DSHS meeting leaves many questions, few hints of progress

Area authorities meet with agency heads to probe fraud allegations in Mattawa day care businesses

Claims of fraud in the Department of Social and Health Services' dealings in Mattawa have created a stir among those investigating the allegations.

From city authorities to county law enforcement, to legislators, to representatives of the DSHS, the claims that the state agency has been licensing fraudulent day care centers in Mattawa and throughout the state has put many a government officials in a difficult position, with spotty record keeping, ignored warnings and with legislators demanding answers for a financial mess dating back to the year 2000.

The answers, however have not been entirely forthcoming.

The chief of operations of DSHS, Kathleen Brockman said that out of the scores of suspect day care centers targeted by the investigation, she did not know how many of them had been left open or later closed down due to irregularities.

This left a sour taste in the mouths of many questioning the work of the DSHS.

"They (DSHS representatives) come all this way and they tell us they don't know how many centers were open?" state Rep. Bill Hinkle, R-Cle Elum, asked after meeting Thursday with DSHS officials and law enforcement agents. "I am disappointed"

State Rep. Janea Holmquist, R-Moses Lake, agreed, saying that she was not entirely comfortable with the outcome of the queries so far, but adding that those investigating were doing all they could do. Still, she pointed out the futility of the DSHS reps' trip if they did not bring any answers with them.

The ongoing investigation has yielded some astonishing results. The Seattle Times has reported that some child care operators serving kids from mostly low-income Mattawa were receiving extra state subsidies by creating fake attendance records and using stolen or falsified Social Security cards.

Moreover, after repeated warnings by the State Auditor, its office focused on Grant County, uncovering about $2 million in suspected fraudulent payments to licensed day care providers.

After meeting with legislators, Brockman tried to explain what others had perceived as a lack of responses, saying that the DSHS was a large department.

"I supervise the fraud director," she said. "I do not supervise the part (of the DSHS) that gives licenses."

As an example, Brockman, alongside DSHS Director of Fraud Investigation John Bumford and DSHS Secretary Dennis Braddock said that some of the queries were the equivalent of asking the National Press Association about the whereabouts of a Moses Lake reporter.

Despite this, she defended Braddock, saying he was "very committed" to the investigation and to the agency.

Mattawa mayor Judy Esser questioned this commitment by asking about whether the DSHS was questioning the validity of the Social Security cards being used by those wanting to get a license.

Braddock defended his department's actions saying that it is not something out of the ordinary to have illegal immigrants partake in the services provided by the DSHS, and that the people receiving a license did not become the DSHS' employees, but instead contractors, to which Esser replied that these contractors should have been made to show some form of identification. According to the Seattle Times, most people were just asked for a Social Security number.

Braddock noted that the infant population was growing greatly, alongside the need for day care, to the point that when it came to day care, staffing had become an issue for the DSHS, as well.

"There is a disproportionate number of (elementary-age) children in Mattawa," he said. "Twice as many as in Connell." Overworked licensers has been one of the arguments long wielded by DSHS officials as an explanation for the financial mess.

Grant County Sheriff Frank De Trolio refuted Braddock's sayings, questioning how nobody could tell something was amiss the moment 51 day care centers were supposedly functioning on a town like Mattawa, (pop. 2,500 in winter, 6,000-plus in summer,) where, De Trolio argued, most of the population is single males without children.

"Where the hell does common sense come in?" De Trolio asked, later adding "I don't know what is taking them so long to suspend licenses."

Without defending the department, state Sen. Joyce Mulliken, R-Ephrata, said the members of the DSHS do have to walk a fine line.

"Their first obligation is children," she said. "As I understand it, fraud is a secondary issue, while important to those investigating, it takes a backseat. Still, there is more evidence that fraud has been committed."

Given the longevity of the problem, going on its fourth year since allegations were first made, many wondered aloud how such practices could go on unchecked for so long. Especially on a department taking up the biggest chunk of the state budget of any department.

"It's a $16-billion budget," State Rep. Cary Condotta, R-Wenatchee, told Braddock and the rest of the DSHS representatives, then asked whether something could be allocated out of that amount to investigate the fraud allegations.

Condotta tossed even more figures into the ring, saying that the day care program cost $200 million, and investigations indicated that up to 25 percent (or $50 million) of it was related to these fraudulent claims. The Seattle Times placed the child-care fund figure at $300 million, most of it coming from the federal government.

Among the suggested reasons are the desire of low-tier employees of the DSHS to not rock the boat by blowing the whistle on fraud, but possibly on their own job security as well.

Another reason, Condotta and Mulliken said, could be the agency's fear of litigation.

The questions do not end there.

Some of those in attendance wanted to know whether out of the grant money sent by the federal government to the state to manage DSHS, the state took a slice of it to manage the grant. Braddock has vehemently denied this.

After long hours of questioning, Braddock said the talks had gone well, giving both sides a chance to find out what the other side wanted, although he thought people were suspicious of his words at first.

"They weren't believing what I said," he said.

Others did not mind the questioning as much as they minded what they saw as a dearth of answers.

Condotta said he had hoped the representatives of DSHS had come better prepared, adding that this is not just an issue about daycare, but about the possibility of an state agency dealing with a large number of fraudulent claims.

While Grant County Undersheriff Ken Kernan praised the meeting as the first productive step forward in a long time, County Prosecuting Attorney John Knodell said he saw no progress and that he was not satisfied with the responses from the DSHS members.

"I would like to hear the recognition that there is a big problem out there," he said, adding that instead he received "a lot of evasiveness."

Mulliken offered a third point of view, saying that there had been positives and negatives to the discussion.

"The positive is, a public dialog has begun among all entities," she said, echoing Condotta's complaint of a DSHS lack of preparedness as the negative aspect.

"We don't know how many day cares are operating in Mattawa, and we don't have any information on how many have been suspended," she said, adding that she was optimistic about the future of the investigation.

Holmquist said she was not so sure. "At what point can I know that this problem has ceased?" she asked

Regardless of viewpoints, the next step for most of the city, county, and state leaders present at the meeting is to get a handle on these fraudulent claims, they said.

Some steps have been taken, Brockman said, such as requiring follow-up identification for people wanting to get a license.

Some steps have yet to be taken. Kernan said that for the GCSO to have a better grasp on what or whom to go after, his department requires "unimpeded access" to a variety of records, from payment records, to billing records, to support documents, to have somebody explain the codes and determine where overpayment took place.

Even if and when these records are released, the involvement of the GCSO will make a dent on an office whose first priority is the investigation of homicides, and not property crimes. Nevertheless, Kernan remained hopeful. Others, remained skeptical.

"They (DSHS) came clear across the state knowing full well what our complaint was," Hinkle said, pointing at the lack of answers. "It's astounding."