Recurring Findings

Social Services: Recurring Material Internal Control Deficiencies
Federal Program Issue First Year Reported
Department's Assertion Page Number
Medical Assistance Program Health Care Services does not ensure management collects and verifies the completeness of the subrecipientís U.S. Office of Management and Budget (OMB) Circular A-133 audit reports nor ensure it issues management decisions within six months of the Stateís receipt of the audit reports. 2005-06
Fully corrected. Health Care Services maintains an annual list of counties and local government agency subrecipients subject to OMB Circular A-133 to ensure all required reports are received and logged in timely and verified for completeness. Formal written procedures have been developed to ensure management decisions are issued within six months of the State's receipt of the A-133 audit report. 173
Adoption Assistance Social Services did not comply with either of the suspension and debarment requirements included in the Administration for Children and Families (ACF) grantsí terms and conditions. Social Services did not adequately notify the counties of the suspension and debarment terms articulated in the terms and conditions. Social Services did not consult the federal Excluded Parties List System (EPLS) prior to disbursing funds to the counties. 2006-07
Partially corrected. Social Services will be issuing an annual County Fiscal Letter (CFL) that will address the suspension and debarment requirements and procedures for sub-recipients of federal funds. Prior to releasing the proposed CFL, Social Services will ensure the definitions used by the federal government in the U.S. Office of Management and Budget (OMB) Circular A-133 for recipients and vendors are understood and correctly applied to Social Servicesí business partners. 118
Adoption Assistance Social Services lacks adequate policies and procedures to ensure it issues management decisions on audit findings within six months after the State receives the countiesí U.S. Office of Management and Budget (OMB) Circular A-133 audit reports. Social Services did not take any action, including imposing sanctions, for two of the three counties that continue to either be unwilling or unable to have an audit conducted and submitted to the State Controllerís Office (SCO) in a timely manner in accordance with OMB Circular A-133. 2006-07
Partially corrected. Social Services is currently implementing the corrective action plan. By the end of 2009, Social Services will organize the Single County Audit information from the previous two years, develop a tracking system for the corrective action plans, update and organize the desk procedures, and establish appropriate OMB A-133 implementation policies and procedures. Additionally, the SCO is working with all state agencies to determine the subject of audit finding resolution decisions and the six month time frame for which these resolutions are due. 173
Adoption Assistance Social Servicesí processes for reviewing and authorizing the countiesí expense and assistance claims do not provide reasonable assurance that federal funds were expended only for allowable activities and costs. Without procedures such as reviewing the supporting documentation for the countiesí expense and assistance claims prior to payment or conducting on-site visits to review the claims during the award period, Social Services has no way of assuring that counties are spending federal funds only on allowable activities and costs. 2006-07
Remains uncorrected/disagree with finding. 184
Child Welfare Services- State Grants Social Services did not comply with either of the suspension and debarment requirements included in the Administration for Children and Families (ACF) grantsí terms and conditions. Social Services did not adequately notify the counties of the suspension and debarment terms articulated in the terms and conditions. Social Services did not consult the federal Excluded Parties List System (EPLS) prior to disbursing funds to the counties. 2006-07
Partially corrected. Social Services will be issuing an annual County Fiscal Letter (CFL) that will address the suspension and debarment requirements and procedures for sub-recipients of federal funds. Prior to releasing the proposed CFL, Social Services will ensure the definitions used by the federal government in the U.S. Office of Management and Budget (OMB) Circular A-133 for recipients and vendors are understood and correctly applied to Social Servicesí business partners. 118
Foster Care--Title IV-E Social Services did not comply with either of the suspension and debarment requirements included in the Administration for Children and Families (ACF) grantsí terms and conditions. Social Services did not adequately notify the counties of the suspension and debarment terms articulated in the terms and conditions. Social Services did not consult the federal Excluded Parties List System (EPLS) prior to disbursing funds to the counties. 2006-07
Partially corrected. Social Services will be issuing an annual County Fiscal Letter (CFL) that will address the suspension and debarment requirements and procedures for sub-recipients of federal funds. Prior to releasing the proposed CFL, Social Services will ensure the definitions used by the federal government in the U.S. Office of Management and Budget (OMB) Circular A-133 for recipients and vendors are understood and correctly applied to Social Servicesí business partners. 118
