Finding 1221249 (2025-002)

Material Weaknesses in Internal Control over Compliance; Material Noncompliance - Eligibility Criteria Management is required to determine if each family is income eligible by determining the family’s annual income and maintaining records of annual recertifications for each family assisted. Condition During our testing, management could not locate updated annual recertification documentation for certain residents selected for review. As a result, we were unable to verify that annual recertifications were completed in accordance with applicable program requirements. Cause Management did not have adequate procedures in place to ensure annual recertification records were consistently completed, properly maintained, and retained. Effect As a result of the missing annual recertification documentation, the Council could not demonstrate compliance with applicable program requirements for all residents tested. This increases the risk that resident eligibility or continued participation may not be properly supported and that noncompliance may not be prevented or detected timely. Recommendation We recommend the Council strengthen its internal controls over the annual recertification process to ensure required recertifications are completed timely. We further recommend that management implement periodic reviews to verify that annual recertification documentation is completed annually and on file for each resident. Questioned Costs None. Management's Response Management has implemented new procedures to ensure annual recertifications are completed annually for all residents and formal document is maintained in each resident file.