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Audit (A-06-06-00105)

12-11-2008
Audit of New Mexico's Title IV-E Administrative and Training Costs for the 2-Year Period Ended September 30, 2002

Executive Summary

For the period October 1, 2000, through September 30, 2002, the New Mexico Children, Youth and Families Department claimed $1.7 million ($1.1 million Federal share) in training and administrative costs that were not allowable, supported, or allocated in accordance with Federal requirements. We could not determine what portion of the remaining $33.4 million ($17.6 million Federal share) in Title IV-E costs was allowable because the State did not use the timestudy methodology included in its approved cost allocation plan to allocate costs, could not produce sufficient documentation to support claimed costs, and did not describe training course content in the State plan for us to determine whether the content was closely related to allowable Title IV-E activities.

We recommended that the State (1) refund the $1.1 million Federal share of unallowable costs; (2) work with the Department of Health and Human Services, Division of Cost Allocation, and the Administration for Children and Families to determine the allowable portion of the $17.6 million Federal share of potentially unallowable costs and refund any unallowable costs; and (3) implement procedural improvements. In written comments on our draft report, the State did not specifically address our recommendations.

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