Phase II Findings: Error Rate Methodology Pilot
Executive Summary, I. Introduction, II. Methodology, III. Measuring Improper Payments in Nine States, IV. Findings and Next Steps, V. Recommendations, Appendices: Appendix A: Arkansas, Appendix B: Colorado, Appendix C: Illinois, Appendix D: Ohio, Appendix E: Record Review Worksheet, Appendix F: Data Entry Form, Appendix G: Telephone Discussion Guide, Appendix H: Arizona, Appendix I: California, Appendix J: Kansas, Appendix K: Nebraska, Appendix L: New Hampshire
Appendix A: Arkansas
SITE VISIT SUMMARY
Overview of the Child Care Assistance Program
During 2005, the Arkansas Department of Human Services (DHS) reorganized all child care services under the Division of Child Care and Early Childhood Education (DCC/ECE). Previously, DHS Transitional Employment Assistance (TEA) staff at county offices determined eligibility for families receiving Temporary Assistance for Needy Families (TANF), while the DCC/ECE Family Support Unit staff determined eligibility for the low-income program and child care associated with foster care and child protective services. As of July 2005, all types of child care fall under the Family Support Unit of DCC/ECE, which received 26 new positions statewide with the transfer of the TEA/TANF cases to the unit.
Other child care system units within DCC/ECE include Pre-K and Program Development, the Special Nutrition Program, and Child Care Licensing. The Pre-K and Program Development Unit is responsible for State Accreditation Grants, Child Care Resource Centers, Training, teacher licensure, monitoring and evaluation, and the Arkansas Better Chance for School Success (ABCSS) Program. The Special Nutrition Program is responsible for the U.S. Department of Agriculture’s National School Lunch, Summer Food Service, Child and Adult Care Food Program, and special milk programs. The Child Care Licensing Unit handles the licensing of Child Care Centers and Child Care Family Homes, voluntary registration, and criminal record checks.
To be eligible for child care assistance in Arkansas, families must have income less than 60 percent of the State median income, live in Arkansas, have children younger than 13 years of age (or age 19 for special needs), and meet citizen eligibility requirements. Eligible families receive the following types of child care assistance.
- Extended Support Services (ESS)—Child care assistance is provided to 14,000 children (7,000 families) meeting 3-year increasing employment and training requirements of 20 hours per week during the first year, 25 hours per week during the second year, and 30 hours per week during the third year. Specific eligibility requirements for this program include participation in the TANF program.
- Transitional Employment Assistance (TEA)—Child care assistance is provided to 5,000 children (3,000 families) meeting TEA or TANF eligibility requirements. Recipients of this type of child care are transitioning out of the TANF program.
- Low-Income—Child care assistance is provided to 11,000 children (7,000 families) in low-income families when the parents work or are in training or other educational activities for a minimum of 32 hours per week. Eligibility is based on income, work or school hours, and pursuit of child support.
- Foster and Protective Services—Child care assistance is provided to 1,200 children (600 families) in foster care and 149 children (90 families) receiving protective services.
In State Fiscal Year (FY) 2004, Arkansas provided child care assistance to 30,572 children in 17,555 families. Arkansas has 100 percent licensure in 1,574 licensed child care centers, 952 child care family homes, and 118 registered or relative homes. The total licensed capacity for all types of care is 135,850.
To apply for child care, families submit an application to their local DHS office. The application is reviewed for basic eligibility requirements. Upon application, families are categorized into priority groups: teen parents, homeless, low-income without a fee, and low-income with a fee. All applicants are approved, denied, or placed on the waiting list within 45 days. The program goal is for a Child Care Specialist to see all applicants on the waiting list within 30 days. Of the 75 counties in Arkansas, the majority have fewer than 100 families on the waiting list, with the most in Pulaski County, which has 15 percent of the child care caseload. Prioritization for receipt of child care services is based on county, priority code, and application date. The individual’s eligibility is effective for 12 months.
Verification of applications is conducted first with a check against prior eligibility, then by checking with other systems (e.g., TEA/TANF, Food Stamps, child support enforcement, Social Security Administration, child welfare) as well as on-site visits by special nutrition or licensing staff. Arkansas issues vouchers for all participants in the subsidy program. Once the family is approved, the Child Care Specialist keys in the authorization certificate for the chosen child care provider. The family is authorized for 6 months of care. A redetermination takes place at the end of 6 months.
Providers must be licensed and sign a Child Care System Participant Agreement Form, which is valid for 2 years. This agreement states that “the provider is responsible for all overpayments, fraud, or legal proceedings against the provider for noncompliance” and that DCC/ECE “reserves the right to recoup payments through current and subsequent payments to the provider.” Providers must agree to an annual audit if they receive more than $100,000 per year in Federal or State payments. If fraud or a pattern of incorrect billing is suspected, audits are mandatory. DCC/ECE also mandates biannual training for providers.
All providers must have a valid license or registration before the Child Care Specialist issues a certificate. Approximately 36 percent of the providers currently bill through the Internet, while the remainder use a touch-tone telephone entry system for their billing. DCC/ECE processes billing information three times each week. The preferred method of payment is through direct deposit, but checks are still issued.
According to the 2004 “Building for the Future of Arkansas Children” report, there were more than 181,585 children, under the age of 5, living in Arkansas. More than 30 percent of those children lived in poverty. During the 2000 school year, approximately 38 percent of fourth-grade students scored below the basic test levels in math and science. To address this, Arkansas developed the Arkansas Better Chance for School Success (ABCSS) program in 2004, earmarking $40 million dollars to establishing quality pre-Kindergarten programs in areas where there is low academic achievement. The program emphasizes school readiness for children 3- and 4-years of age whose families are at or below 200 percent of the Federal poverty level. The areas targeted include:
- Areas where 75 percent or more of the fourth-grade test results were below proficiency benchmarks;
- School districts in academic distress as designated by the Arkansas Department of Education; and
- Areas of the State where designated elementary schools are in the “improvement” status based on Federal No Child Left Behind standards.
More than 14,000 children participated in the ABCSS during 2004 and the State’s goal is to increase that number to 22,000 during 2005.
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