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Page 150 Iowa Department of Health and Human Services Employees’ Manual Overpayment Recovery Title 13: Social Service Resources Chapter G: Child Care Assistance June 14, 2024 Sanctions for Provider Fraud Sanctions for Provider Fraud Legal reference: 441 IAC 170.7(234) Policy: If a child care provider is convicted of fraudulently receiving Child Care Assistance (CCA) funds, they are subject to sanctions from the CCA program. There are three levels of sanctions that may be imposed: ▪ Review of the provider’s claims for payment from the CCA program. ▪ Suspension from receipt of CCA payments for six months. ▪ Ineligibility to receive further CCA payments. The type of sanction imposed on the provider depends upon the nature of the fraudulent practice. The Department’s central office staff will consider the following factors in determining what type of sanction to impose: ▪ Prior violations or sanctions. ▪ Seriousness of the violation. ▪ Extent of the violation. ▪ Whether a lesser sanction will be sufficient to remedy the problem because the provider has received education or instruction and is willing to follow program rules in the future. Procedure: Department staff take the following steps when imposing a provider sanction: 1. Upon notification by the Department of Inspections, Appeals, and Licensure (DIAL) that a provider has been convicted of fraudulently receiving CCA funds, the Department’s central office staff will determine which level of CCA sanction will be imposed. 2. Once the Department’s central office has determined the type of CCA provider sanction that will be imposed, the Department’s child care staff for the county where the provider is located will be notified by e-mail to send the provider a Notice of Decision: Child Care to cancel the Child Care Assistance Provider Agreement and impose the sanction. The Department’s central office will also send this e-mail to the state level PROMISE JOBS coordinator who will notify the appropriate PROMISE JOBS county offices. The effective date of the Notice of Decision: Child Care imposing the sanction shall be the first of the month following timely and adequate notice requirements. A copy of this notice should be sent to the corresponding PROMISE JOBS county office. If a provider attempts to reapply to receive CCA funding for child care before the sanction has ended, send the provider a Notice of Decision: Child Care to deny the request for a new Child Care Assistance Provider Agreement.