Audit 358229

Condition: Controls in place did not identify an inaccurate calculation of financial assistance payments for a sample of households. Criteria: The Organization is required to comply with the requirements of the Emergency Rental Assistance (ERA) Program. The Organization is required to design and implement controls to ensure financial assistance payments meet the criteria set forth by the U.S. Treasury, including limiting the number of months of rental assistance payments eligible households are permitted to receive and ensuring only costs on or after March 13, 2020 are supported by the program. Cause: While the Organization had procedures in place to review the rental assistance calculations, management's review did not prevent inaccurate assistance payments. Effect: The Organization disbursed an amount that was not calculated in accordance with the U.S. Treasury guidance. Context: Out of a sample of 27 assistance case numbers selected for allowability testing, 2 samples were not properly calculated in accordance with the U.S. Treasury guidance. Furthermore, 5 other samples included mathematical errors. The inaccurate calculations caused overpayments and and 2 underpayments in rental assistance charged to the program. Questioned Costs: $38,237 Recommendation: We recommend the Organization review its procedures and controls to ensure calculations of eligible expenses are performed accurately. Views of Responsible Officials and Planned Corrective Actions: The Organization acknowledges the finding to review procedures around calculations of eligible expenses and management has met to implement corrective action effective April 2025. The Organization has implemented policies and procedures which include additional reviews and approvals of rental assistance calculations prior to disbursement, and an expansion of its internal audit process. See The Organization’s Corrective Action Plan for further details.

Condition: Controls in place did not appropriately verify income for an applicant and documentation of eligibility was not adequately maintained. Criteria: The Organization is required to comply with the requirements of the Emergency Rental Assistance (ERA) Program. The Organization is required to design and implement controls to ensure financial assistance payments meet the criteria set forth by the U.S. Treasury, appropriately documenting household eligibility, including the verification of income. Cause: While the Organization had procedures in place to verify eligibility, appropriate documentation was not maintained for certain applicants. Effect: The Organization risked providing emergency rental assistance to applicants who were not eligible. Context: Out of a sample of 25 assistance case numbers selected for eligibility testing, 1 sample was missing adequate documentation of income verification. Questioned Costs: N/A Recommendation: We recommend the Organization review its procedures and controls to ensure appropriate documentation is maintained for the eligibility of recipients of the program. Views of Responsible Officials and Planned Corrective Actions: The Organization acknowledges the finding to review their procedures around appropriate documentation for eligibility of recipients for the program and management has met to implement corrective action effective April 2025. The Organization has implemented policies and procedures which include additional reviews and approvals of income verification prior to rental assistance disbursement, and an expansion of its internal audit process. See The Organization’s Corrective Action Plan for further details.

Condition: Controls in place did not identify an inaccurate calculation of financial assistance payments for a sample of households. Criteria: The Organization is required to comply with the requirements of the Emergency Rental Assistance (ERA) Program. The Organization is required to design and implement controls to ensure financial assistance payments meet the criteria set forth by the U.S. Treasury, including limiting the number of months of rental assistance payments eligible households are permitted to receive and ensuring only costs on or after March 13, 2020 are supported by the program. Cause: While the Organization had procedures in place to review the rental assistance calculations, management's review did not prevent inaccurate assistance payments. Effect: The Organization disbursed an amount that was not calculated in accordance with the U.S. Treasury guidance. Context: Out of a sample of 27 assistance case numbers selected for allowability testing, 2 samples were not properly calculated in accordance with the U.S. Treasury guidance. Furthermore, 5 other samples included mathematical errors. The inaccurate calculations caused overpayments and and 2 underpayments in rental assistance charged to the program. Questioned Costs: $38,237 Recommendation: We recommend the Organization review its procedures and controls to ensure calculations of eligible expenses are performed accurately. Views of Responsible Officials and Planned Corrective Actions: The Organization acknowledges the finding to review procedures around calculations of eligible expenses and management has met to implement corrective action effective April 2025. The Organization has implemented policies and procedures which include additional reviews and approvals of rental assistance calculations prior to disbursement, and an expansion of its internal audit process. See The Organization’s Corrective Action Plan for further details.

Condition: Controls in place did not appropriately verify income for an applicant and documentation of eligibility was not adequately maintained. Criteria: The Organization is required to comply with the requirements of the Emergency Rental Assistance (ERA) Program. The Organization is required to design and implement controls to ensure financial assistance payments meet the criteria set forth by the U.S. Treasury, appropriately documenting household eligibility, including the verification of income. Cause: While the Organization had procedures in place to verify eligibility, appropriate documentation was not maintained for certain applicants. Effect: The Organization risked providing emergency rental assistance to applicants who were not eligible. Context: Out of a sample of 25 assistance case numbers selected for eligibility testing, 1 sample was missing adequate documentation of income verification. Questioned Costs: N/A Recommendation: We recommend the Organization review its procedures and controls to ensure appropriate documentation is maintained for the eligibility of recipients of the program. Views of Responsible Officials and Planned Corrective Actions: The Organization acknowledges the finding to review their procedures around appropriate documentation for eligibility of recipients for the program and management has met to implement corrective action effective April 2025. The Organization has implemented policies and procedures which include additional reviews and approvals of income verification prior to rental assistance disbursement, and an expansion of its internal audit process. See The Organization’s Corrective Action Plan for further details.