Great Start Compensation Support Payment FAQs

​Child care program types eligible for funds include: 

• ​Family and group family licensed under Minnesota Rules, Chapter 9502 
• ​Child care centers licensed under Minnesota Rules, Chapter 9503 
• ​Certified license-exempt child care centers under Minnesota Statutes, Chapter 245H 
• ​Tribally licensed child care programs

Providers must be in an allowable license/certification status with the department or their Tribal Nation for at least five calendar days during the funding period (under Minnesota Rules, Chapters 9502, 9503, 245H or 119B). Please see FAQ 1.7 for a list of allowable license/certification statuses for state licensed/certified providers.

• Providers must have been operating for at least five calendar days during the funding period.
• ​Providers must meet a minimum daily attendance requirement on at least five calendar days during the funding period. The minimum daily attendance number varies by provider type and other considerations. Please see the minimum daily attendance requirements in FAQ 4.3.
• Temporary closures including seasonal closures for summer-only and school year-only providers are allowable as long as the provider meets all other eligibility requirements.

Program must not have been:

• ​The subject of a current or past finding of fraud for which the program or individual is currently serving a penalty or exclusion
• ​The subject of suspended, denied, or terminated payments to a provider under section 256.98, subdivision 1; 119B.13, subdivision 6, paragraph (d), clauses (1) and (2); or 245E.02, subdivision 4, paragraph (c), clause (4), regardless of whether the action is under appeal
• ​Prohibited from receiving public funds under Minnesota Statutes, Section 245.095, regardless of whether the action is under appeal
• ​Under license revocation, suspension, temporary immediate suspension or decertification, regardless of whether the action is under appeal. 

Applications will be available to all eligible providers on a monthly basis. Eligible providers will receive an email at the start of each application period with a link to a personalized application link.

In the future, applications will move into the Provider Hub. Details will be provided ahead of time so providers can prepare for the relocation of the application from the current email-based process to the Provider Hub.

Starting with the July 2024 application period, all state licensed or certified centers applying for Great Start Compensation funding will complete their application in the Provider Hub.

State licensed family child care providers will continue to submit applications in the same way they do today and will not move to the Provider Hub for Great Start Compensation until after the  family child care licensing launches in the Provider Hub in Fall 2024. All Tribally licensed providers will also continue to use the existing application process.

Applications must be submitted monthly.

Late applications will not be accepted. It is strongly recommended to submit your application early in the application period to avoid missing the submission deadline due to any unforeseen challenges that may arise.

Beginning June 2024, the application will consistently open on the 10th of each month and close on the 23rd of each month. Application periods for upcoming Great Start Compensation rounds can be found in the payment amounts section of the program webpage.

This applies only to family child care providers licensed by the state and all providers licensed by a Tribal Nation. Child care centers licensed and certified license-exempt by the state apply for Great Start Compensation funding in the Provider Hub.

First, check your email account’s spam and junk folders to make sure your application link email didn’t end up there. If it did, move your application link email to your inbox so that the link will work.

​If you still cannot find your application link email, you can request a new application link email by following the steps below.

​Steps for requesting a new Compensation Support Payment application link email:

​Click on the following link to request a new Compensation Support Payment application link email: https://edocs.mn.gov/forms/DHS-8070K (NOTE: this link is only active during Compensation Support Payment application periods).

​Once on the above linked webpage, follow the below steps.

• ​Enter your license number and click “lookup”
  • ​Verify that this is your program
  • ​Enter your email address twice and submit
  • ​You will receive a new application link email within a few minutes  
  • ​If you do not receive this email right away, check your spam or junk email folders.

​If you still do not see your new application link email contact Child Care Aware of Minnesota right away at 651-290-9704 or supportfunds@childcareawaremn.org. If you contact Child Care Aware before the application submission deadline, they will be better able to help you.

