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Child Care Mandatory and Matching Funds of the Child Care and Development Fund

Published on AidPage by IDILOGIC on Jun 24, 2005

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Length and Time Phasing of Assistance

Grant awards are made to Lead Agencies with approved CCDF plans. If Matching Funds are requested, Mandatory Funds must be obligated by the end of the first fiscal year. There is no time limit on liquidation of Mandatory Funds and no time limit on obligation of Mandatory Funds if no Matching Funds are requested. Matching Funds must be obligated by the end of the first fiscal year and liquidated by the 2nd fiscal year. State funds expended toward the maintenance of effort requirement must be both obligated and expended by the end of the first fiscal year. Mandatory and Matching funds granted to Tribes and tribal organizations must be obligated by the end of the second fiscal year and liquidated by the end of the third fiscal year.

Formula and Matching Requirements

Allocations of the Mandatory Funds are based on a State's Federal share of the funding for the now-repealed AFDC-linked child care programs (AFDC/JOBS Child Care, Transitional Child Care, and At-Risk Child Care) in 1994 or 1995, whichever was greater. A State is not required to expend any funds in order to receive its share of the Mandatory Funds. The remaining funds are Matching Funds and are distributed based on the number of children under age 13 in a State compared with the national total of children under age 13. To access Matching Funds, a State must obligate all of its mandatory funds allotted in a fiscal year and maintain 100 percent of the State's share of expenditures for the former programs in fiscal year 1994 or fiscal year 1995, whichever is greater. Matching Funds must be matched at the applicable FMAP rate, which is the Medicaid Program matching rate. Not less than one percent, but not more than two percent of the total Mandatory and Matching funds are reserved for Tribes and tribal organizations based on the number of children living on or near tribal reservations or other appropriate area served by the tribal grantee. Tribes and tribal organizations are not required to provide matching funds. The District of Columbia is treated as a State for purposes of receiving its share of Mandatory and Matching Funds. Territories are not eligible to receive Mandatory or Matching Funds.

Note:
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.

Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.

In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.

Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.