Finding 1169398 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-01-16
Audit: 382319
Organization: 18 Degrees, Inc. (MA)

AI Summary

  • Core Issue: Missing required documents in consumer files show that internal controls for compliance with EEC childcare contract requirements are weak.
  • Impacted Requirements: 18 Degrees Inc. must use an enrollment checklist to ensure all necessary documents are collected and filed correctly.
  • Recommended Follow-Up: Implement a bi-monthly review of the checklist and follow up promptly on any missing documentation.

Finding Text

REPORTABLE CONDITION: THE ABSENCE OF SEVERAL REQUIRED DOCUMENTS IN THE ON-SITE CONSUMER FILES INDICATES THAT INTERNAL CONTROLS OVERCOMPLIANCE WITH THE EEC CHILDCARE CONTRACT REQUIREMENTS ARE NOT OPERATING EFFECTIVELY. CRITERIA: TO STRENGTHEN INTERNAL CONTROLS OVER COMPLIANCE, 18 DEGREES INC. SHOULD MAINTAIN AND PERIODICALLY REVIEW ANENROLLMENT CHECKLIST TO VERIFY THAT ALL REQUIRED DOCUMENTS ARE COLLECTED AND PROPERLY FILED IN EACH CONSUMER RECORD. ANY MISSING DOCUMENTATION SHOULD TRIGGER PROMPT FOLLOW-UP TO SECURE THE REQUIRED INFORMATION. CAUSE: THE ORGANIZATION’S EXISTING INTERNAL CONTROLS TO ENSURE COMPLETE CONSUMER DOCUMENTATION ARE NOT BEING CONSISTENTLY APPLIED. EFFECT: SEVERAL REQUIRED DOCUMENTS IN THE ON-SITE CONSUMER FILES WERE MISSING. REPEAT FINDING: NO. AUDITORS’ RECOMMENDATION: THE ORGANIZATION SHOULD BE MAINTAINING A CHECKLIST OF REQUIRED DOCUMENTS THAT ARE TO BE MAINTAINED IN THE CONSUMERFILES AND BE CHECKING THE CHECKLIST BI-MONTHLY (AND FOLLOWING UP, IF NECESSARY) TO ENSURE ALL REQUIRED DOCUMENTS HAVEBEEN RETRIEVED.

Corrective Action Plan

THE ORGANIZATION WILL CREATE A FILE THAT WILL CONTAIN ALL FILES THAT REQUIRE ADDITIONAL DOCUMENTATION OR COMPLETION. CHILDCARE OPERATIONS WILL COMMUNICATE TO THE SITE DIRECTORS THAT CONSUMER FILES ARE MISSING, AND THIS WILL BE COMMUNICATED DIRECTLY TO THE FAMILIES. IF NEEDED THE FAMILY FOCUSED CASE MANAGER WILL ARRANGE TO GATHER THE REQUIRED DOCUMENTS AT THE HOMES OF THESE FAMILIES. A MONTHLY REVIEW OF FILES WILL OCCUR AND FILES THAT CONTINUE TO HAVE MISSING INFORMATION WILL INVOLVE THE REQUEST FOR IN-PERSON MEETINGS WITH THE FAMILIES. IF MISSING DOCUMENTATION CONTINUES TO BE INCOMPLETE FOR FIVE BUSINESS DAYS, A REQUEST FOR DISENROLLMENT OF THE CHILD WILL OCCUR.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1169373 2025-001
    Material Weakness Repeat
  • 1169374 2025-001
    Material Weakness Repeat
  • 1169375 2025-001
    Material Weakness Repeat
  • 1169376 2025-001
    Material Weakness Repeat
  • 1169377 2025-001
    Material Weakness Repeat
  • 1169378 2025-001
    Material Weakness Repeat
  • 1169379 2025-001
    Material Weakness Repeat
  • 1169380 2025-001
    Material Weakness Repeat
  • 1169381 2025-001
    Material Weakness Repeat
  • 1169382 2025-001
    Material Weakness Repeat
  • 1169383 2025-001
    Material Weakness Repeat
  • 1169384 2025-001
    Material Weakness Repeat
  • 1169385 2025-001
    Material Weakness Repeat
  • 1169386 2025-001
    Material Weakness Repeat
  • 1169387 2025-001
    Material Weakness Repeat
  • 1169388 2025-001
    Material Weakness Repeat
  • 1169389 2025-001
    Material Weakness Repeat
  • 1169390 2025-001
    Material Weakness Repeat
  • 1169391 2025-001
    Material Weakness Repeat
  • 1169392 2025-001
    Material Weakness Repeat
  • 1169393 2025-001
    Material Weakness Repeat
  • 1169394 2025-001
    Material Weakness Repeat
  • 1169395 2025-001
    Material Weakness Repeat
  • 1169396 2025-001
    Material Weakness Repeat
  • 1169397 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $356,448
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $43,759
10.555 NATIONAL SCHOOL LUNCH PROGRAM $34,459
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $20,795
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $17,172
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $14,837
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $9,064
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $5,583
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $4,773