ALBUQUERQUE, N.M. — A new report from the City of Albuquerque’s Office of Inspector General (OIG) alleges that nearly $288,000 in federal child care grant money was improperly distributed to city employees — including upper management — in the form of bonuses that violated grant spending rules.
The investigation, completed in late October, found that 27 employees with the Department of Family and Community Services received “premium pay” disbursements from the Child Care Stabilization Grant, a federal program meant to support licensed child care centers during the pandemic.
According to the report, the bonuses were issued to staff who were not employed at child development centers or otherwise ineligible under federal guidelines.
The questioned payments totaled $287,972.77 and included amounts ranging from approximately $3,800 to $22,500.
Federal and state regulations specify that such funds may only be used for “child care program personnel” directly involved in providing care. The New Mexico Early Childhood Education and Care Department confirmed to investigators that the grant could not be used for administrative or unrelated city staff.
The OIG report states that “employees, including high-ranking department personnel, received several premium pay disbursements in violation” of federal and state rules.
The investigation also found that the Division Manager overseeing the program completed 21 grant applications using the names and electronic signatures of site managers — known as “Head Teachers” — without their direct involvement.
In one case, a signature was used for a former employee who had retired nine months earlier. Investigators said this practice was “intentional and misleading” and transferred risk and accountability to the employees whose names appeared on the documents.
The OIG also noted discrepancies in enrollment capacity figures listed on several applications, which may have resulted in larger grant awards.
City officials disputed the characterization of the findings, saying decisions were made based on state guidance during the COVID-19 public health emergency.
In a written response, the department stated that the payments were intended to recognize all essential workers who supported the city’s early childhood programs, including administrative, fiscal, janitorial, and maintenance staff.
“The determination of premium pay disbursements was based on Early Childhood Education and Care Department guidance given during statewide meetings,” the City wrote. “Eligibility included direct service personnel, administrative leadership, HR and fiscal staff, bus drivers, and cooks.”
Officials said they plan to strengthen internal controls, add written procedures for premium pay, and ensure that only authorized personnel complete grant applications in the future.
On November 14, 2024, the city’s Accountability in Government Oversight Committee voted 5–0 not to approve the Inspector General’s report, citing what it called “insufficient jurisdiction” by the OIG to investigate portions of the case.
A formal cautionary statement was attached to the report, advising readers that the committee did not endorse its findings.
The OIG has recommended that the city determine whether the nearly $288,000 in questioned payments should be recouped from the employees or repaid to the granting authority using general funds.
Other recommendations include defining “one-time premium pay,” tightening signature controls, and providing additional training for staff who approve or manage grant expenditures.
The Child Care Stabilization Grant program was funded under the American Rescue Plan Act of 2021, designed to help child care providers stay open and retain staff during the pandemic.
Full Report in the Link Below:
