Agency Transfer Fees????

I think from what you are saying - you are receiving child care benefits from the state, correct? If so, I would call them and tell them what she is trying to pull.

I would imagine a lot of small business owners accountants (including mine) would say they are losing money somewhere, esp this year. I can't go and charge my customers more for something they already agreed to pay a certain price for - how does she think she is getting away with that?

I certainly don't understand this either. It does seem unfair if it was not in the contract.

Would you mind sharing the name of the daycare? I am in the process of divorce and will be needing to make a change in my daycare situation soon.

Hi April,
My first question is did you sign an agreement/contract stating what you would be responsible for paying each month/week? If you did I would think (I have know actual legal knowledge) that the center could not just "change their mind". I also think written notice to everyone is required before rates can be changed along with new agreements/contract stating new rates need to be signed by both parties. I am aslo fairly certain it has to be an across the board rate increases not just to those using assistance programs or that is discrimination. With that being said I think I would 100% challenge paying last years "new charges" with a consult to an attorney.
Also, with most centers there is a "daily" rate that they charge (most people just know the weekly or monthly rate). The state has certain amounts that they will pay daycare centers based on location, services provided etc. Each center knows this amount and they can adjust their own rates as they see fit. If a person is receiving assistance they are usually required to pay the difference in only the daily rate, and only for the days center is open for service, this should have been agreed upon prior to enrollment. Each center is required to provide records that show who is in attendance and on what days. Also, each month when the state sends their checks out to the centers they send written statements saying how much they are sending for each child and it should be kept in that child's personal file. You should ask to see a copy of this each month and keep one for your own records! The center should be keeping these for their income files for taxes each year. You might also start getting receipts (if you don't already) stating when you paid, what amount, and for what dates instead of relying on your checks.
I hope everything works out. Best Wishes to you and your son!

Hi April,

I think I understand what you are trying to explain. I work for a childcare facility. The way we bill parents is that they pay the difference between what we normally charge and what the state pays. So, the amount can be different each month because sometimes there are 20 days in a month, sometimes 22. The state pays by the day. Parents are responsible for paying the difference no matter what. However, I think they need to let you know each month if there is a difference. i would suggest calling your case worker to make sure that everything is the way it is supposed to be. I hope this makes sense.

I agree with the other response that it's confusing and makes little to no sense to any of us.

Bottom line, it is good business pratice to sign contracts and Daycares MUST have one for you to sign. Somewhere in the contract there should be an agreement to how much is to be paid per week/month/day etc. If there is such a contract they cannot charge extra at the end of the year.

Now yes they could "change the contract" to fit in with their new ideas of what they should get paid for, but I'm pretty sure if you don't agree to the amended contract in writing that it's not legal.

I might also suggest talking with a few of the other parents. See if they also got big charges that they weren't expecting. Because quite frankly, legal or not legal one person will find it hard to fix the problem. But if more than one family with the same problem go in, something might happen.

I have my two sons in a day care facility and haven't seen anything like this -- nor am I understanding any of it.

I don't know your set up based on what your wrote, but when we enrolled, we received a statement that says how much it is per child to attend based on a 5 day week, a 4-day week, etc. This is a monthly charge. It includes if the center is closed, if I have to pull my sons out for any reason (they're sick), etc. The monthly amount does not fluctuate. I know what I'm paying each month until one of them moves to a new level/room. There have been a few fees tacked on here and there for extra supplies ($5 tops and only once in a while) but I'm given a heads up prior to that hitting my account.

I also signed an agreement that this is what I would pay, this is what they would provide, etc. It doesn't seem that your provider can adjust fees based on a whim or an accountant's findings when looking at the books. I would fight this for 2008. It's not what you agreed on (or at least as far as I can tell based on your post.) If they want to make a fee change starting Feb 1, great. But that needs to be communicated prior to raising fees.