Child Care Administrator’s Improper Payments Information Technology Guide

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CONCLUSION

Technology solutions hold great promise for helping States address the challenge of identifying and reducing improper payments in subsidized child care programs. States that have already implemented automated solutions to address improper payments are realizing benefits including: a reduction in improper payments, program savings, timelier provider payments, accurate time and attendance data, and improved work efficiency.

Because each State has a unique technical and programmatic environment, the recommendation of any one solution for all States’ child care automation needs is impractical and improbable. As States modernize information systems, child care programs may have opportunities to partner with other program, such as TANF or Food Stamps to be included in broader IT investments within the State, including: eligibility determination, case management, vendor management, financial management, and payment, reporting, and data analysis.

Broader enterprise investments or specific, child care program-only investments can take many different forms, including: in-house development, systems integration, the use of COTS products, contracting out for development and/or maintenance with a third-party, or a combination of the above. The best approach for each State can only be determined through careful analysis and planning, both in the selection of alternatives, as well as in the procurement of the technology solution.

Virginia achieved efficiencies through data brokering which allowed multiple agencies to share data both internally and externally with stakeholders, as well as with other State and Federal agencies. Oklahoma and Georgia achieved substantial cost efficiencies through the use of successfully implemented automated systems. Since implementation of their automated system in 2003, Oklahoma saved over $10 million, Georgia’s automation efforts increased payment accuracy, improved payment adherence to policy and regulations, and saved State staff time spent processing payments.

The Arkansas automated system effort improved case management accuracy, provided management reports and data, and established interfaces with other systems. System implementation reduced data entry errors, maintained data integrity, and validated information. System benefits also included the development of a data mining capability using COTS products, which identify risk factors using benchmark criteria to predicts and identify improper payments within the child care program.

Florida and Washington States gained significant efficiencies in eligibility and case management processes by re-engineering business processes and increasing automation, including: on-line applications for benefits, document imaging, electronic case files, and the implementation of a call center to process applications and status change reporting.

Creating efficiencies through automation can free scarce resources for direct service delivery and offer improved customer support. Regardless of the impetus for IT investment, State child care administrators need to partner with the Agency’s IT leadership and the leadership of other programs, such as TANF and Food Stamps, to leverage agency-wide future automation improvements.