Module 6

Auditing and Your Rights

By signing the Child Care Provider Contract to receive child care subsidy payments, you grant DHS permission to verify that the conditions of the contract are being met.

The contract also provides you with certain rights and responsibilities.

This module will explain the role of the Office of Inspector General (OIG) and your rights and responsibilities.

Audits and Investigations

Badge: Office of Inspector General; Investigation, Audit & Review.

At DHS, it is the responsibility of the Office of the Inspector General (OIG) to conduct child care related audits and investigations.

Audits are held to make sure:

  • Providers have been correctly paid by DHS
  • The rules concerning the use of the EBT cards have not been violated
  • Other requirements of the contract are being met

All contracted child care providers are subject to being audited with or without notice. This is specified in your Child Care Provider Contract with DHS.

Facilities are selected for audits in one of three ways:

  • By a “random sampling” which is selected by computer from contracted facilities
  • By an approved complaint/referral received by the OIG office
  • By a system alert of suspicious or unusual EBT card activity
person marking errors in billing sheet.

You may or may not be notified ahead of time that your facility is going to be audited.

You and your staff must cooperate with OIG staff if your facility is selected for an audit.

You should know that it is a FELONY to fraudulently present a claim to the state, either electronically or on paper.

Each fraudulent claim for each recipient filed within a claim month can constitute one count.

a jail cell.

Each count is punishable by:

  • A fine not to exceed $10,000
  • Imprisonment for a term not to exceed two years
  • Or both fine and imprisonment

OIG also conducts child care investigations.

Investigations are conducted to make sure that contract requirements about maintaining a drug-free workplace and proper usage of EBT cards are being upheld.

An investigation may also occur if fraud is suspected.

OIG employees will notify you of the nature of the investigation and the process that will be followed when they appear at a facility to conduct an investigation.

You and your staff must cooperate with OIG staff if your facility is involved in an investigation.

Check Your Understanding

Now try answering this question.

Which of these instances would prompt an OIG audit or investigation?

Rights and Responsibilities

The Child Care Provider Contract with DHS provides you with certain rights.

First, you have the right to timely notification of any change in your contract status as a child care provider.

woman holding hand forward, palm outward, indicating no or refusal.

Further, it is your right to be notified, in a timely manner, of any change in DHS policy or procedures regarding child care provider issues.

You will be notified of these changes through provider alerts and through mandatory training.

You also have the right to refuse care if the parent fails to pay the family share co payments.

Remember that you are responsible for:

  • Obeying all the terms of the Child Care Provider Contract
  • Making sure that parents are swiping correct attendance information through the POS machine and voiding any swipes that are not correct
  • Completing and submitting all manual claim forms in an accurate and timely manner
  • Collecting any co-payment owed by the parent AND giving them a receipt for the amount received

You are also responsible for:

  • Letting the family and the family’s worker know if you have any problems right away
  • Regularly reviewing the online provider handbook for guidance or new information
  • Making your staff aware of DHS policy and procedures

The Provider Handbook

The “Contracting with DHS for Child Care Subsidy Payments” Provider Handbook is available online at

Woman on computer reading handbook.

As mentioned previously, reviewing the Provider Handbook is an important part of your Rights and Responsibilities.

This handbook was created as a reference tool for you. Take advantage of it. Use it as a continuing resource.

Remember: You are responsible for the current content of the Provider Handbook and any future updates. As such, you should thoroughly explore the contents of this handbook and refer to it regularly.

You and your staff are responsible for knowing and complying with the policy and procedures in the handbook.

One Final Caution

One final reminder:

Be sure to read the Child Care Provider Contract thoroughly and make certain that you understand it before signing.

DO NOT SIGN the contract unless you FULLY UNDERSTAND AND AGREE TO the terms of the contract.

Check Your Understanding

Once again, check your understanding to make sure that you are ready for the test.

Which of these is NOT a right provided to you by DHS?


Woman reading this course on a tablet.

In this module you learned about:

  • Child care audits and investigations
  • The Office of Inspector General
  • Your rights and responsibilities
  • The Provider Handbook

Click the button labeled Final Evaluation below to continue to the final module.