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HRD-81-73 1 (1981-04-20)

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BY THE U,S, GENERAL ACCOUNTING OFFICE

Report To The Secretary Of

Health And Human Services


Action Needed To Avert

Future Overpayments To States

For AFDC Foster Care



It is essential that the Department of Health
and Human Services promptly audit fiscal
year 1978 reimbursements to States under the
Aid to Families with Dependent Children
foster care program. Payments made during
1978 will be used as the basis for determining
allotments to States for fiscal years 1981-84.

GAO's review of reimbursements to New
York and California--which received more
than half of the $226 million paid to States
in 1978--showed that the States were reim-
bursed improperly for several types of costs.


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    115166


Unless the correct level of fiscal year 1978
reimbursements is determined, millions of
Federal dollars could be lost in future over-
payments. HHS also should recover all costs
determined to be unallowable under the fos-
ter care program.


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   HRD-81-73
APRIL 20, 1981


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