Phase 3 Funding Guideline - September 1 to December 31, 2020 Peel Region Licensed Home Child Care Agencies

 
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Phase 3 Funding Guideline
    September 1 to December 31, 2020

              Peel Region
 Licensed Home Child Care Agencies

         Early Years and Child Care Services
Revised Version Released: November 18, 2020
TABLE OF CONTENTS

OVERVIEW ............................................................................................................................... 2
ELIGIBILITY CRITERIA ............................................................................................................. 2
SAFE RESTART FUNDING (SRF) ALLOCATION ..................................................................... 3
   Personal Protective Equipment (PPE) & Enhanced Cleaning Expenses................................. 4

   Child Absenteeism.................................................................................................................. 4

   Support for Fixed Operating Expenses associated with Vacancies......................................... 5

EYCC PHASE 3 FUNDING / ADMINISTRATIVE FUNDING ...................................................... 5
MANDATED CLOSURES OR SELF-ISOLATION DUE TO COVID-19 ....................................... 7
FUNDING TO SUPPORT STAFF WAGES AND PROVIDER PAYMENTS ................................ 7
REPORTING REQUIREMENTS ................................................................................................ 9
RECONCILIATION & REPORTING REQUIREMENTS .............................................................10
CONTACT US...........................................................................................................................10
APPENDIX: Sample Communication to Staff on CEWS/EYCC Funding ...................................10

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OVERVIEW
To support the viability of the licensed child care sector through the impacts from COVID-19, the
Region has provided Licensed Home Child Care (LHCC) Agencies with the following funding to
support eligible expenses and meet enhanced health and safety requirements:
   •   Personal Protective Equipment (PPE) Notional Allocation
   •   Early Years and Child Care (EYCC) Phase 3 Funding
   •   Federal Safe Restart Funding (SRF)

This funding provided to Agencies is in addition to the Base Funding and Wage Enhancement
Grant/Home Child Care Enhancement Grant (WEG/HCCEG) which LHCC Agencies continued
to receive during the pandemic.

                  Funding                                      Coverage Period
PPE Allocation                                  March 2020 to December 31, 2020
EYCC Phase 3 Funding
                                                September 1, 2020 to December 31, 2020
EYCC Phase 3 Administrative Funding
Federal Safe Restart Funding (SRF)              September 1, 2020 to March 31, 2021

Funding should be utilized as follows:
    • Agencies should first utilize their PPE allocation provided in August 2020 to support
      eligible PPE and enhanced cleaning expenses before using the SRF or EYCC Phase 3
      Funding. This PPE allocation time frame is extended to be spent by December 31, 2020.

   •   Agencies should first utilize their EYCC Phase 3 Funding, including the administrative
       funding, by December 31, 2020 before utilizing the SRF which has been extended to
       March 31, 2021.

This Guideline has been updated to reflect feedback from the child care sector and revised
funding direction from the Ministry and includes changes related to: funding for child
absenteeism and support for fixed operating costs associated with vacancies.

LHCC Agencies must continue to follow the enhanced health and safety requirements as set out
by the Ministry of Education’s revised Operational Guidance During COVID-19 Outbreak: Child
Care Re-Opening document and Peel Public Health’s revised Enhanced Health and Safety
Protocols for Licensed Home Child Care Agencies.

ELIGIBILITY CRITERIA
To be eligible to receive SRF and Phase 3 EYCC Funding LHCC Agencies are required to:

1. Be a licensed child care agency in Peel Region with a signed 2020 EYCCS Fee Subsidy
   and Funding Agreement with the Region of Peel by September 1, 2020.

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Note: The Region strongly encourages that Agencies do not charge parent fees higher
   than the amount charged pre-COVID (March 2020). Increases to parent fees will impact the
   funding supports an Agency receives during Phase 3. Agencies who have increased parent
   fees after March 2020 and do not wish to see a reduction in their EYCC Phase 3 Funding
   allocation, are required to:
      a.   Revert their parent fees to pre-COVID levels;
      b.   Issue a credit to parents for the difference already paid within 30 days;
      c.   Issue a notice to parents about the policy change; and
      d.   Submit copy of the parent notice to their Early Years Specialist.

