Four Oaks Family and Children's Services

Noncompliance/Material Weakness: Auditing Finding 2024-002 – Late Audit Reporting Identification of the federal programs: All federal funds included on the Schedule of Expenditures of Federal Awards Condition: The Organization did not complete and submit their audit for the year ended June 30, 2024 to the federal clearing house until after the March 31, 2025 deadline. Criteria: Under 45 CFR Part 75.512, the Uniform Guidance requires that audits are submitted by the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Cause: Delays stemming from limitations on staffing and availability of information pertaining to the schedule of federal expenditures required audit procedures and ultimate completion date to extend beyond the regulatory deadline. Effect or potential effect: The late filing could potentially impact future funding from government agencies. Questioned costs: None Context: The June 30, 2024 single audit reporting package was filed late with the Federal Audit Clearinghouse. Recommendation: We recommend management implement processes and controls that will ensure future audits are completed and submitted timely. View of responsible officials and planned corrective actions: Management agrees with the finding. See attached letter.

Finding 2023-002—Approval of Costs Identification of the federal program: Assistance Listing Number 93.558 Temporary Assistance for Needy Families – 477 Cluster Condition: The Organization incurred allowable costs including benefit allocations and purchase of supplies in which there was no formal approval of the cost. Criteria: The Code of Federal Regulations (2 CFR 200.303(a)) requires that each non-Federal entity must establish and maintain effective internal control 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. Context: The Organization did not have formal approval of an allocated or incurred costs for 10 of the 60 items selected for testing. Cause: The Organization’s processes and controls established for review and approval of expenses incurred did not provide evidence of approval of the cost due to limited number of individuals within the Organization. Effect or potential effect: Noncompliance with federal regulations. Questioned costs: None Identification as a repeat finding, if applicable: No. Recommendation: We recommend management evaluate procedures in place for ensuring approval of allocated costs. Views of responsible officials and planned corrective actions: Management agrees with the finding. See attached letter.

Finding 2023-003—Approval of Costs Identification of the federal program: Assistance Listing Number 93.958 Block Grants for Community Mental Health Services Condition: The Organization incurred allowable costs including benefit allocations and purchase of supplies in which there was no formal approval of the cost. Criteria: The Code of Federal Regulations (2 CFR 200.303(a)) requires that each non-Federal entity must establish and maintain effective internal control 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. Context: The Organization did not have formal approval of an allocated or incurred costs for 6 of the 60 items selected for testing. Cause: The Organization’s processes and controls established for review and approval of expenses incurred did not provide evidence of approval of the cost due to limited number of individuals within the Organization. Effect or potential effect: Noncompliance with federal regulations. Questioned costs: None Identification as a repeat finding, if applicable: No. Recommendation: We recommend management evaluate procedures in place for ensuring approval of allocated costs. Views of responsible officials and planned corrective actions: Management agrees with the finding. See attached letter.

Finding 2023-004—Late Audit Reporting Identification of the federal program: All federal funds included on the Schedule of Expenditures of Federal Awards Criteria: Under 45 CFR Part 75.512, the Uniform Guidance requires that audits are submitted by the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Condition: The Organization did not complete and submit their audit for the year ended June 30, 2023 to the federal clearing house until after the March 31, 2024 deadline. Cause: Delays stemming from limitations on staffing and availability of information pertaining to the schedule of federal expenditures required audit procedures and ultimate completion date to extend beyond the regulatory deadline. Effect or potential effect: The late filing could potentially impact future funding from government agencies. Questioned Costs: None Context: The June 30, 2023 single audit reporting package was filed late with the Federal Audit Clearinghouse. Identification as a repeat finding, if applicable: No. Recommendation: We recommend management implement processes and controls that will ensure future audits are completed and submitted timely. Views of responsible officials and planned corrective actions: Management agrees with the finding. See attached letter.

