Page 178

July 1, 2026

177 Appendix III Local Agency Program Integrity Management This Appendix provides department expectations and requirements for local agency program integrity efforts.

Local Agency Fraud Plans Local agencies are required to submit an annual Agency Fraud Plan for review to the Bureau of Child Care Subsidy Administration (BCCSA) as required by the annual Child Care Contract Scope of Services. The Scope of Services requires that the Agency Fraud Plan identify local agency operations, outline procedures, and show responsibility for ensuring program integrity as required under the Child Care Fraud Plan Guidelines. Under the contract, local agencies must follow all policy and procedural requirements.

Subcontracting Under the terms of the Child Care Contract, local agencies may subcontract for all or part of the required program integrity activities. The local agency is responsible for ensuring that subcontractors are following all required fraud investigation and overpayment procedures.

Agency Operations Audits Additional audits may be performed by the BCCSA Program Integrity Section to further support local agencies in identifying errors in the Wisconsin Shares program, and to recognize their accomplishments in correctly completing case eligibility and authorization processes. Local agencies are required to correct any discovered errors. Local agencies may be required to complete a corrective action plan to prevent future errors of the same type.

Data Tracking Requirements Local agencies are required to maintain data and total counts of the following information to be provided to the department each year in their Agency Fraud Plans: • Fraud allocation amount • Amount of allocation spent per year • What the fraud allocation was spent on • Total number of: o Client case referrals o Open client case referrals o Administrative Errors* o Client Errors* o Client IPVs established o Client investigations completed