Finding Text
2022-004 Federal Agency: U.S. Department of Social Services Federal Program Name: Title ? IV-E Adoption Assistance ALN: 93.659 Award Period: July 1, 2021 ? June 30, 2022 Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Prior Year Finding: No Criteria: Title IV-E of the Social Security Act (42 U.S.C ?670) authorizes the Adoption Assistance program. Subsidy payments are made to the adoptive parent(s) based on a child?s needs (i.e., development, cognitive, or emotional behavior) and the adoptive parent(s)? circumstances. Payments are issued in accordance with a written and binding adoption assistance agreement (AAA) when the below eligibility requirements are met. ? Child meets the categorical eligibility as an ?Applicable Child? or ?Non-Applicable Child.? o Applicable child - AAA was signed in federal fiscal year (FY) 2010 or later that met the age requirement; or who was in foster care for at least 60 consecutive months; or who has a sibling in the same adoptive placement that meets one of the above requirements. Also, the child must meet one of the below requirements. ? was in foster care when the adoption proceeds were initiated; or ? meets disability or medical requirements for the Supplemental Security Income (SSI) program; or ? was residing with a minor parent in foster care: or ? was eligible for adoption assistance in a previous adoption in which the adoptive parent died or parental rights were terminated. o Non-applicable ? AAA was signed prior to federal FY10 or a later year if the applicable requirements were not met and the child meets one of the below requirements: ? eligible for the Aid to Families with Dependent Children (AFDC) program; or ? eligible for SSI; or ? resides with a minor parent in foster care that is receiving Title IV-E foster care maintenance payments for themselves and the child. ? The child cannot or should not return home to his/her parents. ? The child has a special need (i.e., minority or medical condition), and it is reasonable to conclude that the child cannot be placed with adoptive parents without providing a subsidy. ? The agency made reasonable efforts to place the child without a subsidy or waive the requirement if not in the best interest of the child. ? The AAA was signed prior to the final decree of adoption. ? Criminal records checks were conducted for the prospective adoptive parent(s) and child abuse and neglect registry checks were conducted for the prospective adoptive parents and adult household members. Also, the subsidy payment cannot exceed the foster care maintenance payment the child would have received in foster care. Condition: A sample of 40 children that received Title IV-E adoption subsidies during FY2022 was tested for compliance with the above criteria and the observations were noted below. ? 40 out of 40 children - Met the eligibility requirements, had special needs that prevented them from being placed without a subsidy, and could not return home. ? 40 out of 40 children - RDSS made reasonable efforts to place the children without the subsidy or waived the requirement as it was not in the best interest of the child. ? 40 out of 40 children ? The adoption assistance agreements were signed prior to the final adoption decree, the authorized amounts were in line with the State?s rates, and payments were issued in accordance with the agreements. ? 9 out of 40 children ? Sufficient evidence of the completion of the required criminal background and child abuse and neglect registry checks for the adoptive parents and adult household members was not in the adoption case files. The home studies and report of investigations narrative indicated the required checks were completed for the adoptive parents and household members but did not identify when they occurred. Also, in some cases, it was not noted if the adoptive parents met the eligibility requirements for the criminal record checks. As such, the auditors were unable to confirm when the checks occurred, and supporting documentation was not provided prior to the completion of fieldwork. In addition, during the initial file review, documents such as court orders, negotiation documents, and annual affidavits were missing from some of the files. The Adoption Unit was ultimately able to retrieve and provide the missing items. However, an opportunity exists to improve the adoption case file documentation. Questioned Costs: None Cause: The home studies and background checks were conducted by child-placing agencies, DSS Resource Unit, or third parties. Standard documentation requirements regarding background checks were not in place. As such, there was an inconsistency in the information captured in the home studies and provided to support the completion of the criminal background and child abuse and neglect registry checks. The capture information ranged for the home study narratives to non-conviction letters. A quality control process was not in place to ensure that the required documentation was maintained in the adoption case files. Effect: The lack of a quality control process resulted in incomplete adoption case files, which may result in noncompliance with the adoption assistance requirements or prevent the Unit from demonstrating compliance. Also, the inconsistencies in the background check documentation reduce the Unit?s assurance and ability to demonstrate that the required checks were conducted. As such, this could result in kids being potentially placed in unsafe environments and the State or Federal government clawing back Title IV-E funds for non-compliance. Recommendation: We recommend that the Children, Families, and Adults (CFA) Deputy Director develop and implement a quality control process to ensure that the required documentation is maintained in the adoption case files. We recommend that the CFA Deputy Director develop and implement standard documentation requirements for documenting the completion of the background checks in the adoption case files. Views of Responsible Officials and Planned Corrective Action: The City agrees with this finding. See separate Corrective Action Plan related to this finding.