Some service providers with contracts with Kids Hope Alliance failed to meet requirements in their agreements, according to a final investigation report released by the city Office of Inspector General on Sept. 10.
The Kids Hope Alliance website says it is a funding agent for the city of Jacksonville. KHA invests millions annually in children’s and youth programs and services in Duval County, managing their implementation and monitoring their outcomes.
“Through the funding of third-party providers and strategic partnerships with local nonprofits, KHA is working to ensure thousands of at-hope children and youth have access to a continuum of critical services, including academics, enrichment, nutrition, and mental health,” the website says.
The contractors involved in the investigation were The Jax Gents Inc., Fresh Word Ministries Inc., A Life For A Life International Inc., Tiphne Darshay Hollis Foundation Inc., Visionary Dreamers of Today Foundation Inc. and Made A Way Foundation Inc.
The OIG’s investigation determined that contractors did not submit certificates of insurance promptly as required by their contracts and requests for proposal. Some also failed to maintain the necessary insurance coverage during their contract periods through COIs and did not give KHA 30 days’ written notice of any changes in insurance coverage, including cancellations and expirations, as specified in their contracts and RFPs.
Investigators also said KHA and the contractors amended contracts without the contractors having the required insurance coverage via COIs. Additionally, contractors were unable to secure the necessary insurance coverage or provide the scope of services specified in the contracts and RFPs. KHA did not take any action to suspend or terminate the contracts.
The OIG offered recommendations to improve accountability and efficiency, including:
• Ensure contractors are administering the scope of services referenced in their contracts/RFPs with approved COIs.
• Ensure contractors are providing 30 days written notice of any change to their insurance coverage limits or cancellation, including expiration or nonrenewal referenced in the contracts/RFPs.
• Ensure contractors have approved COIs with the required insurance coverage prior to their contracts being amended, unless the contract amendment references the contractors’ inability to obtain insurance coverage.
• Require contract managers to attest that the contractors have complied with all contract terms before amendments or extensions are granted.
• In instances where contractors are unable to obtain the required insurance coverage or provide their scope of services referenced in the contracts/RFPs, consider taking suspension or termination actions as deemed appropriate.
KHA was given the opportunity to respond to the findings.
It reads, in part: “Over the past year, Kids Hope Alliance (KHA) improved its process for reviewing providers’ certificates of insurance. Rather than conducting a single annual review at renewal time, a new contract tracking system, Agiloft, now allows providers to upload their certificates as they renew. In addition, Agiloft sends a notification email to the provider 90, 60 and 30 days prior to the expiration date of insurance. One employee has been designated to be responsible for monitoring insurance expiration dates. When a certificate expires, the employee contacts the provider via email to request an updated certificate. Going forward, the employee will send providers a fourth reminder email 15 days before their insurance expiration date prompting them to renew their coverage and upload an updated certificate of insurance before it expires.”
The agency’s entire response and the full investigation report are available at Jacksonville.gov/OIG.
To promote transparency and accountability, the OIG encourages the public to report any cases of fraud, waste and abuse to 904-255-5800 or email [email protected].