Finding 519401 (2024-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-01-16
Audit: 338349
Organization: First Place for Youth (CA)
Auditor: Bpm LLP

AI Summary

  • Core Issue: Internal file audit reviews for youth eligibility were not consistently performed or completed on time.
  • Impacted Requirements: First Place for Youth must independently confirm eligibility for the THP-NMD program, which is currently compromised by inadequate review processes.
  • Recommended Follow-Up: Enhance training and oversight for the internal file audit review process to ensure timely compliance with eligibility requirements.

Finding Text

Item 2024-001 – Eligibility: Internal File Audit Review Awarding Agency: U.S. Department of Health and Human Services, Pass-through from CA Department of Social Services Federal Program: Transitional Housing Placement – Foster Care (THP-NMD) Federal Award Identification Number: 93.658 Grant Period: July 2023 to June 2024 Criteria: First Place for Youth’s THP-NMD program offers transitional housing to eligible youths through safe, affordable housing and intensive case management. Youths are placed with First Place for Youth by various counties, which perform an initial eligibility review. Various documents are collected to ensure eligibility, but First Place for Youth is still required to independently confirm eligibility. First Place for Youth’s current process is to perform a review of youths’ eligibility during the intake process and complete an internal file audit review to confirm all necessary paperwork is in place when admitting a youth into the program. Condition: During our testing over eligibility, we discovered that internal file audit reviews were either not performed or not performed on a timely basis for numerous youths selected for testing. Cause: First Place for Youth noted this issue is due to insufficient training and monitoring and increases in turnover rate within certain departments of the Organization in the current year. Effect: Although we did not find instances of eligibility non-compliance as documentation is being appropriately collected, the lack of timely review could lead to instances of eligibility non-compliance. Questioned Cost: None Context: Since our testing resulted in multiple instances of non-timely review, the condition appears to be a pervasive issue. Repeat Finding: No Recommendation: We recommend that First Place for Youth implement additional training and internal oversight over the youth internal file audit review process to ensure compliance with all eligibility requirements. Views of Responsible Official: First Place for Youth concurs with this finding and will evaluate process improvements and additional employee training to ensure the youth intake file audit review process is fully implemented and executed going forward.

Corrective Action Plan

Management agrees with the auditors’ recommendation and will evaluate process improvements and additional employee training to ensure the youth intake file audit review process is fully implemented and executed going forward. The organization has already begun to train staff with the Contracts and Compliance Manager attending quarterly Program Director Meetings to report out on file compliance status. In addition, in the first quarter of Fiscal Year 2025, the Director of Practice Development incorporated the training curriculum for program file management into onboarding for new staff. Moving forward, the Director of Development and Compliance Manager will provide specific trainings during the agency-wide Intake Specialist meeting and the Program Manager meeting. These trainings will take place before the end of the calendar year.

Categories

Subrecipient Monitoring Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1095843 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.658 Foster Care Title IV-E $11.34M
17.259 Wioa Youth Activities $152,336
14.231 Emergency Solutions Grant Program $135,806
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $118,781
14.881 Moving to Work Demonstration Program $5,565