , is supplied to all participants. 

The Registered Edge 

When you provide child care for the child(ren) of a friend 
or relative, you incur expenses related to healthy meals and 
snacks, stimulating toys and outdoor equipment, and social 
experiences that promote a child's healthy self-esteem. 
Even though you care for only a very limited number of 
children, you may want to consider becoming a registered 
family home child care provider. 

A registered provider enjoys financial advantages that 
improve his or her income. For example, a registered family 
home provider is paid by the Sest Beginnings Scholarship 
Program at a higher rate. Registered providers are eligible 
to apply for additional Best Beginnings programs such as 
Merit Pay, Mini-Grants, and Provider Grants. (For more in- 
formation on these programs, see Section 5). 

Registered providers have access to training and other 
services that help them improve their job satisfaction, 
their income, and the quality of their child care. For more 
information, contact your CCRAR. 



Page 38 





Section 2c 




How To Participate in the Scholarship 
Program— Child Care Providers 



Page 15 



Child Care Provider Application Process 

Child care providers must be registered with the State of 
Montana as a family or group child care home or licensed as a 
center. This guide provides additional information in the next 
section for friends or relatives who provide care at parents' 
request as an LUP. 

The Child Care Licensing Program requires providers to keep 
these records: 

a. Emergency Contact Information and Parental Consent Form 

for every child 

b. Pediatric Health Statement for every child less than two 

years of age 

c. Certificates of Immunization for every child 

d. Oaily attendance records 

e. Active license/registration payment number 



Provider Rights & Responsibilities Form 

Child care providers must complete and sign a Child Care 
Provider's Rights <& Responsibilities Form in order to 
participate in the Best Beginnings Child Care Scholarship 
program. This form outlines general program requirements 
and options. This form must be completed yearly. We also 
include this information with the family's scholarship 
application. 



Contracts between Parent and Child Care Provider 

Child care providers are encouraged to use a written 
contract with all parents, including those participating in the 
Best Beginnings Sc\\o\ars\\\'^ Program. The child care provider 
is solely responsible for the terms of any agreements made 
with parents. 

Page 16 



O^ 




What does a complete application include? 



Use the checklist below to 
assist in completing the 
application process. 



(Form HCS/CC-087) Legally Unregistered Provider and/or 
In-Home Care Application 

(Form HCS/CC-127) Personal Statement of Health For ap- 
proved providers giving cavz in their own home, the provider 
andzMzry adult (18 years and older) in the home must com- 
plete this form. For in-home providers giving care in the 
child's home, only the provider completes this form. 

(Form HCS/CC-077) State of Montana DPHH5 Release of 
Information This authorizes the required background 
checks. For approved carz in their own home, the provider 
andzvery adult (18 years and older) in the home must com- 
plete this form. For in-home providers giving care in the 
child's home, the provider completes this form. 



(Form HCS/CC-018) 
Responsibilities 



Child Care Provider's Rights & 



• W-9 Request for Taxpayer Identification Number and 
Certification Fill out the top of this form including your 
name and address. Include your Tax Identification Number 
(TIN) or Employment Identification Number (EIN) and sig- 
nature. (For an in-home non-relative care provider this is 
not required. Instead, the parent submits this form.) 

• (Form HCS/CC-088) Medication Administration Attestation 
This form states the provider and parent or legal guardian 
have reviewed the procedure for Medication Administration. 



Page 37 



How to Apply to Be a Legally Unregistered Provider 

Application to become a legally unregistered child care 
provider is made through your local CCRAR. (For contact 
information, see Section 5.) 

Here are some tips for applicants: 

• Apply early. The LUP processing period can take several 
weeks while background checks are completed. 

• The LUP application must be submitted and approved 
before child care is provided. 



The provider will receive a letter stating approval or denial 
of child care assistance. Denial indicates that child care 
assistance will not be available from the State and the 
parent is responsible for payment. Approval'xs indicated by 
a letter from the State giving the payment number 
{?\l 12345). At that time, you should tell your CCRAR the 
daily and hourly rate you will charge. When the family is 
selected for Best Beginnings sc\\o\ars\\\'^ , you will receive a 
certification plan stating the period for which child care 
assistance is available. The period may begin no earlier 
then the day the complete application was received by the 
CCRAR. 

Keep the certification plan. It includes information needed 
to complete your monthly billing statement, or invoice, to 
receive payment. 

