KIDS AT RISK?: A state government report harshly criticized child care oversight in New Mexico, alleging potential for fraud and reporting three instances of sex offenders living at the same site as child care facilities.
By Rob Nikolewski │ New Mexico Watchdog
SANTA FE — Too many of New Mexico’s child care centers are rife with sloppy and lax record-keeping, potentially costing taxpayers millions of dollars. On at least three occasions, registered sex offenders were living at the same address as child care locations, a state government report found.
In a 75-page report released Wednesday at the Legislative Finance Committee, staffers say they found “clear examples of potential fraud and overpayments that go unreported,” as well as the potentially dangerous situation with sex offenders.
“I think it’s all of our responsibility to make sure children are safe, Children, Youth and Families Department Secretary Yolanda Berumen-Deines said.
Where does the buck stop?
“I feel ultimately that this agency — because we’re responsible for licensure and oversight — needs to take that responsibility,” Berumen-Deines said.
CYFD recorded 54 instances in 2012 of child care centers refusing to keep attendance of toddlers in their centers where an estimated $4.3 million taxpayer dollars was spent on subsidized care.
Based on estimates from the U.S. Department of Health and Human Services, a potential $11 million could be lost because of weak program integrity.
“New Mexico is identifying only a small percent of estimated improper payments made each year to child care,” the LFC report said.
In one case, a CYFD surveyor noticed missing records for children coming and going from one facility over a period of time. When the surveyor finally came across the records, all forms supposed to contain parents’ signatures had been completed in the same handwriting.
Children and predators
Perhaps the most disturbing aspect of the report focused on sex offenders.
“The findings were immediately shared with CYFD,” the report said. “The agency suspended the registrations of the three providers” but the report noted that in addition to those three instances, “some sex offenders live next door to childcare providers.”
“We followed up immediately and we confirmed that (the registered sex offenders) had moved into those homes. They were residing there,” Berumen Deines said. “We immediately removed their registrations.”
The LFC report recommended the department cross-reference sex offender registries when conducting background checks on child care providers.
Berumen-Deines said CYFD is working with the New Mexico Department of Public Safety to fix the problem and that an automated automated program to issue monthly and weekly reports to identify matches to the sex offender database will be operational by the end of this year.
“They need to make sure they have enough staff to oversee these problems,” Rep. Luciano “Lucky” Varela, D-Santa Fe, told New Mexico Watchdog.
CYFD officials defended the fraud rate, noting New Mexico has a 4.5 percent error rate in payments to child care providers, compared to a rate of 11.9 percent nationally.
“It’s not as dismal” as the LFC report indicates, Berumen-Deines said. “While I can appreciate how helpful it would be to have staff solely dedicated to auditing all of our child care centers, I do think our resources are better employed in surveyor services and assistance to the child care providers to develop their programs and improve their services.”
CYFD officials said the current capacity for early childhood programs is 70,250 children, and the agency budget for child care is $93 million this year.
LFC staff also called for audits of attendance at child care facilities.
“We’re not opposed to on-site attendance records,” CYFD Director of Early Childhood Services Diana Martinez-Gonzalez told committee members, “but we don’t have the resources … the people.”
“Do you have the funding?” Varela asked.
“No,” Martinez-Gonzales responded.
“I’m not going to crucify them,” Rep. Jim White, R-Albuquerque, said. CYFD “has a big job and they have to account for child care providers all over the state. Some of them are basically an adult sitting a couple of kids in front of the TV, but there has to be accountability.”
New Mexico has already boosted spending for early childhood programs. Since fiscal year 2012, the Legislature has increased its spending on early childhood education by 44 percent.
The child care assistance program administered by CYFD serves about 20,000 children up to age 13 at a cost of $95 million, and the federally-administered Head Start program serves about 8,000 children in New Mexico for $61 million, with $43 million focused on preschool services for 6,500 children.
Another LFC recommendation calls for establishing an independent Office of Inspector General at CYFD, reporting to the Legislature and the governor.
A similar proposal was introduced in last year’s legislative session. Senate Bill 227 would have established inspectors for nine different departments, but the bill died in committee.
“Something is being done,” Berumen-Deines said. “When we have these (LFC) evaluations it’s for quality improvement. We’re always open to identifying those areas where we can continue to improve. It’s not an indication that our services are not of a quality level to begin with.”
Click here to read the entire 75-page LFC report.
Contact Rob Nikolewski at rnikolewski@watchdog.org and follow him on Twitter @robnikolewski
