Audit of Contracted Human Services, July 2018

4 |  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  Maintain an administrative and fundraising rate of less than 30% of total revenue; and,   Demonstrate that the organization has generated at least $50,000 in support and  revenue from all sources during the most recently completed fiscal year.  If an agency is accepted as part of the Contracted Human Services program, they sign a contract  with the county that outlines the rate of funding, the total amount that will be funded, and  which programs will be eligible for the funding. In order to receive reimbursement funding,  each agency is required to submit invoices to the county containing the amount requested and  the relevant supporting documentation. The payment requests must be submitted on either a  monthly or quarterly basis (agency preference).   In addition to the above, as an ongoing review process, each agency must also submit quarterly  performance reports. The reports must document and outline the effectiveness of the program  being funded.   For fiscal year 2017, a total of $9,205,006 was budgeted to be reimbursed for Contracted  Human Services provided by 59 nonprofit agencies.  Objectives, Scope and Methodology  The objective of this audit was to determine if the Health and Human Services Department’s  internal controls related to Contracted Human Services are operating effectively to ensure  compliance with the contracts executed for fiscal year 2017.  To meet the objective of the audit, the procedures performed included, but were not limited  to, the following:   Obtained a general understanding of the process by which agencies apply for funding.    Selected a random sample of 26 of the 59  ($6,745,090 of $9,205,006) agencies for  testing. For agencies funded monthly, three most recent months were tested. For those  funded quarterly, the most recent quarter was reviewed.   Reviewed the contract eligibility requirements for the selected sample to ensure that all  agencies are in compliance with the following provisions:  o The entity must be registered as a nonprofit with the State of Florida;  o Financial statements and revenues are submitted each reporting period;  o Program performance reports are submitted quarterly;  o Appropriate insurance is maintained;  o Prior and current year external audits were performed and are on file;  o The County is receiving documentation of new funding sources by the agencies.   Reviewed payment requests for the selected sample to ensure that the requests were  in compliance with the contract and properly supported.