Audit Report On The Department Of Youth And Community Development Transitional Independent Living Program

AUDIT REPORT IN BRIEF

This audit determined whether the Department of Youth and Community Development (DYCD) effectively monitored the Transitional Independent Living (TIL) program. DYCD’s Division of Runaway and Homeless Youth Services (RHY) provides funding to community-based organizations to operate runaway and homeless services programs for youths under the age of 21. These programs offer youths alternatives to living in the streets by placing them in a safe environment or endeavoring to achieve family reunification. In Fiscal Year 2008, DYCD’s TIL program provided homeless youths with support and shelter services at nine locations through DYCD contracts with six community-based organizations (CBOs). According to the Fiscal Year 2008 RHY Statistical Data Report on TIL Programs, TIL contractors provided direct services to 244 youths. Funding for the TIL program was $5,168,505.

Audit Findings and Conclusions

The audit concluded that DYCD did not adequately monitor the contract compliance of its TIL vendors. This finding is based primarily on inadequate documentation of reviews conducted by contract managers during site visits, as well as limited evidence of follow-up when problem areas were identified. These monitoring weaknesses, however, did not result in contract noncompliance; our examination of certain key contract provisions found that TIL vendors generally complied with their contract.

Although DYCD contract managers made an adequate number of site visits to TIL facilities, they often did not document what they found or follow up to determine whether vendors took action to correct deficiencies. As a result, DYCD cannot assure (1) the accuracy and completeness of its site visits and assessments or (2) that TIL vendors corrected noted deficiencies. In addition, our data reliability assessment concluded that DYCD did not maintain an accurate list of TIL clients.

To determine whether the monitoring weaknesses cited resulted in TIL vendors failing to meet the terms of their contracts, we assessed the vendors’ compliance with certain key contractual provisions. Our analysis revealed that: TIL vendor client files generally contained adequate supporting documentation relative to client assessments, individual service plans, and discharge services; TIL vendor personnel files generally contained evidence that employees’ backgrounds were verified and that training and annual performance evaluations were provided; and TIL vendors’ claims for reimbursement were adequately supported. However, we found serious unsanitary and unsafe conditions at some TIL facilities during unannounced visits.

In other matters, we have some concern that DYCD’s contract lacks performance incentives with regard to client services.

Audit Recommendations

To address these issues, the audit recommends, among other things, that DYCD:

• Improve its monitoring of TIL vendors by preparing site-visit reports that provide a detailed account of what the contract manager reviewed, a detailed listing of findings, and a corresponding set of recommendations. Such site-visit reports should also require TIL vendors to prepare corrective action plans to address these findings.

• Conduct follow-up visits when deficiencies are identified to ensure that they are corrected.

• Implement stronger controls (e.g., increase the number of unannounced visits) to ensure that TIL vendors consistently provide clean and safe environments at their facilities.

• Include performance-based measures in future TIL vendor contracts as incentives to encourage vendors to improve their services.

• Include provisions in future contracts that assess some penalties on TIL vendors that provide poor or sub-par services.

DYCD Response

In its response, DYCD generally agreed with seven recommendations, disagreed with two, and did not respond to one.