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Connecticut Title IV-E Training Costs Did Not Always Comply With Federal Requirements

The Department of Children & Families (State agency) improperly claimed Title IV-E training costs at the enhanced rate (75 percent) that it should have claimed at the administrative rate (50 percent), resulting in a net overpayment of $1.3 million. This occurred because the State agency did not have procedures in place to ensure that it claimed the enhanced rate only when training (1) occurred during an employee's initial inservice period and (2) was intensive. Federal financial participation is available for Title IV-E agency training sessions at an enhanced rate (75 percent) for salaries, fringe benefits, travel, and per diem for employees in initial inservice training of at least 1 week. An employee who accepts a new position at a Title IV-E agency may be considered a new employee for the purpose of training cost reimbursement. However, training cannot be intensive when an employee has a full caseload.

We recommended that the State agency (1) refund the Federal share of $1.3 million to the Administration for Children and Families (ACF) and (2) implement procedures to correlate training, human resources, and caseload data to help ensure that it claims training costs in accordance with Federal requirements. The State agency stated that it would resolve all outstanding issues with ACF.