2022-001 U.S. Department of Health and Human Services Foster Care-Title IV-E and Adoption Assistance-Title IV-E (Federal Assistance Listing Number 93.658 and 93.659) Federal Award Year: 2021-2022 Prior year finding: N/A Finding: There were two individuals that did not have a service planning conference within five business days of the individual admission. Criteria: Per the contract, a service planning conference needs to be completed within five business days of the individual admission. Condition: There needs to be a service planning conference for each individual within five business days of admission. Cause: No review was completed to ensure the criteria was met. Prevalence: In two of the 25 selections, the planning conference was not completed within five business days of admission. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring the planning conferences are done timely. Views of responsible officials: Management agrees with the finding. Please see corrective action plan.

There were two individuals that did not have a service planning conference within five business days of the individual admission.

2022-002 U.S. Department of Health and Human Services Foster Care-Title IV-E and Adoption Assistance-Title IV-E (Federal Assistance Listing Number 93.658 and 93.659) Federal Award Year: 2021-2022 Prior year finding: 2021-003 Finding: There are allowable costs such as a benefit allocation and supplies in which there was no formal approval of the cost. Criteria: Upon allocating various cost or supplies, the Organization should have a control in place to approve the cost. Condition: The Organization should have controls in place in which allowable costs in each federal program be formally approved. Cause: Limited number of personnel at the Organization. Prevalence: Of the twenty five items selected in our sample there was no formal approval of an allocated cost for two of our selections. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring approval of allocated costs. Views of responsible officials: Management agrees with the finding. Please see corrective action plan.

There are allowable costs such as a benefit allocation and supplies in which there was no formal approval of the cost.

2022-003 U.S. Department of Health and Human Services Child Care and Development Block (Federal Assistance Listing Number 93.575) Federal Award Year: 2021-2022 Prior year finding: NA Finding: There was no supervisor approval of neither hours worked nor original hourly rate. Criteria: The Organization should have controls in place to approve allowable payroll costs allocated to the federal program. Condition: The Organization should have controls in place in which allowable costs in each federal program be formally approved. Cause: Limited number of personnel at the Organization. Prevalence: Of the 25 items selected in our sample there was no formal approval of an allocated cost for eight of our selections. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring approval of allocated costs. Views of responsible officials: Management agrees with the finding. Please see corrective action plan.

There was no supervisor approval of neither hours worked nor original hourly rate.

2021-002 Temporary Assistance for Needy Families (Federal Assistance Listing Number 93.558) Federal Award Year: 2020-2021 Prior year finding: 2020-001 Finding: Monthly case progress reports for the Family-Centered Services Contract were not submitted to the State of Iowa (State) timely. Condition: The monthly case progress reports need to be submitted to the State based on agreement. Criteria: Per the Family-Centered Services Contract, case progress reports for individuals are required to be reported within five business days of the Agency referral each month to the State. Cause: No review was in place to verify reports were submitted to the State. Prevalence: Monthly case progress reports were not submitted to the State nine times in our sample selection on a timely basis. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring submission of monthly reporting. Views of responsible officials: Management agrees with the finding. Please see corrective action plan.

2021-003 Temporary Assistance for Needy Families (Federal Assistance Listing Number 93.558) Foster Care (Federal Assistance Listing Number 93.658) Federal Award Year: 2020-2021 Prior year finding: N/A Finding: There are allowable costs such as allocation of maintenance, lease expense, food service, deprecation and supplies in which there was no formal approval of the cost. Condition: The Organization should have controls in place in which allowable costs in each federal program be formally approved. Criteria: Upon allocating various costs the Organization should have a control in place to approve the cost. Cause: Limited number of personnel at the Organization. Prevalence: Of the items selected in our sample there was no formal approval of an allocated cost. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring approval of allocated costs. Views of responsible officials: Management agrees with the finding. Please see corrective action plan.

2021-004 Temporary Assistance for Needy Families (Federal Assistance Listing Number 93.558) Federal Award Year: 2020-2021 Prior year finding: N/A Finding: In testing Cornerstone the Family Development and Self Sufficiency (FaDSS) form was not submitted within three months. Condition: The FaDSS form is be submitted within three months. Criteria: For each individual the FaDSS form is required to be submitted within three months. Cause: No review was in place to verify the accuracy of the FaDSS form being submitted. Prevalence: In three cases the FaDSS form was not submitted timely. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring timely filings. Views of responsible officials: Management agrees with the finding. Please see corrective action plan.