If you have any questions, contact your CCRAR. The parent 
is responsible for payment if the LUP application is not 
approved. 



Page 36 



Sign-In/Sign-Out Records 

All child care providers shall maintain current sign in/sign 
out records for each child receiving child care assistance 
and utilize them as follows: 

(a) Each time the child enters or leaves the provider's 
care, the parent or other individual authorized to 
deliver or pick up the child shall initial or sign the sign 
in/sign out sheet. An electronic signature system may 
be used if it employs a unique and confidential 
identification process for individuals. 

(b) Sign in/sign out records must indicate the child's 
name, the date, the hour, and the minute when the child 
enters and leaves the provider's care. 

(c) The provider shall make sign in/sign out records 
available to child care resource and referral agency 
staff and state and local government health, safety or 
law enforcement representatives upon request. 




Page 17 



Child Care Payment Rates 

Child care providers set their own rates for services, which 
may be more or less than Best Beg/nn/ngsprQV\der rates. 

Best Beginnings provider rates vary between Montana's 
twelve (12) CCRc&R districts. The rate is determined by a 
annual statewide Market Rate Survey, and is set so that 
parents can afford to choose from a majority of providers 
in the district. To learn your district's rates, contact your 
CCRdR. 

Participating child care providers must report their current 
rates for private-pay families to the CCRdR. Best 
Beginnings scholarship payments are based on the provider's 
rates or the Best Beginnings rates, whichever are less. 
Providers may not bill the Best Beginnings Scholarship 
Program more than they charge private-pay customers. 

If a child care provider's rates exceed those of the Best 
Beginnings Scholarship Program, the difference may be 
charged to the parent in addition to the monthly 
co-payment. Providers are responsible for notifying 
parents of, and for collecting, any additional charges. 




Page 18 



Legally Unregistered Providers must agree to: 

1. Review and discuss with the parents the immunization 
record of the children in care or review the waiver 
indicating parental choice not to immunize. 

2. Examine the home for fire and safety conditions, for 
the presence of a working smoke detector, and for 
placement of a family fire escape plan, and discuss these 
conditions with the parents. A Health and Safety 
Checklist \s provided on back of the LUP application form 
and must be reviewed with parents. 

3. Have the parent or legal guardian sign the Medication 
Authorization Form prior to the provider administering 
medication, prescription or non-prescription. The pro- 
vider must log each time they administer the medication 
on the Medication Administration Log. If a provider ad- 
ministers a medication inappropriately or under any 
other unusual circumstance they must complete a Medi- 
cation Error/Incident Report. They must also note the 
occurrence in the comment section of the log. The pro- 
vider must notify the parent or legal guardian of the in- 
cident immediately. Note: The parent or legal guardian 
must sign the Medication Authorization Form for each 
medication as well as a separate form for each child. 
The Provider must have a log for each medication as well 
as each child. These records must be kept on file for 3 
years. 





Page 35 



Other requirements for the Legally Unregistered Provider 

The legally unregistered child care provider must be able to answer 
"yes" to all of the following statements or the application may be 
denied, pending necessary follow-up information. 

• The provider is 18 years of age or older. 

• The provider will be providing care less than 24-hours within the 
day. 

• The provider will care for a total of two children, or may care for 
all the children in one family. 

• The provider agrees to attend an 3-hour orientation offered by 
the CCR&R, within sixty days of approval, to learn the basics of 
professional child care, which includes health and safety issues. 
The provider is responsible for contacting the local CCR&R for 
the dates and times of this orientation session. 

• The provider, and all the adults in the LUP's home, must agree to 
Criminal and Child and Adult Protective Services background 
checks. The results of these checks will be used in deciding if the 
application will be approved or disapproved. 

• The provider and all adults in the home are in good health as 
specified on the C)PHHS-HCS/CC-127 Statement of Health. 

• The provider and parent must sign the HCS/CC-088 Medication 
Administration Attestation form. 

NOTE: If the provider lives in the child's home, the following 
restrictions apply. 

• The child care provider is NOT the child's parent, 

• The child care facility is NOT owned, entirely or in part, by the 
parent, 

• The child care provider is NOT a member of the child's TANF 
Cash Assistance Unit, 

• The child care provider is NOT a member of the child's Best 
Beginnings CW\\d Care. Scholarship Eligibility Unit. 

• The child care provider may be a related household member, with 
the following restrictions: The relative caregiver living in the 
household must be related to the child in one of the following 
ways: aunt or uncle, grandparent, great grandparent-no exceptions. 

