+--------------------+------------------------+-----------------------+
| ACF                | **U.S. DEPARTMENT OF   |                       |
|                    | HEALTH AND HUMAN       |                       |
|                    | SERVICES**             |                       |
|                    |                        |                       |
|                    | **Administration on    |                       |
|                    | Children, Youth and    |                       |
|                    | Families**             |                       |
+--------------------+------------------------+-----------------------+
| **Administration** | **1. Log No.**         | **2. Issuance Date:** |
|                    | ACYF-PI-CC-05-06       | July 22, 2005         |
+--------------------+------------------------+-----------------------+
| **For Children**   | **3. Originating       |                       |
|                    | Office:** Child Care   |                       |
|                    | Bureau                 |                       |
+--------------------+------------------------+-----------------------+
| **And Families**   | **4. Ke 4. Key         |                       |
|                    | Words:** Child Care    |                       |
|                    | and Development Fund;  |                       |
|                    | Temporary Assistance   |                       |
|                    | for Needy Families     |                       |
|                    | (TANF); High           |                       |
|                    | Performance Bonus      |                       |
|                    | (HPB)                  |                       |
+--------------------+------------------------+-----------------------+
|                    | **TANF High            |                       |
|                    | Performance Bonus      |                       |
|                    | Awards-Child Care      |                       |
|                    | Measure**              |                       |
+--------------------+------------------------+-----------------------+

