The Legislative Auditor (OLA) released its special review of the Child Care Assistance Program (CCAP) examining daycare fraud allegations on Wednesday morning. The OLA’s report details widespread fraud in the program, and the lack of internal controls at DHS that make fraud prosecutions difficult.

Following the Auditor’s presentation Senator Dan Hall (R-Burnsville) released a statement:

“I am deeply disturbed to see the current and ongoing fraud revolving around Minnesota’s Child Care Assistance Program. The Auditor’s report details continuing rampant fraud with very little effort from the Governor’s administration to have it resolved. This is unacceptable, and even more so when considering that there are nearly 2,400 children currently waiting to get on the Child Care Assistance Program. Minnesotans deserve solutions and the comfort of knowing that the legislature and administration are doing everything in their power to use their tax dollars wisely. I look forward to the Auditor’s recommendations and working with my colleagues in the Senate to develop solutions that help us restore that trust.”

 In the report, the OLA notes that while they could not substantiate the $100 million figure, they did “find that the state’s CCAP fraud investigators generally agree with Stillman’s opinions about the level of CCAP fraud, as well as why it is so pervasive.”

A second audit will assess internal controls within the program and offer detailed recommendations and is expected to be released next month. The OLA also detailed a “serious rift” between the DHS Inspector General and CCAP investigators that resulted in DHS hiring an audit firm to review the work of the investigative unit, rather than working with investigators to address their serious concerns about program integrity.