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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Two Selected Eligibility Requirements for New York State Title IV-E Foster Care Claims for New York City," (A-02-97-02002)

February 24, 2000

Complete Text of Report is available in PDF format (3.5 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


This final report estimates, based on a statistical sample, that New York claimed approximately $81.5 million ($40.7 Federal share) for foster care claims that did not meet requirements for Federal Financial Participation. In 9 cases the claims did not meet physical removal requirements (the requirement that the child be physically removed from their prior home within 6 months of court proceedings), and in 108 cases the State was unable to establish that the children were living in approved foster care homes. We referred our projected overpayments to the Administration for Children and Families for their review and determination of an appropriate resolution. We also recommended that the State and City develop and implement a comprehensive corrective action plan which ensures compliance with the physical removal eligibility requirement and more importantly, takes immediate and effective corrective action to ensure that foster care children are only placed in approved homes.