Title IV-B and Title IV-E of the Social Security Act: Data Collection for Foster Care and Adoption

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

45 CFR Part 1355

RIN 0979-AB58

Title IV-B and Title IV-E of the Social Security Act: Data

Collection for Foster Care and Adoption

AGENCY: Administration on Children, Youth and Families (ACYF)

Administration for Children and Families (ACF), HHS.

ACTION: Final rule.

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SUMMARY: The Administration on Children, Youth and Families is adding a

financial data element to the Appendices of the regulation for data

collection for foster care and adoption. In addition, we are adding the

Office of Management and Budget's (OMB) control number for the data

collection section of the regulation. All States that administer State

plans under title IV-B and IV-E of the Social Security Act are subject

to this addition to the Appendices of the regulation.

EFFECTIVE DATE: August 9, 1995.

FOR FURTHER INFORMATION CONTACT:

Daniel H. Lewis, Deputy Associate Commissioner, Children's Bureau,

Administration on Children, Youth and Families, (202) 205-8618.

SUPPLEMENTARY INFORMATION:

I. Background

The Administration on Children, Youth and Families published a

final rule on December 22, 1993 (58 FR 67912) that implements the

requirements of section 479 of the Social Security Act. This section

requires the Secretary to publish regulations that implement a system

for the collection of adoption and foster care data in the United

States. All States that administer State plans under titles IV-B and

IV-E of the Society Security Act are subject to this regulation.

II. General

This regulation, 45 CFR part 1355, generally known as the Adoption

and Foster Care Analysis and Reporting System (AFCARS), is designed to

collect uniform, reliable information on children who are under the

responsibility of the State title IV-B/IV-E agency for placement and

care. The collection of adoption and foster care data is mandated by

section 479 of the Social Security Act. In order to adequately meet the

intent of the law and the requirements of this regulation, the States'

data collection systems for AFCARS must be computerized.

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The Department of Health and Human Services (DHHS) will use this

information to respond to Congressional requests for current data on

children in foster care or who have been adopted, and to respond to

questions and requests from other Departments and agencies, including

the General Accounting Office, the Office of Management and Budget

(OMB), the DHHS Office of Inspector General, national advocacy

organizations, States and other interested organizations.

III. Program Description

Title IV-B, Subpart 1, of the Social Security Act (the Act), the

Child Welfare Services program, is a formula grant program. Each State

receives grants during the year representing its allotment. The grants

provide States with Federal support for a wide variety of State child

welfare services including: Preplacement preventive services to

strengthen families and avoid placement of children; services to

prevent abuse and neglect; foster care and adoption services; and

certain protections for children in foster care. Title IV-B, Subpart 2,

Family Preservation and Support Services, is an entitlement program

which encourages and enables each State to develop and establish or

expand, and to operate a program of family preservation services and

community based family support services. Funds under both subparts of

title IV-B can be used to provide services regardless of the income of

the families and children who are in need of such services.

Title IV-E of the Act is an entitlement program which authorizes

Federal financial participation (FFP) in the costs of State foster care

maintenance and adoption assistance payments. Federal matching of State

foster care maintenance payments is available for children in foster

care who meet certain eligibility criteria that are based, in part, on

the child's eligibility under the Aid to Families With Dependent

Children (AFDC) program. The adotpion assistance program under title

IV-E is designed to assist States in placing ``special needs'' children

with adoptive families through the provision of an adoption assistance

payment. In order to be eligible for this program, a child must be

eligible for AFDC, title IV-E foster care or Supplemental Security

Income for the Blind and Disabled (SSI) and must meet the statutory

definition of ``a child with special needs'' according to section

473(c) of the Act. Title IV-E of the Act is the major single source of

Federal support for foster care and adoption assistance payments.

However, over half the funds for adoption and foster care and half the

children are supported by State and local governments and private

sector.

According to State agency information gathered by the American

Public Welfare Association (APWA) under the Voluntary Cooperative

Information System (VICS), there were approximately 444,000 children in

foster care on the last day of 1993.

In 1990, the most recent year for which data have been analyzed,

approximately 407,000 children were in foster care. Of these children,

approximately 69,000 had a plan for adoption and approximately 20,000

had parental rights terminated or relinquished and were waiting for

adoptive homes.

