Audit 405050

Condition: An instance in which a case was incorrectly coded to the grant under audit. Upon further review, the case file did not contain sufficient supporting documentation in the DAD system to substantiate eligibility under the audited grant. Although the misclassification to the incorrect grant code was identified, required eligibility documentation supporting the case’s inclusion under any applicable grant was not maintained in the system. Criteria: Eligibility for participation in the program requires the Organization to maintain complete and accurate client files in accordance with state requirements. The state provides a prescribed list of documentation that must be obtained and retained prior to determining eligibility and disbursing federal commodities. Cause: The Organization has established procedures intended to ensure the completeness of case files, including a process to verify receipt of all required documentation during the application and approval process. However, in this instance, the established procedures were not effectively followed, resulting in improper grant coding and incomplete documentation within the DAD system. Effect: Case files cannot be considered complete or compliant with program requirements when required eligibility documentation is missing or when cases are improperly coded to a grant for which eligibility cannot be supported. As a result, there is an increased risk that program benefits may be provided to ineligible individuals or charged to an incorrect funding source. Recommendation: We recommend that the Organization strengthen its review procedures to ensure cases are accurately coded to the appropriate grant and all required eligibility documentation is obtained, reviewed, and maintained in the DAD system. Additionally, we recommend that periodic (at least quarterly) reviews of client files be performed to verify ongoing compliance with state documentation and grant eligibility requirements and that missing documentation be obtained and retained where applicable. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and plans to enhance its review of case files to ensure that each file contains the required eligibility documentation and is properly coded to the appropriate grant. Management also plans to reinforce procedures to prevent similar issues in the future.