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NYS Office of Children and Family Services
COMBATTING CHILD CARE SUBSIDY FRAUD TO
MAKE EVERY DOLLAR COUNT
Janice M. Molnar, Deputy CommissionerJim Hart, Director of Regional Operations
Rhonda Duffney, Director, Child Care Subsidy Program
NYWFIA30th Annual Training Seminar
Tuesday, June 4, 2013
Gladys Carrión, Esq.
Commissioner
Andrew M. CuomoGovernor
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Mission of OCFS
“Promoting the safety, permanency, and well being of our children, families, and communities. We will achieve results by setting and enforcing policies, building
partnerships, and funding and providing quality services.”
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Regulated Child Care in NYSModality Regulated Providers Capacity
Child Care Center 4,178 280,586
Family Child Care Home 6,576 49,877
Group Family Child Care Home 8,150 122,125
School-Age Child Care Program 2,512 238,119
Total: 21,416 690,707
(Data as of 1/4/13)
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Subsidized Children in NYS by Age Group
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Subsidized Child Care in NYS
• In FFY 2012, the modalities of care for children receiving subsidies:– 63% in regulated care (34% in licensed child care
centers, 29% in regulated family child care homes, including group family child care)
– 37% in legally-exempt care, almost exclusively home-based setting
– 46,965 legally-exempt providers served 86,168 subsidized children over the course of the year
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Child Care Subsidy FraudWAYS WE CAN PREVENT IT AND STOP IT!
• OCFS Child Care Subsidy Program Integrity Initiative
• Local District Innovations
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OCFS Child Care Subsidy Program Integrity Initiative
Includes Four Elements
•Child Care Time and Attendance (CCTA)
•Fraud regulations, which became effective October of 2011
•Child Care Subsidy Program Integrity RFP
•Child Care Fraud Prevention and Detection Incentive Program (Mini- Grants to local districts)
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Child Care Time and Attendance (CCTA)
CCTA is a web-based application which allows parents to check their child(ren) in and out of care using a password.
Key components of CCTA:
–Tracks attendance
–Bill for services is automatically calculated
–Provider electronically submits the bill to SSD
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Child Care Time and Attendance (CCTA) Goals
• Improve the timeliness and accuracy of payments to child care providers
• Decrease the administrative burden on child care providers and local districts
• Increase fiscal accountability, including fraud prevention
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What’s with CCTA now?
• Biometrics pilot is currently being conducted in
Albany and Jefferson Counties
• Release of Updated EnhancementsoRevised client noticesoEligibility Calculator (Scratchpad)oEnhanced payment page
o Shows calculations for split weeko Total per weeko Actual hours in care vs. scheduled hours
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New Child Care Subsidy Fraud Regulations
• OCFS revised the child care subsidy regulations to:– Provide local social services districts with more
authority to stop child care payments where appropriate.
– Initiate enforcement actions against child care providers when they are found to be engaging in fraudulent activities.
