Department of Health and Human Services 
OFFICE OF 
INSPECTOR GENERAL 
 
 
 
H  M G
AWAII S  ONITORING  ENERALLY 
E C C P
NSURED  HILD  ARE  ROVIDER 
C W S C
OMPLIANCE  ITH  TATE  RIMINAL 
B C R  
ACKGROUND  HECK  EQUIREMENTS
 
 
 
 
 
 
 
 
Inquiries about this report may be addressed to the Office of Public Affairs at 
 
Public.Affairs@oig.hhs.gov. 
 
 
   
 
   
 
   
 
   
 
Amy J. Frontz 
 
Deputy Inspector General 
 
for Audit Services 
 
September 2020 
A-09-19-01000   
Office of Inspector General
 
https://oig.hhs.gov 
 
 
 
The mission of the Office of Inspector General (OIG), as mandated by Public Law 95-452, as amended, is 
to protect the integrity of the Department of Health and Human Services (HHS) programs, as well as the 
health and welfare of beneficiaries served by those programs.  This statutory mission is carried out 
through a nationwide network of audits, investigations, and inspections conducted by the following 
operating components: 
 
Office of Audit Services 
 
The Office of Audit Services (OAS) provides auditing services for HHS, either by conducting audits with 
its own audit resources or by overseeing audit work done by others.  Audits examine the performance of 
HHS programs and/or its grantees and contractors in carrying out their respective responsibilities and are 
intended to provide independent assessments of HHS programs and operations.  These audits help reduce 
waste, abuse, and mismanagement and promote economy and efficiency throughout HHS.   
               
Office of Evaluation and Inspections 
 
The Office of Evaluation and Inspections (OEI) conducts national evaluations to provide HHS, Congress, 
and the public with timely, useful, and reliable information on significant issues.  These evaluations focus 
on preventing fraud, waste, or abuse and promoting economy, efficiency, and effectiveness of 
departmental programs.  To promote impact, OEI reports also present practical recommendations for 
improving program operations. 
 
Office of Investigations 
 
The Office of Investigations (OI) conducts criminal, civil, and administrative investigations of fraud and 
misconduct related to HHS programs, operations, and beneficiaries.  With investigators working in all 50 
States and the District of Columbia, OI utilizes its resources by actively coordinating with the Department 
of Justice and other Federal, State, and local law enforcement authorities.  The investigative efforts of OI 
often lead to criminal convictions, administrative sanctions, and/or civil monetary penalties. 
 
Office of Counsel to the Inspector General 
 
The Office of Counsel to the Inspector General (OCIG) provides general legal services to OIG, rendering 
advice and opinions on HHS programs and operations and providing all legal support for OIGs internal 
operations.  OCIG represents OIG in all civil and administrative fraud and abuse cases involving HHS 
programs, including False Claims Act, program exclusion, and civil monetary penalty cases.  In 
connection with these cases, OCIG also negotiates and monitors corporate integrity agreements.  OCIG 
renders advisory opinions, issues compliance program guidance, publishes fraud alerts, and provides 
other guidance to the health care industry concerning the anti-kickback statute and other OIG enforcement 
authorities. 
   
Notices 
 
 
 
 
THIS REPORT IS AVAILABLE TO THE PUBLIC 
at https://oig.hhs.gov 
 
Section 8M of the Inspector General Act, 5 U.S.C. App., requires 
that OIG post its publicly available reports on the OIG website.  
 
OFFICE OF AUDIT SERVICES FINDINGS AND OPINIONS 
 
The designation of financial or management practices as 
questionable, a recommendation for the disallowance of costs 
incurred or claimed, and any other conclusions and 
recommendations in this report represent the findings and 
opinions of OAS.  Authorized officials of the HHS operating 
divisions will make final determination on these matters. 
   
Report in Brief  
 
 Date: September 2020 
Report No. A-09-19-01000 
Why OIG Did This Audit   Hawaiis Monitoring Generally Ensured Child Care 
The Child Care and Development 
Provider Compliance With State Criminal 
Block Grant Act (CCDBG Act) of 2014 
added new requirements for States  Background Check Requirements 
that receive funding from the Child 
 
Care and Development Fund (CCDF) 
What OIG Found 
to conduct comprehensive criminal 
At 27 of the 30 child-care providers we reviewed, Hawaiis monitoring 
background checks on staff members 
generally ensured provider compliance with State requirements related to 
and prospective staff members of 
criminal background checks established under the CCDBG Act.  Of the 
child care providers every 5 years. 
550 individuals whose supporting documentation we reviewed, 546 (over 
Criminal background check 
99 percent) had had the required background checks completed by the time 
requirements apply to any staff 
we requested the documentation and performed site visits.  However, four 
member who is employed by a child 
individuals at three child-care providers had not had the required background 
care provider for compensation or 
checks conducted.  
whose activities involve the care or 
 
supervision of children or 
For two child-care staff members at a child care center, Hawaii officials stated 
unsupervised access to children. 
that the centers director was not aware that background checks were 
 
