ACF-696 Financial Reporting
Quarterly reports are due January 31, April 30, July 31, and October 31.
All state grantees are required to complete and submit the ACF-696 Financial Report on a quarterly basis for each fiscal year grant award until all funds are expended.  Since CCDF funds from a given grant award may be available for use in more than one fiscal year, Lead Agencies will likely report on multiple grant awards simultaneously. Financial staff are encouraged to coordinate with the CCDF Administrator and refer to the CCDF Plan while preparing the narrative.
State grantees report grant award expenditures from each of the three CCDF component funding streams on the ACF-696.  As a reminder, these funding streams are as follows:
- Discretionary funds are authorized by the CCDBG Act. Discretionary funds are 100 percent federal funds and include targeted quality funds. States may transfer up to 30 percent of their Temporary Assistance for Needy Families grants to the CCDF budget, and these funds are treated as discretionary CCDF funds.
- Mandatory funds are appropriated under section 418(a)(3) of the Social Security Act. Mandatory funds are 100 percent federal funds.
- Matching funds are the remaining amount appropriated under section 418(a)(3) of the Social Security Act after mandatory funds are allotted. In order to receive the full allotment of matching funds for a fiscal year, each state must expend its maintenance of effort (MOE) requirement and obligate all mandatory funds. State expenditures in excess of the MOE requirement are matched at the Federal Medical Assistance Percentages.
- States may count private donated funds and public pre-kindergarten expenditures as matching funds. However, in any fiscal year each state is limited to using public pre-kindergarten funds for up to 20 percent of the funds serving as MOE and up to 30 percent of the state’s share of matching funds.
Maintenance of effort is a federal mandate that each state will spend a certain minimum amount of its own money (that had existed in a base period) to help eligible clients in ways that are consistent with the program involved. Each state’s MOE level is based on the federal share of its funding for the now-repealed AFDC-linked child care programs. The share is based on federal funds received in FY 1994, FY 1995, or on an average of funds received in FY 1992–1994, whichever is greater.
Lead Agencies must follow applicable obligation and liquidation periods when expending and accounting for CCDF grant funds. In general, an obligation is an action that commits the funds; for example, through issuance of a voucher or certificate to a family or through a contract or subgrant for purchase of services. Liquidation generally means the payment of funds to a third party, such as a child care provider, as a result of an obligation. 
 Child Care and Development Fund, 45 C.F.R. § 98.65(g) (2016).
 The term state, as used in this document, generally includes Territories except when specifically referring to CCDF mandatory or matching funds. Territories do not receive mandatory or matching funds.
 CCDBG Act of 2014 658J(c); Child Care and Development Fund, 45 C.F.R. §§ 98.2, 98.60(d) (2016).