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 Jason Rarick (R-Pine City) released the following statement:

“The OLA report should disturb every Minnesotan. The man charged with leading the investigation into CCAP acknowledged there is pervasive fraud in Minnesota’s Child Care Assistance Program, and he even said that 50% of the entire CCAP program could be subject to fraud. Additionally, even though the OLA report couldn’t make a direct link to terrorism, the auditor also said that there is plenty of circumstantial evidence to support the claim that it is possible terrorists have obtained money meant for the CCAP program. Any amount of fraud is unacceptable, but at this level it is outrageous.”

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)