Finding 505492 (2024-002)

-
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2024-11-13

AI Summary

  • Core Issue: In our review, we found unsupported disbursements and instances of exceeding clothing allowances for foster care, including unallowed items like toys and gift cards.
  • Impacted Requirements: All disbursements must have proper documentation and adhere to program guidelines, which were not followed in several cases.
  • Recommended Follow-Up: Implement stronger oversight for clothing allowances and ensure receipts for gift card purchases are collected and tracked to verify appropriate use.

Finding Text

Condition: During our testing of 25 disbursements for the program, we noted one disbursement for which an invoice or receipt from a third party vendor could not be provided. The only support provided was the excel allocation to various areas. We also noted 2 instances where children in foster care received more than the $150 clothing allowance, including the purchase of $200 gift cards in addition to other items in both instances. In the final issue in our sample of 25, we noted toys included with a clothing purchase. Toys should not be included in clothing allowances per grant guidelines. Our testing noted three instances where gift cards were not well tracked to ensure they were properly given to foster families and subsequently used for clothing. Criteria: All disbursements should be properly supported by adequate documentation, made within program established guidelines. Cause: Documented allowance for clothing was not followed in 2 instances tested. Support was not maintained for one disbursement tested. Unallowed items were purchased in one disbursement tested. Effect: Disbursements that weren’t allowable under the program were made in several instances because amounts exceeded allowed thresholds or for an unallowed item. Additionally, an unsupported item could not be verified for allowability due to lack of details as to what was purchased. Questioned Cost Amount: $2,777.78 from the sample tested and projected to be approximately $94,000 of the total expenditures. Perspective Information: 5 of 25 items selected for testing Recommendation: We recommend that stronger reviews and oversight is put in place to make sure that allowances for clothing are followed for all children in foster care. Additionally, if the program is going to continue use of gift cards as a means of providing funds for clothing purchases, then receipts for the use of those funds should be received to verify they were spent appropriately and controls over unspent gift cards must be put in place. Views of Responsible Officials and Planned Corrective Action: enCircle has communicated to grant management personnel the requirements regarding clothing allowances, especially when using gift cards. Going forward enCircle will also require that all gift cards can be uniquely identified with a specific child and that also foster parents will submit receipts to enCircle regarding gift card purchases until the card is fully spent (if the card is not fully spent the foster parent will be liable to return it or the cash value remaining). enCircle will develop and implement an internal auditing procedure and cycle to regularly evaluate a sample of transactions throughout the year to ensure documentation and use is appropriate for all federal funds.

Categories

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.676 Unaccompanied Children Program $2.06M