Compliance Indicator

Families with children enrolled in the program have met the eligibility requirements of that contract, and the required documentation is complete. A family data file has been established for each family. The eligibility duration is for no less than 24 months for the initial certification and recertification.

Regulations/Reference

CCD Program Instrument: I. Family Files CCD 01
Welfare & Institutions Code: 10260, 10271, 10271(h), 10271.5, 10271.7
Title 5: 18078, 18081, 18082.2, 18083, 18083.1, 18084, 18084.1, 18085, 18090, 18091 

Monitoring Review Evidence

• Application for Services & Information Verification

• Records of Eligibility, Residency & Family Size

• Records of Verification of Eligibility Information

• Written Materials for Parents

Eligibility (Part 1)

Once a family establishes eligibility, they will remain eligible & receive services for not less than 24 months. With that said, it’s very important to ensure you “get it right from the get-go” when it comes to determining a family’s eligibility for services, or you could find yourself living with a file error for 24 months.

The chronological age, or actual age, of a child is used to determine age eligibility. The specific ages of the children served are written into your program grant applicationsIn general, at the time of certification children enrolled in CDSS programs must be:

• 12-years old or younger

• Up to age 21 with a documented disability

Eligibility Criteria

According to the regulations, eligibility is based on either child or family eligibility.

Child Eligibility

• Child protective services

• At-risk of abuse, neglect or exploitation

Family Eligibility

• Homelessness

• CalWORKs Cash Aid Recipient

• Receiving Benefits from Certain Governmental Program

• Income Eligible (85% SMI)

What this might look like in a program:

• Family provides documentation of eligibility in 1 or more category

• Agency representative reviews documentation to determine if it meets eligibility requirements

Child Protective Services

Children receiving Child Protective Services (CPS) through the county welfare department may receive child care & development services if referred by a county child welfare services worker.

Referral Letter must include:

• County CPS letterhead

• Date

• Statement certifying that the child is receiving child protective services & that child care & development services are a necessary component of the child protective services plan

• Name & birth date of each child being referred

• Frequency of needed child care services that includes the number of days per week & number of hours per day child care is needed

• Probable duration of the child protective plan

• Name, address, phone number & signature of the person making the referral

NOTE: If no income waiver, documentation of monthly income is required to determine family fee.

Sample: CPS Referral Letter >

At-Risk

Children at-risk of abuse, neglect, or exploitation, & referred from a legally qualified professional in a legal, medical, or social services agency, a local educational agency liaison for homeless children & youths, a head start program, or an emergency shelter may receive child care & development services.

Referral Letter must include:

• Date

• Statement by a legally qualified professional that states: The child is at risk of abuse & neglect & that child care & development services are needed to reduce or eliminate that risk

• Name & birth date of each child being referred

• Frequency of needed child care services that includes the number of days per week & number of hours per day child care is needed

• Probable duration of the at-risk situation

• Name, address, phone number & signature of the person making the referral

NOTE: If no income waiver, documentation of monthly income is required to determine family fee.

Sample: At-Risk Referral Letter >

Homelessness

The definition of homelessness aligns with the definition of "homeless children" that is in the McKinney-Vento Homeless Assistance Act. The McKinney-Vento Act defines homeless children & youth as "children that lack a fixed, regular & adequate nighttime residence.”  And includes one of the following sub parts:

• Sharing housing of other persons due to loss of housing, economic hardship, or a similar reason

• Living in motels, hotels, trailer parks or camping

• Emergency or transitional shelters or abandoned in hospital

• Primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings

• Living in car, park, public spaces, abandoned buildings, substandard housing, bus or train stations, or similar settings

• Migratory children who qualify as homeless because they are children who are living in similar circumstances listed above

Either a written parental declaration that the family is experiencing homelessness OR written referral from an emergency shelter or other legal, medical or social services agency is needed to document eligibility of homelessness.

NOTE: Documentation of monthly income is collected for the purpose of prioritization & determination of family fee

Sample: Parental Declaration of Homelessness Form >

Sample: Homeless Referral Letter >

Current Aid Recipient

If the basis of eligibility is a current cash aid recipient, the parent must provide documentation of CalWORKs cash-aid, unless the contractor has other means of obtaining verification.

Examples of documentation may include:

• Notice of action from the welfare department

• Receipt of CalWORKs Cash Aid

• Verification of Benefits

NOTE: Documentation should be for the month proceeding certification or recertification

Additionally, documentation of income is collected for the purpose of prioritization. Alternatively, the family may report their cash aid under the receiving benefits from certain governmental program eligibility category and use the governmental program application income for verification purposes.