required for minors working at the center.  For one child-care staff member at 
Our objective was to determine 
a child care center, Hawaii officials stated that the staff members background 
whether Hawaiis monitoring of child 
check was not performed through the State as required.  For both child care 
care providers ensured provider 
centers, Hawaii sent the providers a letter reminding them that the 
compliance with State requirements 
requirement that all new staff undergo criminal background checks within 
related to criminal background 
5 days of hire is a condition of licensure.  In addition, for one child-care staff 
checks established under the CCDBG 
member at a child care center, Hawaii officials stated that the staff members 
Act.  
background check was not conducted because of an oversight by a licensing 
 
worker.  Although this staff member was fingerprinted, the licensing unit did 
How OIG Did This Audit 
not perform the background check.  Hawaii requested that the licensing unit 
We analyzed and tested a population 
responsible for the provider submit a written corrective action plan to ensure 
of 368 licensed family homes and 
that criminal background checks are completed for all staff who have been 
child care centers that received CCDF 
fingerprinted.  Hawaii officials informed us that these four child-care staff 
funding during Federal fiscal year 
members were no longer employed at the child care centers. 
2018.  We used geographic area, 
 
total capacity, and total CCDF funding 
What OIG Recommends and Hawaii Comments 
received to select for review 
We recommend that Hawaii confirm that the licensing unit responsible for the 
15 family homes and 15 child-care 
child-care-center provider that did not complete a required criminal 
centers, for a total of 30 licensed 
background check has implemented a corrective action plan to ensure that 
child-care providers.  In total, we 
background checks are completed for all staff who have been fingerprinted.  
reviewed supporting documentation 
 
for 550 individuals who were current 
In written comments on our draft report, Hawaii stated that, in general, it 
employees or household members at 
concurred with our findings.  Hawaii also provided information on actions that 
30 different child-care-provider 
it had taken to address our recommendation, such as adding a second support 
locations. 
staff person to assist with conducting the background checks.   
The full report can be found at https://oig.hhs.gov/oas/reports/region9/91901000.asp.  TABLE OF CONTENTS 
 
INTRODUCTION ............................................................................................................................... 1 
 
  Why We Did This Audit ....................................................................................................... 1 
 
  Objective ............................................................................................................................. 1 
 
  Background ......................................................................................................................... 1 
  Child Care and Development Block Grant Act ........................................................ 1 
  Criminal Background Check Requirements as of September 30, 2016 .................. 2 
Extension and Waiver for Implementation of Criminal Background 
   Check Requirements ............................................................................................ 3 
  Hawaiis Coordination Efforts for Conducting Criminal Background Checks ......... 4 
 
  How We Conducted This Audit ........................................................................................... 5 
 
FINDINGS ......................................................................................................................................... 6 
 
  Hawaiis Monitoring Generally Ensured Provider Compliance With State Criminal  
     Background Check Requirements .................................................................................... 6 
    Hawaii State Requirements for Criminal Background Checks ................................ 6 
  Child Care Providers at 3 of 30 Locations Did Not Comply With  
     Criminal Background Check Requirements .......................................................... 7 
 
RECOMMENDATION ....................................................................................................................... 7 
 
STATE AGENCY COMMENTS ........................................................................................................... 8 
 
APPENDICES 
 
  A: Audit Scope and Methodology ....................................................................................... 9 
  B: Prior Office of Inspector General Reports Related to Criminal Background  
          Check Requirements .................................................................................................. 12 
  C: Hawaiis Waiver and Implementation Status of Child Care and Development Fund 
          Criminal Background Checks ..................................................................................... 14 
  D: Federal and State Requirements Related to Criminal Background Checks ................. 16 
  E: Number of Individuals Missing Required Criminal Background Checks 
          at 30 Selected Providers ............................................................................................ 18 
F: State Agency Comments ............................................................................................... 19 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)    INTRODUCTION 
 
WHY WE DID THIS AUDIT 
 
The Child Care and Development Block Grant Act (CCDBG Act) of 2014 added new requirements 
for States that receive funding from the Child Care and Development Fund (CCDF) to conduct 
comprehensive criminal background checks on staff members and prospective staff members 
of child care providers every 5 years.1  
 
As part of our oversight activities, we conducted a series of audits that assessed States criminal 
background check requirements and reviewed their plans and actions to implement the 
criminal background check requirements established under the CCDBG Act.  We conducted this 
audit of Hawaiis Department of Human Services (State agency) as part of a second phase of our 
oversight activities to assess whether States monitoring ensured provider compliance with 
CCDF requirements related to criminal background checks.  Appendix B lists prior Office of 
Inspector General (OIG) reports related to criminal background check requirements.   
 
OBJECTIVE 
 
Our objective was to determine whether the State agencys monitoring of child care providers 
ensured provider compliance with State requirements related to criminal background checks 
established under the CCDBG Act. 
 
BACKGROUND 
 
Child Care and Development Block Grant Act 
 
Reauthorized in the CCDBG Act, the CCDF is the primary Federal funding source devoted to 
subsidizing the child care expenditures of low-income families.  Administered by the 
Administration for Children and Families (ACF), the CCDF helps eligible low-income families pay 
for child care at a provider of their choice while they work or participate in training or 
education, or both.  In Federal fiscal year (FFY) 2019, ACF provided $8.2 billion to States, 
territories, and Tribes to fund CCDF programs.  In FFY 2017 (the most recent year for which ACF 
data were available), CCDF served approximately 1.3 million children younger than 13 years of 
age from 796,000 low-income families each month. 
 
