Finding 30693 (2022-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-09-20

Audit: 26413

Organization: Waldo Community Action Partners (ME)

Auditor: Wipfli LLP

AI Summary

Core Issue: Applications for LIHEAP were not certified within the required thirty business days.
Impacted Requirements: This violates the HEAP Rule, leading to significant deficiencies in internal controls.
Recommended Follow-Up: Establish a standard process to ensure timely application certification and compliance.

Finding Text

Finding Number: 2022-002 Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Description: LIHEAP Application Certification Major Program: AL #93.568 ? Low Income Housing Energy Assistance ? FFY 2021, FFY 2022 and FFY 2023 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirements: Eligibility Condition: Out of the sample tested, there were numerous applications that were not certified within thirty business days from the date of application. Criteria: Per the Home Energy Assistance Program (HEAP) Rule, ?The Subgrantee will certify or deny an Application within thirty (30) business days from the Date of Application?. Cause: The Organization was understaffed during 2022 and couldn?t keep up with the volume of applications that needed to be certified within the thirty business days required. Effect: The Organization was not in compliance with the application certification requirement, resulting in nonmaterial noncompliance and a significant deficiency in internal controls over compliance. Recommendation: We recommend that the Organization implement a standard process for certifying the applications within the required timeframe to ensure compliance with the grant agreement and HEAP Rule. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.

Corrective Action Plan

Finding 2022-002 For the 2022 HEAP season, our Energy Assistance department was understaffed, and we saw a 40% increase in emergency fuel applications, as well as a 13% increase (704) in new heating assistance applications. We have since added three more fulltime staff, in addition to the four staff we had, and expect that our certification time will be well within the 30 business day requirement. We also added hiring and retention incentives to facilitate full staffing, and promoted a staff member to a Supervisor position, resulting in a much smoother operational workflow. This corrective action plan was completed by August 2, 2023. The responsible party is LeeAnn Horowitz, 207-338-6809.

Other Findings in this Audit

30692 2022-001

Significant Deficiency
30694 2022-001

Significant Deficiency
30695 2022-001

Significant Deficiency
607134 2022-001

Significant Deficiency
607135 2022-002

Significant Deficiency
607136 2022-001

Significant Deficiency
607137 2022-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
21.023	Emergency Rental Assistance Program	$2.20M
93.568	Low-Income Home Energy Assistance	$640,242
20.509	Formula Grants for Rural Areas and Tribal Transit Program	$434,315
93.569	Community Services Block Grant	$270,059
10.558	Child and Adult Care Food Program	$136,780
20.513	Enhanced Mobility of Seniors and Individuals with Disabilities	$112,712
21.026	Homeowner Assistance Fund	$105,000
93.600	Head Start	$86,247
93.558	Temporary Assistance for Needy Families	$62,068
14.228	Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii	$44,920
93.667	Social Services Block Grant	$29,416
81.042	Weatherization Assistance for Low-Income Persons	$20,425
93.323	Epidemiology and Laboratory Capacity for Infectious Diseases (elc)	$19,639
10.766	Community Facilities Loans and Grants	$10,461
93.332	Cooperative Agreement to Support Navigators in Federally-Facilitated and State Partnership Marketplaces	$2,869
10.559	Summer Food Service Program for Children	$324