JACKSON, Miss. – Millions in Temporary Assistance for Needy Families (TANF) funds are being given to nonprofits to provide childcare to kids without requiring the nonprofits to track whether kids are showing up every day according to a new report released by the Mississippi Office of the State Auditor. Nonprofits in this report received the same amount of money whether a child showed up one day a month or every single day.
“The childcare fraud scandal in Minnesota has shown just how easy it is for nonprofits to receive government funds intended to help our poorest children and then light that money on fire,” said State Auditor Shad White. “It’s critical that Mississippi has effective oversight on childcare spending so we don’t repeat the mistakes we’ve seen in other states.”
In FY24, the nonprofits analyzed in this report spent nearly $11 million of state TANF funds to provide childcare to low-income families. MDHS paid the nonprofits simply for offering childcare rather than for the number of children attending. Multiple programs served less than 50% of the children that they committed to support every month, but received full funding.
“Like most Mississippians, I pay for my own children’s childcare,” said Auditor White. “If taxpayer dollars are going to serve low-income children, then the state needs to ensure that the money goes as far as it can and that kids are actually attending these centers.”
While MDHS did not collect attendance data from the centers, MDHS did collect participant data from the nonprofits—but, analysts found errors like duplicate entries, misspelled names, and incorrect addresses.
The Auditor’s Office attempted to analyze whether students who did attend the centers made learning gains. Nonprofits receiving the grant were required to collect outcome data on topics like literacy rates and teen pregnancy prevention, but MDHS did not reliably measure whether these programs achieved the minimum outcomes required by the state.
This report is the first in a series of reports focusing on taxpayer-funded childcare programs in Mississippi.
The full report can be found on the Auditor’s website by clicking on the “Reports” tab and searching “Afterschool care.”