Under the CCDBG Act, each lead agency must certify in its State plan that it has monitoring 
policies and practices applicable to all child care providers and facilities that deliver services.2  
States must have requirements, policies, and procedures in place to conduct criminal 
background checks for staff members of child care providers (other than relatives) that are 
 
1 P.L. No. 113-186,  658H, enacted November 19, 2014. 
 
2 45 CFR  98.16(o). 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  1  licensed, regulated, or registered under State law or receive CCDF funds.3  Criminal background 
check requirements apply to any staff member who is employed by a child care provider for 
compensation or whose activities involve the care or supervision of children or unsupervised 
access to children.  This includes not only caregivers, teachers, and directors, but also janitors, 
cooks, and other employees of a child care provider who may not regularly engage with 
children but whose presence at the facility gives them the opportunity for unsupervised access.  
For family home providers, this includes the caregiver requesting a check of himself or herself 
as well as other adults in the household who may have unsupervised access to children.4 
 
Criminal Background Check Requirements as of September 30, 2016 
 
The U.S. Department of Health and Human Services implemented the CCDBG Acts criminal 
background check requirements for States, territories, and Tribes in a final rule issued in 
September 2016.5  According to Federal regulations,6 States must have requirements, policies, 
and procedures in place to conduct comprehensive criminal background checks.  These 
regulations require States to conduct criminal background checks for child care staff members 
and prospective child care staff members that include:  
 
  a Federal Bureau of Investigation (FBI) fingerprint check using Next Generation 
Identification;7 
 
  a search of the National Crime Information Centers National Sex Offender Registry 
(NCIC NSOR); and 
 
  a search of the following registries, repositories, or databases in the State in which a 
child care staff member resides and each State in which that staff member resided 
during the preceding 5 years: 
 
  the State criminal registry or repository (with the use of fingerprints being required 
o
in the State in which the staff member resides and optional in other States), 
  the State sex offender registry or repository, and 
o
  the State-based child abuse and neglect registry and database. 
o
 
3 45 CFR  98.43(a)(1). 
 
4 CCDF Program Final Rule, 81 Fed. Reg. 67438, 67494 (Sept. 30, 2016). 
 
5 CCDF Program Final Rule, 81 Fed. Reg. 67438 (Sept. 30, 2016). 
 
6 45 CFR  98.43. 
 
7 The FBI fingerprint check, Next Generation Identification (formally the Integrated Automated Fingerprint 
Identification System) provides the criminal justice community with the worlds largest and most efficient 
electronic repository of biometric and criminal history information.  
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  2  Extension and Waiver for Implementation of Criminal Background Check Requirements 
 
The CCDBG Act required all States to have requirements, policies, and procedures in place no 
later than September 30, 2017, that meet the criminal background check requirements.  The 
CCDBG Act allowed for the Secretary of Health and Human Services to grant a 1-year extension 
to States as long as they demonstrate a good-faith effort to implement the requirements.  
Because of significant challenges in implementing the new background check requirements, all 
States, including Hawaii, applied for and received extensions through September 30, 2018.   
 
In addition, ACF has the authority to grant States a waiver of a statutory provision, including 
one or more criminal background check requirements, and may extend the period of 
implementation for the waived requirements for up to 2 additional years, until 
September 30, 2020, assuming that the requirements for applying for the waiver are fulfilled.  
In its State plan preprint,8 ACF stated that if a State implements the FBI criminal history check 
and the three in-State background checks for prospective child-care staff by 
September 30, 2018, the State may receive a time-limited waiver (1 year, with an additional 
1-year renewal, subject to conditions being met) to perform the following actions:  
 
  conduct FBI checks and in-State registry checks on current child-care staff and  
 
  establish procedures and conduct checks of the NCIC NSOR and inter-State registries for 
current and prospective staff, as necessary.  
 
As of September 30, 2018, the State agency had implemented requirements for all criminal 
background check components (except for the NCIC NSOR check, the inter-State criminal 
registry check, and the inter-State child abuse and neglect registry check) and conducts these 
checks for all new (prospective) child care staff, in accordance with Federal regulations 
(45 CFR  98.43).  Additionally, the State agency had implemented requirements for the in-State 
sex offender registry check and the in-State child abuse and neglect check for existing child 
care staff in accordance with Federal regulations (45 CFR  98.43).  In its CCDF State plan for 
2019 through 2021, the State agency requested and ACF approved waivers until 
September 30, 2020, to allow additional time to implement the remainder of the criminal 
background check requirements.  (See Appendix C for details on the State agencys extension 
and waiver deadlines and the implementation status of its CCDF criminal background checks.)  
 