Email-based application
If you are having trouble submitting your email-based Compensation Support application (state-licensed family child care providers and all providers licensed by a Tribal Nation), use these strategies to troubleshoot:

• ​If the submit button in your application doesn’t work, go back and make sure you answered all the necessary questions and all information is entered in the correct format (look for red text for items that need to be corrected). These issues must be fixed before you can submit your application. 
  • ​Once you’ve successfully submitted your application, you will be redirected to a “Thank You” webpage AND you will receive a confirmation email.
  • ​If you do not receive this confirmation email, your application was NOT submitted. 
• ​Try to submit your application using a different web browser (Google Chrome, Firefox, Microsoft Edge, etc.).
• ​Try to submit your application using a different device. Applications can be submitted from a computer, a smart phone or a tablet.
• ​Try to submit your application with a different internet connection (office, home, cellphone data connection, etc.). 

​If you are still having trouble submitting your Compensation Support application or you have not received your submission confirmation email, please contact Child Care Aware of Minnesota at 651-290-9704 or supportfunds@childcareawaremn.org as soon as possible. 

Provider Hub application
If you are having trouble submitting your Great Start Compensation application in the Provider Hub (state-licensed/-certified child care centers), please reach out to Child Care Aware of Minnesota for assistance (see above).
 

​**In either case, please reach out to Child Care Aware of Minnesota BEFORE the application period closes and allow enough time to receive assistance. Do not wait until the final hour of the application period to submit your application or request help from Child Care Aware of Minnesota.**

Email-based application
If the application period is still open, you can submit another application with corrected information using the same application link. The department only processes the last application submitted by a provider each application period.

Provider Hub application
If the application period is still open, you can edit and resubmit your application. To do this, log into the Provider Hub, navigate to the “Great Start Compensation” section and click “Update Application” on the application you’d like to correct and resubmit. You can then edit your application and resubmit it.

For providers licensed or certified by the state of Minnesota, below are the allowable license/certification states.

• ​In Good Standing
• ​Conditional
• Receivership
• Under Settlement-Active
• ​Under Settlement/Conditional
• Conditional: Under Appeal
• ​Conditional: Subject to Appeal
• ​Conditional: Service/Site Specific 

State statute requires that Compensation Support Payment award amounts be based on the number of full-time equivalent staff who regularly care for children in the program, including sole proprietors (i.e., family child care providers) or independent contractors.

​"Staff who regularly cares for children" is defined as a paid staff person whose job description or responsibilities include interacting with, caring for and supervising children enrolled in the program. More information on the funding formula is available under the “Payment Amounts” section on the Compensation Support program page.

​Providers who provided care during the lookback period AND were paid out during the lookback period for service provided during the lookback period through the Child Care Assistance Program (CCAP), Early Learning Scholarships, or both, or are located in a Child Care Access Equity Area will receive a 10% increase to their Compensation Support Payment for that round. The department will determine eligibility for the 10% increase based on payment records for CCAP and Early Learning Scholarships, as well as physical location information from licensing or certification records.

• See the application timeline table on the Compensation Support Payment program page (under the Compensation Support awards amount heading) for 10% bonus lookback periods applicable to CCAP and Early Learning Scholarships.
• See Section 7 of this FAQ page for more information about Child Care Access Equity Areas. 

Yes, providers who receive Child Care Assistance Program payments are eligible for Compensation Support Payments.

Yes, providers who receive Early Learning Scholarships are eligible for Compensation Support Payments.

Yes. However, providers accepting Great Start Compensation payments must ensure the funds are not used to pay for something that has already been paid for with other federal, state, Tribal or local public funds. Examples of other funding sources may include Tribal grants, forgiven Paycheck Protection Program loans, Child Care Aware Regional Grants, and others.

If you do not wish to participate and receive funding from the Great Start Compensation Support Program, simply do not submit an application.

Eligible providers who wish to share feedback with the department about why they are choosing not to participate in the Great Start Compensation Support Payment Program and receive funds can provide that feedback within their program’s application.

CFDA numbers are only assigned to federal funds, Compensation Support Payments are funded by state dollars. There is no CFDA number for Compensation Support Payment funds.

​The UFARS – used by school districts to report Transition Grant and Compensation Support Payment funds received in 2023 to the Minnesota Department of Education – finance code is 000 and the source code is 369. 