Receiving Benefits from Certain Governmental Program

A family is categorically eligible to receive child care & development services if a member in the household meets either of the two following criteria:

1. Member of the household has been certified as eligible to receive benefits or services from one of the following:

   • CalWorks

   • Medi-Cal

   • CalFresh

   • California Food Assistance Program

   • California Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)

   • The Federal Food Distribution Program on Indian Reservations

   • Head Start

   • Early Head Start

2. Contracting agency has determined a member of the household eligible for Head Start or Early Head Start

Documentation that demonstrates family is certified for a governmental program:

• Enrollment Documentation in any of the means-tested governmental programs referenced above (Example: Notice of Action | Receipt of Aid | Verification of Benefits) AND

• Copy of Governmental Program Application OR

• If not available, a Self-Declaration of Income indicating that they do not have access to the application, and to the best of their recollection, the income declared on the governmental program application

NOTE: Income declared on governmental program application is used for the purpose of prioritization & determination of family fee

Sample: Accessing Benefit Information Handout

Income Eligible

The most common and complex eligibility category is income eligibility. Documenting and calculating a family’s income can be an overwhelming task. With that in mind, it is important to understand the why, when, and what of income. In this section, we will break down income documentation requirements, review different family and income situations, and walk through how to accurately calculate income step-by-step.

The cheat sheet was designed to support contractors with applying regulations, concepts, and skills as it relates to various REAL-LIFE family income scenarios.

Copies of the total countable income, along with an Income Calculation Worksheet are required & used in the family data file for various reasons.

Income is used to:

• Determine income ranking for many of the admission priorities.

• Determine income eligibility criteria

• Assess a family fee

• For an employed parent, income serves as the first step in determining a family’s level of need.

Income is collected:

• Certification

• Recertification

• When a parent requests to have their family fee or an employed parents need reassessed

• When an income eligible family reports that their income exceeds the income threshold during their certification period.

The income collected is dependent on the family’s eligibility category.

• Means-Tested Government Program: Use the income declared on the government program application.

• CPS or At-Risk: When the referral specifies that the family is exempt from paying a family fee, no income documentation is required.

• All Other Eligibility Criteria (including homelessness, current aid recipient, and income eligibility): Documentation of all countable income must be collected for the purpose of prioritization, determining income eligibility, and assessing a family fee or level of employment need.

Countable Income

The parent shall obtain & provide documentation of the family's total countable income for the purposes of determining whether a family is income eligible &/or assessing the appropriate family fee, as applicable.

The parent(s) shall provide documentation of total countable income for all the individuals counted in the family size.”

1.Gross wage or salary, commissions, overtime, tips, bonuses, gambling or lottery winnings

2.Wages for migrant, agricultural, or seasonal work

3.CalWORKs cash aid

4.Gross income from self-employment less business expenses with the exception of wage draws

5.Disability or unemployment compensation

6.Worker’s compensation

7.Spousal support, child support from the former spouse or absent parent, or financial assistance for housing costs or car payments paid as part of or in addition to spousal or child support

8.Survivor (i.e., SSA) and retirement benefits

9.Dividends, interest on bonds, income from estates or trusts, net rental income or royalties

10.Rent for room within the family’s residence

11.Financial assistance received for the care of a child living with an adult who is not the child’s biological or adoptive parent

12.Veteran’s pension

13.Pension or annuities

14.Inheritance

15.Allowances for housing or automobiles provided as part of compensation

16.Insurance or court settlements for lost wages or punitive damages

17.Net proceeds from the sale of real property, stocks or inherited property

18.Other enterprise for gain

Non-Countable Income

Non-countable income is income of individuals counted in the family size that shall be excluded when calculating the family’s adjusted monthly income.

1.Earnings of child under eighteen (18) years

2.Loans

3.Grants or scholarships to students for educational purposes

4.Federal Supplemental Assistance Program (CalFRESH/SNAP) or Women, Infants and Children (WIC) benefits or other food assistance

5.Earned Income Tax Credit or tax refund

6.Foster care grants, payment or clothing allowances for children placed through child welfare services

7.Relative Caregiver Funding Program

8.Guaranteed Income Payments received by an individual (EC 8213)

9.GI Bill entitlements, hardship or hazardous duty, hostile fire or immediate danger pay

10.Adoption assistance payments

11.Non-cash assistance or gifts

12.All income of any individual counted in the family size who is collecting federal Supplemental Security Income (SSI) or State Supplemental Program (SSP) benefits

13.Insurance or court settlements including pain and suffering and excluding lost wages and punitive damages

14.Reimbursements for work-required expenses that include uniforms, mileage, or per diem expenses for food and lodging

15.Business expenses for self-employed family members

16.When there is no cash value to the employee, the portion of medical and/or dental insurance documented as paid by the employer and included in gross pay

17.Disaster relief grants or payments, except any portion for rental assistance or unemployment

18.AmeriCorps Volunteers In Service to America (VISTA) and Federal Emergency Management Agency (FEMA) stipends, room and board, and grants

19.CSPP ONLY: Basic Allowance for Military Housing (BAH) when part of compensation. (NOTE: CSPP Contractor must obtain written approval from the Department prior to waiving)

FLUCTUATING OR INCONSISTENT INCOME

For fluctuating or inconsistent income, additional proof of income is required for a longer period of time.

Average the parent’s income from preceding 2 to 12 months

• Migrant

• Agricultural

• Seasonal

• Inconsistent or unstable employment or self-employment

• Intermittent

NOTE:

When enrolling a family in both State Preschool and a CDSS program, average preceding 12 months as this is the most stringent.

