Montana DPHHS updating procedures on child care funding after audit

HELENA — The Montana Division of Public Well being and Human Companies says it’s engaged on updating the way it handles hundreds of thousands of {dollars} in baby care funding, after an audit discovered they may do extra to point out the cash is attending to the areas with the best want.

Montana sometimes spends about $40 million a 12 months in federal and state funding for baby care applications. On Wednesday, the Legislative Audit Division offered lawmakers with a breakdown of how that cash is distributed, together with suggestions on bettering the processes.

“What the audit did do for us is problem us – as audits usually do – to assume otherwise about the best way we’ve at all times completed issues,” mentioned Erica Johnston, govt director of financial safety companies for DPHHS, throughout a gathering of the Legislative Audit Committee.

The audit report focuses on federal Little one Care and Improvement Fund cash – $29.6 million in fiscal 12 months 2020 – and state matching funds – just below $10.4 million. Greater than half of that funding goes to the Greatest Beginnings Little one Care Scholarship program, which gives subsidies to assist certified low-income households afford care. The remainder of the cash helps regional baby care sources and referrals, children in foster care, high quality enhancements and extra.

Auditors discovered many dad and mom throughout the state are having hassle enrolling their kids within the baby care facility of their selection – usually due to a scarcity of openings – and that many suppliers have needed to elevate charges to maintain up with rising prices.

Their report notes that Montana’s 56 counties range extensively in demographics like variety of kids underneath age 11 and median revenue, which may also help point out the potential want for baby care help in an space. They mentioned DPHHS does informally contemplate baby care wants county by county, however they don’t have a simple means of evaluating and prioritizing which want is best. The auditors beneficial DPHHS make common evaluations of the demographic information and use that to assist information their choices on distributing funds.

“We acknowledge no single demographic information level will present the mandatory info to find out the necessity for baby care help,” the report mentioned. “A set of demographic and different info would supply the very best perception.”

In a single instance, they famous that Gallatin County noticed a 9% improve in kids 11 and underneath from 2014 to 2020, however its CCDF funding truly decreased by 40%. The report speculates one purpose might be that, due to the excessive price of dwelling there, households might be making an excessive amount of to qualify for Greatest Beginnings scholarships however nonetheless struggling to pay for care.

The audit additionally beneficial DPHHS add a step to its licensing course of, to examine whether or not anybody on the Sexual or Violent Offender Registry is listed as dwelling on the similar deal with as a baby care supplier. They discovered three baby care areas that matched somebody on the registry – although solely one in all them was nonetheless an energetic supplier on the time.

At the moment, when suppliers apply for a license, they need to state who resides on the deal with. The state then checks these names – not the deal with itself – in opposition to the registry.

“This explicit suggestion challenges the division to go one step additional, past self-attestation,” Johnston mentioned. “It strikes from the belief and self-reporting to really verifying – taking that subsequent energetic step to say, ‘We consider you, however we’re additionally going to examine, and if we discover one thing on that listing we’re going to behave appropriately.’”

DPHHS director Charlie Brereton advised lawmakers the division will work to implement the entire auditors’ suggestions within the coming months, however that they’re already within the strategy of rechecking addresses, working with the Montana Division of Justice.

“I perceive that security is paramount for folks as they choose a baby care supplier, and we is not going to let this proceed to occur,” he mentioned. “You’ve my phrase.”

The $40 million determine relies on a typical 12 months, earlier than COVID-19. Brereton mentioned they’ve been in a position to direct far more cash towards baby care lately, due to one-time funding from federal pandemic aid applications just like the American Rescue Plan Act.