HHSA Contractor Financial Review

About the Program

Category: Financial Management (Best in Category)

Year: 2009

With growing pressure on the county’s budget and financing due to the tough economic times, the County of San Diego Health and Human Services Agency established its Contract Support Financial Reviews Unit to provide the monitoring of all county contracts. Because the HHSA holds over 900 contracts with 500 different organizations accounting for over $400 million per year in essential services for residents, many financial and auditory risks exist. The county wanted to ensure that thorough management controls were in place in order to reduce the potential for negative audit findings. The Contract Support Financial Reviews Unit is responsible for conducting audits of all HHSA contractors. These audits include a review of the organization’s internal controls, accounting system, fiscal stability, expenditure allowance, and compliance with specific funding regulations. The purpose of the audits is to identify and correct financial issues in a timely manner and conduct on-going monitoring for serious fiscal weaknesses. This practice provides large counties with an effective way to efficiently manage funding regulations. It can be rather easily replicated by other county governments (especially in large counties) to maximize their resources in adhering to funding regulations. Because of the new audit controls, the county ensures funding levels and makes certain to the public that their taxpayers’ dollars are being put to appropriate use.