Performance audit, Department of Economic Security, Division of Children, Youth and Families, prevention programs

              Debra K. Davenport
Auditor General
Performance Audit
Department of
Economic Security—
Division of Children, Youth and Families—
Prevention Programs
Performance Audit Division
JULY • 2007
REPORT NO. CPS-0701
A REPORT
TO THE
ARIZONA LEGISLATURE
The is appointed by the Joint Legislative Audit Committee, a bipartisan committee composed of five senators
and five representatives. Her mission is to provide independent and impartial information and specific recommendations to
improve the operations of state and local government entities. To this end, she provides financial audits and accounting services
to the State and political subdivisions, investigates possible misuse of public monies, and conducts performance audits of
school districts, state agencies, and the programs they administer.
The Joint Legislative Audit Committee
Audit Staff
Copies of the Auditor General’s reports are free.
You may request them by contacting us at:
Office of the Auditor General
2910 N. 44th Street, Suite 410 • Phoenix, AZ 85018 • (602) 553-0333
Additionally, many of our reports can be found in electronic format at:
www.azauditor.gov
Senator Robert Blendu, Chair Representative John Nelson, Vice Chair
Senator Carolyn Allen Representative Tom Boone
Senator Pamela Gorman Representative Jack Brown
Senator Richard Miranda Representative Pete Rios
Senator Rebecca Rios Representative Steve Yarbrough
Senator Tim Bee (ex-officio) Representative Jim Weiers (ex-officio)
Melanie M. Chesney, Director
Dot Reinhard, Manager and Contact Person
Catherine Dahlquist, Team Leader
DEBRA K. DAVENPORT, CPA
AUDITOR GENERAL
STATE OF ARIZONA
OFFICE OF THE
AUDITOR GENERAL
WILLIAM THOMSON
DEPUTY AUDITOR GENERAL
2910 NORTH 44th STREET • SUITE 410 • PHOENIX, ARIZONA 85018 • (602) 553-0333 • FAX (602) 553-0051
July 26, 2007
Members of the Arizona Legislature
The Honorable Janet Napolitano, Governor
Ms. Tracy Wareing, Director
Arizona Department of Economic Security
Transmitted herewith is a report of the Auditor General, a Performance Audit of the
Department of Economic Security, Division of Children, Youth and Families—Prevention
Programs. This report was prepared pursuant to and under the authority vested in the
Auditor General by Arizona Revised Statutes §41-1966.
As outlined in its response, the Department of Economic Security agrees with the finding
and plans to implement all of the recommendations.
My staff and I will be pleased to discuss or clarify items in the report.
This report will be released to the public on July 27, 2007.
Sincerely,
Debbie Davenport
Auditor General
Attachment
Division can further enhance oversight of its
prevention programs (see pages 5 through 9)
The Division uses
many effective
practices to monitor its
prevention program
contractors. It can
further enhance its
oversight by
implementing a few
changes, including
verifying contractors
are adhering to the in-kind
match
requirement and
basing payment for
site visits on receipt of
the written site visit
report.
The Department
agrees with the finding
and will implement the
recommendations.
See gold pages for its
full response.
This audit was
conducted under the
authority vested in the
Auditor General by
Arizona Revised
Statutes (A.R.S.) §41-
1966.
The Department of Economic Security's Division of Children, Youth and Families’
(Division) Office of Prevention and Family Support administers two state-wide
prevention and family support programs and uses contractors to provide
program, quality assurance, training, and evaluation services.
􀁺􇩈 Healthy Families Arizona (HFAz) is a community-based, home-visiting
program providing information, guidance, and emotional and practical
support directly to families in their homes. In fiscal year 2006, it served 5,173
families at a cost of $14.9 million. The Division also spent approximately
$1.5 million on quality assurance, training, and evaluation services.
􀁺􇩆 Family Support, Preservation and Reunification/Promoting Safe and Stable
Families (PSSF) is a community-based program offering family support and
preservation services such as parenting skills training and emergency
human services including rent and utility assistance, food boxes,
emergency shelter, diapers, and clothing. In fiscal year 2006, it served 7,292
families at a cost of almost $3.6 million. The Division also spent
approximately $110,000 to evaluate the program.
