December 10, 2007

Philadelphia County's Title IV-E Claims for Children for Whom the Contractual Per Diem Rate for Foster Care Services Exceeded $300 From October 1997 Through September 2002

The Philadelphia County Department of Human Services (DHS) improperly claimed at least $11 million in Title IV-E foster care maintenance and administrative contract costs between 1997 and 2002, according to an audit conducted by the federal Office of the Inspector General. In addition, documentation submitted by DHS for another $21.5 million in claims lacked separate notations for Title IV-E eligible and ineligible services in contractors per-diem costs. The documentation, which included individualized educational programs and social workers progress notes, indicated that the contractors provided medical, educational, and rehabilitative services that were not eligible for Title IV-E foster care maintenance payments.

 Of 100 maintenance claims reviewed, which each had per-diem rates over $300, 45 were unallowable.

• 29 included costs for services provided by unapproved foster care providers or unlicensed facilities

• 19 claims included costs for services provided to youth who were not eligible for services

• Some claims included multiple errors