Tribal Child Care And Development Fund: Guide for New Administrators
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Financial Management31
Effective and efficient financial management systems are an essential part of successful CCDF program operations. A financial management system is both a set of accounting records and the policies and procedures used to maintain those records accurately and in a timely fashion.
The following list describes general financial principles for administering federally funded tribal programs:
- Contract and compliance requirements are fulfilled.
- Grant and contract funds are expended appropriately according to the intent of applicable statutes.
- Tribal laws and procedures are followed.
- Accounting records are maintained.
- Assets are safeguarded.
- Internal policies and procedures are developed and implemented and include a cost allocation plan.
- Internal control systems are adequate.
- Annual audit is conducted.
“The link between the budget and the program it supports must be strong and convey the program’s philosophy, as well as its future direction”32
Budget development is a key factor to successful program operations and acts as the road map that guides the program throughout the year. The connection between the budget and program activities requires an intentional effort between the program and fiscal departments to work collaboratively to ensure that program activities are carried out within the framework of available financial resources. Successfully putting a budget in motion requires that programs develop and follow processes for informing and educating staff on resource allocations and cost constraints; routinely reviewing spending and sharing budget issues and concerns with accounting staff; and engaging staff in budget monitoring and cost containment efforts.
Administrative Costs33
Tribal CCDF, and many other Federal grant programs, limit the amount of administrative costs that can be charged. Administrative costs include the organization–wide management functions of accounting, budgeting, coordination, direction, and planning, as well as the management of payroll, personnel, property, and purchasing. Such costs can be for either for personnel or non-personnel functions.34 Of the total expenditures of CCDF Mandatory and Discretionary funds, no more than 15% can be used for administrative costs. The 15% cap applies to cumulative expenditures over the 3-year grant liquidation period. The base amount (described on page 5) is not subject to the administrative cap and is excluded from the calculation.
Non-Direct Services35
The non-direct service category is generally defined as the costs that do not fit into the administrative, construction, quality, or direct services cost categories. The following activities, including many components of establishing and operating a certificate program, may be considered non-direct costs:
- Eligibility determination and re-determination;
- Establishment and maintenance of computerized child care information systems;
- Preparation and participation in judicial hearings;
- Child care placement;
- Recruitment, licensing, inspection, reviews, and supervision of child care placements;
- Rate setting;
- Resource and Referral services (may also be a quality activity); and
- Training of child care staff (providers of direct service).
Quality Activities36
The CCDF regulations require non-exempt Tribes (those Tribes receiving $500,000 or more) to spend not less than four percent on quality activities. These activities may include, but are not limited to activities designed to provide comprehensive consumer education, increase parental choice, and improve the quality and availability of child care services. Like administrative costs, the quality expenditures are cumulative over the 3-year grant liquidation period and the 4% minimum for quality applies to total funds expended, rather than to the funds that are available but not used. Exempt grantees (those Tribes receiving less than $500,000) are strongly encouraged to spend CCDF funds on quality activities but they are not required to meet this provision.
Tribal CCDF quality expenditures can be used to embrace the vision of the Tribe to grow and nurture young children and support their families though the delivery of comprehensive child care services. When quality funds are used to provide training and professional development for child care providers to enhance their knowledge and skills, or to assist providers in meeting health and safety standards, the result is improved care for the children. Similarly, using quality funds to improve provider compensation helps to build a reliable and stable workforce, which helps to improve program quality.
Tribal CCDF programs are using quality funds to support cultural heritage, tribal traditions, and native language acquisition within the early childhood setting. Parents and families are their children’s first and most important teachers. CCDF quality funds may be used in ways that support healthy parenting, and establishing meaningful and on-going opportunities to involve families in policy decisions and program activities.37
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31 Tribal TANF and CCDF Guide to Financial Management, Grants Administration, and Program Accountability, available from TriTAC. http://www.acf.hhs.gov/programs/ccb/ta/pubs/tanf-guide/fmgapa1.htm 
Back to Text
32 “Tribal CCDF Guide to Financial Management, Grants Administration, and Program Accountability” resource notebook, available from TriTAC. Back to Text
33 Final Rule: Administrative Costs: 98.83. Back to Text
34 Tribal TANF and CCDF Guide to Financial Management, Grants Administration, and Program Accountability, available from TriTAC. http://www.acf.hhs.gov/programs/ccb/ta/pubs/tanf-guide/fmgapa1.htm Back to Text
35 Final Rule: Non-direct services: Preamble 98.52. Back to Text
36 Final Rule: Activities to improve the quality of child care: 98.51. Back to Text
37 A list of sample quality activities is provided in Appendix D. Back to Text