General guidance regarding common compliance issues Child Care Payments Compliance

Transcription

1 Attachment B General guidance regarding common compliance issues Child Care Payments Compliance The family assistance law consists of the following primary legislation : A New Tax System (Family Assistance) Act 1999 ( the Assistance Act ); and A New Tax System (Family Assistance) (Administration) Act 1999 ( the Administration Act ). For more information refer ATTENDANCE REPORT MATTERS (ACCURACY) Attendance reports submitted to CCMS must be ACCURATE Attendance Report Matters (Accuracy) - Family assistance law legislative references Section 219N(4) of the Administration Act Section 10 of the Assistance Act Child Care Benefit (Sessions of Care) Determination 2000 (Sessions Determination) Section 76 of the Assistance Act Child Care Benefit (Rates and Hardship) Determination 2000 (Rates and Hardship Determination) Your service must ensure that attendance reports submitted to CCMS contain accurate information to enable the accurate calculations of CCB and CCR entitlements of families etc. Section 10 of the Assistance Act sets out the rules relating to special types of absences where Child Care Benefit (CCB) may still be payable even when the child is absent. The Sessions Determination sets out rules for reporting care provided to school aged children on days that they attend school. Section 76 of the Assistance Act sets out the rules for certifying the special Child Care Benefit rate (SCCB rate) for a particular child/session When certifying the SCCB rate, services must ensure they do so in accordance with the requirements of the Rates and Hardship Determination. Section 176(3) of the Administration Act If: a person makes a statement the statement is false or misleading the person is reckless as to whether the statement is false or misleading as a result the person obtains an amount paid under section 219Q or 219QA (CCB by fee reduction amounts paid to a child care service) or section 219QC or 219QD(2) (CCR amounts paid to a

2 Attendance Report Matters (Accuracy) - Family assistance law legislative references service), the person (approved child care service) will have contravened section 176(3) of the Administration Act. THIS IS A CRIMINAL OFFENCE Attendance Report Matters (Accuracy) Explained Reporting absences before the service has started providing care to a child Reporting initial 42 day absences after the service has permanently ceased providing care to a child Reporting absences where no care would have been provided Approved child care services must not report absences before the service has started providing care to a child. Where there is booked care and the child does not attend, CCB is not payable in relation to this booked care if this booked care occurred before the first day that the child has physically attended care at your service. You must not report an absence for a child before they start attending care at your service. Reporting of these absences could constitute a contravention of section 219N(4) of the Administration Act (by failing to accurately report attendance information in accordance with the absence rules set out in section 10 of the Assistance Act). Approved child care services must not report initial 42 day absences after the service has permanently ceased providing care to a child. Where there is booked care and the child does not attend, Child Care Benefit is generally not payable in relation to this booked care if this booked care occurred after the last day that the child has physically attended your service. You must not report an initial 42 days absence for a child after the last day that the child physically attended your service. Reporting of these absences could constitute a contravention of section 219N(4) of the Administration Act (by failing to accurately report attendance information in accordance with the absence rules set out in section 10 of the Assistance Act). Approved child care services must not report an absence where the child is not booked to attend a particular session of care (i.e. where no care would have been provided). Reporting of these absences could constitute a contravention of section 219N(4) of the Administration Act (by failing to accurately report attendance information in accordance with the absence rules set out in section 10 of the Assistance Act). Only report an absence if the session of care would have been provided to the child if the child was not physically absent. Page 2 of 15

