Miss. audit finds millions paid for absent children at child care centers

An audit by the Mississippi Office of the State Auditor found taxpayers likely paid between $13.8 million and $30.9 million in federal fiscal 2024 for children who were reported absent from child care centers, the office said.

The report said about 20% of child care centers accounted for 90% of reported paid absences. Auditors also found more than 13% of sampled payments were made for days when recipient children were reported absent, and five centers accounted for more than 40% of unattended-yet-paid days among sampled centers, the report said.

The auditors blamed federal policy that pays providers based on enrollment rather than attendance. The report said current federal regulations allow providers to continue receiving payments for up to 60 consecutive days of absences before a child’s certificate may be revoked.

“We all remember the massive Minnesota daycare fraud and the ‘Learing Center,’” said White. “While we’ve not yet found something as egregious, taxpayer money is clearly paying centers in Mississippi when kids are not showing up.” Auditor White added, “As a father I know that if my kid missed school for even one day, I would get notified immediately. The fact that these centers still receive tax dollars even if the kids are gone for up to two months is completely crazy and a total waste of your tax dollars.” The full report is available on the auditor’s website under the “Reports” tab by searching “Child Care,” the office said.

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