Summary
Why We Did This Audit
Albertans deserve to know how public funds are used for programs and services they depend on. In 2023–2024, over $1.1 billion was allocated to the Child Care Subsidy and Grants Program. This audit examined whether child care supports are reaching families and educators as intended.
What We Looked At
We assessed whether the department has effective processes to verify the accuracy of operator claims, monitor use of funds, and report on the performance of the Child Care Subsidy and Grants Program.
We Found
The department did not consistently ensure:
- claims from operators were supported and only included eligible child care and educator hours
- operators passed on funding from the subsidies and grants to reduce parent fees and pay educators
We found claim discrepancies in over half the operators we examined.
The department has:
- measures to report outcomes of the program; however, where operator claims and payments to parents are inaccurate, measures will not accurately reflect program outcomes
- processes to evaluate program outcomes to identify gaps and program improvements
We Recommend
We recommend that the department implement processes to verify:
- the accuracy of child care operator claims for the Child Care Subsidy and Grants Program
- that child care operators use the funding as required to reduce parent fees and to pay educators their wage top-up funding
Implementing the two recommendations above will also improve the accuracy of program reporting.
Why our Findings Matter to Albertans
There is a risk that public funds may not be used as intended—leading to parents overpaying for child care and educators being under compensated. Strengthening accountability mechanisms helps ensure this funding achieves its purpose: supporting children, families, and educators in Alberta.