Module 2

Contracting with DHS

Only those providers who have both a license and a Child Care Provider Contract with DHS can receive subsidy payments.

By contracting with DHS you are agreeing to:

  • Use the Child Care Electronic Benefit Transfer (EBT) system
  • Keep careful and accurate business records in addition to those records required for your license
  • Ensure information transmitted through the EBT system is accurate so that you are paid correctly
  • Comply with all provisions of your contract

There is no legal way to avoid the responsibility of operating the EBT system and properly maintaining records if you wish to receive DHS subsidy payments.

As a result, all your DHS records, and other documentation, should be kept in an organized and business-like manner.

Otherwise, results could become truly complicated and profits lost due to:

  • Overpayments that must be paid back or
  • Underpayments of funds you should have received
children climbing on playground equipment,  backlit.

Common Statements

Now think about these common statements made by child care providers.

Which of these statements do you think is correct?

Remember, your contract with DHS is a privilege, not a legal right. If you do not keep up with the record keeping requirements, or any other aspect of your contract, you could lose your contract.

As long as you have your license you will be able to provide child care, but you will no longer be able to receive DHS subsidy payments without a contract.

About the Contract

Child Care facility owner studying her contract.

To contract with DHS to receive subsidy payments you should call AFS Child Care Subsidy at (405) 521-3431 or email:

As part of the contracting process the owner or person authorized to sign the contract will need to complete this course and the Final Evaluation that follows.

Pay close attention to this course and you should be able to pass easily.

Before signing the contract, it is important that you read it carefully and understand the provisions of the contract.

Remember: you are legally committing your business to the requirements of the contract.

If you have questions you should get in touch with Adult and Family Services (AFS) Child Care Subsidy.

If your contract request is approved by DHS, a copy of the contract, showing your new contract number, will be sent to you.

You should carefully read the contract again and keep it in a safe and easily accessible location.

Once approved, you are also responsible for the contents of the Child Care Subsidy Payments Provider Handbook. The Provider Handbook spells out DHS policy and what is required of you as a contracted provider.

Child care manager taking notes on information from the Provider Handbook.

Contracts are in effect from the date they are approved by DHS. They cannot be backdated.

The parent will be responsible for paying for all care before your contract is approved.

A Practical Example

Try this example.

You start the contracting process on January 15th.

Jill is eligible for child care subsidy for her son, Jessie. Jessie begins attending your child care center on February 2nd.

Your contract is approved February 18. When are you approved to receive subsidy payments?

child care professional and parent reviewing child care agreement.

When you sign the child care contract you agree to abide by ALL terms of the contract.

Any agreement you ask parents to sign does NOT take the place of the contract between you and DHS.

This means you should never have a parent sign an agreement with you that will conflict in any way with the Child Care Provider Contract.

Once approved, your contract will be renewed automatically for successive one year terms under the same terms and conditions of the original signed contract. However, you may occasionally have to sign a new contract as determined by DHS.

You may also be required to complete training to maintain your contract.

Note: DHS can choose to cancel your contract at any time during the year by notifying you of the decision in writing. Likewise, if you decide you no longer wish to contract with DHS, write to AFS, Child Care Subsidy and ask that your contract be cancelled.

It’s very important for you, as a contracted provider, to maintain your license. If your license is revoked or closed, your contract to receive subsidy payments is cancelled.

You should not ask parents to record attendance on the POS machine after the date your contract is cancelled due to closure or revocation of your license. The POS machine must be returned to the EBT contractor as soon as your contract has been cancelled or you will be charged for the cost of the machine.

Children playing on playground.

Check Your Understanding

Now try a few questions to get you ready for the test at the end of the course.

Which of the following statements is not true?

When you sign the contract with DHS to receive subsidy payments you agree to:


In this module you learned the basics of the DHS contract.

Click the button labeled Oklahoma Child Care EBT System below to continue to the next module.