An audit conducted by the state has uncovered that Vermont’s child care agency is not adhering to necessary federal guidelines, raising concerns over the potential loss of about $500,000 in federal funds.

The investigation, led by State Auditor Doug Hoffer, specifically assessed how the Child Development Division (CDD) of the Department for Children and Families handles reports of child care violations. Findings from the audit indicate that the agency has not fulfilled all federal requirements.

Between January 2022 and December 2024, records from the Bright Futures Information System revealed that CDD reported a total of 131 significant violations. The inconsistency in CDD’s classification of what constitutes a serious violation has been highlighted as a factor that could endanger children’s safety.

Moreover, the audit identified that although federal legislation allows individuals to begin work in child care after undergoing criminal history fingerprint checks, CDD permits staff to start before these checks are complete. Additionally, it pointed out delays in the CDD’s background check processing time.

The auditor emphasized the importance of complying with these federal regulations, asserting that given the financial implications, adherence is critical for the state. CDD has committed to implement all suggestions provided in the audit.