Finding Text
2025-010 LACK OF SUPPORTING DOCUMENTATION FOR ADOPTIONS– REPEATED & MODIFIED Funding agency: U.S. Department of Health and Human Services Title and ALN Number: 93.659 Title IV-E Adoptions Type of Finding: Significant Deficiency, Other Non-compliance Compliance Area: Eligibility Award Year: Title IV-E Adoptions 23 Assistance (7/1/2023 – 12/31/2024) Title IV-E Adoptions 24 Assistance (1/1/2025 – 9/30/2025) Question Costs: Unknown Condition The Department lacks controls over compliance and document retention and could not provide supporting documentation as follows: Adoptions Eligibility Testing (10 sample items) • 1 instance where the Department could not provide documentation addressing the parent's criminal record and evidence of mitigation, which would determine the parent's eligibility for adoption. We cannot determine whether the Department has mitigated this history. • 1 instance where we were not provided with negotiation files showing that CYFD attempted to proceed with the adoption without a subsidy. • 1 instance where we were not provided with the executed subsidy agreement i.e., signed by an authorized CYFD personnel. • 1 instance where CYFD was unable to provide documentation of either the birth parent's relinquishment or a death certificate. Additionally, for the adopted child from a tribal nation, the Department did not provide evidence of obtaining the required approval from the tribal nation. Update for FY25: The Adoptions unit has continued to move adoption files from county offices to the central filing location in Santa Fe. Training is provided in the 3rd casing process to help case workers in the field understand exactly what needs to be done before an adoption finalizes. Criteria Pursuant to Social Security Act – sections 476; 8.2D.1 Title IV-E, Adoption Assistance Program, Payments, Allowable Costs, subsidies are not allowed until there is an adoption assistance agreement in effect. Also, per 8.2D.4, the amount of the adoption assistance payment cannot exceed the amount the child would have received if s/he had been in a foster family home, but otherwise must be determined through agreement between the adoptive parents and the IV-E agency. The Department must retain all records necessary to comply with the data requirements in Sections 1355.41 through 1355.45. The Title IV-E agency’s retention of such records is not limited to the requirements of 45 CFR 92.42(b) and (c). 45 CFR 74.53 (b) which, in pertinent part, states that "Financial records . . . shall be retained for a period of three years from the date of submission of the final expenditure report . . .". NMAC 2.20.5.8 requires agencies to ensure that all reporting of financial information to be timely, complete, and accurate. Effect Unallowable purchases could be made with program monies if the Department is not able to review and retain adequate documentation. There is a higher risk of improper payments and misreporting, which is backed by Finding 2024-003. The Department is at higher risk of non-compliance with laws, contracts, and regulations without accountability in place to ensure proper controls are followed. Allegations and complaints decrease public trust in government. Cause Certain paper files may be missing due to the program moving office spaces and files; however, there would still be electronic files. The Department lacks controls over compliance, monitoring, and document retention. NM CYFD has been making continuous efforts to organize the adoption case files in their New Mexico Children, Youth, and Families Department Reporting 32 custody. However, personnel turnover in County placement offices has made recovering some of the pertinent files challenging.