RESULTS OF
REVIEW
The changes made by DCFS in its operations allow SSA to rely on
DCFS as a representative payee for children in the County foster
care program receiving Social Security benefits. DCFS has established
a Hotline and a SSI unit to monitor children receiving Social Security
benefits and report timely to SSA events that may affect the childrens
benefits. These changes should substantially eliminate the types
of problems previously identified. We have initiated another review
to determine if DCFS has identified events that should have been
reported to SSA. This review will focus on events which occurred
prior to November 1996.
Although SSAs instructions to DCFS were adequate, they were
not always timely. SSAs written procedures did not address
technical issues raised by DCFS. As a result, there were delays in
responding to DCFS questions. We also identified a policy issue which
SSA should address. The issue is whether a county should be able
to increase its foster care rates for children who receive title
XVI benefits based on their title XVI eligibility rather than use
the established procedures used for other children in foster care.
DCFS Operational and Procedural Changes to Improve Reporting
to SSA
The primary changes made by DCFS to improve its reporting of events
to SSA was the establishment of a Hotline and an SSI Unit. The Hotline
was established to provide a central location for foster care parents
and DCFS social workers and eligibility workers to report events
affecting children. For example, when a child runs away from a home
or is no longer in the Countys custody, these events are to
be reported to the Hotline. The Hotline staff is responsible for
resolving the issues that arise from telephone calls and forwarding
actions to the SSI unit for children receiving Social Security benefits.
The SSI unit is responsible for reviewing the information received
from the Hotline and reporting to SSA, in a timely manner, events
that may affect childrens eligibility. In addition, DCFS has
assigned the SSI unit the responsibility of monitoring childrens
conserved funds to ensure that resources do not exceed the title
XVI limit of $2,000. These operational and procedural changes allow
DCFS to report events which affect childrens benefits in a
timely manner and prevent the deficiencies previously identified
from recurring in the future.
Communication Between SSA and DCFS
Generally, SSAs instructions to DCFS were adequate, although
not always timely. The lack of SSA written procedures to address
technically complex problems presented by DCFS and the need for policy
guidance from SSA Headquarters caused delays. We believe that SSAs
instructions generally were written to address the concerns of private
payees providing custody for an individual or small groups of beneficiaries,
not public agencies acting as intermediaries for large numbers of
children receiving various forms of assistance, such as Medicaid
and Aid to Families with Dependent Children. For example, on February
26, 1996, DCFS officials asked the Pasadena District Office for approval
to retroactively increase the foster care rates for 127 children.
SSA employees had no procedural guidelines as a basis for a decision
about the allowability of using conserved title XVI funds to provide
retroactive reimbursement. On March 19, 1996, DCFS requested
guidance in writing and sent it to SSA Headquarters. SSA did not
provide an official response until September 11, 1996.
Use of Title XVI Funds for Pay Increases to Foster Care Rates
During July 1996, DCFS retroactively increased the foster care rates
of some title XVI children. DCFS also made a policy decision to administratively
increase current foster care rates of children awarded title XVI
benefits. The effect of DCFS policies was to establish foster
care rates for children receiving title XVI benefits solely on the
basis of their title XVI eligibility.
We informed DCFS officials that the Office of the Inspector General
would take exception to any policy which increased the foster care
rates based only on the childrens title XVI eligibility. The
DCFS procedures must comply with State law which requires the assessment
of each childs needs as a basis for establishing the foster
care rate to be paid to a foster care parent. This assessment is
based primarily on a social workers opinion and medical professionals evaluations
as to a childs level of care needed. Therefore, establishing
foster care rates based on the fact that children are receiving title
XVI benefits without actually assessing the needs of each child is
not in accordance with the Countys foster care program nor
the spirit of the foster care or title XVI programs. The Counsel
to the Inspector General has reviewed this issue and concurred with
our position.
In August 1996, a DCFS official told us DCFS reversed the policies
and that the foster care rates for children receiving title XVI benefits
will be determined based on the criteria used for all children entering
the Countys foster care program. As a result, the rates should
be reduced and DCFS will have to continue to conserve about $150,000
per year in excess funds for childrens future needs. This is
based on foster care rate changes to about 34 children. These are
children whose foster care rates had been increased based on the
prior policy.
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