Managing Financial Aid
Child Care Standards and Guidelines
Child Care Eligibility Desk Aid
1. Residency Requirements for Eligibility
2. Deployed Military Parents are a Priority
3. Calculating Family Income
4. Determining Eligibility for the Child Care Financial Aid Wait List/Available Funds
5. Mandatory Waiting Period
6. Documenting Child Support
7. Calculating Child Support
8. Calculating Work Hours
9. Online Training
10. Suspending Child Care Financial Aid
11. Transitional Child Care
12. Changes to Customer Status
13. Eligibility Start and End Dates
14. Transferring Vendors
15. Vendor Placed on Corrective or Adverse Action
1.
Eligibility requirements related to the child’s residency
Children must reside with a family within the Gulf Coast workforce area
Children must reside with the parent during the time for which child care financial aid for the
child is requested and received.
A child residing with a parent must be living with and physically present with the parent with
one exception: The child of a deployed military parent/s meets the residency requirement if the
child resides in the Gulf Coast area with a person standing in loco parentis for the child while the
child’s parent or parents are on military deployment.

Income eligibility for children of deployed parents may be determined based on the deployed
person’s income or the income and work/school activities of the person standing in loco
parentis for the child.

All deployed parents automatically meet the Board’s work requirements.

Staff must make every effort to accommodate deployed military parents in situations where
the deployment does not allow the parents to provide information in the required time
frames.
We define a parent as the individual responsible for the care and supervision of a child.
Managing Financial Aid – Child Care Standards and Guidelines —Page 1
February 20, 2015
The residency requirement does not change our current policy related to child care financial aid
during court ordered visitation or custody arrangements.
2.
Children of Deployed Military Parents’ Priority Group
Children of deployed military parents who are not eligible for other child care financial aid
through the military must be added to the wait list priority groups.


