Audit 294370

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Child Care Resource and Referral-Middlesex & Somerset Assistance Listing Number: 93.596 Pass-Through Agency: New Jersey Department of Human Services Division of Family Development Pass-Through Number(s): UC23024 Award Period: October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award and NJ OMB Circular 15-08 requires compliance with the provisions of eligibility with respect to providing services for participants. Condition: During our eligibility testing, one of 40 participant files reviewed showed that one ineligible participant received child care services for a period of time. Questioned costs: $3,618 Context: During our testing, it was noted that the Organization provided services to one participant who did not meet the minimum 30 hours/ week employment requirement. Cause: Although procedures were in place for review of documentation supporting eligibility, the documentation was reviewed and approved incorrectly. The error was discovered by the Organization’s quality control function but was not corrected in a timely manner. Effect: The participant continued to receive child care services for a period of time when they were not eligible. Repeat Finding: N/A Recommendation: We recommend the Organization enhance their training process with respect to documentation review to ensure an adequate review process is in place to prevent errors with respect to participant eligibility. Views of responsible officials: CCCS has already alerted the DFD of the exception and requested a recoupment of funds. We will re-train our staff to ensure the existing procedures and documentation reviews are correctly followed.

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Child Care Resource and Referral-Middlesex & Somerset Assistance Listing Number: 93.596 Pass-Through Agency: New Jersey Department of Human Services Division of Family Development Pass-Through Number(s): UC23024 Award Period: October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award and NJ OMB Circular 15-08 requires compliance with the provisions of eligibility with respect to providing services for participants. Condition: During our eligibility testing, one of 40 participant files reviewed showed that one ineligible participant received child care services for a period of time. Questioned costs: $3,618 Context: During our testing, it was noted that the Organization provided services to one participant who did not meet the minimum 30 hours/ week employment requirement. Cause: Although procedures were in place for review of documentation supporting eligibility, the documentation was reviewed and approved incorrectly. The error was discovered by the Organization’s quality control function but was not corrected in a timely manner. Effect: The participant continued to receive child care services for a period of time when they were not eligible. Repeat Finding: N/A Recommendation: We recommend the Organization enhance their training process with respect to documentation review to ensure an adequate review process is in place to prevent errors with respect to participant eligibility. Views of responsible officials: CCCS has already alerted the DFD of the exception and requested a recoupment of funds. We will re-train our staff to ensure the existing procedures and documentation reviews are correctly followed.