Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Special Programs for the Aging, Title III, Part C, Nutrition Services; Nutrition Services Incentive Program Assistance Listing Number: 93.045; 93.053 Federal Award Identification Number and Year: DA24-00030 (2024) Pass-Through Agency: City of Seattle Human Services Department Pass-Through Number(s): DA24-00030-A2 Award Period: January 1, 2024 through December 31, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance – Activities Allowed or Unallowed Criteria or specific requirement: Per OMB UG 2 CFR §200.303(a) requires the non-Federal to establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Four of twenty-four Community Dining participants tested lacked sufficient evidence of staff review over the participant's eligible participation in the program services. No other deficiencies were identified in the remaining population of forty participants tested across the Meals on Wheels, Transportation, and Community Dining programs. Questioned costs: None identified. Identification of how questioned costs were computed: N/A If questioned costs are not determinable, description of why know questioned costs were undermined or otherwise could not be reported: Audit procedures did not identify any instances in which services were provided to ineligible participants. Accordingly, no questioned costs were identified. The finding relates to a deficiency in internal control over compliance rather than a known instance of noncompliance. Context: Testing was conducted to determine whether participants receiving services met program requirements and whether participant records contained sufficient evidence of review and support. A total of forty participants were selected for testing across the Meals on Wheels, Transportation, and Community Dining programs. Although all participants were deemed eligible to receive services, and therefore represent allowable activities under the programs, Four of twenty-four Community Dining participants tested lacked sufficient evidence of staff review over the participant's eligible participation in the program services. There were no other deficiencies noted across the total of forty samples tested. Cause: Management did not consistently perform or document its review of Community Dining participant records and participant tracking information. Effect: A lack of controls could result in services provided to ineligible participants, which would result in unallowable activities to the program. Fictitious individuals could be added to the program's client count that could result in an excess of program funding requested that does not reflect true participants served. Repeat Finding: No. Recommendation: Management should strengthen controls over Community Dining participant tracking to ensure participant records are reviewed and supported by appropriate documentation. Management should also implement monitoring procedures to verify that participant counts and listings are complete, accurate, and properly supported. Views of responsible officials and planned corrective actions: Please see the attached Management’s Corrective Action Plan.