Page 24 - Child Care Resource Center
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Child Care Resource Center, Inc. Notes to Financial Statements
Note 11 – Commitments and Contingencies (continued)
COVID-19 – In March 2020, the World Health Organization declared coronavirus COVID-19 a global pandemic. This contagious disease outbreak has continued to spread and has adversely affected workforces, economies, and financial markets globally, potentially leading to economic volatility. It has also disrupted the normal operations of many businesses including CCRC’s. Management has been closely monitoring the impact of COVID-19 on CCRC’s operations, including the impact on CCRC’s employees. It is impossible to predict all effects and the ultimate impact of the COVID-19 pandemic, as the situation is rapidly evolving. The duration and intensity and resulting disruption to operations are uncertain but may influence governmental allocations and negatively impact collections of receivables. Although the State of California mandated work-from-home requirements for each county for various lengths of time, the State deemed child care to be an essential activity, especially to care for children of other essential workers. Employees at organizations providing support services to child care providers and families were deemed to be essential workers. As a result, CCRC has remained open throughout the pandemic to support both families and child care providers.
In April 2020, the State of California approved Senate Bill 89 that included an apportionment of $50 million for Resource and Referral programs to aid in the purchasing of cleaning supplies and personal protective equipment for child care providers that remained open during the pandemic or would be reopening. CCRC received approximately $5.0 million, which was used to support and pass through supplies to these child care providers. CCRC passed through approximately $1.4 and $3.6 million to providers for the years ending June 30, 2021 and 2020, respectively.
In September 2020, the State of California approved Senate Bill 820 that included an apportionment of approximately $63 million that was funded through Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide one-time awards to provide assistance to child care providers in the case of decreased enrollment or closures and provide child care assistance to essential workers responding to the pandemic. Additionally, in April 2021, the State of California approved Assembly Bill 82 that included an apportionment of $244 million that was funded through the Coronavirus Response and Relief Supplemental Appropriation (CRRSA) Act, which provided a one-time stipend to providers of $525 per child enrolled in a subsidized child care or state preschool programs. Under these two pieces of legislation, CCRC was awarded approximately $22.8 million and expended approximately $22.7 million for the year ended June 30, 2021.
In October 2020, CCRC received approximately $9.0 million of Coronavirus Relief Fund awards under the CARES Act that originated from the City and County of Los Angeles and was passed through to CCRC from the Child Care Alliance of Los Angeles to provide child care voucher services for low-income families and essential workers impacted by the pandemic. CCRC expended approximately $7.3 million under this program for the year ended June 30, 2021.
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