Audit of Contracted Human Services, July 2018

12 |  A u d i t o f C o n t r a c t e d H u m a n S e r v i c e s  J u l y 2 0 1 8 4. Contract Award Amounts  Observation  Of the 26 agencies tested, one agency signed a contract that provided payment with a rate of  $31.06 per unit of service, defined as one available bed per day. Exhibit A of the contract  stipulates that the agency will maintain a total of 30 beds for active participants in the program  for which the funding is provided. Monthly payment requests under the contract are calculated  using the following formula:  $31.06 (Rate) x 30 (Beds) x Days in the month = Total to be funded  Based on the stipulations of the contract and the formula above, the maximum amount that  could be paid out would have been $340,107.00; however, the total award amount stated in  the contract is $350,000. The agency was paid a total of $349,999.89 in fiscal year 2017.  During the audit, the agency stated that they only maintain a total of 30 beds for the program.  Recommendations Contracted Human Services should develop a procedure in order to ensure that the total  amount awarded to the agencies is achievable based on the terms and reimbursement rates  specified within the contract. The department should also consider requesting repayment from  the agency for the overpayment.  Management Response  All contracts will be reviewed by three contracted human services staff prior to entering the  multi‐departmental process (Board of County Commissioners eGenda system) for execution to  ensure that the total amount awarded to the agencies is correct and achievable.  It appears that  in this particular contract, there had been a scrivener’s error in typing the rate. The rate of  $31.96 had been typed as $31.06. The correct total amount was awarded and paid in fiscal year  2017, and no repayment is necessary from the agency. Contractual reimbursement rates for  fiscal year 2018 were reviewed for achievability, and all are accurate.