Arizona Child Care Infrastructure Grants: Step-by-Step Guide
 

AZ Child Care Infrastructure Grants: Step-by-Step Guide

Stage 1

Goal: Get a grant agreement

  • Step 1: Watch this video for an overview of the entire grant process.
  • Step 2: Upload documents to Box (your customized Box link is in the notification email):
    • Infrastructure assessment
      • You can submit a document you already have, such as one of the following:
        • Quality First Assessment Report
        • Environmental Ratings Scale Assessment (ECERS, FCCERS, ITERS, etc.)
        • ADHS licensing compliance/violation report
        • Or, complete LISC’s facility self-assessment guide here
        • Review this documentation guide to learn more about what qualifies as an infrastructure assessment 
    • Three years of financials/tax returns (2020, 2021, 2022, if available)
      • For corporations: 1120 or 1120-S tax forms filed with the IRS.
      • For partnerships: 1065 tax forms filed with the IRS.
      • For LLCs or sole-proprietors: 1040 tax forms, including Schedule C and form 8829, filed with the IRS. If you are a child care center, please also submit three years of financial statements (Balance Sheet and Profit & Loss).
      • For nonprofit entities: Either 990 tax forms filed with the IRS, audited financial statements, or internally prepared financial statements.
      • If you have not yet filed your 2022 tax return, please submit 2019 in addition to 2020 and 2021.
      • See page 6 here for more information about acceptable financial documents.
    • Property ownership/landlord consent
      • For demonstration of property ownership, upload your mortgage statement, property tax record, or deed with the provider/applicant's name and corresponding address.
      • For landlord approval, upload a landlord consent letter approving the proposed improvements. Here is a letter template.
        • Or you can upload a copy of your lease that indicates that you have the right to improve the property, is fully executed by both parties, and includes the time frame and renewal terms.  
  • Step 3: Complete budget template with anticipated uses of grant funds.
    • Budget Templates
    • For home-based providers, we can only fund the portion of your renovation project that is for your child care business. Use your tax form 8829 or this time/space calculator to determine the percentage of the use of your home that is for your business. 
      • Time-Space Percentage Overview: Video
    • You can use estimates for items to submit a first draft.
    • Please be sure to review this Eligible/Ineligible list to ensure your project is eligible. This is not an exhaustive list, so please reach out if you are unsure whether or not an expense is eligible. Please note that with the First Things First funds, you must use them to serve children in the 0 to 5 age range. If you serve both children in the 0 to 5 age range, and older, school age children, you can’t use the funds for items that only support school age children. 
    • Also, see this guidance regarding the tax implications of this grant. 
  • Step 4: Reach out to vendors and contractors for quotes, estimates, and purchase orders for anticipated uses of grant funds.
    • See this vendor list. This vendor list is intended to be a resource. Grantees may choose to work with other licensed and insured vendors in Arizona not on this list.
    • Review this guide for how to select a vendor
    • Upload quotes when available
    • For contracts totaling more than $10,000, federal rules require that you seek bids from multiple vendors
    • Please ensure any contractors you work with are licensed in Arizona and insured and comply with all local permitting requirements
  • Step 5: Complete W-9 form via LISC's online system.
    • You will receive a request from LISCPayeeOnboarding@lisc.org
    • Follow these instructions for submitting your W-9 online: PDF
    • Tips for sole proprietors or single member LLCs completing the W-9 form: PDF
  • Step 6: Send your banking information via online request. 
    • You will receive an email from LISCPayeeOnboarding@lisc.org
    • Follow these instructions for submitting your bant account/ACH information: PDF
    • Please note that in certain cases, you may be asked to email a voided check to W9/ACH@lisc.org and/or receive a call from LISC's New York office to verify your account information.

Stage 2

Goal: Sign your grant agreement

  • Step 1: You will receive an email from grants_contracts@lisc.org with your grant agreement. Please review carefully to understand your obligations.
    • Important things to note in your agreement:
  • Step 2: Sign the grant agreement and email it back to azchildcare@lisc.org. 
    • Instructions for how to sign the agreement: PDF
  • Step 3: You will receive a final, full executed grant agreement from grants_contracts@lisc.org. Please save for your records.

Stage 3

Goal: Get and spend grant funds

  • Step 1: Review the instructions for how to request disbursement:
  • Step 2: Once we have a countersigned grant agreement, we will email disbursement instructions and a customized version of your financial report. We'll send a new Box link to upload signed contracts, purchase orders, paid invoices, etc.
  • Step 3: Please email azchildcare@lisc.org when you are ready to submit your first payment request. This email should include:
    • A summary of your request, including the amount you're requesting and the contractors/vendors you're paying.
    • Confirmation that all signed contracts, purchase orders, paid invoices, etc. are uploaded to Box via your customized disbursement link.
    • The "Monthly Project Report" tab of your financial report is completed.
      • Completing the Monthly Project Report: Video
    • (Optional): Completed financial report and invoice tracker tabs for your disbursement. Our team can also help complete this for your review.
  • Step 4: Sign the first page of the financial report and email it back to us.
  • Step 5: Notify LISC within 15 days of large equipment purchases (any single item that costs $5,000 or more) by completing the equipment form:

Stage 4

Goal: Close out your project and ensure compliance

  • Step 1: Watch this video for an overview of the project closeout process.
  • Step 2: If you are a family child care home or small group home that received an advance, you must send us receipts for your purchases within 15 days of receiving funds. 
    • Upload your receipts to your unique Box link for disbursements. If you need the link, please email us.
    • Email azchildcare@lisc.org when you have uploaded all receipts.
  • Step 3: Confirm you’ve sought multiple quotes for any contracts/purchases over $10,000.
    • As a reminder, for contracts/purchases over $10,000, federal rules require that you seek bids/quotes/estimates from multiple vendors to ensure a competitive process. 
    • After reviewing your file, we will email you individually if our records indicate that you only collected 1 estimate for one or more contracts. 
    • Please reply to that email with an update on your bid status. This email should include: 
      • An update on the number of estimates received 
      • Your reasoning for selecting your chosen vendor
    • If you reached out to other vendors/contractors but did not get a response, please make a note of this in your records. This satisfies the multiple quote requirement.
  • Step 4: Ensure you have completed the equipment form for each single item you have purchased that costs $5,000 or more.
  • Step 5: Submit a signed Property Statement.
    • Download a copy of the Property Statement and fill in the information below. Note: you do not need a Box account to access this.
    • Fill in your provider name and PA #.
    • For (a) – 
      • If you used grant funds to purchase an item of equipment with a value more than $5,000, please check “Yes”.
      • If you did not make any large purchases, please check “No” and skip the next step.
    • Please fill out the chart with the information about the items that you purchased with a value more than $5,000.
      • This information is similar to what you submitted in the equipment form, so please let us know if you need that information sent to you.
    • Enter your title and sign and date the form. 
    • If you received more than one grant, please complete a separate Property Statement for each site that received funding.
    • Email your Property Statement(s) to azchildcare@lisc.org.  
  • Step 6: Complete the final closeout survey. 
    • If you received more than one grant, please complete a separate survey for each site that received funding. 
    • Your input will help us share how these grants impacted the child care community, better support providers in the future, and show the need for future grant funding.
    • Your survey responses will be kept confidential.
  • Step 7: Share the impact of your grant. 
    • Record a short video testimonial about the impact of your grant! We’re collecting videos from grantees about the changes made possible through the grant program and the need for continued funding for Arizona’s child care providers. 
    • Submit your amazing before-and-after photos and/or videos. 
    • Please note: by submitting photos and/or videos, you are granting LISC permission to use these in publications and other communications locally and nationally.