EIN: 222697033
UEI: F82FANL8NZ93
Data as of August 21, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 4, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by February 4, 2027 (166 days from today).
What is a management decision? →During our testing of cash management invoices, it was noted that invoices were not being approved before submission. Context: It was noted through testing of cash management invoices that all invoices tested did not have proper approvals before submission. Cause: Lack of internal control processes. Effect: Lack of review and approval of invoices before submission can lead to misstatements in the financial statements and incorrect use of federal awards. Repeat Finding: Yes Recommendation: We recommend that management ensure that all invoices are reviewed and approved before submission. Views of Responsible Officials: Please refer to NET Treatment Services, Inc., dba: NET Community Care’s Corrective Action Plan.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Foster Care Title IV-E & Stephanie Tubbs Jones Child Welfare Services Program Assistance Listing Numbers: 93.658 & 93.645 Federal Award Identification Number and Year: 2220016-02 (2024) & 2220017-02 (2024) Award Period: July 1, 2023 through June 30, 2024 Type of Finding: Material Weakness in Internal Control over Compliance- Cash Management Criteria: Accurate invoices need to be prepared using actual expenses incurred, reviewed, and submitted to funders. This process is vital in order to accurately state the Organization's revenue internal control to ensure there are no material misstatements contained within the financial statements. Condition: During our testing of cash management invoices, it was noted that invoices were not being approved before submission. Context: It was noted through testing of cash management invoices that all invoices tested did not have proper approvals before submission. Cause: Lack of internal control processes. Effect: Lack of review and approval of invoices before submission can lead to misstatements in the financial statements and incorrect use of federal awards. Repeat Finding: Yes Recommendation: We recommend that management ensure that all invoices are reviewed and approved before submission. Views of Responsible Officials: Please refer to NET Treatment Services, Inc., dba: NET Community Care’s Corrective Action Plan.
Type of Finding: Material Weakness in Internal Controls over Compliance- Cash Management Recommendation: We recommend that management ensure that all invoices are reviewed and approved before submission. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action taken in response to finding: Management has implemented a policy which requires each drawdown to be reviewed and to be based only on expenses incurred for the period, prohibiting the use of a straight-line calculation to draw down funds. Invoices are also approved by the CFO or CEO prior to submission. Name of the contact person responsible for corrective action: Regan Kelly, CEO of Net Treatment Services, Inc. dba: NET Community Care (215) 451-7000 Planned completion date for corrective action plan: December 31, 2026.
2023-002
FAC accepted this audit on December 12, 2025 — management decision was due June 12, 2026.
During our testing of cash management invoices, it was noted that invoices were not being approved before submission. Also, it was noted that the invoices did not align with actual expenses incurred, leading to an overbilling at year end. Questioned Costs: $148,466 Context: It was noting through testing of cash management invoices that all 8 invoices tested did not have proper approvals noted before submission and that the invoices did not align with the actual expenses incurred. Cause: Lack of internal control process. Effect: It was noted that in total $401,621 was overbilled to the pass-through funder, representing an allocated amount of $148,466 in federal funds. The total amount of $401,621 needed to be deferred as of June 30, 2023. Repeat Finding: No Recommendation: We recommend that management ensure that all invoices are based on actual expenses incurred and that there is a review and approval process of invoices before submission. Views of Responsible Officials: Please refer to NET Treatment Services, Inc., dba: NET Community Care’s Corrective Action Plan.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Foster Care Title IV-E & Stephanie Tubbs Jones Child Welfare Services Program Assistance Listing Numbers: 93.658 & 93.645 Federal Award Identification Number and Year: 21-20016 (2023) & 21-20017 (2023) Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Compliance- Cash Management Criteria: Accurate invoices need to be prepared using actual expenses incurred, reviewed, and submitted to funders. This process is vital in order to accurately state the Organization's revenue internal control to ensure there are no material misstatements contained within the financial statements. Condition: During our testing of cash management invoices, it was noted that invoices were not being approved before submission. Also, it was noted that the invoices did not align with actual expenses