Understanding the Alberta Child Care Affordability Grant
Keeping your Daycare or Dayhome Compliant While Lowering Fees for Parents
At Gallo LLP, we are dedicated to helping your daycare thrive by ensuring you stay compliant and maximize the benefits of the Alberta Child Care Affordability Grant. Our expert advice and auditing services support child care programs in navigating the complexities of the grant, allowing you to focus on what you do best—nurturing Alberta’s future. Our comprehensive guidance ensures you meet all regulatory requirements, effectively utilize your grant, and maintain accurate financial records, so you can continue providing exceptional care with peace of mind.
Learn more about our professional accounting services for those who work in real estate today.
What is the Alberta Child Care Affordability Grant?
The Alberta Child Care Affordability Grant is part of a federal-provincial initiative aimed at reducing child care fees for families in Alberta. This grant provides funding to licensed child care providers who commit to lowering parent fees to an average of $10 per day by the end of the 2025-26 fiscal year.
The Purpose:
The primary purpose of the Alberta Child Care Affordability Grant is to reduce parental fees and make child care in Alberta more affordable. The goal is to lower child care costs for families while still providing support to daycares, dayhomes, and other licensed providers. The grants can be used to cover overhead costs, educator wages, and other operational expenses, ensuring the sustainability and quality of child care services.
How it Works
Grants are distributed to licensed child care programs based on average program fees and the type of care provided, with higher rates for infant spaces due to their higher operational costs.
Programs receiving the grant must agree to reduce parent fees proportionately to the funding provided. This reduction applies monthly for each registered child and should not be applied retroactively unless correcting an error.
Programs cannot charge extra fees for care, services, or programming covered under previous grants, nor can they introduce or increase administrative or operational fees during the grant term.
If child care fees exceed the maximum permitted amount, programs must reduce the fees and reimburse parents for any overpayments.
The grant funds should be used to reduce child care fees and cover normal operational costs, such as wages, utilities, food, and rent. The grant cannot be used for investments, capital expenditures, or shareholder dividends.
By adhering to these guidelines, child care programs can ensure compliance while making child care more affordable and accessible for families across Alberta.
Who is Eligible for the Child Care Affordability Grant?
The Child Care Affordability Grant is available to specific licensed child care programs in Alberta. Eligible programs and spaces include:
- Facility-Based Programs: Licensed child care centers providing care to infants, toddlers, and preschool-aged children.
- Family Day Home Agencies: Licensed family day homes offering care to the same age groups as facility-based programs.
- Part-Time Kindergarten Care: Children who attend kindergarten part-time (fewer than five full days per week) and require child care during regular school hours.
- Income Support Beneficiaries: Spaces for children whose parents receive child care benefits through the Income Support program administered by Seniors, Social and Community Services ministry.
- Federal Military Bases and First Nations: Provincially licensed child care programs located on federal military bases or First Nations land.
Programs licensed after January 1, 2024, must receive approval from Child Care Licensing staff to be eligible for funding under the Canada-Alberta Canada-wide Early Learning and Child Care Agreement.
Ineligible programs and spaces include:
- Programs not approved by Children and Family Services.
- Programs that do not charge parent fees.
- Out-of-school care for full-time kindergarten to grade six students.
- Programs providing part-time child care for less than 50 hours per month (excluding preschools).
- Spaces where parent fees are fully covered by a third party, except for children of parents receiving benefits through the Alberta Income Support program.
- Programs in breach of the Affordability Grant Agreement without timely remediation.
Do You Need an Audit of Your Daycare?
If you are accessing the Affordability Grant, it’s important that you practice clear financial reporting. Everyone who is accessing this grant is required to submit monthly claims that provide detailed information for every child and parent accessing child care services. The claim records need to include the name, birthdate, parental address(es) and contact information, hours registered to the program, attendance, and what the parents are paying.
To ensure accountability for the distribution of public funds, child care facilities accessing the program are also required to provide detailed financial reporting. Programs that fail to submit required reports will be ineligible to sign future agreements and may be in breach of the current agreement.
