Federal Reports

Heartland Human Care Services, Inc. (Heartland), generally met applicable safety standards for the care and release of children in its custody. Heartland met State licensure requirements and requirements for inspections, performed adequate oversight, and followed guidance when reviewing background investigations for employees who care for the children. However, we observed one classroom where the staff-to-child supervision ratio was significantly less than required, and we observed one classroom and hallway that lacked required monitoring equipment. We also found that some Heartland case files were missing documentation assuring that required records were provided upon the child's release to a family member or other sponsor.

What We Looked AtWe performed a quality control review (QCR) on the single audit that Hoffman, Philipp, & Knutson, PLLC (HPK) performed for Lake of the Woods County's (County) fiscal year that ended December 31, 2016. During this period, the County expended approximately $2.1 million from a U.S. Department of Transportation (DOT) grant program. HPK determined that DOT's major program was the Highway Planning and Construction program.Our QCR objectives were to determine whether (1) the audit work complied with the Single Audit Act of 1984, as amended, the Office of Management and Budget's Uniform Guidance, and the extent to which we could rely on the auditors' work on DOT's major program; and (2) the County's reporting package complied with the reporting requirements of the Uniform Guidance.What We FoundHPK's audit work complied with the requirements of the Single Audit Act, the Uniform Guidance, and DOT's major program. We found nothing to indicate that HPK's opinion on DOT's major program was inappropriate or unreliable. However, we identified deficiencies in the HPK's audit work that should be corrected in future audits. In addition, we identified deficiencies in the County's reporting package that required correction and resubmission.

We reviewed the New York State agency’s controls for operating under SFSPrequirements and sponsor and site compliance with those requirements.

OIG performed agreed-upon procedures for assessing information reported byUSDA’s National Finance Center.