Audit 370319

Criteria According to 2 CFR 200.303, non-federal entities receiving federal awards must establish and maintain internal controls over federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition During the testing there were two applications that did not include proof of review prior to the notice of eligibility being granted. Cause The primary cause of the errors identified was lack of administrative oversight and a lack of effective control activities such as effective review procedures and monitoring. Effect The Organization granted notices of eligibility to individuals without the required supporting documentation and/or proper approval. Questioned Costs Not applicable Context After an eligibility application is completed, it is given to a case manager for review. Prior to eligibility being granted, the case manager is supposed to sign that they have reviewed the eligibility application. Out of the sample of 40 files tested, two applications did not include proof of review prior to the notice of eligibility being granted. Recommendation We recommend the client implement controls to ensure all eligibility documentation is obtained and properly reviewed before granting eligibility. This includes providing regular staff training and conducting periodic internal audits to ensure compliance. Views of Responsible Officials See accompanying corrective action plan.