3.
The form titled “Add Your Name to the Child Care Financial Aid Wait-List” includes all the
priority groups
Before giving a deployed parent or the person caring for the deployed parent’s child, priority
in receiving child care financial aid we must determine that the parent has applied for child
care assistance through the military.
o The parent or caregiver must sign a statement saying she/he is not receiving military child
care assistance.
o The deployed parent, or person caring for the deployed parents child, should provide
orders indicating deployment and
o Any copy, receipt, or other correspondence with Child Care Aware indicating application
for military child care financial aid.
o Deployed military families may contact Child care Aware at the following:
 http://www.naccrra.org/military-families
 Email - msp@usa.childcareaware.org
 Phone - 1(800) 424-2246
Calculating family income
Family Income includes:
 Early withdrawals from a 401K, 457, or other such retirement plans not rolled over within 60
days of withdrawal.
 Lottery payments greater than $600 is income included in determining eligibility for child
care financial aid.
 Lump sum payments from pretax savings withdrawals and lottery winnings. Prorate lump
sum payments over the total months of the eligibility period
Family Income excludes
 Income from children in the household between the ages of 14 and 19 who are attending
school and
 Early pension withdrawals classified as hardship withdrawals by the IRS.
Managing Financial Aid – Child Care Standards and Guidelines —Page 2
February 20, 2015
4.
Determining Eligibility for Child Care Financial Aid Wait
List/Notification of Available Funds
We will continue to determine the eligibility for all new customers applying for financial aid at
the time the customer applies. If we do not have funds immediately available for the customer,
we will add the customer name to the Wait List for customers requesting child care financial
aid.
All customers must submit a financial aid application to apply for our financial aid. Customers
whose eligibility for continued child care financial aid depends on cooperation with Workforce
Solutions are tracked and financial aid started and stopped by career office tracking units.
When WFS does not have funds for eligible customers we notify the customer of her eligibility
and tell her we will let her know as soon as we have funds.
Child Care Financial Aid Wait List – Funds for child care FA are not available to new income
eligible customers
1. Customers tagged as TANF applicant, Choices participant, SNAP E&T participant, and
DFPS referrals are immediately provided requested Child Care financial aid. In addition,
Transitional customers who are eligible for child care FA according to guidance in Section
11 of this document are immediately provided requested Child Care financial aid. These
customers sign the Parent Agreement for Use of the Attendance Card before we authorize
financial aid with the care provider.
http://www.wrksolutions.com/Documents/Staff/fin-aid-appinst/application/Fillable_PDFs/Parent-Agreement-for-Use-of-CCAA.pdf
2. The customer or the career office forwards a signed and dated financial aid application to
the call center.
3. Call Center Staff screens the application and contacts the customer to let her know what we
need to establish her eligibility and the deadline for providing the required information.
4. Call center staff sends a denial letter and appeals form to customers who do not meet
eligibility requirements.
5. Call center staff put eligible customers on the wait list for child care financial aid. Use the
date of the completed application for the wait list date. Definition of completed application
is found in the Financial Aid Application Instructions
http://www.wrksolutions.com/Documents/Staff/fin-aid-app-inst/3-FA-ApplicationInstructions.pdf
6. Call center staff opens a program detail in TWIST with the customer’s eligibility
information. Do not enter a TWIST referral to a provider until funds are available to the
customer. Do not ask the customer to sign the Parent Agreement
7. Call center staff sends the customer the letter titled “Placed on Wait List”. Send both
English and Spanish letter translations.
8. Call center staff will manage the wait list by adding the number of children planned each
month. They will adjust the number we want to add in future months as we review the
number of children leaving our subsidized care and the number added.
9. Call center staff will use an Access database to manage the wait list.
Managing Financial Aid – Child Care Standards and Guidelines —Page 3
February 20, 2015
10. Call center staff sends the letter titled “Called from Wait List” in English and Spanish each
week to customers taking into account priority factors and the completed application date.
They send the number of letters expected to add approximately the number of new children
planned for the month.
11. We give customers called from the wait list 10 business days to respond to tell us they still
want/need child care financial aid. These customers sign the Parent Agreement and tell us
the names of children who need subsidized care and the name of their chosen provider.
The Parent Agreement is found on the web at
http://www.wrksolutions.com/Documents/Staff/fin-aid-appinst/application/Fillable_PDFs/Parent-Agreement.pdf
12. The Parent Agreement asks the customer if the information she submitted to establish her
eligibility is changed. If she tells us her information has changed, call center staff will
follow the process in section 12 of this document: Changes to Customer Status.
13. Customers called from the wait list will be asked to recertify eligibility 11 months from the
date of initial eligibility, not the date the customer begins receipt of child care financial
aid.
14. We may conduct a full redetermination of eligibility to establish a new eligibity date when
the customer reports a status change resulting in a new Program Detail within three months
or less of the Eligibility End Date.
15. Call center staff closes the program detail, sends a denial letter and appeals form to
customers who do not respond to the “Called from Wait List” letter within 10 business
days. http://www.wrksolutions.com/staff-resources/system-resources/contract-management
5.
Mandatory waiting period for reapplication after a denial of
child care financial aid
A parent is not eligible to reapply for child care financial aid or be placed on the waiting list for
30 days if the parent’s eligibility or child’s enrollment is denied for any of the following reasons:
 Excessive absences – 31 or more days of absences or non-reported presence during the 11month eligibility period
 Non-payment of the parent share of the cost
 Five consecutive absences on authorized days of care with not parent contact with the child
care provider or child care contractor
 Failure to report within 10 days of occurrence, any change in the family circumstances that
would have caused the family to be ineligible for child care financial aid.
6.
Documenting child support
Child support payments are included in the calculation of income used to determine eligibility
for financial aid for child care service.
A customer must provide us with documentation of her child support and her cooperation with
the Attorney General.
A customer may document child support by
Managing Financial Aid – Child Care Standards and Guidelines —Page 4
February 20, 2015

Providing us proof she is cooperating with the Attorney General in one or more open child
support cases; or

Providing us proof she is opening a child support case with the Attorney General; or

Documenting an existing arrangement with the non-custodial parent for child support. (If
there is an existing agreement, the customer does not need to open a child support case with
the Attorney General.)
A customer may provide the following kinds of acceptable child support documentation for
initial eligibility in financial aid applications:

Already cooperating
o Print out of the “Income Verification” screen of her child support case from the Attorney
General’s website http://childsupport.oag.state.tx.us, or
o Copy of a letter or list of support payments from the county or Attorney General (the
customer can get these online if she knows her cause or PIN number), or
o Copy of the divorce decree, separation agreement or court order for child support –
showing the amount of support, or
o Copy of check stub from the county child support enforcement agency or Attorney
General, or
o Copy of bank statement showing deposits of support.

