Daycares to DCCA: Pay up

When supervision of the daycare centers in the CNMI was transferred from the Public School System to the Department of Community and Cultural Affairs in January, one of the conditions was for DCCA to pay the daycare centers promptly.

That promise, however, has not been kept, with DCCA now behind two months in disbursing payments to the islands’ daycare centers.

That delay in the receipt of payments has prompted a number of daycares in the CNMI to arrive at a critical decision: They will shut their doors to recipients of childcare certificates until they receive the payments owed them.

In a meeting held yesterday afternoon, 16 daycare centers agreed to refuse admittance to holders of childcare certificates starting April 7 if they are not paid by April 4.

According to Masina Leuta, president of CNMI Daycare Association, when DCCA was established as the lead agency for childcare providers, the association provided DCCA with a list of concerns, on top of which was the need for payments to be processed quickly, in the same manner as the Public School System had performed.

Leuta said that DCCA had promised them that it would “aggressively pursue” payment and distribute funds to childcare providers with no delay.

“Events have caused us to question that commitment because it has already been two months and we have seen nothing,” Leuta said.

In a letter to DCCA acting Secretary Melvin Faisao, at least 16 daycares centers expressed their concerns about the absence of compensation.

He said that DCCA had promised them that the February payments would be distributed by March 28.

“We awaited this distribution but were informed that payments were mailed via U.S. mail. DCCA said that they would be responsible for receiving and distributing these payments. Subsequent to this communication, we were informed that the Treasury Department would not release payment to DCCA and that all funds would be distributed via U.S. mail. This is unacceptable and contrary to the pledges by you [Faisao] and your staff,” Leuta stated in the letter.

According to Tina Alverio of Smart Start Nurturing Center, she spoke with a “source” who told her that none of the daycares are in the Treasury system.

“If we’re not in the system, we don’t get paid,” she said.

Faisao said that a new requirement implemented for childcare providers to receive payments is the submission of their 10-40.

“We’re just following our findings during the transition, as well as the audit recommendation,” Faisao said.

He added that during a meeting with Finance Secretary Eloy Inos, childcare providers were told that they must have a tax identification number.

“When we started to do this, they were acting like they never did this at the PSS,” Faisao said.

Leuta said that some of the daycare centers were never told of the new requirement until they started raising questions about their payments.

“And even so, the filing of our 10-40 has nothing to do with us not getting paid. Those services were provided,” said one daycare owner.

Alverio said that “if they want our business—because daycare centers are businesses—10-40s and TIN numbers are at the government’s disposal if they should need them.

“We’re businesses, and we have to file,” Leuta said.

Leuta, who owns Little Toddler Daycare, said he no longer accepts recipients of child care certificates.

“It’s really difficult to do this, to turn children away. It’s not their fault. But we have to take a stand,” he said.

Leuta said he has a few recipients of child care certificates in his daycare but he has issued a notice letting them know that he may no longer accept them if the government does not cough up the dough.

Sixteen daycare centers—Little Toddler Daycare, Smart Start Nurturing Center, Seventh Day Adventist Development Center, Green Meadow Daycare, REQ Day & Night Childcare Center, Golden Harvest Daycare, Sunrise Daycare Center, Pacific Knight Childcare Preschool Center, Children’s World Daycare, Mom’s Day Care, Lil’ Darlings Daycare, Smart Start Nurturing Center, Little Angel’s Daycare Center, Gospel Light Day Care, Sister Remedios Day Care, and Little Toddler Daycare—have vowed to close their doors to recipients of child care certificates if they are not paid.

DCCA was officially made the lead agency for the federally funded CNMI childcare program in January 2008.

The Childcare Development Program was under PSS for the past 15 years before it was turned over DCCA.

The childcare program receives approximately $1.7 million a year from the U.S. Child Care and Development Block Grant Program.