Finding 25806 (2022-001)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: The League did not follow its own procedures for verifying applicant eligibility, resulting in incomplete application files.
  • Impacted Requirements: Grant agreement stipulates that a completed application is mandatory for all applicants to qualify for benefits.
  • Recommended Follow-Up: Implement stricter procedures to ensure all applicants submit complete applications in compliance with federal requirements.

Finding Text

U.S. Dept. of Housing and Urban Development Passed through the Jefferson County Commission Program Names: COVID-19: Emergency Rental Assistance Program Federal Assistance #: 21.023 Item 2022-001 ? Eligibility Condition: The League failed to follow its control procedures regarding applicant eligibility. Each applicant file did not contain a completed application. Criteria: Under Addedum A: Program Description- Item 4 of the grant agreement, "The following is a list of documentation required to be considered for benefits under the program....a. Completed Application". Cause of Condition: Procedures in place to ensure that all applicants provide a completed application were not followed. Effect of Condition: Of the 120 applicants files examined, we found 1 instance where information was missing from the client file. Auditor's Recommendation: It is recommended the League implement procedures to ensure compliance with this requirement as it relates to the federal program.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The testing reveals a singular instance of an 1 item missing from 1 file. We do not believe this is to be broad evidence of the Birmingham Urban League not following its' internal controls but rather an instance of a "missed placed document". We will review internal control procedures with all employees who were parties in the chain of command related to this file and provide ongoing training with respective staff.

Categories

Eligibility

Other Findings in this Audit

  • 602248 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program 1 $9.17M
21.023 Emergency Rental Assistance Program 2 $9.10M
97.024 Emergency Food and Shelter National Board Program $82,601
14.218 Community Development Block Grants/entitlement Grants $66,806