Finding Text
2023-003 Participant Eligibility Federal Program Information: Funding agency: Department of the Treasury, passed through the Battle Creek Community Foundation Title: Emergency Rental Assistance Program AL number: 21.023 Criteria or Specific Requirement: In order to support audits in accordance with Uniform Guidance, auditee's must maintain control over documentation to support program eligibility determinations. Condition: In our sample of 40 client files selected for eligibility testing, we were not able to obtain sufficient documentation to verify eligibility was properly determined for six of the files. NIBC represented that all client files were turned over to another nonprofit organization and are therefore no longer available. For context, NIBC provided the client files for audit before the files were turned over but did not include eligibility information at the time. Audit procedures did not occur to identify the missing information until after the files were turned over. Questioned Costs: None Effect: NIBC is not able to support eligibility determinations for client files that were turned over to another agency. As a result, the opinion on compliance is modified and a material weakness in internal control over compliance exists. Cause: The Emergency Rental Assistance Program had ended and NIBC no longer had a need to retain the files. Repeat: No Auditor's Recommendation: We recommend NIBC copy participant eligibility information for their own records to have available for audits or ensure the successor entity is able to provide eligibility information to NIBC auditors. View of Responsible Officials: Management agrees with the finding and has written a corrective action plan.