Finding Text
Condition: During our testing of 25 disbursements for the program, we noted one disbursement for which an invoice or
receipt from a third party vendor could not be provided. The only support provided was the excel allocation to
various areas. We also noted 2 instances where children in foster care received more than the $150 clothing
allowance, including the purchase of $200 gift cards in addition to other items in both instances. In the final issue
in our sample of 25, we noted toys included with a clothing purchase. Toys should not be included in clothing
allowances per grant guidelines. Our testing noted three instances where gift cards were not well tracked to
ensure they were properly given to foster families and subsequently used for clothing.
Criteria: All disbursements should be properly supported by adequate documentation, made within program established
guidelines. Cause: Documented allowance for clothing was not followed in 2 instances tested. Support was not maintained for one
disbursement tested. Unallowed items were purchased in one disbursement tested.
Effect: Disbursements that weren’t allowable under the program were made in several instances because amounts
exceeded allowed thresholds or for an unallowed item. Additionally, an unsupported item could not be verified
for allowability due to lack of details as to what was purchased.
Questioned Cost Amount: $2,777.78 from the sample tested and projected to be approximately $94,000 of the total expenditures.
Perspective Information: 5 of 25 items selected for testing
Recommendation: We recommend that stronger reviews and oversight is put in place to make sure that allowances for clothing are
followed for all children in foster care. Additionally, if the program is going to continue use of gift cards as a means
of providing funds for clothing purchases, then receipts for the use of those funds should be received to verify
they were spent appropriately and controls over unspent gift cards must be put in place.
Views of Responsible Officials and Planned Corrective Action: enCircle has communicated to grant management personnel the requirements regarding clothing allowances,
especially when using gift cards. Going forward enCircle will also require that all gift cards can be uniquely
identified with a specific child and that also foster parents will submit receipts to enCircle regarding gift card
purchases until the card is fully spent (if the card is not fully spent the foster parent will be liable to return it or
the cash value remaining).
enCircle will develop and implement an internal auditing procedure and cycle to regularly evaluate a sample of
transactions throughout the year to ensure documentation and use is appropriate for all federal funds.