Finding Text
FINDING REFERENCE NUMBER 2024-031 (See Finding Reference Number 2024-010) FEDERAL PROGRAMS (ALN – 93.568) LOW-INCOME HOME ENERGY ASSISTANCE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES AWARD NUMBERS 2201PRLIEA (Federal Award Year: 10/1/2021 – 9/30/2023) 2301PRLIEA (Federal Award Year: 10/1/2022 – 9/30/2024) 2401PRLIEA (Federal Award Year: 10/1/2023 – 9/30/2025) 2301PRLIEE (Federal Award Year: 10/1/2022 – 9/30/2024) 2301PRLIEI (Federal Award Year: 10/1/2022 – 9/30/2024) ADMINISTRATION ADMINISTRATION FOR SOCIOECONOMIC DEVELOPMENT OF THE FAMILY (ADSEF, BY ITS SPANISH ACRONYM) COMPLIANCE REQUIREMENT ELIGIBILITY TYPE OF FINDING INTERNAL CONTROL AND COMPLIANCE – MATERIAL WEAKNESS AND MATERIAL NONCOMPLIANCE CRITERIA Uniform Guidance at 2 CFR 200.334, Record retention requirements, establishes that: the recipient and subrecipient must retain all Federal award records for three years from the date of submission of their final financial report. In addition, the State Plan indicates the documentation that should be provided in order to determine eligibility, which included: evidence of ID of the participant, evidence of low income, evidence of electricity bill. STATEMENT OF CONDITION As part of our audit procedures for eligibility requirements, we selected forty (40) participants from a population of 166,441 who received the benefits of the program. In relation to those participants that the benefit was not based on eligibility for PAN or TANF programs, we found the following deficiencies: 1. In thirteen (13) participants the ID was not included in the file provided. 2. In accordance with SAIC one (1) participant, the benefit was determined for $893.54, although, in accordance with the file provided, the benefit should have been $607.39. 3. In one (1) participant file, no evidence of the electricity bill was provided, no evidence of eligibility determination nor approved benefit. QUESTIONED COSTS None. PERSPECTIVE INFORMATION This is a systemic deficiency. ADSEF was unable to demonstrate compliance with these compliance requirements. The sample was statistically valid sample. STATEMENT OF CAUSE ADSEF does not have appropriate internal controls over the records retention, eligibility determination and documentation requirements. POSSIBLE ASSERTED EFFECT Participants that do not comply with the criteria to be eligible, might have received the benefits. IDENTIFICATION OF REPEAT FINDING This is a repeat of a finding reported in the prior audit as Finding Numbers is 2023-012/2023-040. RECOMMENDATIONS We recommend management to implement appropriate internal controls over the record retention, eligibility determination, and required documentation in the participant’s files.