The California Department of Social Services (CDSS) is committed to safeguarding the compliance of child care subsidy payments and takes potential misuse of funds seriously.
If you suspect or would like to report potential child care subsidy fraud, please email ChildCareSubsidyFraud@dss.ca.gov.
When submitting a report, please include the following information, if available:
- Your name and contact information
- Date of incident
- Facility or provider name
- Facility or provider address
- Facility or provider license number
- Suspected fraudulent activity
What is Child Care Subsidy Fraud
Child care subsidy fraud can occur in a variety of ways. Generally, child care subsidy fraud involves intentionally providing false information or withholding certain information to obtain child care benefits that would otherwise not be received.
While not exhaustive, the following list are incidents…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.