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Child Care Subsidy Program Integrity RFP
• Implement a tool that will analyze and integrate data from the various data systems with New York State child care subsidy data
• Run data against various predictors/red flags identified as highly indicative of fraudulent activity
• Focus investigations on cases that have a higher propensity of fraudulent activity
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OCFS’s Vision for the Technical Solution•Automated technical solution that will provide Social Services District and OCFS staff with a report that identifies potential subsidy fraud cases
•Incorporates a numerical scoring mechanism that generates a risk rating, so that their investigations may be triaged and prioritized
•Includes the ability to drill down into the details behind a case identified as "at-risk"
Child Care Subsidy Program Integrity RFP (cont’d)
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Child Care Fraud Prevention& Detection Incentive Program
• Competitive grants program for local county social services districts
• 12-month initiative, starting April 1, 2012• $1.2M total funding pool• Flexible funding, tiered according to child
population (maximum grants of $40,000, $60,000, or $100,000 for small, medium, and high child population counties, respectively)
• 20 winning counties
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Child Care Fraud Prevention& Detection Incentive Program (cont’d)
20 WINNING COUNTIESREGION 1 – BuffaloREGION 1 – Buffalo REGION 4 – AlbanyREGION 4 – Albany Erie $94,051 Albany $60,000 Cattaraugus $40,000 Essex $40,000REGION 2 – RochesterREGION 2 – Rochester Franklin $40,000 Monroe $47,433 Schenectady $60,000 Steuben $40,000 REGION 5 – NYC REGION 5 – NYC $100,000 Ontario $40,000 REGION 6 – Spring ValleyREGION 6 – Spring Valley Chemung $40,000 Westchester $98,810 Jefferson $40,000 Rockland $60,000REGION 3 – SyracuseREGION 3 – Syracuse REGION 7 – Long IslandREGION 7 – Long Island Onondaga $60,000 Nassau $100,000 Broome $58,529 Suffolk $100,000 Cayuga $40,000 Tompkins $40,000
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• Number of cases denied due to fraud on the application: 282
• Number of children in cases denied due to fraud on the application: 450
• Estimate of the total amount of money the districts will save by denying cases due to fraudulent information on the application: $239,250.00
Child Care Fraud Prevention & Detection Incentive Program
Annual Findings
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• Number of cases closed due to fraud: 398• Number of children in cases closed due to fraud: 639• Total amount of money districts have identified for
recovery from cases closed due to fraud: $1,063,860.20
• Total amount of money districts have recovered to date from cases closed due to fraud: $145,367.29
• Estimate of the total amount of money the districts will save by closing cases due to fraud (cost avoidance): $2,477,483.29
Child Care Fraud Prevention& Detection Incentive Program
Annual Findings (cont’d)
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Child Care Fraud Prevention& Detection Incentive Program
District Strategies and Outcomes to Address Waste, Fraud and Abuse
• Audited high-revenue providers• Expanded the use of Child Care Subsidy Regulations• Created a fraud reporting hot-line for suspect cases• Improved inter-agency communication with child
care staff and investigators• Increased communication with Child Care Resources
and Referral (CCR&R) agencies• Conducted a random sampling of regulated providers
for audit and verification of billing• Maintained an emphasis on FEDS
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Child Care Fraud Prevention& Detection Incentive Program
Lessons Learned
• The importance of collaborating with fraud investigators, child care staff and CCR&Rs.
• Some districts were surprised at the amount of fraud they found.
• Investigative staff need to better understand child care subsidy regulations.
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Child Care Fraud Prevention& Detection Incentive Program
Albany County Department of Social Services
NYC Administration for Children’s Services
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ALBANY COUNTY DEPARTMENT OF ALBANY COUNTY DEPARTMENT OF SOCIAL SERVICES SOCIAL SERVICES
WELFARE FRAUD UNITWELFARE FRAUD UNIT Supervising Investigator Supervising Investigator
Sean M. Hicks Sean M. Hicks InvestigatorInvestigator
