7 | Audit of Contracted Human Services August 2024 1. Notification of Additional Funding Observation The Sarasota County Government Human Services contractual agreement requires providers to notify the County in writing prior to accepting additional funding not listed in their budget and is from sources other than the County. This notification must include a statement detailing how the change in funding affects service provision and the use of, and continued need for, County funds. The provider acknowledges that such additional funding may reduce the County's funding obligations under this contract. The auditor tested a sample of twenty-nine (29) agencies to determine if those who received additional funding that was not listed on their budget notified the County with a statement prior to acceptance of the additional funding. Seven (7) agencies reported additional funding sources but none disclosed them to Human Services prior to acceptance. It was observed that agencies are reporting additional funding not listed on their budget on the Community Success Factor (CSF) reports after accepting the funding. Per the contract, the additional funding should not be accepted until the notification and statement detailing how the change in funding affects service provision and the use of, and continued need for County funds, has been provided to Human Services and reviewed. If agencies do not properly and timely notify the County, the County cannot reevaluate its funding obligations, potentially leading to over-funding. Recommendations To ensure compliance with contractual provisions, Human Services should enhance monitoring of agencies to verify they are disclosing additional funding sources not listed in their budget in writing before acceptance. Human Services is currently revising the language of future contracts to further mitigate occurrences of non-compliance. If agencies fail to comply, the County should reevaluate its funding commitments to those agencies and use this non-compliance in future award decisions. Management Response Contracted Human Services revised the language in the FY 25 contract regarding Notification of Alternative Funding. The contract template was provided to the auditor on July 2, 2024. The revised language is as follows: The provider hereby warrants and represents that, in an attempt to reduce its funding burden on the County, it will exert its best efforts to secure all available private, local, state, and federal funds and grants. Quarterly the Provider will notify the County in writing regarding acceptance of any additional or new funding sources other than the County. This notification shall include a statement as to how this change in funding affects service provision under this contract, as well as the use of, and continued need for County funds. The Provider acknowledges that such additional funding may reduce the County’s funding obligations under this Contract. Failure of the Provider to notify the County of additional funding may result in the Provider refunding to the County part or all of the funds provided under this Contract.
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