Report 2017-116 Recommendation 15 Responses
Report 2017-116: Community Child Care Council of Santa Clara County: Because It Disadvantaged Some Families and Misused State Funds, It Could Benefit From Increased Monitoring by the California Department of Education (Release Date: April 2018)
Recommendation #15 To: Education, Department of
To ensure the appropriate use of state grant funds, Education should determine, to the extent possible, the amount of supplemental plan funds that did not comply with federal requirements, and it should require 4Cs to reimburse the State for improper payments of state funds it made to the supplemental plan.
Annual Follow-Up Agency Response From November 2020
The 4Cs ceased operating on June 30, 2020. The federal court register indicates that the class action lawsuit regarding 4Cs administration of its retirement plans may have been settled as a result of a court ordered mediation in January 2020; the court case has not yet been dismissed. Education continues to monitor available information related to the class action lawsuit. However, Title 28 United States Code Section 2462 is the "government-wide" statute of limitations, and limits the US government's recovery of any pecuniary claims to 5 years from the date when the claim first accrued. Additionally, it appears unlikely that Education will be able to obtain documentation that would be required to quantify and collect supplemental plan funds that may not have complied with federal requirements for costs incurred 21 or more years ago.
- Completion Date: October 2020
California State Auditor's Assessment of Annual Follow-Up Status: Resolved
Based on Education's description of the status of 4Cs and the class action lawsuit, we have evaluated this recommendation as having been resolved.
Annual Follow-Up Agency Response From October 2019
The class action lawsuit regarding 4Cs administration of its retirement plans is still pending. Education will require 4Cs take appropriate action based on the outcome of the class action lawsuit.
- Estimated Completion Date: June 2020
California State Auditor's Assessment of Annual Follow-Up Status: Pending
1-Year Agency Response
The class action lawsuit regarding 4Cs administration of its retirement plans is still pending. Education will require 4Cs take appropriate action based on the outcome of the class action lawsuit.
- Estimated Completion Date: December 2019
- Response Date: March 2019
California State Auditor's Assessment of 1-Year Status: Pending
6-Month Agency Response
The class action lawsuit regarding 4Cs administration of its retirement plans is still pending. Education will require 4Cs take appropriate action based on the outcome of the class action lawsuit.
- Estimated Completion Date: December 2019
- Response Date: October 2018
California State Auditor's Assessment of 6-Month Status: Pending
60-Day Agency Response
Education concurs with the recommendation. The class action lawsuit regarding 4Cs administration of its retirement plans is still pending. Education will require 4Cs to take appropriate action based on the outcome of the class action lawsuit.
- Estimated Completion Date: December 2018
- Response Date: June 2018
California State Auditor's Assessment of 60-Day Status: Pending
All Recommendations in 2017-116
Agency responses received are posted verbatim.