Finding Text
Finding 2023-006: Activities Allowed and Allowable Costs and Eligibility
Criteria
Emergency Food and Shelter National Board Program (EFSP) funds may be used for food and related expenses (such as transporting food/food preparation and serving equipment); mass shelter; other
shelter (such as hotels and motels); and rent/mortgage and/or utility assistance limited to one month.
Condition/Context
Based on a report by a forensic investigator and Catholic Charities it was determined supportive service expenditures were processed and paid for ineligible participants. However, based on the same report it
was determined there could be additional costs that were processed and paid for ineligible participants. In addition, due to Wipfli LLP's audit procedures it was determined that the breakdown in
internal controls over the review of participant eligibility and review of payments made for participants was significant and we cannot obtain sufficient audit evidence to support these payments or
participant eligibility.
Cause
Due to lack of supervisory oversight and lack of review of required documentation to support invoices to be paid to participants, several employees falsified participant documents whereby ineligible
individuals with personal relationships to these employees receive assistance payments. Effect
Management became aware of the improprieties and hired an independent forensic investigator. The
forensic investigator identified improper disbursements to ineligible participants along with other
disbursements that required further research, inconclusive, insufficient, unverified, and LLC
discrepancy disbursements.Recommendation
Management should strengthen controls over documentation required for participants to receive
assistance payments along with controls over review of documentation in participant files and
processing of these payments.
View of Responsible Officials
Management agrees with the recommendation and have begun implementing additional procedures
to ensure applicant files are complete and case files and support are being reviewed by supervisory
personnel.