Special Audit Report - Health and Social Service Centers
The Office of Internal Audit (OIA) conducted a special audit of the Department of Family and Community Services’ (DFCS) Health and Social Service Centers (HSSC). The audit was requested by DFCS as a proactive approach to improve HSSC operations and identify appropriate corrective measures.
HSSCs were conceived as one-stop-shops for the convenience of low to moderate income residents needing health, education and social services. DFCS is responsible for administering funds from a variety of sources in addition to managing HSSC fiscal agent and property lease agreements. Each of the four HSSCs is strategically located to service a quadrant of the City.
• Los Griegos – North • East Central – East
• John Marshall – South • Alamosa – West
Objective: Does DFCS have effective processes and accurate records for fiscal agent and property lease activities?
- Lack of oversight by DFCS, has allowed property lease activities to operate without contracts, unchanged decade-old rates and uncollected delinquent account receivables.
- Nineteen of 20 (95%) HSSC property lease contracts have been expired for over a year. The annual amount of lease revenue associated with HSSC leases is approximately $331 thousand.
- Five dollars per square foot lease rates have remained unchanged for approximately 10 years.
- Lack of fiscal oversight has allowed $37,312 to accumulate for delinquent lease payments.
- Lack of oversight by DFCS has allowed fiscal agent activities to operate without contracts, memoranda of understanding and accountability measures.
- Contracts or memoranda of understanding between certain HSSCs and not-for-profit organizations do not exist for three of four collaborations.
- DFCS has allowed and/or approved United South Broadway Corporation (USBC) to disburse approximately $2,716 in donated funds that do not support the mission or purpose of HSSCs.
- USBC adjusted John Marshall’s (JM) fund balance by $7,804, without the City’s consent, for prior year’s unallocated expenses, which do not appear consistent with JM’s expense activity.
Objective: Are internal controls adequate to ensure resource allocations are delivered to the intended recipients of HSSC services?
- Internal controls to ensure resource allocations have been delivered to the intended recipients of HSSC services have not been developed for City programs. As a result, DFCS cannot demonstrate that City HSSC resource allocations were delivered to the department’s intended recipients.
Objective: Does DFCS have effective internal controls to account for donations?
- Deficient internal controls for donation activities hinders the ability of the department to accurately account for, manage and derive the benefit from this form of public support.
Objective: Are supervisory controls for HSSC staff sufficient for detecting fraud, waste and abuse of City assets?
- Annual employee performance reviews have not been performed for the majority of HSSC staff. Supervisory controls have also remained unchanged despite prior personnel integrity and accountability issues.