Finding Text
Finding 2025-002 Agency: U.S. Department of Health and Human Services (CSBG) Program: Community Service Block Grant (AL No. 93.569) Significant Deficiency and Noncompliance over Eligibility Repeat Finding: No Condition: During our testing of participant eligibility for the CSBG program, we noted the following exceptions out of a sample size of 40: (1) for one participant, the CSBG eligibility form was not signed by the case manager; and (2) for two participants, we were unable to obtain documentation to support proof of residence. Criteria: As provided in 2 CFR section 200.303: An entity must establish internal controls to ensure compliance with federal statutes and program requirements, including eligibility. Additionally, 2 CFR section 200.403 requires that costs must be adequately documented to be allowable. Cause: The Organization did not follow its policies and procedures to ensure all eligibility documents are properly completed, authorized, and retained. Effect: The Organization was unable to provide adequate documentation that eligibility criteria were met prior to providing services. Questioned Costs: Unknown Recommendation: We recommend that management strengthen internal controls over eligibility determination and documentation to ensure compliance with federal program requirements. Management should establish procedures to require complete and signed eligibility forms prior to approving or providing program benefits and consider implementing a standardized eligibility checklist to ensure all required supporting documentation (e.g., income verification, residency, other criteria) is obtained and retained. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the schedule of corrective action plans.