U-LAUNCH: Childhood Development Homes is a Virginia Licensed Home-Based Child Care System operating pursuant to Chapter 14.1 of Title 22.1 of the Code of Virginia and the Virginia Administrative Code. As a licensed system that approves, monitors, and provides centralized administrative services to its approved member homes, U-LAUNCH has direct operational experience implementing the Virginia Child Care Subsidy Program within the licensed system framework. These comments are submitted to promote consistency between the proposed Child Care Subsidy Program Guidance Manual and the existing statutory and regulatory framework governing Licensed Home-Based Child Care Systems.
U-LAUNCH: Childhood Development Homes, a Virginia Licensed Home-Based Child Care System (formerly referred to in the Virginia Administrative Code as a Licensed Family Day System), respectfully requests that the proposed Child Care Subsidy Program Guidance Manual expressly address the role of Licensed Home-Based Child Care Systems in administering Child Care Subsidy Program functions on behalf of their approved member homes.
Virginia's regulatory framework recognizes that a licensed system is more than a collection of independently operating home-based child care providers. Under 8VAC20-770-10, the current regulations define a Family Day System as an entity that approves family day homes as members of its system, refers children to available homes, and, through contractual arrangement, may provide central administrative functions, including, but not limited to, training, technical assistance, consultation, inspection, supervision, monitoring, evaluation, and referrals to health and social services. The use of the phrase "including, but not limited to" demonstrates that the listed administrative functions are illustrative rather than exhaustive.
The same regulation defines an "agent" as a person empowered to act on behalf of an association, partnership, limited liability company, business trust, public agency, or corporation in matters relating to a child day program or Family Day System.
Additionally, the Minimum Standards for Licensed Family Day Systems (8VAC20-810) recognize centralized fiscal administration by requiring licensed systems to maintain financial records, a written schedule of fees charged for services, and a written schedule of payments to member homes specifying the amount, conditions, and frequency of payment. These provisions recognize that licensed systems are intended to provide centralized administrative and financial services to their approved member homes.
Collectively, these regulations establish a framework under which a licensed system may provide centralized administrative and financial functions through written contractual agreements with its approved member homes. However, the proposed Child Care Subsidy Program Guidance Manual does not explain how this existing regulatory authority is intended to operate within the Child Care Subsidy Program.
As a result, Licensed Home-Based Child Care Systems have encountered significant implementation challenges. Although approved member homes may authorize their licensed system through written agreement to provide enrollment management, billing, parent communication, attendance support, compliance assistance, document management, accounting, fee collection, and payment administration, the current subsidy process treats each approved member home as though it operates independently of the licensed system's recognized administrative structure.
Providing guidance on this issue would promote consistency between the Child Care Subsidy Program Guidance Manual and the existing Virginia Administrative Code while supporting the efficient administration of services for families, providers, and local departments of social services.
Accordingly, U-LAUNCH: Childhood Development Homes respectfully requests that the final Guidance Manual include a subsection clarifying the following:
The approved member home may elect to remain the child care provider of record or may designate its legally formed business entity as the provider of record for participation in the Child Care Subsidy Program, consistent with the options available to licensed child day centers. In either case, the provider of record shall remain responsible for compliance with subsidy program requirements, licensing or approval requirements, tax reporting, attendance verification, and program integrity.
A Licensed Home-Based Child Care System (formerly referred to in the Virginia Administrative Code as a Licensed Family Day System) may serve as the authorized administrative agent for an approved member home or its designated business entity pursuant to a written agreement.
When authorized in writing by the provider of record, the licensed system may submit and receive subsidy-related applications, records, notices, authorizations, attendance inquiries, payment information, and other program correspondence on behalf of the provider.
Consistent with the authority recognized under 8VAC20-770 and 8VAC20-810, the licensed system may provide centralized enrollment administration, billing, accounting, fee collection, payment reconciliation, administrative support, and payment-distribution services pursuant to written contractual agreements with its approved member homes.
The provider of record and the licensed system shall maintain complete and auditable records identifying the gross subsidy payment, any authorized contractual administrative fee, and the net amount distributed to the approved member home.
Designation of a licensed system as an administrative agent shall not relieve the provider of record of responsibility for compliance with all applicable Child Care Subsidy Program requirements, licensing or approval requirements, attendance verification, health and safety standards, background check requirements, fraud prevention requirements, or other program integrity obligations.
If the Virginia Department of Education determines that any portion of the administrative-agent functions described above is prohibited by state or federal law, U-LAUNCH: Childhood Development Homes respectfully requests that the final Guidance Manual identify the specific statutory, regulatory, or federal funding authority establishing that limitation.
In the absence of such authority, the final Guidance Manual should recognize and provide guidance on the existing administrative and contractual authority granted to Licensed Home-Based Child Care Systems under 8VAC20-770 and 8VAC20-810, thereby promoting consistent implementation of Virginia law, improving administrative efficiency, reducing confusion among providers and local departments, and recognizing the centralized administrative role that Licensed Home-Based Child Care Systems were established to perform under Virginia's regulatory framework.