• The relative caregiver is NOT part of the child's TANF Cash 
Assistance Unit or Best Beginnings Child Care Scholarship 
Eligibility Unit, 

• The relative caregiver qualifies to be an LUP. 



Page 34 




The Best Beginnings program uses hourly and daily rates. 
Rates may also differ for infants (under 2 years) and 
children (2 years and up). CCUBS requires daily and hourly 
rates to process payments. If you use a different rate 
structure, you will need to provide equivalent rates, by the 
hours and by the day, for the purpose of serving families 
participating in the Best Beginnings scholarship program: 



. Child (2+) Hourly Rate 
i. Child (2+) Daily Rate 
ii. Infant (<2) Hourly Rate 
V. Infant (<2) Daily Rate 



Best Beginnings hourly rates apply when a child attends less 
than 6 hours in a day. Daily rates apply when a child attend 
6 to 10 hours in a day. If a child attends more than 10 
hours in a day, a combination of daily and hourly rates will 
apply. 

Notify the CCRAR of rate changes even if your current 
rates are higher than the district rate. And remember to 
keep your rate information current, even when you are not 
serving a Best Beginnings Sc\\o\ars\\\\> family. Keeping your 
rates up to date ensures accurate information is available 
for the Market Rate Survey. 

Submit rate changes in writing, 10 days in advance, to your 
local CCRAR. The printed invoice has a place to report 
future rate changes. 



Page 19 



Billing the State for Best Beginnings Scholarship 
Services 

A preprinted invoice is mailed to the child care provider 
each month. Child care providers receive one invoice for 
every family in their care. The invoice lists the family's 
children for whom care will be paid, the certification end 
date and the amount of the family's co-payment. The hours 
billed on the invoice must reflect the child's actual 
attendance rounded to the nearest 1/4 hour as it 
relates to approved activities. 

The child care provider must enter the daily attendance 
hours for each child and co-payment received. The invoice 
must be completed, signed and dated by the child care 
provider. Future rate changes may be indicated on the 
invoice. Allow 10 days for new provider rates to take 
effect. 

Child care providers must mail or deliver printed invoices to 
the CCRdR. Invoices are due in the CCRdR office within 5 
days following the month in which care was provided. 
Invoices expire 60 days after the month. Provider must 
submit invoices and any corrections within 60 days or they 
lose their claim for a Best Beginnings Sc\\o\ors\\\'^ payment. 

If you believe an invoice or payment is late, please contact 
your CCRc&R, who can check the payment status on the 
computer system. 




State payments look like checks and work like checks, they 
are actually called warrants. Oon't be surprised if you hear 
a State payment referred to as a warrant. 



Page 20 




If the applicant clears the background checks, the State may 
authorize them to receive Best Beginnings Scholarship payments 
for child care services provided. Within sixty days of approval, 
the LUP must attend an 3-hour child care orientation, offered by 
the CCR&R, to learn the basics of professional child care, which 
includes health and safety issues. 

Authorization of an In -Home Provider (LUP) 

A family may elect to use an in-home LUP to care for 
children in the family's home. The in-home LUPmusi apply 
with the CCRdR and meet all requirements of the LUP. 

NOTE: Parents pay their legally unregistered in- home 
providers directly. In-home LUPs are paid by the parent. 
The parent receives the payment from the State after the 
monthly invoice is submitted to the CCRAR. The parent is 
responsible to pay employer taxes and minimum wages 
when care is done in the parent's home. The parent must 
submit a W-9 to the CCRd(R to receive payment. 

If you are an in-home provider, be sure that the parent 
knows his or her responsibility to pay federal and state 
employment taxes so that you earn the Social Security and 
other employee benefits to which you are entitled. 



Page 33 



Parents have many reasons for choosing a friend or family 
member to provide their child care. Parents may be 
reluctant to place a young infant in a group setting. They 
may work evenings or weekends and have a difficult time 
finding child care. Or their work schedule may be subject 
to frequent change, requiring more flexibility than most 
child care businesses can offer. Or they may have several 
children, making in-home care the most convenient option. 
We have designed Best Beginnings Scholarships to support 
parents with a range of child care choices. 

