Review of Title IV-E Training Costs in Maine for State Fiscal Years 2001 Through 2003

EXECUTIVE SUMMARY:

The objective of this audit was to determine whether the State complied with Office of Management and Budget (OMB) Circular A-87 and Administration for Children and Families (ACF) guidance in claiming Federal reimbursement for costs for foster care and adoption assistance training.  The State did not comply with OMB Circular A-87 and ACF guidelines.  Specifically, the State (1) did not allocate perservice training costs between the Federal and State programs, (2) incorrectly calculated the Federal share of indirect costs, and (3) inaccurately reported the amount claimed for Federal reimbursement.  As a result, the State misstated Federal claims for training costs during State fiscal years 2001 through 2003.  Identified errors resulted in $4.3 million in overstatements and $1.3 million in understatements, for a net Federal overstatement of $3 million.  We recommended a financial adjustment for $3 million and procedural improvements.  The State concurred with our recommendations.

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