Mono County Office of EducationLocal Government

FEDERAL COMPLIANCE (Child Care and Development Block Grant – Eligibility and Special Tests and Provisions) 50000 (2024-001) Significant Deficiency in Internal Control Over Federal Programs Federal Program The internal control deficiencies identified relate to the following federal programs: Condition During the audit of compliance related to the above programs, the following items were noted related to internal control over eligibility and special tests and provisions: • One of three provider files selected for testing related to a license-exempt provider; a health and safety self-certification was on file, however, no evidence of the Office of Education’s review of the form was present. • Four of six family files selected for testing did not contain an updated child care certificate each time a child’s provider rate changed. We were, however, able to recalculate the rate paid in accordance with the established maximum reimbursement rate. • For four of six family files selected for testing, the subsidized child care enrollment checklist was incomplete and/or not signed to support the completeness of the file. Criteria To provide strong internal control over compliance to comply with the requirements of 42 U.S. Code, Section 9858, internal controls should be in place to provide that: • Health and safety self-certifications for license-exempt provider files include evidence of the Office of Education’s review procedures. • Family files include an updated child care certificate each time a child’s provider rate changes. • Family files contain a completed and signed subsidized child care enrollment checklist. The checklist is created and signed off by the program manager to evidence the completeness of the file. Effect Without strengthening internal control over compliance, the Office of Education may not identify items needed to comply with program requirements.   Questioned Costs None identified. Cause The Office of Education took over the program from another agency in the previous year. Although the Office of Education made significant effort to address the previous year’s audit finding, staff turnover and short staffing led to some documentation being overlooked. Context The sample is statistically valid. The items noted appear systematic. Repeat Finding This finding is related to item 2023-001 that is included in the summary schedule of prior audit findings. Recommendation We recommend that the Office of Education ensure policies and procedures are implemented and followed to ensure the Office of Education has strong internal control over compliance in place. Response The Office of Education will implement policies and procedures to ensure strong internal control over compliance in fiscal year 2024-25 and has issued a corrective action plan in a separate letter.

FEDERAL COMPLIANCE (Child Care and Development Fund Cluster – Eligibility and Special Tests and Provisions) 50000 (2023-001) Material Noncompliance and Material Weakness in Internal Control Over Federal Programs Federal Program The noncompliance identified relates to the following federal programs: Child Development - Federal Alternative Payment Condition During the audit of compliance related to the above program, the following items were noted related to eligibility and special tests and provisions: • Four of five provider files selected for testing did not contain a signed statement of understanding. • Four of five provider files selected for testing did not contain a signed sectarian document. • One of five provider files selected for testing related to a license-exempt provider and did not contain a health and safety self-certification. • One of five provider files selected for testing related to a license-exempt provider and did not contain a hold harmless agreement and information sheet. • Nine of 11 family files selected for testing did not contain provider rates. • For eight of 11 family files selected for testing, the subsidized child care enrollment checklist was incomplete and/or not signed to certify eligibility. Criteria Pursuant to 42 U.S. Code, Section 9858, to comply with the requirements of the terms of the program: • Provider files must contain a signed statement of understanding, which is a document containing the rate and schedule of payment for approved services signed by both the service provider and contractor. • Provider files must contain a signed sectarian document where a statement is signed by the provider stating the services do not include religious instruction or worship. • License-exempt provider files must contain a health and safety self-certification. • Licensed-exempt provider files must contain a hold harmless agreement and information sheet. • Family files must contain clear provider rates. • Family files must contain a completed and signed subsidized child care enrollment checklist. The checklist is created and signed off by the program manager to certify eligibility. Controls should be in place to ensure compliance with the above requirements. Effect The Office of Education is not in compliance with the requirements of the program. Questioned Costs As a result of the missing or incomplete documentation, known questioned costs totaled $102,369. Extrapolation to the population indicates that likely questioned costs may be an additional $181,862. Cause The Office of Education took over the program from another agency that was forced to close and was unaware that proper documentation was not being maintained to comply with program requirements. Context The sample is statistically valid. The noncompliance noted appears systematic. Repeat Finding No, this is not a repeat finding. Recommendation We recommend that the Office of Education ensure policies and procedures are implemented and followed to ensure the Office of Education is in compliance with the program requirements. Response The Office of Education will implement policies and procedures to ensure compliance with the program requirements in fiscal year 2023-24 and has issued a corrective action plan in a separate letter.