G-100: General Fraud Fact-Finding Procedures

Workforce Development Boards (Boards) must develop procedures consistent with fraud prevention provisions in the Texas Workforce Commission (TWC)-Board Agreement for the prevention of fraud by a parent, provider or any other person in a position to commit fraud.

Rule Reference: §809.111(a)

Boards must be aware that in relation to child care services, an individual commits fraud if, to obtain or increase a benefit or other payment, either for the individual or for another individual, he or she does either of the following:

  • Makes a false statement or representation, knowing it to be false
  • Knowingly fails to disclose a material fact

Rule Reference: §809.111(b)

This definition is consistent with the definition of fraudulently obtaining benefits under Texas Labor Code §214.001.Boards must ensure that procedures for researching and fact-finding for possible fraud are developed and implemented to deter and detect suspected fraud for child care services in their local workforce development areas.  Procedures must include provisions for suspected fraud to be reported to TWC in accordance with TWC policies and procedures.

On review of suspected fraud reports, TWC may either accept a case for investigation and action at the state level, or return the case to the Boards or its child care contractor for action including, but not limited to, one of the following:

  • Further fact-finding
  • Other corrective action as provided in this guide or as may be appropriate

Boards must ensure that a final fact-finding report is submitted to TWC after a case is returned to the Boards or its child care contractor and all feasible avenues of fact-finding and corrective actions have been exhausted.

- Rule Reference: §809.111

In accordance with WD Letter 21-16, Change 1, “Requirements for Reporting and Fact-Finding for Suspected Fraud, Waste, Theft, Program Abuse Cases, and Recovery of Improper Payments--Update,” Boards are required to use the tools and reports available in TA Bulletin 276, “Child Care Fraud Detection Report Tools—Update,” and in the Child Care Fact-Finder’s Desk Aid (RID-55).

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Part A - Definitions

Part H - Consumer Education and Child Care Quality Activities

Part J - Appendix