Press Release  State Audit Leads to Improvements at Childcare Agency

Boston — State Auditor Suzanne M. Bump today released an audit of the Department of Early Education and Care (EEC) which found the waitlist for childcare services to be significantly overstated and oversight of transportation services to be inadequate. In response to audit findings, EEC has reduced its waitlist by more than 20,000 entries and hired a full-time administrator dedicated to transportation compliance.

“Our audits are about making government work better and today’s audit of state childcare services shows how that’s done,” said Auditor Bump “EEC is addressing its problem areas head on, and as a result is improving safety and transparency.”

EEC is the Commonwealth’s lead agency for administering and providing early education and care programs and services to children and is responsible for the licensure of child care providers. During Fiscal Year 2013, EEC administered approximately $501 million in programs and services, approximately $384.5 million of which were federal funds. The audit was performed at the request of the Legislature.

"I thank Auditor Bump and the committed staff of both agencies for a professional, collaborative, and productive process that has strengthened our work on behalf of the Commonwealth's children and families," said Early Education and Care Commissioner Tom Weber. "This report is a welcome part of the Department's overall continuous review and improvement processes and we will continue to act on the feedback to strengthen our operations, programs and services. Building a system of high-quality early education and care in Massachusetts is critical to ensuring a prosperous future for all of the Commonwealth's children, families, and communities."

Today’s audit, which reviewed fiscal years 2012 and 2013, found that EEC maintained a waitlist for childcare that contained 21,561 outdated or duplicate entries, overstating the total amount by as much as 36 percent. The audit also found that EEC may not have sent eligibility confirmation letters to approximately 15 percent of families on the waitlist, calling into question the reliability of the waitlist.

In addition, the audit found EEC did not ensure that companies hired by childcare providers to deliver transportation services met all legal and regulatory requirements. Specifically, EEC was not ensuring that drivers and monitors underwent background and criminal record checks, that required training and certifications of drivers and monitors were completed, that transportation companies maintained travel logs, and that vehicles transporting children passed all required inspections and maintained at least the minimum required insurance coverage.

EEC responded positively to audit recommendations and has begun corrective action. To address audit findings, EEC reactivated two software features designed to automatically remove outdated and check for duplicate entries on its childcare waitlist. Also, EEC hired a full-time transportation compliance monitor who has begun a monitoring plan, risk assessment, and on-site monitoring of childcare transportation services. EEC also incorporated a monitoring check for excessive absences and has initiated the recoupment of improper payments.

“A more accurate waitlist will help legislators to better assess how to fund the services upon which so many families depend,” said Auditor Bump.

The audit report highlights that Massachusetts is one of only eight states which allows 15-passenger vans to be used to transport children. The National Highway Traffic Safety Administration recommends that states prohibit the use of 15-passenger vans to transport students because of a high rollover risk. The Massachusetts Registry of Motor Vehicles has prohibited the registration of new, nonconforming 15-passenger vans, but allows the continued use of vans already registered. Auditor Bump has recommended that EEC consider prohibiting the use of 15-passenger vans for childcare transportation.

Also, for fiscal years 2011 and 2012, EEC withheld $18 million in funds for childcare vouchers in an effort to stop the agencies chronic overspending. For each year, the surplus funds were returned to the Commonwealth’s general fund and the report estimates that 2,780 eligible children did not receive childcare. EEC improved and reactivated its voucher program in September 2013.

The Office of the State Auditor conducts performance audits of state government’s programs, departments, agencies, authorities, contracts, and vendors. With its reports, the OSA issues recommendations to improve accountability, efficiency, and transparency.

The Department of Early Education and Care audit is available here.

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