Department of Early Education and Care

The State Auditor reviewed EEC as part of the statewide Single Audit for the fiscal year ending June 30, 2011.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, the Office of the State Auditor conducted an audit of EEC in conjunction with the Single Audit of the Commonwealth of Massachusetts for the fiscal year ended June 30, 2011.”

EEC handled a large amount of public money, mostly federal funds, so its controls over spending and compliance affect major child care programs.

“During fiscal year 2011, EEC administered approximately $548 million, of which federal funds totaled approximately $423.7 million.”

For families, this matters because EEC supports child care access, affordability, quality, referrals, parenting support, and staff development in early education.

“EEC’s mission is to ensure that Massachusetts children and families are helped to reach their full potential by providing and coordinating a range of services and assistance to continuously improve the quality, affordability, and accessibility of early education and care.”

A past problem with how EEC handled recovered ineligible expenses was fixed, according to the follow-up audit.

“Our follow-up audit found that, working with the Office of the State Comptroller (OSC) and members of the ACF Boston office, the EEC has taken the necessary action to implement an accounts receivable resolution.”

EEC said it would keep tracking recovered money at least every quarter, and it had already made monthly credit entries for May and June 2011.

“Moving forward, EEC plans to account for recoupments at least quarterly; however, EEC has made monthly entries for credits of $14,350 and $8,170 for May and June 2011, respectively.”

The audit’s significance is that EEC passed the tested compliance areas and resolved the earlier issue involving accounts receivable and federal funds.

“Beginning in May 2011, EEC implemented its procedures in its April 2011 expenditure tracking sheet to credit the appropriate accounts for the recoupment of ineligible federal expenditures totaling $605,515 for the period July 1, 2009 through April 2011.”

“Recoupments” means money recovered from expenses that should not have been paid; depending on timing, that money may need to go back into federal awards or be returned to the federal government.

“Child Care & Development Fund (CCDF) regulations (Title 45 Code of Federal Regulations (CFR) Section 98.60, Availability of Funds) allow grantees to re-obligate certain un-liquidated or recouped funds within the applicable obligation period; however, if funds are recouped after the end of the applicable obligation period, they must be returned to the federal government.”