Finding Text
Finding 2022-010 Lack of Internal Control over Compliance and Noncompliance for Eligibility
Federal Agencies: U.S. Department of Housing and Urban Development, and U.S. Department of Health and Human Services
Federal Programs: NAHASDA and Low Income Home Energy Assistance (LIHEAP), respectively
Assistance Listing Numbers: 14.867 and 93.568, respectively
Award Numbers: 55-IT0211860 and 20BV0211860 (NAHASDA), 21RGAKEC6, 21RGAKLWC5, 21RGAKLIE4, 21RGAKLWC6, 22RGAKLIEA, 23RGAKLIEA, 23RGAKLIEE, and 23RGALLIEI (LIHEAP)
Award Years: 2022 (NAHASDA), 2021, 2022 and 2023 (LIHEAP)
Type of Finding: Material weakness in internal control over compliance and material noncompliance.
Criteria: Adequate internal control over eligibility should be in place to ensure that individuals receiving benefits under federal programs are determined to be eligible and such determinations are documented, reviewed and approved by the necessary level of management, and maintained within an adequate filing system.
Condition and Context: During our testing of eligibility under the NAHASDA program, the Council was unable to provide us with a listing of individuals who were served under the program. Therefore, eligibility testing could not be reasonably and adequately performed. During our testing of eligibility under the LIHEAP program, we noted that 11 of the 12 individuals tested lacked necessary documentation to support an eligibility determination and lacked approval by management.
Cause: Lack of internal control over eligibility.
Effect: Lack of internal control over eligibility could result in inaccurate and unauthorized allocation of funding to individuals within the community.
Questioned Costs: The amount of known or likely questioned costs, if any, could not be determined.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that management strictly adheres to adopted internal control procedures related to grant reporting.
Management’s Response: Management agrees with this finding. See Corrective Action Plan.