2021-005 Temporary Assistance for Needy Families (Federal Assistance Listing Number 93.558) Federal Award Year: 2020-2021 Prior year finding: N/A Finding: The monthly funding request and expenditure report was not filed within 10 business days of month-end. Condition: The monthly funding request and expenditure report needs to be filed within 10 business days of month-end. Criteria: On a monthly basis the funding request and expenditure report needs to be filed. Cause: No review was in place to verify the accuracy of the filing. Prevalence: In three out of four cases the monthly funding request and expenditure report was not filed. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring timely filings. Views of responsible officials: Management agrees with the finding. Please see corrective action plan.

2021-006 Temporary Assistance for Needy Families (CFDA 93.558) Federal Award Year: 2020-2021 Prior year finding: N/A Finding: In testing the requirement for eligibility there was one case in which Form 3055 (Referral and Authorization for Child Welfare Services) was not obtained for eligibility. Condition: Form 3055 needs to be obtained prior to providing services. Criteria: The Organization needs to obtained Form 3055 from the Iowa Department of Human Services. Cause: Due to limited staff within the Organization. Prevalence: There was one case in our sample. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring timely filings. Views of responsible officials: Management agrees with the finding. Please see corrective action plan.

Prior year finding: 2019-001 Finding: Monthly case progress reports for the Safety Plan Services and Family Safety, Risk and Permanency Services contract were not submitted to the State either timely or at all. Condition: Monthly case progress reports were not timely submitted to the State based on agreement. Criteria: Per the Safety Plan Services and Family Safety, Risk, and Permanency Services contract, case progress reports for individuals are required to be reported within five business days of the Agency referral each month to the State. Cause: No review was in place to verify reports were submitted to the State. Prevalence: Monthly case progress reports for one of a sample of forty individuals tested was not submitted to the State and one was not submitted timely. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring submission of monthly reporting. Views of responsible officials: Management agrees with the finding. Please see corrective action.

Prior year finding: 2019-002 Finding: Initial meetings for the Safety Plan Services and Family Safety, Risk and Permanency Services contract were not held within the required 5 business days. Condition: Initial meetings between the Agency and individuals were not held timely. Criteria: Per the Safety Plan Services and Family Safety, Risk and Permanency Services contract, initial meetings for individuals are required to be held within five business days of the Agency admit date. Cause: No review was in place to verify the accuracy of admit dates. Prevalence: Initial meeting for one of a sample of forty individuals tested were not held timely. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring initial meetings are held timely. Views of responsible officials: Management agrees with the finding. Please see corrective action.

Finding: Monthly case progress reports for the Safety Plan Services and Family Safety, Risk and Permanency Services contract were not submitted to the State. Condition: Monthly case progress reports were not timely submitted to the State. Criteria: Per the Safety Plan Services and Family Safety, Risk, and Permanency Services contract, case progress reports for individuals are required to be reported within five business days of the Agency referral each month to the State. Cause: No review was in place to verify reports were submitted to the State. Prevalence: Monthly case progress reports for one of forty individuals were not submitted to the State. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring submission of monthly reporting. Views of responsible officials: Management agrees with the finding. Please see corrective action.

Finding: Initial meetings for the Safety Plan Services and Family Safety, Risk and Permanency Services contract were not held within the required 5 business days. Condition: Initial meetings between the Agency and individuals were not held timely. Criteria: Per the Safety Plan Services and Family Safety, Risk, and Permanency Services contract, initial meetings for individuals are required to be held within five business days of the Agency admit date. Cause: No review was in place to verify the accuracy of admit dates. Prevalence: Initial meetings for two of forty individuals were not held timely. Effect: Noncompliance with federal regulations. Questioned costs: None. Recommendation: We recommend management evaluate procedures in place for ensuring initial meetings are held timely. Views of responsible officials: Management agrees with the finding. Please see corrective action.

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