Opening a new case
o Print out of the OAG Child Support screen showing the customer’s application has been
processed, or
o Copy of the OAG acknowledgment letter showing the customer’s cause number.
(Applicants receive an acknowledgement letter from OAG within twenty days of their
online application for child support.)
A customer may open a new case by going to the Attorney General’s website
http://childsupport.oag.state.tx.us or by visiting one of the Attorney General’s offices.
NOTE: Workforce Solutions staff are prohibited from accessing the Attorney General’s
child support web site to obtain documentation using the customer’s access
personal identification number.

Existing arrangement with non-custodial parent
o Copy of bank statement showing deposits of support, or
o Copy of cancelled checks or receipts, or
o Copy of other proof the non-custodial parent has made in-kind support payments to or on
behalf of the custodial parent or child(ren).
Self-attestations or declarations from the custodial parent alone are unacceptable. A customer
must show us that she is receiving child support on regular basis. This must include
Managing Financial Aid – Child Care Standards and Guidelines —Page 5
February 20, 2015
documentation of regular receipt of support over a period a time. This can include in-kind
support.
Retain all documentation provided by the customer in the customer’s paper file to support
eligibility determination for financial aid.
Additional child support notes

Customers are not required provide proof of child support if one of the following situations
exists:
o The paternity of the child cannot be established after a reasonable effort to do so and the
customer has a letter from the AG’s office explaining such.
o The child is a product of an incestuous relationship and the customer can show proof,
such as a birth certificate or police report.
o The parent of the child is a victim of domestic violence and the customer can show proof,
such as a police report.

The customer provides documentation of child support income during the process of
eligibility certification or recertification. If the customer does not provide the documentation
within the timeframes in Workforce Solutions financial aid policy, she is not eligible for
child care financial aid.

We may certify as eligible (for 11 months) - and provide financial aid (for 3 months) for a
customer who is opening a case with the Attorney General’s office. The customer has up to
3 months from date of certification to provide us with documentation of her cooperation and
the open case, or we will stop the financial aid. When the customer provides the
documentation of her cooperation with the Attorney General’s office – we authorize the
additional months of financial aid remaining in the customer’s 11 month eligibility period.
7.
Calculating Child Support
Child support income received in the most recent complete month is included income when
determining eligibility for financial aid for child care. Proof of monthly income from child
support may be documented in a variety of ways:






Court order
Divorce decree
Personal receipts of a self-arranged agreement with the NCP
Bank statement
OAG full printout
OAG Child Support Income Verification printout
Managing Financial Aid – Child Care Standards and Guidelines —Page 6
February 20, 2015
You’re only required to include child support received in the most recent complete month in
the income calculation. This is relatively easy when a customer supplies documents showing a
consistent amount paid over a reasonable amount of time. However, many customers receive
inconsistent payments of varying amounts over a period of time. When this occurs, it’s more
accurate and more beneficial to our customers to use the documentation supplied by the customer
to calculate an average monthly child support payment. This allows you to consider anomalies,
such as lump sums, irregular payments, and varying amounts that don’t accurately represent a
normal monthly child support amount.
For example, it’s not fair to a customer who finally receives a $4,000 payment for back-owed
child support in the month before applying for financial aid to use that amount in the total
income calculation. It would almost certainly put her over income, and it doesn’t represent the
average income received monthly from child support. It’s better to divide that amount by the
number of back-owed payments it represents. The same is true for irregular payments of
different amounts. It’s much more accurate to add up the total amounts and divide them by the
number of months they represent.
Note: Regardless of the method/documentation used to determine monthly child support,
always record your method of calculation in Counselor Notes. Common sense, good
judgment, and customer service are critical skills when determining child support monthly
income.
Information on the following pages provides you with guidelines and examples for accurately,
fairly, and consistently determining child support received in the last complete month.
Managing Financial Aid – Child Care Standards and Guidelines —Page 7
February 20, 2015
Customer Receives Consistent Payments
WEEKLY
(Multiply by 4.33)
MONTHLY
Child support received: $300/month
Other reported income:
$1,500
Child support:
$ 300
Total Monthly Income:
$1,800
TWICE/MONTH
(Multiply by 2)
Other reported income:
Child Support:
Total Monthly Income:
$1,500/month
$ 324.75
$1,824.75
EVERY TWO WEEKS
(Multiply by 2.165)
Child support received: $150 bi-monthly
$150 x 2 =$300
Other reported income:
Child support:
Total Monthly Income:
Child Support Received: $75/week
$75 x 4.33 = $324.75
$1,500/month
$ 300
$1,800
Child support received: $150 every 2 weeks
$150 x 2.165 = $324.75
Other reported income:
Child support:
Total Monthly Income
$1,500 /month
$ 324.75
$1,824.75
Customer Receives Inconsistent and/or Varying Payments
Month
January
February
March
April
May
June
July
August
September
October
November
TOTAL
Amount
Received
$500
0
0
0
0
0
$2,500
$500
$250
0
$250
$4,000
Divide the total amount received by the number of months it
represents. In this example, the customer received $4,000
over a period of 11 months.
Total child support received: $4,000
Number of months represented: 11
$4,000 ÷ 11 = $364
Other reported income:
Average monthly child support:
Total Monthly Income
$1,500/month
$ 364
$1,864
Managing Financial Aid – Child Care Standards and Guidelines —Page 8
February 20, 2015
Customer Received a Lump Sum Payment Covering More Than One Month
January
February
March
April
May
June
July
August
September
October
November
TOTAL
0
0
0
0
0
0
0
0
0
0
$4,000
$4,000
Divide the lump sum amount by the number of months for
which the payment represents.
Total child support received: $4,000
Number of months represented: 11
$4,000 ÷11 = $364
Other reported income
Monthly child support
Total Monthly Income
$1,500/month
$ 364
$1,864
OAG Child Support Income Verification Printout with Inconsistent Payments
Date
09/29
09/22
09/12
09/02
08/22
08/15
08/11
07/31
07/24
07/17
07/07
5/23
Amount
$119.54
$50.16
$88.92
239.08
88.92
119.54
119.54
119.54
50.16
88.92
239.08
119.54
Notice the printout to the left displays only
the last 12 payments made. When a
customer receives consistent payment
amounts on consistent dates, it’s easy to
determine the monthly child support amount.
But, most printouts look like this example
– payments are irregular and the amounts
vary. Sometimes whole months are missing.
Apply the method below when using the OAG 12-Payment Verification printout with
inconsistent payments.
1. Determine the span of time during which the 12 payments were received. (In the example
above, the customer received payments from May to September, a total of five months.)
2. Add all 12 payments together ($1,442.94 in example above).
3. Divide total payment amount by total number of months in the time span (include months
within the time span when no payment was received). 1,442.94 ÷ 5 = $288.59
4. Include monthly child support amount ($288.59) in total income calculation.
If the customer disputes your calculation of an average monthly amount,
request additional documentation to accurately reflect her income.
Managing Financial Aid – Child Care Standards and Guidelines —Page 9
February 20, 2015
8.
Calculating Work Hours
Customers working, or in school, or both in school and working an average of 25 hours or more
per week (50 hours per week for a 2-parent family) may qualify for child care financial aid.
In general, employers pay their workers weekly, biweekly, semi-monthly or monthly. We
developed the chart below to help staff determine if the customer is working 25 hours or more
per week when Workforce Solutions has a paycheck or paycheck stub to verify work hours.
Pay Period
Weekly
Biweekly (every 2 weeks)
Semi-monthly (twice a month)
Monthly
Standard Hours
Minimum
25 hours
50 hours
54 hours
108 hours
Use the following guidance when determining the number of hours worked in various pay
periods.




Ask the customer for the wage rate reflected in the paycheck if it is not included
Divide the gross pay by the customer’s hourly rate of pay.
Compare the hours worked to the standard hours in the chart above.
Document the calculation in TWIST counseling notes.
Example
The customer earns $8.00 an hour and is paid semi-monthly (twice a month) on the 1st and the
15th.



