Finding Text
Condition: Controls in place did not identify an inaccurate calculation of financial assistance payments for a sample of households. We consider this item to be a significant deficiency in internal control over compliance with the major program. Criteria: The Organization is required to comply with the requirements of the Emergency Rental Assistance (ERA) Program. The Organization is required to design and implement controls to ensure financial assistance payments meet the criteria set forth by the 2025 OMB Compliance Supplement – Treasury Emergency Rental Assistance Program, Section 3201 of the American Rescue Plan Act of 2021 and the US. Treasury Emergency Rental Assistance (ERA1/ERA2) Frequently Asked Questions, including limiting the number of months of rental assistance payments eligible households are permitted to receive and ensuring only costs on or after March 13, 2020 are supported by the program. Cause: While the Organization had procedures in place to review the rental assistance calculations, management's review did not prevent inaccurate assistance payments. Effect: The Organization disbursed an amount that was not calculated in accordance with the U.S. Treasury guidance. Context: Out of a sample of 60 assistance case numbers selected for allowability testing, 2 samples were not properly calculated in accordance with the guidance noted above. Furthermore, 1 other sample included mathematical errors. The inaccurate calculations caused overpayments in rental assistance charged to the program. Questioned Costs: $2,253 Recommendation: We recommend the Organization review its procedures and controls to ensure calculations of eligible expenses are performed accurately. Views of Responsible Official: Management concurs with the finding. The errors identified resulted from inaccurate calculations of rental assistance amounts under the Emergency Rental Assistance program. Management has reviewed the affected cases and evaluated the circumstances contributing to the errors. Additional review procedures, calculation checklists, and supervisory verification steps have been implemented to improve the accuracy of assistance determinations and reduce the risk of future overpayments. Additionally, this federal funding program has come to an end.