Finding Text
Criteria: Recipients who become ineligible due to aging out should be identified at the time of ineligibility and be excluded from future billings. Condition: Management did not identify an ineligibile recipient in a timely manner, resulting in an ineligible receipient receiving funding through the School Readiness program. Cause: Lack of appropriate monitoring over eligibility requirements for recipients. Effect: Management included the ineligible receipient in reimbursement requests and received funding for the same recipient. Questioned costs: A sample of 40 items was tested in which 1 item did not meet the eligibility criteria for grant reimbursement. This error resulted in improper reimbursement of $1,948. This error was extrapolated to the sample population which resulted in total questioned costs of $277,342. Recommendation: We recommend that management implement controls to prevent or detect and correct errors resulting from ineligible recipients receiving funding.Views of responsible officials and planned corrective actions: Management agrees with this finding based on the above criterion. Please refer to the Corrective Action Plan.