Foster Care--Title IV-E Social Services lacks adequate policies and procedures to ensure it issues management decisions on audit findings within six months after the State receives the countiesí U.S. Office of Management and Budget (OMB) Circular A-133 audit reports. Social Services did not take any action, including imposing sanctions, for two of the three counties that continue to either be unwilling or unable to have an audit conducted and submitted to the State Controllerís Office (SCO) in a timely manner in accordance with OMB Circular A-133. 2006-07
Partially corrected. Social Services is currently implementing the corrective action plan. By the end of 2009, Social Services will organize the Single County Audit information from the previous two years, develop a tracking system for the corrective action plans, update and organize the desk procedures, and establish appropriate OMB A-133 implementation policies and procedures. Additionally, the SCO is working with all state agencies to determine the subject of audit finding resolution decisions and the six month time frame for which these resolutions are due. 173
Foster Care--Title IV-E Social Servicesí processes for reviewing and authorizing the countiesí expense and assistance claims do not provide reasonable assurance that federal funds were expended only for allowable activities and costs. Without procedures such as reviewing the supporting documentation for the countiesí expense and assistance claims prior to payment or conducting on-site visits to review the claims during the award period, Social Services has no way of assuring that counties are spending federal funds only on allowable activities and costs. 2006-07
Remains uncorrected/disagree with finding. 163
Promoting Safe and Stable Families Social Services did not comply with either of the suspension and debarment requirements included in the Administration for Children and Families (ACF) grants' terms and conditions. Further, the Social Services staff did not consult the federal Excluded Parties List System (EPLS) website prior to issuing subawards or contracts to noncounty subrecipients as required by the ACF terms and conditions. 2006-07
Fully corrected. Social Services added the need to consult the EPLS website prior to entering into a contract to its contract checklist for all contracts. Additionally, Social Services has modified its suspension and debarment certification language to eliminate the monetary threshold and incorporate the appropriate language to address the suspension and debarment clearance requirement for any subcontractor. 118
Promoting Safe and Stable Families Social Services did not comply with either of the suspension and debarment requirements included in the Administration for Children and Families (ACF) grantsí terms and conditions. Social Services did not adequately notify the counties of the suspension and debarment terms articulated in the terms and conditions. Social Services did not consult the federal Excluded Parties List System (EPLS) prior to disbursing funds to the counties. 2006-07
Fully corrected. Social Services added the need to consult the EPLS website prior to entering into a contract to its contract checklist for all contracts. Additionally, Social Services has modified its suspension and debarment certification language to eliminate the monetary threshold and incorporate the appropriate language to address the suspension and debarment clearance requirement for any subcontractor. 120
Promoting Safe and Stable Families Social Services did not have processes and procedures to ensure its noncounty subrecipients have met the U.S. Office of Management and Budget (OMB) Circular A-133 audit requirements. Specifically, Social Services did not have a process in place to collect and review the OMB Circular A-133 audits, nor to ensure it issues management decisions within six months after receiving the audit. 2006-07
Fully corrected. New policies and procedures have been implemented and continue to be modified as needs are identified. 135
Refugee and Entrant Assistance- State Administered Programs Social Services did not comply with either of the suspension and debarment requirements included in the Administration for Children and Families (ACF) grants' terms and conditions. Further, the Social Services staff did not consult the federal Excluded Parties List System (EPLS) website prior to issuing subawards or contracts to noncounty subrecipients as required by the ACF terms and conditions. 2006-07
Fully corrected. Social Services added the need to consult the EPLS website prior to entering into a contract to its contract checklist for all contracts. Additionally, Social Services has modified its suspension and debarment certification language to eliminate the monetary threshold and incorporate the appropriate language to address the suspension and debarment clearance requirement for any subcontractor. 118
Refugee and Entrant Assistance- State Administered Programs Social Services did not comply with either of the suspension and debarment requirements included in the Administration for Children and Families (ACF) grantsí terms and conditions. Social Services did not adequately notify the counties of the suspension and debarment terms articulated in the terms and conditions. Social Services did not consult the federal Excluded Parties List System (EPLS) prior to disbursing funds to the counties. 2006-07
