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July 1, 2026

182 Appendix V Red Flag Reports and Referrals Provider Red Flag Reports Red Flag Reports are automatically generated reports available in WebI. The Red Flag Reports identify providers that may be violating a policy or where there is a reasonable suspicion of fraudulent activity. The findings from these reports are then utilized to generate possible referrals.

Provider Red Flag Reports in WebI include (but are not limited to): • Provider Overcapacity Report • Unusual Payment Timing Report • Unusual Revenue Growth Report

Client Red Flag Reports Red Flag Reports identify potential program integrity issues. Each report identifies a set list of criteria that have been flagged for review. Local agencies should use these reports as a source of referrals for further review and to identify fraud trends. The Client Red Flag Reports are located in Web Intelligence (WebI).

Reports include: • Cards Replaced Within 12 Months • Expungement • Funds About to Expire • Inactive EBT Cards For More Than 30 Days With a Balance Amount

The Bureau of Child Care Subsidy Administration (BCCSA) recommends local agencies prioritize reviewing the Expungement report and the Inactive EBT Cards For More Than 30 Days with a Balance Amount report. The Expungement report identifies cases where funds have aged off the EBT cards after not being used within a 90-day period. The Inactive EBT Cards For More Than 30 Days With a Balance Amount report identifies cards that have not been used for 30 calendar days and have a balance. After funds have aged off the card, they cannot be reissued.

Local agencies must perform a detailed case review on cases identified in these reports. This includes interviewing parents and/or providers to determine if the authorized hours are correct. After reviewing the case and verifying that no payment to the provider is necessary, the local agency may end a child’s authorization and retract all subsidy funds in the parent’s account.