Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Child Care Resource and Referral-Middlesex & Somerset
Assistance Listing Number: 93.596
Pass-Through Agency: New Jersey Department of Human Services Division of Family
Development
Pass-Through Number(s): UC23024
Award Period: October 1, 2022 through September 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Award and NJ OMB Circular 15-08 requires
compliance with the provisions of eligibility with respect to providing services for participants.
Condition: During our eligibility testing, one of 40 participant files reviewed showed that one
ineligible participant received child care services for a period of time.
Questioned costs: $3,618
Context: During our testing, it was noted that the Organization provided services to one participant
who did not meet the minimum 30 hours/ week employment requirement.
Cause: Although procedures were in place for review of documentation supporting eligibility, the
documentation was reviewed and approved incorrectly. The error was discovered by the
Organization’s quality control function but was not corrected in a timely manner.
Effect: The participant continued to receive child care services for a period of time when they were
not eligible.
Repeat Finding: N/A
Recommendation: We recommend the Organization enhance their training process with respect
to documentation review to ensure an adequate review process is in place to prevent errors with
respect to participant eligibility.
Views of responsible officials: CCCS has already alerted the DFD of the exception and
requested a recoupment of funds. We will re-train our staff to ensure the existing procedures and
documentation reviews are correctly followed.