Complete Text of Report is available in PDF format (7.3 mb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.
EXECUTIVE SUMMARY:
This is the second of three reports being issued by the Office of Inspector General covering North Carolina’s retroactive claims for child care. In this audit, our random sample of 200 IV-E child-care line items showed that 28 did not meet the requirements for Federal financial participation (FFP). As a result, the State was reimbursed $186,282 (FFP) for unallowable IV-E child-care payments. In our opinion, the unallowable payments were the result of the State’s inadequate review of its consultant’s identification of children who were to be determined eligible for a specific grant. In addition, each grant had different requirements; yet, the State’s accounting system did not identify which grant program was used to pay for a child’s care. Also, the claims did not have documentation to support eligibility factors and the need for services. We recommended that the State: (1) refund the $186,282 (FFP) overpayment; (2) develop accounting procedures that identify the grant used to pay for a child’s care; (3) maintain documentation to support eligibility for all child-care claims for required periods; and (4) monitor its consultant to ensure that only allowable child-care claims are filed for FFP. State officials generally disagreed with our findings and recommendations.