Minnesota Crack Down on Childcare Subsidy Fraud

July 8, 2015 | Norbert Haupt


According to the StarTribune, state investigators in Minnesota have uncovered a fraud pattern abusing the childcare subsidy program intended for poor families. Childcare providers have been found to actively recruit low-income parents as employees of the providers in exchange for enrolling their own children using subsidized childcare funds.

Controltec’s Program Integrity system is designed specifically to help agencies detect such potentially fraudulent behavior by analyzing patterns in data related to childcare licensing, family eligibility, child schedules, child attendance and payment reimbursement. The system detects anomalies in the data patterns and rates and ranks the results, coming up with possible fraud scores. These scores can then be used by fraud investigators to help them focus on cases that should be reviewed or audited.

Controltec’s KinderTrack and KinderConnect products are designed to track all data related to childcare subsidy operations and track and verify attendance of children in care. Mobile apps allow parents to check their children into the provider facility. When they do that, it is less likely that a provider can “fake” childcare services or bill for services that were not actually provided.