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(1) Child Care assistance is to support an eligible client's monthly employment and any allowed training activity and allows for temporary absences and unforeseen circumstances. (2) A provider must provide at least eight hours of care during the initial benefit month for which a CC payment was issued to be eligible for CC payment. (a) A provider has the burden of proof to demonstrate the provider provided care to any CC client for which it receives CC payment. (b) Pursuant to Subsection R986-700-727(2), if a provider is not able to produce a time and attendance record for a specific CC client for a specific month, there is a rebuttable presumption that the provider did not provide child care for that CC client during that month. (3) Inappropriate use of a CC payment includes: (a) applying the CC payment to a: (i) copayment; (ii) registration fee; (iii) late fee; (iv) field trip; or (v) client's out of pocket expenses; or (b) carrying forward the CC payment for future months of service. (4) An excess CC payment cannot be used to cover an outstanding balance, a copayment, a registration fee, a late fee, a field trip, or future services. If excess funds are issued for a month of service, the excess funds must be returned to the Department. The CC payment for the following month may be reduced to offset the over-issuance. (5) A provider who receives a CC payment when the child was not enrolled is responsible for repayment of the resulting overpayment under Title 35A, Chapter 3, Part 6, Administrative Determination of Overpayment Act, and Sections R986-700-731 and R986-700-731.1, and there may be a disqualification period pursuant to Sections R986-700-733 and R986-700-734, and potential criminal prosecution under Title 76, Chapter 8, Part 12, Public Assistance Fraud. (6) A provider who provides services for any part of a month and then terminates services with the client or for a child during the month shall reimburse the Department for the days when care was not provided. (a) If it was necessary to remove the child from care because the child or others were endangered, and the incident was reported to CCL or local authorities, the Department may waive repayment. (7) The Department will issue a IRS Form 1099 annually where applicable to each eligible provider who received a CC payment during the year. (8) A provider who applies CC funds inappropriately may be subject to an overpayment and possible disqualification pursuant to Sections R986-700-731, R986-700-733, and R986-700-734. R986-700-729. Withholding of CC Payment. (1) Pursuant to Section R986-700-731.1, CC payment may be withheld if a provider is found to have been overpaid and: (a) fails to repay the overpayment; or (b) fails to enter into a repayment or recoupment plan in accordance with Department policy; or (c) is not current with repayment in accordance with a repayment plan. (2) CC payment may be withheld if a provider fails to comply with each requirement of Sections R986-700-726 and R986- 700-727. (3) CC payment withheld pursuant to Section R986-700-729 will be released once the provider complies with the requirement. (4) A provider shall not charge a client for a withheld CC payment. Although the client remains eligible, the provider will not receive CC payment until the provider complies with all participation requirements as provided by Sections R986-700-726, R986- 700-727, R986-700-729, and R986-700-731.1. R986-700-730. Audits and Investigations. (1) The Department has the right to investigate a child care provider and audit the provider's records. (a) An audit or investigation may be performed by a person or entity under contract with the Department, a Department employee, or other person authorized by the Department to obtain information on behalf of the Department. (b) A provider must cooperate with an investigation or audit to determine ongoing client eligibility or if client eligibility was correctly determined. (2) A client or a provider must cooperate with any investigation or audit in a timely manner. (a) A timely manner means ten business days for written or electronic documentation and two business days to return a phone call or email request. (b) Cooperation means timely: (i) providing information and verification of any record as requested by the Department; (ii) returning a telephone call; and (iii) responding to an email request. (c) Cooperation with an audit includes submitting a written statement that the person chooses not to respond to an audit finding included in a draft audit report.