Finding Text
2025-011 IMPROPER PAYMENTS TO ADOPTIVE PARENTS– REPEATED & MODIFIED Funding agency: U.S. Department of Health and Human Services Title and ALN Number: 93.659 Title IV-E Adoptions Type of Finding: Significant Deficiency, Other Non-compliance Compliance Area: Allowable Cost and Cost Principles, Eligibility Award Year: Title IV-E Adoptions 23 Assistance (7/1/2022 – 12/31/2023) Title IV-E Adoptions 24 Assistance (1/1/2024 – 9/30/2024) Question Costs: $205 (less than 5% of federal expenditures) Condition The Department made improper payments to adoptive parents as follows: Adoptions Subsidy Payments Testing • One (1) where payments were made on behalf of a child over 18 years old without extended subsidy agreements in place, resulting in total of $205 in payments that were improper. Update for FY25: The Department has made significant progress in this area, by reducing the instances of non-compliance in this area. Criteria 2 CFR § 200.1. An improper payment is a payment that should not have been made or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. The term improper payment includes: any payment to an ineligible recipient; any payment for an ineligible good or service; any duplicate payment; any payment for a good or service not received, except for those payments where authorized by law; any payment that is not authorized by law; and any payment that does not account for credit for applicable discounts. 42 U.S. Code § 673 (a)(3) and (a)(4). The amount of the payments to be made shall be determined through agreement between the adoptive parents and the State or local agency administering the program. In no case may the amount of the adoption assistance payment made exceed the foster care maintenance payment which would have been paid during the period if the child with respect to whom the adoption assistance payment is made had been in a foster family home. A payment may not be made pursuant to this section to parents or relative guardians with respect to a child (i)who has attained— (I) 18 years of age, or such greater age as the State may elect under section 675(8)(B)(iii) of this title; or (II) 21 years of age, if the State determines that the child has a mental or physical handicap which warrants the continuation of assistance; (ii) who has not attained 18 years of age, if the State determines that the parents or relative guardians, as the case may be, are no longer legally responsible for the support of the child; (iii) if the State determines that the child is no longer receiving any support from the parents or relative guardians, as the case may be. Effect This oversight in handling subsidy payments increases the risk of non-compliance with federal grant requirements and may expose the Department to potential financial liability or the need to recover funds. It also highlights a weakness in the internal controls surrounding the administration of adoption subsidies. Cause The adoption cases were scheduled for consideration by Fostering Connections for eligibility for extended subsidies. However, a disconnect in cooperation between the adoptive parents and the Title IV-E team resulted in delays in finalizing the extended subsidy agreements.