Finding 596903 (2022-005)

2022-005 Finding: Eligibility Federal Assistance Listing No. 93.575 Child Care and Development Block Grant 93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund (CCDF Cluster) Department of Health and Human Services, Passed-through Colorado Department of Human Services Award Number ? None Provided, Award Year 2022 Criteria: The CCDF Cluster allows States to design rules and regulations which Counties must follow when administering the program. The State Colorado Child Care Assistance Program (CCCAP) requirements are detailed in the Code of Colorado Regulations Department of Human Services Income Maintenance (Volume 3) 9 CCR 2503-9. Section 3.905.1- Low Income Child Care Eligibility within 9 CCR 2503-9 details the income requirements the County shall follow when determining eligibility income for the household. In addition, Section 3.911.1 details additional County Responsibilities for Colorado Works Child Care the county will act within five (5) business days of receipt of a referral from Colorado Works for new or ongoing child care. Finally, information provided to the County for the processing of benefits should be accurately input into State?s Child Care Automated Tracking System (CHATS) and agree to supporting documentation include in the case file. Condition: We noted the following issues in the 40 cases tested: (1) Four instances in which income was incorrectly calculated based on information maintained in case file. (2) One instance in which there was inadequate documentation to support eligibility determination within the case file. (3) One instance in which the Colorado Works Referral form was not processed timely. (4) Two instances in which the County?s eligibility authorization notes for the period selected did not agree with CHATS. (5) Two instances in which there were inconsistencies between case file and State CHATS system. Questioned Costs: Questioned costs were unable to be determined. Context: We tested 40 individuals who received CCCAP assistance for the year ended December 31, 2022 and noted the issues described above. The tested population covered benefits issued of $286,511. The total population included benefits issued of approximately $10.9 million to just over 1,700 individuals. A non-statistical sampling methodology was used to select the sample. Effect: The State?s CHATS system may be determining eligibility and allocating benefits based on incorrect, incomplete, or outdated data. Cause: Case reviews did not identify and resolve issues noted above in the conditions section. Identification as a Repeat Finding: 2021-002 and 2020-002. Recommendation: We recommend that the County continue to strengthen the internal controls surrounding the eligibility process specifically continuing the use and monitoring of case reviews to help identify potential areas for additional training. Views of Responsible Officials: We agree with the finding. See separate report for planned corrective actions.