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Extracted from Consolidated Report
This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.
Los Angeles County Grand Jury
• 2005-2006
Finding 13. Alleged child care fraud is referred by the APPs to the Dpss Welfare Fraud Prevention Section. This section
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Note: Missing finding numbers detected: F7, F8, F9, F10, F11, F12
Findings 12 findings
F1
Page 288
Making Los Angeles the safest big City in America
F2
Ensuring neighborhoods are good places to live 272 2005-2006 County of Los Angeles Civil Grand Jury
F3
Page 289
Getting where I want to go safely and reliably
F4
Page 289
Creating quality jobs, developing a competitive workforce, and enhancing Los Angeles’s business climate
F5
Page 289
Improving the quality, quantity, and affordability of housing in Los Angeles
F6
Page 289
Supporting a Los Angeles City government that works better and costs less The City’s budget summary was organized around these priorities, and presented information on City services across organizational lines that supported these priorities. The budget summary also presented a series of strategies for each priority. For example, the strategies to support the priority of making Los Angeles the safest big City in America were: • Reduce crime in Los Angeles by providing proactive crime prevention programs • Provide timely and appropriate emergency response • Save lives by preparing Los Angeles for natural disaster or terrorist incident • Provide a safe and clean neighborhood environment A particular strength of this effort was the use of Neighborhood Councils to identify service priorities for City government. Representatives of the Neighborhood Councils were surveyed regarding the priority of City services. These survey results were used in developing the Mayor’s Office service priorities. Although the Priority Based Budget approach was a step in the right direction, it does not meet the strategic planning needs of the City. Because this is a budget approach, it is by definition short-term and provides only a short-term perspective – tied to the one year budget process. Long-term strategic direction, ranging from 5 to 10 years, is needed. The budget is a powerful tool for implementing strategic direction. The strategic plan should be clearly linked to the budget process. However, the strategic planning process should precede and direct the budget process. Additionally, the Priority Based Budgeting approach does not appear to have had any substantive impact on City services. The budget summary organizes and presents existing City services in the six priorities. However, there does not appear to be any re- alignment of City functions or services to reflect these priorities. Implementation of an effective strategic plan should result in some structural and budgetary re-alignment of City functions and services to reflect the strategic vision and priorities. Finding: The Mayor’s Office “A Fresh Start” document provides some City-wide strategic direction for the City of Los Angeles. In May 2005 the incoming Mayor issued a document entitled “A Fresh Start.” This document established the top five priorities for Mayor in his management of City 2005 – 2006 County of Los Angeles Civil Grand Jury 273 departments. Each priority included several initiatives for making progress on these priorities. The following outlines these priorities and initiatives:
F13
Page 263
Alleged child care fraud is referred by the APPs to the DPSS Welfare Fraud Prevention Section. This section checks the referral to ensure that all pertinent documents are attached to the referral. DPSS investigates the allegations of fraud and may refer the case to the County of Los Angeles District Attorney for prosecution. The Civil Grand Jury is concerned that in a one year period hundreds of referrals from the APPs to the DPSS Welfare Fraud Section resulted in only ten referrals to the District Attorney’s office. Some DPSS Welfare Fraud Prevention Section personnel have inadequate training to detect evidence of fraud. .
F14
Page 263
Misrepresentation of employment is a major source of welfare fraud: • Some parents in the welfare to work program earn very little income - a few hundred dollars per month - but are reimbursed thousands of dollars per month for miles driven and child care expenses. • The same person (child care provider) who is paid by the County to provide child care services may also be receiving In Home Support Services (IHSS) from the County. The IHSS worker is provided to individuals to assist them in activities of daily living. A CalWORKS participant/parent could be employed to provide IHSS services to the same person (child care provider) providing their child care. There is no cross check. • Fictitious names of employers and places of employment have been “verified” by phone calls made to co-conspirators. • Some parents work as aides with the IHSS Program and receive thousands of dollars in mileage. • Some parents claim to work for relatives. • Some parents conspire with friends or relatives to fraudulently claim child care benefits and split the money. • Some parents claim to provide tutoring during the hours the child is in school. • Some child care providers claim hours for care during the hours the child is in school. 2005 – 2006 County of Los Angeles Civil Grand Jury 247
F15
Page 264
DPSS has stated that: “There is no limit, currently, to the number of hours allowed to the parent for paid child care per day”.
F16
Page 264
Trustline Registry Form: this form “….was created by the California Legislature to offer parents, employment agencies, Child Care Resource and Referral Programs (APPs and DPSS), and child care providers access to a background check conducted by the California Department of Social Services (CDSS) which includes checks of the California Criminal History System and Child Abuse Central Index (CACI) at the DOC and FBI records.” This form is processed for DPSS by the appropriate State licensing department and the State advises that it may take six weeks or more to complete.
