State Administrative Errors 2020 - Legislative ReportThis report, required by Provision 4(b) of Item 6100-001-0890 of the Budget Act of 2019, summarizes administrative errors in alternative payment and general child care programs for fiscal year 2019-20.
California Department of Education
Report to the Governor and the Legislature:
Administrative Errors in Alternative Payment, California Work Opportunities and Responsibility to Kids, and General Child Care Programs for Fiscal Year 2019–20
This report is submitted in compliance with the 2019 Budget Act’s Provision 4(b) of Item 6100-001-0890. The provision, which concerns subsidized child care services in California, sets forth the conditions for funding the services and requires “every alternative payment agency and subsidized general child care agency shall be audited each year using sufficient sampling of provider records of the following: (1) family fee determinations, (2) income eligibility, (3) rate limits, and (4) basis for hours of care, to determine compliance rates, any instances of misallocation of resources, and the amount of funds expected to be recovered from instances of both potential fraud and overpayment when no intent to defraud is suspected.”
Provision 4(b) also requires the State Department of Education, that is, the California Department of Education (CDE), to use federal regulations for Improper Payments Elimination and Recovery Act as guidance in the annual report to the Governor and the Legislature.
This report includes data that the Governance and Administration Unit (GAU) gathered from both state and federal reviews, the error rate review, and the Improper Payment Elimination and Recovery Improvement Act (IPERIA). During both reviews, the GAU notes the findings of improper payments and administrative errors. An improper payment occurs when a violation or misapplication of policy or procedure governing the child care program results in an overpayment or underpayment to the child care provider/contractor. An administrative error is defined as any instance in which child care subsidy policy was misapplied, or rules or regulations were not followed, that did not result in an improper payment.
Frequently, errors indicate there was insufficient evidence in the file to support the decisions made or that program requirements were misinterpreted by the contractor.
For questions about the report or to request a copy, please contact Erica Otiono, Associate Director, Early Learning and Care Division (ELCD), by phone at 916-319-0716 or by email at firstname.lastname@example.org.