Response to Schedule of Findings for the Year Ended December 31, 2024.
2024-001 TANF Voucher Controls
The Administration of HONOR acknowledges the finding identified in the 2024 Financial Audit concerning the inadequacy regarding "TANF Voucher Controls". The following response outlines the steps the HONOR Administration, and Management will take to address these issues and prevent recurrence.
During the 2024 audit process, RBT identified the following Significant Deficiency:
"Per the Orange County DSS contract, monthly vouchers are to be submitted with bed counts for reimbursement of shelter services provided."
HONOR Executive Director, along with the assistance of the Administrative Team, conducted a thorough review to identify the root cause of this issue.
- Inadequate Verification Processes: As outlined in audit by RBT there is not an internal control, (check and balances) comparing bed-sign in sheets, rosters, and vouchers.
- Lack of consistency due to staff vacancy in the positions directly responsible for the successful and routine management and undertaking of the shelter census data.
In response to the audit findings, the Executive Director, with the assistance of the Administrative Team, implemented the following corrective measures:
-Ensure source documents are correct by providing comprehensive staff training: A training program will be initiated for all relevant staff, focusing on this regulatory required task. 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.
- 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 Shelter Manager 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 has created a billing cover sheet that the designated program administrator will complete when billing is submitted to the fiscal office. Signatures indicating approval for billing after a review of documentation are required. Billing will not be accepted without the form attached. (attached)
Forms will be distributed at the next scheduled Management Team Meeting. Explanation and training will be included.
-Periodic Reviews: The Executive Director will Chair, with the assistance of the Administrative Team, a regular review process to monitor TANF voucher controls ensuring ongoing compliance and addressing any trends proactively.
HONOR's Executive Director along with the Administration and Management teams take this audit finding 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 in bringing this matter to our attention.