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Department of Early Education and Care

November 25, 2014 · Read the full official report (PDF) ↗

Published November 25, 2014 Audit covers July 1, 2011 – June 30, 2013 Under Suzanne M. Bump · 2011–2023

In plain English
The audit found major problems at the Department of Early Education and Care: its childcare waitlist was inflated, some payments may have been improper, and oversight of child transportation was weak.
source
“EEC did not provide adequate oversight for drivers, monitors, and vehicles used to transport children.”
Read the plain-English breakdown
What is this?

This is a Massachusetts State Auditor performance audit of the Department of Early Education and Care, covering July 1, 2011 through June 30, 2013.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2011 through June 30, 2013.”
Why was it audited?

State law required the Auditor to examine EEC, including vendor payments, transportation rules, and the childcare waitlist.

“The objectives of the audit were to (1) evaluate the vendor payment process, (2) assess adherence to regulations concerning the transportation of students, and (3) determine the integrity of the current waitlist (KinderWait) for access to childcare.”
Why it matters

If the waitlist numbers are wrong, lawmakers may make funding decisions based on bad information about how many families need childcare help.

“Inaccurate data may adversely affect the Legislature’s ability to assess the need for childcare services and establish appropriate funding.”
What's in it for me?

For families, the report matters because it concerns access to subsidized childcare, whether eligible children were left waiting, and whether children were transported safely.

“As a result, EEC accumulated annual operating surpluses totaling more than $18 million for fiscal years 2011 and 2012, and an estimated 2,780 eligible children were not placed in childcare.”
The bottom line

The Auditor concluded that EEC needed stronger controls over its waitlist, payments, and transportation oversight.

“As a result, there is a heightened risk that contractors that provide transportation services for children receiving EEC-supported childcare do not meet all the requirements necessary to properly ensure children’s safety.”
What happens next

The report recommended that EEC clean up the waitlist, recover improper payments, review bills before paying them, and strengthen transportation monitoring.

“EEC should establish policies and procedures to review provider bills for unallowable absences before they are paid.”
Why it's significant

The findings were large: the waitlist may have been overstated by more than one-third, and EEC paid nearly $400,000 for childcare days that may not have been allowed.

“However, our analysis of the KinderWait database showed that on this date, the waitlist was overstated by as many as 21,561 children (36%).”

4 figure(s) pending source verification - not shown

What the Auditor checked

What the Auditor found

EEC's childcare waitlist was overstated and unreliable.
recordkeeping/documentationreporting timelinessinternal controls

Why it matters: The Legislature received inaccurate information, which could affect its ability to assess childcare needs and set funding.

Standard: Chapter 15D, Section 2, of the General Laws; Chapter 139, Section 2, of the Acts of 2012; EEC Financial Assistance Policy Guide. ( Chapter 15D, Section 2, of the General Laws; Chapter 139, Section 2, of the Acts of 2012 )

3 recommendations
  • Continue to use KinderWait's auto-archive feature.
  • Routinely search KinderWait for duplicate applications and remove duplicates.
  • Develop controls to ensure confirmation letters are sent on time, including manually when needed.
Agency response & Auditor reply
Agency: "EEC performs monthly checks to ensure confirmation letters have been sent to families on the waitlist."
Auditor: "Based on its response, EEC is taking measures to address our concerns on this matter."
EEC did not adequately oversee drivers, monitors, and vehicles used to transport children.
public safetyvendor oversightrecordkeeping/documentationinternal controls

Why it matters: There was heightened risk that transportation contractors did not meet requirements necessary to ensure children's safety.

Standard: 606 CMR 14.02; 606 CMR 7.13(4); 606 CMR 7.13(5); Chapter 90, Sections 7A, 8A, and 8A1/2 of the General Laws. ( 606 CMR 14.02; 606 CMR 7.13(4); 606 CMR 7.13(5) )

8 recommendations
  • Establish procedures to ensure required background record checks are performed before and during employment.
  • Require childcare providers to notify EEC when hiring or contracting drivers or monitors.
  • Monitor CPR and first-aid certification compliance.
  • Ensure drivers are properly licensed and certified and records are maintained.
  • Ensure transportation providers complete and maintain transportation logs.
  • Ensure vehicle registration, inspection, and inspection records are verified and available.
  • Ensure providers and subcontracted transportation companies maintain minimum required insurance.
  • Ensure all contracted childcare providers submit adequate transportation oversight plans.
Agency response & Auditor reply
Agency: "In December 2013, EEC hired a Transportation Compliance Monitor to provide transportation monitoring, training, and technical assistance for contract providers and Family Child Care Systems whose staff, contractors, and/or subcontractors provide transportation."
Auditor: "Based on its response, EEC is taking measures to address our concerns on this matter."

More audits of this entity

Other Office of the State Auditor reports on Department of Early Education and Care .

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