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EXECUTIVE SUMMARY:
The objective of this review was to determine if retroactive foster care adjustments were supported by Federal regulations. The Connecticut Department of Children and Families (DCF) claimed a total of $45.2 million ($22.6 million Federal share) in retroactive foster care adjustments for the quarters December 1996 to September 1999. The DCF was not able to provide required support for $3.92 million ($1.96 million Federal share) in retroactive foster care adjustments made under its prior computer system for quarters December 1996 through December 1997. Also, DCF was unable to provide individual retroactive adjustments to support costs totaling $22.54 million ($11.27 million Federal share) for the first quarter under its current system. We recommended that: (1) retroactive adjustments continue to be supported by detailed reports and that DCF incorporate this requirement in their written procedures; (2) the Federal share of $1.96 million claimed under the prior system be returned to ACF; and (3) the DCF work with ACF to reach a workable solution for the $22.54 million ($11.27 million Federal share) that we set aside.