AUGUSTA – The Department of Human Services inappropriately billed the federal government for children in state care, a spokesman said Thursday.

In the wake of an audit last May, the federal government will disallow $177,000 in claims because DHS incorrectly assessed the financial eligibility of biological parents, was overdue both in relicensing foster homes and in fire safety inspections of foster homes, inadvertently asked for a reimbursement for a child over 18, and filed a claim for a child whose case involved an inappropriate court order, according to DHS spokesman David Winslow.

Some perspective is needed, he said Thursday.

“It’s a large amount of money, and we take it seriously, but in fact it’s a small portion of the amount we get,” he said, noting that the federal government reimbursed the department $34 million last year.

The largest portion of the disallowed funds came from incorrectly assessing the income of foster children’s biological parents, according to Winslow.

The state can bill the federal government only after ascertaining that the parents are low-income, but “that’s a difficult thing to do,” he said.

Meanwhile, the state’s 1,550 foster parents were drawn into the problem when Karen Westburg, director of the Bureau of Child and Family Services, asked them to do their part in helping the state maintain its funding.

“We can no longer afford to have license renewals drift beyond the license expiration date,” she said in a letter dated June 1.

“The Bureau acknowledges that relicensing homes hasn’t been done in a timely fashion and has now made the renewal of foster home licenses a priority for licensing staff.

“However there also are parts of the renewal process for which foster parents are responsible; having to submit required documents, returning water tests in a timely manner and completing the required training before their license lapses.”

In the letter, which included an outline of foster parents’ obligations, Westburg said that effective Aug. 1 applications deemed incomplete could be “a basis for license denial as well as a reduction in board rate for any children placed in the foster home.”

The purpose of the letter wasn’t to blame or threaten anyone, according to Winslow.

“The problem was mostly at the state level, so we’re not trying to deny that,” he said.

“But we needed to express the seriousness of the situation and tell [foster parents] that we were going to be more diligent in the timeliness of relicensing and what they could do to help us.

“For a lot of reasons over a period of time we were more flexible [regarding] timeliness requirements and it’s obvious from the federal report that we can’t do that anymore,” Winslow said.

Although foster parents initially had questions about the more vigorous relicensing process, “they have been able to work through this,” he said.

A foster mother of three, Sherrie Daigle of Lee read the letter with mixed feelings.

“There are a lot of things that are out of our control in getting relicensed,” said Daigle, who was five months late getting relicensed last year because of delays from the State Fire Marshal’s Office in inspecting her premises.

Westburg stipulated in her letter that foster parents wouldn’t be held responsible for circumstances beyond their control such as a fire inspection that hadn’t occurred.

But foster parents could be more diligent about some things, Daigle insisted.

“Some people don’t get their training in on time. As a license holder, it’s our job to do that,” she said.

Barbara Ford of Winterport said foster parents’ obligations now are clearer.

“This is a good thing,” said the foster mother of three. “Now I know what’s expect of me and what I can expect from [DHS]. Now we’re all on the same page.”

The renewal licenses have become longer and more involved because they’re the same for foster care and adoption, based on the federal Adoptive and Safe Families Act, according to Bette Hoxie, director of Adoptive and Foster Families of Maine.

“The big thing is that neither foster parents nor DHS have felt any pressure to get this done expeditiously, there was no sense of urgency because there was no immediate attention from the licensing manager,” she said.

That should change, according to Winslow, who said the department is taking steps to avoid any more federal funding problems.

Foster licenses now cover two years instead of one, enabling DHS “to focus on facilities that need additional assistance,” Winslow said.

Three fire marshals have been hired by the state and 23 new staff members will be added to the Bureau of Child and Family Services, although not specifically for relicensing.

Also, DHS is catching up on its inspections. Fewer than 100 foster homes are awaiting license renewals, according to Winslow, who said they would be completed by Sept. 1.

It’s in everyone’s best interest to be up to date, according to Hoxie, who said without a current license, foster parents wouldn’t be eligible for liability insurance or reimbursements for children who require specialized care.

But what’s really at stake is the security of knowing that foster homes are good places for children, Hoxie said.

“Licensing rules may seem like an imposition, but nobody in the world wants a child placed in a facility [they] didn’t think was safe and adequate,” she said.