Policy & Regulation News

Texas Workforce Commission claims $15 million in CCDF funds

By Elizabeth Snell

- The Texas Workforce Commission did not comply with federal requirements for the use of approximately $15 million in the Child Care and Development Fund (CCDF) targeted funds for fiscal year 2010, according to a recent audit by the Department of Health & Human Services (HHS).

HHS found that the state agency did not comply with Federal requirements for the use $14,967,129. Moreover, $14,909,333 of expenditures were improperly claimed and included nontargeted fund activities. The entity also improperly claimed $32,666 in expenditures that were incurred before the start of the funding period and did not refund $25,130 to the government. Those funds also remained unliquidated after the liquidation period had ended, according to HHS.

“These errors occurred because the state agency did not have policies and procedures in place to ensure that only expenditures that improve the quality of childcare are reported and to adequately oversee the obligation and liquidation of the targeted funds,” HHS explained in its report.

Under the CCDF program, each state must develop a plan that identifies the purposes for the funds and then submit it to the Administration for Children and Families (ACF) for approval. Those CCDF funds will then be expended for two grant periods (i.e., two fiscal years). Additionally, a state agency has two fiscal years to obligate CCDF funds and a third to liquidate those funds.

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  • The Texas agency claimed CCDF targeted funds totaling $31,777,216 on its ACF-696 report for FY 2010, which is what HHS reviewed for its audit.

    HHS recommended that the Texas agency refund the $14,909,333 to the federal government or

    work with ACF to determine whether any of that money was allowable. Additionally, it is recommended that the entity refund the money for targeted funds that were incurred before the start of the funding period and those that were not liquidated in the required timeframe (a total of $57,796).

    Moreover, the Texas agency should “develop policies and procedures to ensure that it claims only the enhanced portion of payments made to providers that have exceeded licensing standards and strengthen monitoring of CCDF targeted funds to ensure that expenditures are properly obligated and liquidated.”

    The state entity did not agree with the recommendation to refund the $14.9 million, but agreed to work with ACF to determine whether the expenditures were allowable. The agency also agreed to improve the monitoring of CCDF targeted funds. However, it did not agree with HHS’ recommendation to develop policies and procedures to ensure that it claims only the enhanced portion of payments to providers that have exceeded licensing standards.