AUDIT SUMMARY

 

Our audit of the Virginia Department of Social Services (Social Services) for the fiscal year ended June 30, 2024, found:

 

• • proper recording and reporting of all transactions, in all material respects, in the Commonwealth’s accounting and financial reporting system, Social Services’ financial systems, and supplemental information and attachments submitted to the Department of Accounts;

 

• • 25 matters involving internal control and its operations necessary to bring to management’s attention; 24 of which represent instances of non-compliance with applicable laws and regulations or other matters that are required to be reported; and

 

• • adequate corrective action with respect to five prior audit findings identified as “Complete” in the Findings Summary included in the Appendix.

 

We identified the Temporary Assistance for Needy Families (TANF) federal grant program as a high-risk major federal program at Social Services and included it within the Commonwealth’s Single Audit scope.  The Office of Management and Budget’s Compliance Supplement requires an audit of Social Services’ Administration for Children and Families (ACF) 199 TANF Data Report (ACF-199) and 209 Separate State Programs – Maintenance-of-Effort (MOE) Data Report (ACF-209) submissions.  During the audit, we determined that Social Services did not implement internal controls to comply with the provisions at 45 Code of Federal Regulations (CFR) § 265.7(b), which require States to have complete and accurate reports that reflect information available in case records, are free of computational errors, and are internally consistent.  As a result, we communicated this matter to Social Services’ management through the audit finding titled “Implement Internal Controls over TANF Federal Performance Reporting,” which is included in the section of our report titled “Internal Control and Compliance Findings and Recommendations.”  Additionally, we issued a qualified opinion on the reporting compliance requirement for the TANF federal grant program because Social Services did not materially comply with the provisions at 45 CFR § 265.7(b).

 

In the section titled “Internal Control and Compliance Findings and Recommendations” we have included our assessment of the conditions and causes resulting in the internal control and compliance findings identified through our audits as well as recommendations for addressing those findings.  Our assessment does not remove management’s responsibility to perform a thorough assessment of the conditions and causes of the findings and develop and appropriately implement adequate corrective actions to resolve the findings as required by Accounts in Topic 10205 – Agency Response to Auditor of Public Accounts Audit of the Commonwealth Accounting Policies and Procedures (CAPP) Manual.  Those corrective actions may include additional items beyond our recommendation.

 

In fiscal year 2023, we included the results of our audit over Social Services in the report titled "Agencies of the Secretary of Health and Human Resources for the year ended June 30, 2023."