Review of Ohio Department of Job and Family Services Claims for Costs Reported by the Hamilton County Department of Job and Family Services

Our review found $59 million (Federal share) in unallowable Administration for Children and Families (ACF) costs identified in the Ohio Department of Job and Family Services' (State agency) report for services provided by child welfare organizations from July 1, 2001, through June 30, 2004. We conducted this audit at the request of ACF after the State agency identified a total of $216 million in unallowable costs reported by the Hamilton County Department of Job and Family Services (County agency). The County agency inappropriately allocated the child welfare organizations' costs through indirect cost pools. The State agency inappropriately claimed the costs because it relied on the County agency's reported program costs and did not ensure that the County agency allocated the costs in accordance with the cost allocation plan and other Federal requirements.

We recommended that the State agency (1) refund $59 million to the Federal Government for County agency costs inappropriately claimed through the cost pools and (2) ensure that the County agency appropriately allocates and reports allowable costs in accordance with the cost allocation plan and other Federal requirements. The State agency generally concurred with our findings and recommendations.