Finding 10815 (2023-001)

2023-001 Payments on behalf of Ineligible Participants Federal Agency: U.S. Department of the Treasury Federal Program: 20.023 Emergency Rental Assistance Program (ERAP) Condition Management identified four payments under the ERAP totaling $40,000 for the year ended June 30, 2023, that were made on behalf of ineligible participants. Additionally, management identified additional payments on behalf of ineligible participants under the non-federal Rental Assistance for Families in Transition (RAFT) program during the period July 1, 2021 through December 31, 2023. Management identified 27 ineligible payments totaling $226,190 made under the two programs for the period July 1, 2021 through December 31, 2023. Context No exceptions were found in a non-statistically valid sample of forty disbursements totaling $82,443 under the ERAP. The population for the ERAP disbursements was 3,612 totaling $6,645,726. The ineligible payments were detected through non-sampling procedures. Criteria Financial assistance to households including payments of rent, rental arrears, utilities and home energy costs, utility and home energy costs arrears and other expenses relating to housing must be paid to participants whom are at risk of homelessness and have household income levels at or below 80% of the area median income. Cause Manual overrides in EOHLC’s online payment system were used to process payments that did not pass the initial verification process. Effect Certain payments were not made to or on behalf of eligible participants in accordance with program regulations. Questioned Costs $40,000 Repeat Finding No Recommendation We recommend management continue to work with EOHLC to develop additional policies and procedures over the review, approval and payments process to ensure funding is only provided to or on behalf of eligible participants in accordance with program regulations. Management Response Management agrees with the finding. See management’s attached corrective action plan.