A second report released last week by the non-partisan Office of the Legislative Auditor (OLA) found that the Minnesota Department of Human Services’ “program integrity controls are insufficient to effectively prevent, detect, and investigate fraud” in the state’s Child Care Assistance Program (CCAP). In March, the OLA released its first report on the issue, which found “pervasive” fraud in the program and confirmed that millions of dollars in government payments went to fraudulent child care centers. After the release of the report, DHS Inspector General Carolyn Ham (pictured, left) was placed on “investigate leave.” The OLA’s second report, released Wednesday, focused more specifically on the “internal controls” in place within DHS to prevent fraud. The 44-page report produced five key findings, including: DHS and county agencies did not sufficiently leverage independent, external data sources to verifying recipient eligibility for CCAP. DHS had weak processes to validate that CCAP provider billings aligned with actual child care provided. Among other functions, MEC² (the payment system for CCAP) was developed to accurately process provider billings and payments; however, MEC² lacked some key controls to identify errors to inhibit, track, and recover improper payments. DHS did not implement sufficient program integrity controls for licensing…
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