(The Center Square) – Department of Children, Youth and Families Secretary Tana Senn refuted claims of fraud and indicated more funds are needed to conduct additional audits during a virtual appearance before the department’s oversight board Thursday.
The DCYF Oversight Board was provided an update from Senn related to a recent audit that revealed $37 million in potential overpayments and other issues involving daycare providers receiving taxpayer subsidies.
The two agencies responsible for the state’s Working Connections Child Care Subsidy program are DCYF and the Department of Commerce.
The Center Square attended Thursday’s Oversight Board hearing in Olympia to ask Senn about the questionable payments that were uncovered after nearly six months of TCS investigating home daycare providers across King County.
Senn gave her remarks by video, and could not be questioned in person.
She told the board the audit, conducted by Washington State Auditor Pat McCarthy did not find $37 million in fraud, but rather the sampled payments found questionable billing documentation, with missing receipts or missing signatures in that amount.
Senn said media reports of potential fraud have led to “anxiety” in the provider community, which inspired an oversight board member to respond.
“It was more than an anxiety, for some received death threats,” said board member Lois Martin. “Especially for communities of color. I just want to clarify that. And we look at the early learning workforce in Washington is disproportionately black women, immigrant women, and women of color.”
Sec. Senn responded to Martin’s comment.
“Thank you for underscoring the death threat component, the real-life impacts of the threats and the extra scrutiny…..this had real impact on providers and families,” Senn said.
The Center Square has asked the oversight board for documentation of providers receiving death threats.
Oversight Board Member Sen. Nikki Torres asked Senn about media coverage over the last several months, including coverage by The Center Square of large subsidy payments to home daycares where upon visiting, it appeared there was in many cases, no daycare operation.
“I know there were some subsidy payments that were uncovered by reporters. Is that going to be looked at?” Torres asked.
Senn said all providers are scrutinized as needed.
“All of our childcare providers are visited annually…and then we have those we audit when questions arise. So, if anybody from the public, anybody from the media, any licensor, or any parent has a question or concern and they report it to us, we do want to audit that. We are constantly looking into any concerns,” said Senn.
After the meeting, Torres told TCS she was frustrated at the way the meeting was run with little time given to discussion of the audit and issues with the daycare subsidies which have dominated headlines.
“I’m sure there are good actors and bad actors. I know quite a few good childcare providers and home day cares in my district in central Washington,” Torres said.
“Those ones are legit, but I’m sure there are some bad actors, just like there is in everything else.”
“They really should put a focus on that. It’s about earning the public’s trust because at the end of the day, that is who is funding the bill,” she added.
Senn suggested her agency will need more money to hire additional staff to comply with a new law that requires DCYF to conduct more frequent audits.
The Center Square stopped by DCYF offices after Senn concluded her virtual remarks to the oversight board, in hopes of getting further questions answered, but were told she was not in the office.
The Center Square will continue attempting to schedule an interview with Senn.
