Finding Text
Statement of Condition:
During testing eligibility for the Low-Income Home Energy Assistance Program (ALN #93.568) the Organization was unable to provide documentation for three of the forty recipients selected for testing.
Criteria:
Organizations are required to maintain supporting documentation for all recipients receiving grant funding. In addition, there must be periodic reviews to ensure recipients still qualify for assistance.
Cause:
There was significant turnover within the finance department of the Organization subsequent to year-end, and prior to the start of the audit. For the selected transactions noted above, documentation, support, and records were unable to be located by the new finance team.
Effect:
Because the Organization was not able to provide documentation for the noted recipients, we were unable to determine whether the grants to the selected recipients were made in accordance with the applicable grant agreements.
Recommendation:
We recommend that the Organization strengthen its document retention and filing policies to ensure that adequate support is maintained for all recipients receiving federal grants. The Organization should also consider enhancing its accounting policies and procedures manual so that in the event of staff turnover, new employees can understand and follow those policies and procedures.