   Note: Due to these Phase 3 funding supports (SRF & EYCC), the Region is requesting that
   Agencies maintain parent fees at pre-COVID levels until December 31, 2020 to align with
   the Phase 3 Funding time period.

2. Complete any surveys/reporting templates by the timeline identified, as requested by the
   Region during Phase 3.

   Note: Agencies must complete the Region’s mandatory “Collection of Parent Fees during
   Phase 3 Survey” by Friday September 25, 2020 in order to receive the SRF and the
   additional EYCC funding. Failure to complete the survey will delay receipt of payment.

3. Meet the Region’s Authentic Participation requirements:
     a. Inclusion of children in receipt of fee subsidy
     b. Continuous quality enhancement
     c. Inclusion of children with special needs by participating in Peel Inclusion Resource
         Services

4. Be in good standing with financial/contract reporting requirements for all funding provided.

5. Be open and providing services to children and families during Phase 3.

Note: The Region can revise eligibility of funding during Phase 3 on a case-by-case basis.

SAFE RESTART FUNDING (SRF) ALLOCATION
Federal Safe Restart Funding (SRF) has been extended to March 31, 2021 to help the
licensed child care sector adapt to the challenges of operating in a COVID-19 environment.

Eligible expenses for SRF should be prioritized as follows:
   1. Personal Protective Equipment (PPE) & enhanced cleaning expenses
   2. Supports for “child absenteeism” for children required to isolate from child care for the
       following reasons:
               o Waiting for COVID-19 test results which return negative and/or
               o Failing to pass screening protocols conducted by the provider and/or
                   conducted by the parent/guardian
   3. Supports for fixed operating expenses associated with vacancies

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Personal Protective Equipment (PPE) & Enhanced Cleaning Expenses
SRF can be used to support the PPE expenses and cleaning and sanitation supplies required to
meet the Region’s enhanced health and safety protocols. Eligible items are as follows:

                       Eligible Items                          Maximum Cost Supported by
                                                                    SRF Allocation
Contact-Free Thermometer                                                $110
Hand Sanitizer
Alcohol Swabs
Disinfectant Wipes                                                           N/A
Disposable Gowns
Face Shields
Gloves
Surgical/Procedure Masks (i.e. medical mask)
Other eye protection (goggles, wrap around safety glasses)
Other cleaning supplies (e.g. bleach, paper towels, soap)

Agencies must use their pre-approved SRF amount to purchase eligible items for use in the
areas of the home where children access and not for other areas of the home or Agency
head office.

Note: The Ministry committed to providing monthly PPE supplies to Agencies. LHCC Agencies
should contact the Ministry (childcare_ontario@Ontario.ca) if their PPE supply of face shields
and masks is insufficient. SRF may be used to purchase a back-up supply of these items if
required.

Child Absenteeism
Between November 1, 2020 to December 31, 2020, Agencies should use their EYCC Phase 3
Funding and SRF to support child absenteeism of up to 5 days, as a result of required isolation
due to illness if the child:
   •   Is awaiting COVID-19 test results which return negative
        o Note: siblings are required to stay home and are eligible for child absenteeism
            coverage.
   •   Fails to pass screening protocols conducted by the provider and/or conducted by the
       parent/guardian
        o Note: siblings are eligible for absenteeism coverage only where Peel Public Health
            has directed the isolation of the household.

Where a child’s absence is directed by Peel Public Health due to a positive case of COVID-
19, please see Section “Mandated Closure or Self-Isolation due to COVID-19” in this
Guideline for information about additional funding through the Region’s application process.

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LHCC Agencies must reimburse families for all fees paid for eligible absent days up to 5 days. In
turn Agencies can use their Phase 3 Funding to support their operations associated with eligible
absent days based on their approved municipal rates.

Note: The Region will provide a Parent Communication Memo for LHCC Agencies to notify
families of funding support for child absenteeism and issue updated Web Attendance
instructions to Agencies.

