Thursday, September 23, 2010

Texas' child care subsidy system lacks measures to prevent fraud, report says

AUSTIN — Texas has few safeguards against possible ripoffs by people posing as financially struggling parents who need child care and relatives eager to bill the government for providing the service, congressional investigators have found.

Unscrupulous child care providers could use nonexistent children to defraud the program, in which Texas this year distributed nearly $700 million in federal subsidies so low-income families could place their 115,000 children in care, allowing parents to work or be retrained, the General Accounting Office said in a report this week.
Garrett reports http://dallasne.ws/cf4m40

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