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3.18. Financial Management

A. Monitoring Child Targets and Expenditures

Effective fiscal year 2024, Child Care Subsidy Program allocations are primarily based on the number of approved child targets (i.e. slots). While funding is allocated to support these targets, localities must not serve more children than the number of approved targets, regardless of available funds. Tracking child targets and expenditures in relation to allocations is the most effective method of managing annual allocations and continuing cases without interruption. The LDSS should regularly monitor available child targets, encumbrances and expenditures in VaCMS to see how billed charges compare to funds encumbered for each case. As case changes occur, unused funds will be unencumbered in VaCMS to maximize the use of allocations. VDOE will routinely adjust funding allocated to the localities to more closely align the available (unencumbered) funds with the number of available targets.

VaCMS will track expenditures and project encumbrances for all child care cases. VaCMS will indicate the projected cost through the end of the fiscal year (June 1 – May 31) for families on the waitlist. Current expenditure details and other statistical reports are available at any time in VaCMS. The LDSS does not need to wait until the end of a month to access this information.

B. Mandated Programs

Payment of child care subsidies for children in the following program is mandated: Budget line 871: VIEW, Transitional, TANF Working, Learnfare and SNAP E&T. See Child Care Programs Budget Lines (Appendix C) and Child Care Program Budget Lines’ Descriptions (Appendix D).

C. Requesting Additional Funding

In instances where LDSS have caseloads that cannot be continued within fiscal year allocations, LDSS may request additional targets and/or funding. Requests must be submitted in VaCMS. An Allocation and Target Adjustment Request Guide is located on FUSION under CCECD, Fiscal Support. Justifiable requests for additional targets/funding in non-mandated budget lines will be approved to the extent of available funds/targets statewide.

D. Funds Recovery

The funds recovery process is designed to compare the authorized and encumbered units for a monthly service period to the actual attendance entered for that same service period The funds recovery process runs on the evening of the 15th of each month and recovers payments for which no attendance was recorded during either of the two preceding service periods. If any encumbered attendance unit for a prior service month is not utilized, the encumbered amount for that unit will be reduced. However,