Finding 1205658 (2025-002)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-04-01

AI Summary

  • Core Issue: The Organization lacked effective processes to maintain documentation for TANF funds, leading to unsupported claims for 7 out of 52 tested samples.
  • Impacted Requirements: Compliance with federal regulations (2 CFR 200.303 and 2 CFR 200.334) regarding documentation for pay-for-performance outcomes was not met.
  • Recommended Follow-Up: Implement a review process to ensure proper documentation is retained for all pay-for-performance outputs and outcomes submitted to the grantor.

Finding Text

2025-002: Department of Health and Human Services - Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558; Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054. Criteria: The Organization should have effective policies and procedures in place to ensure there is proper documentation supporting funds were used in compliance with the federal award, per 2 CFR 200.303 and 2 CFR 200.334. Condition: During our audit, it was noted that there was not an effective process in place to keep and maintain the required records to support pay-for-performance outputs and outcomes. Context: The Organization was unable to provide documentation supporting the allowability of 7 of the 52 samples selected for testing. Cause/Effect: Internal control processes over maintenance of records supporting pay-for-performance outcomes and outputs were not operating effectively from July 2024 through June 2025. Questioned Costs: $7,200 calculated based on the dollar amount submitted for reimbursement for each item tested without proper records supporting the required outcome or output was met. Identification of Repeat Finding: 2024-002 Recommendation: We recommend that the Organization implements a review process to ensure that documentation is retained to support pay-for-performance outputs and outcomes submitted to the grantor. Views of Responsible Officials: Management agrees with the recommendation and has implemented corrective action as outlined in the corrective action plan.

Corrective Action Plan

Finding 2025-002 –Missing Records (Repeat Finding 2024-002) Management agrees with the recommendation and will implement stronger review processes to ensure proper documentation is in place to support pay-for-performance outputs and outcomes. Specifically, all program staff providing client charting and documentation will receive related training, both internally as well as from identified external sources. Accordingly, program staff attended a training on case management provided by an external partner in November 2025. In addition, a Case Manager Case Note Template has been developed that specifically outlines documentation required to support pay-for-performance outputs and outcomes including client intake, goals, activities and progress, and outcomes, as well as best practices for documenting client services. Finally, the organization will work with its external partners (PTEs, monitoring agencies, etc.) to ensure that requirements are consistently stated across all pertinent organizations and described in common nomenclature to avoid confusion and/or inadvertent omissions, which have been key factors contributing to the reoccurrence of this finding in FY25. The contact persons for the Corrective Action Plan are Lacy Stokes, VP of Family Empowerment and Self-Sufficiency; Ted Lewis, EVP of Operations and Information Technology (IAT Co-Chair); and Aaron Hernandez, Sr. Director, Finance (IAT Co-Chair). The anticipated completion date is May 31, 2026.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205657 2025-001
    Material Weakness Repeat
  • 1205659 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $3.70M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $345,030
93.569 COMMUNITY SERVICES BLOCK GRANT $124,717
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $98,604
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $73,918
10.558 CHILD AND ADULT CARE FOOD PROGRAM $56,309
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $12,587
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $210