Review Of Costs Claimed By The New York State Department of Family Assistance, Office of Children and Family Services for Equipment Provided By IBM, and MicroAge Under Phase II of The CONNECTIONS Project

EXECUTIVE SUMMARY:

The Omnibus Budget Reconciliation Act of 1993 and Public Law 104-193 provided federal financial participation (FFP) for the planning, development and installation of Statewide Automated Child Welfare Information Systems (SACWIS).  Our review of SACWIS equipment and related costs provided by two outside contractors, which were claimed for federal reimbursement by the State of New York during the period March 31, 1996 to September 30, 2000, found problems with the accuracy and reliability of the State's SACWIS inventory management system.  Moreover, we identified SACWIS costs that were ineligible for FFP. In addition to procedural corrections, we recommended financial adjustments totaling $4.9 million ($3.6 million federal share).