Finding 1229047 (2025-001)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-09-08

AI Summary

  • Core Issue: One out of 40 home visit notes lacked supervisor approval, risking improper billing for services not verified.
  • Impacted Requirements: Compliance with 2 CFR 200.303, which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: Ensure qualified personnel review home visit records within 30 days to capture necessary approvals before lockdown.

Finding Text

SIGNIFICANT DEFICIENCY 2025-001 ACTIVITIES ALLOWED Federal Agency: Department of Health and Human Services Federal Program: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Numbers and Years: 46329; October 1, 2020 - September 30, 2026 Condition: Out of a sample of 40 home visit notes, 1 lacked written evidence of supervisor approval. Criteria: The grant is billed per family served based on completing various activities, including home visits. Under 2 CFR 200.303, the Organization is required to establish, document and maintain a system of effective internal control over federal awards to ensure that home visits occur and that the grant is billed only for families receiving services. Cause: Program supervisors failed to follow internal procedures to timely document review of home visits performed. Effect: The Organization could bill the grant without verification that a home visit occurred. Recommendation: We recommend that qualified personnel review the record of home visits within 30 days so that evidence of the approval is captured before lockdown occurs. Identification of repeat findings: This finding is not a repeat finding.

Corrective Action Plan

Child and Parent Services, Inc. Corrective Action Plan Audit year ended: December 31, 2025 Federal Agency: Department of Health and Human Services Federal Program: Temporary Assistance for Needy Families ALN: 93.558 Federal Award Numbers and Years: 46329; October 1, 2020 – September 30, 2026 Name and address of independent public accounting firm: Kruggel, Lawton & Company, LLC 317 W. Franklin St Elkhart, IN 46517 Description of Finding: Finding #: 2025-001 Out of a sample of 40 home visit notes, one lacked written evidence of supervisor approval. The grant is billed per family served based on completing various activities, including home visits. Under 2 CFR 200.303, the Organization is required to establish, document and maintain a system of effective internal control over federal awards to ensure that home visits occur and that the grant is billed only for families receiving services. Program supervisors failed to follow internal procedures to timely document review of home visits performed. The Organization could bill the grant without verification that a home visit occurred. We recommend that qualified personnel review the record of home visits within 30 days so that evidence of the approval is captured before lockdown occurs. Corrective Action Plan: Internal controls were immediately adjusted to ensure that supervisors review and document approval on each home visit prior to the lockdown date in the system. Supervisors will continue to meet weekly with each home visitor where they discuss each family being served and all activities that have taken place. The program will implement training for supervisors by August 31, 2026 to ensure that visit notes are approved within 45 days of the visit date and that a note is added in the system if the review is done after the 30-day lockdown period. Additionally, procedures will be implemented by August 31, 2026 for the Program Director to review a report of home visits lacking supervisor approval each month. The Program Director will follow up with the supervisors to resolve any unapproved visits identified in the monthly report. Member of management responsible for corrective action plan: Chief Financial Officer

Categories

Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $843,003
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $589,853
16.575 CRIME VICTIM ASSISTANCE $122,790