A Wheaton child care center that has been questioned by the FBI overbilled Montgomery County taxpayers by more than $9,200 a month before county officials started taking a closer look at its finances, according to newly released county records.
Centro Familia, which provides child care services geared for immigrant Hispanic children, overbilled the county $85,000 for fiscal 2009, according to an analysis by the Department of Health and Human Services.
The county’s inspector general issued a report in February saying there were “significant concerns about … possible fraud, waste or abuse” at the center. The Examiner first reported that an FBI agent interviewed the county’s bookkeeper in October.
Health department director Uma Ahluwalia noted that the center had fewer discrepancies after her department began reviewing payroll records in February.
Overall, records show that the county found that the center overbilled the county by an average of more than $9,200 a month for the first seven months of fiscal 2009. After the department began reviewing Centro Familia’s finances, the county found that the center overbilled by an average of $3,665 a month.
The county’s analysis, obtained through a public records request, shows that the center submitted invoices for a number of costs, such as “travel,” “supplies,” “insurance” and “equipment maintenance” over several months without providing documentation. The center billed more than $4,000 in “supplies” without providing receipts.
The analysis also found that the center had overbilled its employees’ salaries by more than $26,000 for the first six months of fiscal 2006. Records show that the center also paid a full-time employee $110 in “consulting fees” and there were several other consulting invoices that had no supporting documentation.
Centro Familia officials have denied any wrongdoing and said the county has underpaid them more than $15,000 for fiscal 2009. The chairman of the center’s board, David Anderson, said the center is appealing the county’s finding.
Anderson said the county’s report shows that there has been no fraud or abuse at the center, only that there is a disagreement over pay formulas and that some receipts have been lost.
In a letter to Centro Familia, Ahluwalia complained that the center had not been responsive to her requests.
“Reconciling your contract invoices was extremely time-consuming and challenging due to the poor quality of the documentation, lack of a well-organized and consistent general ledger, and delayed response time in receiving information,” Ahluwalia said.
asuderman@washingtonexaminer.com
