Finding 374395 (2022-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2024-03-07

AI Summary

  • Core Issue: Incomplete participant files hindered eligibility evaluations for NAP benefits, violating federal requirements.
  • Impacted Requirements: Missing documentation, such as ID verification and residency proof, compromises compliance with the Department's and federal eligibility criteria.
  • Recommended Follow-up: The Department should enforce internal controls, ensure all required documents are collected, and clearly communicate verification procedures to staff.

Finding Text

Criteria: The Department is required to identity in its annual plan the population eligible for NAP benefits, In testing the propriety of eligibility determinations and disbursements for NAP benefits, the auditor shall apply the eligibility criteria established by the Department and identified in the annual plan (7 CFR section 285.3(b)(2)). 7 CFR Part 285 Section 3 - Plan of Operation. states (b) the plan of operation shall include the following, information: ( 2) A description of the needy persons residing in the Commonwealth of Puerto Rico and an assessment of the food and nutrition needs of these persons, The description and assessment shall demonstrate that the Nutrition Assistance Program is directed toward the neediest persons in the Commonwealth of Puerto Rico. We noted several files for participants of the referenced federal award were not complete to evaluate properly and conclude participantlbeneficiary was eligible. as required by the Department procedures and federal law. As a result. we could not conclude participants reviewed were eligible to receive benefits as required by the federal award. Perspective We selected a sample of forty (40) participant files as part of compliance testing regarding eligibility. Auditors noted several cases in which the following documentation was not present in participants' tiles as follows: • (2) Verification of valid ID • (2) Evidence of residence • (3) Release of information form • (2) USA Citizenship or Verification of Alien Status form • (2) No copy of Social Security ID or SAID.' verification form of participants • (2) Resource Verification Form ($5k-$15k) • (2) Determination form • (2) Notification Advice form The above documentation is required as part of the eligibility controls established in the program's state plan to prove the existence of participants. Effect: The Department may be qualifying participants who do not meet the eligibility requirements established by federal regulations. T his may ultimately result in sanctions, reduced funding. having to return monies to the federal agency. or cancellation of grants. Cause: The Department is not adhering to the established internal control procedures and not adequately documenting its evaluation and conclusion over the eligibility of participants. Recommendation: The Department must adhere to its existing internal control procedures to properly document eligibility verification procedures performed and to ensure compliance \kith federal regulations and the State Plan. All documents established by the Department to evaluate and conclude participants are eligible. need to be obtained and evidenced in the participant's file. The Department should also properly communicate eligibility verification procedures to employees and provide a clear outline as to the tasks. responsibilities_ and supervision and approval tasks for each employee within the eligibility verification process. In case any document established for verification of eligibility is temporarily waived due to specific reasons (natural disasters, pandemic, etc.) the Department should formally communicate the provisions of the temporary waiver. obtain approval of the federal awarding agency, and formal communication should be included in the participant's file. Questioned Costs: Could not be determined. Management's Response: Refer to Grantee's Corrective Action Plan_

Corrective Action Plan

Training was imlemented to ensure the technicians submit the correct information.

Categories

Eligibility Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 374396 2022-002
    Material Weakness Repeat
  • 374397 2022-003
    Material Weakness Repeat
  • 374398 2022-004
    Significant Deficiency Repeat
  • 950837 2022-001
    Material Weakness Repeat
  • 950838 2022-002
    Material Weakness Repeat
  • 950839 2022-003
    Material Weakness Repeat
  • 950840 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.566 Nutrition Assistance for Puerto Rico $3.33B
10.542 Pandemic Ebt Food Benefits $275.74M
93.575 Child Care and Development Block Grant $100.64M
93.558 Temporary Assistance for Needy Families $54.12M
93.600 Head Start $43.28M
93.356 Head Start Disaster Recovery $37.30M
93.658 Foster Care_title IV-E $25.44M
14.231 Emergency Solutions Grant Program $25.33M
93.568 Low-Income Home Energy Assistance $15.25M
96.001 Social Security_disability Insurance $14.71M
93.563 Child Support Enforcement $14.30M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $9.20M
93.667 Social Services Block Grant $8.99M
93.556 Promoting Safe and Stable Families $4.13M
10.568 Emergency Food Assistance Program (administrative Costs) $3.85M
93.645 Stephanie Tubbs Jones Child Welfare Services Program $3.55M
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $1.72M
10.649 Pandemic Ebt Administrative Costs $1.45M
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $751,747
93.669 Child Abuse and Neglect State Grants $448,305
93.659 Adoption Assistance $431,670
93.599 Chafee Education and Training Vouchers Program (etv) $399,767
93.434 Every Student Succeeds Act/preschool Development Grants $388,010
14.267 Continuum of Care Program $382,399
10.558 Child and Adult Care Food Program $360,843
93.590 Community-Based Child Abuse Prevention Grants $254,808
93.643 Children's Justice Grants to States $127,366
93.597 Grants to States for Access and Visitation Programs $85,043
10.565 Commodity Supplemental Food Program $80,919
93.747 Elder Abuse Prevention Interventions Program $78,840
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $74,201
93.489 Child Care Disaster Relief (a) $49,776
10.569 Emergency Food Assistance Program (food Commodities) $35,655