HORIZONS FOR HOMELESS CHILDREN

2023-001 - Eligibility Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.596 and 93.575 Child Care Development Fund (CCDF) Cluster Condition: As part of our testing of Horizons for Homeless Children’s (the Organization) internal control over compliance for eligibility, we noted that the Organization did not follow their internal controls regarding review and approval of the Child Care Subsidy Application and Fee Agreement for one out of twenty-five applications reviewed. Criteria: 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Cause: The Organization did not properly follow its internal controls. Effect: The Child Care Subsidy Application and Fee Agreement was not properly reviewed and approved. Context: One out of twenty-five applications sampled. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure that the Organization’s internal controls in place are properly followed. Management Response: Management agrees with the finding and will implement additional review procedures during fiscal year 2024 to ensure the Child Care Subsidy Application and Fee Agreements are properly reviewed and approved.

U.S. Department of Health and Human Services 2019-001 Child Care Development Fund (CCDF) Cluster - CFDA No. 93.596 and 93.575 Condition During our testing of allowable costs associated with payroll charges, we noted that Horizons for Homeless Children?s (the Agency) policies and procedures require approval of each employee?s wages or changes to wages through personnel change forms. Our review of 31 payroll transactions to the program noted that for 3 payroll transactions tested, there were no personnel change forms to support the approved wages for the pay period reviewed. Criteria In accordance with the Uniform Guidance, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must comply with the established accounting policies and practices of the non-Federal entity?s written policy. Cause This appears to be due to turnover within the Agency?s human resource department. Effect The Agency is not following its policies and procedures with respect documenting changes in employee wages. Whether Sampling was Statistically Valid The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs None Recommendation We recommend that the Agency follow its policies and procedures for documenting changes in wages to ensure that changes in wages are approved and supported by a personnel change form in accordance with the Agency?s policies and procedures. Views of Responsible Officials and Planned Corrective Actions During fiscal year 2020, the Agency implemented an electronic human resources management system that will convert the Agency?s manual documents and processes to electronic. In addition, management is in the process of updating its policies and procures manual to incorporate procedures relating to the new electronic human resource management system.

2019-002 Child Care Development Fund (CCDF) Cluster - CFDA No. 93.596 and 93.575 Condition During our testing of eligibility, we noted the Agency reviews and approves both the signed Commonwealth of Massachusetts Department of Early Education and Care (EEC) application and fee agreement and attendance notification agreement. Our review of 53 participant files noted that there was 10 files that did not contain a signed application and fee agreement and 6 files that did not contain an attendance notification agreement. Criteria The Commonwealth of Massachusetts EEC Financial Assistance Procedures Manual for Subsidy Administrators requires both the application and fee agreement and the attendance notification agreement to be signed prior to a child starting in subsidized care. Cause The Agency did follow its policies and procedures to obtain and review the signed agreements. Effect The Agency is not following its policies and procedures with respect to reviewing the signed agreements and is not in compliance with EEC requirements. Whether Sampling was Statistically Valid The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs None Recommendation We recommend that the Agency include a document review checklist within the Agency?s policies and procedures to ensure all required documents are contained within the participant file. In addition, the Agency should ensure that they follow EEC?s financial assistance procedures manual requirements to obtain and review the signed agreements required by EEC prior to providing subsidized care to children. Views of Responsible Officials and Planned Corrective Actions During fiscal year 2020, management implemented a participant file review checklist to ensure all documents are contained within the participant files. In addition, management continues to work with parents to ensure all required documentation is obtained and completed prior to receiving services and continues to inform employees of the importance of the requirements of the program.