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An Audit Report on On-site Financial Audits of Selected Residential Foster Care Contractors

October 2023

Overview

Of the four residential child care contractors (providers) audited, one provider— Presbyterian Children’s Homes and Services (Presbyterian Children’s Homes)—had adequate financial controls in place to help maintain its operations on a sound fiscal basis for fiscal year 2022. Three providers—Promise Rose Residential Care Home Inc. (Promise Rose), Safe Haven Adolescent Home (Safe Haven), and New Pathways RTC, LLC (New Pathways)—had weaknesses in the controls over their financial processes.

Both of the two child-placing agencies audited—Safe Haven and Presbyterian Children’s Homes—should improve their foster parent payment processes. In addition, Safe Haven and Presbyterian Children’s Homes did not consistently comply with all of the Health and Human Services Commission’s (Commission) foster home monitoring requirements.

HIGH

PROMISE ROSE RESIDENTIAL CARE HOME INC. – FISCAL PROCESSES

Promise Rose had weaknesses in its financial processes, including inadequate oversight of its expenditures, insufficient controls over its information systems, and weaknesses in its fiscal year 2022 cost reporting process.

Jump to Chapter 1
HIGH

SAFE HAVEN ADOLESCENT HOME – FISCAL PROCESSES

Safe Haven had weaknesses in its financial processes, including inadequate oversight of its expenditures and fiscal year 2022 cost reporting process.

Jump to Chapter 2-A
HIGH

SAFE HAVEN ADOLESCENT HOME – FOSTER PARENT MONITORING

Safe Haven did not consistently maintain documentation to show that it visited all foster homes quarterly, as required by the Commission’s Minimum Standards for Child-Placing Agencies.

Jump to Chapter 2-B

HIGH

NEW PATHWAYS RTC, LLC – FISCAL PROCESSES

New Pathways had weaknesses in its financial processes, including inadequate oversight of its expenditures and fiscal year 2022 cost reporting process.

Jump to Chapter 3
MEDIUM

PRESBYTERIAN CHILDREN’S HOMES AND SERVICES – FISCAL PROCESSES

Presbyterian Children's Homes had adequate financial controls in place during its 2022 fiscal year. However, controls over its cost reporting process, payments to foster parents, and conflict-of-interest compliance should be improved.

Jump to Chapter 4-A
MEDIUM

PRESBYTERIAN CHILDREN'S HOMES AND SERVICES – FOSTER PARENT MONITORING

Presbyterian Children’s Homes conducted monitoring visits with children in the care of its foster families. However, it did not consistently document all of the information required by the Commission’s Minimum Standards for Child-Placing Agencies for monitoring visits.

Jump to Chapter 4-B

PRIORITY

CONFIDENTIAL FINDING

To minimize security risks, auditors communicated details about audit findings related to certain security weaknesses in a separate report to Promise Rose.

Those findings were rated Priority, indicating critical risk. Action is needed to address the noted concerns and reduce risks to a more desirable level.

Auditors made recommendations in the confidential report to address the findings. Promise Rose agreed with the recommendations

 

Jump to Note On Confidential Finding

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