Finding 1153770 (2024-003)

Criteria: According to the Uniform Guidance in CFR Part 200, Part IV, Eligibility para. (1) (a), foster care benefit payments may be paid on behalf of a child only if all the requirements are met. These requirements are to be evaluated on the LDSS-4809 Initial Foster Care Eligibility Checklist or the LDSS-4810 Re-Determination of Title IV-E Eligibility Checklist. Internal controls should provide reasonable assurance that the County complies with activities allowed or unallowed and eligibility requirements according to the Uniform Guidance. Cause/Condition: The County’s current policies and procedures are not operating effectively to ensure that only eligible recipients are receiving payments. Specifically, the following deficiencies in internal control over compliance were identified: • 5 of 40 cases tested, the LDSS-4810 re-determination checklist was not completed. • 4 of 40 cases tested, the LDSS-4810 re-determination checklist in the selected case file was completed but not signed off by both the case worker and supervisor. This is a repeat of the finding in the prior fiscal year's audit report, 2023-002. Effect: Existing internal controls were not operating properly to ensure compliance with eligibility according to Uniform Guidance. Reference: 2024-003 (Continued) Context: A sample of 40 cases totaling $38,773 was selected for audit from a population of greater than 200 totaling $8,355,818. Our sample was a statistically valid sample. Recommendation: We recommend that the County reinforce existing policies and procedures that require completion and review of the Title IV-E Eligibility Checklist to ensure proper documentation and eligibility determination. If the County’s procedures include destroying the hard copy originals of the forms, it is imperative the scanned copies are fully legible to support the authorized benefits issued. Questioned Costs: None noted. Management’s Response: The Department of Children and Family Services management agrees with the findings and will reinforce existing policies and procedures within the Department to ensure that all documents are properly retained and signed.