Semi-monthly paychecks must reflect wages for a minimum of 54 hours in order to comply
with the minimum 25 hour work requirement.
The customer provides Workforce Solutions with a paycheck stub showing gross wages of
$436.00. $436/$8 = 54.5 hours. The customer worked an average of 54.5 hours during the
pay period. The paycheck stub is acceptable proof she is working 25+ hours per week.
Document the calculation you are using for hours in a TWIST counselor note:
Customer earns $8.00 an hour and is paid twice a month on the 1st and the 15th. She
provided a paycheck stub showing gross wages of $436.00. $436/$8 = 54.5 hours. The
customer worked an average of 54.5 hours during the pay period. The paycheck stub is
acceptable proof she is working 25+ hours per week.
Managing Financial Aid – Child Care Standards and Guidelines —Page 10
February 20, 2015
9.
Attending Online Training
A customer may enroll and participate in a distance learning program or online courses
included as part of a school’s curriculum for an education/training program.
A customer who needs assistance with child care expenses in order to participate in online
education may qualify for Workforce Solutions child care financial aid, if
 She meets all general eligibility requirements (income, child support case, citizenship, and
hours per week in school or in school and working); and
 She provides Workforce Solutions with a copy of her registrations and course syllabuses,
describing the courses and the online delivery requirements.
Staff talks with the customer to determine how much time the customer will need to participate
in and complete assignments for the online courses. Staff documents the conversation in
TWIST Counseling Notes.
Staff authorizes financial aid for child care in TWIST for the number of days of care the
customer needs.
Example 1:
Mary Jones applies for financial aid to pay for child care needed while she attends school. She
is enrolled in a distance learning training program with Way Far Away School. She provides a
copy of her registration and syllabus showing the requirements of her courses including
assignment due dates. Online classes are scheduled regularly every Monday, Tuesday and
Thursday for 3 hours each day.
This semester she is taking 9 credit hours or 27 clock hours – more than the required minimum
25 hours. She is eligible under the income guidelines for CCDF, she is a widow without a need
for a child support case, and her daughter is a citizen.
Staff talks with the customer to discuss her child care needs. She will need child care for the 3
days she’s attending classes. She expects to be able to complete her homework assignments
during these 3 days. Staff award financial aid for child care for 3 days - Monday, Tuesday
and Thursday.
10.
Suspending Financial Aid
Customers may have interruptions - both planned and unexpected - in work and school/training
affecting the service they receive from us.
Under certain circumstances, we can suspend financial aid for a limited period of time. We don’t
require a customer whose aid was suspended to reapply for child care financial aid, and we won’t
place her on a wait list if she returns to work, education or training within the time allowed for
the suspension.
Managing Financial Aid – Child Care Standards and Guidelines —Page 11
February 20, 2015
A suspension does not require a child care provider to hold a place for a child, unless the
provider agrees to do so.
We are updating the procedures for documenting and tracking suspensions to change the way
staff have been handling eligibility and referrals for customers requesting financial aid for child
care.
Documenting and Tracking Suspensions
Types of Suspensions
Temporary Incapacitation. When a customer is temporarily incapacitated but
intends to return to work, school or training, she may receive up to 60 calendar days
of continued child care financial aid while she recuperates. She may suspend her
financial aid for up to 30 calendar days more.
Temporary Interruption. When a customer has a temporary interruption in work,
education, or job training activities and is unable to meet minimum activity
requirements, she may suspend child care for up to 90 calendar days from the
documented effective date of the interruption.
Temporary interruptions include brief breaks such as Thanksgiving, Christmas, spring
break, breaks between the end of the last summer session and the beginning of the fall
semester, court ordered visitation - or other breaks of similar brief duration.
Documentation Requirements. Prior to any suspension of child care, a customer must provide
Workforce Solutions:
 documentation from the employer stating the customer will be returning to work
following the temporary interruption of these activities or medical incapacitation; or

documentation from the training provider stating that the customer will be returning to
job training activities following the temporary interruption of these activities or medical
incapacitation; or

written notification of the customer’s intent to enroll in an educational institution
following the temporary interruption of educational activities; and

A doctor’s statement that the customer needs medical leave from work or school with an
end date no more than 90 days from the initial suspension
Tracking the Eligibility Period and Referrals. In the TWIST Child Care Program Summary
tab - enter the customer’s eligibility period start and end dates for the full period of eligibility
(i.e. 11 months).
Note: If the customer’s eligibility depends on school attendance and she/he
will reach 65 credit hours before the end of 11 months you must enter a
shorter eligibility period unless one of the following applies:
Managing Financial Aid – Child Care Standards and Guidelines —Page 12
February 20, 2015
1) the parent is eligible through a WFS local initiative arrangement, 2) she/he
is working toward a degree in a high skill/high growth occupation, or
3)she/he is part of a two parent household likely to remain eligible.
In the Referral tab – enter the period of time you are “authorizing” care. When a customer is
attending school – we authorize care for each semester of school. Complete the referral tab and
make sure to include the following:



