N.Y. Comp. Codes R. & Regs. tit. 18, § 415.5 – Methods of making payment for child care services.

(a) Each social services district may provide child care services directly or may pay for such services in accordance with the provisions of this section applicable to the particular child care services program.
1. (1) For child care services provided under the New York State Child Care Block Grant Program, payment may be made by one or more of the following methods:
  1. (i) by advance cash payments, cash reimbursements or vouchers to the child's caretaker, or by direct deposit or debit card, and administered electronically, and in accordance with such guidelines as may be set forth by the office, for care provided by an eligible provider and supported by a bill signed by both the child's caretaker and the provider; or
  2. (ii) by a purchase of services contract or letter of intent in accordance with section 405.3 of this Title, or by advance cash payments, cash reimbursements or vouchers to an eligible provider.
2. (2) The provisions in section 159 of the Social Services Law precluding the payment of cash assistance for certain families in receipt of safety net assistance do not apply to the payment of child care services for such families.
3. (3) A social services district must establish at least one method of payment by which payment for child care services arranged by the child's caretaker can be made. A social services district must not establish administrative requirements for payment that impose unnecessary barriers on the caretaker’s choice of an eligible child care provider. Additionally, a child care provider cannot be required to enter into a contract with a social services district in order to provide child care services for a family receiving a child care subsidy.
4. (4) A social services district must establish in written policy timeframes for the submittal by the child care provider and/or subsidy recipient of a bill for and documentation of child care services and for the processing of payment by the social services district. The social services district must notify the child care provider of the billing and payment policies, or, if paying the child’s caretaker directly, the district must notify the caretaker.
(b) [Reserved]
(c) For child care services provided under title XX of the Federal Social Security Act or provided as child protective services or preventive services funded other than under the New York State Child Care Block Grant Program, payment must be made by a purchase of services contract or letter of intent in accordance with section 405.3 of this Title.
(d) Attendance and payment records must be monitored for all providers receiving payment for child care services regardless of the method of payment.