Federal Reimbursement for Foster Care

HEHS-95-197R: Published: Aug 11, 1995. Publicly Released: Aug 11, 1995.

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GAO provided information on federal reimbursement to foster care facilities serving California, focusing on whether four out-of-state group homes operated primarily for the detention of children and were eligible for federal reimbursement. GAO noted that: (1) California claimed expenditures of $552 million for federal foster care reimbursement in 1994; (2) over 94,000 of California's children were in foster care at the end of 1994; (3) there was little evidence of inappropriate claims for federal reimbursement for placements at the four out-of-state group homes in fiscal years 1993 and 1994; and (4) one facility's claim for federal reimbursement was inappropriate, since the facility had been designated as a detention facility.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: HHS has instructed California to return funds that the state had claimed in the past for what turned out to be ineligible placement facilities (Rite of Passage). HHS has also sent a team to visit Rite of Passage facilities to determine if they subsequently have become eligible for placement and thus funding.

    Recommendation: The Secretary of Health and Human Services should determine the amount of federal funds claimed by California for placements in Rite of Passage facilities for fiscal years 1993 and 1994 and recover all reimbursements, except those for placements that the state can demonstrate were at nondetention Rite of Passage sites.

    Agency Affected: Department of Health and Human Services

 

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