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HEHS-95-197R 1 (1995-08-11)

handle is hein.gao/gaobackxe0001 and id is 1 raw text is: M )0 United States (3 O General Accounting Office Washington, D.C. 20548 Health, Education and Human Services Division B-257440 August 11, 1995 The Honorable George Miller House of Representatives Dear Mr. Miller: As you know, when children do not receive proper care, states may remove them from their homes and place them in foster care. If the children are from low-income families, the federal government generally shares with the state the cost of foster care. States are responsible for ensuring that (1) the foster care homes or facilities receiving these children, whether within the state or out of state, protect the children and promote their growth and development and (2) claims for federal reimbursement of foster care expenses meet federal requirements. This letter responds to your concern that the State of California may be inappropriately placing children in four out-of-state group homes--Arizona Boys Ranch, Glen Mills, Rite of Passage, and VisionQuest. You have questioned whether these group homes hold for-profit status or operate primarily for the detention of children, in which case placements in these facilities would be ineligible for federal reimbursement. Under the Adoption Assistance and Child Welfare Act of 1980 (P.L. 96-272), to qualify for federal foster care reimbursement, placements must be in nonprofit facilities that operate for purposes other than the detention of children. This federal reimbursement is to be used solely for the foster care of children and not simply to detain youths in need of secure custody. On the basis of your concerns, our letter addresses the following questions: Why did some group homes serving California foster youths convert to nonprofit status? Did any of the four group homes meet the federal definition of a detention facility? Were any inappropriate federal reimbursements claimed for California youths placed in the four group homes? GAO/HEHS-95-197R Federal Reimbursement for Foster Care

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