IV. Legislation Establishing New Data Collection Requirements

Section 9943 of the Omnibus Budget Reconciliation Act (OBRA) of

1986 (Pub. L. 99-509) amended title IV-E of the Social Security Act by

adding section 479. This section directs the Secretary to promulgate

regulations for the implementation of a system to collect data relating

to adoption and foster care in the United States. On December 22, 1993,

the Department published the AFCARS final rule which requires that

State agencies administering or supervising the administration of

titles IV-B and IV-E of the Act implement data collection systems and

report semi-annually on data elements set forth in the final rule.

Page 67917 of the preamble to the AFCARS final rule, announced the

Department's intention to add a foster care financial data element to

the appendices of the AFCARS regulation. This data element will

indicate the total monthly amount of foster care benefit paid on behalf

of each child in foster care. At that time the Department urged

interested parties to comment on this intention so that expressed

concerns and comments could be taken into account in the development of

the data element. Two letters (both from State agencies) were received

in response to the final rule's request for comments on this matter.

States should begin submitting the monthly foster care payment

information with their submittal for the fourth AFCARS reporting

period, April 1, 1996-September 30, 1996.

V. Discussion of Comments and the Development's Response Part 1355--

General

Section 1355.40 Foster care and adoption data collection. The

letters from the State agencies related primarily to the usefulness of

the financial information and how States are to report it.

Comment: One comment was that the request for such information

appears duplicative in light of the information submitted by the States

in accordance with the ACYF-PI-92-11, issued on August 21, 1992.

Response: Although the data is similar, the Program Instruction

requires States submittal of quarterly financial data with a submitted

monthly average number of children for the quarter. The AFCARS

financial data element will, for the first time, allow for the analysis

of a payment per child in foster care, unlike the current average

dollars per child based on an average monthly number of children. The

result is the opportunity to develop demographic profiles of children

and the specific payments each receives. This information can result in

more comprehensive cost projections for children meeting particular

demographic profiles during their foster care episodes.

Comment: Given that AFCARS' reporting frequency is semi-annual, how

would monthly amounts be reflected?

Response: Monthly amounts would be reflected in the most recent

full monthly payment made on behalf of the child during the report

period.

Comment: Why is this information necessary on a per child basis,

since the information can be calculated using the Federal Medical

Assistance Percentage (FMAP) rate?

Response: The information is being requested on title IV-E and non

IV-E children; therefore the FMAP is not always applicable. The

information on a per child basis can be useful in a number of ways,

such as:

Examining costs per placement setting type; and

Examining costs per child based on a child's demographic

profile, more specifically, number of disabilities versus costs, age

vs. costs, etc.

The understanding of costs as identified above are necessary for

accurate cost projections.

Comment: Did you intend that this question would include the

administrative and training dollars expended?

Response: No, only the maintenance dollars.

Comment: Is the data necessary for non-title IV-E children?

Response: Yes, all children as defined by the AFCARS reporting

population.

Comment: For which classes of title IV-E children will the

information be required?

Response: The information is required for all children in foster

care (title IV-

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E and non IV-E) which meet the AFCARS reporting population definition.

Purpose of the Amendment to Sec. 1355.40

Page 67924 of the preamble of the AFCARS final rule in the

``Paperwork Reduction Act'' section, identifies the need for and

approval of a control number by OMB. Paragraphs (a) and (b) of 45 CFR

1355.40 of the regulation, contain information collection requirements

for which an OMB approval number is required. In addition, OMB requires

the approval number to be displayed in the regulation. OMB approved and

assigned a number to the information collection requirements in

Sec. 1355.40 on August 22, 1994. This amendment adds that number at the

end of the section.

VI. Impact Analysis

Executive Order 12866

Executive Order 12866 requires that regulations be reviewed to

ensure that they are consistent with the priorities and principles set

forth in the Executive Order. The Department has determined that this

rule which adds a financial data element to the appendices and

additionally publishes the required OMB control number is consistent

with these priorities and principles. As assessment of the costs and

benefits of available regulatory alternatives (including not

regulating) demonstrated that the approach taken in the regulation is

the most cost-effective and least burdensome while still achieving the

regulatory objectives.