Compensation Support Payment award amounts are calculated based on the number of full-time equivalent (FTE) staff who regularly care for children in the program. The monthly application requires you to list the individuals, both full- and part-time, and their hours worked caring for children during the previous calendar month. Based on that information, the exact FTE amount for each individual and the sum total FTEs for your program will be automatically calculated by the application. 

​Licensed and certified child care centers

• ​Only list paid staff who regularly care for children.
• ​Do not include:
  • ​Volunteers
  • ​Individuals paid to provide occasional enrichment activities for the children. 

​Be prepared to supply documentation that supports the information provided in the application regarding staff and hours worked. The state may request this.

​Licensed family child care providers

• A family child care provider should report their own hours when completing a Compensation Support Payment application. Dual license providers should enter hours for each license holder separately in the application. Providers will be asked to list the hours they worked directly caring for children during the previous calendar month in the application.  
• ​If an adult household member also works in the family child care program, has met licensing qualifications, and regularly cares for children, separately list that individual and the hours they worked directly caring for children in the application.
• ​If the family child care program has a joint license between two people, list the hours spent caring for children for each person separately.
• ​A provider’s child, age 13-17 years, who has met the qualifications to be a designated helper and assists in caring for children in the program, may be included separately in the application.
• ​List any individual who you pay to regularly care for children in your program.
• Do not include in the FTE calculation:
  • ​Individuals paid to provide occasional enrichment activities for the children.
  • ​Individuals, outside the household, who are not paid; they are considered volunteers.
  • ​Any hours worked not directly caring for children.

Be prepared to supply documentation that supports the information provided in the application regarding individuals and hours worked. It may be requested by the state. 

​FTEs are calculated based on the number of hours staff regularly cared for children during the entire previous calendar month.

Yes, the hours for a substitute or temporary staff who directly cared for children may be included in the application.

No, only hours spent caring for children can be included. If a staff member is on paid time off/paid leave and not working, those hours should not be included.

​Yes, for the purpose of Compensation Support Payments, the term early childhood educators includes providers who are licensed or certified to serve school-age children (K-12 education). The department uses the term early childhood educators to elevate the profession and recognize the importance of those in the child care industry.

​Yes, providers who receive Compensation Support Payment funds are required to keep records of their daily child attendance. Providers are required to record the below items for each child.

• ​Child’s first name
• ​Child’s last name
• ​Date
• ​Check-in time
• ​Check-out time

​Providers are not required to have parents, guardians, or trusted adults dropping off and picking up the child sign-in and sign-out children, however it is encouraged to the extent possible. Providers must keep daily attendance records, including the above items, and make those records available to the state upon request.

Eventually, providers will be required to submit enrollment and daily attendance records online to the department as part of the Great Start Compensation Support Payments application process. Providers will not need to submit enrollment and daily attendance records electronically until all providers are in the Provider Hub, mid to late 2025.

An Electronic Enrollment & Attendance feature is being added to the Provider Hub to ensure providers are easily able to collect and submit this data with the monthly application. The functionality is being designed to be flexible and convenient:

• Providers who are currently using or wish to use select Child Care Management Systems (CCMSs) for enrollment and attendance will have streamlined options to report data from the CCMS to the Provider Hub.
• Providers who are not using a CCMS will be able to enter and manage enrollment data and enter daily attendance information directly in the Provider Hub.

The Department of Children, Youth, and Families (DCYF) requires child care providers participating in the Great Start Compensation program to record child enrollment and attendance information to comply with the state law that created this program (Minnesota Statutes 2023, sec. 119B.27, subd. 4). The purpose of requiring providers to record child enrollment and attendance information is to enable the department to determine whether a provider is in compliance with the program’s minimum attendance requirement (see FAQ 4.3 for details). The department established a minimum attendance requirement for Great Start Compensation Support Payment eligibility to ensure that programs provide a minimum level of service in return for state funding, under section 119B.27.  The department places high value on using state funds responsibly to protect against fraud, waste, and abuse and to secure community trust for continued public investment in this program.

​Any information contained in attendance records that could be used to identify a child or family is private data under Minnesota Statutes, section 13.46, subdivision 2, and will not be made available to the public.

