Finding 1099060 (2023-002)

Federal Program Information: Funding Agency: The Corporation for National and Community Service Title: Foster Grandparent/Senior Companion Cluster Assistance Listing Number: 94.011, 94.016 Federal Award Identification number 22SFHFK002, 22SCHFL001 Award Year: 2023 Condition: Based on audit procedures performed, it was determined there were instances that review and approval in internal controls related to the annual income verification had not been documented. The Organization lacks controls over compliance for eligibility for volunteers for annual income verification that would ensure review and approval of eligibility of program volunteers on an annual basis. Criteria: Per 2 CFR section 200.303 – Internal Controls of the Uniform Guidance states that the nonfederal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 45 CFR Part 2551 Subpart D and 45 CFR Part 2552 Subpart D, participants in the Senior Companion/Foster Grandparent Cluster must meet certain income eligibility guidelines, which are updated annually. Questioned costs: No questioned costs. Effect: The Organization could spend federal award monies on stipends provided to ineligible volunteers that would not be detected by controls that are not operating. Cause: The Organization’s staff did not follow eligibility review procedures to ensure the annual review of income eligibility is completed and reviewed. Auditor’s Recommendation: The Auditor recommends the Organization provide training for all program staff for eligibility review procedures and the requirements of document retention and documentation of review and approval. Views of Responsible Officials and Planned Corrective Action: See Management’s Response and Corrective Action Plan beginning on page 47.