2024-014 Program: Refugee and Entrant Assistance State/Replacement Designee Administered Programs
Federal Financial Assistance Listing Number: 93.566
Federal Grantor: U.S. Department of Health and Human Services
Award No. and Year: Various
Compliance Requirements: Activities Allowed or Unallowed, Al...
2024-014 Program: Refugee and Entrant Assistance State/Replacement Designee Administered Programs
Federal Financial Assistance Listing Number: 93.566
Federal Grantor: U.S. Department of Health and Human Services
Award No. and Year: Various
Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Eligibility
Type of Finding: Material Deficiency in Internal Control Over Compliance and Material Instance of Noncompliance
Criteria:
2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Per Title 45 Subtitle B Chapter IV Part 400 Subpart E Section 400.53, General Eligibility Requirement, states that eligibility for refugee cash assistance is limited to those who:
(1) Are new arrivals who have resided in the U.S. less than the RCA eligibility period determined by the Office of Refugee Resettlement (ORR) Director in accordance with Section 400.211;
(2) Are ineligible for TANF, SSI, OAA, AB, APTDD, and AABD programs;
(3) Meet immigration status and identification requirements in Subpart D (Immigration Status and Identification of Refugees);
(4) Are not full-time students in institutions of higher education, as defined by the ORR.
Per Title 45 Subtitle B Chapter IV Part 400 Subpart E Section 400.66, Eligibility and payment levels in a publicly-administered RCA program, states that in administering a publicly-administered refugee cash assistance program, the agency must operate its refugee cash assistance program consistent with the provisions of its TANF program including the determination of initial and on-going eligibility.
Condition:
During our testing of the SSA’s compliance with eligibility and allowable cost/cost principles, we noted the following:
For two (2) out of forty (40) cases selected for testing, the participants’ country of origin did not meet the general eligibility requirements of the program.
For two (2) out of forty (40) cases selected for testing, participants received cash assistance outside of the eligibility period.
For six (6) out of forty (40) cases selected for testing, the SSA did not retain the required documentation to evidence eligibility under the program.
Cause:
The SSA did not follow their policies to verify and withhold the information described in the condition and did not consistently ensure that participants were eligible.
Effect:
Benefits were provided to ineligible participants.
Questioned Costs:
Questioned costs for cases tested in which we determined to be ineligible to receive cash assistance or cases in which there was insufficient documentation to substantiate the eligibility determination was $7,578.
Context/Sampling:
A nonstatistical sample of forty (40) out of all active program participants were sampled. For ineligible or unsupported cases we have projected the amount of questioned costs against the remining population for a total of $460,581. The condition above was identified during our procedures over eligibility, activities allowed or unallowed, and allowable costs/cost principles testing.
Repeat Finding:
No
Recommendation:
We recommend that the SSA department strengthen its internal controls to ensure that program eligibility criteria are properly supported and retained in case files.
Management Response and Corrective Action:
1. Person Responsible: Rosa Palacios, Human Services Manager
2. Corrective Action Plan:
SSA will implement the following to enhance internal controls over compliance with eligibility:
• Policy and Procedure Review & Update: Review and update existing policies and procedures to ensure clarity of eligibility criteria, including country of origin, eligibility period, and documentation retention requirements. These actions will provide clearer guidelines to prevent future eligibility issues and ensure proper documentation retention. Complete by April 2025.
• Ongoing Monitoring & Compliance Review: Establish a dedicated team to perform monthly reviews of all approved cases, ensuring compliance with eligibility requirements. A monthly report will detail trends, non-compliance issues, and corrective actions results. With these actions, we will have continuous oversight and prompt corrective actions to maintain program integrity. Implement reviews by May 2025.
• Mandatory Eligibility Checklist: Implement a mandatory eligibility checklist for all staff to confirm the required eligibility documents, system entries, and action notices at initial application and semi-annual reporting. These actions ensure staff consistently follow eligibility requirements and semi-annual reporting processes. Implement by May 2025.
3. Anticipated Implementation date: April 2025 and May 2025