Should Fraud Be A Concern?
As the Department of Justice, the Department of Health and Human Services, and the Department of Homeland Security all investigate Minnesota childcare centers for fraudulent use of federal funds, many are questioning if similar acts of fraud are taking place in Pennsylvania.
Who is responsible for the licensing of PA childcare centers? Are regular inspections required of facilities? Are audits conducted of these centers to ensure tax dollars are not being wasted or used fraudulently? Here’s what we know:
Licensing & Inspections
The Commonwealth of Pennsylvania’s Department of Human Services (DHS) regulates childcare facilities through its Office of Child Development and Early Learning (OCDEL). OCDEL’s Bureau of Certification Services reviews applications, conducts inspections, and issues licenses to all the 6,400 childcare providers in the Commonwealth. The initial inspection checklist ensures the facility meets all PA regulations for childcare safety and building codes. OCDEL is supposed to conduct annual unannounced inspections of all childcare centers. The renewal inspection checklist includes the initial review items as well as caregiver to child ratios, supervision of staff, condition of equipment, etc.
It appears that the inspection instruments would identify facilities that are not actually caring for children or may be part of a fraudulent scheme. Are these inspections actually taking place for every center receiving taxpayer dollars? We filed a Right-to-Know request for the most recent initial and renewal inspection sheets for Chester and Delaware Counties. When we receive the information, we’ll compare them to the list of all facilities in the counties to ensure the inspections are being completed and documented. We’ll let you know what we find.
Financial Audits
Currently, audits are not performed by the Commonwealth on the childcare system that receive $1.3 billion annually. Taxpayers are supposed to rely upon the DHS licensing/inspections and the Inspector General to be the watchdogs over taxpayer money.
State House Representatives Kate Klunk (R-York) and Jill Cooper (R-Westmoreland) are proposing new legislation that would authorize the Auditor General’s Office to perform audits on childcare programs operated by DHS. Their hope is that this legislation would be seen as an accountability tool and receive bipartisan support.
Bottom line…
One of the core aspects of the Keystone Fair Business Partners’ mission is good governance. Rooting out fraud, waste, and mismanagement is key to achieving that mission. When Chesco budgets $47 million and Delco budgets $46 million for Children & Youth Services, then we want to know that those tax dollars are being used to help the residents of the counties. Perhaps legislation will pass to allow true audits of these childcare facilities. Until then, Keystone Fair Business Partners is doing the work to find answers for you, the taxpayer!
As the Constitutional Convention ended in 1787, Benjamin Franklin was asked if the delegates produced a monarchy or a republic. Franklin replied, “A republic, if you can keep it.”
We are trying to keep this republic that we love and hold our representatives accountable to the people. Join us in that mission and share this Update with your contacts!







