EXHIBIT 2

Case 1:07-cv-03308-TPG Document 5-3 Filed 04/25/2007 Page 1 of 9
Marc V. Shaw

Deputy Mayor for Operations

Peter Madonia

Chief of Staff to the Mayor

Susan L. Kupferman

Director, Mayor's Office of Operations

September 2004

Case 1:07-cv-03308-TPG Document 5-3 Filed 04/25/2007 Page 2 of 9
Critical Objectives

.Respond within 24 hours to every allegation of abuse and neglect and

perfonn thorough investigations of allegations.

.Increase access to quality, neighborhood-based services to prevent placement

or re-entry into foster care.

.Maximize placement of children in foster homes within their own

neighborhoods.

.Maximize placement of children in foster care with family members and

placement of children with their siblings as appropriate.

.Enhance family involvement in service planning for children in foster care.

.Provide a safe, stable foster care environment for children.

.Decrease the length of time children remain in foster care.

.Ensure availability and accessibility of child care services in communities.

Scope of Agency Operations

The Administration for Children's

Services (ACS) protects and ensures the

well-being of New York City's children

and families. ACS investigated child

abuse and neglect reports involving

approximately 79,000 children and

provided contract preventive services to

30,033 children. ACS provides direct

foster care and adoption services, as well

as contractual services for over 22,000

children through approximately 50 foster

care agencies citywide. The Agency also

administers 230 Head Start sites and

enrolls 60,555 children in child care

programs through contracted providers or

child care vouchers.

Performance Highlights

.ACS continues to improve on its ability to respond to allegations of abuse and

neglect within the State-mandated 24 hours; however, the proportion of

children who are subjects of repeat allegations increased.

.The decreasing trend in the foster care population was maintained in Fiscal

2004, with fewer children re-entering care once discharged to their families.

.There was improvement in ACS' ability to place children in foster care within

their own community district. However, the increasing number of large

sibling groups needing foster care has had a negative impact on placing

children in their own borough, and placing sibling groups together in the

same foster household.

.As the foster care population falls, fewer adoptions are finalized. However, a

higher proportion of children in ACS' care classified as adoptable were

adopted, and at a slightly quicker pace.

.The utilization rate for child care programs administered or funded by ACS

increased, but total enrollment declined. ACS will add additional child care

slots in the coming year. HeadStart enrollment and utilization increased.

Performance Report

.f Protect children from abuse and neglect.

Respond within 24 hours to every allegation of abuse and neglect and

perform thorough investigations of allegations. ACS continued to show

slight improvement in its ability to respond to allegations of abuse and neglect

within 24 hours, from 96.2 percent in Fiscal 2003 to 96.9 percent in Fiscal

2004, but remains below the 100 percentarget set by the State. The target

remains difficult to reach due to factors such as incorrect addresses and

unavailable family members. The number of abuse or neglect reports reported

to ACS decreased and the percentage of substantiated reports remained the

same.

45

John B. Mattingly, Commissioner

nyc.gov

Case 1:07-cv-03308-TPG Document 5-3 Filed 04/25/2007 Page 3 of 9
The percent of children in completed investigations who are the subject of a repeat allegation within a

year, which had fallen from 18.3 percent in Fiscal 2002 to 17.5 percent in Fiscal 2003, rose again to

18.6 percent in Fiscal 2004. The proportion of these repeat reports that were substantiated increased

from 9.3 percento 10 percent, equaling the annual target.

" "

Abuse and/or,neglect reports responded to ,within 24

Ch"'d " I t d " "" I" ren In comp e e Invest/ga,lons w ithrepeat

.., ., 0

Investlgatlonswithlnayear(%) .16. 8% 17. 7% 18.3 % 17. SOl /0 18.6% t.."' 

Children In substant~ate~ investigations wit~ repeat

substantiated InvestigatIons within a year (%) "'"""""""""""""""""

,( Provide preventive and foster care services to meet the needs of children and families.

Increase access to quality, neighborhood-based services to prevent placement or re-entry into

foster care. While the number of children receiving contract preventive services has increased by

more than one quarter since ACS' Neighborhood Based Services initiative began in Fiscal 2000, the

number of children served in Fiscal 2004 fell by one percent compared with Fiscal 2003, to 30,033.

The decrease was due to program closures. ACS is currently working to reallocate those program slots

to other providers. With the realloctation of slots, ACS expects to show an increase in the number of

children served by preventive providers for Fiscal 2005. At the same time, the positive trer:ld of

declining foster care populations has continued. Placements of children into foster care decreased in

Fiscal 2004, including new placements into care, which declined 18 percent. The average foster care

population fell by 14 percent, to 22,082, and has declined by 36 percent over the last five years.

