Finding Text
Type of Finding: Material Weakness in Internal Control over Compliance of Major Programs and Noncompliance
within the Major Programs
•Criteria: Caritas Family Solutions is responsible for implementing and maintaining an internal control
system around eligibility of participants in the program and ensuring that documentation is maintained
and readily accessible to prove participant eligibility.
Condition: The audit identified that there was no documentation available in the file provided for four
participants to indicate their eligibility under the major program and that an internal control system was
in place.
•Cause: The absence of eligibility documentation may result from a failure to establish proper recordkeeping
procedures, oversight, or a lack of documentation requirements.
•Effect: Failing to maintain eligibility documentation for participants raises concerns about the
Organization’s compliance with the eligibility requirement and may jeopardize the integrity of grant
management.
•Recommendation: The Organization should promptly establish and enforce procedures and oversight to
ensure that eligibility documentation for participants is consistently maintained, documented, and
readily accessible.
•Responsible Party: Gary Huelsmann, Chief Executive Officer
•Management Response and Corrective Action Plan: This deficiency was also discovered during our
internal investigation, and Caritas Family Solutions has implemented a new process to ensure that
internal controls are in place.
A SCSEP Employment Specialist will meet with participants to complete the recertification
application and gather the necessary documentation.
The recertification application and documentation will be forwarded to the PM for review and
approval.
The PM will review the form, sign, and date it after confirming that all information is accurate and
complete.
If there are inaccuracies and/or missing information, the form will be returned to the ES who will
follow up with the host site to obtain the missing information or correct the inaccuracy.
Steps 1 and 2 will be repeated.
The QI department verify eligibility and recertification documents are within the file during their
quarterly reviews to determine if processes are being followed.
•Anticipated Completion Date: Implemented in September 2023, but the process will be ongoing while
the program is funded.