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7.4 TITLE IV-B, Use of Funds

Items with a star (*) and gray background have been modified from previous record.

Question Number 2:
02/22/2007 - Current
QuestionIs foster parent insurance allowable as an administrative cost under title IV-B?
Answer*This cost may be claimed under title IV-B, but is included in the limitation on maintenance expenditures described in section 424(c)of the Act because "liability insurance" is not considered to be a service and is primarily related to foster care maintenance. However, States may select Insurance protection for foster parents as an activity to be funded under the Social Services Block Grant (amended title XX). The State chooses the title of the Social Security Act under which it will claim Federal financial participation (FFP) in the costs of insurance.

Some States include payment for insurance coverage in the monthly foster care payment to foster parents; others provide the protection through a group insurance policy or through the State's self-insuring procedures. Using self-insurance, the State may be able to provide broad coverage at low cost.

Source/DateACYF-CB-PIQ-82-04 (1/29/82)
Legal and Related References*: Social Security Act - sections 424(a) and (c), 475 (4)

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10/01/2000 - 02/22/2007 (Original Record)
QuestionIs foster parent insurance allowable as an administrative cost under title IV-B?
AnswerThis cost may be claimed under title IV-B, but is included in the limitation on maintenance expenditures described in section 423 (c)(1) of the Act because "liability insurance" is not considered to be a service and is primarily related to foster care maintenance. However, States may select Insurance protection for foster parents as an activity to be funded under the Social Services Block Grant (amended title XX). The State chooses the title of the Social Security Act under which it will claim Federal financial participation (FFP) in the costs of insurance.

Some States include payment for insurance coverage in the monthly foster care payment to foster parents; others provide the protection through a group insurance policy or through the State''s self-insuring procedures. Using self-insurance, the State may be able to provide broad coverage at low cost.

Source/DateACYF-CB-PIQ-82-04 (1/29/82)
Legal and Related ReferencesSocial Security Act - sections 423 (a) and (c), 475 (4)

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