James Fiammetta James Fiammetta
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NEW YORK STATENEW YORK STATEOFFICE OF CHILDREN AND OFFICE OF CHILDREN AND
FAMILY SERVICESFAMILY SERVICES
Child Care Fraud Prevention and Detection Child Care Fraud Prevention and Detection Incentive Program Incentive Program $60,000 $60,000
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ALBANY COUNTY, NY ALBANY COUNTY, NY CHILD CARE PROGRAMCHILD CARE PROGRAM
304,204 RESIDENTS 304,204 RESIDENTS IN ALBANY COUNTY IN ALBANY COUNTY
400+ LEGALLY 400+ LEGALLY EXEMPT EXEMPT PROVIDERS IN ANY PROVIDERS IN ANY MONTH MONTH
25-30 ANTICIPATED 25-30 ANTICIPATED NEWLY ENROLLED NEWLY ENROLLED PROVIDERS PROVIDERS MONTHLYMONTHLY
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TARGETTARGET:: Legally Exempt ProvidersLegally Exempt Providers
90% OF CHILD CARE FRAUD DETECTED 90% OF CHILD CARE FRAUD DETECTED IN ALBANY COUNTY IS IN THE IN ALBANY COUNTY IS IN THE
LEGALLY EXEMPT POPULATIONLEGALLY EXEMPT POPULATION
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IDENTIFY ALL ACTIVE IDENTIFY ALL ACTIVE LEGALLY LEGALLY EXEMPTEXEMPT PROVIDERS RECEIVING PROVIDERS RECEIVING
ASSISTANCE ASSISTANCE
SEARCH SEARCH BICS BICS (Benefit (Benefit Issuance and Control System) Issuance and Control System) FOR ACTIVE PAYMENTS FOR ACTIVE PAYMENTS
INSERT ALL PROVIDERS INSERT ALL PROVIDERS INTO FRAUD TRACKING INTO FRAUD TRACKING DATABASE DATABASE
CREATE “CREATE “PROVIDERPROVIDER” CASE ” CASE RECORDRECORD
Check WMS for current Check WMS for current benefits benefits
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SEARCH W.M.S. FOR PROVIDERS SEARCH W.M.S. FOR PROVIDERS
RECEIVING ASSISTANCERECEIVING ASSISTANCE Notify workersNotify workers Budget income Budget income Calculated Calculated
Overpayments totaled Overpayments totaled $103,048.63$103,048.63 (69 (69 Providers) Providers)
Interview Providers Interview Providers Set up payment Set up payment
agreements / agreements / recoupments recoupments
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SENDSEND
PROVIDER QUESTIONNAIREPROVIDER QUESTIONNAIRE Are you currently receiving Are you currently receiving
any assistance? If so, what any assistance? If so, what are you receiving?are you receiving?
Are you currently Are you currently employed? If so, where and employed? If so, where and what hours do you work? what hours do you work?
Are you currently in school Are you currently in school or training? If so, where and or training? If so, where and what hours? what hours?
Provider Agreement to Provider Agreement to release information. release information.
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QUESTIONNAIRE RESULTSQUESTIONNAIRE RESULTS
411 Completed Questionnaire411 Completed Questionnaire31 Questionnaires were not returned31 Questionnaires were not returned10 providers forfeited checks totaling 10 providers forfeited checks totaling
$8,448.60$8,448.60
** ALL PROVIDERS ARE NOW REQUIRED ALL PROVIDERS ARE NOW REQUIRED TO SIGN QUESTIONNAIRE TO SIGN QUESTIONNAIRE
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RANDOM FIELD VISITSRANDOM FIELD VISITS ““non-traditional hoursnon-traditional hours””
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PREVENTION / EDUCATIONPREVENTION / EDUCATION
Review of county formsReview of county formsProper billing procedures / expectationsProper billing procedures / expectationsPayment expectations Payment expectations Reporting changesReporting changesDefinition of fraud and abuse Definition of fraud and abuse Penalties for fraudPenalties for fraudNotify provider of the CCTA system Notify provider of the CCTA system
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“ “UNANNOUNCEDUNANNOUNCED” FIELD VISITS ” FIELD VISITS ON ACTIVE CASES ON ACTIVE CASES
Verify if care is being provided… Verify if care is being provided… Verify who is providing the care…Verify who is providing the care…Ask for ID !! Ask for ID !! If care is not being provided…why not?If care is not being provided…why not?If care is being provided by someone other If care is being provided by someone other than the enrolled provider…..Who? Why?than the enrolled provider…..Who? Why?
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FEDS PUSH 2012FEDS PUSH 2012““PreventionPrevention!!!!” ”
Work close with Work close with Child Care Staff. Child Care Staff.
Build confidence in Build confidence in the FEDS process.the FEDS process.
Quick turn around Quick turn around results………..results………..
MORE FEDS! MORE FEDS!
