Action Needed To Avert Future Overpayments to States for AFDC Foster Care
HRD-81-73
Published: Apr 20, 1981. Publicly Released: Apr 20, 1981.
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Highlights
Until the Adoption Assistance and Child Welfare Act was enacted, the Department of Health and Human Services (HHS) matched payments available to the states under the the Aid to Families with Dependent Children (AFDC) program for foster home care of dependent children. The act established fiscal year (FY) 1978 as a base year for the computation of future allotments of foster care moneys. A GAO review showed certain unallowable practices regarding FY 1978 reimbursements which, if not given prompt attention, could continue to improperly increase future foster care allotments to some states.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Health and Human Services | The Secretary of Health and Human Services should recover overpayments made to New York City for unallowable administrative costs. |
Closed – Implemented
In September 1987, HHS adjusted New York's grant award as part of a general claims settlement for FY 1986 and recovered $34.5 million in unallowable administrative costs charged to the Foster Care Program.
|
| Department of Health and Human Services | The Secretary of Health and Human Services should require that all foster care reimbursements to the states for FY 1978 be audited to identify any unallowable costs, determine the correct level of FY 1978 federal reimbursements, and act to recover unallowable costs. |
Closed – Implemented
The Inspector General audits covering FY 1978 and agency action to recover unallowable costs fulfilled the intent of this recommendation.
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Topics
Administrative costsChild adoptionChild care programsCost analysisFederal aid to statesFoster childrenOverpaymentsPublic assistance programsRefunds to governmentFoster care