The department established a minimum attendance requirement for Great Start Compensation Support Payment eligibility to ensure a minimum level of service was provided in return for state funding. The department places high value on using funds responsibly to secure community trust for continued public investment in this program. Below is the minimum attendance requirement for each provider context. 

• All provider types can only include children they are licensed/certified to care for towards their minimum attendance requirement. Children must be within the age range a provider is licensed or certified to care for.
   
• ​Licensed family child care providers
  • At least 3 children must be in attendance on 5 days during the previous month. Licensed family child care providers cannot include their own children nor foster children to meet this requirement.
  • ​If a licensed family child care provider opened (came into good standing for the first time) within the past 180 calendar days, at least 2 children must be in attendance on 5 days during the previous month. Providers cannot include their own children to meet this requirement.
  • ​If a provider has a B1, B2, or D class family child care license, at least 2 children must be in attendance on 5 days during the previous month. Providers cannot include their own children to meet this requirement. 
     
• ​Certified child care centers
  • At least 3 children must be in attendance on 5 days during the previous month.
  • If a certified child care center opened (came into good standing for the first time) within the past 180 calendar days, at least 2 children must be in attendance on 5 days during the previous month. 
     
• Licensed child care centers
  • ​At least the number of children equivalent to 25% of licensed capacity must be in attendance on 5 days during the previous month.
  • ​If a licensed center’s licensed capacity is 12 or fewer, then at least 3 children must be in attendance on 5 days during the previous month.
  • ​If the licensed center opened (came into good standing for the first time) within the past 180 calendar days, at least the number of children equivalent to 15% of licensed capacity must be in attendance on 5 days during the previous month. 
  • If a licensed center’s licensed capacity is 12 or fewer and has opened within the past 180 calendar days, then at least 2 children must be in attendance on 5 days during the previous month.
     
• ​ Child care providers licensed by a Tribal Nation
  • Licensed family child care providers
    • At least 3 children must be in attendance on 5 days during the previous month. Licensed family child care providers cannot include their own children nor Foster Children to meet this requirement.
    • If a licensed family child care provider opened (came into good standing for the first time) within the past 180 calendar days, at least 2 children must be in attendance on 5 days during the previous month. Providers cannot include their own children to meet this requirement.
  • Licensed child care centers
    • At least the number of children equivalent to 25% of licensed capacity must be in attendance on 5 days during the previous month.
    • If a licensed center’s licensed capacity is 12 or fewer, then at least 3 children must be in attendance on 5 days during the previous month.
    • If the licensed center opened (came into good standing for the first time) within the past 180 calendar days, at least the number of children equivalent to 15% of licensed capacity must be in attendance on 5 days during the previous month. 

Yes, as long as a provider was 1) operating in an approved license/certification state (see FAQ 1.7) for at least five days during the funding period AND 2) met their minimum attendance requirement (see FAQ 4.3) during the funding period, a provider may be closed and still be eligible for that Compensation Support Payment round. 

​Eligible providers must attest in writing to: 

• ​Having been open and serving children during the funding period;
• ​Have met the minimum attendance requirement applicable to their context during the funding period. Please see FAQ 4.3.
• ​Keep accurate and legible records of the following:
  • ​Use of money.
  • Staff employment, compensation, and benefits, which must include time sheets or other records of daily hours worked; documentation of compensation and benefits; documentation of written changes to employees' rate or rates of pay and basis there of as a result of payments received under this section. This applies to licensed child care centers, certified child care centers and family and group family child care homes only if the funds are used for employee compensation or benefits.  
  • Daily attendance records must be completed every day and must include the date, the first and last name of each child in attendance, and the time each child is dropped off at and picked up from the program. To the extent possible, the person dropping off or picking up the child must enter the times.  
• ​Use funds as required according to provider type. Please see FAQ 4.10.
• ​When open and providing services, implement policies in line with guidance and orders from corresponding state, Tribal, and local authorities.
• ​Spend Compensation Support Payment funds received no later than six months after the date the payment was received. 
• Share information with the department about how the funds awarded were used. A process is currently being developed that will provide clear direction to providers about what information they will be asked to share with the department, how they will report the information, and when they will be required to do so. The department will communicate further details as they become available.

