12 | Audit of Contracted Human Services August 2024 5. Timely Report Submissions Observation As part of the control to verify that agencies meet reporting requirements stipulated in the contract on a timely basis, the audit reviewed compliance with the following criteria: • Payment Request Form Including Financial Statement and Revenues: Agencies are required to submit the payment request form, which includes financial statements and revenues, within 15 days following the end of each month/quarter. The final payment request for the fiscal year must be submitted to the County within 7 calendar days following the end of the County's fiscal year. • Community Success Factor Performance reports: The 4th quarterly report, including client demographics, must be submitted within 7 calendar days following the end of the County's fiscal year. Based on the sample and timeframe selected for testing: • Eleven (11) out of twenty-nine (29) agencies did not submit their payment request forms (including financial statements & revenues) within the contractually required timeframe. Notably, two (2) agencies that submitted their payment request forms late were not flagged as late submissions in the system. • One (1) out of twenty-nine (29) agencies did not submit their Financial Statement and Revenues as part of the payment request form. Human services ultimately requested and received the form. • The submission dates of Community Success Factor (CSF) reports for four (4) out of twenty-nine (29) agencies were not recorded in the Master Payment Sheet, hindering verification of timely submissions. Recommendation In order to improve the timeliness and approval process of the report submission, we recommend to: • Enhance System Flags and Notifications: Develop or enhance existing systems to automatically flag late submissions of payment request forms, financial statements and CSF reports. Ensure these flags trigger alerts for timely follow-up and require agencies to provide written explanations for delays. • Strengthen Approval Process: Modify the approval process to mandate that approvers review and approve all flagged late submissions only after verifying that agencies have provided adequate written explanations for the tardiness. This process should include ensuring the inclusion of necessary documentation, such as P&L reports, within payment request forms. • Establish Clear Policies and Procedures: Develop and communicate clear policies outlining the requirements for timely submission of reports and documentation. Include
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