Finding Text
2023-001 - Eligibility
Federal Agency: U.S. Department of Health and Human Services
Federal Program: 93.596 and 93.575 Child Care Development Fund (CCDF) Cluster
Condition:
As part of our testing of Horizons for Homeless Children’s (the Organization) internal
control over compliance for eligibility, we noted that the Organization did not follow their
internal controls regarding review and approval of the Child Care Subsidy Application and
Fee Agreement for one out of twenty-five applications reviewed.
Criteria:
2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish
and maintain effective internal controls over the Federal award that provides reasonable
assurance that the non-Federal entity is managing the Federal award in compliance with
Federal statutes, regulations and the terms and conditions of the Federal award.
Cause:
The Organization did not properly follow its internal controls.
Effect:
The Child Care Subsidy Application and Fee Agreement was not properly reviewed and
approved.
Context:
One out of twenty-five applications sampled. Our sample was not a statistically valid
sample. This was not a repeat finding from a prior period.
Questioned Costs:
None
Recommendations:
Management should ensure that the Organization’s internal controls in place are properly
followed.
Management Response:
Management agrees with the finding and will implement additional review procedures
during fiscal year 2024 to ensure the Child Care Subsidy Application and Fee Agreements
are properly reviewed and approved.