Review of Unobligated Balances and Cost Matching in the Title IV-B, Subpart 2, Promoting Safe and Stable Families Program

This final report consolidates the results of five State reviews.  Objectives were to determine:  (1) if the five States were using all Federal funds available to them for the Promoting Safe and Stable Families program, and (2) if the selected States met their cost matching requirements.  Our review showed that the five States:  (1) did not use $66.5 million or 34 percent of the $197.7 million available for Fiscal Years 1994 through 1999, and (2) met the required 25 percent State cost match for the Federal funds expended during each year of participation.  The unobligated funds could not be used by other States because the program statute did not provide reallotment authority.  During our review, the Administration for Children and Families (ACF) submitted proposed legislation that would provide it with reallotment authority.  The proposed legislation was signed into law on December 18, 2001.  We recommended that ACF:  (1) more closely monitor program performance in the States to ensure accurate and timely financial reporting; and (2) establish a mechanism to identify grant funds in sufficient time to allow reallotment for other States' use.  The ACF generally agreed with our findings and recommendations.