Review of Certain Aspects of Group Home Care for Children in California. Report to the Honorable George Miller, House of Representatives.

Federal assistance for residential care for children in California was reviewed to determine: (1) which sources of federal funds sustain children placed in group homes; (2) whether services paid for with federal funds were provided; (3) whether rates paid to group homes were unallowable or unreasonable; (4) whether conditions at the group homes were safe and sanitary; and (5) whether the potential existed for duplicate billings for services provided by other federal programs. Residential care encompasses the foster care program and includes children placed in foster family homes, small family homes, and group homes. Data were gathered through reviews of records and interviews with knowledgeable officials at the federal, state, and county levels, as well as individuals operating 18 group homes that were reviewed in detail. Additionally, to observe typical living conditions, tours were made of another 48 group homes. Findings indicated that Title IV-E of the Social Security Act was the primary source of federal funds to support group homes. Amounts paid to group homes for each child varied widely, but costs incurred by the homes were allowable under federal and state guidelines. Group homes visited met state safety standards. No evidence was found that the 18 homes reviewed in detail had engaged in duplicate billing of other federal programs. (RH)