A Report on On-site Audits of Residential Child Care Providers
Report Number 14-043
Three of the five residential child care contractors (providers) audited accurately reported in their cost reports the majority of funds they expended for providing 24-hour residential child care services for 2013. Those providers were:
- Avalon Center, Inc.
- Buckner Children and Family Services, Inc.
- Children's Hope Residential Services, Inc. – West.
Two providers audited had significant weaknesses in controls over their financial processes. As a result, auditors identified errors in the expenditures they reported in their cost reports for providing 24-hour residential child care services. Those providers were:
- L'Amor Village Residential Treatment Center.
- The Open Arms Agency.
All five providers should strengthen their efforts to consistently maintain documentation showing that they accurately reported their expenditures associated with providing 24-hour child care services. They also should improve the accuracy and classification of financial transactions they include on their cost reports.