FAC Explorer

Finding 1074896 (2023-003)

- Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-09-26
Audit: 321162
Organization: City of Baton Rouge - Parish of East Baton Rouge (LA)
Auditor: Eisneramper

AI Summary

  • Core Issue: The City-Parish ERAP program faced fraud totaling $63,100 in 2023, with a total of $153,000 since 2021.
  • Impacted Requirements: Compliance with U.S. Treasury guidelines for fraud prevention and detection is critical, as evidenced by four instances of fraud detected through existing policies.
  • Recommended Follow-Up: Continue enforcing current fraud prevention measures and enhance data analysis to identify potential fraud more effectively.

Finding Text

Allowable Costs and Activities Questioned Costs: $63,100 Department of the Treasury 21.023 Emergency Rental Assistance Program (ERAP) Grant No(s): N/A Criteria: ERAP program guidance issued by U.S. Treasury indicates that grantees must have controls in place to ensure compliance with their policies and procedures and prevent fraud. Condition: The City-Parish ERAP Program has policies and procedures in place to prevent and detect fraud from occurring, and four instances of known fraud were self-detected through execution of those policies and procedures. The Baton Rouge Police department was notified and these matters were investigated. This is a repeat of finding 2022-003 in our prior year report. Universe/ Population: Approximately 16,000 applications have been processed by the program since the program’s inception in 2021. Thirteen cases of fraud have been identified to date, three of which were identified in 2023. These cases have been referred to law enforcement. Effect: The City-Parish’s ERAP program fell victim to known fraud totaling approximately $63,100 in 2023 and $153,000 since the program’s inception in 2021. Cause: The volume, complexity, and rapid pace needed to provide benefits inherently results in higher risk of fraud. The City-Parish’s policies and procedures detected the fraud as required by program guidance. Recommendation: The City-Parish should continue to follow its established policies and procedures for preventing, detecting and deterring fraud. We encourage further data analysis and investigation to allow for further detection of potential fraud. View of Responsible Official: The volume, complexity, and rapid pace needed to provide benefits inherently results in higher risk of fraud. The City-Parish's policies and procedures detected the fraud as required by program guidance. Additional restrictions were implemented to further protect the program from fraud including no longer allowing any exceptions to homestead, not allowing any single-room rentals, and requiring a landlord provide documentation of 3 months of rental payments/deposits—no handwritten receipts accepted. The City-Parish also sent an email blast out to applicants to ensure they understood the additional documentation requirements. Consultants for the City-Parish provided a fraud detection tip sheet to case managers, consolidating previously given guidance, to assist them in determining potential incidents of fraud. There have been no instances of suspected fraud since July 2023 due to these measures.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 498454 2023-003
    - Repeat
  • 498455 2023-004
    Significant Deficiency
  • 498456 2023-005
    Significant Deficiency
  • 498457 2023-006
    Significant Deficiency
  • 498458 2023-007
    Material Weakness Repeat
  • 498459 2023-008
    Material Weakness Repeat
  • 498460 2023-009
    Significant Deficiency
  • 498461 2023-009
    Significant Deficiency
  • 498462 2023-009
    Significant Deficiency
  • 498463 2023-010
    Significant Deficiency
  • 498464 2023-010
    Significant Deficiency
  • 498465 2023-010
    Significant Deficiency
  • 1074897 2023-004
    Significant Deficiency
  • 1074898 2023-005
    Significant Deficiency
  • 1074899 2023-006
    Significant Deficiency
  • 1074900 2023-007
    Material Weakness Repeat
  • 1074901 2023-008
    Material Weakness Repeat
  • 1074902 2023-009
    Significant Deficiency
  • 1074903 2023-009
    Significant Deficiency
  • 1074904 2023-009
    Significant Deficiency
  • 1074905 2023-010
    Significant Deficiency
  • 1074906 2023-010
    Significant Deficiency
  • 1074907 2023-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $42.80M
21.023 Emergency Rental Assistance Program $9.04M
20.205 Highway Planning and Construction $7.79M
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $7.43M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $5.22M
97.039 Hazard Mitigation Grant $5.18M
97.029 Flood Mitigation Assistance $5.12M
93.914 Hiv Emergency Relief Project Grants $5.04M
93.686 Ending the Hiv Epidemic: A Plan for America � Ryan White Hiv/aids Program Parts A and B $1.97M
93.137 Community Programs to Improve Minority Health Grant Program $1.92M
17.259 Wioa Youth Activities $1.70M
93.569 Community Services Block Grant $1.38M
17.278 Wioa Dislocated Worker Formula Grants $1.19M
20.930 Payments for Small Community Air Service Development $1.00M
14.231 Emergency Solutions Grant Program $972,687
17.258 Wioa Adult Program $904,123
93.600 Head Start $674,944
10.558 Child and Adult Care Food Program $661,662
20.600 State and Community Highway Safety $639,142
14.218 Community Development Block Grants/entitlement Grants $573,380
97.067 Homeland Security Grant Program $350,265
14.239 Home Investment Partnerships Program $137,394
95.001 High Intensity Drug Trafficking Areas Program $120,643
93.658 Foster Care Title IV-E $103,567
20.607 Alcohol Open Container Requirements $86,780
20.616 National Priority Safety Programs $82,655
16.609 Project Safe Neighborhoods $75,354
93.568 Low-Income Home Energy Assistance $73,314
93.493 Congressional Directives $63,633
97.042 Emergency Management Performance Grants $61,405
97.024 Emergency Food and Shelter National Board Program $57,923
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $26,525
16.738 Edward Byrne Memorial Justice Assistance Grant Program $19,352
14.905 Lead Hazard Reduction Demonstration Grant Program $18,255
15.904 Historic Preservation Fund Grants-in-Aid $13,000
16.034 Coronavirus Emergency Supplemental Funding Program $7,205
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $6,688
93.069 Public Health Emergency Preparedness $5,397
14.241 Housing Opportunities for Persons with Aids $1,995
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $1,947
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $334
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $-90