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Subsidized Child Care Assistance Program Policy Manual Chapter 8. Parent fee REVISED 04/27/2026 10

less than 85% SMI but exceeds the Federal Poverty Level (FPL) limits, the child will be given a Graduated Phase Out period of 12-months during which child care subsidy services continue with adjustment of the Parent fee.

A Child Care Action Notice (CCAN) will be sent to notify recipients and providers of the increase in the Parent fee due to new reported income. When the family’s income exceeds 85% SMI at recertification, a ten (10) workday notice will be issued to terminate services. For applicants determined ineligible with less than 10 workdays remaining, care may continue until the current certification end date.

C. PARENT FEE FOR PARTIAL MONTHS 1. There may be times when the child care worker must assess a Parent fee for child care that begins or ends in the middle of the month. For example, when a child starts after the 1st of the month (starts on the 15th), NC FAST will calculate a prorated parent fee amount if the Plan of Care starts after the 1st of the month.

2. The following situations describe how parent fees are determined when child care assistance is needed for part of a month. i. When the monthly parent fee amount and the beginning date are entered, NC FAST will automatically assess the parent fee. ii. When child care assistance is terminated during a month, a partial month Parent fee must be assessed for the number of days care is needed. NC FAST will calculate the Parent fee based on the number of days that care was needed. iii. When there is a hardship and the child attends a partial month, please refer to the Exemption Evidence Job Aid. Hardship cases occur when the child is expected to be absent from care for more than ten (10) days in a service month due to identified situations. Parents are required to