+--------------------+-------------------------------------------------+
| **To:**            | State Lead Agencies administering child care    |
|                    | programs under the Child Care and Development   |
|                    | Block Grant (CCDBG) Act of 1990, as amended,    |
|                    | and other interested parties.                   |
+--------------------+-------------------------------------------------+
|                    |                                                 |
+--------------------+-------------------------------------------------+
| **References:**    | High Performance Bonus (HPB) awards, section    |
|                    | 403(a)(4) of the Social Security Act (42 U.S.C. |
|                    | 603); HPB final rule and interim final rule, 45 |
|                    | CFR 270.4(e) (65 [FR]{.underline} 52814 and 66  |
|                    | [FR]{.underline} 23854). Temporary Assistance   |
|                    | for Needy Families (TANF) final rule.           |
|                    |                                                 |
|                    | The Child Care and Development Block Grant Act  |
|                    | of 1990 as amended (CCDBG Act); section 418 of  |
|                    | the Social Security Act; 45 CFR 98 and 99.      |
+--------------------+-------------------------------------------------+
|                    |                                                 |
+--------------------+-------------------------------------------------+
| **Purpose:**       | To provide guidance about the submission of     |
|                    | child care market rate information by States    |
|                    | choosing to compete for the Fiscal Year (FY)    |
|                    | 2005 TANF HPB Child Care Award.                 |
+--------------------+-------------------------------------------------+
|                    |                                                 |
+--------------------+-------------------------------------------------+
| **Background:**    | The August 30, 2000 final rule for HPB awards   |
|                    | under TANF provided that \$10 million will be   |
|                    | allocated annually for bonus awards under a     |
|                    | child care measure. As described in the         |
|                    |                                                 |
|                    | August 30, 2000 final rule, and the May 10,     |
|                    | 2001 interim final rule, the measure includes   |
|                    | three components:                               |
|                    |                                                 |
|                    | 1.  Children Served (Accessibility)---Percent   |
|                    |     of children eligible under Child Care and   |
|                    |     Development Fund (CCDF) requirements, who   |
|                    |     received services, including eligible       |
|                    |     children served with additional funds as    |
|                    |     reported on the Administration for Children |
|                    |     and Families (ACF), ACF-801.                |
|                    |                                                 |
|                    | 2.  Family Co-Payments (Affordability)---A      |
|                    |     comparison of assessed family co-payment to |
|                    |     family income across four income ranges as  |
|                    |     reported on the ACF-801. The income ranges  |
|                    |     are as follows: 1) income below the Federal |
|                    |     poverty level; 2) income at least 100       |
|                    |     percent and below 125 percent of Federal    |
|                    |     poverty; 3) income at least 125 percent and |
|                    |     below 150 percent of Federal poverty;       |
|                    |     and 4) income at least 150 percent and      |
|                    |     below 175 percent of Federal poverty. This  |
|                    |     component also takes into account the       |
|                    |     number of children eligible for subsidies   |
|                    |     under the State's defined income limits     |
|                    |     compared to the number of children eligible |
|                    |     under the Federal CCDF eligibility limits.  |
|                    |                                                 |
|                    | 3.  Provider Reimbursement Rates (Quality)---A  |
|                    |     comparison of the actual amounts paid for   |
|                    |     children receiving subsidies to local       |
|                    |     market rates in the State.                  |
+--------------------+-------------------------------------------------+
|                    |                                                 |
+--------------------+-------------------------------------------------+
| **Computation of   | Bonuses will be awarded based on these three    |
| State Scores:**    | components to the top ten qualifying States     |
|                    | that have fully:                                |
|                    |                                                 |
|                    | -   Obligated their CCDF Matching Funds for the |
|                    |     fiscal year corresponding to the            |
|                    |     performance year; and                       |
|                    |                                                 |
|                    | -   Expended their CCDF Matching Funds for the  |
|                    |     fiscal year preceding the performance year. |
|                    |                                                 |
|                    | Child care bonuses in FY 2005 for a State's     |
|                    | performance in FY 2004 will be based on a       |
|                    | composite ranking of State scores on three      |
|                    | components, i.e., children served, family       |
|                    | co-payments and provider reimbursements.        |
|                    | Children served and family co-payments will be  |
|                    | calculated using case-level data currently      |
|                    | reported by States on the ACF-801. Provider     |
|                    | reimbursement rates will be calculated based on |
|                    | data reported by States on the ACF-801 and the  |
|                    | ACF-900. Specifically, ACF will compare the     |
|                    | actual payment for each child (as provided on   |
|                    | the ACF-801) to the reported market rates for   |
|                    | children of the same age, in the relevant       |
|                    | county or administrative region and for the     |
|                    | type of care received (as provided on the       |
|                    | ACF-900). We will compare payments for children |
|                    | in center-based care to reported center care    |
|                    | rates and payments for children in              |
|                    | non-center-based care, i.e., family child care  |
|                    | and in-home care, to reported family child care |
|                    | and in-home care provider rates.                |
+--------------------+-------------------------------------------------+
|                    |                                                 |
+--------------------+-------------------------------------------------+
| **Instructions:**  | By August 5, 2005, a State choosing to compete  |
|                    | for the FY 2005 HPB Child Care Award must       |
|                    | submit information from its market rate survey  |
|                    | applicable to the performance year (FY 2004)    |
|                    | using the ACF-900. The information submitted    |
|                    | must include age-specific rates for children    |
|                    | 0-13 years of age reported by centers and       |
|                    | family child care homes (non-Centers)           |
|                    | responding to the State's market rate survey.   |
|                    | The information must be provided by county or   |
|                    | administrative region -- defined as a           |
|                    | collection of counties.                         |
|                    |                                                 |
|                    | -   The ACF-900 provides four county or         |
|                    |     administrative region columns. A State      |
|                    |     should expand the form as needed to provide |
