Finding Text
2022-010 Child Care and Development Block Grant (ALN 93.575, 92.596), Federal Department of Health and Human Services Passed through the California Department of Equation Noncompliance and material weakness in internal control over Federal compliance Code 40000, 50000 Compliance Requirement Affected: Special Tests and Provisions Criteria Program participation requires that Lead Agencies shall recover child care payments that are the result of fraud. These payments shall be recovered from the party responsible for committing the fraud (45 CFR section 98.60). Auditors are required to review the Lead Agency?s procedures for identifying and recovering payments resulting from fraud, including the Lead Agency?s definition of fraudulent childcare payments. Condition Although the District informed us that it has not identified any payments that are the result of fraud, we also were not provided the District?s procedures for identifying and recovering payments resulting from fraud, or the District?s definition of fraudulent childcare payments. Cause Personnel may have misunderstood the requirement to formalize applicable procedures and formally define ?fraudulent childcare payments.? Effect The District was unable to support that it complied with the terms and conditions of Federal grant agreements. Questioned Costs No questioned costs are associated with this finding. Context Although no fraudulent payments are known to have occurred, the requirement is that all administering agencies develop procedures and definitions for identifying them. Recommendation We recommend that personnel responsible for program administration consult with legal counsel to formally develop procedures for identifying and recovering payments resulting from fraud, including the Lead Agency?s definition of fraudulent childcare payments. Views of Responsible Official The District has not prepared a response as of the date of this report. Identification as a Repeat Finding This finding was not reported in the previous year's audit.