Finding 1205657 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-04-01

AI Summary

  • Core Issue: The Organization failed to maintain adequate client eligibility records, impacting compliance with federal requirements.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303 and 2 CFR 200.334 due to missing documentation for 35 out of 53 client samples.
  • Recommended Follow-Up: Implement improved procedures for maintaining client records to prevent future issues and ensure compliance.

Finding Text

2025-001: Department of Health and Human Services - Temporary Assistance for Needy Families (TANF), Federal Assistance Listing #93.558; Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054. Criteria: The Organization should have processes and procedures in place to keep and maintain client eligibility records, per 2 CFR 200.303 and 2 CFR 200.334. Condition: During our audit, we noted that the Organization was unable to locate records substantiating the eligibility of clients served. Context: During testing, the Organization was unable to find supporting eligibility records for 35 out of the 53 samples that received services as part of a federal program. The sample was not intended to be, and was not, a statistically valid sample. Cause/Effect: Internal control processes over proper maintenance of clients’ records were not operating effectively, causing documentation to not be located. Questioned Costs: $40,400 calculated based on the dollar amount submitted for reimbursement for each item tested without proper eligibility records. Identification of Repeat Finding: Repeat Finding 2024-001. Recommendation: We recommend procedures are implemented to ensure proper maintenance of client records. Views of Responsible Officials: Management agrees with the recommendation and has implemented corrective action as outlined in the corrective action plan.

Corrective Action Plan

Finding 2025-001 – Incomplete Eligibility Documentation (Repeat Finding 2024-001) Management agrees with the recommendation and will implement stronger processes to ensure that records confirming the eligibility of program participants are obtained and properly maintained. Specifically, all program staff documenting client eligibility will receive related training, both internally as well as from identified external sources. Accordingly, program staff attended a training on case management provided by an external partner in November 2025. Internal training will center on the Employment and Training Eligibility Determination form developed by the program pass-through entity in March 2026. This document provides a detailed checklist of the specific information required to verify client eligibility prior to delivering program services. Finally, the organization will work with its external partners (PTEs, monitoring agencies, etc.) to ensure that requirements are consistently stated across all pertinent organizations and described in common nomenclature to avoid confusion and/or inadvertent omissions, which have been key factors contributing to the reoccurrence of this finding in FY25. The contact persons for the Corrective Action Plan are Lacy Stokes, VP of Family Empowerment and Self-Sufficiency; Ted Lewis, EVP of Operations and Information Technology (IAT Co-Chair); and Aaron Hernandez, Sr. Director, Finance (IAT Co-Chair). The anticipated completion date is May 31, 2026.

Categories

Cash Management Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205658 2025-002
    Material Weakness Repeat
  • 1205659 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $3.70M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $345,030
93.569 COMMUNITY SERVICES BLOCK GRANT $124,717
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $98,604
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $73,918
10.558 CHILD AND ADULT CARE FOOD PROGRAM $56,309
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $12,587
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $210