Finding Text
Eligibility U.S. Department of Health and Human Services Community Service Block Grant – ALN #93.569Criterion:Per 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the Federal Award.The Organization is responsible for ensuring that a participant is eligible to receive services under the CSBG program. The Organization requires management review of participant files to ensure that eligibility procedures have been performed during the intake process to ensure each participant is eligible. Condition:During our review of 25 eligible participant files, 18 out of 25 participant files did not contain evidence of management review prior to CSBG program benefits being provided.Cause and Effect:Management has a process in place to ensure that effective internal controls related to CSBG Eligibility requirements are properly implemented. The internal controls the Organization has in place for the CSBG eligibility determination process were not utilized. Therefore, intake forms and other relevant documentation within CSBG participant files were not properly approved by management in accordance with 2 CFR part 200, subpart D. Recommendation: We recommend that management enhance the design of its control activities to ensure that CSBG participant files are adequately maintained, and strengthen controls surrounding management review of participant files during the intake process to ensure individuals receiving services are eligible for benefits.View of Responsible Officials:The Organization agrees with this finding and has developed a corrective action plan to address.