The Division uses many effective practices to monitor its prevention program
contractors. However, there are a few additional measures it can take to further
enhance its oversight, including:
􀁺􇩖 Verifying PSSF program contractors' compliance with the contractual
requirements for a 25 percent in-kind match and 10 percent administrative
expenditure limitation;
􀁺􇩃 Continuing to routinely include direct observations of clients receiving
services during its PSSF program site-visit monitoring to better assess
service quality and identify training needs;
􀁺􇩅 Ensuring PSSF program contractors demonstrate that client services are
being provided as reported;
􀁺􇩃 Continuing to base the payment for HFAz site visits on the submission of
the written site-visit report to ensure that the Division does not pay for these
services before they are actually provided; and
􀁺􇩃 Continuing to centralize documentation on HFAz and PSSF program
contractor performance issues so contractor performance can be
effectively evaluated and acted on as necessary.
Office of the Auditor General
page i
Agency Comments
SUMMARY
Our Conclusion
State of Arizona
page ii
Division administers state-wide prevention and
family support programs
The Division’s Office of
Prevention and Family
Support administers
the following two
state-wide prevention
programs:
HFAz is a community-based,
voluntary
home-visitation
program intended to
prevent child
maltreatment,
enhance parent-child
interaction, and
promote child health
and development by
promoting positive
parenting skills and
helping parents set
and achieve goals for
themselves and their
children.
PSSF is a community-based,
voluntary
program offering
family support and
preservation services
intended to improve
the well-being of
families, enhance
family functioning,
foster a sense of self-reliance,
reduce risk
factors, and stabilize
families.
BACKGROUND
Office of the Auditor General
The Division's Office of Prevention and Family Support administers the following
two state-wide prevention and family support programs:
Healthy Families Arizona (HFAz)—This program, which was initiated in 1991, is
a community-based, voluntary home-visitation program intended to prevent
child maltreatment, enhance parent-child interaction, and promote child health
and development by promoting positive parenting skills and helping parents set
and achieve goals for themselves and their children. Home visitation services are
delivered by trained home visitors who provide information, guidance, and
emotional and practical support directly to families in their homes. Services
begin during pregnancy or at a child's birth and can last up to 5 years. Families
may be visited anywhere from weekly to quarterly, depending on the family's level
of need.
The Department contracts with 13
community agencies to implement the
HFAz program. The contractors are
responsible for establishing program
sites, or teams, typically composed of a
supervisor, four home visitors, a family
assessment worker, and a secretary.
These teams are located in areas
meeting specific criteria such as under-utilization
of healthcare services and low
income.
In addition to contracting for program services, the Department contracts for two
quality assurance site visits annually to each HFAz location, initial and ongoing
training for HFAz program staff, and program evaluation. The Division expended
approximately $1.5 million for these services in fiscal year 2006.
The HFAz program has undergone significant expansion since it began in 1991.
Initially, there were only two program sites, in Tucson and Prescott. By 2003, the
program had expanded to 23 sites across the State. As of May 2007, there were
58 program sites serving more than 150 Arizona communities.
page 1
HFAz program goals
􀁺􇩒 Reducing child abuse and neglect
􀁺􇩐 Promoting child wellness and
proper development
􀁺􇩓 Strengthening family relations
􀁺􇩐 Promoting family unity
􀁺􇩒 Reducing dependency on drugs
and alcohol
Source: A.R.S. §8-701.C.
With more program sites, HFAz has experienced significant
growth in the number of families served. As shown in Table
1, in fiscal year 2006, the program reported serving 5,173
families, more than twice the number served in 2004.
