Child Care Services Guide - C-700: Child Care Local Matching Funds Encumbrance and Budget Setup

C-701: General Information

Workforce Development Boards (Boards) must be aware of the following regarding encumbrance of federal matching funds:

  • For individual certified pledge agreements, the Texas Workforce Commission (TWC) encumbers and Boards can draw the federal match for the individual certified pledge agreement approximately one week after both of the following have occurred:
  • For individual donated and transferred pledge agreements, TWC encumbers and Boards can draw funds for individual pledge agreements approximately one week after all of the following have occurred:

For example, if a Board has a $50,000 donation/transfer agreement—with remittance dates of January 2 for $20,000 and June 2 for the remaining $30,000—and the Commission has accepted the associated pledge, the Board will have access to draw the federal and local funds for the $20,000 approximately one week after the $20,000 is received by TWC, and the TWC contract or amendment is fully executed.  The Board will then have access to the $30,000 in local funds and its respective federal share approximately one week after the $30,000 donation/transfer is received by TWC, and the TWC contract or amendment is fully executed. 

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C-702: Local Match Budgets in TWIST

Workforce Development Boards (Boards) must create budgets in The Workforce Information System of Texas (TWIST) Child Care Claims and Allocations website for the following:

  • Donation and transfer budgets—Boards receive the total federal and local amounts because “cash” is remitted to the Texas Workforce Commission (TWC).
  • Certification budgets—Boards are reimbursed only the federal share.

Note: Boards cannot draw cash for donations and transfers until TWC receives the local share of the donation or transfer of funds.

Boards must ensure that:

  • Expenditures of local and matched federal funds follow TWC policies for the allocated Child Care and Development Fund funds by submitting local contributor amendments as needed
  • Budgets in the TWIST Child Care Claims and Allocations website do not exceed the workforce area’s allocated funds

Boards must not create budgets in the TWIST Child Care Claims and Allocations website until after the Commission has approved the pledge agreement.

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C-703: Common Local Match Subcontract Numbers in TWIST

When creating budgets in the The Workforce Information System of Texas (TWIST) Child Care Claims and Allocations website, Workforce Development Boards (Boards) may use the ten-digit smart code system, XXXXCCMXXX, when indicating the subcontract number, in which:

  • The first seven digits match the first seven digits of the respective Texas Workforce Commission (TWC) contract, to indicate Board number, year, and the CCM contract alpha.
  • The eighth digit uses an alpha “C,” “T,” or “D” to indicate the match type as certification, transfer, or donation.
  • The last two digits are determined by the Board.

For example, subcontract 0113CCM01 could be used by Board 01 to identify the first subcontract that it funded under TWC contract #013CCM000.  Similarly, subcontract #2813CCM05 could be used by Board 28 to identify the fifth subcontract that it funded under TWC contract #2813CCM000.

This system facilitates the tracking of funds by TWC grant award contract.

Boards may contact ccm.agreements@twc.state.tx.us for further assistance with technical issues in setting up budgets in the TWIST Child Care Claims and Allocations website. 

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Part A - Definitions

Part H - Consumer Education and Child Care Quality Activities

Part J - Appendix