Child Care Administrator’s Improper Payments Information Technology Guide

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PREFACE

The Improper Payments Act of 2002 directs Federal agencies to initiate actions to identify and prevent improper payments in all Federal programs and to measure and report on their progress. In response to this challenge, the U.S. Department of Health and Human Services (HHS) and other Federal agencies continue to implement initiatives aimed at preventing and identifying improper payments in their programs, including the subsidized child care programs implemented by States using funds from the Child Care Development Fund (CCDF). These initiatives include changes in policy, increased monitoring, the implementation of financial incentives and penalties, establishing measurements, and support for automated system solutions.

To support the reduction of improper payments in subsidized child care programs, the Child Care Bureau (CCB) in the Administration for Children and Families (ACF) at HHS initiated several projects to understand current State efforts and to assist States in analyzing and addressing their improper payments. Through an ongoing dialogue with States, the CCB determined that State child care administrators needed additional information on potential automated solutions that can assist in the prevention or identification of improper payments and guidance about information technology (IT) investment approaches and procurement practices.

In response, the CCB commissioned the writing of this Child Care Administrator’s Improper Payments Information Technology Guide to provide State administrators the following:

• A description of the major software solutions used by States to identify and prevent improper payments;
• The advantages and disadvantages of the various approaches to information systems investment; and
• Guidance on procuring IT to support automated solutions that prevent or identify improper payments.

Chapter I profiles a number of current information technology solutions used by States to prevent and identify improper payments in the subsidized child care program. These solutions include automated support for intake and eligibility determination, provider management and payment, reporting, data mining, and time and attendance tracking.

Chapter II discusses the major conceptual approaches to IT investment, and offers advantages and challenges of each approach. Additionally, Chapter II offers guidance on identifying and evaluating alternative solutions.

Chapter III focuses on the procurement of IT products and services including guidance on important steps involved in constructing a high quality Request for Proposals (RFP), guidance on how to prevent driving up the cost of bids, and tips for evaluating proposals.

Automated systems can provide valuable support to States’ efforts to address improper payments. The information, analysis, and recommendations contained in this guide are intended to highlight possible IT solutions and to provide a framework to assist child care administrators in making prudent IT investment decisions. CCB recognizes that States best understand their clients, business processes, and information systems environments and anticipates that the guide will serve as a valuable resource, not specific guidance. As an additional tool, a Glossary is provided to assist child care administrators with a quick reference of commonly used IT terms. These terms apply to the acquisition, development, implementation, or support of automated systems.

This guide was prepared by the State Information Technology Consortium under contract with Walter R. McDonald & Associates, Inc.