However, during the same period, the percentage of
families actively engaged in the program has declined from
91 percent to 76 percent.1
As shown in Figure 1, program costs have also increased,
with approximately $14.9 million being expended for home
visitation services in fiscal year 2006. The HFAz program’s
revenue comes from various sources, including the State
General Fund and the federal Temporary Assistance for
Needy Families block grant (see Figure 2).2
page 2
Table 1: Number of Families Enrolled in the
HFAz Program
Fiscal Years 2004, 2005, and 2006
Fiscal year
Families not
actively
engaged1
Families
actively
engaged
Total
families
served
2004 219 2,137 2,356
2005 559 3,096 3,655
2006 1,216 3,957 5,173
1 Actively engaged families are those that participated in at
least four home visits.
Source: Auditor General staff summary of data from HFAz
annual evaluation reports for 2004, 2005, and 2006
prepared by LeCroy & Milligan Associates, Inc.
$6.1M
$2
$4
$6
$8
$10
$12
$14
$16
$0
2004
Millions
$9.6M
2005
Fiscal Year
$14.9M
2006
Figure 1: HFAz Program Expenditures for
Home Visitation Services
Fiscal Years 2004, 2005, and 2006
Source: Auditor General staff analysis of program expenditure data from
the Department’s Financial Management and Control System
(FMCS) for fiscal years 2004, 2005, and 2006.
Figure 2: Distribution of HFAz Program
Revenues by Funding Type
Fiscal Year 2006
Source: Auditor General staff analysis of program revenue data from the
Department’s FMCS for fiscal year 2006.
Federal
35%
State
34%
Other
31%
1 In the Healthy Families Arizona Evaluation Report FY2006, it was noted that part of the explanation for the lower family
engagement rate may stem from program start-up challenges faced by many of the new HFAz sites, including finding
qualified staff and developing their family engagement skills.
2 Other revenue sources for the HFAz program included Arizona Proposition 204 (tobacco settlement); the Arizona Lottery;
the Arizona Governor’s Office for Children, Youth and Families; the Arizona Child Abuse Prevention Fund; and a federal
Community-based Child Abuse Prevention grant.
State of Arizona
Family Support, Preservation and Reunification/Promoting
Safe and Stable Families (PSSF)—This program offers two
broad categories of prevention services: family support and
family preservation. Services include childcare, family
planning, health education, parenting skills training, and
emergency human services such as rent and utility
assistance, food boxes, emergency shelter, diapers, and
clothing. The services are community-based, voluntary, and
intended to improve families’ well-being, enhance family
functioning, foster a sense of self-reliance, reduce risk
factors, and stabilize families. Families may refer
themselves directly for services or be referred by another
entity, such as law enforcement, as long as they have at
least one child under the age of 18.
The Department has 13 contracts with private agencies and 7 agreements with tribes
to provide PSSF program services. Contractors may provide family support, family
preservation, or both. Since April 2005, PSSF services have been available in 14 of
the State’s 15 counties.1 In addition to contracting for PSSF program services, the
Department contracts for an annual evaluation of the PSSF program. In fiscal year
2006, evaluation services cost approximately $110,000.
In fiscal year 2006, the PSSF program served 7,292
families, with 53 percent receiving 2 hours or more of
services. As shown in Table 2, while there has been a
slight decrease in families served since fiscal year
2004, the percentage of families receiving 2 or more
hours of service has steadily increased, from 39
percent to 53 percent.
Office of the Auditor General
page 3
are preventative services
intended to enhance parents’ ability to create stable
and nurturing home environments that promote the
safety of all family members and healthy child
development.
are intended to preserve
and reunite families through intensive services that
enhance families’ ability to create safe, stable, and
nurturing environments.
Source: Auditor General staff summary of the Department’s request for
proposal for PSSF service providers.
1 La Paz is the only county not served by any of the PSSF contractors.
Table 2: Number of Families Enrolled in the
PSSF Program
Fiscal Years 2004, 2005, and 2006
Fiscal year
Families
receiving
less than 2
hours of
service
Families
receiving 2
or more
hours of
service
Total
families
served
2004 4,543 2,962 7,505
2005 3,228 2,997 6,225
2006 3,415 3,877 7,292
Source: Auditor General staff summary of data provided by
the Division.
