s 353.536 L72CCCM 1995 Legislative Audit Division State of Montana Report to the Legislature Perfomiaiice Audit Report December 1995 & Child Care Certification Monitoring Family Services Program Department of Public Health and Hwnan Services This report contains recommendations for improving program operations. Recommendations include: Changing the process for implementing policies and procedures. Evaluating current r^ulations to eliminate unnecessary requirements. Defining the authority of the central office and the r^ions. Developing a plan for regular, on-going communication among staff. Direct comments/inquiries to: L^isiative Audit Division Room 135 State Capitol PO Box 201705 MT Helena 59620-1705 95P-03 MONTANASTATELIBRARY 3 0864 0010 1659 4 PERFORMANCE AUDITS Performance audits conducted by the Legislative Audit Division are designed to assess state government operations. From the audit work, a determination is made as to whether agencies and programs are accomplishing their purposes, and whether they can do so with greater efficiency and economy. In performing the audit work, the audit staff uses audit standards set forth by the United States General Accounting Office. Members of the performance audit staff hold degrees in disciplines appropriate to the audit process. Areas of expertise include business and public administration, statistics, economics, computer science, communications, and engineering. Performance audits are performed at the request ofthe Legislative Audit Committee which is a bicameral andbipartisan standingcommittee ofthe MontanaLegislature. Thecommittee consists ofsix members of the Senate and six members ofthe House of Representatives. MEMBERS OF THE LEGISLATIVE AUDIT COMMII lEE Montana Legislative Legislative Audit Division BranCri ScoUA. Seacat, Legislative Auditor December 1995 The Legislative Audit Committee of the Montana State Legislature: We conducted a performance audit ofthe child care certification and monitor- ing processes at the Department of Public Health and Human Services. This report contains recommendations for improving activities related to licensing/registering and monitoring child care facilities in Montana. We wish to express our appreciation to Family Services Program staff for their cooperation and assistance. Respectfully submitted Scott A. Seacat Legislative Auditor Room 136. State CapitolBui/ding POBox 20170S Helena MT69620-1706 Phone406-444-3122 FAX406-444-9784 Digitized by the Internet Archive in 2010 with funding from IVIontana State Library http://www.archive.org/details/childcarecertifi1995mont Legislative Audit Division Performance Audit & Child Care Certification Monitoring Family Services Program Department of Public Health and Human Services Members ofthe audit staff involved in this audit were Susan Jensen, Jim Nelson, and Kent Rice. Table of Contents List of Tables and Figures iii Appointed and Administrative Officials iv Report Summary S-1 Chapter I - Introduction Introduction 1 Audit Objectives . 1 Audit Scope and Methodology 2 Data Limitations 3 Management Memorandum 4 Legislative Issues for Further Study 4 Preschools 4 Drop-In Child Care 5 Report Organization 5 H Chapter - Family Services Program History and Mission 7 Background Family Services Program Organization 7 Program Management 8 Regional Administration 9 Child Care Responsibilities 10 Child Care Defined 10 Licensed Centers 11 Registered Family and Group Homes 12 Legally Unregistered Providers 14 Child Care Provider Certification 14 Licensing Process 14 Registration Process 15 Recertification 15 Complaints About Care 15 Annual Inspections 15 Advisory Council 16 Funding 16 m Chapter - Child Legislative Intent Within the Montana Child Care Act Care R^ulation in is Being Met 19 Montana Only a Minimum Level of Protection Provided 20 Statutes do not Require Department to Search for Unregulated Facilities 21 Page i Table of Contents Conclusion: Responsibility for Children not Removed from Parents 21 Audit Findings 22 Chapter IV - Managing Introduction 23 the Program A Program Should Have a Clear Concept of Major Duties and Activities 23 Out-Dated Policies and Procedures 24 Process for Change has been Untimely 24 Use of Outdated Forms and Publications is Occurring ... 26 Current Procedures Could Contribute to Provider Noncompliance 26 Current Regulations May Contain Excessive Requirements 27 . . Family Services Should Evaluate Need for Requirements 28 . Missing Documentation does not Correlate with Complaints Received 29 Functional Authority 30 Functional Authority of Family Services Staff not Clearly Defined 30 Confusion About Authority is Creating Inconsistencies 31 , . Need for Sufficient Controls 32 Family Services Should Compile Relevant Management Information 32 Department Administrators Believe Management Information is Necessary for Other Programs .... 33 Planned Communication Between Central Office and Regional Staff is Necessary 33 V Chapter - Compliance Introduction 35 Most Inspections of Child Care Centers are Announced .... 35 Annual 20 Percent Inspections of Family and Group Child Care Homes are not Completed in Each Region ... 36 Provisional Certificates are Exceeding Required Time Frames 37 Agency Response Department of Public Health and Human Services 39 Page ii 1 List of Tables and Figures Table 1 Child Care Provider Totals (as of March 1995) 1 Table 2 Statutory Child Care Center Requirements (Sections 52-2-723, 734 & 735, MCA) 12 Table 3 Administrative Rule Requirements (General) 13 Table 4 CCDBG Funding (FY 92 through FY 95) 16 Figure 1 Family Services Program Organization (Program Management & Regional Administration) 8 Figure 2 PHHS Regional Boundaries 9 Page iii Appointed and Administrative Officials Department of Public Peter Blouke, Director Health and Human Services Hank Hudson, Administrator, Family Services Program Division* Shirley Brown, Administrator, Program Management Richard Kerstein, Coordinator, Field Services R^ions Shirley V. Tiernan, Eastern Regional Administrator Dave Bennetts, Northcentral Regional Administrator Betty Petek, Southcentral Regional Administrator Kathy Ostrander, Southwest Regional Administrator B. Warren Wright, Western Regional Administrator Served as director of the Department of Family Services until June 30, 1995. Page iv