Child care providers must agree not to: 

• Use these funds for items that have already been paid for by federal, state, Tribal or local public funds. 

This question only applies to eligible licensed and certified child care centers. Programs that are unable or unwilling to use Compensation Support funds to increase compensation for staff regularly caring for children as required should not apply for Compensation Support Payment funds as they cannot meet allowable use of funds requirements.

Hiring new permanent employees does not count towards providing increased compensation, benefits or premium pay to paid employees regularly caring for children. The state law requires that staff regularly caring for children will receive an increase above their base compensation and/or benefits from the beginning of the first funding period a program is awarded a Compensation Support Payment.

Providers are required to increase compensation for staff who regularly care for children above the provider’s baseline compensation. Please see FAQ 4.14 for details on baseline compensation.

Programs may use the Compensation Support Payment funds for one or more of the following options. Providers accepting these funds must ensure the funds are not used to pay for any allowable use that has already been paid for with other federal, state, Tribal or local funds. 

​Centers: Child care centers licensed under Minnesota Rules, chapter 9503, certified license-exempt child care centers under chapter 245H, and Tribally licensed child care centers must use Compensation Support money received for the following purposes:  

• ​To pay for increases in compensation, benefits, premium pay, or additional federal taxes assessed on the compensation of employees as a result of paying increased compensation or premium pay to all paid employees or independent contractors regularly caring for children.

​Family Child Care: Family and group family child care homes licensed under Minnesota Rules, chapter 9502, and Tribally licensed family child care homes must use money received under this section for any of the following purposes: 

• Paying yourself and/or your helper(s)/employee(s), such as payroll, salaries, or similar compensation; benefits; premium pay; or financial incentives for recruitment and retention of an employee, a sole proprietor, or an independent contractor;
• ​Paying rent, including rent under a lease agreement, or making payments on any mortgage obligation, utilities, facility maintenance or improvements, property taxes, or insurance;
• ​Purchasing or updating equipment, supplies, goods, or services;
• ​Providing mental health supports for children; or
• ​Purchasing training or other professional development. 

The funds for each Compensation Support Payment must be spent within six (6) months of receipt of those funds. For example: If a provider receives a Compensation Support Payment on November 1, 2023, those funds must be spent by May 1, 2024.

​Below is a list of some, but not all, examples of allowable ways to increase compensation under Compensation Support:

• ​Increased hourly wage
• ​Premium/bonus pay  
• ​Month-end bonus
• ​Quarterly bonus (you may save up Compensation Support funds for up to six months from receipt of a payment)
• ​Increased benefits coverage
• ​Additional benefits coverage such as dental or vision care coverage
• ​Increased employer portion of benefit costs
• ​Retirement plan contributions above what has been provided previously 

Yes, employer payroll taxes directly associated with compensation increases can be funded with Compensation Support Payment funds.

Baseline compensation only applies to licensed and certified child care centers. Licensed family child care providers will NOT have baseline compensation.

A provider’s baseline compensation is what they would pay early childhood educators without the Great Start Compensation funding.

The Use of Funds Report is a report all providers that have accepted Great Start Compensation funds will be required to complete. The timeline for implementing the requirement for child care providers to report their use of the Great Start Compensation payments they receive has yet to be confirmed, but it will not be required any earlier than Spring of 2025. The report has not been completely designed but is expected to include questions about how providers have spent their Payment funds (all provider types) and the amount of funds providers have distributed to their early childhood educator employees (licensed and certified child care centers). Additional information about the Use of Funds Report will be shared with providers in the future.

You can answer the application question asking for your highest attendance on a single day by using your highest attendance in a daily session. The department recognizes that it may be difficult for programs with multiple daily sessions to figure out non-duplicated attendance counts between all session, as the same children could attend multiple sessions. 

No, adding sick leave benefits for employees as required by state law starting in January 2024 cannot be counted as increased compensation or benefits under Compensation Support Payment requirements (Laws of MN 2023, ch. 53, art. 12, sec. 1 & 5). Compensation Support Payment funds cannot be used to pay employees using sick leave in accordance with this state law. However, Compensation Support Payment funds can be used to pay out sick leave used above the minimum level required by state law, if that level of sick leave is new or increased.

