Finding 496646 (2023-003)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-09-12
Audit: 319438
Organization: Honor Ehg INC (NY)
Auditor: Rbt CPAS LLP

AI Summary

  • Core Issue: The Organization lacks a control to detect incorrect vouchers, leading to reliance on the County for accurate bed counts.
  • Impacted Requirements: Monthly vouchers must be submitted with accurate bed counts as per the Orange County DSS Contract.
  • Recommended Follow-Up: Implement a reconciliation process for bed summaries and vouchers to prevent billing errors.

Finding Text

2023 - 003 TANF Voucher Controls Assistance Listing Number: 93.558 Name of Program and Cluster: Temporary Assistance for Needy Families/ 477 Cluster Agency: U.S. Department of Health and Human Services passed through Orange County Department of Social Services Condition: The Organization does not have a detective control in place to determine incorrect vouchers. Criteria: Per the Orange County DSS Contract, monthly vouchers are to be submitted with bed counts for reimbursement of shelter services provided. Context: 2 of 3 vouchers selected for testing were submitted to the County and then subsequently corrected based on the County’s review of total nights billed. Cause: The bed summary counts, nightly sign in sheets and vouchers are not reconciled. Although the bed summaries are reviewed, the vouchers are not reviewed prior to submission or reconciled to the sign in sheets. Effect: The Organization is relying on the County to provide the appropriate bed counts and voucher amounts and frequently has to make adjustments to vouchers submitted for payment. Recommendation: RBT recommends that controls are reviewed and updated to include a reconciliation to the bed summaries, and a review of eligible participants billed in order to avoid billing errors. Auditee's Response: See corrective action plan.

Corrective Action Plan

2023-003 TANF Voucher Controls The Administration of HONOR acknowledges the finding identified in our 2023 Financial Audit concerning the inadequacies regarding ''TANF Voucher Controls". The following response outlines the steps the HONOR Administration, Management and Direct Support Team will take to address these issues and prevent recurrence. Corrective Actions Taken: -Create a Policy and Procedure by 9/30/2024. HONOR has identified verification forms and processes to ensure accurate data is recorded. -Staff Training: A comprehensive training program has been initiated for all relevant staff, focusing on verifications forms, admissions/discharges, and bed nights. Training requirements will ensure these policies are covered and understood. Staff will receive in-depth training on nightly bed sheets and data entry of client attendance in the EMR system, (NETSMART), to generate an accurate attendance roster. This in-service will take place by 10/15/2024. - Revamping Verification Procedures: HONOR has designated a position, Administrative Response Coordinator, to be responsible for verifying the nightly bed sheets and roster at the end of the month. Any discrepancies are reported to the Case Management Supervisor for verification. If changes are to be made, documentation will be made on the bed sheets and data entry will be corrected in NETSMART and roster reprinted. - HONOR will re-engage, when determined and or required, with designated team members of the Orange County Department of Social Services. Any possible disputes and or concerns regarding possible inaccuracies with TANF vouchers will be reviewed and documented by the Shelter Manager. -Periodic Reviews. The Quality Assurance/Compliance Mgr will conduct a regularly scheduled review process to monitor documentation, ensuring ongoing compliance and addressing any issues proactively. Monitoring and Follow-up: -To ensure the effectiveness of the corrective actions, HONOR administrative team will be conducting a quarterly review of internal audits, trends and data. HONOR's Executive Director along with the Administration and Management teams take this audit seriously and are committed to strengthening our internal controls to prevent future incidents. The steps outlined above will help us maintain compliance and ensure the proper use of resources. HONOR thanks RBT for their due diligence and bringing these matters to our attention.

Categories

Cash Management

Other Findings in this Audit

  • 496647 2023-002
    Significant Deficiency Repeat
  • 1073088 2023-003
    Significant Deficiency
  • 1073089 2023-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $2.83M
14.267 Continuum of Care Program $753,744
93.623 Basic Center Grant $222,500
10.558 Child and Adult Care Food Program $87,877
14.231 Emergency Solutions Grant Program $87,079
93.667 Social Services Block Grant $74,452
93.658 Foster Care_title IV-E $54,038
97.024 Emergency Food and Shelter National Board Program $22,000
14.239 Home Investment Partnerships Program $8,990