Finding Text
Criteria: United Way of Monterey County (“UWMC”) must establish and maintain effective internal controls over subrecipient monitoring of Emergency Rental Assistance Program (ERAP)
federal awards with pass through agencies, contracted with UWMC to assist in administering ERAP awards.
Condition: UWMC contracts with partner agencies to determine eligibility and distribute ERAP funding. UWMC depends on these partner agencies to thoroughly review and maintain
appropriate documentation verifying the eligibility of recipients for ERAP funding.
Cause: During the single audit for the fiscal year ending June 30, 2024, a partner agency failed to provide documentation verifying the eligibility of one recipient for ERAP funding.
Effect: There may be end recipients that did not meet the eligibility requirements to receive ERAP funding.
Recommendation: We recommend that UWMC collaborate with partner agencies to ensure their control documentation requirements align with federal guidelines. This will help
guarantee that federal funds are accurately accounted for and that partner agencies maintain proper controls over the required documentation for approved ERAP recipients. Additionally,
partner agencies should be required to attest to meeting all documentation requirements before reimbursement.
Management’s Response: In response to this finding, the Vice President of Finance is responsible for oversight of future monitoring visits with partners who receive federal direct financial assistance. There will be an ERAP closeout monitoring visit done with all ERAP partners who received direct financial assistance since the inception of the ERAP program to verify their record and retention procedures. Any record of noncompliance will be documented accordingly.