No, providers cannot pool Compensation Support Payment funds across licensed or certified programs/sites. Compensation Support Payments are awarded to a specific license or certification and those specific dollars must be used at those specific program sites. Compensation Support Payment funds awarded to one program cannot be spent at another program.

Yes, providers can use Compensation Support Payment funds to increase the starting wage/salary of new hires. Providers must document (1) what wage/salary and benefits would have been offered without Compensation Support Payment funds, AND (2) what portion of wage/salary and benefits is covered with Compensation Support Payment funds.

Yes, providers are required by law (Minnesota Statutes 2023, sec. 181.032) to notify employees in writing of any changes to their compensation, which includes compensation increases funded by Compensation Support Payments.

• Great Start Compensation Use of Funds Tool (licensed family child care)
  • Designed for licensed family child care providers to keep records of spending overall on a monthly level​
• Great Start Compensation overall Use of Funds Tool (licensed and certified centers)
  • Designed to keep records of spending overall on a monthly level, which is useful for all provider types
• ​Great Start Compensation educator-level Use of Funds Tool (all provider types)
  • Designed to keep records of spending on an individual educator level on a monthly basis, for providers who employ other educators. 

​Providers can receive Compensation Support Payments through one of two methods: (1) mailed check, the default method of payment, and (2) direct deposit.

NOTE: Direct deposit is strongly encouraged and supports are available to help you set up direct deposit.

Default: Mailed check
Minnesota Management and Budget (a state agency) will mail monthly payments to the authorized agent, center operator, or license holder at the address on file with state licensing. This is the default payment method.

Please note, mailed payments cannot be forwarded by the postal service and will be returned to Minnesota Management and Budget if your address on file is not current, which will delay you receiving your payment. All address changes need to be made by your county licensor (family child care providers), Tribal licensor, or state licensor (child care centers and certified child care centers).

​Mailed check timeline: June 2024 round example

• June 2024 application period: June 10 – 23, 2024
• June 2024 applications processed by the department June 24 – 30, 2024
• June 2024 check payments created and mailed by July 1, 2024
• June 2024 check payments received by providers by July 16, 2024

Direct deposit
Minnesota Management and Budget will transfer monthly payments to provider bank accounts. To set up direct deposit, a provider must (1) register as a supplier with Minnesota Management and Budget, AND (2) provide bank information

Then providers must complete and submit a Supplier Verification Form to connect their supplier information with their Compensation Support Payments information. If a provider registers as a supplier but does not provide bank information, Compensation Support Payments will be paid as checks mailed to the address on file with Minnesota Management and Budget. Full directions for setting up direct deposit and FAQs can be found on the Supplier Verification Form webpage.

​Direct deposit timeline: June 2024 round example

• June 2024 application period: June 10 – 23, 2024
• June 2024 applications processed by the department June 24 – 30, 2024
• June 2024 direct deposit payments initiated by July 1, 2024
• June 2024 direct deposit payments received by providers by July 5, 2024

​

For assistance, please contact Child Care Aware of Minnesota at 651-290-9704 or supportfunds@childcareawaremn.org. Please include your license or certification number in all communications.

Providers should expect to receive mailed checks within 20 calendar days of their award announcement.

Programs can avoid experiencing challenges with checks by registering for direct deposit. See FAQ 5.1 for details.

Providers should contact their state, county, or Tribal licensor as soon as the change occurs and ask their licensor to update their information. Additionally, if a provider is contemplating an operating status change (e.g., moving from school year only to full year operations) that may affect eligibility.

Those with additional questions or who are contemplating other changes that may affect their eligibility for funding should contact Child Care Aware of Minnesota at 651-290-9704 or supportfunds@childcareawaremn.org to determine impacts. 

Providers who move during the funding period remain eligible for the funds as long as they continue to meet eligibility criteria. If you are opening a new licensed or certified program, please contact the department at compensationsupport.dcyf@state.mn.us.

​Providers planning to move should work closely with their state, Tribal, or county licensor to ensure the move does not impact funding eligibility. 

