Finding Text
Program Information: See the Corrective Action Plan for chart/table Criteria or specific requirement: Per 2 CFR § 200.303 Internal controls, the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Federal regulations require that grantees verify eligibility before providing services and maintain records documenting such eligibility. Condition/Context: The Department was unable to provide a listing of participants who received services during the year. Therefore, we were unable to select a sample or perform eligibility testing to determine whether services were provided only to eligible individuals in accordance with program regulations. [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Cause: Lack of oversight, record retention, and the inability to locate information for prior years due to turnover. Effect: Failure to maintain eligibility documentation and participant listings creates a risk that services may be provided to ineligible individuals. Questioned Costs: Due to lack of sufficient documentation, we were unable to determine questioned costs. Repeat Finding: Yes – 2021-014. Recommendation: All programs with eligibility requirements should reexamine processes and controls over participant eligibility to ensure all documentation is obtained and retained for all participants, regardless of whether the program staff are familiar with the program participant or not. We recommend management emphasizes all documentation is obtained, properly completed, and retained so they can be easily accessed and presented. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.