Finding 1117365 (2024-008)

Significant Deficiency
Requirement
BE
Questioned Costs
$1
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: DSHA's monitoring processes identified potential fraud involving $168,055 in assistance to 17 households, with $82,709 still uncollected.
  • Impacted Requirements: DSHA is required to investigate and address fraud as per the Emergency Rental Assistance program guidelines.
  • Recommended Follow-Up: DSHA should further investigate the fraud cases and take necessary actions to report and resolve these issues.

Finding Text

Condition: DSHA’s ERA program included various steps to monitor program disbursements for potential fraud. These monitoring processes were performed during the assistance determination process and by after-the-fact analysis and reviews. DSHA’s after-the-fact processes identified 17 households that potentially received $168,055 in fraudulent assistance during the program’s operation. As of June 30, 2024, the uncollected balance was $82,709. DSHA identified this potentially fraudulent assistance and recovered a portion but did not further pursue resolution of the matter. Criteria: The Emergency Rental Assistance program FAQ specifically requires DSHA “…to investigate and address potential instances of fraud or the misuse of funds that they become aware of.” Questioned Costs: $82,709 Effect: Assistance was potentially provided to ineligible applicants due to fraudulent submissions. Cause: Internal controls over eligibility were not able to prevent or detect and correct potentially fraudulent behavior by applicants. Recommendation: We recommend DSHA further investigate, and report fraud or potential fraud as required by the CFR and program guidelines.

Categories

Questioned Costs Eligibility Subrecipient Monitoring

Other Findings in this Audit

  • 540918 2024-003
    Significant Deficiency Repeat
  • 540919 2024-004
    Significant Deficiency Repeat
  • 540920 2024-005
    Significant Deficiency Repeat
  • 540921 2024-006
    Significant Deficiency Repeat
  • 540922 2024-007
    Significant Deficiency Repeat
  • 540923 2024-008
    Significant Deficiency
  • 1117360 2024-003
    Significant Deficiency Repeat
  • 1117361 2024-004
    Significant Deficiency Repeat
  • 1117362 2024-005
    Significant Deficiency Repeat
  • 1117363 2024-006
    Significant Deficiency Repeat
  • 1117364 2024-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.327 Performance Based Contract Administrator Program $48.21M
21.026 Homeowner Assistance Fund $16.27M
21.023 Emergency Rental Assistance Program $2.83M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.55M
14.239 Home Investment Partnerships Program $994,450
14.326 Project Rental Assistance Demonstration (pra Demo) Program of Section 811 Supportive Housing for Persons with Disabilities $851,078
14.880 Family Unification Program (fup) $401,089
14.881 Moving to Work Demonstration Program $271,102
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $200,462
14.241 Housing Opportunities for Persons with Aids $194,082
14.231 Emergency Solutions Grant Program $105,450
14.275 Housing Trust Fund $91,038
97.042 Emergency Management Performance Grants $78,275
14.871 Section 8 Housing Choice Vouchers $22,603
14.879 Mainstream Vouchers $13,858