Authorization of a Legally Unregistered Provider (LUP) 

A family may elect to use a friend or family member to care for 
their chilcl(ren). To receive Best Beginnings ^ymen^s, the friend 
or family must receive a payment number and become a "Legally 
Unregistered Provider" (LUP). An LUP may care for a total of two 
children, or may care for all the children in one family. The child 
care provider must be 18 years of age or older and must submit an 
application form to their CCR&R. 




The State Department of Public 
Health and Human Services will 
complete Criminal and Child and 
Adult Protective Services 
background checks to ensure 
that the LUP applicant, and any 
household members 18 or older, 
have never been involved in any 
incidents that would indicate a 
possible threat to the health or 
safety of children. If it is 
found that the LUP applicant 
could harm a child, the Early 
Childhood Services Bureau 
(ECSB) will deny authorization 
of the payment number. Then, 
the State cannot make payment 
to the provider. 



Page 32 



V 



What happens if payment is delayed 
within the state's payment system? 

A:If payment is delayed within the 
system, the Early Childhood Services 
Bureau will work with the CCRAR, the 
computer system personnel, and the 
fiscal office to solve the problem and 
issue the payment. 



Payments, Warrants, SORs, and EOBs 

Invoices are batch processed for efficiency on the 5th 
business day and every Tuesday thereafter of the month. 
Warrants are printed on the 6th business day of the month. 
Child care providers serving several families generally re- 
ceive one combined payment. Payments come in an auto- 
mated mailer format with a brief explanation. Later, pro- 
viders receive a detailed Statement of Remittance in a 
separate mailing. Parents receive a similar statement for 
their family called an Explanation of Benefits. 

Changes in Child Care Provider Name, Address, or Ages 
of Children in Care 

If the payment address is not current, the payment will be 
sent by return mail back to the State. Anticipate a delay 
of one to three weeks while the payment is returned to the 
State, the correct address located, and the payment 
re-mailed. Avoid payment delay by notifying your 
licensor and sending an updated W-9 before changing 
your address to: 

DPHHS Fiscal - h'^hCS 
P.O. Box 4210 

Helena, MT 59604-4210 

Please enclose a note explaining the type of change 
(address or name). 



Page 21 



Direct Deposit 

Direct Deposit service for payments to providers from the CCUBS 
system is required of all new providers. Here's how to arrange 
Direct Deposit; 

Pick up a Direct Deposit form at your local financial 

institution (bank) or the CCRAR. 

Complete the 'Payee' (1) and 'Government Agency' (2) 

portions of the form using the DPHHS Fiscal Bureau 

address listed below. 

Your bank provides the 'Financial Institution' (3) 

information. You may want to have your deposit ticket 

available for this purpose. 

• Return the Direct Deposit form with a 
voided check taped securely to the form to your 
local CCRAR who will add coding and forward it to 
the DPHHS Fiscal Dept. 

• After direct deposit arrangements are made, the 
first payment will still come in the mail. This allows 
DPHHS and your bank to test the direct deposit 
arrangement without jeopardizing delivery of the 
payment. 

Each Direct Deposit is transmitted to your bank after 
processing in CCUBS. 

The Department will mail a confirmation of each Direct 
Deposit transaction to you. This will have a "settlement 
date". This is the date the EFT should be at your bank. 
If, after trying Direct Deposit, you want to return to 
receiving payments by mail, contact your CCRAR to 
change your payment method and send a written 
request to DPHHS Fiscal - AW ACS. 

DPHHS Fiscal - AWAC5 

P.O. Box 4210 
Helena, MT 59604-4210 
If you do not have a bank account, sign the form and 
say so on the form. 



Page 22 




Section 3 





Legally Unregistered Providers (LUPs) 
Child Care by Friends & Family 



Page 31 



Children with Special Needs 

Best Beginnings families of children with special needs as 
certified by a licensed social worker, psychologist, medical 
doctor, or other professional are not placed on a waiting 
list, thereby guaranteeing a priority status for child care 
services. According to the Americans with Disabilities Act 
(ADA), child care providers are required to make a reason- 
able accommodation for children with special needs. If 
care requirements increase the cost of the care, one-time 
or ongoing costs may be paid from the Best Beginnings Child 
Care Scholarship. The CCRdR will work with the family to 
determine the appropriate rate. The CCRAR will be required 
to complete an observation of the child at the child care 
facility before approving any special needs rates 
and a Child Care Plan must also be developed. The 
special needs rates vary depending on each child 
and must be reviewed at each recertification 
and annual renewal of the Best Beginnings 
scholarship. For more information 
about this service, please contact your 
local Child Care Resource d Referral 
agency. 




