Finding Text
Item 2022-001 Eligibility Assistance Listing Number 93.499 Low Income Home Water Assistance Program U.S. Department of Health and Human Services Passed through the Alabama Department of Economic and Community Affairs Pass-through Grant No. LW-010-CONS Condition ? The Agency lacked adequate controls to ensure compliance with the award calculation of eligible applicants receiving grant assistance as outlined by the pass through grantor. During a dual-purpose test of controls and compliance nine applicants out of a sample of sixty received water awards that were erroneously calculated. Approved applications for the nine applicants supported that the applicant met eligibility requirements to receive a program award; however, the award amounts for the nine applicants were not computed correctly in accordance with the grant award guidelines. Criteria ? As specified in 2 CFR section 200.303 the non-Federal entity must establish and maintain effective internal control over the 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. Cause ? Lack of sufficient controls to ensure supporting documentation for eligibility and award calculation is being input into the award system accurately and that the program award for each applicant is being calculated correctly. Questioned Costs ? Net $20 known, $441 likely Effect ? Lack of proper approval and recalculation of awards to participants could result in disallowed costs. Recommendation ? We recommend the implementation of additional controls to ensure proper review and approval of award totals for eligible individuals seeking to receive benefits from the program. Management?s Response ? See ?Corrective Action Plan?