3 Attendance Report Matters (Accuracy) Explained Reporting attendances where no care was provided Full day sessions reported when child attends school Approved child care services must not report an attendance where the child has not been provided with care by the service. You must only report that a child attended a session of care if the child was physically present and in attendance at the child care session. If the child would have attended the session, you may wish to consider reporting an absence but only if the requirements of section 10 of the Assistance Act are complied with. Reporting of such an attendance, if it is not a section 10 absence, could constitute a contravention of section 219N(4) of the Administration Act. Approved child care services must not report that a school aged child attended a full day session if the child attended school on that day (where sessions of care are either an hour or less in length). Because of the operation of the Sessions Determination, care provided to a school aged child before they attend school on that day will constitute before school care. Similarly, most care provided to a school aged child after they have attended school on that day will constitute after school care. You must not report that a child attended a full day session if care provided to this child instead constitutes before school care and after school care. Reporting of such an attendance could constitute a contravention of section 219N(4) of the Administration Act (by failing to comply with the requirements of the Sessions Determination). Reporting attendances or absences where a transport only service was provided Approved child care services must not report that a session of care was provided if the child was provided with a transport service only. No CCB is payable where a child is solely being provided with a transport service It is not unlawful, however, for a child care service to transport a child to and from care. Reporting of such an attendance could constitute a contravention of section 219N(4) of the Administration Act. Reporting incorrect session times Approved child care services must not report session times that are inaccurate. Attendance reports are the main basis for calculating a parent s CCB entitlement. Session times, and the parent s actual liability for fees to the child care service must be accurately reflected in the attendance reports so that CCB by fee reduction amounts can be correctly calculated. Reporting inaccurate session times could constitute a contravention of section 219N(4) of the Administration Act. Page 3 of 15

4 Attendance Report Matters (Accuracy) Explained Reporting incorrect fees Approved child care services must not report parents liability for fees inaccurately. The parent s actual liability for fees to the child care service must be accurately reflected in the attendance reports so that CCB by fee reduction amounts can be correctly calculated. Services must not calculate the gap fee, and then give parents a discount on the gap fee amount. In this case, the discounted gap fee represents the parent s actual child care fee liability, and it is this discounted fee that needs to be reflected in the attendance report. Reporting of incorrect fee liabilities could constitute a contravention of section 219N(4) of the Administration Act. Reporting incorrect Special Child Care Benefit (SCCB) rate type (Child at Risk or Temporary Financial Hardship) Approved child care services must not inaccurately identify, in attendance reports, whether the service has certified the SCCB rate for the reason of child at risk or temporary financial hardship. If a service is satisfied that a child is at risk of serious abuse or neglect or that the parent is experiencing temporary financial hardship, such that the service certifies, in writing, the SCCB rate for that child, the service must make sure that (1) the certificate accurately identifies the reason for certifying the SCCB rate; and (2) that the section 219N attendance report also accurately identifies the SCCB rate type. [Note that section 9 of the Child Care Benefit (Rates and Hardship) Determination 2000 provides that when a service gives a SCCB rate certificate, the certificate must include a description of the circumstances that led to the certificate being given including whether the certificate is given for hardship reasons or because the service considers the child at risk. Where the certificate is given for hardship reasons, the details of the hardship that the person is experiencing must be included in the certificate.] Reporting incorrect SCCB rate type could constitute a contravention of section 219N(4) of the Administration Act. (Note that where there has been a failure to certify the SCCB rate appropriately, this may constitute a failure to comply with section 76 of the Assistance Act and/or the Rates and Hardship Determination.) Page 4 of 15

5 Attendance Report Matters (Accuracy) Explained Reporting that your service has certified the Special Child Care Benefit rate for dates that don t match the dates on the SCCB certificate Approved child care services must not inaccurately identify, in attendance reports, the period for which the service has certified the SCCB rate. The SCCB certificate must specify the number of weeks that the SCCB rate has been certified. This period must be accurately reported in attendance reports. [Services are reminded that there are limits on services giving certificates (the 13 week limit) in sections 77 and 78 of the Assistance Act. There is also an 18% reporting period limit on giving SCCB rate certificates.] Reporting incorrect periods in relation to which your service has certified the SCCB rate may constitute a contravention of section 219N(4) of the Administration Act. Page 5 of 15

6 ATTENDANCE REPORT MATTERS (TIMEFRAMES) Attendance reports submitted to CCMS must be SUBMITTED WITHIN THE REQUIRED TIMEFRAME Attendance Report Matters (Timeframes) - Family assistance law legislative references Section 219N(5) of Administration Act Your service must ensure that attendance reports are submitted to CCMS within the required timeframe. Generally speaking, reports must be submitted to CCMS no later than two weeks after the end of the week in which care was provided. Attendance Report Matters (Timeframes) - Explained Attendance reports not submitted to CCMS within the required timeframe. Approved child care services must ensure that attendance reports are submitted to CCMS within the required timeframe. Failure to do so could constitute a contravention of section 219N(5) of the Administration Act. Section 219N(5) of the Administration Act sets out the timeframes in which section 219N attendance reports must be submitted to CCMS. Generally speaking, reports must be submitted to CCMS no later than two weeks after the end of the week in which care was provided. If the week in which a session of care was provided occurs before the day on which the child s enrolment was confirmed, the section 219N attendance report must be submitted within a period of seven days after the enrolment is confirmed. There may be different timeframes where business continuity payments are involved see section 219N(5AA) of the Administration Act. Page 6 of 15