The PSSF program is primarily supported with federal Title IV-B, Part II (Promoting
Safe and Stable Families) grant monies, although the State is required to contribute
a 25 percent match.1 As shown in Figure 3, in fiscal year 2006, the PSSF program
expended almost $3.6 million for family support and preservation services.
page 4
Fiscal Year
Millions
$2.5M $2.4M
$3.6M
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
2004 2005 2006
Figure 3: PSSF Program Expenditures for Family
Support and Preservation Services
Fiscal Years 2004, 2005, and 20061
1 The expenditures depicted in the chart do not include those for the time-limited
reunification, adoption promotion support, and administrative/
planning components of the grant.
Source: Auditor General staff analysis of program expenditure data from
the Department’s FMCS for fiscal years 2004, 2005, and 2006.
State of Arizona
1 In addition to funding family preservation and family support services offered through the Divison’s PSSF program, the
federal PSSF grant funds two other broad categories of services: (1) time-limited reunification and (2) adoption
promotion support. These services are provided by the Department, but not through the Division’s Office of Prevention
and Family Support. Federal authorizing statute requires that a significant portion of the monies must be spent on each
of the four program areas. Federal program instruction indicates that a state must have an especially strong rationale if
the percentage provided is below 20 percent for any one of the four service categories. The remaining 20 percent may
be spent for administration and planning and service coordination-related activities.
Division can further enhance oversight of its
prevention programs
page 5
Contract monitoring important
Contract monitoring helps protect public funds and the clients being served by
identifying and reducing fiscal or program risks as early as possible. Specifically,
monitoring helps ensure that contractors comply with contract terms and
conditions, that performance expectations are achieved, and that any problems
are identified and resolved in a timely manner. Additionally, proper contract
oversight is important because in service contracts such as those for the HFAz
and PSSF programs, there is often no end product resulting from the
expenditure of tax dollars. Rather, monitoring and contractor surveillance should
ensure they are providing the services contracted for in accordance with the
agreement's terms.
Division's monitoring of HFAz and PSSF program
contractors incorporates many effective practices
The Department contracts for the services the HFAz and PSSF prevention
programs provide. Additionally, it contracts for quality assurance services to
assist in monitoring the HFAz program contractors. The Division uses many
effective practices to monitor its contractors. For example, the Division:
􀁺􇩕 Uses qualified monitoring staff—National literature on best practices for
contracting for services states that contracting staff should possess
adequate skills and have the necessary training to properly manage the
contract.1 All staff involved in monitoring the Division's HFAz and PSSF
prevention programs are trained for their respective responsibilities. The
Division uses a contractor to monitor HFAz, and its staff receive extensive
mentoring in conducting site visits. They also attend National Prevent Child
Abuse America training to become certified peer reviewers for the Healthy
Families credentialing program and undergo formal training to become
certified Healthy Families trainers. Division monitoring personnel also
receive mentoring in their respective responsibilities and have access to
procurement-related trainings coordinated through the Department's Office
of Procurement. For example, the Office of Procurement arranged for the
Arizona Procurement Institute to provide training on monitoring contractor
performance in March 2007.
1 National State Auditors Association. Contracting for Services: A National State Auditors Association Best Practice
Document. Lexington, KY: National State Auditors Association, 2003.
The Division can
enhance its oversight
of its HFAz and PSSF
prevention program
contractors. Contract
monitoring helps
protect public funds
and the clients being
served by identifying
and reducing fiscal or
program risks as early
as possible. The
Division uses many
effective practices to
monitor its HFAz and
PSSF prevention
program contractors,
such as using qualified
monitoring staff and
conducting on-site
reviews. It can
enhance its monitoring
by making a few
improvements,
including verifying that
PSSF contractors are
adhering to the in-kind
match requirement
and basing payment
for HFAz site visits on
receipt of the written
site visit report.
