The Division of Children, Youth and Families is the state administered child welfare services agency responsible for developing the Child and Family Services Plan and administering the title IV-B programs under the plan. The Division provides child protective services; services within the Promoting Safe and Stable Families program; family support, preservation, and reunification services; family foster care and kinship care services; services to promote the safety, permanence, and well-being of children with foster and adoptive families; adoption promotion and support services; and health care services for children in out-of-home care.

The best setting for abused or neglected children who are removed from their homes is a family-based setting, such as with a relative or in licensed foster care. Because it is not family-based, congregate care, such as emergency shelters, group homes, and residential treatment centers, is the least preferred placement option. However, the number of Arizona children and the length of time they are in congregate care has increased and as a result, the costs for this placement type nearly doubled between fiscal years 2009 and 2013. Contributing to the increase in congregate care use is an inadequate supply of foster care homes; various state practices, including some related to permanency goals and activities; and inadequate access to behavioral health services. Although the Arizona Department of Child Safety has taken some steps to reduce the use of congregate care, it should consider other states’ experiences to identify multiple strategies for reducing its use.

This report addresses (1) expenditures for the recruitment, retention, training, licensing, and tracking of homes maintained by foster parents; (2) an assessment of whether the Department’s contract process of home recruitment, study, and supervision is the most appropriate means to provide these services; and (3) best performance measures to evaluate the effectiveness of these services. Although contracting appears to be an appropriate method for obtaining foster home recruitment-related services, the Department should improve how it contracts for these services.

In fiscal year 2012, Scottsdale Unified School District’s student achievement was similar to peer districts’, on average, but it compared less favorably in operational efficiencies. The District’s food service program operated efficiently with a cost per meal that was lower than the peer district average. However, the District’s administrative costs were higher than peer districts’, primarily because it employed more administrative staff. In addition, the District inaccurately reported its costs on its Annual Financial Report and it lacked sufficient computer controls. The District’s plant operations cost per pupil was higher than peer districts’, on average, because the District maintained more square footage per student than the peer districts’ and many of its schools operated far below their designed capacities. Further, the District’s transportation cost per mile was much higher than the peer districts’ average, in part, because of inefficient bus routes.

In fiscal year 2013, the Department paid at least $14.6 million for transportation services for child protective services clients. However, the Department does not use performance measurement to manage and evaluate these services, including overseeing contracted transportation providers. The Department should develop and implement a performance measurement system to evaluate these services and ensure that this system provides the necessary data to evaluate the appropriateness and cost-effectiveness of contracting for these services. In addition, although the Department has implemented some procedures to help ensure proper payments to transportation providers for these services, additional steps would help address internal control deficiencies.