Audit 25896

Criteria: In accordance with 7 CFR 247.9(a) through (e), eligibility is limited to the elderly (persons at least 60 years of age), and low-income individuals (household income at or below 130% of federal poverty income guidelines). Condition: During testing of compliance and internal controls over compliance of the eligibility requirement, the auditor identified several instances of individuals receiving benefits who were improperly determined to be eligible. Out of a sample of 40 individuals selected for testing, there were a total of eight ineligible individuals who received benefits. One of these individuals was under the age of 60, and is therefore ineligible to receive benefits. Two of these individuals had a household income above the income threshold and should not have been determined eligible for program benefits. Five individuals had income below the federal poverty income guidelines at the individual level, however, at the household level, the combined household income was above the eligibility limits; the household?s participant file did not properly account for the household size during income eligibility determination, and therefore, the participants were incorrectly deemed eligible. The sample size was not, and was not intended to be statistically significant. Cause: Eligibility determinations are not reviewed by supervisory personnel with sufficient knowledge of program eligibility requirements. Effect: Individuals are receiving benefits who are categorically- or income-ineligible. Questioned Costs: Each monthly food package is valued at $60. Based on the number of times these eight individuals were served during the fiscal year, known questioned costs are $4,560. Repeat Finding: No. Recommendations: The auditor recommends that all eligibility determinations are reviewed and approved by supervisory personnel with sufficient knowledge of program eligibility requirements.

Criteria: In accordance with 7 CFR 247.9(a) through (e), eligibility is limited to the elderly (persons at least 60 years of age), and low-income individuals (household income at or below 130% of federal poverty income guidelines). Condition: During testing of compliance and internal controls over compliance of the eligibility requirement, the auditor identified several instances of individuals receiving benefits who were improperly determined to be eligible. Out of a sample of 40 individuals selected for testing, there were a total of eight ineligible individuals who received benefits. One of these individuals was under the age of 60, and is therefore ineligible to receive benefits. Two of these individuals had a household income above the income threshold and should not have been determined eligible for program benefits. Five individuals had income below the federal poverty income guidelines at the individual level, however, at the household level, the combined household income was above the eligibility limits; the household?s participant file did not properly account for the household size during income eligibility determination, and therefore, the participants were incorrectly deemed eligible. The sample size was not, and was not intended to be statistically significant. Cause: Eligibility determinations are not reviewed by supervisory personnel with sufficient knowledge of program eligibility requirements. Effect: Individuals are receiving benefits who are categorically- or income-ineligible. Questioned Costs: Each monthly food package is valued at $60. Based on the number of times these eight individuals were served during the fiscal year, known questioned costs are $4,560. Repeat Finding: No. Recommendations: The auditor recommends that all eligibility determinations are reviewed and approved by supervisory personnel with sufficient knowledge of program eligibility requirements.