Inspector general functions, audits and fraud investigations will move to DCYF in June; lawmakers press for more detail

The Department of Children, Youth and Families will assume Office of Inspector General functions from the Department of Human Services in June, Commissioner Tiki Brown told the House Children and Families Committee, including program integrity work on childcare assistance (CCAP), Great Start compensation payments, MFIP and SNAP recipient investigations.

Commissioner Brown said the Office of Inspector General investigates suspected fraud, abuse and error using data analysis, tips, audits and referrals to law enforcement such as the Bureau of Criminal Apprehension and county agencies. She said administrative remedies can include warnings, stipulated provider agreements, monetary recoveries, fines, payment withholds, suspensions and terminations.

“Fraud against public programs is unacceptable. It's not a victimless crime and it harms the same people that we are trying to help with these services,” Brown told the committee.

Brown described the OIG’s child-care-specific tools: the Early and Often team that provides technical assistance to new providers; random, no-notice audits of licensed child care centers that receive grants; a fraud-prevention investigation program (FPI) that funds investigator positions in counties and participating tribal nations; and a data-and-analytics office that analyzes billing and benefit data to spot outliers and concerning patterns.

The committee pressed agency officials about recent reporting of active investigations and large numbers of licensing violations at specific providers. Brown said the investigative functions remain at DHS for the moment and will transfer intact; she said the new inspector general begins the next day and will coordinate a seamless transfer.

Lawmakers asked how and when payments would be suspended for suspected fraud; Brown said specifics on payment-stopping mechanics are ordinarily handled by inspector-general staff and the Department of Human Services and were not part of her prepared remarks, but she committed to follow up.

Committee members also discussed the role of referrals: Brown said OIG refers potential criminal cases to the BCA and to county prosecutors when appropriate. Jennifer Summerfeld, government relations director for DCYF, told the committee the agency is preparing a policy proposal to increase transparency for Great Start compensation payments; she said the agency has so far followed CCAP data-release rules and that some family providers resisted public disclosure of payments.

The committee requested additional data on the number of investigations, referrals to law enforcement and the outcomes or closures of cases; Brown said DHS could provide those figures and DCYF would coordinate with the incoming inspector general.