Audit 345822

Major Program: 10.558 - Child and Adult Care Food Program (Grantor - Department of Agriculture) Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Compliance Requirement: Eligibility Condition: We tested 18 provider files and identified billing errors within two provider files for the December 2023 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 December 2023 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.

Major Program: 93.568 - Low Income Home Energy Assistance (Grantor - Department of Health and Social Services) Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Compliance Requirements: Eligibility Condition: We tested 68 client files and identified the following instances of noncompliance: • One client’s annualized income was miscalculated, resulting in the household receiving a higher benefit amount than they were entitled to based on their actual income and household size. • One client file did not contain a copy of a recent heating bill. • The file of supporting documentation could not be located for one of our 68 sample items. 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 six 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/fuel 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 Cause: Oversight of program compliance requirements regarding file documentation and human error in determining energy assistance benefits. Effect: Two client files did not contain all the required documentation, and incorrect assistance benefit amounts were awarded to one household. Recommendation: We 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.

Major Program: 10.558 - Child and Adult Care Food Program (Grantor - Department of Agriculture) Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Compliance Requirement: Eligibility Condition: We tested 18 provider files and identified billing errors within two provider files for the December 2023 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 December 2023 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.

Major Program: 93.568 - Low Income Home Energy Assistance (Grantor - Department of Health and Social Services) Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Compliance Requirements: Eligibility Condition: We tested 68 client files and identified the following instances of noncompliance: • One client’s annualized income was miscalculated, resulting in the household receiving a higher benefit amount than they were entitled to based on their actual income and household size. • One client file did not contain a copy of a recent heating bill. • The file of supporting documentation could not be located for one of our 68 sample items. 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 six 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/fuel 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 Cause: Oversight of program compliance requirements regarding file documentation and human error in determining energy assistance benefits. Effect: Two client files did not contain all the required documentation, and incorrect assistance benefit amounts were awarded to one household. Recommendation: We 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.