Costs Claimed Under Title IV-E Foster Care Program for Children in Castille Contracted Detention Facilities from October 1, 1997, to September 30, 2002, Commonwealth of Pennsylvania Department of Public Welfare

EXECUTIVE SUMMARY:

Our objective was to analyze 18 Expenditure Adjustments from the Title IV-E Castille maintenance placement claims to determine if they were correctly calculated and supported by claim documentation.  Of the $18.3 million Federal share claimed by the Department of Public Welfare (DPW) from October 1997 through September 2002 $609,681 was not allowable.  The Commonwealth of Pennsylvania (Pennsylvania) claimed 9,002 days of care for children who did not meet Federal requirements for eligibility.  Claims for these ineligible children amounted to $517,191 FFP.  Pennsylvania did not provide documentation to support expenditures of $92,490 FFP under the Castille facility accounting codes.  We recommended Pennsylvania refund unallowable foster care maintenance placement costs in the amount of $609,681 claimed under the Castille program.  The State concurred with the first finding but not the second, claiming some records were located after the audit and others destroyed.  We contend that the claim was submitted within the 3-year record retention period.