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Highlights

The Department of Health and Human Services (HHS) is responsible for ensuring that state cost-allocation plans, upon which federal financial participation in administrative costs for the Aid to Families with Dependent Children (AFDC) program are based, accurately reflect the federal reimbursable share of costs.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Health and Human Services 1. The Secretary of Health and Human Services should define the specific cost-allocation plan review and monitoring responsibilities of the Divison of Cost Allocation (DCA) and the Office of Family Assistance (OFA).
Closed - Implemented
Administrative instructions defining DCA and OFA responsibilities were issued in June 1982.
Department of Health and Human Services 2. The Secretary of Health and Human Services should develop adequate guidelines for DCA and OFA to use in future cost-allocation plan review efforts.
Closed - Implemented
Guidelines were issued in September 1983.
Department of Health and Human Services 3. The Secretary of Health and Human Services should instruct DCA and OFA to follow up on the GAO findings to ensure that appropriate recovery of federal funds occurs.
Closed - Implemented
The state allocation plans noted in the report as needing revision were revised and the $6.6 million was recovered.
Department of Health and Human Services 4. The Secretary of Health and Human Services should issue guidelines establishing a system of uniform cost principles, procedures, and methodology for all welfare cost-allocation plans.
Closed - Implemented
Recent HHS monitoring shows that its November 1981 draft cost-allocation guidance to states is being followed, which fulfills the intent of this recommendation.
Department of Health and Human Services 5. The Secretary of Health and Human Services should evaluate existing staffing and work load levels to ensure that both DCA and OFA have enough technical capacity and staff to effectively review, approve, and monitor the implementation of cost-allocation plans and quarterly claims for reimbursement.
Closed - Implemented
A HHS task force evaluated the staffing and work load levels in late 1982 and recommended that current staffing levels be maintained.
Department of Health and Human Services 6. The Secretary of Health and Human Services should instruct DCA and OFA to conduct comprehensive reviews of state cost-allocation plans to identify areas in which the federal government may be bearing more than its fair share of AFDC administrative costs.
Closed - Implemented
HHS officials gave specific emphasis for comprehensive cost-allocation plan reviews during meetings with regional staff in 1982 and 1983.

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