1. Conducting site visits.
2. Collecting and reviewing the provider’s attendance and billing records.
3. Interviewing persons of interest.
4. Gathering supporting case information.
(b) The local agency’s investigation finds that the child care provider intentionally submitted false, misleading, or irregular information to the department or failed to comply with the terms of the child care subsidy program and failed to provide to the satisfaction of the agency or the department an explanation for the noncompliance.
(c) The local agency calculates and establishes the amount of the overpayment made to the provider as a result of the provider’s actions under par. (b).
(d) The local agency’s actions in pars. (a) to (c) result in the department, in conjunction with the local agency, withholding payments to be made to the child care provider under s. 49.155 (7m) (a) 2., Stats. (e) The withholding of payments under par. (d) is upheld in the final review under s. DCF 201.07 or the provider does not request a review or appeal. (f) If directed by the department, the local agency requests the district attorney to consider criminal prosecution of the child care provider.
(3) PAYMENT AMOUNT. (a) The department shall determine the amount of an incentive payment earned by a local agency under sub. (2) by multiplying all of the following amounts:
1. The statewide average monthly subsidy payment per child in the preceding fiscal year.
2. The average monthly number of children for whom payment was authorized to the provider under s. DCF 201.04 (2g) in the 12 months before the local agency or the department withheld payments under sub. (2) (d). If payment was not authorized to the provider for all of the preceding 12 months, the average monthly number of children for the number of months that payment was authorized. 3. 1.5 months.
(b) An incentive payment earned by a local agency for identifying fraud in the child care subsidy program under sub. (2) by a single child care provider may not exceed $25,000.
(c) A local agency may earn more than one incentive payment per year if the local agency identifies fraud in the child care subsidy program under sub. (2) by more than one child care provider in that year.
(4) USE OF INCENTIVE FUNDS. A local agency that has earned an incentive payment may request that the department distribute the funds for any of the following purposes:
(a) The local agency’s child care fraud contract with the department for the following year.
(b) The local agency’s current child care fraud contract with the department if the request is made in the first half of the contract term.
Note: Contracts with counties are based on a calendar year and contracts with tribes are based on a federal fiscal year.
(c) Any purpose that is consistent with the state plan under 42 USC 602 for the use of federal funds under the Temporary Assistance to Need Families program under 42 USC 601 et seq for the time period when the funding is distributed if the state plan has been approved by the federal administration for children and families. Note: The currently-approved state plan is available on the department’s website, http://dcf.wisconsin.gov, by clicking on About Us/Department Programs/Temporary Assistance to Needy Families. (d) If par. (a) to (c) do not apply, any purpose for which funds under the Temporary Assistance for Needy Families program may be used under 42 USC 601 et seq if the federal administration for children and families approves an amendment to the state plan under 42 USC 602 that allows that purpose. SECTION 4. INITIAL APPLICABILITY. This rule first applies to investigations under s. DCF 201.41 that were initiated on or after January 1, 2012. SECTION 5. EFFECTIVE DATE. This rule shall take effect the first day of the month following publication in the Administrative Register as provided in s. 227.22 (2) (intro.), Stats.