Fewer children are returning to foster care soon after leaving; the percent of children in foster care

who are discharged to their families and re-enter foster care within a year of discharge fell from 9.2

percent in Fiscal 2003 to 8.6 percent for Fiscal 2004.

Maximize placement of children in foster homes within their own neighborhoods. The

Neighborhood Based Services Initiative aims to minimize the disruption that children who enter foster

care often experience. A key component is to place children in foster care within their communities.

The percent of children placed in their own community district increased slightly in Fiscal 2004, to

23.4 percent, meeting the annual target. However, the percent of children placed within their home

borough upon admission to foster care fell from 74.9 percento 72.6 percent. A reason for the decline

is a lack of appropriate vacancies within the borough of origin, particularly for placements of multiple

siblings. Additionally, the blackout of August 2003 caused disruptions of up to three weeks to the ACS

online placement systems; the percent of in-borough placements for August 2003 was 10 percent

lower than that for August 2002.

Maximize placement of children in foster care with family members and placement of children

with their siblings as appropriate. In an effort to further reduce the trauma of ent~ring foster care

and to preserve family ties, ACS strives to place children with their relatives-and, when possible, to

place sibling groups together in the same facility. The percentage of children entering foster care who

were placed with relatives remained virtually unchanged from Fiscal 2003 at 19.4 percent; however,

the proportion of siblings who are placed simultaneously in the same foster home decreased by 2.6

percentage points during the same period to 87.1 percent.

46

Case 1:07-cv-03308-TPG Document 5-3 Filed 04/25/2007 Page 4 of 9
Enhance family involvement in service planning for children in foster care. ACS promotes

parental involvement in the foster care decision-making process from the time the child is removed

from the home to the time the child is discharged from foster care. Within five days of the child's

removal from the home, Child Safety Conferences are held, which begin the process of planning for

the child and family. In Fiscal 2004, the percent of parents attending these 72-Hour Child Safety

Conferences increased 3.4 percentage points to 70.7 percent. After a child has been in care for 90

days, ACS begins to conduct six month Service Plan Reviews, which are held throughouthe child's

stay in care. These are held with the parents, the service providers and all involved parties to focus on

needed services for the child and family, to expedite discharge from care, and to achieve pennanency.

In Fiscal 2004, the attendance rate for parents attending Service Plan Reviews was 49 percent.

During the time the child remains in foster care, consistent contact with parents and siblings is

encouraged. During Fiscal 2004, the percent of children in foster care receiving bi-weekly visits from

their siblings increased slightly to 71.3 percent, while the percent receiving bi-weekly visits from a

parent or guardian fell by two percentage points.

Provide a safe, stable foster care environment for children. Although ACS attempts to maximize

stability in foster care through the best initial placements, transfers between facilities are often

necessary to meet children's individual needs. The percent of children in foster care who were

transferred two or more times while in care increased from 38.3 percent in Fiscal 2003 to 41.2 percent

in Fiscal 2004. The transfer rate has climbed from 35.2 percent in Fiscal 2000, when data was first

collected. The increase in the transfer rate can be attributed to the increased proportion of adolescents

in care, many of whom have been in care for long periods of time and are more likely to require

changes in their foster care facility to meet their changing needs.

In Fiscal 2004, the total number of abuse and neglect reports for children in foster care and child care

fell by 9.4 percent from Fiscal 2003; reports fell by 10 percent for children in foster care, and 7

percent for children in child care. During this same period, the percent of abuse and neglect reports for

children in foster care that were substantiated decreased, while increasing for children in child care.

In Fiscal 2004, ACS restructured the daily rate paid to contract agencies to operate foster boarding

homes to reflect program performance. Agencies receive incremental increases from the base rate

according to their performance on the Evaluation and Quality Improvement Protocol (EQUIP), with

high performing agencies receiving the highest rates. EQUIP is a comprehensive process that

evaluates the quality of services provided to children and families, as well as the programs and

agencies that provide these services. The usage of EQUIP scores as an indicator of performance and

determining factor for administrative rates ensures agency accountability and improves the quality of

services to children. In Fiscal 2004, the average daily cost of foster boarding home services,

combining contract and directly-provided services, increased by 4.6 percent over the Fiscal 2003 level,

to roughly $49 per child. Foster boarding home services are provided by a recruited, certified foster

parent who cares for the child in his/her home. During the same period, average daily combined costs

for congregate care services at the moderate and intermediate levels of need increased by 4 percent

and 3.5 percent respectively over Fiscal 2003, but the cost to provide the most severe level of

congregate care decreased by 3.3 percent, to roughly $175 per child. Congregate care settings are

residences in which older children live under the care of trained staff.

