Minnesota officials probe child care centers over alleged fraud

Summary:

Minnesota investigators are auditing childcare centers suspected of fraudulent billing to state subsidy programs like the Child Care Assistance Program (CCAP). Common triggers include centers billing for non-existent children, exaggerating care hours, or operating unlicensed facilities. At least 12 centers are under criminal investigation for allegedly stealing millions in public funds. Such fraud drains taxpayer money and reduces resources for legitimate low-income families needing childcare support.

What This Means for You:

• Impact: Taxpayer-funded childcare subsidies may be misused instead of helping working families.
• Fix: Verify your center’s license status at Minnesota’s DHS portal.
• Security: Never share your child’s SSN or subsidy ID unless required for verified programs.
• Warning: Providers demanding cash payments for subsidized spots are likely breaking CCAP rules.

Solutions:

Solution 1: Verify Provider Legitimacy

Minnesota’s Department of Human Services (DHS) maintains updated childcare licensing records. Check your provider’s status using:

Steps:
1. Visit https://licensinglookup.dhs.state.mn.us/
2. Search facility name or license number
3. Confirm "Active" status + CCAP eligibility

Unlicensed facilities or centers with recent violations appear in red. Report discrepancies to DHS.FraudDetection@state.mn.us.

Solution 2: Monitor Financial Statements

Parents receiving subsidies receive monthly attendance logs from DHS via mail or MN Provider Portal. Cross-reference these with provider invoices. Discrepancies? Dispute charges immediately:

When billed hours exceed DHS records:
1. Email provider with DHS statement screenshot
2. CC DHS at CCAP.ProviderHelp@state.mn.us
3. Request corrected invoice within 10 business days

Solution 3: Report Suspicious Activity

File anonymous tips via Minnesota’s fraud hotline (651-431-4050) or online form. Provide evidence like:
– Photos of empty classrooms during billed hours
– Invoices charging for days your child was absent
– Requests to falsify attendance sheets

Whistleblowers may qualify for rewards under MN Statute 15C.01.

Solution 4: Advocate for Stricter Audits

Demand enhanced oversight from lawmakers by:
1. Contacting MN’s Legislative Auditor at https://www.auditor.leg.state.mn.us/
2. Supporting HF 2121 (2023 bill mandating biometric child check-ins)
3. Joining advocacy groups like Children’s Defense Fund-Minnesota

Sample email script:
Subject: Support Childcare Fraud Prevention
"I urge funding for DHS’s Fraud Prevention Division to implement:
- Mandatory fingerprinting for CCAP providers
- Real-time attendance verification tools
- Quarterly financial disclosures"

People Also Ask:

• Q: How to spot childcare subsidy fraud? A: Phantom children on rosters, staff unable to name billed kids.
• Q: Will my childcare close if reported? A: Only if violations are found; legitimate centers stay open.
• Q: Can providers sue for false reports? A: No – MN whistleblower laws protect good-faith allegations.
• Q: What penalties do fraudulent centers face? A: Fines up to $100k, lifetime CCAP bans, felony charges.

Protect Yourself:

• Review every DHS subsidy statement line-by-line
• Keep copies of sign-in/out sheets for 3 years
• Search providers at https://comviews.state.mn.us/ before enrolling
• Ask centers to explain billing codes in writing

Expert Take:

Dr. Elena Martinez (UMN Fraud Forensics Director) states: “These schemes exploit program weaknesses – Minnesota’s paper-based attendance tracking invites manipulation. Transition to encrypted digital check-ins with facial recognition could prevent $60M+ in annual losses.”

Tags:

• Minnesota childcare fraud reporting hotline
• How to verify licensed daycare in MN
• Signs your childcare provider is committing fraud
• MN CCAP fraud penalties for providers
• Protect against daycare subsidy scams MN
• Minnesota HF 2121 childcare biometrics bill

*Featured image via source

Edited by 4idiotz Editorial System