Possible Misuse of Federal Funds Claimed for Local Welfare Costs in Pennsylvania

HRD-77-10: Published: Feb 11, 1977. Publicly Released: Feb 11, 1977.

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Federal reimbursement for employees in income maintenance functions in Pennsylvania were investigated. State and federal agency personnel were interviewed, and cost allocation plans, state and federal regulations, and accounting records were reviewed.

As of October 1975, County Boards of Assistance offices employed 9,840 employees who worked on several federal programs. Specific rates of federal payments could not be determined for each of the employees. Limitations on staffing are not imposed by federal regulations; at the state level, an overall staffing ceiling is established through the budgetary process. About 9 percent of a sample of social service workers in the state were performing income maintenance activities, and about 3 percent of designated income maintenance workers were performing social service activities. Because less than 15 percent of workers were performing out-of-function, the salaries of all workers were charged to their designated activities. The federal government was overcharged at least $429,000 because costs applicable to designated social workers were claimed by those performing income maintenance activities. Department of Health, Education, and Welfare personnel should take action to recover the $429,000 overcharge.

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