47

Case 1:07-cv-03308-TPG Document 5-3 Filed 04/25/2007 Page 5 of 9
"

Children ..""""""."""",,'.,,' In foster care (average) 34,354 30,858 28,215 25,622 22,082 """""'",;"",'c,L""""';4

"",;"""""'""""""'c""c",,cc,,,,",'c,,,c", All children entering foster care (Preliminary) 10,137 8~9 8,498 6,946 6~~ ~,'" "

'. ..""'c""""";""'c""""c';';',

-New children entenng foster care (PrelimInary) 8,065 6,889 6,545 5,634 4,627

Children who re-enter foster care within a year of

discharge to family (%) (Preliminary) 10.1% 8.6% 9.3% 9.2% 8.6% c8.6%';""8,6%,, ,,8,6%,

Children placed in foster care in their borough (%)

...\ 0 0 ""cc'~""""""'c"*"c,' (PrelimInary, 44.9% 57.5% 64.6% 74.9 Yo 72.6Yo ,j""'c,",c"'c"";c"':"~'"

Children placed in foster care in their community district

""c "'..,cCc' c

(%) (Preliminary) 7.7%13.7% 18.2% 22.1% 23.4% "23.QJo cc23;0%'",23,.0%,,'-

Chil~ren eontering ~os~er care who are placed with 0

relatIves (%) (PrelimInary) 16.0" 19.9% 22.5 Yo 19.2% 19.4% ,C"","'"i,'\,!;';'Ci',;;;;,,;;

Siblings ~/a~ed simultaneously in the same foster home 0

(%) (PrelimInary) 80.6% 84.7% 84.1 Yo 89.7% 87.1% cc"ccC"'C"C;"cc"""'C'C'C",c

~:=:~;~~~:--~ 70.8%

Child Safety Conferences (%) 67.0~ 68.0% 66.9% 67.3% 70.7% c;,;c""'"cc';':;;'2!Jt\';"cC"c'i;;;'c"~

(PrelimInary) 50.0 Yo 50.7 Yo c",c'" cCc'

Children in foster care receiving biweekly visits from a

parent or guardian (%) (Preliminary)

Children in foster care who had two or more transfers

!rom one facility to another (%)

Abuse and/or neglect reports for children in foster care

and child care

49.0% 60.0% 60.0% 60.0%

67% 65.0%

35.2% 36.8% 36.7% 38.3% 41.2%

1,900 1,976 1.,767 1,615 1,463

-for children in foster care

-for children in child care (%) (Preliminary) 16.8% 17.4%

Cost per foster care case ($)

-Congregate care by level of need I

-Leve/1 $126.19 $131.34 ~

-Leve/2

Bold. indicales revisions from the January 2004 MMR

.,I Ensure timely reunification or adoption services based on the needs of the child.

Decrease the length of time children remain in foster care. ACS' primary mission is to ensure

children have a safe, stable and nurturing environment in which to grow. One objective of this goal is

to return children home from foster care as quickly as possible. In Fiscal 2004, the preliminary median

length of stay in foster care for children who entered care for the first time and who were returned to a

parent was 7.6 months, up from 6.8 months in Fiscal 2003 and substantially slower than the target of

5.5 months. At the same time, 49.3 percent of these children were returned home within 12 months of

placement into foster care, virtually unchanged from Fiscal 2003 and exceeding the annual target of

45 percent.

48

Case 1:07-cv-03308-TPG Document 5-3 Filed 04/25/2007 Page 6 of 9
In Fiscal 2004, the number of children adopted was 2,735, a slight decline from the previous year and

short of the annual target of 2,900. The indicator does not reflect the agency's success in increasing

the rate of adoption for eligible children. In Fiscal 2004, ACS completed adoptions for 68 percent of

children in care who were freed for adoption, marking the highest rate in ACS history. The reason for

the smaller number of finalized adoptions is a direct result of the dramatic decline in the foster care

population, and thus the number of children eligible for adoption. Given these downward trends, ACS

is revising down its Fiscal 2005 target for finalized adoptions from 2,900 to 2,500. The new target

would require ACS to complete adoptions for upwards of 76 percent of foster care children freed for

adoption. The median length of stay of children in foster care before they are adopted fell slightly to

just over 61 months, and the proportion of children adopted within 24 months rose slightly to 24.3

percent. The average time to complete an adoption has remained between three and four years since

Fiscal 2000.

,( Ensure access to quality, safe child care and Head Start services in communlities.

