Open Recommendations

Develop documents for IT modernization project discussions that ensure completeness of IT modernization efforts including new projects and enhancements to existing systems.

Implement a system/program to maintain an automated, real-time inventory of all Department systems and applications that enables prioritization of IT modernization.

We also recommend that the California Department of Health Care Services work with Los Angeles County to develop a process to ensure that LA County's claims processing system does not pay transitional housing claims after an individual has been discharged from outpatient treatment.

We recommend that the California Department of Health Care Services recover from Los Angeles County $1,681,964 for transitional housing expenditures when closing out the SABG award for our audit period and establish a process to review whether counties, including LA County, were reimbursed for expenditures that had been previously reimbursed.

We also recommend that the California Department of Health Care Services develop procedures for LA County's monitoring activities to identify whether providers are submitting invoices for reimbursement based on actual costs incurred.

We also recommend that the California Department of Health Care Services provide clear guidance to providers on claiming and documenting treatment services.

We recommend that the California Department of Health Care Services instruct Los Angeles County to develop a cost allocation plan for its well-being centers, determine the portion of the $1,820,224 that should not have been allocated to the SABG, and recover any overpayment.

Refine current and identify new strategies, and implement solutions to manage delays in detainee transfers to partner agencies and communicate these improvements throughout the San Diego area.

Oversee a data integrity review at San Diego sector facilities for a sampling of detainee custody logs for 1 month, to verify that the information recorded is accurate. If the problem we identified persists, implement a quality assurance plan, and continue to monitor data integrity.

Design and implement control activities to address 8 of the 17 Government Accountability Office Green Book framework principles that were not sufficiently designed during its FY 2023 Entity Level Control Assessment. (New)

Identify resource capabilities and needs, then recruit, train, develop, and retain financial leaders and personnel with relevant Federal financial management capabilities to achieve operations, reporting, and compliance objectives, complete and document performance evaluations in a readily accessible form, and hold individuals accountable for related control responsibilities. (Modified Repeat)

Ensure its fraud risk management process includes external risk factors such as grantee and subgrantee recipients in its standard operating procedures for the agency risk profile. This process should include: (New)

A scheduled risk assessment, mitigation plan, and monitoring and reporting (e.g., relating to grantee and subgrantee recipients);

An integration of the fraud risk components for known, suspected, and alleged fraud risks;

Documentation on how the fraud risk components integrate;

How the risk scoring is conducted and applied;

The use of the results of monitoring, evaluation, audits, and investigations to improve fraud prevention, detection, and response; and

Guidance for adequate documentation on the risk determination reviews to match risk ratings or detect errors within the risk assessment.

Provide internal training that addresses:

Management’s overall responsibility for establishing internal controls to manage the risk of fraud, and the related impact on the financial statements; and

The connection between potential and known fraud by the grantee and subgrantee recipients and the impact that fraud may have on the underlying financial data being provided by the recipients and ultimately used for the preparation of information reported in the financial statements.

Establish policies and procedures on financial reporting in compliance with standards and guidance (i.e., U.S. generally accepted accounting principles, Office of Management and Budget Circular No. A-136, and the U.S. Standard General Ledger), which should include an end-to-end business process and flowcharts. (New)

Establish policies and procedures that define its roles and responsibilities and those of its service provider to ensure that required internal policies and procedures regarding the SF 132, Apportionment and Reapportionment Schedule and SF 133, Report on Budget Execution and Budgetary Resources reconciliations are completed in timely. (New)

Develop and implement standard operating procedures for a comprehensive reconciliation that includes reviews and approval and proper documentation to support the SF 132 and SF 133 reconciliation. (New)

Develop and implement standard operating procedures to ensure the applicable line items in the combined Statement of Budgetary Resources are properly reconciled in a timely manner to the SF 132, Apportionment and Reapportionment Schedule and differences are properly documents, explained, and available upon request. (New)