Follow-Up Audit Report on The Human Resources Administration's
Foster Care Tracking and Claiming Systems

7F 96-128


June 24, 1996


Alan G. Hevesi Comptroller

First Deputy Comptroller        Executive Deputy Comptroller 
Steve Newman            	Edward Fitzpatrick

Deputy Comptroller For Audit Roger Liwer

Assistant Deputy Comptroller For Audit Guy Carlsen

Director Of Support Services Dennis Hochbaum


Bureau of Financial Audit EDP Division

Manager for EDP Audit Vincent Liquori

Audit Supervisor Bernard Schwartz



SUMMARY OF FINDINGS AND CONCLUSIONS


This report is based on the follow-up audit we conducted to determine
whether the Administration For Children's Services (ACS)  had
implemented eleven recommendations made to the Human Resources
Administration's Child Welfare Agency (CWA) in our previous audit (7A
92-08) issued August 18, 1994.  In the previous audit, we reviewed the
accuracy of the address file maintained by the CWA and its compliance
with New York State Department of Social Services (SDSS) reimbursement
claiming guidelines.  In this report, we discuss each recommendation in
detail, as well as the current status of each recommendation.

During our previous audit, we found that a significant number of name
and address records in the Child Care Review Service (CCRS) data base
reflected inaccurate information.  In addition, we found that SDSS
deferred $101,354,930 in claims by New York City for Federal
non-participation expenses between July 1991 and December 1992.  The
SDSS did not reimburse the City's $50,677,465 share to HRA when the
claims were first submitted because certain information (i.e., the
client  identification number, date of payment, check number, and
period for which reimbursement was being sought) was not included in
the back-up documentation required by the SDSS.


We found that ACS has implemented five out of the eleven
recommendations made in our previous report, is in the process of
implementing 5 recommendations, and did not implement one
recommendation.

ACS has implemented the following recommendations:

eliminated the use of the generic facility address (ACS' headquarters
at 80 Lafayette Street) as the facility location address of 2,574
children;

minimized the use of the generic facility address and developed a
procedure ensuring that home approvals and recertifications are
performed within the time frames specified by 18 NYCRR Part 444, and 86
ADM-33;

initiated a clean-up at the Preventive Services Unit, thereby
eliminating the backlog of case folders; 
 
reviewed the workflow in the Preventive Services Unit and the Division
of Auxiliary Services, and expedited the creation of case folders as well
as the input of the child's information into the Welfare Management System
database; and resubmitted disapproved claims for $4.36 million which it received in
reimbursement from the State. 
 
ACS, along with SDSS, is in the process of implementing the following 5
recommendations: 
 
ACS has begun a campaign to reconcile CCRS data base records to ACS'
automated payment systems in preparation for the implementation of a new
Statewide Services Payment System. 
   
ACS will participate in a SDSS sponsored project called CONNECTIONS that
will consolidate and link a number of foster care computer systems. 
	 
The State is in the process of purchasing and installing 10,000
personal computers, of which ACS will receive 4,734, that will, within two
years, provide immediate inquiry access to the State and ACS' systems.  
 
The State has included in its computer purchases some laptop computers
to be made available to ACS case workers in the field. 
	 
The State has completed the development of a centralized payment
processing system known as the Statewide Services Payment System (SSPS),
and ACS will start parallel testing in July 1996. 
 
To address the previous recommendation that has not yet been implemented,
and to prepare for the new demands of working with the integrated child
welfare system-- CONNECTIONS--we urge ACS to implement the seven
recommendations made at the end of this follow-up report.