Support for Fixed Operating Expenses associated with Vacancies
•   LHCC Agencies may use their SRF allocation to support the following eligible fixed
    operating expenses associated with vacancies experienced during Phase 3 (September 1
    to December 31, 2020).
      o   Lease/rental costs (portion not supported through other initiatives/discounts)
      o   Utilities
      o   Telephone, internet
      o   Insurance
      o   Program supplies (consumable and non-consumable materials such as paint,
          markers, pens)
      o   Existing health and dental benefits (in place prior to March)

•   The proportion of fixed operating expenses that can be supported should be equivalent to
    the Agency’s vacancy.

•   Agencies who experience a significant decline in operating capacity during Phase 3
    compared to pre-COVID-19 levels (average over January-March 2020) can use this funding
    to offset a maximum of up to 75 percent of the eligible fixed operating expenses.

•   Agencies who do not experience a significant decline in operating capacity (compared to
    pre-COVID-19 levels) are required to prioritize their Phase 3 Funding to support other
    expenses such as PPE/enhanced cleaning and child absenteeism.

•   The SRF is not intended to cover lost parent revenue (per diem rates) associated with the
    vacancy and should not contribute to profit/retained earnings, but rather the Agency’s
    operating expenses associated with the vacancy.

EYCC PHASE 3 FUNDING / ADMINISTRATIVE FUNDING

LHCC Agencies received an EYCC Phase 3 Funding allocation and administrative funding (see
Regional memo dated September 29, 2020), which may be used to support any of the following
additional expenditures incurred in Phase 3 (September 1 to December 31, 2020). Exception:
costs related to audited financial statements can be claimed for any point in the year.

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NOTE: Agencies should first utilize this EYCC Phase 3 Funding, which must be spent by
December 31, 2020 before their Safe Restart Funding (SRF) which has been extended to
March 31, 2021.

The EYCC Phase 3 Funding expenses should be prioritized as follows:

Priority 1:
 • All eligible expenses listed under the Safe Restart Funding (SRF) section of this Guideline
     in the following order of priorities:
      a) Personal Protective Equipment (PPE) and enhanced cleaning expenses
      b) Supports for “child absenteeism” for children required to isolate from child
         care for the following reasons:
             o Waiting for COVID-19 test results which return negative and/or
             o Failing to pass screening protocols conducted by the provider and/or
                conducted by the parent/guardian
             Note: refer to “Child Absenteeism” section of this Guideline for more information.
      c) Supports for fixed operating expenses associated with vacancies (Note: refer to
         the “Support for Fixed Operating Expenses associated with Vacancies” section of this
         Guideline for more information).
 •   Costs related to the completion of audited financial statements incurred from January 1,
     2020 to December 31, 2020.
Priority 2:
 • Inflationary costs specifically related to salaries and mandatory benefits for program staff
     (the Region will provide a tool to help calculate inflationary costs).
 • Advertising, marketing, social media costs to build enrolment.
 • Administrative costs associated with reporting requirements up to a maximum of the pre-
     approved administrative allocation in your Regional memo (dated September 29, 2020).

EYCC Phase 3 Administrative Funding
LHCC Agencies received a pre-approved administrative allocation to support reporting
requirements during Phase 3 (see Regional memo dated September 29, 2020). LHCC Agencies
may use their administrative funding to support the following eligible administrative expenses
(for business purposes) incurred from September 1, 2020 to December 31, 2020:
 •   Bookkeeping and Accounting
 •   Office and general costs
 •   Interest fees
 •   Bank charges
 •   Legal fees
 •   Management fees
 •   Professional and consulting fees

The Region may request copies of invoices/documentation to support claims for this.

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MANDATED CLOSURES OR SELF-ISOLATION DUE TO COVID-19
The Region will provide funding to offset parent fees in situations where Peel Public Health
has directed the closure of a home OR self-isolation period due to a positive COVID-19
case. This may also include:
   • child who attends before/after school care to self-isolate due to a classroom closure;
   • families to self-isolate based on a confirmed positive case of COVID-19 within their
       household.

