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Administration for Children and Families US Department of Health and Human Services

FY 2001 Audited Financial Statements

A MESSAGE FROM THE ASSISTANT SECRETARY
FOR CHILDREN AND FAMILIES

February 5, 2002

I am pleased to present the Administration for Children and Families’ Audited Financial Statements for Fiscal Year 2001. As the federal government’s lead social services agency for children, families, refugees and developmentally disabled individuals, with responsibility for programs that affect the lives of millions of Americans, we in ACF can be proud of our results. I would like to thank the staff of ACF, who dedicate so much time and energy to making sure that we perform both the internal and external management aspects of the agency in a highly professional manner, and who care so much about the people we serve.

Our record for 2001 points to many accomplishments as well as some challenges ahead.

We continued to be successful in reforming the welfare system and helping people become economically self-sufficient. In September, 2001 we announced that the number of families nationally receiving assistance under the Temporary Assistance for Needy Families (TANF) program declined 3 percent from about 2.2 million to about 2.1 million in the previous six months. During the same period, the number of individual TANF recipients declined 4.4 percent from more than 5.7 million to fewer than 5.4 million. Overall there has been a 56 percent decline in the number of people enrolled in TANF since Congress enacted welfare reform in August 1996 - an unprecedented decline in dependency representing nearly 7 million fewer recipients. These are encouraging numbers, and we will continue to work hard with our partners to make sure that such declines continue.

The number of children adopted from public welfare agencies into loving and permanent homes also increased in the last year. Nearly 50,000 children were adopted, approximately a 10 percent increase over the 46,000 adoptions in the previous year. The latest numbers represent a 78 percent increase since fiscal year 1996, when only 28,000 adoptions were finalized. This is one of our most gratifying accomplishments, since no child should ever be denied the benefits of a stable family life. We hope to see further improvements in this area as ACF begins to administer grants under the new Infant Adoption Awareness program.

The Administration for Children and Families and the people we serve were deeply affected by the terrorist attacks of September 11. In solidarity with all Americans, ACF’s employees reacted valiantly and patriotically, working with states and local governments to assure that services continued in the face of this unprecedented disaster. They also demonstrated a particularly American kind of valor by pitching in to help in whatever way they could, donating blood, money, or time. At this moment we all feel a heightened awareness of our shared humanity; the work we do in ACF bears witness to that.

On September 28, in the wake of the attacks, the Secretary released $23.7 million in social services grants to ACF. These grants will provide six states and the District of Columbia flexible funds to be used to address the needs of special populations affected by the attacks, including children, families and people with disabilities. The money can be used for such things as emergency-related food and shelter; assistance to people with developmental disabilities whose support networks have been disrupted; special child welfare services necessitated by the disaster; and child care. We feel honored to be able to help those who need it most at this time of crisis.

Against the backdrop of these accomplishments and sobered by the events of September 11, we look forward to some exciting challenges in the next year. Foremost among these is the reauthorization of the welfare reform program. We have been holding a series of "listening sessions" around the country to gather insights on the program from those on the front lines. Their insights will be important tools in the welfare reauthorization process.

In everything we do we will stress how important it is for children to grow up in strong families, nurtured by supportive communities. We will continue to explore the potential of faith-based organizations to help the people ACF serves. We will redouble our efforts to support the positive development of older children so that they mature into responsible adulthood. And always we will keep in mind the charge that we as an agency have been given—to assure that our programs help people achieve their potential for independence and productivity.

/s/

Wade F. Horn, Ph.D