Child Care Plan for a Child with Special Needs 

The family, child care provider, and other professionals 
working with the child complete the Child Care Plan. This 
plan provides documentation of the child's needs, identifies 
additional resources which may be available, and suggests at 
least two individuals who could provide additional informa- 
tion if needed. 

Additional information on serving and including children 
with special needs in a child care facility can be obtained 
from your CCRAR or from Child Care Plus+, the Center on 
Inclusion in Early Childhood, or visit www.ccplus.org. 



Page 30 



Negative Licensing Action 

Child care providers are required to notify parents 
participating in the Best Beginnings Sc\\q\ox's\\\'^ Program of 
any negative licensing action that affects her/his 
registration or licensing. The loss of registration or license 
disqualifies the child care provider from receiving Best 
Beginnings Scholarship payment. The provider may not bill 
the household for payments denied by the department due 
to the provider's failure to comply with licensing, 
certification, or registration requirements. 




A provider's eligibility to receive state payment under a 
state assisted child care program may be terminated if: 

(a) the provider willfully misrepresents services 
provided; 

(b) the provider refuses access to the child care 
setting and child records during business hours to the 
following personnel: 

(i) employees or other agents of 
state or local government, investigating child 
care services or child abuse or neglect; 

(ii) child care resource and referral 
agency personnel investigating child care 
services; or 

(iii) health, building or fire officials 
investigating child care facility health and 
safety issues. 



Page 23 



Tax Forms 

All child care providers are required to submit a W-9 Form. 
This is an Internal Revenue Service (IRS) form that the 
Department of Public Health &. Human Services is required 
to have on file before it pays for services. At the end of 
January of each year, DPHHS Fiscal Bureau will send each 
provider a 1099 Form. It is very important that the name 
and tax ID or social security number agree exactly. This 
will provide documentation of the amount paid by the Best 
Beginnings Scholarship Program, and other DPHHS 
programs for the year. Taxes are not withheld from DPHHS 
payments. 

Overpayments 

The department is entitled to recover the amount of any 
child care payment made to a child care provider or to a 
parent which is in excess of the amount to which the 
provider or parent was entitled, regardless of whether the 
overpayment was caused by the department, by the pro- 
vider, or by the parent. 

(a) If an overpayment is due to any error, act, or omission of 
the parent, whether intentional or otherwise, the parent must 
repay the overpayment to the department. 

(b) If an overpayment is due to any error, act, or omission of 
the provider, whether intentional or otherwise, the provider must 
repay the overpayment to the department. 

(c) If an overpayment is due to any error, act, or omission of 
the department, the department may recover the overpayment 
from either the provider, the parent, or from both, but the total 
amount recovered from the provider and the parent may not 
exceed the amount of the overpayment. 

Repayment Agreement 

In the event that a child care provider is overpaid, future 
payments may be reduced or delayed. Child care providers 
will be asked by the CCRdR to sign and date a Repayment 
Agreement Form detailing the repayment plan. 



Page 24 



Star Quality Child Care & Tiered Reimbursement 

This program allows a higher rate of Best Beginnings 
scholarship payment for child care providers who have 
earned either a one- or two-star rating. It is a three-level 
program that accommodates an intermediate step in quality 
improvement. 




Licensed or Repistered Facilities consist of facilities that 
are in compliance with State of Montana licensing regulations. 
One-star rating includes providers that meet the require- 
ments for a two- or three-year extended license and meet 
quality indicators in areas of staff training, staff turnover, 
program development, parent involvement and personnel 
policy. 

Two-star rating includes providers that meet the require- 
ments for a two- or three-year extended license and are 
accredited by the National Association for the Education of 
Young Children (NAEYC), National Association for Family 
Child Care (NAFCC), or National School-Age Care Alliance 

The tiered reimbursement rate for Licensed or Registered 
Facilities\s set according to a biannual market rate survey in 
both the hourly and daily rate categories. One Star 
reimburses an additional 10%, and an additional 15% for Two 
Star. 

For more information on tiered reimbursement, contact your 
local CCRAR or visit www.childcare.mt.gov. 



Page 29 



Administrative Review and Fair Hearing 




Under state regulations for child care assistance programs, 
parents and child care providers have the right to appeal 
payment disputes, termination, or denial of a payment. The 
first step in an appeal is an administrative review 
conducted by state officials. 

