Finding Text
Condition: We tested 73 client files and identified the following instances of noncompliance: - Two client files did not contain a current lease agreement. - One client file did not contain a zero income declaration form for a household member that did not have any income. - One client?s application reported an incorrect annual income amount. Household income was understated, resulting in the household receiving a higher benefit amount than they were entitled to based on their income and household size. - One client?s application reported an incorrect number of household members. The number of household members were overstated, resulting in the household receiving a higher benefit amount than they were entitled to based on their income and household size. Criteria: - The program requirements of the Low Income Home Energy Assistance contract administered by the Delaware Department of Health and Social Services indicate that each client file must contain the following documentation: o Application signed by the applicant o Social Security Card or documentation of all social security numbers of all occupants aged 6 months and over in the household o United States Citizen or Qualified Alien verification o Delaware residency verification o Address verification o Recent copy of electricity bill o Lease agreement, if a renter o Income documentation for all household members aged 18 and over if not attending school, including Zero Income Declaration forms, if applicable - Federal assistance to eligible low-income households is determined based upon a benefit matrix established by the State of Delaware each program year. Internal controls should be in place to ensure eligible households are awarded the correct benefit amount based on income level, household size, and fuel source. Cause: Oversight of program compliance requirements regarding file documentation and human error in determining energy assistance benefits. Effect: Three client files did not contain all the required documentation, and incorrect assistance benefit amounts were awarded to two households. Recommendation: We also recommend Charities review its internal controls and implement procedures to ensure that complete and accurate documentation is maintained for each program participant, and to ensure that program recipients are awarded the proper amount of assistance benefits based on their income, household size, and fuel type.