Health and Human Services
An Audit Report on The Department of Protective and Regulatory Services' Administration of Foster Care Contracts
August 2000
Report Number 00-040
Overall Conclusion
The Department of Protective and Regulatory Services (Department) has not provided sufficient oversight of residential foster care contractors, but it is now working to strengthen its supervision of contractors. The Department has appropriately focused its resources on investigations, foster care placements, and case management of at-risk children. However, serious gaps in the oversight of foster care contractors could undermine the Department's efforts to ensure (1) the safety of the children in its care, and (2) that contractors provide the expected services and comply with contract requirements. Currently, a daily average of 7,000 children receive foster care through 273 residential care contracts. These contracts totaled $154 million in fiscal year 1999. We found that contract administration of purchase of services contracts was more effective than it was for residential contracts.
Key Facts and Findings
- The Department needs to strengthen its procedures for overseeing its residential foster care contracts. Consideration of more relevant information in the risk assessment process, completion of the annual monitoring plan, and improvement of training and technical assistance for Residential Contract Managers would improve contract oversight.
- The Department has begun to address a material weakness in monitoring and
other contract administration weaknesses identified by the State Auditor's
Office. However, the Contract Administration Division, created to improve
the Department's administration of contracts, has not corrected all prior
weaknesses.
- It is too soon to tell if the pilot foster care system created by Permanency Achieved through Coordinated Efforts will be more effective than the current one. The goal is to improve foster care outcomes for foster children without costing the State more money. Improved outcomes include shorter lengths of stay in foster care and stability of foster care placements.
- Currently in Texas, a daily average of 12,000 children are in foster care. Around 7,000 of these children are placed in foster care through residential care contracts. (These contracts are with child-placing agencies, residential treatment centers, emergency shelters, and independent foster homes, among others.) The other 5,000 children are placed in foster homes that contract directly with the Department.
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