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Performance Audit of the Suitability of Child Development and
Care Program Providers
and the Performance Audit of Child Development and
Care Program Payments
Receives AOPTA
Award for six month period ending December 31, 2008
Scott Strong is pleased to announce that the Child Day Care Performance Audit
Project is the winner of the Audit Operations Project Team Awards (AOPTA) for
the six-month period ended December 31, 2008. The audit project generated two
audit reports: the Performance Audit of the Suitability of Child Development and
Care Program Providers and the Performance Audit of Child Development and
Care Program Payments. The audit team included Yvonne Benn, Audit Supervisor;
audit team members: Dawn Anderson, Lori Beltran, Mark Lee, Andy Mitchell,
Thomas Ongstad, Sara Schondelmayer, and former employee Renee Johnson-
Maybee; Mark Freeman, Audit Division Administrator and Melinda Hamilton,
Audit Manager.
The AOPTA was established in 1992 to recognize exceptional efforts of the project
teams in BAO and is awarded every 6 months.
The performance audits have had a significant impact on the operations of the
Department of Human Services (DHS) Child Development and Care Program -
both in increasing the potential for the safety of children as well as the financial
operation of the Program. The public interest in the reports was very high. There
were a significant number of articles written on the reports, including articles in
other States. There was, and has been recent, high legislative interest in the
report resulting in our meeting with the House Fiscal Agency to discuss the audit
report and testifying at a recent appropriation hearing. The reports included 16
material findings and 6 reportable conditions. DHS began corrective action to
many of the findings, while the audit team was conducting fieldwork, because the
audit team maintained excellent and timely communication with DHS of the audit
issues as they arose.
In the performance audit of the Suitability of Child Development and Care
Providers, the audit team reviewed the Department's processes to perform
background checks including the criteria used by the Department to identify
unsuitable providers. In addition, the audit team performed numerous data
matches to determine the effect of the problems they had identified in the review of
the processes and criteria. The result was the identification of approximately 1,900
unsuitable child day-care providers that potentially placed approximately 4,600
CDC Program children at risk.
In the Performance Audit of Child Development and Care Program Payments, the
audit team reviewed case file information for a randomly selected sample of both
March 30, 2009 Page 3 Issue No. 1,738
Child Development and Care grantees (parents) and associated providers;
including billing histories, time and attendance records, grantee work schedules,
and children school schedules to determine the propriety of the childcare billings
and payments. The audit team identified numerous problems with DHS’s
oversight of the financial management of the program that resulted in potential
improper and, in some cases, potentially fraudulent Child Development and Care
Program payments of approximately $232 million.
In the Department's response to the audits, they indicated that they agreed with
the findings and that corrective actions were being implemented. Additionally, in
the Governor’s 2009-10 Executive Budget, there is a projected cost savings to the
Child Development and Care Program of $10 million from the completion of
provider background checks, a review of cases at high risk for error, verifying hours
of day care needed, and reviewing the accuracy of provider time and attendance
records – all recommendations within the audit reports.
The audit team used innovative and creative methodologies in addressing the
identified risks and inefficiencies of the audit. For example, rather than auditing
the providers of care and the recipients of care separately, they reviewed them
together. The approach provided for a more complete picture of who was providing
the care, the parents need to receive the day care assistance and the children who
were being provided the care. The audit team also evaluated the availability of
providers to provide the care they reported by looking to see if they had other
employment and determine if the hours of employment conflicted with the hours of
care. In addition, the audit team wished to minimize the time it took to obtain
copies at the DHS field offices. Consequently, they used cameras to obtain copies of
the necessary documentation. This reduced the time it took to review the case files.
The audit team demonstrated exceptional teamwork in completing the audit and
the production of the report. Because of the approach taken to review the files,
there was a significant need for the audit team to share information continuously
with the other audit team members as to what they were finding. This ability and
willingness to work together was evident in the audit results. In addition, the
audit team was on top of the audit fieldwork results and able to adjust the planned
number of sample items and DHS field visits because sufficient audit evidence had
been obtained through a smaller sample size.
In recognition of their selection, the audit team members will be Mr. McTavish’s
guests for lunch, will have a letter of commendation placed in their personnel and
evaluation files, and will have their names engraved on the AOPTA plaque.
Performance Audit of the School Report Card Program, Michigan Department of Education
Receives AOPTA
Award for six month period ending June 30, 2008
Scott Strong is pleased to announce that the Performance Audit of the School Report Card Program, Michigan Department of Education is the winner of the Audit Operations Project Team Award (AOPTA) for the six-month period ended June 30, 2008. The audit team included Cheryl Baker, Audit Supervisor; audit team members: Jim Berridge, Jason Werner, Andy Mitchell, former employee Tara Keener; Therese Regner, Audit Division Administrator; and Gerry Schwandt, Manager.
The AOPTA was established in 1992 and is awarded every 6 months to recognize exceptional efforts of the project teams in BAO.
The School Report Card program, Education YES - A Yardstick for Excellent Schools & Adequate Yearly Progress (AYP) provides performance measurement information for the schools, public, and parents. Accurate information is essential to assist schools in making improvements in student achievement and to assist parents in making decisions on where children should attend school. Miscalculations and inaccurate assessments of the performance of schools and school districts impact federal, state, and local level efforts to monitor schools and make improvements.
The audit crew overcame difficulties that resulted from MDE's limited agency personnel, lack of documentation, and the complexity of the calculations for the school report card grades issued for over 3500 schools. The audit crew developed several exhibits to provide the readers with information on the complex assessment calculations taken from 7 different data sources. Based on our audit preliminary findings, MDE immediately made several computer programming changes, which resulted in the expansion of the audit scope by an additional year to determine if MDE corrective actions were successful.
The report included 5 material findings and 7 reportable conditions. The agency took immediate action on many of the findings to prevent future calculation errors. In addition, MDE was provided additional state and federal funds to hire staff to work on the School Report Card process, data bases and statewide tests development.
In recognition of their selection, the audit team members will be Mr. McTavish's guests for lunch, will have a letter of commendation placed in their personnel and evaluation files, and will have their names engraved on the AOPTA plaque.
Performance Audit of High School Graduation and Dropout Rates
Receives NLPES Award
The OAG was presented with the NLPES Impact Award for the Performance Audit of High School Graduation and Dropout Rates at the 2008 NCSL Legislative Summit, which was held July 22-26 in New Orleans, Louisiana. (Please note article in Clippings Issue No. 1619.)
Congratulations to Laura Hirst, Audit Division Administrator; Mary Jo Koschay, Audit Manager; Mary Lowe and Karen Bosworth, audit supervisors; and team members: Julius Hampton, Eileen Schneider, Sara Schondelmayer, and former employee Mary Makovic.
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This page was updated on 4/17/09.