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FINDING REFERENCE NUMBER 2024-048 FEDERAL PROGRAMS (ALN – 93.489; 93.575; AND 93.596) CHILD CARE AND DEVELOPMENT FUND CLUSTER U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES AWARD NUMBERS G2101PRCCDD, G2201PRCCDD, G2201PRCCDT & G2301PRCCDT (Federal Award Years: 2021 through 2023) ADMINISTRATION ADMINISTRATION FOR THE CARE AND COMPREHENSIVE DEVELOPMENT OF CHILDREN (ACUDEN, BY ITS SPANISH ACRONYM) COMPLIANCE REQUIREMENT SPECIAL TESTS & PROVISIONS – HEALTH AND SAFETY REQUIREMENTS TYPE OF FINDING INTERNAL CONTROL AND COMPLIANCE – SIGNIFICANT DEFICIENCY AND NONCOMPLIANCE CRITERIA According to the 2 CFR Part 200, Appendix XI, as part of their CCDF plans, Lead Agencies must certify that procedures are in effect (e.g., monitoring and enforcement) to ensure that providers serving children who receive subsidies comply with all applicable health and safety requirements. This includes verifying and documenting that child care providers (unless they meet an exception, e.g., family members who are caregivers or individuals who object to immunization on certain grounds) serving children who receive subsidies meet requirements pertaining to health and safety. These requirements must address eleven specific areas-including first aid and CPR, safe sleeping practices, and administration of medication-and child care workers must be trained in these areas (42 USC 9858c(c)(2)(1); 45 CFR section 98.41). STATEMENT OF CONDITION In order to assess the compliance and internal control in place to ensure the compliance with Special Test and Provision – Health and Safety Requirements, we selected a sample of thirteen (13) subawards from a population of one hundred twenty-seven (127) subawards. Then for one subrecipient we noted that it did not have the Eligibility Certificate issued by ACUDEN indicating that the subrecipient is in compliance with the health and safety requirements. Also, there was no evidence of visit binnacle form indicating that ACUDEN has been visiting the subrecipient in order to validate the compliance with the health and safety requirements. QUESTIONED COSTS None. PERSPECTIVE INFORMATION ACUDEN has an internal regulations known as "Manual of Procedures for Determination of Eligibility of the Care Service Provider" and “Regulation No. 8687” establishing in the Article 4.14 Inspection of Suppliers indicating that prior to the issuance of the CCDF Certification of Compliance, all providers will be required to comply with the orientation and training process offered by the Child Care Program. For the granting of the CCDF Certification of Compliance, it will be a requirement that they meet the quality, health, and safety standards established by the Child Care Program. An evaluation sheet will be used during supplier inspections and their findings and recommendations will be documented. The scope of the inspections will be as follows: A. Health and Safety Aspects – 1. Current license from the Licensing Office of the Department of Family. 2. Current certification from the Fire Prevention Division of the Puerto Rico Fire Department. 3. Permit for use by the Permit Management Office (OGPe), the Regulation and Permits Administration (ARPE) or the Urban Permits Office (OPU). 4. Valid license, issued by the Department of Health's Division of Environmental Health. 5. Certification from the Public Service Commission, if applicable Also, in these internal regulations are established other documentation required by ACUDEN to be provided by the service provider as part of the Health and Safety determination. In addition, according to Monitoring performed by the US Department of Health and Human Services (HHS) on February 12-16, 2024 to determine compliance with Child Care and Development Fund (CCDF), this finding was detected and reported by the Federal agency. CCDF regulations require Lead Agencies to maintain compliance with all provisions of the Child Care and Development Block Grant Act, regulations, and the Territory's approved CCDF Plan during the administration of their program. STATEMENT OF CAUSE ACUDEN did not perform the required visits to the service provider’s facilities in order to make an inspection and request documentation to verify that the service provider was in compliance with the health and safety requirements. POSSIBLE ASSERTED EFFECT The not performance by ACUDEN of the required visits to the services provider to validate its compliance with the health and safety requirements could provoke this service provider could perform an unsafe and dangerous services to the participants. Also, this eligibility determination not performed could increase the risk of noncompliance and may result in improper use of funds. IDENTIFICATION OF REPEAT FINDING No reported as prior audit finding. RECOMMENDATIONS We recommend ACUDEN to strengthen internal controls related to the Health and Safety Certification of Compliance awards. ACUDEN should have all the human resources necessary to performs all the inspections required for consideration and the implementation of the internal regulation “Manual of Procedures for Determination of Eligibility of the Care Service Provider" and “Regulation No. 8687” to ensure that the participant be able to receive a safe childcare service.