COMMISSION FAVORS FRAUD SPOT CHECKS VERIFICATION COULD HELP REDUCE CHILD-CARE WASTE.

Byline: TROY ANDERSON Staff Writer

An independent agency conducting random, unannounced field visits of welfare-to-work participants' homes, employers and child-care providers could prevent about two-thirds of child-care fraud in Los Angeles County, prosecutors said Monday.

``This is the most important recommendation we believe has been made,'' said James Cosper, head deputy district attorney in the Welfare Fraud Division.

The recommendation was one of 35 in a report by the county's Citizens' Economy and Efficiency Commission on how to detect and prevent the fraud before it occurs. The best and most cost-effective way is to detect it during the verification process when an application is made to the Department of Public Social Services, District Attorney Steve Cooley said.

``We investigate and prosecute hundreds of cases each year, but by the time they reach that stage, the damage already has been done,'' he said.

The report was ordered by the county Board of Supervisors earlier this year after the grand jury estimated that child-care fraud is costing taxpayers up to $500 million a year. The plan would need to be approved by the board, which could take months.

The scam typically involves welfare-to-work recipients who make up employers or exaggerate work hours to qualify for taxpayer-financed child care.

Then they split the money with friends and relatives who claim to be caring for the children.

Under the county proposal, workers would perform visits to determine the appropriateness of the child-care site, verify that the proper number of children is being cared for and determine whether the provider is working the number of hours claimed. The visits would be conducted during the initial application for child-care funds, within the next 12 months and once a year afterward.

The visits could be conducted by reserve law enforcement officers who volunteer their time, or by a small, independent agency that could be created to perform the function, Cosper said.

DPSS officials have objected to the recommendation, saying it would require 40,000 visits per year, which are ``workload intensive and not cost-effective.'' Instead, the agency is proposing the possibility of a small pilot project that would randomly visit child-care providers.

But Cooley said the county proposal is the way to go.

``This program is there for those who truly need it,'' he said. ``It is not a program for those who think they can make a quick, illegal buck for themselves by cheating the taxpayers who fund the program and depriving legitimate recipients from getting the child care necessary to help them develop the skills that ultimately will get them off the welfare rolls.''

troy.anderson(at)dailynews.com

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WHAT'S RECOMMENDED

Highlights of the Citizens' Economy and Efficiency report on how to reduce child-care fraud in Los Angeles County:

Develop an independent program that would conduct unannounced visits of welfare-to-work

participants' homes, employers and child-care providers.

Pursue legislation that would permit the county to use collection techniques to recover erroneously paid child-care benefits.

Ask the district attorney to establish a Child Care Welfare Fraud Hotline and have the number appear on child care applications and other related documents.

Develop a public information campaign to publicize successful child-care welfare fraud prosecutions to curtail fraud.

Create a brochure to inform child-care applicants of their rights and responsibilities and penalties for committing fraud.

Require child-care applicants to appear personally before Department of Public Social Services workers to be photographed and to provide Social Security numbers for their children.

Hire a Fraud and Error Control Officer to oversee efforts to reduce fraud.

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WHAT'S RECOMMENDED (see text)