Contract Violations

When the child care provider signs the DHS contract to receive subsidy payments, the provider agrees to abide by the terms of the contract.  When local county staff becomes aware a provider is violating the terms of the contract, he or she sends an email to AFS Child Care Subsidy staff advising of the circumstances.  Local county staff may also complete Form 19MP001E, Referral Form, to report the violation to the Office of Inspector General.

Examples of contract violations include, but are not limited to:

• (1) discriminating against persons seeking services by charging a discriminatory rate or violating a person’s rights as listed in the Civil Rights Act of 1964 as amended, the Rehabilitation Act of 1973 as amended, or the Americans with Disabilities Act of 1990, as amended;
• (2) failing to maintain a drug-free workplace;
• (3) operating over licensed capacity;
• (4) possessing or swiping a client’s electronic benefit transfer (EBT) card;
• (5) knowing a client’s EBT personal identification number (PIN);
• (6) refusing unlimited access by a parent or caretaker to the areas of the facility used for child care during the hours of operation;
• (7) failing to ensure the parent or caretaker records accurate time and attendance information on the POS machine.  During the school year when a child is approved for a blended unit type or any time part-time care is approved, the parent or caretaker is only required to enter one swipe per day to record attendance because the number or hours the child attends does not affect provider payment;
• (8) charging a client receiving subsidized child care more than the DHS rate for days and hours within the client’s child care plan;
• (9) charging a client receiving subsidized child care an allowable fee when not charged to non-DHS participants;
• (10) failing to post all of the facility’s rates and fees;
• (11) charging or requiring a client to swipe attendance for days and hours outside of client’s child care plan when those days and hours are a requirement of the provider, not a choice of the client;
• (12) failing to advise and provide DHS a completed copy of any collaboration or agreement the provider enters into within 30 calendar days.  This includes agreements with Head Start, Early Head Start, public schools, or any other programs receiving state or federal funding;
• (13) claiming or receiving payment from DHS for any hours of care the provider is not charging all parents for care because provider receives state or federal funds for those hours.  Refer to Oklahoma Administrative Code (OAC) 340:40-5-1 (7) for policy on collaborations;
• (14) claiming payment for care given for any hours in an unlicensed collaborative classroom;
• (15) moving the children from the agreed upon location shown in the contract and claiming for services at the other location without prior written approval from AFS Child Care Subsidy staff;
• (16) moving the POS machine without receiving prior written approval from AFS Child Care Subsidy staff per subsection (f) of this Section;
• (17) failing to inform DHS of a change in facility status, legal business entity, or ownership of the business at least 30 calendar days in advance of the change;
• (18) failing to inform DHS in writing within 10 calendar days of any person who has an ownership or controlling interest in, or is an agent or managing employee of the child care business, who has been convicted of a criminal offense related to such person’s involvement under Titles XVIII, XIX, or XX of the Social Security Act;
• (19) failing to allow full access to the facility’s premises and personnel to investigate a complaint;
• (20) failing to report the income from the child care business within 10 calendar days to his or her AFS worker if receiving benefits;
• (21) claiming payment for care given by a home provider for an employee’s child.  Refer to OAC 340:40-5-1 (7);
• (22) subcontracting services to another provider; and
• (23) breaching the contract signed by the provider with the DHS EBT contractor.