Child Care Administrator’s Improper Payments Information Technology Guide

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B. Profile of System Solutions (continued)

4. Data Mining

Data mining refers to searching large volumes of data using automation in order to identify possible improper payments. States are beginning to use data mining tools to search for and analyze data from multiple sources to assist in identifying patterns or anomalies that indicate potential improper payments. The data mining technology extracts information from multiple systems, transforms it into a common format, and loads it into a database or data warehouse for analysis.

a. How the Tool Addresses Improper Payments

The solution addresses the challenges of preventing and identifying improper payments by:

• Assisting fraud workers with investigations and ongoing monitoring;
• Providing reporting capabilities to assist case workers in identifying anomalies;
• Enabling fraud detection and recovery activities; and
• Providing data for program and fiscal analysis.

b. Example System Name and State

Decision Support System (DSS), Arkansas

c. Implementation Overview

Arkansas uses a data-mining tool called the Decision Support System (DSS) to identify possible instances of improper payments. DSS compiles data from several sources, including: KIDCare (the child care automated eligibility system), the child care licensing unit, pre-kindergarten program, and the State’s food programs administered on behalf of the U.S. Department of Agriculture. DSS is user-friendly and adaptable to changes in the production systems environment. Arkansas uses DSS information to look for anomalies that indicate a potential error, including:

• Participation in multiple programs with conflicting eligibility requirements;
• Inconsistencies in reported demographic information;
• Inconsistencies in reported service providers (e.g., reporting different child care providers for the subsidized child care program and the food program);
• Overuse of services across programs; and
• Provider license violations.

DSS is a client-server application that uses business objects software for the query and reporting functions. Arkansas also uses Microsoft's SQL Server software for data mining and Microsoft’s Business Scorecard for Managers for strategic planning and performance indictor tracking and/or monitoring.

d. Costs

There is no cost information available at this time.

e. Challenges

Obtaining the essential data from the other production systems posed a significant challenge for the initial implementation of DSS in Arkansas. The initial extract, transformation, and load (ETL) process requires an enormous amount of State effort and resources.

f. Benefits

Solution benefits include:

• Ad hoc reporting capabilities that identify risk factors by using benchmark criteria, such as indicating that transactions occur during nonworking hours for a specific provider using the time-date stamp;
• Flexibility in report design and monitoring capabilities that enables managers to predict and identify improper payments; and
• Use of commercial off-the-shelf (COTS) software; therefore, reducing costs for special programming or training.