 
 
 
 
 
8 The State plan is the primary mechanism that ACF uses to determine State and territory compliance with the 
requirements of the CCDF Act.  The State plan preprint provides a tool for States and territories to describe to ACF 
their progress on eight key functions of an integrated system of child care as described in the preprint.  Available at 
https://www.acf.hhs.gov/sites/default/files/occ/fy_2019_2021ccdf_plan_preprint_11_30_17.pdf on May 6, 2020. 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  3  Hawaiis Coordination Efforts for Conducting Criminal Background Checks  
 
Within the State agency, the Benefit, Employment and Support Services Divisions Child Care 
Program Office (Program Office) is responsible for ensuring that criminal background checks are 
conducted and completed for child care staff members.  The Program Office uses a 
computerized eligibility system, Hawaii Automated Network of Assistance (HANA), for storing 
the criminal background check status and relevant information for child care staff members in 
Hawaii. 
 
Applicants for positions in licensed child-care centers and family homes must be fingerprinted 
within 5 days of hire and may begin working on a provisional basis until satisfactory results on 
either the FBI fingerprint check or the in-State criminal registry check are received.  Applicants 
must submit a form, Authorization for Background Check and to Release Information 
(Form 948), to the Program Offices licensing unit to initiate the national and State criminal 
background and registry checks.   
 
Once an applicant is fingerprinted, the fingerprints are sent electronically to the FBI for the 
national criminal history record check and to the Hawaii Criminal Justice Data Center for the 
State criminal history record check.  Simultaneously, the Program Offices licensing unit sends a 
copy of Form 948 to the Social Services Divisions Child Welfare Services (CWS).  CWS then runs 
the in-State child abuse and neglect registry check and sends the results to the licensing unit.  
The licensing unit runs all the other background checks.  
 
If there are any criminal history records that show up on either the national or State 
background checks for an applicant, a licensing worker reviews the results and assesses 
whether the applicant poses a risk.  If the licensing worker is unable to determine whether the 
applicant poses a risk, the licensing worker conducts an interview with the applicant either in 
person or by phone.  Based on the licensing workers assessment (along with the assessments 
of the workers supervisor, the Statewide Branch Administrator, and the Acting Division 
Administrator), the licensing unit determines whether the applicant poses a risk.   
 
If the applicant does not pose a risk, the background check is cleared.  However, if the applicant 
does pose a risk, the licensing unit sends a poses a risk letter to the applicant and the 
provider, denying the background check clearance.  Once the provider receives notification that 
an applicant has not been cleared, the individual must stop working immediately.  If it is 
determined that a provider employs an individual who was not cleared, the providers license 
can be suspended or revoked. 
 
As part of the required annual licensing inspections of child care providers, the licensing worker 
verifies the background check status of child care staff members. 
 
 
 
 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  4  HOW WE CONDUCTED THIS AUDIT  
 
Hawaii had 368 licensed9 family homes10 and child care centers11 that received CCDF funding 
during FFY 2018 (October 1, 2017, through September 30, 2018).  We reviewed 15 family home 
providers and 15 child-care centers, for a total of 30 licensed child-care providers.  
 
We conducted unannounced site visits at 15 family-home providers, where we obtained a list of 
all current employees or household members for each provider.  We compared this list with the 
list provided by the State agency to verify that they were the same.  We performed a 
walkthrough of each family home to observe anyone in the household and discussed any 
challenges or obstacles that the provider faced with adhering to the criminal background check 
requirements.  In addition, we contacted 15 child-care-center providers to request a list of all 
current employees at each provider and verified this list against the list provided by the State 
agency.  In total, we reviewed supporting documentation for 550 individuals who were current 
employees or household members at 30 different child-care-provider locations.   
 
We limited our review of internal controls to obtaining an understanding of the laws and 
regulations concerning the State agencys monitoring process to ensure child care provider 
compliance with State requirements related to criminal background checks. 
 
We conducted this performance audit in accordance with generally accepted government 
auditing standards.  Those standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions 
based on our audit objectives.  We believe that the evidence obtained provides a reasonable 
basis for our findings and conclusions based on our audit objectives. 
 
Appendix A contains the details of our audit scope and methodology. 
   
 
9 We did not include license-exempt providers or providers that had a pending license in our audit. 
 
10 A family child-care provider in a day care home is an individual who provides child care services in a private 
home to two to six children at the same time during any part of a 24-hour day in which the relationship of the child 
and family child-care provider is not by blood, marriage, or adoption.  A family child-care provider in a group child-
care home is an individual who provides child care services in a facility that may be an extended or a modified 
family child-care home and provides care to no more than 12 children during any part of a 24-hour day (Hawaii 
Administrative Rules  17-892.1-1).  We refer to these private and group homes as family homes. 
 
11 A child care center is a place maintained by an individual, organization, or agency for the purpose of providing 
child care during any part of a 24-hour day (Hawaii Administrative Rules  17-892.1-1). 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  5  FINDINGS 
 
The State agencys monitoring generally ensured provider compliance with State requirements 
related to criminal background checks at 27 of 30 child-care-provider locations we reviewed.  
Of the 550 individuals whose supporting documentation we reviewed, 546 (over 99 percent) 
had had the required background checks completed by the time we requested the 
documentation and performed site visits.  However, four individuals at three child-care 
providers had not had the required background checks conducted.  
 