Office of the Auditor General
FINDING
page 6
􀁺􇩃 Conducts periodic on-site reviews and observations—Washington State's Guide
to Client Service Contracting notes on-site reviews and observations as an
effective monitoring practice.1,2 Both the HFAz and PSSF program contractors
receive site visits. The Division's quality assurance contractor's staff conduct two
site visits a year at each HFAz location to ensure adherence to HFAz critical
elements and credentialing standards, and provide technical assistance as
needed.3 Activities performed during these site visits include examining client
files and other documents, observing staff providing services to families, and
reviewing supervisors' compliance with internal quality management tasks, such
as observing at least two home visits per worker, per quarter. After each visit,
monitoring staff review findings with program site staff and provide any needed
or requested technical assistance. In addition, a written report summarizing the
findings is mailed to the program site. For the PSSF program, division
monitoring staff conduct many of the same activities during their annual visits of
PSSF program contractors and also conduct exit meetings and provide written
summaries of the site visit findings.
􀁺􇩁 Addresses contractor performance deficiencies promptly—According to best
practices identified in the State of Washington's Guide to Client Service
Contracting, monitoring staff should immediately address deficiencies in
contractor performance, including poor quality of service, failure to perform all or
part of the contract, and chronically late report submissions. Monitoring staff for
the HFAz and PSSF programs promptly address contractor deficiencies
following a similar process. Specifically, after a site visit, the site supervisor is
given a copy of the contents of the exit meeting, including any areas of followup
required. The site is given a timeline to complete the follow-up task(s) and must
provide evidence of completion to the program monitor. If the follow-up issues
are serious and reflect a lack of contractual or credentialing compliance, or the
site does not complete its follow-up task(s), division management is
immediately notified and participates in developing additional corrective actions.
􀁺􇩖 Verifies billing invoices—According to the State of Washington’s Guide to Client
Service Contracting, monitoring staff should review all invoices for payments
against contract terms and pricing. No payment should be made unless the
work is satisfactory and in accordance with contract terms. The HFAz and PSSF
program contractors who provide program services submit their billing invoices
monthly to the Division. Division staff review the contract files to verify that the
1 Washington State Office of Financial Management. Guide to Client Service Contracting. Olympia, WA: Washington State
Office of Financial Management, October 2004.
2 Auditors' review of literature on effective contract administration practices found that the client service and personal
service guides issued by the Washington State Office of Financial Management provide a comprehensive discussion of
contracting best practices, including those governing contract monitoring.
3 Credentialing helps the program monitor and maintain quality over the long term. As of May 2007, all individual HFAz sites
having undergone the credentialing review have been certified as credentialed sites by Prevent Child Abuse America.
Further, Arizona's Healthy Families program was awarded the state-wide/multi-site credential in April 2000, the first to be
awarded nationally, and was re-credentialed in November 2004. Although the next re-credentialing of HFAz was
scheduled for November 2008, it has been extended to 2009 due to the heavy demand for credentialing reviews by
Prevent Child Abuse America.
are a set of
best practice standards reflecting
over 20 years of research into the
best outcomes in home visitation
programs.
State of Arizona
page 7
invoices include the correct rates and ensure monies are available for payment.
The information on the invoice is also reconciled against the supporting
documentation provided with the bill.
A few changes will enhance oversight
While the processes for monitoring the HFAz and PSSF prevention program
contractors incorporate many effective monitoring practices, there are still a few
improvements that can be made. Specifically, the Division should:
􀁺􇩖 Verify PSSF contractors comply with in-kind match and administrative
expenditure limit—Although the Division has taken steps to ensure that the
PSSF program contractors comply with most of the contract provisions, it needs
to verify their compliance with two other requirements. First, the Division does
not ensure that the PSSF program contractors provide or obtain a 25 percent in-kind
match as the contract requires. The in-kind match requires the contractor
to match 25 percent of the amount they receive under the contract with cash,
donations, administrative costs not claimed in the proposal budget,
contributions from other collaborative partners or other agencies and staff, or
volunteer time not paid through the contract. Further, for the match to be
considered "in-kind", it must be relevant to the program. Although most PSSF
program contractors had in-kind obligations of $50,000 or less in fiscal year
2006, one contractor received more than $1 million for the program and,
therefore, had an in-kind obligation of approximately $260,000.
