Finding Text
Federal Agency: Department of Health and Human Services Federal Program: 93.568 Low-Income Home Energy Assistance Pass-Through Entity: Maryland Department of Human Services Identification Number: FIA/OHEP/22-001 Requirement: Eligibility Type of Finding: Significant deficiency in internal control over major program Criteria: Client benefit amounts are calculated based on household size, level of income and heating type. Weatherization benefit amounts are paid out based on income and eligibility of the building. Condition: Benefit amounts paid directly to landlords on behalf of clients were unable to be recalculated. Weatherization crisis status was unable to be verified based on client documentation. Cause: Management did not implement and enforce procedures to ensure documentation was maintained for landlord direct payments and crisis status of heating and cooling equipment. Effect: Failure to comply with reporting requirements can result in deferral or restrictions of future funding decisions by the funding agency. Context: Of the 25 Maryland Energy Assistance Program (MEAP) client files tested, 2 involved payments made directly to landlords. For these cases, we were unable to recalculate or verify the benefit amounts. Discussions with program management indicated that documentation supporting these payments is not retained, as the benefit amounts are automatically calculated by the State's system. Additionally, of the 5 Weatherization Assistance Program (WAP) client files tested, 4 were designated as crisis clients. However, their profiles lacked documentation to support their crisis status. Program staff indicated that the Hancock software does not require supporting documentation for crisis status, and as a result, some energy auditors include a narrative summary of the crisis condition, while others omit it entirely. Recommendation: Program management should obtain a thorough understanding of the calculation methodology used by the State’s software for payments made directly to landlords and implement procedures to independently verify or recalculate benefit amounts, where feasible, to identify any potential errors. Additionally, program management should establish standardized procedures for documenting crisis status in client profiles to ensure consistent and sufficient support for eligibility determination. Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.