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4.4 Disqualifications

A. Disqualification Period

Applicant/recipients will be disqualified from participating in the child care subsidy program for three months upon the first finding of child care fraud, 12 months upon the second finding, and permanently upon the third finding, unless otherwise mandated by the court.

If an applicant/recipient is found to have committed fraud by the court, the Child Care Worker will use the closure reason of “Fraud” and record the disqualification period in the case narrative. When “Fraud” is selected as the closure reason, the LDSS must manually track the length of the disqualification based on the ruling of the court. Cases closed prior to the implementation date of this guidance must also continue to be tracked manually by LDSS. If an applicant/recipient is found to have committed fraud through the ADH process, the Child Care Worker should close the case using “Closure due to Fraud 1, 2, or 3.” When this option is selected, VaCMS will alert anyone who attempts to associate a case during the disqualification period of the disqualification. LDSS must continue to manually track cases closed prior to the effective date of this guidance with the closure reason “Fraud.”

B. Failure to Enter into a Repayment Schedule

Applicant/recipients who fail to enter into a written repayment schedule with the LDSS for overpayment due to fraud or for an IPV overpayment will be disqualified from participating in the child care subsidy program until entering into a written repayment schedule. However, if the parent files a valid appeal regarding the overpayment, the parent will not be required to enter into a repayment schedule until the appeal decision is issued. For non-fraud overpayments that occur within the 12-month eligibility period, applicant/recipients who fail to enter into a written repayment schedule with the LDSS will be disqualified at the next redetermination.

C. Failure to Make Payments

Applicant/recipients who fail to make three consecutive payments according to the written repayment schedule with the LDSS for overpayment due to fraud or for non-fraud overpayment will be disqualified from participating in the child care subsidy program, upon missing the third payment, until all delinquent payments are made. If a recipient agrees to make monthly payments, they are out of compliance the first month a payment is missed. Upon payment of all delinquent payments according to the written repayment schedule, child care subsidy eligibility will resume for parents who are not otherwise disqualified.