14 | Audit of Contracted Human Services August 2024 6. Adequate Documentation for Reimbursement Payments Observation During our audit of the contract reimbursement payment process, we scrutinized the compliance of payment requests with contractual obligations. Specifically, our focus was on ensuring that agencies submitted payment request forms containing all required supporting documentation as stipulated by their contracts. Our audit uncovered recurring issues across Funds 117, 154, and 191 pertaining to the supporting documentation accompanying payment requests. Among the 29 agencies sampled, seven (7) failed to provide sufficient documentation to substantiate requested reimbursement amounts and to verify adherence to contract requirements. Key deficiencies included: • Verification of Service Providers: Agencies did not adequately substantiate that services were rendered by personnel holding the appropriate titles specified in the contract. • Detailed Service Documentation: Summary reports and time card submissions lacked the requisite detail to verify alignment with the contracted scope of services. • Program Eligibility and Assessment: Essential assessments and eligibility verifications for program participants were often absent from submitted documentation. However, upon further discussion with the auditee, it was clarified that although the payment requests do not include all the supporting documentation based on the scope of services written in the contract, they do perform an internal verification to ensure that the agencies are complying with the scope of services of the contract. As a third-party reviewer, we cannot verify if this internal verification process is effectively ensuring that agencies meet the scope of services. This indicates a disconnect between what is included in the payment request and the internal verification processes conducted. The primary risk stemming from these findings is the potential for misallocation of County funds due to insufficient verification of service delivery and compliance with contractual obligations. Without adequate documentation, there is a heightened risk of inaccuracies in reimbursement requests and improper use of public funds. Recommendation To mitigate these risks and enhance compliance, we recommend that Human Services: • Implement a Documentation Process for Internal Reviews: Introduce an additional step in the reimbursement process where internal verifications are documented comprehensively. This documentation should detail the internal review procedures and findings, enabling third-party reviewers to verify that agencies are meeting their contractual obligations.
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