F17
Page 264
The County of Los Angeles Administrative Memorandum Number 00- 10, dated 5-22-00, defines a license-exempt provider’s own children in the following way: “The definition of a license-exempt child care provider’s own children include all grandchildren, nieces, nephews, and first cousins for whom child care services are being provided. These children are considered immediate family members and there is no limitation on the number that may be cared for. In addition, the license-exempt provider may also provide child care services for the children of one other family. Child care payments may be authorized during the same time period for all of the children whose parents are participating in CalWORKS welfare-to-work activities or working.” This broad, unlimited definition of license-exempt provider’s own children encourages fraud and abuse of the system.
F18
Page 265
DPSS contracts with outside agencies to provide services for the GAIN case management in two new GAIN regional offices to perform vital steps in the CalWORKS process. These contract worker positions include case workers, supervisors, and clerk typists.
Recommendations 10
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R1Page 292The Mayor’s Office should develop a City-Wide strategic plan to provide an overall vision for the community, establish priorities for City government, and provide a framework for City department and agency strategic planning and operations. REPORTING PROGRESS ON CITY-WIDE ISSUES For any City government to be successful it must have the confidence and support of those it serves. Maintaining this confidence and support is often difficult because it is often difficult to clearly demonstrate what has been accomplished and what progress is being made. Is the City safer? Are neighborhoods improving? Is it easier to travel throughout the City? Are jobs and the economy improving?
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R2Page 292The Mayor’s Office should develop an annual “State of the City” or performance report that focuses on City government’s accomplishments, key outcome information, and progress toward the City’s strategic vision, goals, or objectives. 276 2005-2006 County of Los Angeles Civil Grand Jury CITY DEPARTMENT AND AGENCY STRATEGIC PLANNING In addition to a City-wide strategic plan, it is important that individual City departments and agencies use strategic plans to help define and focus each organization’s priorities and operations. Ideally, these strategic plans would be consistent with the framework established by a City-wide strategic plan. Developing strategic plans to direct government or agency operations has become a best practice in public sector management. Many states have passed legislation requiring each state agency to develop a strategic plan. The Federal government passed the Government Performance and Results Act requiring all federal agencies to develop strategic plans and performance indicators focused on outcomes or results. Many local governments require departments to develop long-term strategic plans, with some requiring they be updated yearly through development of an annual business plan.
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R3Page 294The Mayor’s Office should develop a consistent approach or model, with the assistance of the City Administrative Office, for City departments and agencies to use in developing and implementing strategic plans. The executive management team of the City of Los Angeles has a substantial amount of knowledge and experience in strategic planning, using several different models and approaches. This knowledge and experience can be used to develop a consistent approach or model for strategic planning. A guiding coalition, taking advantage of the City’s strategic planning expertise could be formed to develop and oversee the implementation of an approach or model for City departments to use in developing and implementing strategic plans. In addition to strategic planning expertise, the guiding coalition must include key City leaders with the position power and credibility necessary to drive the implementation of the model and ensure progress is made.
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R4Page 294The Mayor’s Office should establish a steering committee or guiding coalition of City executive management personnel to develop and oversee the implementation of an approach or model for City departments and agencies to follow in developing and implementing strategic plans. A best practice among local governments is to hold an annual strategic planning conference for departments and agencies to share and coordinate their strategic planning efforts. The benefits of such a conference could include: • Reinforces the need for and importance of department and agency strategic planning • Provides an opportunity to share and discuss City-wide strategic information such as key trends, issues, and priorities 278 2005-2006 County of Los Angeles Civil Grand Jury
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R13Page 263DPSS should develop and implement an enhanced welfare fraud detection and investigation training program for employees in the Welfare Fraud Prevention Section in conjunction with the Los Angeles County District Attorney and receive periodic State and local training. Personnel trained and employed by this program should be compensated commensurate with their increased responsibilities.
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R14Page 264If the parent is working for cash or for relatives, the payer should sign, under penalty of perjury, certifying the hours, the amount paid, and the work accomplished. A cross check between child care provider services and IHSS services, requiring copies of tax returns, and random field checks at the employment location should be mandatory. DPSS should eliminate child care allowance if employment legitimacy cannot be determined.
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R15Page 264Any paid child care in excess of ten hours per day for 5 days per week or 12 hours per day for 4 days per week should be monitored and verified on site by DPSS.
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R16Page 264Trustline Registry Form background check must be approved and received by DPSS prior to any authorization for child care (including License-exempt and Trustline Exempt). DPSS should work with the State to expedite the Trustline Registry Form.
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R17Page 264The definition of “own children” should be limited to only the biological or legally adopted children of the child care provider. A limit should be placed on the number of children cared for by one child care provider, based on the capacity of the provider and the site, to provide safe and healthy child care. 248 2005-2006 County of Los Angeles Civil Grand Jury
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R18Page 265Contract agency employees should be required by DPSS to undergo the same background checks required of DPSS employees in the same job category.