Second, the Division has not been monitoring PSSF program contractors'
compliance with the requirement that not more than 10 percent of the funding
provided under the PSSF contract be used for administrative costs.1 Therefore,
the Division should develop and implement a process to verify PSSF program
contractors' compliance with the in-kind match and administrative expenditure
limitation requirements. Division administration agrees that it needs to monitor
compliance with these requirements and is developing a verification process to
implement as part of the Division's PSSF program monitoring.
􀁺􇩏 Observe PSSF contract staff provide client services and obtain additional client
feedback—Although the Division conducts site visits of its PSSF program
contractors, until March 2007, division monitoring staff did not routinely include
observations of the contractor's staff providing client services. According to best
practices identified in the State of Washington's Guide to Client Service
Contracting, when conducting site visits, monitoring staff should observe
operations and interview clients about services received whenever possible.
These activities are useful for helping assess the quality of services and service
1 The Division's PSSF prevention program is federally funded, and federal guidelines require that no more than 10 percent
of these monies be used for administrative costs.
Office of the Auditor General
page 8
delivery and may provide insight into areas where additional training or technical
assistance is needed. During the course of the audit, the Division began
conducting direct observations of service provision during its on-site monitoring
of the PSSF program contractors and should continue with this practice.
Additionally, to help ensure services being billed for by the PSSF program
contractors were actually provided, the Division should develop and implement
a process to obtain client verification. For example, the Division might consider
having PSSF monitoring staff call a random sample of families who have
received services, according to the contractor, to confirm the information.
Alternately, the Division might use a process similar to one used for the HFAz
program sites. Specifically, the HFAz site supervisors must contact two families
per worker, per quarter to determine parent satisfaction with program services
and document the results of the contacts. This information is reviewed by HFAz
monitoring staff during the site visits. The Division reports that in June 2007, the
PSSF sites will begin implementing a process to demonstrate that client services
are being provided as reported. This information will be reviewed by PSSF
monitoring staff during site visits.
􀁺􇩅 Ensure HFAz site visit occurs before approving payment—Until February 2007,
the Division's payment approval process did not ensure the HFAz site visits
conducted by its quality assurance contractor had occurred before the quality
assurance contractor was paid for this service. According to the State of
Washington’s Guide to Personal Service Contracting, before authorizing
payment, contract managers should ensure that the contractor has adequately
demonstrated the satisfactory delivery of services as agreed to in the contract.1
However, auditors’ review of invoices from January through August 2006 found
the Division was billed for and paid $14,000 for two site visits that had not yet
occurred. The contractor subsequently performed the required visits. The
Division and the contractor have both since revised their procedures, and
payment will now be based on the submission of the written site visit reports.
􀁺􇩅 Ensure contractor performance is consistently documented—Although the
Division monitors its HFAz and PSSF program contractors, it lacks systems for
ensuring documentation regarding contractor performance issues is maintained
and accessible. This documentation is important for properly evaluating
contractor performance in case additional action, such as a demand for
assurance letter, is required. In May 2007, the Division began implementing a
system to centralize information on each HFAz and PSSF program contractor's
performance. The Division should continue to maintain contractor performance
information in a centralized location and ensure that it includes information on
performance issues noted by any personnel monitoring the contractor.
1 Washington State Office of Financial Management. Guide to Personal Service Contracting. Olympia, WA: Washington
State Office of Financial Management, July 2004.
is a
formal request to the contractor
for immediate resolution of
contractual issues. These letters
are used when serious and/or
chronic noncompliance issues
are found.
State of Arizona
Office of the Auditor General
page 9
Recommendations:
1. The Division should develop and implement a process to verify PSSF
program contractors' compliance with the contractual requirements for a 25
percent in-kind match and 10 percent administrative expenditure limitation.
2. The Division should continue to include direct observations of service
provision during its PSSF program site visit monitoring.
3. The Division should ensure PSSF program contractors adequately
demonstrate client services are being provided as reported.
4. The Division should continue to base payment for HFAz program site visits
on the submission of the written site visit reports.
