Finding 571396 (2024-002)

Criteria or specific requirement: 12 CCR 2509-7.601.71 provides eligibility requirement for the State of Colorado’s Foster Care IV-E program includes the requirement that for an individual to be considered Foster Care IV-E eligible, they must have been removed from a home where they were living with a parent, or a specified relative, either during the month court proceedings occurred or sometime within the six months preceding the month in which court proceedings took place. Condition: During our testing of 40 Foster Care IV-E benefit transactions, we noted one sample out of forty total samples where the individual receiving payment under Foster Care IV-E was not eligible as the individual did not meet the eligibility requirement of living with a parent or specified relative during the required timeframe. This individual received nine total payments during 2024 totaling $236,528. Questioned costs: $236,528. Context: The County is responsible for determining eligibility of individuals under the Foster Care IV-E program and then recording the beneficiary payment correctly within the Colorado Trails Welfare System (Trails). The Colorado Department of Human Services reimburses the County for foster care related costs through the Colorado Financial Management System (CFMS) based on the information entered into Trails. Noted that the County properly recorded these payments as ineligible for Foster Care IV-E based on the coding entered into Trails, however the Colorado Department of Human Resources improperly reimbursed the County using Foster Care IV-E funds for the ineligible individual. Cause: The Colorado Department of Human Services reimbursed the County using Foster Care IV-E funds for an individual that was not eligible under the program based on a translation issue between the Trails system and the Colorado Financial Management System (CFMS), both of which are managed by the Colorado Department of Human Services. Effect: Payment was reimbursed using Foster Care IV-E funds to an individual who was not eligible under the program. Repeat Finding: No. Recommendation: We recommend the County collaborate with the Colorado Department of Human Services to ensure that reimbursements under Foster Care IV-E only occur for individuals that are eligible under the Foster Care IV-E Program. Views of responsible officials: There is no disagreement with the audit finding.