Review of Selected Cost Centers Applied to Title IV-E Administrative and Training Costs Claimed by the Maryland Department of Human Resources

EXECUTIVE SUMMARY:

Our objective was to determine whether Maryland Department of Human Resources's claims for Title IV-E administrative and training costs complied with its cost allocation plan.  Maryland did not comply with its cost allocation plan.  During the audit, Maryland amended its plan and made adjustments to refund about $3.2 million.  We recommended that Maryland: refund $1,851,481 (Federal share) improperly claimed through unallowable cost centers, including two centers not identified in the plan and one center identified in the plan as dedicated 100 percent to State-only activities; and review claims made subsequent to our audit period to identify any additional claims made for these cost centers and make appropriate refunds.  Maryland concurred.