7 RECORD KEEPING MATTERS (TIME FRAMES) Certain records must be kept for a particular length of time Record Keeping Matters - Family assistance law legislative references Section 219F of Administration Act A New Tax System (Family Assistance) (Administration) (Child Care Benefit Record Keeping) Rules 2006 (Record Keeping Rules) Records that are listed in the Record Keeping Rules must be kept for at least 36 months after the end of the year in which the information in the record relates. The Record Keeping Rules identify which records, once created, approved child care services must keep for the length of time specified in section 219F of the Administration Act. Record Keeping Matters - Explained Records must be kept for at least 36 months starting at the end of the year in which the care was provided to which the information or event relates Approved child care services must ensure that records that are listed in the Record Keeping Rules must be kept for at least 36 months after the end of the year in which the information in the record relates. Failure to keep these required records within the required timeframe could constitute a contravention of section 219F of the Administration Act. If there are court proceedings in relation to an offence against the Administration Act or for the contravention of a civil penalty provision, and the court orders that the records be kept for a certain period the records must be kept for that period. The records that, once created, must be kept include: Records of attendance for each child to whom care was provided Statements or documents prepared or obtained in relation to additional absences Copies of certificates given by the child care service under the family assistance law Copies of receipts issued to people who have paid child care fees Enrolment forms Insurance policies and other documents relating to insurance Accounting records Additional records that must be kept by family day care services Full name, residential address and contact telephone number of each carer employed or contracted by the service; and If child care is provided by a carer at a place other than the carer s residence the address and telephone number of the premises where care is provided. Page 7 of 15

8 QUARTERLY STATEMENTS PROVIDED TO PARENTS Provide parents with quarterly statements Quarterly Statements Provided to Parents - Family assistance law legislative references Section 219E of the Administration Act A New Tax System (Family Assistance) (Administration) (Child Care Benefit Statements) Rules 2009 (No.1) (Statement Rules) Quarterly statements must be provided to parents which contain certain information (which must be accurate) must be provided within the required timeframe The Statement Rules contain requirements about quarterly statements including the required information that must be included. Quarterly Statements Provided to Parents - Explained Not providing quarterly statements to parents within the required timeframe Approved child care services must, generally speaking, give statements to parents for every 3 months from the day the service was approved. Failure to provide statements within the required timeframe could constitute a contravention of section 219E of the Administration Act. Generally speaking, from the date a service is approved, a service must, for every 3 months from that day, give statements to parents where: they are determined to be conditionally eligible for CCB by fee reduction; the service provided on or more sessions of care to the child the service passed on CCB by fee reduction to the parents for the session(s). This statement must be given before the end of the month after the end of the statement period. For example, if a service is approved on 1 January. The first three month period will run from 1 January to 31 March. The service must give all parents who have children in care during this period in relation to whom the service has passed on CCB by fee reduction amounts for care given during this period, a section 219E statement on or before 30 April. Not providing quarterly statements to parents AT ALL Approved child care services must, generally speaking, give statements to parents for every 3 months from the day the service was approved. Failure to provide statements at all could constitute a contravention of section 219E of the Administration Act. Generally speaking, from the date a service is approved, a service must, for every 3 months from that day, give statements to parents where: they are determined to be conditionally eligible for CCB by fee reduction; the service provided on or more sessions of care to the child the service passed on CCB by fee reduction to the parents for the session(s). Page 8 of 15