incurred, leading to an overbilling at year end. Questioned Costs: $148,466 Context: It was noting through testing of cash management invoices that all 8 invoices tested did not have proper approvals noted before submission and that the invoices did not align with the actual expenses incurred. Cause: Lack of internal control process. Effect: It was noted that in total $401,621 was overbilled to the pass-through funder, representing an allocated amount of $148,466 in federal funds. The total amount of $401,621 needed to be deferred as of June 30, 2023. Repeat Finding: No Recommendation: We recommend that management ensure that all invoices are based on actual expenses incurred and that there is a review and approval process of invoices before submission. Views of Responsible Officials: Please refer to NET Treatment Services, Inc., dba: NET Community Care’s Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Foster Care Title IV-E & Stephanie Tubbs Jones Child Welfare Services Program Assistance Listing Numbers: 93.658 & 93.645 Federal Award Identification Number and Year: 21-20016 (2023) & 21-20017 (2023) Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Cash Management Recommendation: We recommend that management ensure that all invoices are based on actual expenses incurred and that there is a review an approval process of invoices before submission. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Aciton take in response to finding: Management has implemented a policy which requires each invoice to be based only on actual expenses incurred for the period and prohibits the use of a straight-line calculation to draw down funds. Invoices are also approved by the CFO prior to submission for reimbursement. Name of contact person responsible for corrective action: Regan Kelly, CEO of NorthEast Treatment Cetners, Inc. (215) 451-7000 Planned completion date for corrective action plan: January 31, 2024
FAC accepted this audit on January 14, 2020 — management decision was due July 14, 2020.
In our eligibility test, we requested a sample of 60 foster care children who are being managed by the Community Umbrella Agencies 1 and 7. As part of our testing, we review each child's file looking for certain documents which are required to be included in the file as per the requirements of both the City of Philadelphia, Department of Human Services and the Commonwealth of Pennsylvania, Department of Human Services. Such forms are essential and help to ensure that participants are eligible for, receiving, and reporting the progress of those services provided. The results from this review indicate documentation was either missing, appeared to have gaps of time between submissions or were not prepared timely. These included the; (a) 2 CUA Safety Assessments; (b) 3 CUA Safety Plans; (c) 2 immunizations, (d)1 Authorization to Release Information (e) 1 Life Skills Assessments/Ages and Stages Questionnaire; (f) 1 School Report Card, (g) 5 Photos (h) 7 Six month Single Case Plan Update Forms, and (i) 1 Board Extension. Questioned Costs: None Cause: During this fiscal year the responsibilties of CUA case managers have continued to evolve within the City of Philadelphia Department of Human Services (DHS), Community Umbrella Agencies (CUA's) throughout the City of Philadelphia. The requirement for a case manager to manage a total of ten cases was increased to thirteen by DHS in FY16, but reduced back to ten with additional funding from DHS. Although DHS had made the effort to reduce case loads of CUA case managers, a priority, the environment continues to be challenging and ever-changing. It's important to note that a "case" is defined as a family, not a single child. Families have an average of 2 to 3 children each. Even with the additional funds available for the hiring of case managers, caseloads are continuing to be between 10 and 14 cases per case manager. This could represent a single case manager handling upward of 40-50 children at one time. In reality with the challenges in the effectively onboarding staff, and the continued turnover, most case managers continue to be handling more cases than mandated by DHS. In addition, we stress that the compliance goal of safety "visitation", the face to face contact where a child is seen by a case manager to assure safety, is as the top priority. As a result of this crticial priority, there has been less emphasis on the management of the case files which has caused the case files to be missing the necessary documentation as described in the DHS case file guidelines. An additional barrier to compliance is the requirement that CUAs must use the DHS electronic case management system which does not give CUAs the ability to track and monitor case management compliance.Both the lack of proper documentation and the timeliness of the completion of this documentation could lead to children either receiving inappropriate services or missing the required service described in the child's individualized service plan. Additionally, this could lead to issues of noncompliance and/or additional unwanted liabilities in the welfare of a child had been comprised. Recommendation: We recommend that management continue to develop policies and procedures in order to properly include all pertinent documentation within each client file as required by the City of Philadelphia, Department of Human Services. In addition, we recommend that program leadership and/or the quality control department performs periodic audits of the client files to ensure all required documentation is included. Viewed of Responsible Officials and Planned Corrective Actions: Please refer NET Treatment Services, Inc. dba NET Community Care?s Corrective Action Plan
