Amends 31 U.S.C. 3353(a)(1) by (1) removing the terminal "and" from subparagraph (A), (2) replacing the period at the end of subparagraph (B)(iv) with a semicolon and conjunction, and (3) adding subparagraph (C) to require that each report submitted under subparagraph (B) include the amount of improper payments recovered by the executive agency in the fiscal year covered by the report.

Modifies section 1902(a) to add a new requirement (paragraph (90)) that State agencies notify the Secretary and the HHS Inspector General after certain determinations, and adds a new subsection (yy) defining those determinations (large increases in payments or numbers of providers in a zip code and county in a single year). Also adjusts punctuation in existing paragraphs to accommodate the new paragraph.

Amends section 2107(e)(1) by redesignating existing subparagraphs (I) through (W) as (J) through (X) and inserting a new subparagraph (I) that references the newly added subsections (a)(90) and (yy) of section 1902 (notification and determination of certain increased payments or providers).

Amends 42 U.S.C. 9858c to (1) replace subsection (c)(2)(S) with an assurance that State plans require payments to child care providers be based on recorded attendance rather than enrollment alone, and (2) add a new subsection (e) specifying that payments are reimbursements made after provision of services and not required prior to service provision.

Adds a new subsection (c) to 42 U.S.C. 9858i requiring each child care provider receiving payments under the subchapter to prepare and retain attendance and service records for 7 years and to make those records available for audits by the Secretary, the Attorney General, and the Comptroller General of the United States.