Library: Policy
340:2-11-150. Child care payments
Revised 9-15-21
(a) Payments. Payments are made on behalf of Oklahoma Human Services (OKDHS) clients to providers of child care services, per Oklahoma Administrative Code (OAC) 340:40-13-5. The services and payments are supported by provider contracts on file with the Adult and Family Services (AFS).
(b) Overpayments. Provider overpayments that occur as a result of agency or provider error are described in OAC 340:40-15-1. Any overpayment over $500, when the child was not in care may result in felony fraud charges against the provider. • 1
(c) Collection of overpayments. Financial Services Electronic Payment Systems (EPS) recoups all funds associated with overpayments in weekly installments, not less than 10 percent of the provider's gross payment, per week until the overpayment is satisfied, except when the viability of the child care facility is in question.
(1) Child care facilities whose continued viability is at risk due to overpayment collection is reviewed by Financial Services Electronic Payment Systems (EPS) for other repayment plans.
(2) Repayment plans do not exceed 12 months, except when the viability of the child care provider is in question.
(3) A child care provider whose contract is subsequently cancelled due to an OKDHS Office of Inspector General (OIG) investigation has all available funds withheld to satisfy any remaining overpayments.
(d) Liquidated damages.
(1) OKDHS may impose liquidated damages when certain rules in the contract are violated. Specifically, when the child care provider:
(A) is in possession of a client's Access Oklahoma electronic benefit transfer (EBT) card;
(B) swipes the EBT card through the point of service (POS) device; or
(C) knows the client's EBT personal identification number (PIN).
(2) The percentage of liquidated damages increases with each violation assessed, per Section 2-718 of Title 12A of the Oklahoma Statutes.
(3) When OIG determines an EBT card was in the possession of or swiped through the POS device by a child care provider, the:
(A) first violation results in liquidated damages of 10 percent of the total payment(s) during the month the violation occurred; • 2
(B) second violation results in liquidated damages of 20 percent of the total payment(s) during the month the violation occurred; and • 2
(C) third violation results in liquidated damages of 30 percent of the total payment(s) during the month the violation occurred; and recommendation to AFS for cancellation of the provider's contract. • 2
(e) Collection of liquidated damages. EPS recoups all funds associated with liquidated damages as described in (1) and (2) of this subsection.
(1) The full amount of liquidated damages is applied against the first available payment and any sequent payments until the amount is collected.
(2) When the contract is subsequently cancelled due to an OIG investigation, all available funds are withheld to satisfy any remaining overpayments.
Revised 9-15-21
1. (a) When the Office of Inspector General (OIG) becomes aware the provider was paid for care that was not given, OIG is responsible for:
(1) documenting an overpayment within the audit report;
(2) submitting the audit report to Financial Services Electronic Payment Systems (EPS);
(3) submitting the audit report to Adult and Family Services (AFS) with a recommendation for cancellation of the child care provider's contract if appropriate; and
(4) referring, as appropriate, to the district attorney for review of felony fraud charges against the provider, if overpayment is in excess of $500.
(b) EPS is responsible for recouping the overpayment in accordance with rules.
2. (a) OIG is responsible for:
(1) warning the provider to cease the practice;
(2) reporting the violation(s) to EPS; and
(3) notifying AFS of the contract violation(s).
(b) EPS is responsible for assessing and applying liquidated damages.