5. The Division should continue to centralize documentation on HFAz and
PSSF program contractor performance issues and ensure that issues
noted by all personnel monitoring the contracts are included.
page 10
State of Arizona
Office of the Auditor General
AGENCY RESPONSE
_________________ARIZONA DEPARTMENT OF ECONOMIC SECURITY_________________
1717 W. Jefferson - P.O. Box 6123 - Phoenix, AZ 85005
Janet Napolitano Tracy L. Wareing
Governor Director
July 20, 2007
Ms. Debbie Davenport
Auditor General
Office of the Auditor General
2910 North 44 Street, Suite 410
Phoenix, Arizona 85018
Dear Ms. Davenport:
The Department of Economic Security wishes to thank the Office of the Auditor General for the
opportunity to respond to the recently completed audit of the Office of Prevention and Family
Support located within the Division of Children, Youth and Families.
The Department is pleased your office recognized the excellent job the Office of Prevention and
Family Support is doing to ensure providers are in contract compliance, which ultimately means
program families receive high quality services.
The Division of Children, Youth and Families is dedicated to the Department’s mission which
states “The Arizona Department of Economic Security promotes the safety, well-being and self-sufficiency
of children, adults and families” and understands that prevention is the first step to
ensuring child safety in the community. We are confident that our nationally recognized and
credentialed Healthy Families Arizona home visitation program and our Promoting Safe and
Stable Families program are effective programs that assist families achieve a better outcome in
life thus ensuring child safety.
The Department agrees with and is currently implementing the recommendations.
If you have any questions, please contact Ken Deibert, Deputy Director, Division of Children,
Youth and Families, at (602) 542-3598, or me at (602) 542-5757.
Sincerely,
Tracy L. Wareing
Director
Attachment
ARIZONA DEPARTMENT OF ECONOMIC SECURITY’S RESPONSE
TO THE OFFICE OF THE AUDITOR GENERAL’S REPORT
ON PREVENTION PROGRAMS
The Department’s response to the Auditor General recommendations is described below.
RECOMMENDATION 1:
The Division should develop and implement a process to verify PSSF program contractors’
compliance with the contractual requirements for a 25 percent in-kind match and 10 percent
administrative expenditure limitation.
DES Response:
The finding of the Auditor General is agreed to and the audit recommendation will be
implemented.
A process has been developed and was implemented in July 2007 to address this finding of the
audit.
RECOMMENDATION 2:
The Division should continue to include direct observations of service provision during its PSSF
program site visit monitoring.
DES Response:
The finding of the Auditor General is agreed to and the audit recommendation will be
implemented.
A process has been developed and was implemented in March 2007 to address this finding of the
audit.
RECOMMENDATION 3:
The Division should ensure PSSF program contractors adequately demonstrate client services are
being provided as reported.
DES Response:
The finding of the Auditor General is agreed to and the audit recommendation will be
implemented.
A process has been developed and was implemented in June 2007 to address this finding of the
audit.
Division of Children, Youth and Families
Response to Auditor General’s Report
Prevention Programs
Page 2
RECOMMENDATION 4:
The Division should continue to base payment for HFAz program site visit on the submission of
the written site reports.
DES Response:
The finding of the Auditor General is agreed to and the audit recommendation will be
implemented.
A process has been developed and was implemented in February 2007 to address this finding of
the audit.
RECOMMENDATION 5:
The Division should continue to centralize documentation on HFAz and PSSF program
contractor performance issues and ensure that issues noted by all personnel monitoring the
contracts in included.
DES Response:
The finding of the Auditor General is agreed to and the audit recommendation will be
implemented.
A process has been developed and was implemented in May 2007 to address this finding of the
audit.
CPS Reports Issued
-0 CHILDS Data Integrity
Process
-0 Timeliness and
Thoroughness of
Investigations
-0 On-the-Job Training and
Continuing Education
-0 DES’ Federal Title IV-E
Waiver Demonstration
Project Proposal
-0 Family Foster Homes
and Placements
-0 Revenue Maximization
-0 In-Home Services
Program
-0 Federal Deficit Reduction
Act of 2005
-0 Federal Grant Monies
Future CPS Reports
-0 Substance-Exposed
Newborns
Resolving Client Concerns
Family Demographics
Child Abuse Hotline