Finding Text
Emergency Rental Assistance Program
Assistance Listing Number 21.023
U.S. Department of Treasury
Criteria or Specific Requirement – Eligibility, 15 USC 9058a, Emergency Rental Assistance program (ERA1) – Section 501 of Division N of the Consolidated Appropriations Act, 2021, Pub. L. No. 116-260 (December 27, 2020), and Emergency Rental Assistance program (ERA2) – Section 3201 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2 (March 11, 2021)
Condition – Although the Corporation has implemented controls over compliance with their Emergency Rental Assistance (ERA) Program’s policies and procedures, which included fraud prevention and detection procedures, the Corporation identified program applicants with indicators of potential fraud that could not be independently evaluated by the Corporation under the applicants’ self-certification process allowed by ERA. The Corporation discovered 38 applicants in fiscal year 2023 that included potential fraud indicators. Funds were disbursed to these applicants prior to the Corporation becoming aware of the potential fraud indicators. The potential fraud was not material to the program as a whole.
Questioned Costs – None.
Context – Following the criteria from the U.S. Department of Treasury (the Treasury) as defined in the OMB Compliance Supplement, no exceptions were identified in the auditor’s sample of 40 applicants. The Corporation provided the list of identified potentially fraudulent applicants to the auditor separate from the sample tested by the auditor.
Effect – The aforementioned applicants were determined to be potentially fraudulent by the Corporation on the basis of the presence of potential fraud indicators. The Corporation provided the list of identified potentially fraudulent applicants to the Office of the Attorney General of the State of Mississippi.
Prior Year Auditing Finding – 2022-001
Cause – The Treasury allowed applicants to provide self-certification of financial hardship to meet statutory eligibility requirements. The Corporation followed the prescribed Treasury and ERA guidelines.
Recommendation – Even though the guidelines as established by the Treasury were followed, we recommend the Corporation continue to follow its policies and procedures as it relates to the prevention and detection of fraud and consider the need to develop additional procedures and controls to identify fraud.