An Audit Report on the Maternal and Child Health Block Grant at the Texas Department of Health Page: 1 of 3
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Two Commodore Plaza
tate 206 East Ninth Street, Suite 1900
Austin, Texas 78701
A u ditor S Phone: (512) 479-4700
Fax: (512) 479-4884
O ffic An Audit Report on the Maternal
and Child Health Block Grant at
Lawrence F. Alwin, CPA the Texas Department of Health
January 25, 1999
Members of the Legislative Audit Committee:
Although the Texas Department of Health (Department) has made improvements in its
management of the Maternal and Child Health Block Grant (MCH Block Grant) at the Texas
Department of Health, concerns exist in several areas. The audit identified problems with the
cash management policy which does not maximize federal dollars to reduce expenditures of state
appropriated funds. Other areas of concern relate to monitoring contractors, measuring
performance, and managing human resources. The audit results also indicate that health and
human service agencies have improved interagency communication and collaboration in an
effort to reduce duplication and identify gaps in services.
The federal funding received through the MCH Block Grant is a significant source of funding for
the Maternal and Child Health Services and the Special Needs Children strategies at the
Department. The Department has projected that it will serve 52,000 infants and children and
46,000 women through the Maternal and Child Health programs. The amount appropriated for
both strategies for fiscal 1998 totals approximately $88 million, which includes approximately
$30 million of federal funding received through the MCH Block Grant.
A brief summary of audit issues is presented below:
Maximize Federal Funding - The Department's cash management policies and procedures did not
maximize the use of federal funds to reduce expenditures of state appropriated funds as required
by a rider in the General Appropriations Act (75th Legislature), Article 9, Section 106, Federal
Funds/Block Grants, 1(c). In fiscal year 1997, the Department reclassified $9 million of
expenditures from federal to state in order to spend all appropriated state funding and carry
forward MCH Block Grant federal funding. The federal funds were spent the following year.
Although the transfers were not in strict compliance with the rider, the Department's actions
fully utilized all funding sources to maintain the level of services.
Contract Administration - The Department has significantly improved its contract administration
but has not consistently carried out policies and procedures for monitoring contractors. The
improvements include enhancing the contractor selection process, strengthening contract
agreements with service providers, developing a policy manual for service providers, developing
a training video on contractors' responsibilities, and developing policies and procedures for
monitoring contractors.
SAO Report No. 99-023P.O. Box 12067 Austin, Texas 78711-2067 E-mail: auditor@sao.state.tx.us Internet: www.sao.state.tx.us
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Texas. Office of the State Auditor. An Audit Report on the Maternal and Child Health Block Grant at the Texas Department of Health, report, January 1999; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth518175/m1/1/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.