Arizona Department of Economic Security—Child Care Services—Department should improve its child care provider monitoring and complaint-handling processes and examine consolidating child care regulation under one agency

The Arizona Department of Economic Security (Department) is responsible for establishing and administering child care services, including providing a child care subsidy for eligible families, certifying and monitoring child care home providers who are not regulated by the Arizona Department of Health Services (DHS), and developing and implementing services to increase child care affordability, availability, and quality. We found that the Department did not always conduct two required comprehensive on-site inspections annually of each child care home provider (provider) in calendar years 2012 through 2014. Department inspectors also did not consistently assess provider compliance with child care requirements during inspections. Additionally, we found that although the Department is required to investigate and resolve complaints and provide information on valid complaints to the public, it has not established procedures to effectively receive, investigate, and monitor complaints. Finally, the Department and DHS share responsibility for child care regulation in Arizona, and consolidating this responsibility under one agency could potentially improve the economy and efficiency of child care regulation in the State.