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003. DEPARTMENT CONTACT WITH RECIPIENTS. The Department may need to contact recipients during their eligibility period to discuss their eligibility, issues regarding service delivery, or when additional information is needed. Recipients must update the Department when their contact information changes and cooperate with the Department in providing information. 003.01 NOTICE OF AGENCY ACTION. Individuals will receive a notice of action when: (1) An applicant is determined ineligible for Child Care Subsidy; (2) A recipient is found ineligible at the time of verification or redetermination; (3) A requested service is denied; (4) Provided services are to be reduced or terminated; or (5) Changes in the sliding fee. 003.01(A) ADVANCE NOTICE. Recipients are notified when services will be reduced or terminated. 003.01(B) ADEQUATE NOTICE. In cases of substantiated recipient fraud, the recipient is sent a notice of termination or reduction. 003.01(C) NOTICE NOT REQUIRED. The recipient will not receive a notice of action when: (i) The Department learns of a recipient’s death or death of his or her child; or (ii) The recipient’s whereabouts are unknown. 003.01(D) SERVICE CONTINUATION DURING APPEAL. In cases where advance notice has been given, the recipient may appeal. If an appeal is requested in writing within 10 days following the date of the notice of action was mailed, the adverse action is not taken until a fair hearing decision is made. In situations where only an adequate notice was required, service is not continued pending a hearing decision. 004. RATE UNIT AUTHORIZATIONS. The rate at which providers are reimbursed is set by the Department. 004.01 PROVIDER RATES. A provider must establish a private pay rate before being approved as an enrolled provider. Child Care Subsidy payments to a provider will not exceed the private pay rate. If the rate the provider charges the public is higher than the Department's rate, the Department will pay the Department’s established maximum. If the provider's rate for the public is lower than the Department's maximums, the Child Care Subsidy rate paid to the provider will not be more than the provider’s rate charged Page 22 of 41