Audit 41921

Finding 2022-002 Eligibility Federal Agency: U.S. Department of the Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Program Assistance Listing Number: 21.027 Award Period: 9/1/2021 ? 6/30/2023 Type of Finding: Material Weakness in Internal Control over Compliance and Compliance Criteria or specific requirement: Eligibility requirements under contract 21-4619C-201 Eviction Rent Assistance Program 2.0 with the Washington State Department of Commerce require households to meet the criteria of income at or below 80% of Area Median Income and have missed or past due rent payment not paid or partially unpaid since March 1, 2020 and still be occupying the residence. Condition: Documentation that a household met the eligibility requirements of the program was unable to be located for 9 of the 28 payments selected for testing. Questioned Costs: Of the 10 households that were found to be unsupported by sufficient documentation of eligibility benefit payments totaling approximately $90,000 were processed. Extrapolation of the error rate calculated based upon the testing performed resulted in an estimated error of approximately $582,000 of potentially unsupported benefit payments in the remaining untested benefit payments. Context: The terms of the contract required documentation of household eligibility for benefits. Due to turnover of grant staff a number of records are unable to be located. Cause: Insufficient internal control processes and procedures to retain documentation that support determinations for eligibility of grant recipients to receive benefit under a federal award program. Effect: The Health Board awarded benefits to recipients that may not have been eligible under the contract requirements. Recommendation: The Health Board should ensure that program managers are aware of the significant compliance requirements of an award and implement a system of internal control that supports compliance and documentation of compliance.

Finding 2022-002 Eligibility Federal Agency: U.S. Department of the Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Program Assistance Listing Number: 21.027 Award Period: 9/1/2021 ? 6/30/2023 Type of Finding: Material Weakness in Internal Control over Compliance and Compliance Criteria or specific requirement: Eligibility requirements under contract 21-4619C-201 Eviction Rent Assistance Program 2.0 with the Washington State Department of Commerce require households to meet the criteria of income at or below 80% of Area Median Income and have missed or past due rent payment not paid or partially unpaid since March 1, 2020 and still be occupying the residence. Condition: Documentation that a household met the eligibility requirements of the program was unable to be located for 9 of the 28 payments selected for testing. Questioned Costs: Of the 10 households that were found to be unsupported by sufficient documentation of eligibility benefit payments totaling approximately $90,000 were processed. Extrapolation of the error rate calculated based upon the testing performed resulted in an estimated error of approximately $582,000 of potentially unsupported benefit payments in the remaining untested benefit payments. Context: The terms of the contract required documentation of household eligibility for benefits. Due to turnover of grant staff a number of records are unable to be located. Cause: Insufficient internal control processes and procedures to retain documentation that support determinations for eligibility of grant recipients to receive benefit under a federal award program. Effect: The Health Board awarded benefits to recipients that may not have been eligible under the contract requirements. Recommendation: The Health Board should ensure that program managers are aware of the significant compliance requirements of an award and implement a system of internal control that supports compliance and documentation of compliance.