Finding 1141810 (2023-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2025-06-18
Audit: 359207
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Several individuals received diapers despite not being income-eligible for the TANF program.
  • Impacted Requirements: The program requires strict eligibility verification, which is currently lacking.
  • Recommended Follow-Up: Implement a tracking system for diaper purchases and distributions to ensure compliance with eligibility criteria.

Finding Text

2023-002 – Eligibility Documentation Federal Program Information: Funding agency: US Department of Health and Human Services, passed through Michigan Department of Health and Human Services Title: Temporary Assistance for Needy Families AL number: 93.558 Award Numbers: E20234318-00, E20234318-00 Condition – Mid-Michigan Community Action Agency, Inc.'s operates a diaper bank program and utilizes other entities to distribute diapers to program eligible participants. During our test of eligibility, we noted several individuals that were not income-eligible for the program. Management of Mid-Michigan Community Action Agency, Inc. represented that in cases of individuals that are determined ineligible that the entities distributing the diapers will utilize diapers from other sources. However, Mid-Michigan Community Action Agency, Inc. was not able to substantiate the use of diapers from other sources. Criteria – The Temporary Assistance for Needy Families (TANF) program requires individuals receiving assistance to be eligible for the program. Cause – Mid-Michigan Community Action Agency, Inc. does not have a process in place to track the purchase and issuance of diapers purchased with TANF funds. Effect – A significant deficiency in internal control over eligibility exits due to the lack of documentation over the distribution of diapers to income eligible participants. Recommendation – We recommend management and those charged with governance evaluate the controls over this program to establish a mechanism that tracks the purchase and issuance of diapers to income-eligible participants. View of Responsible Officials – Management agrees with the assessment and has committed to a corrective action plan.

Categories

Eligibility Procurement, Suspension & Debarment Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 565361 2023-001
    Material Weakness
  • 565362 2023-001
    Material Weakness
  • 565363 2023-001
    Material Weakness
  • 565364 2023-001
    Material Weakness
  • 565365 2023-001
    Material Weakness
  • 565366 2023-001
    Material Weakness
  • 565367 2023-001
    Material Weakness
  • 565368 2023-002
    Significant Deficiency
  • 1141803 2023-001
    Material Weakness
  • 1141804 2023-001
    Material Weakness
  • 1141805 2023-001
    Material Weakness
  • 1141806 2023-001
    Material Weakness
  • 1141807 2023-001
    Material Weakness
  • 1141808 2023-001
    Material Weakness
  • 1141809 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
81.042 Weatherization Assistance for Low-Income Persons $2.24M
93.600 Head Start $2.20M
10.565 Commodity Supplemental Food Program $1.60M
93.569 Community Services Block Grant $1.53M
93.568 Low-Income Home Energy Assistance $1.08M
64.033 Va Supportive Services for Veteran Families Program $836,544
93.558 Temporary Assistance for Needy Families $768,327
10.569 Emergency Food Assistance Program (food Commodities) $578,780
14.231 Emergency Solutions Grant Program $424,333
93.499 Covid-19 Low Income Household Water Assistance Program $407,345
14.235 Supportive Housing Program $393,792
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $383,032
10.568 Commodity Supplemental Food Program $184,817
10.558 Child and Adult Care Food Program $151,220
21.023 Covid-19 Emergency Rental Assistance Program $129,965
14.169 Housing Counseling Assistance Program $67,900
64.033 Covid-19 Va Supportive Services for Veteran Families Program $62,819
14.267 Continuum of Care Program $55,831
97.024 Covid-19 Emergency Food and Shelter National Board Program $53,657
93.600 Covid-19 Head Start $52,403
14.231 Covid-19 Emergency Solutions Grant Program $43,757
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $20,000
14.239 Home Investment Partnerships Program $16,699
97.024 Emergency Food and Shelter National Board Program $16,230
14.871 Section 8 Housing Choice Vouchers $6,566
10.182 Local Food Purchase Assistance $3,984