Human Services, Department of
1994 Statewide Financial and Compliance Audit
Report Number 95-095
Overall Conclusion
The Department is in compliance with most federal regulations related to the $5.2 billion of federal funds expended in fiscal year 1994. However, we noted a material control weakness and one instance of material noncompliance.
In addition, federal revenue, expenditures, and other accounts significant to the statewide financial statements are materially accurate and properly reported.
Key Facts and Findings
The Department did not provide sufficient oversight of contractors who distributed commodities valued at approximately $65 million for the Food Distribution Program. As a result of this material control weakness, the operating environment will not readily prevent or detect errors, irregularities, and material noncompliance with federal laws and regulations.
The Department did not document that it informed all Aid to Families with Dependent Children (AFDC) (CFDA 93.560) clients of their right to JOBS program services and responsibility to participate in the program. Thirty-three percent of AFDC case files tested did not contain this documentation, resulting in material noncompliance. If clients are not properly informed, the JOBS program objectives may not be met.
Although the Department made notable improvements in reducing delinquent subrecipient audit reports, 11 of 356 subrecipient audit reports were not received. The delinquent reports resulted in questioned costs of $3,947,317.
The Department has not implemented federal audit recommendations regarding refunding uncashed checks for the Aid to Families with Dependent Children (CFDA 93.560) and Medicaid (CFDA 93.778) programs. This has resulted in questioned costs for the AFDC program of more than $824,000, noncompliance with federal regulations, and interest assessments against the State. Information was not available to quantify questioned cost for the Medicaid program.
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