In these situations, Agencies must apply to the Region as soon as possible via email to
EarlyYearsSystemDivision@peelregion.ca with the subject line “COVID-19 Exposure – Name
of Agency”. The Region of Peel will work with Agencies to complete the reimbursement
template. Agencies will be required to demonstrate how this funding was used as part of the
Region’s Reporting and Reconciliation process.

Agencies who apply to the Region will be reimbursed based on approved municipal rates for fee
subsidy families and full fee-paying families if they do not charge parents during the
closure/isolation period as directed by Peel Public Health and issue a credit to families affected
within a 30-day period. The Region will provide its municipal rate for the period as directed by
Peel Public Health. The Agency must use this funding to offset their Agency fee and issue
regular payment to home child care providers.

Note: This funding is available until December 31, 2020 and is separate from the Agency’s
SRF and EYCC Phase 3 Funding allocations.

FUNDING TO SUPPORT STAFF WAGES AND PROVIDER PAYMENTS
Effective September 1, 2020, the Ministry of Education has announced that all early years and
child care programs will return to normal operations pre-COVID with enhanced health and
safety requirements.

LHCC Agencies will continue to receive their regular monthly Base Funding and Wage
Enhancement Grant (WEG) to support staff wages from September 1 to December 31, 2020.

However, Agencies are expected to continue to maximize the Canada Emergency Wage
Subsidy (CEWS) to support staff wages.
    • The Government of Canada has announced extending the CEWS until June 2021.
   • Beginning July 5, the amount of CEWS subsidy provided will be structured on a sliding
      scale and will depend on how much the Agency’s revenue dropped.
   • For details on the CEWS program, please visit the Government of Canada website.

Agencies that are eligible for the CEWS program must report gross wages paid to staff including
Base Funding and WEG to maximize their CEWS benefit. These Agencies should continue to

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issue only the portion of WEG and Base Funding not covered by CEWS to eligible staff
working/on payroll.

Agencies not eligible for CEWS can use their Base Funding and WEG funding to support 100%
of the staff wage enhancements and associated mandatory benefits to eligible staff who are
working/on payroll. Agencies will be required to submit an Attestation confirming why they were
not eligible for the CEWS program (see Reporting Requirements section of this Guideline).

Note: The Region requires that LHCC Agencies notify staff of the portion of their EYCCS
Funding (Base Funding and WEG) entitlements paid through the CEWS program. Agencies can
communicate this information to staff by taking one of the following approaches:
    a) Provide notations on each of the staffs pay cheque to indicate what portion of their wage
        enhancement are paid through the CEWS/Base Funding/WEG funds;
                                                  OR
    b) Communicate written notice to staff (i.e. letter or email) by December 31, 2020 to notify
        staff of the portion of their wage enhancements supported through the CEWS/Base
        Funding/WEG funds. Please refer to the Appendix for a Sample Staff Notice
        regarding staff wages that your Agency may adapt to inform your staff. The Region
        reserves the right to request a copy of your letter at Reconciliation.

IMPORTANT: Agencies are required to follow all other requirements as per the 2020 Base
Funding Guidelines and 2020 WEG/HCCEG Guideline including:

   •   Definition for active homes: Effective September 1, 2020, the Province has confirmed
       that the definition for “active homes” used to qualify for WEG/HCCEG reverted to the
       pre-COVID definition of: “provide services to one child or more (including privately
       placed children; excluding the provider’s own children)” according to the 2020
       WEG/HCCEG Guidelines.

   •   Base Funding payments: Effective September 1, 2020, Agencies should follow their
       regular calculations for distributing payments to providers, according to the 2020 Base
       Funding Guideline. Starting September 1, home child care providers must be caring for
       children in order to receive Base Funding.
           o Agencies experiencing a decrease in the number of providers working/caring for
               children should pro-rate their Base Funding provider payment allocation based
               on the number of providers working/caring for children. Agencies should not
               distribute their full Base Funding allocation over the reduced number of providers
               working or issue payments based on pre-COVID payments (e.g. February 2020).