EMPLOYMENT INCOME

STEP 1: the parent must provide a release authorizing the contractor to contact the employer or employers that includes, to the extent known, the employer’s name, address, telephone number and usual business hours. A generic authorization is NOT SUFFICIENT. The regulations are very clear that the release must be specific to the employer, and contain these elements.

STEP 2: Employed parents MUST provide proof of employment income, such as:

• Payroll check stubs, or

• Independently drafted letter from the employer

• Other record of wages issued by the employer

When the employer refuses or fails to provide requested documentation or when the parent states a request for documentation would adversely affect the parent's employment, the parent must obtain and provide other means of verification that may include:

• List of clients and amounts paid

• The most recently signed and completed tax returns, quarterly estimated tax statements, or

• Other records of income to support the reported income, along with a self-certification of income

SELF-EMPLOYMENT INCOME

STEP 1: Parent provides a combination of documentation necessary to establish income, including business revenue & expenses.

• Regular & steady revenue: Total revenue minus business expenses from either month of the 2-month window immediately preceding certification

• Inconsistent revenue: Average the total revenue minus expenses from preceding 2 to 12 months

STEP 2: Staff must verify documentation provided to ensure the business is legitimate. Documentation must consist of a self-certification of income, and as many of the following types of documentation as reasonably necessary to determine income, such as:

• A letter from the source of income

• Copy of the most recently signed and completed tax return with a statement of current estimated income for tax purpose, or

• Other business records, such as ledgers, receipts, or business logs.

STEP 3: Staff calculate self-employment income.

Once the self-employed parent has provided proof of income, the regulations state that the contractor shall make a record of independent verification on the cost for services provided by the parent. There are several choices to do this, such as contacting clients or parent’s advertisement.

NOTE: Wage draw is NOT an expense (Business owner takes funds out of business for personal use)

What this might look like in practice:

Knowing what documentation is required for a self-employed parent can be overwhelming.

The Declaration of Self-Employment/Income form is a great source to determine what a parent should provide based on their type of business.

Step back & think, for this type of business what should I request in order to verify the following:

1. Legitimate business

2. Records of revenue

3. Records of expenses

Within the All About Income Cheat Sheet there are examples of what to collect based on the business type.

GUARDIAN/FOSTER PARENT CHILD INCOME

A foster parent or guardian’s income is not counted. For income eligibility, when a child and that child’s siblings are living in a family that does not include their biological or adoptive parent, only the child and related siblings adjusted monthly countable income is counted.

If the child has zero income, the guardian can complete a Self-Certification of Income form declaring that they receive no income to care for the child

Examples of Child Income:

• CalWORKs cash aid

• Child disability benefits that are not SSI/SSP benefits

• Child support, if received by
  the guardian

• Survivor benefits

• Foster care grants, payments or clothing allowance (non-countable income)

• Financial assistance received for the care of a child living with an adult who is not the child’s biological or adoptive parent

NOTE:

A guardian/foster parents' income might be included in the family data file for the purpose of establishing their need for service hours (NOT eligibility).

If this is the case, ensure the family data file is very clear.

For example, in the file, record Need for Services at the bottom of the guardian’s income documentation to ensure need documentation is separate from eligibility documentation.

GOVERNMENTAL PROGRAM INCOME

A family is categorically eligible to receive child care & development services if a member of the household has been certified as eligible to receive benefits or services from one of these programs:

• CalWORKs

• Medi-Cal

• CalFresh

• California Food Assistance Program

• WIC

• Federal Food Distribution Program on Indian Reservations

• Head Start or Early Head Start

Documentation that demonstrates family is certified for a governmental program must include:

• Enrollment Documentation in any of the means-tested governmental programs referenced above (Example: Notice of Action | Receipt of Aid | Verification of Benefits) AND

• Copy of Governmental Program Application OR

• If not available, a Self-Declaration of Income indicating that they do not have access to the application, and to the best of their recollection, the income declared on the governmental program application

NOTES:

The income declared on governmental program application is used for the purpose of prioritization & determination of family fee.

If the income was an annual income, then divide it by 12.

NON-WAGE INCOME

There are many different types of non-wage income. Some non-wage income is countable, while other types are non-countable.

What this might look like in practice:

When a parent is receiving child support but there is no court order in place, and only an informal agreement exists between the parents, the parent may provide a personal letter, copy of a check, record of direct deposit, or a self-declaration of child support income

In addition to documentation of income, the file must contain an income calculation worksheet.

• The worksheet must specify the frequency and amount the payroll check stubs provided by the parent and of all sources of income.

• The contractor must retain copies of the documentation of total countable income

When a family is certified as “Income Eligible”:

• Contractors must notify parents at the time of initial certification & at recertification of their income threshold, based on their family size

• Contractors must inform the family of the requirement to report within 30 days if their income exceeds this dollar amount

• When parent reports that their income exceeds the exit threshold, this triggers the contractor to recertify the family. The contractor must then re-determine the family’s ongoing eligibility for child care services

Download Sample: Parent Notification to Report Income Over SMI form

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