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NOTICE: This amended Order of License Revocation supersedes the original Order of License Revocation dated May 20, 2026. This document is amended to clarify language regarding the disqualification of an individual affiliated with your program, and add an additional basis for the revocation (exclusion from a DCYF-administered program). This amended order does not change the effective date or provide additional rights. July 29, 2026 ISSUED VIA PROVIDER HUB Fahad Mahdi, Authorized Agent Perfect Balance Child Care Inc. 2850 Cedar Avenue South, Unit 210 Minneapolis, MN 55407 License Number 1065946 (Child Care) AMENDED ORDER OF LICENSE REVOCATION Dear Fahad Mahdi: The Department of Children, Youth, and Families (DCYF) is revoking your license to provide child care services 3616 12th Avenue South, Minneapolis, Minnesota . This revocation is based on the disqualification of a controlling individual and the program and controlling individuals’ exclusion from the Child Care Assistance Program, DCYF-administered program. Details of our findings are provided below. Our next steps and your options are also detailed. The revocation is already in effect, pursuant to the previously issued Order of License Revocation REASON FOR LICENSE REVOCATION 1. Disqualification of a controlling individual On January 9, 2026, DHS notified you that a controlling individual (C1) had a disqualification and ordered you to immediately remove C1 from providing services. C1 did not request reconsideration, so C1’s disqualification is final. If you appeal this revocation order, the issue of whether C1 poses a risk of harm to children served by the program will not be reviewed as a part of the contested case hearing. Legal Authority: Minnesota Statutes, sections 142B.18, subdivision 4(a)(2). 2. Controlling individuals and Perfect Balance Child Care LLC excluded from DCYF administered program C1 and C2 are a controlling individuals of your program. On January 28, 2025, the Department of Human Services issued to C1, C2, and Perfect Balance Child Care LLC the following notices: a Child Care Assistance Notice of Overpayment, as Supplemental Child Care Assistance Notice of Overpayment, as well as a notice of Administrative Disqualification and Notice of Refusal to Pay. The notice of Administrative Disqualification and Notice of Refusal to Pay indicated that the License Holder, C1 and C2 were no longer authorized to receive Child Care Assistance Program payments in the State of Minnesota, effective February 27, 2025. In response, Perfect Balance Child Care LLC, C1, and C2 filed an appeal and a fair hearing was held on the matter. On October 29, 2025, DCYF issued a Decision of State Agency on Appeal affirming that Perfect Balance Child Care LLC, C1, and C2 committed an intentional program violation and were correctly disqualified from the Child Care Assistance Program for three years. On June 4, 2026, after a request for reconsideration by DCYF to correct the amount of the overpayment amount, DCYF issued an Order again affirming the determination that Perfect Balance Child Care LLC, C1, and C2 committed an intentional program violation. As such, Perfect Balance Child Care LLC, C1, and C2 were disqualified from the Child Care Assistance Program for a period of three years. Based on this determination, Perfect Balance Child Care LLC, C1, and C2 are prohibited from being licensed during this period of exclusion. Legal Authority: Minnesota Statutes, sections 142A.12, subdivision 1; and 142B.18, subdivision 4(a)(4). YOUR RIGHT TO APPEAL You have the right to appeal the revocation. You have already appealed the original Order of License Revocation dated May 20, 2026, so you do not need to submit a new appeal request. Your case will be scheduled for a contested case hearing in front of an Administrative Law Judge. Following this hearing, the Commissioner of DCYF will issue a final order. Following this hearing, the Commissioner of DCYF will issue a final order. If the order is affirmed by the Commissioner following a hearing, DCYF is prohibited from issuing you and the controlling individuals a license for five years. In addition, any additional licenses held by you or the other controlling individuals shall also be revoked. Legal representation at the contested case hearing: You do not need a lawyer to appeal. However, a lawyer can help you with your appeal. The state or county will not get you a lawyer and will not pay for a lawyer. If you cannot afford a lawyer, you may be able to get free legal advice or help with your appeal. To find out if free help is available, contact: Volunteer Lawyers Network at 612-752-6677; Central Minnesota Legal Services at 612-332-8151; Southern Minnesota Legal Services at 651-222-4731; or go to www.lawhelpmn.org to find a local legal services program that may be able to help you. You can also find information on contested cases from the Office of Administrative Hearings website at https://mn.gov/oah/self-help. Click on Administrative Law Overview, then click on Administrative Law Contested Case Hearing Guide for a list of frequently asked questions. Operating the program pending the outcome of the appeal: If you file an appeal within the timeframes described above, you may continue to operate pending the outcome of your appeal. If you continue to operate, you must do so in full compliance with all licensing laws and rules. Failure to follow a law or rule that may impact the health or safety of children served by your program could result in the immediate suspension of your license. Posting of this licensing action You are required to place this Order of License Revocation in a place that is clearly noticeable to the people receiving services and all visitors to the facility for two years, even if you appeal. Legal authority for this licensing action · This action is taken under Minnesota Statutes, section 142B.18, subdivision 4, which describes under which conditions DCYF may revoke a license. · The timeline to appeal a revocation order is provided in Minnesota Statutes, section 142B.18, subdivision 4(b). · “Controlling individual” is defined under Minnesota Statutes, section 142B.01, subdivision 8. · When a revocation of a license is based on a disqualification for which reconsideration was timely requested and which was not set aside, the scope of the contested case hearing for the revocation shall also include the disqualification and set aside under Minnesota Statutes, section 142B.20, subdivision 3, paragraph (a). · When a revocation of a license is based on a disqualification that cannot be set aside, the scope of the contested case hearing for the revocation shall not include whether C1 poses a risk of harm to persons serve by the program. Minnesota Statutes, section 245C.24, subdivision 2(a). · When a revocation of a license is based on a disqualification for which reconsideration was timely requested and which was not set aside, the scope of the contested case hearing for the denial shall also include the risk of harm review under Minnesota Statutes, section 142B.20, subdivision 3, paragraph (g). · Minnesota Statutes, section 245C.29, subdivision 2 states that a disqualification is final if the commissioner or court has issued a final decision, the individual did not request reconsideration on the basis the disqualification was incorrect, or the individual did not timely request a hearing after being given the right to do so. · Minnesota Statutes, section 142A.12 defines which programs administered by DCYF are included in the exclusion provision, and further defines “excluded,” “individual,” and “provider.” · License holders have a right to appeal licensing actions and request a contested case hearing, under Minnesota Statutes, chapter 14 and Minnesota Rules, parts 1400.8505 to 1400.8612. · The requirement to post this order in a clearly visible location is required under Minnesota Statutes, section 142B.18, subdivision 6. · If a license holder files a timely appeal of a revocation order, the license holder may continue to operate the program pending a final order of the appeal under Minnesota Statutes, section 142B.18, subdivision 1(b). · Under Minnesota Statutes, section 142B.10, subdivision 14, paragraph (d), clause (3), the commissioner shall not issue or reissue a license if the applicant, license holder, or controlling individual has had a license issued under this chapter revoked within the past five years. · Under Minnesota Statutes, section 142B.10, subdivision 14, paragraph (d), clause (4), when a license issued under this chapter is revoked, the license holder and controlling individuals may not hold any license under chapter 142B for five years following the revocation, and other licenses held by the applicant, license holder, or controlling individual shall also be revoked. Questions If you have any further questions regarding this matter, you may contact Donna Gainor, Unit Supervisor, at 651-431-6529. Sincerely,
Kimberly Sommers, Unit Manager Licensing Division Office of Inspector General
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