Show full finding ▾Hide full finding ▴Criteria: Proper and timely documentation should be found in all participant files to ensure that they are eligible for the services provided. Condition: In our eligibility test, we requested a sample of 60 foster care children who are being managed by the Community Umbrella Agencies 1 and 7. As part of our testing, we review each child's file looking for certain documents which are required to be included in the file as per the requirements of both the City of Philadelphia, Department of Human Services and the Commonwealth of Pennsylvania, Department of Human Services. Such forms are essential and help to ensure that participants are eligible for, receiving, and reporting the progress of those services provided. The results from this review indicate documentation was either missing, appeared to have gaps of time between submissions or were not prepared timely. These included the; (a) 2 CUA Safety Assessments; (b) 3 CUA Safety Plans; (c) 2 immunizations, (d)1 Authorization to Release Information (e) 1 Life Skills Assessments/Ages and Stages Questionnaire; (f) 1 School Report Card, (g) 5 Photos (h) 7 Six month Single Case Plan Update Forms, and (i) 1 Board Extension. Questioned Costs: None Cause: During this fiscal year the responsibilties of CUA case managers have continued to evolve within the City of Philadelphia Department of Human Services (DHS), Community Umbrella Agencies (CUA's) throughout the City of Philadelphia. The requirement for a case manager to manage a total of ten cases was increased to thirteen by DHS in FY16, but reduced back to ten with additional funding from DHS. Although DHS had made the effort to reduce case loads of CUA case managers, a priority, the environment continues to be challenging and ever-changing. It's important to note that a "case" is defined as a family, not a single child. Families have an average of 2 to 3 children each. Even with the additional funds available for the hiring of case managers, caseloads are continuing to be between 10 and 14 cases per case manager. This could represent a single case manager handling upward of 40-50 children at one time. In reality with the challenges in the effectively onboarding staff, and the continued turnover, most case managers continue to be handling more cases than mandated by DHS. In addition, we stress that the compliance goal of safety "visitation", the face to face contact where a child is seen by a case manager to assure safety, is as the top priority. As a result of this crticial priority, there has been less emphasis on the management of the case files which has caused the case files to be missing the necessary documentation as described in the DHS case file guidelines. An additional barrier to compliance is the requirement that CUAs must use the DHS electronic case management system which does not give CUAs the ability to track and monitor case management compliance.Both the lack of proper documentation and the timeliness of the completion of this documentation could lead to children either receiving inappropriate services or missing the required service described in the child's individualized service plan. Additionally, this could lead to issues of noncompliance and/or additional unwanted liabilities in the welfare of a child had been comprised. Recommendation: We recommend that management continue to develop policies and procedures in order to properly include all pertinent documentation within each client file as required by the City of Philadelphia, Department of Human Services. In addition, we recommend that program leadership and/or the quality control department performs periodic audits of the client files to ensure all required documentation is included. Viewed of Responsible Officials and Planned Corrective Actions: Please refer NET Treatment Services, Inc. dba NET Community Care?s Corrective Action Plan
