The Community Child Care Council of Santa Clara County (4Cs), which helps low-income families gain access to subsidized childcare programs, misspent state funds and did not keep proper documentation for most transactions, according to an April 5 report released by California State Auditor Elaine Howle.
The auditor reviewed 69 administrative costs from June 2014 to June 2017, and determined that 22 were not eligible for reimbursement per state and federal regulations, and the contract terms.
The expenditures totaled $11,217 in state funds, including $294 for food and personal amenities, $325 in food and beverages for board of directors meetings and $6,859 in attorney fees related to union negotiations and defense against a National Labor Relations Board charge.
Many of these purchases did not contain the proper amount of documentation to justify their expenses, the auditor said. The auditor recommended that the agency strengthen internal controls for the approval of expenditures by October, and retain all documentation to justify the approval of expenditures.