Finding Text
FEDERAL COMPLIANCE (Child Care and Development Block Grant – Eligibility and Special Tests and Provisions)
50000 (2024-001)
Significant Deficiency in Internal Control Over Federal Programs
Federal Program The internal control deficiencies identified relate to the following federal programs:
Condition During the audit of compliance related to the above programs, the following items were noted related to internal control over eligibility and special tests and provisions:
• One of three provider files selected for testing related to a license-exempt provider; a health and safety self-certification was on file, however, no evidence of the Office of Education’s review of the form was present.
• Four of six family files selected for testing did not contain an updated child care certificate each time a child’s provider rate changed. We were, however, able to recalculate the rate paid in accordance with the established maximum reimbursement rate.
• For four of six family files selected for testing, the subsidized child care enrollment checklist was incomplete and/or not signed to support the completeness of the file.
Criteria To provide strong internal control over compliance to comply with the requirements of 42 U.S. Code, Section 9858, internal controls should be in place to provide that:
• Health and safety self-certifications for license-exempt provider files include evidence of the Office of Education’s review procedures.
• Family files include an updated child care certificate each time a child’s provider rate changes.
• Family files contain a completed and signed subsidized child care enrollment checklist. The checklist is created and signed off by the program manager to evidence the completeness of the file.
Effect Without strengthening internal control over compliance, the Office of Education may not identify items needed to comply with program requirements.
Questioned Costs None identified.
Cause The Office of Education took over the program from another agency in the previous year. Although the Office of Education made significant effort to address the previous year’s audit finding, staff turnover and short staffing led to some documentation being overlooked.
Context The sample is statistically valid. The items noted appear systematic.
Repeat Finding This finding is related to item 2023-001 that is included in the summary schedule of prior audit findings.
Recommendation We recommend that the Office of Education ensure policies and procedures are implemented and followed to ensure the Office of Education has strong internal control over compliance in place.
Response The Office of Education will implement policies and procedures to ensure strong internal control over compliance in fiscal year 2024-25 and has issued a corrective action plan in a separate letter.