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HRD-84-2 1 (1984-08-10)

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REPORT BY THE



Comptroller General


OF THE UNIED STATES


Better Federal Program Administration

Can Contribute To Improving

State Foster Care Programs



The Adoption Assistance and Child Welfare Act of 1980
provides for annual federal incentive payments to states if
they improve foster care programs to(1 ) avoid unnecessary
removal of children from their homes, (2) prevent extended
stays in foster care, and (3) reunify children with their
families or place them for adoption During the first year of
implementation, much confusion existed among the states,
and some states received incentive funds without com-
plying with all of the act's requirements Of the 33 states
and Puerto Rico which certified as being in compliance
with the program in fiscal year 1981. the Department of
Health and Human Services (HHS) later found 4 ineligible
Additionally, five other states voluntarily withdrew from
the program anticipating they would be found ineligible

Confusion occurred in part because HHS did not provide
states timely guidance or require implementation of all of
the act's requirements HHS interprets the act to provide it
discretion for allowing states to participate without having
implemented all of the act's requirements GAO concludes
this is inconsistent with the legislation's intent and that,
consequently, states have not been held to requirements
as rigorous as those of the act The Secretary should revise
the program regulations to provide additional guidance and
undertake new compliance reviews









                                                                  GAO/HRD-84-2
                                                               AUGUST 10, 1984


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