EXECUTIVE SUMMARY:
A prior audit disclosed that California claimed an estimated $103.4 million ($51.7 million Federal share) for ineligible and improper foster care maintenance payments during the 3-year period ending September 30, 1991. A financial adjustment was not recommended at that time due to a moratorium imposed by the Congress on seeking repayments of Federal funds under the title IV-E program. The moratorium has now expired, and the State has provided supplemental information to the Administration for Children and Families (ACF) regarding the previous questionable cases. At the request of ACF, we have performed a follow-on review of the information submitted by the State. The review disclosed that the amount inappropriately claimed now totals approximately $78 million ($39 million Federal share). We are recommending a financial adjustment for the $39 million.