50000 – Special Tests and Provisions Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: California Department of Social Services Program Name: Child Care and Development Fund Block Grant Cluster Federal Financial Assistance Listing: 93.596, 93.575 Award Identification Number: 13694, 14153, 15400, 24178, 23881, 13946, 15534, 24130, 25136, 14551,24568 Award Year: 2025 Compliance Requirements: N (Special Tests and Provisions) Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria Public Law 117-2 Title II, Subtitle C, Section 2202 provided stabilization funding for child care providers. Public Law 117-2 Title II, Section 2202(d)(2)(B), specifies that to be qualified to receive a subgrant under this paragraph, a provider shall be an eligible child care provider that on the date of submission of an application of the subgrant, was either (1) open and available to provide child care services; or (2) closed due to public health, financial hardship, or other reasons relating to the COVID-19 public health emergency. In addition, the provider must either (1) be eligible to serve children who receive CCDF subsidies at the time of application for stabilization funds, or (2) be licensed, regulated, or registered in the state as of March 11, 2021, and meet applicable state and local health and safety requirements at the time of application for stabilization funds. In their application for stabilization funds, a child care provider must make certain certifications as specified in the law. Condition During testing of stipends paid to child care providers, we noted that the Santa Barbara County Education Office was not able to provide documentation that one provider had completed the certification. Cause The identified condition appears to have materialized due to ineffective controls for monitoring eligibility for the stipends. Effect As a result of the condition identified, the County was not in compliance with Public Law 117-2 Title II, Section 2202(d)(2)(B). The County did not receive a completed certification from one provider. Questioned Costs There were no questioned costs associated with the identified condition. Context A haphazard sample of 40 payments from a population of 319 was initially tested. This resulted in one instance of immaterial noncompliance. In response to this immaterial noncompliance, an additional sample of 20 payments was tested with no additional noncompliance noted. Repeat Finding No. Recommendation The County should establish more effective internal controls and monitoring over the collection of certifications to ensure compliance with the requirements of the law.