End Date - is the planned last date of care occurring before the customer’s temporary
incapacitation or interruption.
End Reason - select “1-Suspension”
Expected Return Date – is the date the child is expected to return to the provider after
the break in care.
Suspension Notice/Letter for Customers. Provide the customer with the suspension letter.
File a copy of the notice in the customer’s file.
After the Suspension. When a customer notifies us she has returned to work or school, we
authorize financial aid for child care – by providing the customer with a new referral with new
start and end dates. In the referral tab in TWIST – we right click and add a new referral.
A customer remains eligible during the time of her suspension.
After returning from a suspension, our normal rules apply, and a customer must report within
10 days any changes in hours and pay.
Example 1: Suspension for Temporary Interruption – semester breaks in training
Mary Smith submitted a complete application for financial aid for child care. She needs child
care for her son while she attends school full time at Lone Star College. She is enrolled full
time for the Spring semester which ends on May 13th. She plans to attend the 2nd summer
session which begins on July 12th and ends on August 19th. We certified her eligible and
awarded her financial aid on 1/26/2012. She is eligible for 11 months.
In the customer’s TWIST record - we enter an eligibility start date of 1/26/2012 and an
eligibility end date of 12/26/2012. Her eligibility recertification date is also 12/26/2012. We
authorize child care for the Spring semester and enter the referral in TWIST with a start date of
1/26/2012, an end date of 5/13/2012 and an expected return date of 7/12/2012.
The tracker runs a monthly report to monitor child care suspensions (TWIST Report #236
Child Care Customers on Suspension Report). On 5/13/2012 – Workforce Solutions office
staff (usually the financial aid specialist tracker) mails a suspension letter (stop care –
temporary approval) to notify the customer her child care financial aid has been suspended and
requiring her to contact us by 7/12/2012 if she wants her child care financial aid reinstated.
On July 12, 2012 – the customer calls the career office to request her child care be reinstated so
she can attend the Summer II school session. She submits a copy of her school registration
Managing Financial Aid – Child Care Standards and Guidelines —Page 13
February 20, 2015
form showing she’s registered for the Summer II session. The customer tells us she plans to
attend the Fall 2012 semester beginning on August 27th. We authorized child care for the
Summer II session and enter the referral in TWIST with a start date of 7/12/2012 and a referral
end date of 8/19/2012.
On 8/19/2012 – Workforce Solutions office staff (usually the financial aid specialist tracker)
mails a suspension letter (stop care – temporary approval) to notify the customer her child care
financial aid has been suspended and requiring her to contact us by 8/27/2012 if she wants her
child care financial aid reinstated.
Staff continues to suspend child care financial aid for each break in training during an
eligibility period.
Example 2: Suspension for Temporary Incapacitation – Surgery
John Jones submitted a complete application for financial aid for child care. He needs child
care for his two children while he works. We certify him eligible and award financial aid on
1/26/2012. He is eligible for 11 months.
In the customer’s TWIST record - staff enters eligibility start date of 1/26/2012 and eligibility
end date of 12/26/2012. His eligibility recertification date is also 12/26/2012. We authorize
child care for the full 11 months of his eligibility period. Enter the referral in TWIST with a
start date of 1/26/2012 and end date of 12/26/2012.
 On May 25th John Jones tells us he will be on medical leave from work and his children
will be cared for by relatives beginning June 1st through July 12th. He provides a doctor’s
statement showing he needs medical leave from work beginning June 1st and ending July
12th.
He provides an absence leave request signed by his supervisor approving his planned absence
dates and a planned return to work date of July 13th.
In the customer’s TWIST record - Workforce Solutions office staff enters: a referral end date
of May 31, 2012, End Reason of 1-Suspension and expected return date of 7/12/2012. (The
eligibility end date and recertification date do not change.) Staff also mails a suspension letter
to notify the customer his child care financial aid is suspended and requiring him to contact us
by 7/2/2012 if he wants his child care financial aid reinstated.
11. Transitional Child Care
A customer who is transitioning from TANF benefits to self-sufficiency may be eligible for
financial aid for child care for a limited amount of time.
Eligibility for Transitional child care is based on the parent’s employment status at the time of
TANF denial, not the HHSC coded reason for the TANF denial.
Managing Financial Aid – Child Care Standards and Guidelines —Page 14
February 20, 2015
We determine eligibility for Transitional child care based on the parent’s
work status and income.
A customer is eligible for Transitional child care financial aid if the customer
 was denied TANF and was employed at the time of the denial ; or
 was denied TANF in the past 30 days because of expiration of TANF State time limits
(includes “child only” TANF cases); or
 cooperated with us (TANF/Choices) and was denied TANF because his or her income
exceeds TANF eligibility limits when child support payments are included in the income
calculation;
AND- the customer needs child care to work and/or attend training or an educational program
for a combination of at least 25 hours per week for a single-parent family or 50 hours per week
for a two-parent family.
Transitional child care is available for a period of:
 12 months from the effective date of the TANF denial; or
 18 months from the effective date of the TANF denial for a customer exempt due to
having a child under age 1 – if the customer volunteered to work with Workforce
Solutions.
 4 weeks from the date of the expiration of TANF time limits for a customer who is not
employed when TANF expires - to allow time to search for work.
 8 weeks from the date of TANF denial – for a customer who is cooperating with
Workforce Solutions and is denied TANF because child support payments increased her
income beyond TANF eligibility limits - to allow time for the customer to complete
assigned activities.
To continue receiving financial aid for child care after the end of the transitional period – the
customer must be employed and/or in education/training for at least 25 hours per week (50
hours for two-parent families) and meet income requirements. The customer must pay a parent
fee and will be subject to any wait list.
Determine eligibility for transitional child care:



Benefit Denial Date – Look in the customer’s TWIST record, in the TANF History for the
TANF Ineligibility Date. This date is the last date the customer received benefits.
Benefit Denial Reason - Look in the customer’s TWIST record to make sure there’s no
open penalty on the customer’s record. Talk with the customer to find out if her benefits
were denied for a reason that meets the eligibility criteria: increased earnings, expired State
time limits, or because child support payments cause total income to exceed TANF
eligibility limits. There’s no need to require additional documentation of the denial reason.
Don’t rely on TIERS to document the benefit denial reason.
Need for Child Care Financial Aid – Ask the customer to provide documentation showing
he or she is working and/or attending school the minimum required number of hours.
Managing Financial Aid – Child Care Standards and Guidelines —Page 15
February 20, 2015
Eligibility begins the first month the customer is ineligible for TANF. This applies regardless
of when the customer requests financial aid for child care. During the transitional eligibility
period the customer must not be added to a wait list.
Example 1: Customer is a former TANF recipient who was denied due to increased
earnings (i.e. employed)
On 4/16/2012 - Mary Smith requested financial aid for child care. She is a single parent of two
young children. Her TANF benefits were denied on 1/31/2012 after she got a job. She provides
documentation – showing she is working 25 hours or more a week. Staff check her TWIST
record and verifies her benefit denial date (TANF ineligibility date) – and that there are no
active/open penalties on her record. She is eligible for financial aid for transitional child care
for up to 12 months from her denial date. Staff determines her eligible for financial aid for 11
months (4/16/2012 – 3/16/2013).
Example 2: Customer is a former TANF recipient who was denied TANF benefits
because his benefit time limit expired.
On 5/14/2012 - John Jones requests financial aid for child care. He is the single parent of a
young child. His TANF benefits expired on 2/01/2012. He provides documents to show he is
working more than 25 hours a week. He is eligible for financial aid for transitional child care
for up to 12 months from the effective date of TANF denial. Staff check his record in TWIST
and verify he exhausted his benefit time limits and no longer qualifies for TANF benefits. The
12 month eligibility period ends 8/1/2013. Staff determine him eligible for financial aid for the
balance of his eligibility time frame - (5/14/2012 – 8/1/2013).
Example 3: Customer is a former TANF recipient who was denied TANF benefits
because her child support payments increased her income beyond TANF eligibility limits.
On 6/4/2012 – Marie Schmidt requests financial aid for child care. She is the single parent of a
young child. Marie tells us her TANF benefits were denied on 5/31/2012 because she receives
child support payments which increased her household income beyond the eligibility limits for
TANF. She is currently attending a training program and cooperating with Workforce
Solutions. She is eligible for financial aid for transitional child care for up to 8 weeks from the
effective date of TANF denial – to allow her time to complete her training. Staff checks her
record in TWIST and verify her benefit denial date (TANF ineligibility date). Staff determine
her eligible for transitional child care financial aid for 8 weeks (6/4/2012 – 7/28/2012).
12. Changes to Customer Status
We require customers to report to us when there is a change in circumstances that effect
eligibility for Financial Aid for Child Care. Circumstances may include
 Change in family income (child support, wage or salary increase or decrease)
 Change in number of persons in the family
Managing Financial Aid – Child Care Standards and Guidelines —Page 16
February 20, 2015


Change in employment
Change in education or training (increase or decrease in number of training hours)
Changes to customer status do not require customers to submit a complete financial aid
application.
When a customer reports a change in circumstances, we must review the information to
determine if the change affects the customer’s eligibility or Parent Share of Cost.
 Following review of a customer’s new information, staff will update any elements that
change on the Intake Common screen in TWIST
 If the new information results in a loss of eligibility (e.g., family income rises above the
eligibility threshold, hours fall below the minimum, or other factors), staff will use the
existing process for denying or discontinuing financial aid (WS 13-13)
 If the new information results in the addition of a family member who needs child care or a
change in the Parent Share of Cost, staff will:
o Close the current referral(s) and Program Detail
o Open a new Program Detail using the Eligibility End Date from the most recent
determination of eligibility
o Record referral information
o Notify the customer and the vendor of the change in Parent Share of Cost
 For any change of information, staff will summarize actions in a TWIST Counselor Note
We may conduct a full redetermination of eligibility if the customer reports a change resulting
in a new Program Detail within three months or less of the Eligibility End Date.
13. Eligibility Start and End Dates
The eligibility period for Financial Aid for Child Care is eleven months plus the additional
days necessary to end eligibility on the last day of the month. I
New Customer
The end date of every new customer’s eligibility period for receipt of child care financial aid
will be the last day of the last month of eligibility. For example, a customer is eligible to begin
receiving child care financial aid on August 15, 2013. Her end date will be July 31, 2014.
Redetermination of Eligibility
When a current customer’s recertification date occurs mid-month we will extend the current
eligibility to the end of the month. New periods of eligibility will begin the first date of the
month following the end of the eleven month eligibility period.
 Modify the eligibility end date of the program detail and the existing referral through the
end of the month fee.
 Send a new form 2450 informing the vendor of the extension.
 The new eligibility and referral date will be on the first day of the next month and end 11
months later on the last day of the month. For example, a new eligibility and referral date
of August 1, 2013 will end on June 30, 2014.
14. Transferring Vendors
Managing Financial Aid – Child Care Standards and Guidelines —Page 17
February 20, 2015
When a customer requests a transfer to another provider we will accommodate the request.
When transferring a child from one vendor to another, the parent share of cost for the month
may be split between the previous vendor and the new vendor. FAPO staff process transfers
and may assume the TWIST information related to the parent share of cost is correct unless the
vendor or the customer asks us to review the information. When we receive such a request, the
staff will review the data in TWIST and, if appropriate, manually adjust the parent share of cost
to the correct amount for the month. Staff will record these actions in counselor notes.
15. Vendor Placed on Corrective or Adverse Action
H-GAC receives weekly notification from the Texas Workforce Commission (TWC) if a child
care vendor has been placed on corrective or adverse action by the Texas Department of Family
and Protective Services (DFPS). Corrective Action includes Evaluation Status and Probationary
Status. H-GAC forwards that information to the Financial Aid Payment Office (FAPO) and to
Collaborative for Children.
The Vendor Corrective and Adverse Action Desk Aid provides detailed guidance for staff
regarding the actions to be taken when a child care vendor is placed on corrective or adverse
action by DFPS. You can find this Desk Aid at this link under Workforce Solutions Financial
Aid: http://www.wrksolutions.com/staff-resources/performance-improvement/desk-aids.
There are specific letters for notifying parents when a vendor is on corrective or adverse action.
You can find these Parent Notification letters at this link under Letters and Forms:
http://www.wrksolutions.com/staff-resources/services-we-offer/financial-aidservices#Issuances-Letters. The letters are available in English and Spanish
We revised the Reason to Deny chart to include reasons related to this guidance. You can find
the Reason to Deny chart at this link: http://www.wrksolutions.com/staff-resources/serviceswe-offer/financial-aid-services#Issuances-Letters.
Managing Financial Aid – Child Care Standards and Guidelines —Page 18
February 20, 2015