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Subsidized Child Care Assistance Program Policy Manual Chapter 8. Parent fee REVISED 04/27/2026 14

B. Parent Fee Adjustments when the Plan of Care or Eligibility Changes, Including Recertification Whenever the applicant/recipient countable monthly income increases during a certification period, calculate the income outside of NC FAST. The income calculated outside of NC FAST is compared to 85% SMI, if under 85% SMI, then document the increased income in the case notes. The parent fee cannot increase during a 12-month certification period due to changes in income or a change in the level of care. When a recipient reports a decrease in their gross monthly income, the parent fee must be reduced to reflect the reported decreased income. The worker must recalculate and enter the income and decrease the parent fee. A reduction in parent fee is made on the first day of the month when the change is reported. 1. Parent Fee Reinstatement

i. Reinstatement is the action of restoring the assessed parent fee at the initial application or recertification. There are times a parent fee is reinstated after change is reported. If the parent fee decreases during the 12-month eligibility period, the parent fee can be reinstated to the amount that was initially assessed at the most recent application or recertification. The reinstated parent fee cannot exceed the initial parent fee assessed at most recent application or recertification.

ii. At recertification, the child care worker assesses the parent fee based on the family’s income and the parent fee can be increased on the first day of the month following the 10- business day notice upon recertification processing.

The following are instances (but not exhaustive) when the parent fee is to be reinstated: • Refer to Ch.5, III. Sec. E&F: Child Care to Support Child Protective Services/Child Welfare Services when an active case has a CPS/CWS referral that ends