9 Quarterly Statements Provided to Parents - Explained Not providing quarterly statements to parents that contain the required information Approved child care services must, generally speaking, give statements to parents for every 3 months from the day the service was approved. The statements must include certain information. Failure to provide statements that contain the required information could constitute a contravention of section 219E of the Administration Act. Section 219E statements must include the following information: the state and end of the statement period (the state date and end date of the 3 month period to which the statement relates) the amount that would have been payable for the sessions of care provided by the service during the statement period if no fee reduction amounts had been passed on The amount of CCB fee reduction amounts that was required to be passed on to the parent for those sessions of care The name of the service The service s ABN (if any) The unique identifier assigned to the service by the Department The name of the person to whom the statement was given The name of the child to whom the session of care was provided The unique identifier assigned by the Department to the enrolment of the child for care by the service Number of hours in the session of care The date of issue of the statement. You must read through section 219E(5) of the Administration Act and the Statement Rules for the complete and definitive list of information that must be included in a section 219E statement. Page 9 of 15

10 CHILDREN PREVENTED FROM ATTENDING PART OF A SESSION Children prevented from attending part of a session of care Children Prevented from Attending Part of a Session - Family assistance law legislative references Section 10 of the Child Care Benefit (Eligibility of Child Care Services for Approval and Continued Approval) Determination 2000 (Eligibility Determination) Children must not be prevented from attending part of a session of care. Children Prevented from Attending Part of a Session - Explained Children prevented from attending part of a session of care Where a child attends a session of care, the service must not prevent the child from attending any part of that session. For example, if a service has a 9 am to 11 am session on Monday mornings, a child that turns up at 9 am cannot be prevented from attending the am portion of that session of care. Preventing a child from attending part of a session of care could constitute a contravention of section 10 of the Eligibility Determination. Page 10 of 15

11 FEE CHARGING WHERE SCCB RATE/GRANDPARENT/JETCCFA APPLICABLE TO SESSION OF CARE Obligation to charge no more than usual fee where SCCB rate certified/grandparent CCB rate applies/individual eligible for JETCCFA Fee Charging Where SCCB Rate/GCCB/JETCCFA Applicable to session of Care - Family assistance law legislative references Section 219BB of the Administration Act Special Child Care Benefit rate (SCCB rate) certified Section 219BC of the Administration Act Where individual eligible for the special grandparent rate Section 219BD of the Administration Act Where individual eligible for Jobs Education and Training child care fee assistance (JET CCFA) The fee set for the session of care where the SCCB rate has been certified must be the same as the fee that would have been charged for the same session for the same child if the SCCB rate did not apply. The fee set for the session of care where the individual is eligible for the special grandparent rate must be the same as the fee that would have been charged for the same session for the same child if the individual was not eligible for the special grandparent rate. The fee set for the session of care where the service is aware that an individual is eligible for JET Child Care fee assistance must be the same as the fee that would have been charged for the same session for the same child if the individual was not eligible for JET Child Care fee assistance. Fee Charging Where SCCB Rate/GCCB/JETCCFA Applicable to session of Care - Explained Charging a higher fee for a session where the SCCB rate has been certified Charging a higher fee for a session where individual is eligible for the special grandparent rate Approved child care services must not set a higher fee for a session of care where the SCCB rate has been certified than what would have been charged for the same child for the same session had the SCCB rate not applied. See also sections 76 and 81 of the Assistance Act. Doing so could constitute a contravention of section 219BB of the Administration Act. Approved child care services must not set a higher fee for a session of care where the individual is eligible for the special grandparent rate than what would have been charged for the same child for the same session had the individual not been eligible for the special grandparent rate. Doing so could constitute a contravention of section 219BC of the Administration Act. Charging a higher fee for a session where individual eligible for JETCCFA Approved child care services must not set a higher fee for a session of care where the parent is eligible for Jobs Education and Training child care fee assistance (JET CCFA) than what would have been charged for the same child for the same session had the parent not been eligible for JETCCFA. Doing so could constitute a contravention of section 219BD of the Administration Act. Page 11 of 15

