The claims came from the Dallas County Local Workforce Development Board, a county agency that administered federal funds for job initiatives through the Texas Workforce Commission. ACS had been hired as a private contractor by the federal government to work with the state commission and the local Dallas board, according to a statement from the office of US district attorney Richard Roper.

ACS voluntary came forward with the information of inflated claims and cooperated with the investigation into the matter. The government alleged ACS had received federal money for improper claims for programs run by a number of federal agencies, including the Departments of Agriculture and Labor and the Department of Health and Human Services’ Administration for Children and Families.

In its own statement, ACS said it had quickly reported the matter to the government after it learned that certain employees working with the Dallas board were acting improperly. The company said it fired four employees as a result. ACS spokesperson Kevin Lightfoot said the inflated claims were an issue only at the Dallas program..

The settlement also includes a $539,472 payment from the Dallas board to ACS for work during 2005.