Department of Early Education and Care
May 12, 2011 · Read the full official report (PDF) ↗
Published May 12, 2011 Audit covers July 1, 2009 – June 30, 2010 Under Suzanne M. Bump · 2011–2023
source
“Our follow-up audit disclosed that this issue has not been resolved despite EEC’s continued efforts.”
Read the plain-English breakdown
This is a state audit of the Massachusetts Department of Early Education and Care for fiscal year 2010.
“In accordance with Chapter 11, Section 12, of the General Laws, the Office of the State Auditor conducted an audit of EEC for the period July 1, 2009 through June 30, 2010.”
The audit was done as part of Massachusetts’ statewide federal funds audit and checked whether EEC followed federal, state, and comptroller rules.
“We conducted our audit in conjunction with the Single Audit of the Commonwealth of Massachusetts for the fiscal year ended June 30, 2010.”
EEC handled large amounts of public money for child care and early education, mostly federal funds.
“During fiscal year 2010, EEC administered approximately $525 million, of which federal funds totaled approximately $405.6 million.”
If you use or care about child care services in Massachusetts, this matters because EEC funds providers and agencies that serve eligible families.
“EEC, acting as the pass-through entity, disbursed a majority of these federal funds to contracted child care providers and CCR&R agencies (subrecipients) for early education and child care services.”
Most tested controls and compliance areas were adequate, except for the unresolved accounts receivable problem described in the report.
“Based on these tests, we have concluded that, except as reported in the Audit Results section of this report, for the period July 1, 2009 to June 30, 2010, EEC had adequate internal controls in place and complied with the requirements of the federal Department of Health and Human Services; the OMB Circular A-133 and the Compliance Supplement; and other applicable laws, rules, and regulations for the areas tested.”
EEC was told to keep working with state finance offices so recovered funds can be properly reused or returned to the federal government.
“EEC should continue to work with the OSC and the EOAF to establish procedures and/or mechanisms to either reallocate recouped funds back to EEC’s federal awards where appropriate, or to reimburse the federal government, where necessary.”
The unresolved issue involved hundreds of thousands of dollars that had not yet been put back into federal awards or returned.
“Additionally, EEC recouped $377,951 during FY 2010 that has been neither re-obligated nor returned to the federal government.”
2 figure(s) pending source verification - not shown
What the Auditor checked
- Partially Assess the internal controls in place at EEC during the review period.
- Partially Assess and evaluate the program for compliance with the requirements of the Compliance Supplement, the federal Department of Health and Human Services, and the OSC.
- Partially Determine the status of prior audit results (No. 2010-0837-16S).
What the Auditor found
Why it matters: Recouped funds were not re-obligated to federal awards or returned to the federal government as required, creating a risk of noncompliance with federal funding rules.
Standard: Title 2 CFR Part 230, Appendix A, and Title 45 CFR Section 98.60 ( Title 2 of the Code of Federal Regulations, Subtitle A, Chapter II, Part 230 – Cost Principles for Non-Profit Organizations (OMB Circular A-122), Appendix A – General Principles; Title 45 CFR Section 98.60, Availability of Funds )
1 recommendation
- EEC should continue working with OSC and EOAF to establish procedures or mechanisms to reallocate recouped funds back to federal awards or reimburse the federal government when necessary.
Agency response & Auditor reply
Agency: "Finally, EEC stated that it remains committed to resolving this issue during the current fiscal year."
Prior findings revisited
"Our follow-up audit disclosed that new income-eligible contracts were finalized, effective September 1, 2009."
"Our audit review noted that drawdown requests were processed timely and in compliance with the TSA."
"Our follow-up audit disclosed that this issue has not been resolved despite EEC’s continued efforts."
More audits of this entity
Other Office of the State Auditor reports on Department of Early Education and Care , including the prior audits referenced above.
- Audit of the Department of Early Education and Care (November 25, 2024)State Agency / Office · November 25, 2024
- Department of Early Education and CareState Agency / Office · November 25, 2014
- Department of Early Education and CareState Agency / Office · May 8, 2012
- Audit of the Department of Early Education and Care (EEC)State Agency / Office · May 5, 2020
- Department of Early Education and CareState Agency / Office · March 27, 2013
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Audit of Settlement Agreements and Confidentiality Clauses Across Multiple State Agencies - Department of Early Education and Care (January 28, 2025)State Agency / Office · January 28, 2025