12 PROVIDING 24 HOUR CARE Providing 24 hour care where 24 hour care has not been certified by service or decided by the Secretary Providing 24 Hour Care - Family assistance law legislative references Section 56 of the Assistance Act 24 hour care must only be provided where the service has, in accordance with section 56 of the Assistance Act, given a 24 hour certificate OR the Secretary has decided that a 24 hour care limit applies. Providing 24 Hour Care Explained Providing 24 hour care where 24 hour care has not been certified by service or decided by the Secretary Providing 24 hour care where 24 hour care has not been certified by the service or decided by the Secretary could constitute a contravention of section 56 of the Assistance Act. 24 hour care must only be provided where the service has, in accordance with section 56 of the Assistance Act, given a 24 hour certificate OR the Secretary has decided that a 24 hour care limit applies. Page 12 of 15

13 COMPLIANCE WITH LAWS OF THE COMMONWEALTH OR A STATE OR TERRITORY THAT RELATE TO THE OPERATION OF THE SERVICE ETC (COMPLIANCE WITH NATIONAL LAW) Failure to comply with applicable Commonwealth or State or Territory laws relating to operation of the service and provision of care by the service etc. Compliance with Laws of the Commonwealth or State or Territory that Relate to the Operation of the Service - Family assistance law legislative references Section 196(3) of the Administration Act Non-compliance with the Education and Care Services National Law (National Law) and the Education and Care Services National Regulations (National Regulations) It is a condition for continued approval that the operation of the service, provision of care by the service, construction of the premises of the service and equipment at the premises of the service comply with all applicable requirements imposed by a law of the Commonwealth or a law of the State or Territory in which the service operates. [or other relevant obligations] Compliance with Laws of the Commonwealth or State or Territory that Relate to the Operation of the Service - Family assistance law legislative references - Explained Failure to comply with applicable Commonwealth or State or Territory laws relating to operation of the service and provision of care by the service etc. If a service is required to comply with the National Law and National Regulations, a failure to do so is a failure to comply with a condition for continued approval under the family assistance law: specifically, non-compliance with section 196(3) of the Administration Act. It is a condition for continued approval that the operation of the service, provision of care by the service, construction of the premises of the service and equipment at the premises of the service comply with all applicable requirements imposed by a law of the Commonwealth or a law of the State or Territory in which the service operates. This means that if a service is required to comply with the National Law, a failure to do so is a failure to comply with a condition for continued approval under the family assistance law. Page 13 of 15

14 CHECKING SUITABILITY OF NEW EDUCATORS AND STAFF TO PROVIDE CHILD CARE Checking suitability of new educators and staff Checking suitability of new educators and staff to provide care - Family assistance law legislative references Section 16(5) of the Eligibility Determination Section 196(1) of the Administration Act Services must undertake a check of all new staff and carers to ensure that they are suitable people to provide child care. It is a condition for the continued approval of a child care service that the service satisfy applicable eligibility rules set out in the Eligibility Determination. Checking suitability of new educators and staff to provide care - Explained Failure to check suitability of new educators and staff to provide child care Services must undertake a check of all new staff and carers to ensure that they are suitable people to provide child care. Failure to do so could constitute a contravention of section 16(5) of the Eligibility Determination. In addition, a failure to comply with the Eligibility Determination is a failure to comply with the condition for the continued approval of a service under section 196(1) of the Administration Act. Page 14 of 15

15 STAFF AND CARERS MUST AT ALL TIMES BE SUITABLE PEOPLE TO PROVIDE CHILD CARE Staff and carers must be suitable people to provide child care at all times Staff and carers must at all times be suitable people to provide child care - Family assistance law legislative references Section 16(4) of the Eligibility Determination Section 16(3) of the Eligibility Determination Section 196(1) of the Administration Act Carers contracted by a family day care service or in-home care service must at all times be suitable people to provide child care. Staff of the approved child care service must at all times be suitable people to provide child care. It is a condition for the continued approval of a child care service that the service satisfy applicable eligibility rules set out in the Eligibility Determination. Staff and carers must at all times be suitable people to provide child care - Explained Failure to ensure that staff and/or carers are, at all times, suitable people to provide child care Services must ensure that carers (where contracted by a family day care service or an in-home care service) and staff of the approved child care service are at all times suitable people to provide child care. Failure to do so could constitute a contravention of section 16(4) or section 16(3) of the Eligibility Determination respectively. In addition, a failure to comply with the Eligibility Determination is a failure to comply with the condition for the continued approval of a service under section 196(1) of the Administration Act. Page 15 of 15