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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 Title IV-E Foster Care Program," (A-02-98-02004)

April 24, 2001


Complete Text of Report is available in PDF format (601KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

The New York State Department of Family Assistance (NYSDFA) (formerly the New York State Department of Social Services) awarded a contract to the New York State Association of Counties (NYSAC) to implement and administer a Federal Revenue Maximization Project (FRMP) designed to generate increased Federal funding. According to the terms of the contract, NYSDFA was to pay NYSAC a fee contingent on the revenue generated under the FRMP.  We reviewed a statistical sample of 100 foster care cases, totaling $1,268,262 (Federal share $634,131), which NYSDFA retroactively claimed to the Title IV-E Foster Care program.  We found that 7 of the 100 cases reviewed contained claims that were ineligible for Federal reimbursement.  The total amount improperly claimed to the Title IV-E Foster Care program for the 7 errors was $25,372 (Federal share $12,686).