|                    |     as many county or administrative regions as |
|                    |     may be necessary to correspond to the       |
|                    |     State's rate structure. To enable ACF to    |
|                    |     compare the data reported on the ACF-801    |
|                    |     with the ACF-900, the State must provide,   |
|                    |     as an addendum, the Federal Information     |
|                    |     Processing Standard (FIPS) code or codes    |
|                    |     corresponding to each county or             |
|                    |     administrative region. Access to the three  |
|                    |     digit county codes is available at:         |
|                    |     <http://www.acf.dhhs.gov/programs/cc        |
|                    | b/report/formhelp/acf801/helpdocs/context.htm>. |
|                    |                                                 |
|                    | ```{=html}                                      |
|                    | <!-- -->                                        |
|                    | ```                                             |
|                    | -   The ACF-900 should be completed using       |
|                    |     information from the market rate survey     |
|                    |     required by 45 CFR 98.43 (CCDF July 24      |
|                    |     Final Rule) and described in the State's    |
|                    |     approved CCDF Plan for October 1, 2003      |
|                    |     through September 30, 2005.                 |
|                    |                                                 |
|                    | -   Separately for child care centers and       |
|                    |     family child care homes (all child          |
|                    |     arrangements except centers), the State     |
|                    |     should complete the ACF-900 by providing    |
|                    |     **full-time** monthly rates at the 75^th^   |
|                    |     percentile in the age categories noted for  |
|                    |     each county or administrative region. A     |
|                    |     State may submit the same rate for one or   |
|                    |     more FIPS codes (group of FIPS codes),      |
|                    |     however, a State may not submit more than   |
|                    |     one rate for a FIPS code (and care type).   |
|                    |     All the county FIPS codes in the State      |
|                    |     should be represented on the ACF-900 form   |
|                    |     by a full-time rate in both of the          |
|                    |     indicated Care types. In some instances a   |
|                    |     State may have to use weighted averages to  |
|                    |     consolidate separate rates for "Star"       |
|                    |     quality systems, as well as consolidate     |
|                    |     separate rates for licensed and unlicensed  |
|                    |     care. Alternatively, a State could          |
|                    |     reprocess their market rate survey data to  |
|                    |     generate results that conform to the        |
|                    |     ACF-900 categories.                         |
|                    |                                                 |
|                    | -   Although school-age children often use      |
|                    |     part-time care, only market rate data       |
|                    |     representing **full-time** care should be   |
|                    |     entered on the ACF-900. Parenthetically,    |
|                    |     full-time care is used by many school-age   |
|                    |     children when school is not in session and  |
|                    |     when parents are employed during nights and |
|                    |     weekends (non-school hours).                |
|                    |                                                 |
|                    | ```{=html}                                      |
|                    | <!-- -->                                        |
|                    | ```                                             |
|                    | -   If the State's market rate survey does not  |
|                    |     collect information about provider fees on  |
|                    |     a monthly basis, daily fees should be       |
|                    |     converted to monthly fees using 22 as the   |
|                    |     multiplier, e.g., \$20.00 per day times 22  |
|                    |     equals a monthly rate of \$440.00. Market   |
|                    |     rate survey data for less than full-time    |
|                    |     care should not be used. The number of      |
|                    |     hours per day that represents full-time     |
|                    |     should be based on the State's definition   |
|                    |     of full-time care in its State Plan,        |
|                    |     licensing regulations or other documents.   |
|                    |     Typically, full-time care is 130 hours or   |
|                    |     more care per month. If the market rate     |
|                    |     survey collects only hourly rates, these    |
|                    |     hourly rates will have to be converted to a |
|                    |     full-time monthly rate using the above      |
|                    |     criteria.                                   |
|                    |                                                 |
|                    | If the State differentiates market rates in age |
|                    | categories that vary from those provided in the |
|                    | form, the State should provide the market rate  |
|                    | information applicable to the youngest age      |
|                    | grouping. For example, if the State collected   |
|                    | information about infant rates for children     |
|                    | ages 0 -- 18 months, use the applicable infant  |
|                    | rate in both the column labeled "Less than or   |
|                    | equal to 12 Months" and the column labeled      |
|                    | "Greater than 12 months and less than or equal  |
|                    | to 24 months." Enter a full-time rate in all    |
|                    | age categories (all rate columns).              |
|                    | Alternatively, a State could reprocess its      |
|                    | market rate survey data to generate results     |
|                    | that conform to the ACF-900 categories. Do not  |
|                    | leave any rate column blank.                    |
+--------------------+-------------------------------------------------+
|                    |                                                 |
+--------------------+-------------------------------------------------+
| **Additional       | States choosing to compete on the FY 2005 TANF  |
| Information:**     | HPB child care measure must **electronically**  |
|                    | submit the completed Microsoft **Excel**        |
|                    | ACF-900 no later than August 5, 2005, to: Child |
|                    | Care Automation Resource Center (CCARC) at      |
|                    | <ccarc@childcaredata.org>. Please remember to   |
|                    | include "ACF-900 form" in the subject line. Do  |
|                    | not submit a paper copy, a FAX copy, a Text     |
|                    | version or a word processing version.           |
|                    |                                                 |
|                    | An electronic version of the ACF-900 is         |
|                    | available through the Child Care Bureau at:     |
|                    | <http://w                                       |
|                    | ww.acf.dhhs.gov/programs/ccb/report/index.htm>. |
|                    |                                                 |
|                    | Be sure to download the Excel Version of the    |
|                    | form for completion and submission.             |
|                    |                                                 |
|                    | Additional information about market rate        |
|                    | surveys and establishing provider reimbursement |
|                    | rates is available at:                          |
|                    | <http:                                          |
|                    | //nccic.acf.hhs.gov/poptopics/mrsmethods.html>. |
+--------------------+-------------------------------------------------+

