When the federal American Rescue Plan Act and the Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act was passed in March of this year, there were funds set aside to help child care providers. At the end of July, New York State announced that they were accepting applications for the Child Care Stabilization Grant, administered by the New York State Office of Children and Family Services (OCFS). In total NYS has nearly $1.1 billion in funding under this program.
The goal of the Child Care Stabilization Grant is to provide financial relief to child care providers to help cover unexpected business costs associated with the COVID-19 pandemic, and to help stabilize their operations so they may continue to provide care.
The grant can be applied for on-line here and will automatically calculate your estimated grant amount. In order to complete the application, you will need the following information:
- License/registration/enrollment information including: legal name, contact information
- Estimated monthly expenses
- Your bank information if you would like your award deposited directly into your account, otherwise paper checks will be sent via US mail.
Applications must be submitted before November 30, 2021 and grants awarded will be paid in 6 equal monthly payments commencing 30 days after the grant approval.
Who is Eligible for Stabilization Funds?
Your program must fall within one of the categories listed below:
- OCFS licensed programs
- Day Care Centers (DCC)
- Group Family Day Care (GFDC)
- OCFS registered programs
- School Age Child Care (SACC)
- Family Day Care (FDC)
- Small Day Care Centers (SDCC)
- NYCDOHMH permitted programs
- Article 47 programs only
- Enrolled Legally Exempt Group Programs
- Must be enrolled with an enrollment agency
What can funds be used for?
As these funds are federally originated, they must be used in accordance with federal guidelines, which include:
- Personnel costs, including payroll, salaries, similar employee compensation, employee benefits, retirement costs, educational costs, child care costs; and supporting staff expenses in accessing COVID-19 vaccines;
- Rent (including under a lease agreement) or payment on any mortgage obligation, utilities, or insurance; also, may include late fees or charges related to late payments;
- Facility maintenance or improvements, defined as minor renovations, including outdoor learning spaces/playgrounds, and minor improvements to address COVID-19 concerns;
- Personal protective equipment, cleaning and sanitization supplies and services, or training and professional development related to health and safety practices;
- Purchases of or updates to equipment and supplies to respond to COVID–19;
- Goods and services necessary to maintain or resume child care services;
- Mental health supports for children and employees;
- Health and safety trainings for staff, including but not limited to CPR, First Aid, and medication administration.
Funding under the Stabilization Grant cannot be utilized to supplant other state of federal funding received. As a result Head Start and SED funded child care programs (including UPK programs) can apply for Grant funds, however, they must be used to supplement other governmental programs.
When can the funds be spent?
The Stabilization Grant funds can be used to retroactively cover expenses back to January 2020 or can be used prospectively through September 2022 to cover eligible expenses as outlined above, directly related to the COVID pandemic. This provides programs that received relief from PPP and potentially ERTC to utilize the stabilization grant to extend their federal relief through September 2022.
As the Stabilization Grant funds are federally originated, programs need to consider these funds in determining whether they crossed the $700,000 threshold of federally originated funds that would require a Uniform Guidance Audit.
If you have any questions, or require any assistance, please feel free to reach out to us.
Kenneth R. Cerini, CPA, CFP, FABFA
Managing Partner
Ken is the Managing Partner of Cerini & Associates, LLP and is the executive responsible for the administration of our not-for-profit and educational provider practice groups. In addition to his extensive audit experience, Ken has been directly involved in providing consulting services for nonprofits and educational facilities of all sizes throughout New York State in such areas as cost reporting, financial analysis, Medicaid compliance, government audit representation, rate maximization, board training, budgeting and forecasting, and more.