Adams, County Of

Criteria or specific requirement: 12 CCR 2509-7.601.71 provides eligibility requirement for the State of Colorado’s Foster Care IV-E program includes the requirement that for an individual to be considered Foster Care IV-E eligible, they must have been removed from a home where they were living with a parent, or a specified relative, either during the month court proceedings occurred or sometime within the six months preceding the month in which court proceedings took place. Condition: During our testing of 40 Foster Care IV-E benefit transactions, we noted one sample out of forty total samples where the individual receiving payment under Foster Care IV-E was not eligible as the individual did not meet the eligibility requirement of living with a parent or specified relative during the required timeframe. This individual received nine total payments during 2024 totaling $236,528. Questioned costs: $236,528. Context: The County is responsible for determining eligibility of individuals under the Foster Care IV-E program and then recording the beneficiary payment correctly within the Colorado Trails Welfare System (Trails). The Colorado Department of Human Services reimburses the County for foster care related costs through the Colorado Financial Management System (CFMS) based on the information entered into Trails. Noted that the County properly recorded these payments as ineligible for Foster Care IV-E based on the coding entered into Trails, however the Colorado Department of Human Resources improperly reimbursed the County using Foster Care IV-E funds for the ineligible individual. Cause: The Colorado Department of Human Services reimbursed the County using Foster Care IV-E funds for an individual that was not eligible under the program based on a translation issue between the Trails system and the Colorado Financial Management System (CFMS), both of which are managed by the Colorado Department of Human Services. Effect: Payment was reimbursed using Foster Care IV-E funds to an individual who was not eligible under the program. Repeat Finding: No. Recommendation: We recommend the County collaborate with the Colorado Department of Human Services to ensure that reimbursements under Foster Care IV-E only occur for individuals that are eligible under the Foster Care IV-E Program. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID - 19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None identified Award Period: March 3, 2021 – December 31, 2024 Compliance Requirement: Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Effective internal controls should include procedures in place to ensure the required certifications for covered contracts and subawards are received, documented, and contracts are not made with a debarred or suspended party. Condition: During our testing of eight covered transactions (three vendors and five subawards), we noted all three vendors did not have proper supporting documentation for suspension and debarment procedures for vendors. Questioned costs: None. Context: Three of the eight covered transactions tested did not have proper supporting documentation for suspension and debarment procedures. Cause: These three vendors were selected by the participants of the program funded by this grant for training services. Since the County did not select these vendors for these services, the County did not have formal agreements with these vendors. Formal agreements would have led the County to collect the required certifications for suspension and debarment. Effect: Failure to obtain the required certifications or perform verification procedures with the SAM could result in the payment of federal funds to vendors that are suspended or debarred from participation in federal assistance programs. Repeat Finding: No. Recommendation: We recommend the County obtain certifications from vendors stating their organization is not suspended, debarred, or otherwise excluded from participation in federal assistance programs or document the procedures performed to verify the vendor is not identified as suspended or debarred on SAM, even if no formal agreement exists with a vendor. Views of responsible officials: There is no disagreement with the audit finding.