VOLUNTARY TEMPORARY TRANSFER OF FUNDS (VTT)

The Voluntary Temporary Transfer of funds (VTT) is a process facilitated by the Child Care and Development Division (CCDD) of the California Department of Social Services (CDSS) between over-earning contractors and under-earning contractors with similar contract types in an effort to fully utilize child care and development funding. Contract types that are eligible to participate in the VTT process are as follows: CCTR, CMIG, CMAP, CFCC, CHAN, and CAPP. More information about these contracts can be found at CDSS Contractor Resources.

VTT PROCESS

The VTT process is a collaborative process between CCDD state funded Contractors, Local Planning Councils (LPCs), Program Quality and Improvement (PQI) Consultants, CDSS Fiscal Analysts and the CDSS LPC Liaison.

The California Department of Social Services (CDSS) directs each Local Planning Council (LPC) to establish a local, fair and transparent policy regarding the voluntary, temporary contract fund transfer process established by California WIC 10300.5.
The LPC must identify a LPC designee to coordinate this process. This may include appointing a LPC subcommittee to implement the VTT process or by appointing the LPC Coordinator.
If the LPC chooses to establish an LPC subcommittee, their charge will be to develop a transparent and fair process to make voluntary, temporary contract fund transfer requests to CDSS. The LPC subcommittee members should not have either a financial interest or any personal benefit from the activities related to the outcome of this process.
The LPC, through its LPC designee or LPC subcommittee, shall convene meetings of CCDD state-funded direct services contractors within the county. The purposes of these meetings are to describe and discuss the voluntary, temporary contract fund transfer opportunities and to identify key timelines and eligibility requirements. No under or over earning information about individual contractors will be publicly discussed, unless initiated voluntarily by individual contractors, and only for their own specific contract(s).
Contractors who believe they will under or over earn their contracts within the contract year will indicate their willingness to participate to the LPC designee/subcommittee, via e-mail or other means, giving an estimate of the amount of contract funding they expect to be able to temporarily release and transfer or accept. They will include PQI Consultant and Fiscal analyst in all VTT communication.
The LPC Designees/Subcommittee will contact the PQI Consultant and Fiscal Analyst for a preliminary assessment of the contractor’s standing and earnings status once agencies have self-identified willingness to participate in the VTT process.
LPC Designee/Subcommittee will evaluate the potential “fund transfer-receiving contractors” according to the following criteria:
1. Potential contract fund transfers must be between the same contract types (i.e., CCTR to CCTR) in order to fully utilize child care and development funding.
2. The requesting contractor must demonstrate the ability to over earn their existing contract amount within their existing licensed capacity. They must be immediately ready to serve additional child days of enrollment or be already over-earning their contract maximum reimbursement amount.
Once a VTT request has been received and qualified by Fiscal Analyst and PQI Consultant, LPC Designee/Subcommittee will contact state-funded contractors within its respective county to determine if a VTT match is available. If no match is available in-county, the LPC Designee/Subcommittee will contact PQI Consultant, Fiscal Analyst and CDSS LPC Liaison to see if a match outside of county can be identified.
Once the transfer agencies are identified and qualified by CDSS, the LPC Designee/Subcommittee will collect signed letters of request from the state funded contractors indicating their willingness to temporarily release funds and transfer contract funds (Attachment B) or accept transferred contract funds (Attachment C). The LPC Designee/Subcommittee will attach a cover letter (Attachment A) that requests review of the submitted documents and sends the complete package (all three letters, including copies of contract face sheets) to both the PQI Consultant and CDSS Fiscal Analyst for consideration according to the specific time schedule determined by CDSS. All requests must be sent between November 1 and November 15 or between April 15 and April 30. Additionally, CDSS will accept VTT requests between November 1 and April 30 on an as-needed basis, and process accordingly
The decision to approve or deny voluntary, temporary transfers of contract funds will be made exclusively by CDSS. Once the decision is made by the CDSS staff, the LPC Designee/ Subcommittee will be notified of the outcome. All requests will be approved, modified, or denied. If the agreement is modified, all parties will be informed of the modification and be given the opportunity to agree before the contract modification is finalized.
If the request is approved, the participating CCDD contracting agencies will receive contract amendments and fiscal adjustments based on CDSS staff approvals.
If the request is modified, the participating CCDD contracting agencies will receive contract amendments and fiscal adjustments based on the contract modification agreement with CDSS staff approval. It is critical that contractors who agree to temporarily release contract funds sign and return contract amendments as soon as possible. CDSS cannot amend contracts for the agency temporarily receiving additional funds until the under-earning contractor signs and returns their contract amendment to release the funds.
If the request is denied, the participating CCDD contracting agencies will receive a letter that explains why the request was denied.

CDSS State-Funded Contractor Roles and Responsibilities

Participate in local LPC convened meetings regarding process for local VTT requests.
Contractors shall self-identify as an over- or under-earner and submit a transfer request that includes an amount of contract funding, they expect to be able to temporarily release or accept to LPC Subcommittee/Designee, CDSS PQI Consultant and Fiscal Analyst.
Communicate with LPC designee/subcommittee, PQI Consultant and Fiscal Analyst the intent to request (accept) or release contract funds.
Work with LPC designee/subcommittee to complete Attachment B and Attachment C.

Local Planning Council VTT Designee/Subcommittee Specific Roles and Responsibilities

Identify an LPC designee to coordinate VTT process – LPC Coordinator or subcommittee of council.
Establish policy/process regarding the local VTT process.
Convene meetings of CCDD state-funded, direct service contractors in county to discuss VTT process, opportunities, timelines, and eligibility. If a contractor in local county is not available to accept funds, work with CDSS Fiscal Analyst and CCDD Child Development Consultant on next steps.
Once contractors for VTT process have been identified, contact CDSS PQI Consultant and CDSS Fiscal Analyst (include CDSS LPC Liaison for awareness) to determine contractors standing and fiscal status.
Collect signed letters of VTT request from contractors/agency representatives indicating willingness to release/accept funds (Attachment B and Attachment C)
Submit Cover Letter (Attachment A) with Attachments B and C to CCDD Child Development Consultant, CCDD Fiscal Analyst and CCDD LPC Liaison. When funds are being released out of county, the LPC relinquishing funds will submit all attachments to CDSS/CCDD.
The LPC designee or the LPC subcommittee will report annually to the full LPC on the progress and process of voluntary, temporary contract transfers of CCDD contract funds in their county.

VTT Timeline

VTT requests can be submitted between November 1 and November 15 or between April 15 and April 30. Additionally, CDSS will accept VTT requests between November 1 and April 30 on an as-needed basis, and process accordingly. VTT guidance and forms are located on CDSS contractor webpage at LPC Forms. If you need assistance obtaining the VTT forms or with the VTT process, please contact your CDFS fiscal analyst. VTT requests will be accepted electronically with Adobe Acrobat digital signature. The completed forms can be submitted via email to your CDFS Fiscal Analyst, once you have worked with your local LPC Subcommittee/Designee.

VTT Resources

VTT Forms

CCDD Fiscal Resources Webpage

24.25 Child Care Fiscal Handbook VTT Process Outlined on Page 75-76

CDSS Contractor Resources

24.25 Funding terms and Conditions

CCDD Contact Webpage