Programs are required to document spending and be prepared to share those records should the department request them. The department will conduct compliance monitoring by utilizing a sample audit approach. Providers selected for an audit must provide the department with documentation related to eligibility and use of funding.

The Internal Revenue Service requires the department to obtain your Social Security number or Federal Employer Identification Number in order to issue a Tax Form 1099-G. The name and number you give must match your name with the IRS. If your name and tax identification number are determined to not be valid due to a fraudulent act, you will not receive Compensation Support Payment funds, you will have to pay back any of the funds you have been paid, and you may be subject to an IRS fine.

Yes, the IRS and Minnesota Department of Revenue considers this funding as income. Providers who receive these funds will be mailed a 1099-G form by January 31 of following year, showing how much was paid to the provider in that year. Providers are encouraged to consult with an accountant or tax expert to fully understand the tax implications of this funding.

If you have not received your 1099-G form by mid-February, you can contact the Minnesota Management and Budget’s 1099-G help line at 651-201-8201 or email W9-1099.MMB@state.mn.us to request a copy. Minnesota Management and Budget can provide a copy of your 1099-G form through secure email, ZIXmail, by request.  

​If providers have questions after receiving their 1099-G form, they can contact Minnesota Management and Budget. First Children’s Finance, a Minnesota-based nonprofit, may be able to provide overall budgeting and financial planning for any tax liability, as well. To contact First Children's Finance, email infoMN@firstchildrensfinance.org or call 1-866-562-6801. 

No, the department will not publish who received funding or the data provided as part of the application.

Data pertaining to providers, including information submitted as part of an application, is classified as licensing data, under which certain data is public or private.  Minn. Stat. § 13.46, subd. 4; Minn. Stat. § 119B.02, subd. 6(a). Examples of private data that cannot be shared with the public are an individual’s Social Security number and data that can potentially identify children, families, or staff in programs.  

Payment data is public under Minnesota Statutes, section 119B.02, subdivision 6(b) only if the payment was made to a licensed child care center or a licensed-exempt child care center, and if the following circumstances are met: 

• The child care center receives payment of more than $100,000 from the Child Care Assistance Program under Chapter 119B in a period of one year or less; OR   
• The commissioner or a county agency has   
  • Disqualified the center from receiving payment for wrongfully obtaining assistance under section 256.98, subdivision 8(c),   
  • Refused or revoked child care authorization, stopped payment, or denied payment under section 119B.13, subdivision 6(d), or   
  • Made a finding of financial misconduct under section 245E.02. 

To the extent that payment data identifies children or families, this data is considered private data: Minn. Stat. §§ 13.46, subd. 2(a) and 13.46, subd. 4.    

If you have data-related inquiries, please email to dhs.datarequest@state.mn.us. 

If there is indication that a provider has failed to meet Compensation Support Payment requirements, they will receive mailed, written notice and have an opportunity to clarify and/or correct any non-compliance. Failure to make the required corrections, and/or indication that a provider provided false or misleading information to the state with regard to the funding requirements may result in discontinuation of future eligibility for funds, recoupment of payments already made, and/or referral to the Office of Inspector General for additional action.

These funds do not constitute a loan and child care providers who comply with Compensation Support Payment requirements will not be required to pay funds back to the department.

Funding recipients found to have violated the terms of the application process or attestation, or who are found to have provided false or misleading information to the department may have prior payments recouped, be deemed ineligible for future funds, and/or be referred to the Office of Inspector General for additional action.

If you are concerned that a Compensation Support Payment recipient is not following the funding requirements, you can submit a report by calling 651-431-3968 or 800-627-9977 or emailing dhs.oig.ccaptips@state.mn.us with “Great Start Compensation Support Payment Complaint” in the subject line. Include as much detail as you can, including:

• ​Child care provider or program name 
• Name of director if it’s a child care center
• ​Address of child care provider or program
• ​If licensed, the license number (which can be found at Licensing Lookup)
• ​The requirement you believe the child care provider may not be following
• A description of the way in which the child care provider is not following the requirement.

​Any tips reported will remain anonymous and details about who submitted the tip will never be shared with the program alleged to be non-compliant. 

