Finding Text
Finding 2025-001 – Special Tests and Provisions Federal Agency: U.S. Department of Health and Human Services Federal Program: Temporary Assistance for Needy Families – ALN 93.558 Criteria An organization should have a strong system of internal control that includes review, approval and submission of records for accuracy and allowability in accordance with the terms and conditions of the award agreements and federal regulations. Condition and Context ECS provides out-of-school time programming to youth to improve life skills, increase academic engagement and prepare youth for higher education and employment. ECS is required to maintain and submit attendance records as part of this program. Attendance records were not maintained and submitted for one of the sites tested. During our testing of nine monthly attendance records, we noted attendance records for one selection could not be provided. The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs Unknown Cause Attendance records were not maintained and submitted. Effect or Potential Effect Because the actual attendance records were not maintained and submitted for one of the sites tested, the amounts charged to the grant could be under or overcharged. Recommendation We recommend the Organization implement a process and related controls related to review, approval and submission of attendance records of at the site. Contracted slots utilized should be based on actual attendance and related documentation maintained by the Organization to support those amounts. Views of Responsible Officials and Planned Corrective Action Management agrees with the finding and has taken corrective action by adopting review, approval and submission processes to support contracted slots utilized. Moreover, the site in question was closed and the staff responsible were terminated. These actions and controls were completed and placed in service, respectively, during the year ended June 30, 2025, but were not conducted for the entire year.