The office of the Legislative Auditor (OLA) today released the findings of their investigation into fraud within Minnesota’s Child Care Assistance Program. The investigation was prompted by a whistleblower who alleged that the amount of fraud topped $100 million each year.

Senator Julie Rosen (R-Vernon Center) released the following statement:

“The CCAP audit is not exactly a shock. In fact, it mostly confirms what we suspected: that Child Care Assistance fraud is happening, it’s happening in large numbers, and the auditor can’t even get to the bottom of how big it is. Even the lead investigator in charge of CCAP said that the overall fraud rate could be at least 50% of the entire CCAP program. The program badly needs oversight and accountability.”

Notable findings:

• OLA investigators believe that fraud is higher than the amount that has been proven in prosecutions over the past few years, but were unable to reach a reliable estimate. (Page 8)
• Investigators within the Department of Human Services generally agree with the whistleblower’s allegations about the scope of fraud in CCAP. Jay Swanson, manager of CCAP’s Investigations Unit, said fraud is pervasive and pegged the amount as being in the $100 million range. (Page 9-10)
• Per an email, the Supervisor and Manager of the CCAP Fraud Investigation Unit believe the overall fraud rate is at least 50% of the $217 million paid to child care centers in 2017. (Page 10)