Fully corrected. Social Services added the need to consult the EPLS website prior to entering into a contract to its contract checklist for all contracts. Additionally, Social Services has modified its suspension and debarment certification language to eliminate the monetary threshold and incorporate the appropriate language to address the suspension and debarment clearance requirement for any subcontractor. 120
TANF (Temporary Assistance for Needy Families) Social Services did not comply with either of the suspension and debarment requirements included in the Administration for Children and Families (ACF) grantsí terms and conditions. Social Services did not adequately notify the counties of the suspension and debarment terms articulated in the terms and conditions. Social Services did not consult the federal Excluded Parties List System (EPLS) prior to disbursing funds to the counties. 2006-07
Partially corrected. Social Services will be issuing an annual County Fiscal Letter (CFL) that will address the suspension and debarment requirements and procedures for sub-recipients of federal funds. Prior to releasing the proposed CFL, Social Services will ensure the definitions used by the federal government in the U.S. Office of Management and Budget (OMB) Circular A-133 for recipients and vendors are understood and correctly applied to Social Servicesí business partners. 118
TANF (Temporary Assistance for Needy Families) Social Services lacks adequate policies and procedures to ensure it issues management decisions on audit findings within six months after the State receives the countiesí U.S. Office of Management and Budget (OMB) Circular A-133 audit reports. Social Services did not take any action, including imposing sanctions, for two of the three counties that continue to either be unwilling or unable to have an audit conducted and submitted to the State Controllerís Office (SCO) in a timely manner in accordance with OMB Circular A-133. 2006-07
Partially corrected. Social Services is currently implementing the corrective action plan. By the end of 2009, Social Services will organize the Single County Audit information from the previous two years, develop a tracking system for the corrective action plans, update and organize the desk procedures, and establish appropriate OMB A-133 implementation policies and procedures. Additionally, the SCO is working with all state agencies to determine the subject of audit finding resolution decisions and the six month time frame for which these resolutions are due. 173
TANF (Temporary Assistance for Needy Families) Social Servicesí processes for reviewing and authorizing the countiesí expense and assistance claims do not provide reasonable assurance that federal funds were expended only for allowable activities and costs. Without procedures such as reviewing the supporting documentation for the countiesí expense and assistance claims prior to payment or conducting on-site visits to review the claims during the award period, Social Services has no way of assuring that counties are spending federal funds only on allowable activities and costs. 2006-07
Remains uncorrected/disagree with finding. 163
Adoption Assistance Social Services does not have adequate internal controls in place to ensure county welfare departments are claiming costs according to the cost allocation plan (CAP) for local agencies. Further, Social Services does not have a process in place to ensure the costs that are reflected on the county expense claims are calculated in accordance with the local agency CAP. 2007-08
Remains uncorrected/disagree with finding. 165
Adoption Assistance Social Services lacks formal processes to ensure it fulfills its pass-through responsibility to monitor the counties during the award period. 2007-08
Partially corrected. Social Services establishes Adoption Assistance Program (AAP) requirements under statute, regulations, and all county letters to counties and adoption district offices. Like the state, counties are audited under Single Audit standards that include review of the AAP, among other programs. Additionally, claims for AAP administrative and assistance costs are "desk audited" by Social Services and certified correct and accurate by county welfare directors. Finally, the state has a federally-approved AAP Program Improvement Plan which will guide Social Servicesí federal compliance for the coming two years, effective January 2009. 133
Adoption Assistance Social Servicesí processes for reviewing and authorizing the countiesí administrative and assistance claims do not provide reasonable assurance that adjustments included on the claims are for expenditures made within two years after the calendar quarter in which the expenditures were initially paid. 2007-08
Remains uncorrected/disagree with finding. 167
Foster Care--Title IV-E Social Services does not have adequate internal controls in place to ensure county welfare departments are claiming costs according to the cost allocation plan (CAP) for local agencies. Further, Social Services does not have a process in place to ensure the costs that are reflected on the county expense claims are calculated in accordance with the local agency CAP. 2007-08
Remains uncorrected/disagree with finding. 165
Foster Care--Title IV-E Social Servicesí processes for reviewing and authorizing the countiesí administrative and assistance claims do not provide reasonable assurance that adjustments included on the claims are for expenditures made within two years after the calendar quarter in which the expenditures were initially paid. 2007-08
Remains uncorrected/disagree with finding. 167
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