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FEDS REFERRAL CLIMBFEDS REFERRAL CLIMBSTATE FISCAL YEAR 2011 & 2012STATE FISCAL YEAR 2011 & 2012
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FEDS DENIAL CLIMB FEDS DENIAL CLIMB STATE FISCAL YEAR 2011-2012 STATE FISCAL YEAR 2011-2012
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FEDS COST AVOIDANCEFEDS COST AVOIDANCESTATE FISCAL YEAR 2011 & 2012 STATE FISCAL YEAR 2011 & 2012
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COLLECTION LETTERS COLLECTION LETTERS ““TAX SEASONTAX SEASON” ”
Delinquent Delinquent payment payment agreements on agreements on past Fraud Cases. past Fraud Cases.
““Final NoticeFinal Notice” ” letters sent to all letters sent to all clients in April 2013clients in April 2013
Collected $7,000+ Collected $7,000+ to date. to date.
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OCFS ANNUAL GRANT OCFS ANNUAL GRANT REPORT REPORT
CASES CLOSED DISTRICT RESPONSEA. Number of cases closed due to fraud. 47A. Number of children in cases closed due to fraud. 81A. Amount of money the district has identified for
recovery from cases closed due to fraud. $236,213A. Amount of money the district has recovered to
date from cases closed due to fraud. $73,240.79A. Estimate of the amount of money the district will
save by closing cases due to fraud (cost avoidance).427,350.00
CASES DENIED DISTRICT RESPONSEA. Number of cases denied due to fraud on the
application. 187A. Number of children in cases denied due to fraud on
the application. 259A. Estimate of the amount of money the district will
save by denying cases due to fraudulent information on the application. $1,037,850
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Child Care Fraud Child Care Fraud Prevention and Prevention and
Detection GrantDetection Grant June 2013June 2013
The New York City The New York City Administration for Children’s ServicesAdministration for Children’s Services
38
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Child Care Subsidy CaseChild Care Subsidy Case Oversight of Child Care Subsidy
Administration for Children’s Services (ACS)
Enrollment ACS Cash Assistance Population: Human Resource
Administration (HRA) Bureau of Eligibility Verification (BEV)
Licensing and Provider Monitoring Department of Health and Mental Hygiene (DoHMH) The Women’s Housing and Economic Development Corporation
(WHEDCo) - Legally Exempt Enrollment Agency for NYC
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Life Cycle of a Child Care CaseLife Cycle of a Child Care Case Fraud Detection
ACS Internal Reporting Protocols Staff Training; Investigative Case Tracking Analysis
Center for Innovation through Data Intelligence (CIDI) – Data Queries Based Upon Case Analysis
HRA’s Investigation, Revenue, and Enforcement Administration (IREA)
Bureau of Fraud Investigation (BFI) Pilot Re-Examination into 1,000 Cases
Department Of Investigation District Attorney’s Offices
Pilot Program to Investigate and Prosecute Cases of Fraud
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HRAACCIS
DOHMH
Attendance Data
ChildData
EnrollmentData
ParentData
Biologically InfeasibleBirthdays
Frequent Movement Between Programs
TopServiceUsers
Parents Who Are Informal
Providers
Data Source
Tables withindatabase
Models and queries completed to date
ACS Childcare Fraud Detection: Progress to date
Development of models and queries that flag unusual activity in support of fraud investigation of both service users and care providers.
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ACS Childcare Fraud Detection: Preliminary Analysis
Biologically Infeasible Birthdays
• Identify cases where the cumulative gestation time is less than 7 months, excluding twins and foster children
• Example: A family with three children needs to have a minimum of 1.4 years between the 1st and 3rd child.
Acceptable Timeline
Unacceptable Timeline
0.7 years 0.7 years
0.3 years 0.5 years
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ACS Childcare Fraud Detection: Preliminary Analysis
Frequent Movement Between Programs
• Identify children with unusually high movement between programs• A total of 1,015 children across 878 families had entropy scores above the 99th
percentile
Medium
Provider A
Provider B
High Entropy
Provider A
Provider C
Provider B
Provider E
Low
Provider A
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Questions and
Answers
http://www.ocfs.state.ny.us/main/childcare
NYS Office of Children and Family Services52 Washington Street
Rensselaer, New York 12144Phone: 518-474-9454
Fax: 518-474-9617