­­­­­­­­­­­­­­­­­­­­­­­­­­­­­[/s/]{.underline}\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Joan Ohl

Commissioner, ACYF

Instructions for Completing ACF-900 Child Care Report

For States wishing to compete for the Temporary Assistance for Needy
Families (TANF) High Performance Bonus (HPB) on the Child Care Measure,
the following information will be required:

1)  All age-specific rates for children 0 - 13 years of age reported by
    the child day care centers and family day care homes responding to
    the State's market rate survey; and

2)  The provider's county or, if the State uses multi-county regions to
    measure market rates or set maximum payment rates, the
    administrative region.

To enable the Administration for Children and Families (ACF) to compare
the data reported on the ACF-801 with the ACF-900, the State must
provide, as an addendum, the Federal Information Processing Standard
(FIPS) code or codes corresponding to each county or administrative
region. Access to the three digit county codes is available through the
Child Care Bureau at:
<http://www.acf.dhhs.gov/programs/ccb/report/formhelp/acf801/helpdocs/context.htm>
.

The ACF-900 should be completed using information from the market rate
survey required by 45 CFR 98.43 (Child Care and Development Fund (CCDF)
final rule) and described in the State's approved CCDF Plan for October
1, 2001 through September 30, 2003.

Separately for child care centers and family child care homes, the State
should complete the ACF-900 by providing full monthly rates at the
75^th^ percentile in the age categories noted for each county or
administrative region.

If the State's market rate survey does not collect information about
provider fees on a monthly basis, daily fees should be converted to
monthly fees using 22 as the multiplier, e.g., \$20.00 per day times 22
equals a monthly rate of \$440.00.

If the State differentiates market rates in age categories that vary
from those provided in the form, the State should provide the market
rate information applicable to the youngest age grouping. For example,
if the State collected information about infant rates for children ages
0 -- 18 months and for preschoolers using

19 -- 72 months, use the applicable infant rate in the row labeled 13 --
24 months.

Hard copy of the ACF-900 is for display purposes only. The data
submitted must be provided electronically, i.e., as a Microsoft Excel
file or equivalent.

"The Paperwork Reduction Act of 1995"

Public reporting burden for this collection of information is estimated
to average 40 hours per response, including the time for reviewing
instructions, gathering and maintaining the data needed and reviewing
the collection of information.

An agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless it displays a currently
valid Office of Management and Budget (OMB) control number.

