Finding Text
Finding 2022-009 Lack of Internal Control over Eligibility
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Indian Housing Block Grant
ALN: 14.867
Award Numbers: 55IT0212790 and 21AH0212790
Award Year: 2021 and 2022
Type of Finding: Material weakness in internal control over compliance and material noncompliance
Criteria: Internal control procedures should be in place to ensure proper documentation is recorded and kept on-file and that only qualified recipients are selected to receive program services.
Condition and context: We were not able to perform eligibility testing due to the Village’s inability to provide us with any documentation showing eligibility determination for individuals that received program services during the year.
Cause: Lack of internal control over eligibility.
Effect: The lack of internal controls over eligibility testing creates the potential for misstatement of expenditures due the Village providing program services to potentially ineligible individuals.
Questioned Costs: Known or likely questioned costs are below the $25,000 reporting threshold; however, we were unable to determine if any ineligible individuals received program support.
Repeat finding: No, this is not a repeat finding.
Recommendation: We recommend the Village adhere to eligibility requirements specified in the grant agreement and entity’s financial assistance policies.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.