HAWAIIS MONITORING GENERALLY ENSURED PROVIDER COMPLIANCE WITH STATE 
CRIMINAL BACKGROUND CHECK REQUIREMENTS 
 
Hawaii State Requirements for Criminal Background Checks  
 
Hawaii State law requires all licensed child-care 
An Individual Who Was Not Required To Have 
providers and adult household members of 
Background Checks Regularly Visited a  
family child-care homes and staff of child care 
Family Home 
centers to have required background checks 
During an unannounced site visit to one of the 
completed, including criminal and adult or child 
selected family homes, we encountered the 
abuse and neglect records clearance checks 
providers ex-husband in one of the rooms.  
(Hawaii Revised Statutes (HRS)  346-151 and 
During our visit, the provider had five children in 
346-154). 
care, including her grandson.  The provider 
 
stated that the ex-husband visited the home 
According to Hawaii State law, the State agency  approximately two times a month.  Because he 
shall develop standards that shall include  was not a household member, he was not 
criminal history records checks in accordance  required to have criminal background checks 
with section 846-2.7, sex offender registry  completed.  After our visit, the State agency 
checks, and child abuse records checks for  completed the ex-husbands criminal 
background checks and cleared him. 
prospective employees and household members 
 
of a child care facility (HRS  346-154(a)).  The 
 
criminal history record check shall include the submission of fingerprints to: (1) the FBI for a 
national criminal history record check and (2) the Hawaii Criminal Justice Data Center for a 
State criminal history record check that shall include nonconviction data12 (HRS  846-2.7). 
 
Hawaii regulations require a State name-based criminal history record check and a child 
abuse/neglect history check to be conducted at least once every year on all required individuals 
(Hawaii Administrative Rules  17-891.1-3(d) and 17-892.1-3(d)).   
 
See Appendix D for the Federal and State requirements related to criminal background checks. 
 
12 Nonconviction data means arrest information without a disposition if an interval of 1 year has elapsed from 
the date of arrest and no active prosecution of the charge is pending; or information disclosing that the police have 
elected not to refer a matter to a prosecutor, or that a prosecutor has elected not to commence criminal 
proceedings, or that proceedings have been indefinitely postponed, as well as all acquittals and all dismissals 
(HRS  846-2.1).   
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  6  Child Care Providers at 3 of 30 Locations Did Not Comply With Criminal  
Background Check Requirements 
 
At 27 of the 30 child-care providers we reviewed, the State agencys monitoring generally 
ensured provider compliance with State requirements related to criminal background checks.  
Of the 550 individuals whose supporting documentation we reviewed, 546 (over 99 percent) 
had had the required background checks completed by the time we requested the 
documentation and performed site visits.  However, four staff members at three child-care 
centers had not had any of the required criminal background checks (FBI, in-State criminal 
history, in-State sex offender, in-State child abuse and neglect, and inter-State sex offender) 
conducted by the time of our data requests and site visits (Appendix E): 
 
  For two child-care staff members at a child care center, State agency officials stated that 
the centers director was not aware that background checks were required for minors 
working at the center.  The State agency sent the provider a letter reminding the 
provider that the requirement that all new staff undergo criminal background checks 
within 5 days of hire is a condition of licensure.  
 
  For one child-care staff member at a child care center, State agency officials stated that 
the staff members background check was performed through the Roman Catholic 
Diocese but not through the State agency as required.  The State agency sent the 
provider a letter reminding the provider that the requirement that all new staff undergo 
criminal background checks within 5 days of hire is a condition of licensure.  
 
  For one child-care staff member at a child care center, State agency officials stated that 
the staff members background check was not conducted because of an oversight by the 
licensing unit.  Although this staff member was fingerprinted, the licensing unit did not 
perform the background check.  The State agency requested that the licensing unit 
responsible for this provider submit a written corrective action plan to ensure that 
criminal background checks are completed for all staff who have been fingerprinted.   
 
The State agency informed us that these four child-care staff members were no longer 
employed at the child care centers. 
 
RECOMMENDATION 
 
We recommend that the Hawaii Department of Human Services confirm that the licensing unit 
responsible for the child-care-center provider that did not complete a required criminal 
background check has implemented a corrective action plan to ensure that background checks 
are completed for all staff who have been fingerprinted.  
 
 
 
 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  7  STATE AGENCY COMMENTS 
 
In written comments on our draft report, the State agency said that, in general, it concurred 
with our findings.  The State agency also provided information on actions that it had taken to 
address our recommendation.  Specifically, the State agency said that because of the large 
volume of background checks that the licensing unit conducts, a second support staff person 
was assigned to assist with conducting background checks.  The State agency also said that the 
licensing unit has established duties for each support staff person to ensure that all background 
check requests are logged, tracked, and cross-checked for completion of all the required 
background checks. 
 
The State agencys comments are included in their entirety as Appendix F. 
 
   
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  8  APPENDIX A: AUDIT SCOPE AND METHODOLOGY 
 
SCOPE 
 
In selecting which State or States to include in an audit, each OIG audit team conducted an 
analysis of the States within its region and considered the following factors:  
 
  States with a partial or substantial implementation status for criminal background 
check requirements in their 2016 through 2018 CCDF State plans, 
 
  States in which OIG may not have conducted criminal background check work recently 
or those in which we had findings related to criminal background check requirements in 
foster care or Head Start audits, 
 
  States in which news reports have raised concerns related to criminal background check 
requirements, 
 
  total CCDF funding within each State, and 
 
  total children served by CCDF within each State. 
 
