Summary of Report 23-006

October 2022

Of the four residential child care contractors (providers) audited, three providers—EmberHope, Families Especial, and Independence Farm—had financial controls in place to help maintain their operations on a sound fiscal basis for fiscal year 2021. The fourth provider, Promise House, had weaknesses in its controls over its financial processes. Of the two providers that were child-placing agencies, Families Especial conducted quarterly supervisory visits as required by the Health and Human Services Commission (Commission), while EmberHope did not consistently comply with the foster parent monitoring requirements.

HIGH

PROMISE HOUSE INC. — FISCAL PROCESSES

Promise House had weaknesses in the controls over its financial processes, including inadequate oversight. Without adequate financial processes, Promise House increases the risk that it will not operate on a sound fiscal basis.

Jump to Chapter 1

MEDIUM

EMBERHOPE INC. — FISCAL PROCESSES

EmberHope had effective financial controls in place to help maintain its operations on a sound fiscal basis and paid its foster parents in accordance with the appropriate rates. However, it should strengthen processes over cost report preparation.

Jump to Chapter 2-A

MEDIUM

EMBERHOPE INC. — FOSTER PARENT MONITORING

EmberHope conducted virtual or physical visits with children in the care of its foster families. However, it did not consistently observe and document all of the information required by the Commission’s Minimum Standards for Child-Placing Agencies for quarterly visits.

Jump to Chapter 2-B

MEDIUM

FAMILIES ESPECIAL INC. — FISCAL PROCESSES

Families Especial had financial controls in place during its 2021 fiscal year to help maintain its operations on a sound fiscal basis and paid its foster parents appropriately. However, it should improve controls over oversight and reporting of related party expenditures.

Jump to Chapter 3-A

LOW

FAMILIES ESPECIAL INC. — FOSTER PARENT MONITORING

Families Especial visited foster homes quarterly, as required by the Commission’s Minimum Standards for Child-Placing Agencies.

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Jump to Chapter 3-B

MEDIUM

INDEPENDENCE FARM INC. — FISCAL PROCESSES

Independence Farm had financial controls in place during its 2021 fiscal year to help maintain its operations on a sound fiscal basis; however, it should strengthen its oversight of financial processes.

Jump to Chapter 4