FSD 32 - Day Care Assistance

Introduction

In recognition of the high costs of daycare at many missions, for which the Post Living Allowance does not provide compensation, this directive provides an allowance to assist single or working parents with the costs of enrolling children in accredited daycare or day-nursery institutions, which are in excess of costs for similar facilities in Ottawa. (For the purposes of this directive, the terms daycare and day-nursery are synonymous.)

Directive 32

Coverage

32.01 This directive provides assistance to employees at missions who are single parents or whose spouse or common-law partner is working at mission for:

Guideline

The number of periods in a given month will vary based on the number of working days at the post in that given month. The appendix to this directive provides a step by step process and example to follow when calculating the daycare allowance.

Conditions

32.02 Employees who qualify for day care support under Section 32.01 may claim an allowance to compensate for daycare costs in excess of average costs in Ottawa (the deductible) where:

Instructions

1. The three deductible amounts, established as $1,447 per month for infants in daycare, $1,241 for toddlers in daycare and $935 per month for preschool aged children, effective April 1, 2009, represent an average of daycare costs in 2009 at institutions in Ottawa. The Deputy Minister of Foreign Affairs, on the recommendation of the appropriate foreign service interdepartmental co-ordinating committee, has been authorized to adjust these deductibles on April 1st of each year, to reflect rates/costs in effect for that calendar year.

2. The provisions of this directive apply where the spouse or common-law partner is working full days or half days outside the home.

3. Where both parents are working but one is working from home, a day care allowance will be authorized upon certification satisfactory to the deputy head that the parent working from home is engaged in work that precludes providing care for the daycare aged dependant(s), for at least as long as the day care period (i.e. half day or full day), and that there are no other care-givers in the home.

4. No assistance is provided in cases where nannies or live-in care-givers are used.

5. When there is no space in a licensed daycare centre, the employee may have the option of sending their child to an outside licensed private-home daycare. Private-home day care, also referred to as home-based child care, is child care that is provided in a private residence other than the home of the child or children.

Representative Daycare Ceiling

32.03 Where institutional daycare is available at a mission, and where employees qualify for daycare support, Missions will set a representative daycare ceiling, to reflect the average cost of accredited daycare facilities, typical of those used by Canadian parents at the mission.

Instruction

Annually on April 1^st, Missions shall advise the deputy head of the recommended ceilings for daycare facilities, which is to reflect the average of three (where possible) typical accredited daycare institutions used by Canadian or other expatriates, for that calendar year.

Daycare Allowance

32.04 Employees who qualify for daycare support under Section 32.01, with children enrolled in daycare programs, may claim a monthly allowance for each child equivalent to the lesser of:

minus the corresponding deductible for infants, toddlers or preschool-aged children, as applicable, in accordance with Section 32.01.

Instructions

1. The Deputy Minister of Foreign Affairs, on the recommendation of the appropriate foreign service interdepartmental co-ordinating committee, has been authorized to adjust the maximum amount in Section 32.04(c) on April 1^st of each year, to reflect three times the average of costs/rates in effect for daycare at institutions in Ottawa for that calendar year.

2. To facilitate administration, assistance is provided as an allowance, which may be subject to verification. Employees are required to demonstrate that the allowance was spent for the purpose for which it was intended.

3. Once the representative daycare ceiling has been approved by the deputy head, employees may submit a proposal for daycare assistance to Mission administration. On approval, Missions are authorized to issue monthly allowances to the employee for daycare assistance for the coming year, commencing September 1.

4. Prior to obtaining the allowance for the next period, employees are required to submit, for retention by Mission administration, evidence that the child was enrolled in the daycare program for a sufficient period of time to justify the allowance. If this is not the case, employees will be required to refund an amount of the allowance in proportion to the period the child was not enrolled.

5. The allowance is intended to assist with daycare costs for which the employee is responsible. For example, if the employee is obliged to pay by the month, and the child is absent due to illness for several days, the employee would not be penalized. But if payment is by the day, and the child was absent for a period of one or more days, the allowance for the following month should be reduced accordingly.

6. An allowance shall normally be issued monthly, unless a longer payment period is standard. In no case, however, shall the payment period exceed six (6) months.

7. Proposals for assistance in excess of the prescribed amounts for daycare, due to exceptional circumstances, may be considered by the appropriate foreign service interdepartmental co-ordinating committee.

8. The costs of home dependant care, after school dependant care, or babysitting are not eligible for assistance under the provisions of this directive.

9. Transportation to and from the daycare or educational institution is the responsibility of the parent(s). No financial support for transportation will be provided under this directive.

10. When guaranteeing a space within a licensed daycare institution or a home-based daycare facility, an employee may be subject to a non-refundable registration fee. When supported by appropriate receipts or documentation showing such payment, a registration fee up to the cost of $250 will be reimbursed once per calendar year per child to employees who qualify for the daycare allowance under Section 32.01.

In contrast, non-refundable application fees, where the employee has applied to ensure the dependent child's registration in a daycare centre are the responsibility of the employee and will not be reimbursed.

Guidelines

1. Assistance is provided for institutional daycare, i.e., locally accredited organizations with their own facilities and professionally certified staff. Missions should be guided by the Ontario Regulations for Day Nurseries, a summary of which will be sent, on request, to all Missions. It is recognized that local standards will be different. These Ontario regulations are only provided as a guideline as to what constitutes an acceptable institution for assistance under this directive.

2. Employees are responsible for choosing appropriate daycare facilities meeting the required standards, for all administrative arrangements, and for providing full particulars, including schedules of fees, to Mission administration.

Appendix - Daycare Allowance - Pro-Rating Reference and Step by Step Guide

Effective April 1, 2009

Where employees use less than the total number of half-day periods within the given month, both the deductible and mission ceiling will be prorated based on the number of periods the child attends, in a given month.

Formula for Calculating Allowances

1. Determine total number of periods in the given month.

2. Determine the number of periods used in the month.

3. Divide the number of periods in a given month by the number of periods used.

4. Take the result (percentage) and apply it to the mission ceiling.

5. Apply the same percentage to the deductible.

6. The daycare allowance corresponds to the difference between the prorated deductible and the amount paid by the employee or the prorated monthly ceiling, whichever is the lessor.

Example - Daycare Allowance - Pro-Rating Reference

Example 1 - Where the amount claimed does not exceed the prorated mission ceiling.

In the month of June 2009, an employee sends their toddler to daycare Monday mornings, all-day on Tuesdays, and for the afternoon on Wednesdays.

Data

• Total number of periods in June 2009, at mission, is 44
• Number of periods used is 19
• Actual cost of daycare paid by employee for June (hypothetical): $750
• Deductible is $1,241 per month for toddlers
• Mission ceiling is $2000

Example 2 - Where the amount claimed exceeds the prorated mission ceiling.

In the month of June 2009, an employee sends their toddler to daycare Monday mornings, all-day on Tuesdays, and for the afternoon on Wednesdays.

Data

• Total number of periods in June 2009, at mission, is 44
• Number of periods used is 19
• Actual cost of daycare paid by employee for June (hypothetical): $900
• Deductible is $1,241 per month for toddlers
• Mission ceiling is $2000