In addition to these factors, the six States13 included in OIGs prior CCDF Phase I (State 
implementation of CCDBG criminal background check requirements) audit series were included 
in CCDF Phase II (State monitoring of child care provider compliance).  Based on our review of 
these factors, we selected Hawaii for audit.   
 
We selected and reviewed a nonstatistical sample of 30 out of 368 family homes and child care 
centers that received CCDF funding during FFY 2018 to improve our understanding of the State 
agencys monitoring of child care provider compliance with State criminal background check 
requirements.  We based our provider selection on geographic area.  For licensing purposes, 
Hawaii is divided into six geographic areas.  We determined the geographic area that each 
provider was located within and grouped the providers by area accordingly.  We selected at 
least two family-home providers and one child-care center provider within each geographic 
area to ensure coverage across the State.  We used the following factors when making the 
selection within each geographic area: 
 
  Total capacity (the maximum number of children to be served at the provider 
location): We sorted the list of providers based on the highest number of children being 
served and selected the provider with the highest capacity (i.e., the larger family homes 
and larger child-care centers).  
 
 
13 The six States in CCDF Phase I were New York, Nevada, Colorado, Georgia, New Hampshire, and Illinois 
(Appendix B). 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  9    CCDF funding received (the total amount of CCDF funding received for FFY 2018): We 
sorted the list based on the amount of CCDF funding received per provider and selected 
the provider with the highest amount of CCDF funding received.  
 
We conducted unannounced site visits at 15 family-home providers, where we obtained a list of 
all current employees or household members for each provider.  We compared this list with the 
list provided by the State agency to verify that they were the same.  We performed a 
walkthrough of each family home to observe anyone in the household and discussed any 
challenges or obstacles that the provider faced with adhering to the criminal background check 
requirements.   
 
In addition, we contacted 15 child-care center providers to request a list of all current 
employees at each provider and verified this list against the list provided by the State agency.  
In total, we reviewed supporting documentation for 550 individuals who were current 
employees or household members at 30 different child-care-provider locations.   
 
We performed fieldwork at the State agency office in Honolulu, Hawaii, and at various family-
home providers in April and May 2019. 
 
We limited our review of internal controls to obtaining an understanding of the laws and 
regulations concerning the State agencys monitoring process to ensure child care provider 
compliance with State requirements related to criminal background checks. 
 
METHODOLOGY 
 
To accomplish our objective, we: 
 
  reviewed applicable Federal and State laws, regulations, and guidance;  
 
  identified criminal background check requirements that had been fully implemented by 
the State agency; 
 
  identified criminal background check requirements that had not yet been implemented 
by the State agency; 
 
  interviewed State agency officials to gain an understanding of the States monitoring 
process for provider compliance with criminal background check requirements 
established under the CCDBG Act; 
  
  conducted site visits at each of the 15 family-home-provider locations to obtain a 
current list of all employees or household members and obtained supporting 
documentation or evidence from HANA to determine whether all of the required 
criminal background checks were completed; 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  10    contacted 15 child-care-center providers to obtain a list of all current employees at each 
center and obtained supporting documentation from HANA to determine whether all of 
the required criminal background checks were completed; 
 
  reviewed and analyzed a nonstatistical sample of the records of 550 employees from 
the 15 child-care centers and 15 family homes that received CCDF funding during 
FFY 2018 to determine whether all the required criminal background checks were 
completed; and 
 
  discussed the results of our audit with State agency officials.  
 
We conducted this performance audit in accordance with generally accepted government 
auditing standards.  Those standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions 
based on our audit objectives.  We believe that the evidence obtained provides a reasonable 
basis for our findings and conclusions based on our audit objectives. 
   
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  11  APPENDIX B: PRIOR OFFICE OF INSPECTOR GENERAL REPORTS RELATED TO  
CRIMINAL BACKGROUND CHECK REQUIREMENTS 
 
