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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Federal Nonparticipating Foster Care Costs Which the New York State Department of Family Assistance Retroactively Claimed to the Emergency Assistance Program," (A-02-98-02002)

February 29, 2000

Complete Text of Report is available in PDF format (1.63 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


New York retroactively claimed $13.2 million ($6.6 million Federal share) in Federal nonparticipating foster care costs for reimbursement under the Title IV-A Emergency Assistance (EA) program. Our statistical sample of 100 such claims disclosed that 74 were not allowable for EA reimbursement. Specifically, 72 claims were unallowable because they included services provided outside the 12-month statutory limit for reimbursement, one claim was missing authorization, and one claim was for services which were provided after the emergency had ended. Based on our sample, we estimate that at least $7.3 million ($3.6 million Federal share) of New York's retroactive claim is unallowable. We are recommending a financial adjustment for the $3.6 million.