Ensure availability and accessibility of child care services in communities. As shown in the

accompanying chart, the number of children enrolled in ACS' administered subsidized child care

programs decreased from 61,429 in Fiscal 2003 to 60,555 in Fisca12004, because some school-aged

children are now served in programs administered by the Department of Youth and Community

Development as part of the City's restructuring of out-of-school time for youngsters. At the same time,

ACS expanded contracts to increase subsidized child care by 2,642 slots.

The percent of budgeted child care slots that were

filled increased from 96.8 percent in Fiscal 2003 to

97.4 percent in Fiscal 2004, but fell short of target.

ACS is taking steps to increase emollment, meeting

with agencies that are performing significantly

below capacity and setting enrollment targets by

specific dates. ACS is also planning to reallocate

child care slots based on need, increasing available

slots in community districts with greater demand.

To determine where reallocation is appropriate, ACS

has been tracking vacancies and emollment for all

programs, including special monitoring of programs

with enrollment below 85 percent of capacity.

Enrollment in Subsidized Child Care

and Head Start Programs

61,429 60..555

FY 2000 FY 2001

-Child Care Enrollment in Head Start, a federally funded child

care program, was 18,075 in Fiscal 2004, compared

to 16,924 in Fiscal 2003. The percent of budgeted Head Start slots that were filled increased from 89

percent to 96.6 percent, exceeding the 95 percent annual target. Head Start programs have historically

been part-time child care. As more parents started entering the workforce, the demand for full time

service increased. In Fiscal 2004, ACS began converting part-time Head Start programs to full-time.

FY 2002 FY 2003

D Head Start

FY2004

Case 1:07-cv-03308-TPG Document 5-3 Filed 04/25/2007 Page 7 of 9
Head Start Program Average Cost per Child The City's payments for child care may be made through

(Federal FY' 02; NYC FY' 04) contracts directly with a provider or through vouchers

issued to the parent or guardian of the child. The cost per

$10,544 child care slot provided through vouchers decreased for

$9,277 group and family child care in Fiscal 2004. The cost per

contracted slot also decreased for family child care, but

increased for group child care. Group child care is staffed

by certified teachers and family child care is delivered by a

registered provider in his/her home. Costs per slot for the

Head Start program increased by 5.9 percent in Fiscal 2004,

but were 12 percent lower than the national average during

federal Fiscal Year 2002, as seen in the accompanying chart.

$12,O~

National New York City

Source: Administration for Children and Families,

V.S Deparlment of Health and Human Se/Vices

Cost per Head Start slot ($) $7,945 $8,762 $9,277 "",,""",",c "",'c'

-&- 311 related Bold -indicates revisions from the January 2004 MMR "NA" -means Not Available in this report

Inquiries Received by 311 Citizen Service I:enter

[II

..The 311 Citizen Service Center received :5,6.2~ A.CS-re1ated inquiries in Fiscal ~OO4. Agency

~ perfonnance measures related to the top mqumes m the table below are noted WIth a "311-

related" icon -a small teJephone symbol -in the

Citizen Inquiries Received by 311 Perfonnance Statistics tables in this chapter.

Child Care Eligibility Appointment 16,594 21.9%

Child Care Recertification 3,883 5.1%

50

Head Start capacity filled (%)

Cost per child care slot

-Group child care (voucher) ($) $5,976 $6,677 $6,511

--Family child care (voucher) ($) $4,874 $5,750 $5,710

Case 1:07-cv-03308-TPG Document 5-3 Filed 04/25/2007 Page 8 of 9
Agency Resources

Act u a

FYO1 FYO2

Preliminary Updated

FYO5' FYO5' !!flency Resources FYOO FYO3 FYO4 FYO4'

Expenditures ($ millions) $2,174.3 $2,256.2 $2,375.1 $2,345.5 $2,332.0 $2..238.7 $~,Q79.5$~..1~..0

-

Revenues ($ millions) $21.8 $19.5 $27.3 $17.2 $4.4 $15.9$13..l_$~4

Personnel ~~~ New M~ 7,953 6,895 6,343 6,582~!6,688

Overlime eamed ($000) $20.s33 $25,914 $28,555 $11,245 $11 ,680 ,~~

Human services contract budget ($ mil/ions) $1,295.2 $1,343.7 $1,368.3 $1,323.7 $1,308.5 $1;241.8$1,101.9 $1;185;6

Work Experience Program (WEP) parlicipants assigned 423 189 118 127 188 ...

.-'January 2004 Financial Plan 2 Authorized Budget Level Bold indicates additions or revisions from the January 2004 MMR 'NA' means Not Available in this report

Noteworthy Changes, Additions or Deletions

.ACS has revised the Fiscal 2005 target for 'Children adopted' from 2,900 to 2,500. The lower target

is more reflective of the declining number of children in foster care, and thus the smaller number of

foster care children eligible for adoption.

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