Report Title  Report Number  Date Issued 
Indianas Monitoring Did Not Ensure Child Care Provider     
Compliance With State Criminal Background Check Requirements     
at 17 of 30 Providers Reviewed  A-05-19-00012  8/26/2020 
Rhode Islands Monitoring Did Not Ensure Child Care Provider     
Compliance With State Criminal Background Check Requirements     
at 18 of 30 Providers Reviewed  A-01-18-02505  8/17/2020 
New Jerseys Monitoring Did Not Ensure Child Care Provider     
Compliance With State Criminal Background Check Requirements     
at 9 of 30 Providers Reviewed  A-02-19-02004  7/24/2020 
Utahs Monitoring Process Generally Ensured Child Care Provider     
Compliance With State Criminal Background Check Requirements  A-07-19-06085  7/21/2020 
Illinois Monitoring Did Not Ensure Childcare Provider Compliance     
With State Criminal Background Check Requirements at 12 of 30     
Providers Reviewed  A-05-19-00016  4/29/2020 
New Hampshires Monitoring Did Not Ensure Childcare Provider     
Compliance With State Criminal Background Check Requirements     
at 21 of 30 Providers Reviewed  A-01-18-02504  4/3/2020 
New Mexicos Monitoring of Childcare Providers Generally     
Ensured Provider Compliance With State Criminal Background     
Check Requirements at 30 Childcare Providers Reviewed   A-06-19-07001  2/19/2020 
Georgias Monitoring of Childcare Providers Ensured Provider     
Compliance With State Criminal Background Check Requirements  A-04-19-03580  2/12/2020 
Tennessees Monitoring Ensured Compliance With Criminal     
Background Check Requirements at 28 of the 30 Childcare     
Providers Reviewed   A-04-19-02023  1/15/2020 
All Six States Reviewed Had Partially Implemented New Criminal     
Background Check Requirements for Childcare Providers, and Five     
of the States Anticipate Full Implementation by Fiscal Year 2020  A-05-19-00015  8/23/2019 
New York Has Not Fully Implemented New Criminal Background     
Check Requirements for Childcare Providers  A-02-17-02011  1/8/2019 
Nevada Implemented Some New Criminal Background Check     
Requirements for Childcare Providers, but Challenges Remain for     
Unimplemented Requirements  A-09-17-01003  9/19/2018 
Colorado Implemented Many New Criminal Background Check     
Requirements for Childcare Providers, but Challenges Remain for     
Unimplemented Requirements   A-07-17-06076  9/17/2018 
Georgia Implemented Most New Criminal Background Check     
Requirements for Childcare Providers, but Challenges Remain for     
Unimplemented Requirements  A-04-18-03578  7/27/2018 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  12  Report Title  Report Number  Date Issued 
New Hampshire Implemented Most New Criminal Background     
Check Requirements for Childcare Providers, but Challenges     
Remain for Unimplemented Requirements  A-01-18-02500  7/9/2018 
Illinois Implemented Most New Criminal Background Check     
Requirements for Childcare Providers, but Challenges Remain for     
Unimplemented Requirements  A-05-17-00047  6/4/2018 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  13  APPENDIX C: HAWAIIS WAIVER AND IMPLEMENTATION STATUS OF CHILD CARE AND 
DEVELOPMENT FUND CRIMINAL BACKGROUND CHECKS 
 
In its 2019 through 2021 CCDF State plan, the State agency requested that ACF approve a 
waiver to allow additional time for new and existing child-care staff to become compliant with 
the NCIC NSOR check, the inter-State criminal registry check, and the inter-State child abuse 
and neglect registry check.14  The State agency also requested additional time for existing child-
care staff to become compliant with the FBI fingerprint check and the in-State criminal registry 
check every 5 years.  The waiver request was approved by ACF15 and allowed additional time 
(through September 30, 2020) for the State agency to ensure that new and existing staff 
completed the NCIC NSOR check, the inter-State criminal registry check, and the inter-State 
child abuse and neglect registry check and to ensure that existing staff completed the FBI 
fingerprint check and the in-State criminal registry check every 5 years.  The State agency did 
not request additional time for checks of the State child abuse and neglect registry or the State 
sex offender registry. 
 
See the table on the following page for the implementation status of the State agencys CCDF 
criminal background checks as September 30, 2018.   
 
   
 
14 Hawaii had also requested additional time for prospective and existing child care staff to become compliant with 
the inter-State sex offender registry check.  However, during our review, Hawaii officials received clarification on 
what this check entailed and determined that they were already in compliance with this requirement.  
 
15 ACF approved Hawaiis initial waiver request on October 30, 2018 (effective October 1, 2018) and the extension 
of the waiver on February 19, 2020. 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  14  Table: Hawaiis Implementation Status of Child Care and Development Fund  
Criminal Background Checks  
 
OIG Analysis of State Agencys 
Implementation 
Criminal Background Check  Implementation Status (Includes a 
Status as of 
Requirements  Review of Hawaiis Laws and 
09/30/2018 
Regulations) 
FBI Criminal History Fingerprint Check  Partially 
HRS  846-2.7 
45 CFR  98.43(b)(1)  Implemented16 
NCICs National   Hawaii has a waiver of the deadline for 
Not 
Sex Offender Registry  implementing this requirement until 
Implemented 
45 CFR  98.43(b)(2)  September 30, 2020. 
In-State Criminal Registry  Partially 
HRS  346-154 and 846-2.7 
45 CFR  98.43(b)(3)  Implemented 
In-State Sex Offender Registry 
Implemented  HRS  346-154 
45 CFR  98.43(b)(3) 
In-State Child Abuse and  
Neglect Registry  Implemented  HRS  346-154 
45 CFR  98.43(b)(3) 
Hawaii has a waiver of the deadline for 
Inter-State Criminal Registry  Not 
implementing this requirement until 
45 CFR  98.43(b)(3)  Implemented 
September 30, 2020. 
Inter-State Sex Offender Registry 
Implemented  HRS  346-154 
45 CFR  98.43(b)(3) 
Inter-State Child Abuse and Neglect  Hawaii has a waiver of the deadline for 
Not 
Registry  implementing this requirement until 
Implemented 
45 CFR  98.43(b)(3)  September 30, 2020. 
 
