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effectiveness. iv. [x] Will be used to deny children eligibility to participate in CCDF. v. If any components above are not checked, describe: 7 Quality Improvement Activities The quality of child care directly affects children’s safety and healthy development while in care settings, and high-quality child care can be foundational across the lifespan. Lead Agencies may use CCDF for quality improvement activities for all children in care, not just those receiving child care subsidies. OCC will collect the most detailed Lead Agency information about quality improvement activities in annual reports instead of this Plan. Lead Agencies must report on CCDF child care quality improvement investments in three ways: 1. In this Plan, Lead Agencies will describe the types of activities supported by quality investments over the 3-year period. 2. An annual expenditure report (the ACF-696). Lead Agencies will provide data on how much CCDF funding is spent on quality activities. This report will be used to determine compliance with the required quality and infant and toddler spending requirements. 3. An annual Quality Progress Report (the ACF-218). Lead Agencies will provide a description of activities funded by quality expenditures, the measures used to evaluate its progress in improving the quality of child care programs and services within the State/Territory, and progress or barriers encountered on those measures. In this section of the Plan, Lead Agencies will describe their quality activities needs assessment and identify the types of quality improvement activities where CCDF investments are being made using quality set-aside funds. 7.1 Quality Activities Needs Assessment 7.1.1 Needs assessment process and findings a. Describe the Lead Agency needs assessment process for expending CCDF funds on activities to improve the quality of child care, including the frequency of assessment, how a range of parents and providers were consulted, and how their views are incorporated: The Lead Agency’s needs assessment approach is ongoing and incorporates multiple efforts with varying timeframes, relying on both internal and external resources. Internally, the state uses data from components of Quality Rated, Georgia’s quality rating and improvement system, to assess where additional quality activities are needed. The Lead Agency’s research team regularly meets with Quality Rated program leaders to review data and design needed evaluations. For example, the rating process includes an unannounced observation using the Environment Rating Scale (ERS) family of instruments. ERSs are widely used, valid and reliable observation tools that measure the quality of the child care environment. The data from the indicators covered in ERS observations reveal additional areas where improvement is needed or where quality is already well supported.