The Region recognizes that Agencies may have excess funding as a result of underspending
and will recover this as part of the Region’s reconciliation process.

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Supports for Staff Absenteeism due to COVID-19
SRF and EYCC Phase 3 Funding is not available to cover staff absenteeism due to COVID-19.
If staff are sick and unable to work due to COVID-19, LHCC Agencies may either:
   •   Pay their staff their regular earnings and claim the portion through CEWS; OR
   •   Direct employees to apply to new federal programs to support employees during the
       pandemic, such as the Canada Recovery Sickness Benefit (CRSB) and Canada
       Recovery Caregiver Benefit (CRCB).
Please visit the Government of Canada’s website for information.

REPORTING REQUIREMENTS
Agencies who do not comply with the eligibility requirements or fail to use any Regional funding
in compliance with this Guideline may be required to repay all/or part of funding received.
Agencies must retain documentation to demonstrate that funds provided were used to support
eligible costs/operating expenses during the reopening period and must retain them for 7 years.
Funding not used for its intended purpose will be recovered by the Region.

The Region may conduct check-ins at any time to assess Agency’s actual and projected
expenditures; and may request the following:
 • Expenditure amounts for each eligible expense category:
          o Personal Protective Equipment (PPE);
          o Enhanced cleaning and sanitation;
          o Support for short-term vacancies;
          o Child absenteeism
          o Additional funding expenditures as per this Guideline.
 • Record and proof of payments to staff and home child care providers. This may include
    copies of staff payroll registers, T4s, bank statements, cancelled cheques, staffing
    schedules, timesheets including number of hours worked. Agencies may be required to
    submit electronic payroll/payment records with redacted personal information (i.e. SIN, last
    names) to ensure Base Funding/WEG/HCCEG payments were issued to staff/providers.
 • An Attestation confirming eligibility/reason why the Agency was not eligible for the CEWS
    program and/or copies of CEWS application/approval, including amounts.
 • Copies of lease agreement and/or any amendments.
 • Receipts, invoices, quotations, proof of purchase and any other documentation needed to
    assess expenditure use, as requested by the Region.
 • Revenue generated during Phase 3 (e.g. parent fees, funding from federal or provincial
    support programs).
 • Enrolment data/attendance records.
 • Other supporting documentation, as requested by the Region.

Funding must be used to support home child care sites in Peel only. Funds cannot be used to
generate a revenue or contribute (directly or indirectly) to Agency reserves, surplus, profit,
and/or retained earnings

NOTE: The Region will require LHCC Agencies to submit an attestation to declare that
expenses supported through the EYCC Phase 3 Funding/SRF have not been previously

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covered through other EYCC funding streams (e.g. Base Funding) and other government
funding. The Region may conduct random audits of Agency’s use of funds at any time.

RECONCILIATION & REPORTING REQUIREMENTS
The Region will release a reconciliation/reporting template outlining the information/data
required to inform final Phase 3 EYCC/SRF allocations to Agencies and may request additional
reporting requirements as required by the Ministry of Education.

CONTACT US
Please email EarlyYearsSystemDivision@peelregion.ca for any questions.

APPENDIX: Sample Communication to Staff on CEWS/EYCC Funding

[Date]
Staff Notice: Staff Wage Enhancement Supported though CEWS & EYCC Funding
Dear Staff,
This notice is to inform staff who returned to work of how their staff wage enhancements (Base
Funding and Wage Enhancement Grant) and associated benefits were supported during Phase
3 (i.e. September 1 to December 31, 2020).
As the Government of Canada extended the Canada Emergency Wage Subsidy (CEWS)
program, staff wages continued to be supported through a combination of CEWS,
Provincial/Regional Early Years and Child Care (EYCC) funding and parent revenues.
During this period, wages associated with EYCC funding (i.e. Base Funding and WEG)
entitlements were supported as follows:

     Month              CEWS (%)            EYCC Funding                     Total (%)
                                         WEG/Base Funding (%)
June                        75                   25                              100
July
August
September
October
November
December

Should you have any questions, please reach out to [Accounting Staff Contact].
Sincerely,
[Name of Agency]

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