Maintenance Payments to For-Profit Child Care Providers Under the Title IV-E Foster Care Program in Illinois

This final report points out that the Illinois Department of Children and Family Services' (DCFS) claims processing system was not effective in excluding payments to for-profit child care providers ineligible for Federal financial participation (FFP). Section 472 of the Social Security Act requires that foster care payments be made on behalf of eligible children to nonprofit child placement agencies and child care institutions. During the period July 1992 through March 1999, DCFS improperly claimed $11,275,518 (Federal share) for child care payments to for-profit child placement agencies and institutions. We are recommending that the Administration for Children and Families work with the State DCFS to resolve these improperly claimed payments and that DCFS implement controls to preclude the claiming of FFP for foster care payments made to for-profit child care providers.