Audit raises questions about early childhood spending

By Martin Finucane, Globe Staff

The state’s early childhood agency needs to do a better job monitoring the hundreds of millions of dollars in state and federal funds it distributes to child care providers, the state auditor said today.

The Department of Early Education and Care administered nearly $460 million in state aid and federal grants last year. But in January 2007, it suspended on-site monitoring visits that were intended to make sure the money wasn’t being misused, turning to desk reviews instead.

“Without on-site visits to providers, it is highly unlikely that inappropriate costs will be identified and refunded to the state and federal governments,” State Auditor Joe DeNucci said in a statement.

The money is primarily intended to provide services for low-income people, said Glenn Briere, an auditor’s spokesman. If problems are found with eligibility documentation -- providers must either submit proper documents or return the funds to the agency.

In one recent seven-month period, on-site visits resulted in $330,000 being returned to the agency, Briere said.

The agency told the auditors it was filling a vacant Director of Audit Resolution position and would hire additional contract monitoring personnel. It also said it would develop internal controls to ensure that the money is spent correctly.

DeNucci said he was encouraged and urged continued improvements.

“In this time of limited resources, we must make sure that these critical services for children go only to families that truly need assistance,” he said.

A spokesman for the Department of Early Education and Care didn’t immediately have a comment.

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