No, an audit is not an indication or an accusation that the child care provider has done something wrong. An audit is an eligibility review process done by the department to verify that child care providers are managing their Compensation Support Payment funds in compliance with all rules and regulations.

Compensation Support Payment recipients identified for an audit will receive a Request for Records by email, using the email address on file with state licensing. The provider will have fourteen (14) calendar days to submit records via email, fax, or U.S. Mail.  If the auditor has questions about the records or needs additional information, they will contact the provider via phone or email to discuss the review.

If a provider is selected for an audit, they will be asked to provide documentation. Requested documentation may include, but is not limited to, any or all of the following:

• ​Attendance Records or Affidavit from parent/guardian regarding a child’s attendance
• ​Billing Records and/or Payment Records
• Payroll records or Employee time-cards
• ​Payroll records – prior to receiving Compensation Support Payments and after
• ​Payroll records of bonus or premium pay
• Child Care business financial records 
• ​List of expenses and corresponding receipts 

Child Care Access Equity Areas are geographic areas prioritized for retaining and starting new child care programs. These areas are prioritized because they include higher rates of vulnerable populations. Child care providers in these areas are more likely to be serving children and families that need more supports to thrive.

Child care providers located in Child Care Access Equity Areas are eligible for a 10% increase to their Compensation Support Payment amount. Providers will receive a 10% increase to their monthly payment if one or more of these criteria are met:

• ​They provided care during the lookback period AND were paid out during the lookback period for service provided during the lookback period through the Child Care Assistance Program, and/or 
• They provided care during the lookback period AND were paid out during the lookback period for service provided during the lookback period through the Early Learning Scholarship payment, AND/OR
• They are located in an Access Equity Area. 

Child Care Access Equity Areas are located throughout Minnesota, with roughly half located in the Twin Cities metro area and half in Greater Minnesota. Please follow this link to view a map of where the Access Equity Areas are located: Child Care Access Equity Areas F24 Map.

Child Care Access Equity Areas are identified using U.S. Census data about the people who live there. The areas are based on census tracts, which are geographic areas used by the U.S. Census. The census tracts that the department has designated as Access Equity Areas include higher rates of vulnerable populations. These areas are identified by these measures: 

• Poverty rate
• Homeownership rate
• Median household income
• Unemployment rate
• Number of families with inadequate access to child care, as measured by the Family Access Measure.

The department will update the list of Child Care Access Equity Areas at the start of each state fiscal year (July 1) using updated data on the measures listed above.

Census tracts are relatively small geographic areas used by the U.S. Census to report census information. Census tracts are subdivisions of counties, meaning a county is made up of several census tracts. Census tracts vary in geographic size because they are drawn with a goal of including approximately 4,000 people. For more information, see the U.S. Census Glossary.

Follow this link to view a map of where the Access Equity Areas are located: Child Care Access Equity Areas FY24 Map. You can zoom in on the map to the location of your program to see whether it is included in a Child Care Access Equity Area (shaded blue on the map).

Alternatively, you can use the Census Geocoder to look up your program’s census tract number and find that number in the table to the right of the map to see whether that census tract is an Access Equity Area or not.

No, programs can only use Compensation Support Payment funds to increase compensation for employees who regularly care for children. This includes employees whose position description includes direct care of children AND who provided direct care for children during the funding period for a given round of Compensation Support Payments.

Yes, providers are required by Minnesota law (Minnesota Statutes 2023, sec. 181.032) to notify their employee whenever the employee’s compensation is changed, which includes compensation increases funded by Compensation Support Payments. Please see FAQ 4.20 for more details.

Please see FAQ section 6 for details on how to notify DHS if you believe a provider to be out of compliance with Compensation Support Payment requirements.

Please contact Child Care Aware of Minnesota at 651-290-9704 or supportfunds@childcareawaremn.org with your questions.

You should add compensationsupport.dhs@state.mn.us to your email client safe-sender list. Adding this email address ahead of time will prevent important emails from being filtered to your spam/junk folder or blocked completely. Follow these Constant Contact instructions for adding an email address to your safe-sender list.

Additionally, ensure you have subscribed to important program updates from the Department of Children, Youth and Families by adding your email address to our subscriber list.