Financial Reporting Requirements
- Programs receiving less than $250,000 per year from the grant must submit a signed financial report detailing actual spending.
- Programs receiving between $250,000 and $500,000 per year must submit a signed review engagement report showing revenue and expenses.
- Programs receiving more than $500,000 per year must submit a signed audited financial statement prepared by an accountant according to designated principles.
If you are accessing more than $500,000 in funding, you MUST be audited by a CPA. Gallo LLP can provide you with complete auditing services to ensure that this process is complete smoothly.
How Can Gallo LLP Help Navigate the Affordability Grant?
Gallo LLP offers expert advice and auditing services to help child care programs manage their grant compliance. Our team will assist in:
Financial Reporting and Compliance
Accurate Financial Reporting: CPAs ensure that all financial reports required under the grant are accurate and submitted on time. This includes signed financial reports, review engagement reports, and audited financial statements, depending on the level of grant funding received.
Audit and Financial Statement Preparation
Financial Statement Preparation: CPAs can prepare the required financial statements according to designated principles, ensuring transparency and accuracy in financial reporting.
Audit Services: For facilities with higher grant revenue, CPAs can conduct or assist with audits, ensuring that all financial practices meet the required standards and regulations.
Proper Fund Utilization
Guidance on Fund Use: CPAs can provide expert advice on how to properly allocate and use grant funds. They ensure that funds are used for eligible expenses, such as wages, utilities, food, and rent, and not for prohibited purposes like investments or shareholder dividends.
Budgeting and Financial Planning
Budgeting Assistance: CPAs can assist in creating and managing budgets to ensure that child care facilities can operate effectively within the constraints of the grant funding while still meeting all compliance requirements.
Financial Strategy: CPAs can develop financial strategies that maximize the benefits of the grant while ensuring long-term financial stability and growth for the child care facility.
Compliance and Regulation
Ensuring Compliance with Regulations: CPAs stay updated on all relevant regulations and guidelines, helping child care facilities comply with the latest requirements of the Affordability Grant and other related programs.
Consultation and Advice: CPAs can offer ongoing consultation and advice on financial matters, ensuring that the child care facility remains compliant with all aspects of the grant agreement.
By leveraging the expertise of a CPA, child care facilities can effectively manage their grant funds, ensure compliance with all regulations, and focus on providing high-quality care to children.
Frequently Asked Questions
The grant aims to reduce parent fees to an average of $10 per day. The reduction is applied monthly for each registered child and is not retroactive unless correcting an error.
Programs must reduce fees to meet the maximum permitted amount and reimburse parents for any overpayments.
Non-compliance can result in the inability to sign future grant agreements and may lead to the requirement to reimburse parents if fees exceed the permitted amount.
Grant funds must be used to reduce child care fees and cover normal operational expenses such as wages, utilities, food, and rent. Funds cannot be used for investments, capital expenditures, or shareholder dividends.
No, programs cannot charge additional fees for services already covered under the previous Affordability Grant, nor can they introduce new administrative, operational, or equipment fees during the grant term.
Eligible licensed child care programs can apply through the online Child Care Licensing Portal. For assistance, contact licensing staff at your local or regional Children’s Services office.
Licensed child care programs in Alberta, including facility-based programs and family day home agencies, caring for infants, toddlers, and preschool-aged children are eligible. Programs must be approved by Children and Family Services and comply with all terms of the grant agreement.
Programs receive payments within 5 to 10 business days of submitting their claims. You should be notified directly if there will be a delay beyond 10 days. After your monthly claim is processed, you can access a full report through C3P.
Yes, there is the Alberta Child Care Subsidy Program, the Alberta Child Care Grant Funding Program, or the Infant Care Incentive. Reach out to our team if you’re looking for assistance with these grants!
What Our Clients Are Saying
Speak with our team
Communication Matters
At Gallo LLP we understand timely communication from your financial experts is key, our 411 Commitment ensures you get the advice and solutions you are looking for
