Finding 2023-001: Reportable Finding Considered a Material Weakness – Eligibility
Assistance Listing Number: 10.181
Agency: U.S. Department of Agriculture
Program: Pandemic Relief Activities: Farm and Food Worker Relief Program (FFWR)
Award Number: AM22FFWDC0002-02
Grant Years: 2023
Views of Respons...
Finding 2023-001: Reportable Finding Considered a Material Weakness – Eligibility
Assistance Listing Number: 10.181
Agency: U.S. Department of Agriculture
Program: Pandemic Relief Activities: Farm and Food Worker Relief Program (FFWR)
Award Number: AM22FFWDC0002-02
Grant Years: 2023
Views of Responsible Officials –
The Charity Foundation acknowledges the finding regarding the improper payment of 9,424 benefit checks to ineligible beneficiaries due to insufficient verification of employment and identity documentation. This resulted in $5,654,400 in questioned costs. We understand the seriousness of this issue and have implemented corrective actions to prevent future occurrences.
Corrective Actions –
Root Cause Analysis:
The deficiency arose because the Foundation’s application portal, designed and managed by consultant contractors, failed to accurately verify employment and identity documentation, leading to the approval of ineligible beneficiaries.
Revised Eligibility Verification Process:
In November 2023, the Charity Foundation implemented updated procedures to enhance the verification of applicant eligibility under the FFWR program:
• Initial In-Person Screening: Applicants must now provide proof of employment, such as a paystub or W-2, in person at their place of work (farm, meatpacking facility, or grocery store). This initial screening is intended to ensure that workers are properly verified before accessing the application portal.
• Unique Identifier Creation and Control: The Charity Foundation creates and controls unique identifier codes used for logging into the application portal. These identifiers ensure secure access and prevent duplicate applications. During the initial screening process, the consultants assisting with the sign-up process distribute these unique identifiers to each eligible worker in person at the plants.
• Portal Access and Document Submission: After receiving the unique identifier, applicants log into the portal and are required to upload their identification documents. A dedicated team manually reviews each document to verify that the applicant’s identity and employment meet FFWR eligibility requirements and that the information matches the details entered by the applicant.
Ongoing Monitoring and Compliance:
To ensure the integrity of the process, the Foundation’s internal review team conducts regular compliance checks on the submitted documentation. This ongoing monitoring process ensures that all uploaded documentation meets program standards.
Staff Training:
The Foundation will continue to train team members responsible for verifying applications. This training covers FFWR program requirements, proper identification and employment records review, and how to flag potential discrepancies. Regular training ensures the team remains informed of program expectations and changes.
Consultant Accountability:
We have revised our contract with the consultant contractors managing the application portal to establish stricter accountability measures. This includes ongoing performance reviews and quality control checks to ensure the portal supports accurate identification and employment verification.
Results:
These changes were successfully implemented in November 2023 and are now the standard operating procedure for the Charity Foundation’s FFWR program.
Responsible Person:
The Director of Finance is responsible for overseeing the implementation of the updated eligibility verification process. The Director also ensures compliance with FFWR requirements through continuous monitoring and periodic internal audits.
Completion Timeline:
The corrective actions were fully implemented as of November 2023 and continue to be in effect for all FFWR program applicants moving forward.