Office of Inspector General's Partnership Efforts - Texas State Auditor's Office Report on the Department of Protective and Regulatory Services' Administration of Foster Care Contracts

This audit was made by the Texas State Auditor' Office (SAO), with staff assistance from the Office of Inspector General, as part of the Inspector General's partnership efforts with States to expand audit coverage of foster care programs. The SAO report identifies some serious gaps in the Texas Department of Protective and Regulatory Services' (TDPRS) oversight of foster care contractors which could undermine TDPRS' efforts to ensure the safety of children in its care, and ensure that contractors provide the expected services and comply with contract requirements. Other problems noted included; (1) the foster care rate methodology was based upon a number of untested assumptions, (2) the TDPRS lacks adequate assurance about the accuracy of cost reports submitted by foster care providers, and (3) the TDPRS has not implemented policies and procedures to verify that child placing agencies are paying their foster homes the required minimum amount of maintenance payment. The TDPRS agreed with the SAO's findings and has begun taking action to correct the weaknesses identified in its administration of foster care contracts.