Key points and summary
Texas Department of Protective and Regulatory Services 1995 Statewide Financial and Compliance Audit Report # 96-318 Overall Conclusion: Our audits continue to indicate that the Department is not complying will all federal requirements for two of its federal programs. Expenditures for these programs total $127.5 million and represent 40 percent of total federal funds expended by the Department in fiscal year 1995. Material noncompliance for the Child Welfare Services program has occurred for the third consecutive year. Key Facts and Findings: The Department is not limiting payments to appropriately documented clients and cost for the Child Welfare Services Program. This has resulted in material noncompliance with federal requirements. This issue has been identified in prior audits. * The Department is in material noncompliance with the federal eligibility and allowable costs requirements for the Child Welfare Services program (CFDA 93-645) - (Prior Audit Issue). The Department uses Child Welfare Services funds to prevent child abuse and ensure safety of abused children. The $20.1 million spent on this program in fiscal year 1995 included payments for psychological evaluation and testing, homemaker services, therapy, counseling, and parent skills training for clients. Before clients are considered eligible for these services, a caseworker must document the need for the services and authorize the payment for the services. 29.2% of the clients tested received services for which eligibility was not documented under the Child Welfare Services program. The Department used federal funds to pay for settlements of lawsuits in which the Department allegedly violated federal and state laws and regulations. The Department did not comply with federal debarment and suspension requirements. 70% of the Departments Title IV-E Foster Care contracts tested did not comply. The Department did not ensure that all adjustments are posted to the accounting records in a timely fashion and the Department's annual financial report and related Schedule of Federal Financial Assistance are not accurate. The Department has not ensured that interagency support service costs are correctly charged to federal programs. Reimbursements for the support services were based on a predetermined contract amount rather than the actual cost of services. Also, the Department charged its federal programs at different amounts that were originally charged by the Texas Department of Human Services. Due to a programming error, the Department overcharged the Foster Care Title IV-E program by an estimated $2.9 million in unallowable care maintenance costs. A prior audit issue related to cash management controls has been resolved. Also the Department has made progress in resolving the following prior audit issues, which are not repeated in this management letter: * Agree eligibility information between automated systems. * Allocate foster care income credits in accordance with federal requirements * Establish policies and time frames for processing foster care eligibility correction.
For a copy of the entire report, contact: OFFICE OF STATE AUDITOR TWO COMMODORE PLAZA 206 EAST NINTH STREET, SUITE 1900 AUSTIN, TEXAS 78701 PHONE: 512-479-4700 FAX: 512-479-4884 E-MAIL: AUDITOR@sao.state.tx.us