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7 AAC 39.040. Allowable expenditures. (a) A participating child care facility may spend grant money only for operation of the facility. Categories of allowable expenditures related to facility operation are as follows:

(1) staff salaries and benefits;

(2) cost of providing for substitute care;

(3) health and safety costs;

(4) costs of supplies, equipment, and activities;

(5) child development education and training. (b) A facility shall retain receipts and other records of expenditures under this section as required by 7 AAC 39.070. (Eff. 6/23/2006, Register 178) Statutory Authority: Authority: AS 47.25.001 AS 47.25.071 7 AAC 39.045. Program violations. (a) The department may impose a sanction under 7 AAC 39.050 upon a participating child care facility for one or more of the program violations set out in (b) of this section. The department will impose a level of sanction necessary to ensure benefits are being paid in accordance with AS 47.25.071 and this chapter. (b) A facility is subject to sanction under this chapter for

(1) providing false or misleading information or withholding information in order to participate or receive payments under the child care grant program;

(2) failing to maintain records concerning the program as required by 7 AAC 39.040(b) and 7 AAC 39.070;

(3) failing to cooperate with a review or investigation by the department, including a