Department of Protective and Regulatory Services
1994 Statewide Financial and Compliance Audit
Report Number 95-099
Overall Conclusion
Our audits continue to indicate that the Department is not complying with all federal requirements for two of its largest federal programs. Expenditures for these programs total $100 million and represent 45 percent of total federal funds expended by the Department in fiscal year 1994. Payments have not been limited to appropriately documented clients and costs for the Child Welfare Services program. This resulted in material noncompliance with federal requirements. Discrepancies continue to exist in Foster Care eligibility data between automated systems. In addition, the Department has overcharged federal funds due to its method of allocating Foster Care income credits. Also, noncompliance with cash management requirements was noted for the Foster Care program.
Key Findings
The Department is not limiting payments to appropriately documented clients and costs for the Child Welfare Services Program. This has resulted in material noncompliance with federal requirements. This issue has been identified in prior audits.
The Department's automated systems continue to contain discrepancies in Foster Care information, which result in incorrect payments and noncompliance with federal requirements. This issue has been noted in prior audits.
Foster Care income credits have not been allocated in accordance with federal requirements, resulting in questioned costs of $328,847.75.
The Department does not have sufficient cash management monitoring procedures in place to minimize federal cash requests and prevent holding excess funds for the Foster Care program.
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