Review of Arkansas' Participation in Title IV-B, Subpart 2 of the Social Security Act, Promoting Safe and Stable Families for Fiscal Years 1994 through 1999

EXECUTIVE SUMMARY:

This report provides the results of our review of Arkansas' Department of Human Services, Division of Children and Family Services' (DCFS) participation in Title IV-B, Subpart 2 Promoting Safe and Stable Families Program in fiscal years (FY) 1994 through 1999.  The objectives of our review were to determine: (1) the reasons why DCFS did not use all Federal funds for the Promoting Safe and Stable Families Program and (2) if DCFS met its cost sharing requirements. The DCFS did not use $3,658,873 in grant awards from FYs 1994 through 1999. This occurred because DCFS did not take full advantage of the funding available in FY 1994 for planning and developing its Promoting Safe and Stable Families Program. The DCFS did not spend any grant funds available at the inception of the program. Instead it was not until the second year of the 2-year grant before any funds were spent. This pattern of not spending funds until the second year of the 2-year grant period has continued and currently still exists. The DCFS officials explained that a combination of factors made administering the program difficult and contributed to the State's spending patterns and resulting unobligated balances. These factors included operating with an outdated accounting system, difficulty contracting and procuring services, and the disbanding of the Family Preservation Unit. Based on the information provided by DCFS officials, DCFS met its required 25 percent State cost match for FYs 1994 through 1999.