Finding 1238149 (2025-001)

Finding 2025-001. Foster Care, Title IV-E - #93.658 Adoption Assistance - #93.659 Type of Finding - Significant Deficiency in Internal Control Over Compliance Finding Title - Internal Controls Over Document Retention, File Maintenance, and Supervisory Review Criteria Uniform Guidance §200.303 Internal Controls, requires the County to establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition We identified instances where required documentation was not maintained within County records or supporting files, including: One foster care disbursement was coded incorrectly due to insufficient supporting documentation being maintained with the payment records or case file. One foster care eligibility file contained evidence that required review and approval controls were not operating effectively, as the caseworker and supervisor approval signatures were completed by the same individual. Cause The County did not consistently follow its internal controls to ensure required eligibility, placement, approval, and expenditure documentation is retained and maintained in a secure centralized electronic records system. Additionally, supervisory review procedures are not adequately designed or consistently performed to verify the completeness of case files and supporting documentation prior to filing and record retention. Effect Without complete documentation and effective supervisory review, the County cannot readily demonstrate compliance with federal program requirements. Missing documentation increases the risk of unsupported eligibility determinations, unsupported expenditures, inaccurate coding of program costs, loss of critical records, and noncompliance with program regulations. Questioned Costs Not applicable. Recommendations We recommend the County strengthen internal controls over Foster Care and Adoption Assistance program records as follows: 1. Implement a secure electronic document management system for all required program documentation. 2. Use the established standardized checklists identifying all required eligibility, placement, approval, and expenditure records. 3. Require supervisory review of case files periodically and prior to file closure to verify required documentation has been obtained and retained. 4. Implement procedures to ensure supporting documentation is maintained and readily accessible for monitoring, audit, and compliance purposes. 5. Reinforce segregation of duties and approval requirements to ensure supervisory reviews are performed by an independent reviewer. Views of Responsible Officials Management agrees with the finding and will implement procedures to improve document retention, electronic record storage, supervisory review, and overall monitoring controls for the Foster Care and Adoption Assistance programs.