Minnesota agencies increase child care center visits following fraud scrutiny

Minnesota child care center investigations

Minnesota officials have announced additional on-site compliance checks for child care centers in the state following widespread scrutiny over potential fraud within state funding.

(FOX 9) - The Minnesota Department of Children, Youth and Families (DCYF) announced additional on-site compliance checks for child care centers in the state.

State regulators say the collaboration between multiple agencies reflects their commitment to protecting taxpayer dollars and preventing fraud.

State regulators cracking down

The backstory:

A viral video published in December thrust Minnesota child care centers back into the spotlight as the state is facing allegations of widespread fraud in government programs.

Big picture view:

This comes after the U.S. Department of Health and Human Services (HHS) announced it has frozen child care payments to Minnesota amid the ongoing investigation.

"My office, ACF, provides Minnesota with $185 million in child care funds each year," said Alex Adams, Assistant Secretary for the Administration for Children and Families (ACF).

"We believe the state of Minnesota has allowed scammers and fake daycare to siphon millions of taxpayer dollars over the past decade," said Jim O’Neill, Deputy Secretary of HHS.

Scrutiny over Minnesota fraud increases

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What they're saying:

State officials are giving providers some more information and say they found out about the federal funding freeze at the same time as the general public.

But for now, they tell providers and families participating in the Child Care Assistance Program (CCAP) to continue with requirements and practices as usual.

State regulators say they will be conducting additional on-site compliance visits. DCYF’s Office of Inspector General (OIG) investigators will be collaborating with Minnesota Bureau of Criminal Apprehension (BCA) agents on these visits — beginning immediately.

"Child care providers are vital to not just families, but Minnesota's economy and communities," said Randy Keys, DCYF Inspector General. "We are committed to protecting taxpayer dollars and ensuring all Minnesotans have access to the safe, quality child care and early learning programs communities depend on."

By the numbers:

Currently, Minnesota officials are investigating 55 child care providers receiving program funding. DCYF officials say this includes four of the sites highlighted in a viral video. 

The agency did not specify which centers they are investigating and the reasons why.

What's next:

State officials say they were given a deadline of Jan. 9 to provide HHS with additional information or may face additional penalties or restrictions.