SUMMARY

Program expenditures increased steadily and were expected to have reached $371.2 million in FY 2008-09. We reviewed 400 case files and identified periods of ineligibility and a lack of appropriate documentation. Based on our statistically valid sample, we estimated that $16.7 to $18.5 million in improper subsidy payments were made in 2008. Based on a review of attendance records, we also estimated that child care providers received $4.0 million in improper subsidy payments as a result of errors or potentially fraudulent reporting.