Finding Text
Internal Controls over Compliance over Eligibility – Significant Deficiency in Internal Controls over Compliance Repeat of finding 2023-002 Federal Program Information: Funding Agency: The Corporation for National and Community Service Title: Foster Grandparent/Senior Companion Cluster Assistance Listing Number: 94.011, 94.016 Federal Award Identification number 22SFHFL002, 22SCHFL001 Award Year: 2023, 2024 Criteria: Per 2 CFR section 200.303 – Internal Controls of the Uniform Guidance states that the nonfederal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Additionally, per 45 CFR Part 2551 Subpart D and 45 CFR Part 2552 Subpart D, participants in the Senior Companion/Foster Grandparent Cluster must meet certain income eligibility guidelines, which are updated annually. Condition: The auditor tested 15 of 109 program volunteer annual income eligibility forms for compliance with these requirements. This was not a statistically valid sample. For 1 form tested there was no evidence of program staff’s approval. For 3 forms tested the calculated income based on information in the form differs from the total reported in the form due to calculation or transposition errors, all income amounts not being included in the total, or monthly amounts not being annualized. Cause: The Organization’s staff did not follow procedures to ensure the annual review of income eligibility was completed accurately and approval was documented. Effect: The Organization could spend federal award monies on stipends provided to ineligible volunteers that would not be detected by controls that are not operating. Questioned costs: None. The errors did not affect the eligibility of the volunteers tested. Auditor’s Recommendation: The auditor recommends the Organization provide training for all program staff for eligibility review procedures and the requirements of document retention and documentation of review and approval. Views of Responsible Officials and Planned Corrective Action: See Management’s Response and Corrective Action Plan beginning on page 47.