Audit of Costs Claimed for the Statewide Automated Child Welfare Information System in California, Santa Clara County, January 1, 1999, Through June 30, 2003

EXECUTIVE SUMMARY:

Our objective was to determine whether costs that Santa Clara County claimed for Title IV-E reimbursement were allowable under Federal and State regulations.  During the period January 1, 1999, through June 30, 2003, Santa Clara claimed $572,927 that was not allowable pursuant to Federal and State regulations, and we could not determine the allowability of the remaining $6,148,440.

We recommended that the State: (1) refund the $286,464 Federal share of unallowable costs claimed; (2) work with ACF to determine what portion of the $6,148,440 ($3,074,220 Federal share) is allowable under Title IV-E and refund the Federal share;  (3) review costs that Santa Clara claimed subsequent to the audit period for similar issues and refund the Federal share of any unallowable costs identified; and (4) instruct Santa Clara to strengthen its internal controls.  The State agreed to refund $279,042 (Federal share), but did not concur with $14,844 of the $572,927 of unallowable costs.  The State also did not concur with the second recommendation, but did agree with the last two.