Condition: We tested 19 provider files and identified two billing errors within the May 2022 claim submissions. For each instance of error, the number of meals served was incorrectly determined and submitted for reimbursement. Criteria: Federal assistance to institutions takes the form of cash reimbursement for meals served. An institution's entitlement to cash reimbursement is computed by multiplying the number of meals served, by category and type, by prescribed per-unit payment rates called ?reimbursement rates.? ?Type? refers to the kind of meal service for which the institution seeks reimbursement (breakfast, lunch, snack, or supper). For meals served in centers, ?category? refers to the economic need of the child or adult to whom a meal is served; such meals are categorized as paid, reduced, or free. Meals served in day care homes are categorized by the tiering structure (Tier I or II). Under this formula, an institution's entitlement to funding is a function of the categories and types of services provided. An institution establishes its entitlement to reimbursement payments by submitting claims for reimbursement. Cause: Human error in summarizing the meals served by providers. Effect: The May 2022 claims contained immaterial billing errors. Recommendation: We suggest that Charities review its controls and implement procedures to ensure accurate claims are being submitted for reimbursement.
Condition: We tested 73 client files and identified the following instances of noncompliance: - Two client files did not contain a current lease agreement. - One client file did not contain a zero income declaration form for a household member that did not have any income. - One client?s application reported an incorrect annual income amount. Household income was understated, resulting in the household receiving a higher benefit amount than they were entitled to based on their income and household size. - One client?s application reported an incorrect number of household members. The number of household members were overstated, resulting in the household receiving a higher benefit amount than they were entitled to based on their income and household size. Criteria: - The program requirements of the Low Income Home Energy Assistance contract administered by the Delaware Department of Health and Social Services indicate that each client file must contain the following documentation: o Application signed by the applicant o Social Security Card or documentation of all social security numbers of all occupants aged 6 months and over in the household o United States Citizen or Qualified Alien verification o Delaware residency verification o Address verification o Recent copy of electricity bill o Lease agreement, if a renter o Income documentation for all household members aged 18 and over if not attending school, including Zero Income Declaration forms, if applicable - Federal assistance to eligible low-income households is determined based upon a benefit matrix established by the State of Delaware each program year. Internal controls should be in place to ensure eligible households are awarded the correct benefit amount based on income level, household size, and fuel source. Cause: Oversight of program compliance requirements regarding file documentation and human error in determining energy assistance benefits. Effect: Three client files did not contain all the required documentation, and incorrect assistance benefit amounts were awarded to two households. Recommendation: We also recommend Charities review its internal controls and implement procedures to ensure that complete and accurate documentation is maintained for each program participant, and to ensure that program recipients are awarded the proper amount of assistance benefits based on their income, household size, and fuel type.
Condition: The 2022 program year heating funds reconciliation report was not completed and submitted to the State of Delaware in a timely manner. Criteria: Charities receives advanced funding from the State of Delaware to make payments to energy vendors on behalf of eligible program participants. In some instances, a participant?s approved benefit amount may exceed the amount of funds actually utilized by the energy vendor. At the end of each heating season, Charities must perform a reconciliation of unused heating benefits, request the return of unutilized benefits from the energy vendors, and refund the State of Delaware by June 15th. Cause: Turnover in program staff and lack of established procedures to reconcile DEAP payment vouchers with the corresponding funding invoices. Effect: Unused heating benefits were not refunded to the State of Delaware by June 15, 2022. Recommendation: We suggest that Charities implement procedures to ensure the final heating funds reconciliation report is completed accurately and any related refund is remitted to the State of Delaware in accordance with the established timeline.
Condition: We tested 19 provider files and identified two billing errors within the May 2022 claim submissions. For each instance of error, the number of meals served was incorrectly determined and submitted for reimbursement. Criteria: Federal assistance to institutions takes the form of cash reimbursement for meals served. An institution's entitlement to cash reimbursement is computed by multiplying the number of meals served, by category and type, by prescribed per-unit payment rates called ?reimbursement rates.? ?Type? refers to the kind of meal service for which the institution seeks reimbursement (breakfast, lunch, snack, or supper). For meals served in centers, ?category? refers to the economic need of the child or adult to whom a meal is served; such meals are categorized as paid, reduced, or free. Meals served in day care homes are categorized by the tiering structure (Tier I or II). Under this formula, an institution's entitlement to funding is a function of the categories and types of services provided. An institution establishes its entitlement to reimbursement payments by submitting claims for reimbursement. Cause: Human error in summarizing the meals served by providers. Effect: The May 2022 claims contained immaterial billing errors. Recommendation: We suggest that Charities review its controls and implement procedures to ensure accurate claims are being submitted for reimbursement.
Condition: We tested 73 client files and identified the following instances of noncompliance: - Two client files did not contain a current lease agreement. - One client file did not contain a zero income declaration form for a household member that did not have any income. - One client?s application reported an incorrect annual income amount. Household income was understated, resulting in the household receiving a higher benefit amount than they were entitled to based on their income and household size. - One client?s application reported an incorrect number of household members. The number of household members were overstated, resulting in the household receiving a higher benefit amount than they were entitled to based on their income and household size. Criteria: - The program requirements of the Low Income Home Energy Assistance contract administered by the Delaware Department of Health and Social Services indicate that each client file must contain the following documentation: o Application signed by the applicant o Social Security Card or documentation of all social security numbers of all occupants aged 6 months and over in the household o United States Citizen or Qualified Alien verification o Delaware residency verification o Address verification o Recent copy of electricity bill o Lease agreement, if a renter o Income documentation for all household members aged 18 and over if not attending school, including Zero Income Declaration forms, if applicable - Federal assistance to eligible low-income households is determined based upon a benefit matrix established by the State of Delaware each program year. Internal controls should be in place to ensure eligible households are awarded the correct benefit amount based on income level, household size, and fuel source. Cause: Oversight of program compliance requirements regarding file documentation and human error in determining energy assistance benefits. Effect: Three client files did not contain all the required documentation, and incorrect assistance benefit amounts were awarded to two households. Recommendation: We also recommend Charities review its internal controls and implement procedures to ensure that complete and accurate documentation is maintained for each program participant, and to ensure that program recipients are awarded the proper amount of assistance benefits based on their income, household size, and fuel type.
Condition: The 2022 program year heating funds reconciliation report was not completed and submitted to the State of Delaware in a timely manner. Criteria: Charities receives advanced funding from the State of Delaware to make payments to energy vendors on behalf of eligible program participants. In some instances, a participant?s approved benefit amount may exceed the amount of funds actually utilized by the energy vendor. At the end of each heating season, Charities must perform a reconciliation of unused heating benefits, request the return of unutilized benefits from the energy vendors, and refund the State of Delaware by June 15th. Cause: Turnover in program staff and lack of established procedures to reconcile DEAP payment vouchers with the corresponding funding invoices. Effect: Unused heating benefits were not refunded to the State of Delaware by June 15, 2022. Recommendation: We suggest that Charities implement procedures to ensure the final heating funds reconciliation report is completed accurately and any related refund is remitted to the State of Delaware in accordance with the established timeline.