Audit 390989

Finding 2024-001 – Deadline for Federal Single Audit - Noncompliance and Internal Control over Compliance - Significant Deficiency Criteria: Per Uniform Guidance 2 CFR 200, the single audit reporting package, and the data collection form (SF- SAC) must be submitted to the Federal Audit Clearing house within 30 calendar days after receipt of the auditor's report(s), or 9 months after the end of the audit period, whichever comes first. Condition: The SF-SAC single audit data collection form for the year ended December 31, 2024, was not submitted to the Federal Audit Clearinghouse by the required deadline by the Organization. Cause: There was a lack of established internal controls and procedures over the reporting process to ensure timely and accurate reporting. Effect: Organization was not in compliance with federal regulations and guidelines. Auditor's Recommendation: We recommend the Organization attempt to meet the annual filing requirements.

Finding 2024-002 –Deficiency in Internal Controls Over Eligibility Determination- Significant Deficiency Criteria: Federal program requirements require that assistance be provided only to eligible households and that eligibility be determined and documented prior to the provision of services. Eligibility documentation must be current and sufficient to support eligibility at the time services are initiated. Condition: During our audit of compliance for the fiscal year ended December 31, 2024, we tested eligibility for participants under ALN 81.042. We noted one instance in which assistance was provided to a household without current eligibility documentation in place at the time services began. Specifically, the Organization relied on a prior-year eligibility application and system information that was misinterpreted as evidence of continued eligibility. Subsequent review determined that the household’s eligibility had expired approximately four months prior to the start of the weatherization project, and updated eligibility documentation was not obtained before services were provided. Cause: The condition occurred due to a misinterpretation of system data and a failure to follow up on obtaining updated eligibility documentation prior to initiating services. In addition, internal controls did not sufficiently prevent the initiation of services without verified, current eligibility. Effect: As a result, federal assistance was provided to a household that was not eligible at the time services were rendered, resulting in noncompliance with federal eligibility requirements. Auditor's Recommendation: We recommend that the Organization strengthen internal controls over eligibility determination to ensure that eligibility is verified, current, and fully documented prior to the provision of services. We also recommend enhanced staff training to ensure system data is correctly interpreted and that eligibility documentation is obtained and retained in accordance with program requirements.