16 As of September 30, 2018, Hawaii had implemented the FBI criminal history fingerprint check for new 
(prospective) child-care staff members.  Hawaii currently has a waiver in place until September 30, 2020, to 
implement the requirement that the FBI and in-State criminal history fingerprint checks be performed every 
5 years for existing employees. 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  15  APPENDIX D: FEDERAL AND STATE REQUIREMENTS RELATED TO  
CRIMINAL BACKGROUND CHECKS 
 
FEDERAL REGULATIONS 
 
According to Federal regulations, States must have in effect requirements, policies, and 
procedures to require and conduct criminal background checks for child care staff members, 
including prospective child-care staff members of all licensed, regulated, or registered child 
care providers and all child care providers eligible to deliver services for which assistance is 
provided (45 CFR  98.43(a)(1)).  
 
Childcare provider means a center-based child-care provider, a family child-care provider, or 
another provider of child care services for compensation and on a regular basis that (A) is not 
an individual who is related to all children for whom child care services are provided and (B) is 
licensed, regulated, or registered under State law or eligible to receive assistance provided 
under this subchapter (45 CFR  98.43(a)(2)(i)). 
 
Childcare staff member means an individual (other than an individual who is related to all 
children for whom child care services are provided) (A) who is employed by a child care 
provider for compensation, including contract employees or self-employed individuals; 
(B) whose activities involve the care or supervision of children for a child care provider or 
unsupervised access to children who are cared for or supervised by a child care provider; or 
(C) any individual residing in a family child care home who is age 18 and older (45 CFR 
 98.43(a)(2)(ii)). 
 
Federal regulations require States to conduct two national checks: (1) an FBI criminal history 
fingerprint check using Next Generation Identification17 (45 CFR  98.43(b)(1)) and (2) a search 
of the NCICs NSOR for child care staff members or prospective staff members (45 CFR 
 98.43(b)(2)). 
 
According to Federal regulations, States are required to conduct a search of three in-State 
registries: (1) the State criminal registry (using fingerprints), (2) the State sex offender registry, 
and (3) the State-based child abuse and neglect registry in the State in which the child care staff 
member or prospective staff member resides (45 CFR  98.43(b)(3)). 
 
In addition, States are required to conduct a search of three inter-State registries: (1) the 
criminal registry in each State (fingerprints optional), (2) each States sex offender registry, and 
(3) each States child abuse and neglect registry in the State(s) in which the child care staff 
member or prospective staff member resided during the preceding 5 years (45 CFR 
 98.43(b)(3)). 
 
17 The FBI fingerprint check, Next Generation Identification (formally the Integrated Automated Fingerprint 
Identification System), provides the criminal justice community with the worlds largest and most efficient 
electronic repository of biometric and criminal history information.   
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  16  Federal regulations require States to have requirements, policies, and procedures in place to 
conduct criminal background checks for child care staff members and prospective staff 
members prior to employment and at least once every 5 years (45 CFR  98.43(d)(2)). 
 
STATE REQUIREMENTS 
 
According to the Hawaii Revised Statutes:  
 
The [State agency] shall develop standards to ensure the reputable and 
responsible character of an applicant to operate a child care facility, prospective 
employees of the applicant, household members, and new employees or 
household members of the provider after registration or licensure, which shall 
include criminal history records checks in accordance with section 846-2.7, sex 
offender registry checks, child abuse records checks, and adult abuse 
perpetrator checks (HRS  346-154(a)).   
 
The criminal history record check shall include the submission of fingerprints to: (1) the FBI for a 
national criminal history record check and (2) the Hawaii Criminal Justice Data Center for a 
State criminal history record check that shall include nonconviction data (HRS  846-2.7). 
 
Hawaii regulations require a State name-based criminal history record check and a child 
abuse/neglect history check to be conducted at least once every year on all required individuals 
(Hawaii Administrative Rules  17-891.1-3(d) and 17-892.1-3(d)). 
   
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  17  APPENDIX E: NUMBER OF INDIVIDUALS MISSING REQUIRED CRIMINAL BACKGROUND CHECKS 
AT 30 SELECTED PROVIDERS 
Number of Employees or 
Number of Employees or 
Provider  Household Members 
Provider Type  Household Members 
Number  Missing Required Criminal 
Reviewed 
Background Checks 
1  Family Home  3  0 
2  Family Home  5  0 
3  Family Home  2  0 
4  Family Home  4  0 
5  Family Home  2  0 
6  Family Home  4  0 
7  Family Home  4  0 
8  Family Home  3  0 
9  Family Home  4  0 
10  Family Home  4  0 
11  Family Home  4  0 
12  Family Home  2  0 
13  Family Home  4  0 
14  Family Home  2  0 
15  Family Home  2  0 
Total for Family Homes  49  0 
16  Center  52  0 
17  Center  44  0 
18  Center  16  0 
19  Center  50  0 
20  Center  21  2 
21  Center  38  0 
22  Center  13  0 
23  Center  14  0 
24  Center  29  0 
25  Center  12  0 
26  Center  112  1 
27  Center  18  0 
28  Center  37  1 
29  Center  32  0 
30  Center  13  0 
Total for Child Care Centers  501  4 
     
Combined Totals  550  4 
 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  18  APPENDIX F: STATE AGENCY COMMENTS 
 
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  19   
Hawaiis Monitoring of Child Care Providers Criminal Background Checks (A-09-19-01000)  20