  ------------------------------------------------------------------------------------ --------------------- --- --- --- --- --------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ -----------
                                                                                                                                                                                                                                                               OMB \#                    
                                                                                                                                                                                                                                                               0970-0255                 

  ACF-900 Child Care Report for High Performance Bonus                                                                                                                                                                                                         Expires                   
                                                                                                                                                                                                                                                               07/31/2008                

                                                                                                                                                                                                                                                                                         

  **U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES-ADMINISTRATION**                                                                                                                                                                                                                        

  **FOR CHILDREN AND FAMILIES**                                                                                                                                                                                                                                                          

  **TANF HIGH PERFORMANCE BONUS (HPB) AWARDS**                                                                                                                                                                                                                                           

  **CHILD CARE MEASURE**                                                                                                                                                                                                                                                                 

  **LOCAL MARKET RATE SUMMARY (ACF-900 )**                                                                                                                                                                                                                                               

  **75^th^ percentile of the market rate by age and county or administrative                                                                                                                                                                                                             
  region\***                                                                                                                                                                                                                                                                             

                                                                                                                                                                                                                                                                                          

  **State:**                                                                           **[ ]{.underline}**                   **Age of                                                                                                                                                    
                                                                                                                             Child**                                                                                                                                                     

  **FFY:**                                                                                                                   Less than             Greater                 Greater                 Greater                 Greater                 Greater                  Greater than 
                                                                                                                             or equal              than                    than                    than                    than                    than                     72-months &  
                                                                                                                             to 12                 12-months &             24-months &             36-months &             48-months &             60-months &              less than or 
                                                                                                                             Months                less than               less than               less than               less than               less than                equal to     
                                                                                                                                                   or equal to             or equal to             or equal to             or equal to             or equal to              156-months   
                                                                                                                                                   24-months               36-months               48-months               60-months               72-months                             

  **County or Admin Region**                                                           FIPS Code (Include                    Centers   FCC-Homes   Centers     FCC-Homes   Centers     FCC-Homes   Centers     FCC-Homes   Centers     FCC-Homes   Centers     FCC-Homes    Centers      FCC-Homes
                                                                                       county FIPS Code or                                                                                                                                                                               
                                                                                       more than one county                                                                                                                                                                              
                                                                                       FIPS Code                                                                                                                                                                                         
                                                                                       corresponding to an                                                                                                                                                                               
                                                                                       Admin Region.)                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                          

  County or Admin Region 1                                                                                                                                                                                                                                                                

  County or Admin Region 2                                                                                                                                                                                                                                                                

  County or Admin Region 3                                                                                                                                                                                                                                                                

  County or Admin Region 4                                                                                                                                                                                                                                                                

  County or Admin Region 5                                                                                                                                                                                                                                                                

  County or Admin Region 6                                                                                                                                                                                                                                                                

  County or Admin Region 7                                                                                                                                                                                                                                                                

  County or Admin Region 8                                                                                                                                                                                                                                                                

  County or Admin Region 9                                                                                                                                                                                                                                                                

  County or Admin Region 10                                                                                                                                                                                                                                                               

  County or Admin Region 11                                                                                                                                                                                                                                                               

  County or Admin Region N\*\*                                                                                                                                                                                                                                                            

                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                          

                                                                                                                                                                                                                                                                                         

                                                                                                                                                                                                                                                                                         

  \*Please ensure that the FIPS codes entered above are equivalent to those given on                                                                                                                                                                                                     
  the following web page.                                                                                                                                                                                                                                                                

                                                                                                                                                                                                                                                                                         

  <http://www.acf.dhhs.gov/programs/ccb/report/formhelp/acf801/helpdocs/context.htm>                                                                                                                                                                                                     

                                                                                                                                                                                                                                                                                         

  \*\*This chart should be extended to include as many rows as necessary to reflect                                                                                                                                                                                                      
  the number of counties or rate areas the State uses in determining its reimbursement                                                                                                                                                                                                   
  rates to providers.                                                                                                                                                                                                                                                                    

                                                                                                                                                                                                                                                                                         

  FCC-Home refers to Family Child Care Home                                                                                                                                                                                                                                              
  ------------------------------------------------------------------------------------ --------------------- --- --- --- --- --------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ------------ ------------ -----------