U.S. Department of Health and Human Services and City of Philadelphia, Department of Human Services NET Treatment Services, Inc. dba Net Community Care respectfully submits the following corrective action plan for the year ended June 30, 2019. Audit period: Fiscal year June 30, 2019 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Health and Human Services 2019-001 Stephanie Tubbs Jones Child Welfare Services Program - Community Umbrella Agencies 1 and 7? CFDA No. 93.645 Foster Care Title IV-E- Community Umbrella Agencies 1 and 7? CFDA No. 93.658 Recommendation: We recommend that management continue to develop policies and procedures in order to properly include all pertinent documentation within each client file as required by the City of Philadelphia, Department of Human Services. In addition, we recommend that program leadership and/or the quality control department performs periodic audits of the client files to ensure all required documentation is included. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action taken in response to finding: DHS created and implemented a "scorecard" system that evaluates CUA performance across eight areas of functioning. They are using a five-point scale with three points being average or a "C". The baseline or initial "scorecard" looked retrospectively at these areas of functioning for fiscal year 2016/17. Seven out of ten regions scored two bells or less (a "D") including NET. This created the "baseline" score for all CUA's against which CUAs will be measured moving forward. For fiscal year 2019, both of our CUAs received 4 bells and out of the 10 CUAs, were ranked 2nd and 3rd by DHS. DHS continues to provide more frequent and more comprehensive data reports. Our internal data efforts have been to identify where we need to strengthen our internal tracking capabilities focusing on areas where DHS still does not provide adequate data. We have been using the baseline scorecard to identify priorities for data monitoring and other improvements. We continue to review and modify roles and responsibilities of "support" staff, team members who do not carry cases (wellbeing specialists, outcome specialists, case aids). We continue to clarify, refine, or develop policies and procedures where needed, especially those that mirrored changes in roles and functions. We continue to develop "tip sheets" to aid staff and supervisors in managing multiple complex case work issues. Since the last audit report, DHS data shows notable improvements against the prior fiscal year and CUA Scorecard baseline. We rose from a level three ("C") in both CUA's to a level four in CUA 7 ("B? and ranked 2nd out of the 10 CUAs) and a level four in CUA1 ("B" and ranked 2nd out of the 10 CUAs). We will closely monitor progress and refine systems as needed. ? In addition, we?ve strengthened our capabilities of monitoring case files for compliance by 1) ensuring that there is a wellbeing specialist assigned per case-management division who now is responsible for monthly, continuous audits of all client files in their respective divisions. In January 2019, we completed the process of moving the wellbeing unit under the quality assurance department, who will oversee these continuous audits. ? We?ve also put systems in place in which our provider records staff proactively audit files continuously to ensure that all records required for licensing (3700 and 3800 regulation children) and inspections are continuously monitored and proactively updated. ? We?ve created a database that tracks compliance of all assessments based on the aforementioned DHS scorecard. This database is a complimentary tool that is coupled with monthly staff wide data reviews and presentations designed to promote transparency and ownership. This is the first iteration of this database, the second iteration will include compliance with medical, dental and behavioral health records. This began in January 2019. ? Timeliness Spreadsheets ? Although we receive data from DHS, we have created a database based off the trackers, we learned that the database and data ticklers received by the city only help us monitor general existence. To that end, we?ve 1) infused the use of spreadsheets that track timeliness of supervisory approval of documents 2) Made unambiguous that supervision with case-managers must be weekly, without the option of bi-weekly for some 3) supervisors are not permitted to leave office on Friday or end of work week with documents pending approval inside the electronic case-management system (ECMS) or DHS Connect and 4) the timeliness spreadsheets must be submitted to the case management director the last week of every month, in which they will use as a supervision guide the first supervision of every month. ? We?ve revised the scope of work for our aftercare staff which outlines a clear entry point with regard to services that begins in some cases up to 90 days prior to actual discharge. The purpose of this is to help the family prepare for safe case closure without delay, this includes collecting all collateral documentation and ensuring it is filed. Two of the primary areas of focus for case closing preparation in this role is the existence of client photos and education records. Name of the contact person responsible for corrective action: Chris Waiters, Executive Director of NET Treatment Services (215) 451-7000 Planned completion date for corrective action plan: June 30, 2020
2018-001
FAC accepted this audit on January 17, 2019 — management decision was due July 17, 2019.
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2017-001
FAC accepted this audit on March 25, 2018 — management decision was due September 25, 2018.
GSA_MIGRATION
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2016-001
FAC accepted this audit on March 30, 2017 — management decision was due September 30, 2017.
GSA_MIGRATION
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