OKDHS - OAC 340:2-11-150. Child care payments

340:2-11-150. Child care payments

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Issued 7-1-05

ITS only revised 7-1-06

(a) Payments. Payments are made on behalf of Oklahoma Department of Human Services (OKDHS) clients to providers of child care services per OAC 340:40-13-5. The services and payments are supported by provider contracts on file with the Family Support Services Division (FSSD).

(b) Overpayments. Provider overpayments that occur as a result of agency or provider error are described in OAC 340:40-15-1. Any overpayment over $500 when the child was not in care may result in felony fraud charges against the provider. • 1

(c) Collection of overpayments. Finance Division recoups all funds associated with overpayments in equal installments, not less than 10% of the overpayment, per month until the overpayment is satisfied, except when the viability of the child care facility is in question.

(1) Child care facilities whose continued viability is at risk due to collection of the overpayment is reviewed by the Finance Division for other repayment plans.
(2) Repayment plans do not exceed 12 months.
(3) A child care provider whose contract is subsequently cancelled due to an Office of Inspector General (OIG) investigation has all available funds withheld to satisfy any remaining overpayments.

(d) Liquidated damages.

(1) OKDHS can impose liquidated damages if certain rules in the contract are violated. Specifically, the child care provider:
- (A) is in possession of a client's Access Oklahoma electronic benefit transfer (EBT) card;
- (B) swipes the EBT card through the point of service (POS) device; or
- (C) knows the client's EBT personal identification number (PIN).
(2) The percentage of liquidated damages increases with each violation that is assessed per Section 2-718 of Title 12A of the Oklahoma Statutes.
(3) When OIG determines an EBT card was in the possession of or swiped through the POS device by a child care provider, the:
- (A) first violation results in liquidated damages of 10% of the total payment(s) during the month the violation occurred; • 2
- (B) second violation results in liquidated damages of 20% of the total payment(s) during the month the violation occurred; • 2
- (C) third violation results in liquidated damages of 30% of the total payment(s) during the month the violation occurred; and recommendation to FSSD for cancellation of the provider's contract. • 2

(e) Collection of liquidated damages. Finance Division recoups all funds associated with liquidated damages as described in (1) and (2) of this subsection.

(1) The full amount of liquidated damages is applied against the first available payment and any sequent payments until the amount is collected.
(2) If the contract is subsequently cancelled due to an OIG investigation, all available funds are withheld to satisfy any remaining overpayments.

INSTRUCTIONS TO STAFF 340:2-11-150

ITS only revised 7-1-06

1. (a) When the Office of Inspector General (OIG) becomes aware the provider was paid for care not given, OIG is responsible for:

(1) documenting a full overpayment within the audit report;

(2) submitting the audit report to Finance Division;

(3) submitting the audit report to Family Support Services Division (FSSD) with a recommendation for cancellation of the child care provider's contract if appropriate; and

(4) referring, as appropriate, to the district attorney for review of felony fraud charges against the provider, if overpayment is in excess of $500.

(b) Finance Division is responsible for recouping the overpayment in accordance with rules.

2. (a) OIG is responsible for:

(1) warning the provider to cease the practice;

(2) reporting the violation(s) to Finance Division; and

(3) notifying FSSD of the contract violation(s)

(b) Finance Division is responsible for assessing and applying liquidated damages in accordance with rules.

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