Child Care Subsidy: Closure of Child Care Benefits

Per Policy 340:40-9-2(f)

When the client is no longer eligible for child care, the closure date varies depending on the circumstances.

Same day action is taken or future date requested by the client

When a client requests the closure of his or her child care benefit and is no longer using child care, the worker can close the benefit effective the same day the action is taken. The date could also be more than 10 days in the future if the client gives you a future date when child care will no longer be needed.

10 days from date the action is taken when the:

  • Payee for the child care changes (refer to OAC 340:40-3-1(a)(1)(C) for information about when a new application is required);
  • Only child approved for care leaves the home;
  • Client already received income for the current month that is over the federal income threshold (per DHS Appendix C-4);
  • Client moves out of the state; or
  • Client was approved for child care in error.

Last day of the current month

When the client will not receive enough income during the current month to cause him or her to become ineligible, but client’s income is expected to exceed the federal income guidelines per DHS appendix C-4, in the next month.  This may happen when a client starts new employment.

Last day of the renewal month

  • When the client falls out of compliance with child support requirements during the 12 month eligibility period and is still not cooperating at renewal.
  • When the client loses the need factor during the 12 month eligibility period and is not meeting a need factor at renewal.
  • When only child receiving care reached the maximum age limit.
  • When an adopted child turned 6 years old during the eligibility period and family income must now be considered. (A new application is required per OAC 340:40-3-1.
  • When the client fails to complete the benefit renewal process in a timely manner (system generated closure)

90 days from the date the client loses their need factor

  • When a TANF client stops participating in their assigned work activity.
  • When the parent or caretaker for a child-only TANF case loses their need factor.
  • When a SNAP E&T client stops participating in their assigned activity. (SNAP State Office staff will approve and close all child care for SNAP E&T participants.)

Systems Note: The worker can enter a closure action in the Child Care tab in the “Action Taken” field (E3), the closure reason in the “Reason” field (E4) and the actual date the child care benefit should stop in the “Effective Date” field (E5) and it will map the closure to the authorization section (Auth. Daycare tab in FACS/EKL in IMS).

Closure Examples:

  1. Jane Doe calls her worker on June 12 to report that her children will be staying with their father for the summer beginning June 28, and she won’t need child care for them. On June 15, the worker takes action and closes the child care benefit effective June 28. (When the client requests benefits be closed, the worker makes the closure effective the date the client stated he or she no longer needs care. The worker does not have to give a 10 day notice.)
  2. Sarah Bird is a benefit reporter for the month of June. She turns in her BRR form on June 2. The pay stubs she provides show her income is over the federal threshold. The child care review was not returned timely so the benefits are already closed. The worker leaves the closure on the system and sends Form 08MP038E – Client Notice of Action Taken, to advise Ms. Bird of her ineligibility.
  3. Jamie Waters calls her worker on June 5 to report she stopped working at Quick Trip on May 28 and began working for JC Penney’s on June 4. She will receive her first full pay check on June 18. Based on the employer’s statement her income is over the federal threshold. Since this is income from a new source and the client will not have enough income in June to put her over income, the worker closes the child care benefit effective June 30.
  4. The worker sees a G3 discrepancy on Stephanie Atkins case on June 11 showing she is not cooperating with pursuing child support. The worker does not take action when a client falls out of compliance with child support during the eligibility period. If at renewal the client is still not cooperating, the case is closed effective the last day of the renewal month.
  5. Amy Simpson is a TANF recipient participating in a special project. Her worker receives notice from the special project on April 5 that she has not attended class since March 24. The worker closes the child care effective June 24, which is 90 days from when the client stopped participating.
  6. Amy Lynn is in the county office to apply for TANF. Prior to TANF certification, Amy must complete a drug screening and is scheduled for that appointment on September 12, 2017. Child care is approved for Amy to go to her screening but Amy fails to show up for the appointment. TANF is denied as Amy did not have good cause for missing the appointment. Child care must be closed 90 days from the date that Amy failed to participate in her TANF work assignment (12/12/17). Child care may be closed in this instance because the child care is considered “TANF related.”
  7. Mary Darling comes into the county office to apply for child care for her daughter Wendy on October 8. Mary just began a new job and will receive her first partial check on October 22 and her first full pay check on November 6. Mary’s anticipated in monthly income is $3500 per month. Mary’s anticipated income is over the eligibility guidelines for a family of 2 (Appendix C-4, $3218/month), however, she is eligible for child care until she is receiving her full income. The worker must use the unfinished issuance process to approve Mary’s child care for the first two months and then close the child care effective Nov 30 due to earnings. Mary will not receive her first full check until after the 1st of November so her income must be diverted for October and November using the “total diverted” (E47) block in FACS. The worker must then undivert the income and code a closure on the system effective November 30. (**failure to use the unfinished process will result in the copayment locking in at $0 for the remainder of the eligibility period**)

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