To request an administrative review, put your request in 
writing within 30 days of the action in question and address 
it to: 

DPHHS Fair Hearing Officer 

PO Box 202953 

Helena MT 59620-2953 

The State will schedule a telephone administrative review 
within two weeks of your request. If the administrative 
review does not settle the dispute, a Fair Hearing Officer 
will hear the dispute. 

Records Maintenance 

Child care providers must maintain daily sign-in/out 
records, payment records, and fee collection records for a 
minimum of five years. 



Page 28 



Penalties for Intentional Program Violations 

When a provider or a parent receives child care assistance in 
excess of the amount to which the provider or parent is entitled 
due to a willful action of the provider or parent, the department 
may pursue criminal charges against the provider or parent. 
Criminal prosecution may be pursued in addition to recovery of the 
overpayment. 

• A willful action includes but is not limited to the making of a 
false or misleading statement, a misrepresentation, or the 
concealment or withholding of facts or information. 

If a willful action is an overclaim, the following will occur; 
Tiie first willful overclaim will result in. 

(i) an assessment of 10% of the amount actually due 
being added to the amount of repayment due if an overpayment 
has already been made to the claimant; 

(ii) if an overclaim is discovered before payment is made, 
deduction of 10% of the amount due from the amount paid to the 
claimant; and 

(iii) if the provider is responsible, the loss of web 
invoicing privileges for six months and the imposition of the 
requirement that copies of sign in/sign out sheets must be 
submitted with invoices for the following three months. 

The second willful overclaim will result in. 

(i) an assessment of 25%> of the amount actually due 
being either added to the amount of repayment due to the 
department or deducted from the amount of payment due to the 
claimant, depending upon whether payment to the claimant has 
already been made; and 

(ii) if the provider is responsible for the overclaim, the 
loss of web invoicing privileges permanently and imposition of the 
requirements that the provider must submit copies of sign in/sign 
out sheets with invoices for the following six months. 

The third willful overclaim will result in the household or 
provider responsible being ineligible to participate in the child 
care development fund child cacz assistance, grant, and quality 
child ewe. programs for seven years. 



Page 25 



Absent Day Policies: 

Holidays 

Child care providers who are registered or licensed may charge 
for certain holidays when their child care businesses are 

closed if payment policies include the same holiday charges to 
private paying families. These state-approved holidays include 
New Year's Day, Memorial Day, Independence Day, Labor Day, 
Thanksgiving Day and Christmas Day. Providers may only charge 
for the number of hours a child would be regularly attending on 
this day. If the holiday falls on a day that the child is not nor- 
mally scheduled to be -there, the provider may not bill for the 
holiday. Providers must provide written proof to the CCRAR (i.e., 
contract) that all families are charged for holidays. 




Certified Enrollment (CE) Days 

A registered or licensed child care provider may claim certified 
enrollment days, i.e. claim payment for days on which the child 
was absent if the child is authorized for more than 30 hours of 
childcare per week. This is allowed only if the provider charges 
private-pay families for absent days. Written proof (i.e., con- 
tract) must be provided to the CCRAR. Also, the child receiving 
Best Begmn/ngs Scholarship funding must be in full time care (30 
hours or more per week) at one facility. Certified enrollment 
days are limited to 150 hours per child in a state fiscal year (July 
1st through June 30th). These are consumed in a similar way 
that hours and days are billed. When 6 to 10 CE hours are billed, 
10 CE hours are consumed, consistent with the Best Beginnings 
daily rate. Providers may not bill CE days on days they are 
closed. 



Page 26 



Unexplained Absences 

Child care providers are required to notify the CCRdR of 
unexplained absences (five or more consecutive days) and 
asked to notify the CCRc&R of irregular attendance, within 
three working days. 



Holding a Slot During a Temporary Absence 

When arranged in advance, a child care provider may 
request payment for holding a child care slot if the slot 
will be lost during a scheduled absence. The absence may 
not last longer than 30 days, and the child care provider 
must document that the slot would otherwise be given to 
another family. The same policy of payment for reserved 
slots must apply to private paying customers. Holding a slot 
must be pre-arranged with the CCRdR. 



How can a child care provider document 
that a slot might be lost to another 
customer during times of family absence? 

A: Documentation must include a waiting list 
including the names, age of children and 
telephone numbers of customers who are 
interested in using his/her services when 
vacancies become available. 



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