Regulatory Flexibility Act

Consistent with the Regulatory Flexibility Act of 1980 (5 U.S.C. ch

6), the Department tries to anticipate and reduce the impact of rules

and paperwork requirements on small businesses. For each rule, with a

``significant economic impact on a substantial number of small

entities'' an analysis is prepared describing the rule's impact on

small entities. Small entities are defined in the Regulatory

Flexibility Act to include small businesses, small non-profit

organizations, and small governmental entities.

The primary impact of this rule is on the States which are not

``small entities'' within the meaning of the Act. For this reason, the

Secretary certifies that this rule will not have a significant impact

on a substantial number of small entities.

Paperwork Reduction Act

Under the Paperwork Act of 1980, Pub. L. 96-511, all Departments

are required to submit to the Office of Management and Budget (OMB) for

review and approval any reporting or recordkeeping requirements in a

proposed or final rule. The addition of a financial data element in

several of the Appendices and the OMB control number will not make an

appreciable change in the burden to the States. Therefore no submission

to OMB is required.

List of Subjects in 45 CFR CFR Part 1355

Adoption and foster care, Child welfare, Data collection,

Definitions, Grant Programs--Social Programs.

(Catalog of Federal Domestic Assistance Program Nos. 93.658, Foster

Care Maintenance, 93.659, Adoption Assistance and 93.645, Child

Welfare Services-State Grants)

Dated: July 18, 1995.

Mary Jo Bane,

Assistant Secretary for Children and Families.

For the reasons set forth in the preamble, 45 CFR part 1355 is

amended as follows:

1. The authority citation for part 1355 continues to read as

follows:

Authority: 42 U.S.C. 1302.

2. Section 1355.40 is amended by adding the OMB Control Number at

the end of the section to read as follows:

Sec. 1355.40 Foster care and adoption data collection.

* * * * *

(Information collection requirements contained in paragraphs (a) and

(b) of this section were approved on August 22, 1994, by the Office

of Management and Budget under Control Number 0980-0267).

Appendix A--[Amended]

3. Appendix A to Part 1355, Sections I and II are amended by adding

elements XII to each section to read as follows:

Section I--Foster Care Data Elements

* * * * *

XIII. Amount of the monthly foster care payment (regardless of

sources). ________________.

* * * * *

Section II--Definition of and Instructions for Foster Care Data

Elements

* * * * *

XII. Amount of the monthly foster care payment (regardless of

sources)--Enter the monthly payment paid on behalf of the child

regardless of source (i.e., Federal, State, county, municipality,

tribal, and private payments). If title IV-E is paid on behalf of

the child the amount indicated should be the total computable

amount. If the payment made on behalf of the child is not the same

each month, indicate the amount of the last full monthly payment

made during the reporting period. If no monthly payment has been

made during the period, enter all zeros.

Appendix C--[Amended]

4. In Appendix C to part 1355, under Section number 4., paragraph

(3) is revised to read as follows:

4. Personal Computer to Personal Computer * * *

(3) All records must be a fixed length. The Foster Care Detailed

Data Elements Record is 150 characters long and the Adoption

Detailed Data Elements Record is 72 characters long. The Foster Care

Summary Data Elements Record and the Adoption Summary Data Elements

Record are each 172 characters long.

* * * * *

Appendix D--[Amended]

5. In Appendix D to part 1355, Section A, Foster Care, subsection

1., is amended by revising paragraph a. and adding to paragraph c. the

following elements at the end of the table and revising the number of

``Total Characters'' to read as follows:

1. Foster Care Semi-Annual Detailed Data Elements Record

a. The record will consist of 66 data elements.

* * * * *

c. * * *

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No. of

Element No. Appendix A data Data element description numeric

element characters

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* * * * * *

*

66...................................... XII Amount of monthly foster care payment 5

(regardless of source).

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Total characters.................. ................ ....................................... 150

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* * * * *

Appendix E--[Amended]

6. In Appendix E to part 1355, in Section A., subsection 3.,

paragraph b.(2) is amended by adding the following elements to the end

of the table to read as follows:

3. Missing Data Standards

* * * * *

b. * * *

(2) Less Than Ten Percent Missing Data * * *

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Element No. Element description

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* * * * *

66............................... Amount of monthly foster care payment

(regardless of source).

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* * * * *

[FR Doc. 95-19679 Filed 8-8-95; 8:45 am]

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