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 Bill Ingebrigtsen (R-Alexandria) released a statement:

“It’s evident that fraud continues to run rampant within Minnesota’s Child Care Assistance Program without any checks or reforms to bring it to an end. This is deeply disappointing as we move into a new administration that continues to aggressively deny the scope of this fraud. Minnesotans deserve better, and it is outrageous that we continue to waste their taxpayer dollars when there are over 2,000 children who are waiting for access to this program. Rather than conceal or deny fraud, this new administration must work to be transparent and forthright about the shortcomings within their departments. Together, we can work on solutions to solve the combined issues that we face to make Minnesota a better place to live.”

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.