ACF, CMS, and FNS review these submissions and make funding decisions on the basis of their review, which they are generally required to complete within 60 days. Because the federal response to a state request may be to ask for additional information, a thorough assessment of the state’s concerns about timeliness requires reliable data that track a request from the time the federal agency first receives it until the agency finally approves or disapproves it. However, this information is not readily available because (1) the system used by ACF and CMS headquarters to manage the approval process does not track the life cycle of a request and (2) FNS and CMS regional offices do not have a central tracking system (although some of these regional offices used automated spreadsheets to track the status of state requests). Agency Responses to State Cost Allocation Plans for IT Projects Are Sometimes Inconsistent

While federal officials from the departments of Agriculture and HHS stated that they ensure the consistency of cost allocation requirements for IT projects by coordinating their reviews, we identified instances of inconsistent federal actions. These plans are used to identify, measure, and allocate expected project costs between the state and the federal program(s). OMB Circular A-87 provides the states wide latitude in developing a cost allocation plan. State cost allocation plans for systems development and acquisition projects must be approved by each federal agency expected to provide funding. In summary, Mr. Chairman, the federal approval and funding process in which states are required to submit various planning and acquisition documents for federal agency approval is largely governed by regulation. The Administration for Children and Families (ACF) provides funding to states and local governments to run this program. Appendix II: Scope and Methodology

To determine the statutory and regulatory requirements for federal approval and funding of state information technology (IT) development and acquisition projects for the Child Support Enforcement, Child Welfare, Medicaid, and Food Stamps programs, we reviewed applicable provisions of the U.S. Code and Code of Federal Regulations.
Why GAO Did This Study

This testimony discusses federal agency processes for approval of state information technology (IT) projects supporting state-administered federal human services programs.

What GAO Found

Federal approval and funding processes for state IT development and acquisition projects for the Child Support Enforcement, Child Welfare, and Food Stamps programs require the establishment of federal funding participation rates, the documentation that states must submit, and the time frames in which the federal agency must respond to the request. Assessment of the federal approval and funding process requires complete and reliable data that track a request from agency receipt until the agency finally approves or disapproves the request. However, such information is not readily available and the process cannot be thoroughly assessed because (1) the system used by the Administration for Children and Families (ACF) and The Centers for Medicare and Medicaid Services (CMS) headquarters to manage the approval process does not track the life cycle of a request and (2) the Department of Agriculture's Food and Nutrition Services (FNS) and CMS regional offices do not have a central tracking system. However, in a vast majority of cases, agencies responded to states' IT planning and acquisition requests within 60 days, as required by regulation. State cost allocation plans--which are used to identify, measure, and allocate expected project costs among the state and the federal programs--for systems development and acquisition projects must be approved by each federal agency expected to provide funding. To ensure that they provide a consistent response to state requests that include cost allocation plans, ACF, CMS, and FNS officials stated that they coordinate their reviews of multiprogram requests. These reviews are based on the requirements in OMB Circular A-87, which provides the states wide latitude in developing cost allocation plans for IT development and acquisition projects.