FAC Explorer

Finding 391688 (2023-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-01
Audit: 302108
Organization: Department of Human Services (HI)
Auditor: Accuity LLP

AI Summary

  • Core Issue: The Department failed to investigate variances in daily reconciliations, with discrepancies totaling around $26.8 million.
  • Impacted Requirements: Noncompliance with 7 CFR 274.4, which mandates daily reconciliations of SNAP transactions.
  • Recommended Follow-Up: Implement procedures to ensure timely resolution of variances and proper documentation of supervisor reviews.

Finding Text

Finding No. 2023 004 Special Tests and Provisions (Material Weakness) Questioned cost: $ – Federal Agency: U.S. Department of Agriculture AL Number and Title: 10.551, 10.561, and COVID 19 – 10.561 – SNAP Cluster Award Number and Award Year: 7HI4HIS8036 2021 – 2022 7HI400HI4 2020-2023 7HI430HI4 2021-2023 7HI400HI5 2020-2022 7HI430HI5 2021-2023 7HIHI7F1003 2021-2023 Repeat Finding? Yes Condition During our audit, we selected a non statistical sample of 60 daily reconciliations for testing and noted 12 instances where variances were not investigated and there was no evidence that a review of the daily reconciliation was performed. The Department’s daily reconciliations identified variances up to approximately $26.8 million. Criteria Pursuant to 7 CFR 274.4, the Department is required to perform daily reconciliations of all SNAP transactions between the State’s Benefit Account, the U.S. Treasury Department, and all the EBT contractors. Effect Failure to resolve the reconciling items resulted in noncompliance with the requirement. Cause and View of Responsible Officials Although the Department has policies and procedures in place regarding reviews, the policies and procedures do not explicitly require supervisors to evidence their review resulting in the inconsistent application and documentation of supervisor reviews. Recommendation We recommend that the Department develop procedures to ensure that identified variances are resolved and that the reconciliation is reviewed in a timely manner.

Categories

Special Tests & Provisions Material Weakness

Other Findings in this Audit

  • 391661 2023-010
    Material Weakness Repeat
  • 391662 2023-010
    Material Weakness Repeat
  • 391663 2023-008
    Material Weakness Repeat
  • 391664 2023-008
    Material Weakness Repeat
  • 391665 2023-009
    Material Weakness Repeat
  • 391666 2023-009
    Material Weakness Repeat
  • 391667 2023-017
    Significant Deficiency
  • 391668 2023-006
    Significant Deficiency Repeat
  • 391669 2023-011
    Material Weakness Repeat
  • 391670 2023-011
    Material Weakness Repeat
  • 391671 2023-012
    Material Weakness Repeat
  • 391672 2023-012
    Material Weakness Repeat
  • 391673 2023-013
    Material Weakness Repeat
  • 391674 2023-013
    Material Weakness Repeat
  • 391675 2023-014
    Significant Deficiency Repeat
  • 391676 2023-014
    Significant Deficiency Repeat
  • 391677 2023-015
    Material Weakness Repeat
  • 391678 2023-015
    Material Weakness Repeat
  • 391679 2023-016
    Material Weakness Repeat
  • 391680 2023-016
    Material Weakness Repeat
  • 391681 2023-007
    Significant Deficiency Repeat
  • 391682 2023-007
    Significant Deficiency Repeat
  • 391683 2023-007
    Significant Deficiency Repeat
  • 391684 2023-003
    Significant Deficiency Repeat
  • 391685 2023-003
    Significant Deficiency Repeat
  • 391686 2023-003
    Significant Deficiency Repeat
  • 391687 2023-004
    Material Weakness Repeat
  • 391689 2023-004
    Material Weakness Repeat
  • 391690 2023-005
    Material Weakness Repeat
  • 391691 2023-005
    Material Weakness Repeat
  • 391692 2023-005
    Material Weakness Repeat
  • 968103 2023-010
    Material Weakness Repeat
  • 968104 2023-010
    Material Weakness Repeat
  • 968105 2023-008
    Material Weakness Repeat
  • 968106 2023-008
    Material Weakness Repeat
  • 968107 2023-009
    Material Weakness Repeat
  • 968108 2023-009
    Material Weakness Repeat
  • 968109 2023-017
    Significant Deficiency
  • 968110 2023-006
    Significant Deficiency Repeat
  • 968111 2023-011
    Material Weakness Repeat
  • 968112 2023-011
    Material Weakness Repeat
  • 968113 2023-012
    Material Weakness Repeat
  • 968114 2023-012
    Material Weakness Repeat
  • 968115 2023-013
    Material Weakness Repeat
  • 968116 2023-013
    Material Weakness Repeat
  • 968117 2023-014
    Significant Deficiency Repeat
  • 968118 2023-014
    Significant Deficiency Repeat
  • 968119 2023-015
    Material Weakness Repeat
  • 968120 2023-015
    Material Weakness Repeat
  • 968121 2023-016
    Material Weakness Repeat
  • 968122 2023-016
    Material Weakness Repeat
  • 968123 2023-007
    Significant Deficiency Repeat
  • 968124 2023-007
    Significant Deficiency Repeat
  • 968125 2023-007
    Significant Deficiency Repeat
  • 968126 2023-003
    Significant Deficiency Repeat
  • 968127 2023-003
    Significant Deficiency Repeat
  • 968128 2023-003
    Significant Deficiency Repeat
  • 968129 2023-004
    Material Weakness Repeat
  • 968130 2023-004
    Material Weakness Repeat
  • 968131 2023-004
    Material Weakness Repeat
  • 968132 2023-005
    Material Weakness Repeat
  • 968133 2023-005
    Material Weakness Repeat
  • 968134 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $2.17B
10.551 Supplemental Nutrition Assistance Program $895.39M
10.542 Pandemic Ebt Food Benefits $74.01M
93.767 Children's Health Insurance Program $52.88M
93.558 Temporary Assistance for Needy Families $42.41M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $32.90M
15.875 Economic, Social, and Political Development of the Territories $31.60M
21.027 Coronavirus State and Local Fiscal Recovery Funds $22.37M
93.575 Child Care and Development Block Grant $20.71M
93.658 Foster Care_title IV-E $14.69M
93.659 Adoption Assistance $14.28M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $14.28M
93.667 Social Services Block Grant $14.01M
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $10.26M
96.001 Social Security_disability Insurance $7.51M
93.568 Low-Income Home Energy Assistance $5.80M
93.090 Guardianship Assistance $3.88M
93.556 Promoting Safe and Stable Families $1.60M
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1.21M
10.649 Pandemic Ebt Administrative Costs $1.18M
93.777 State Survey and Certification of Health Care Providers and Suppliers (title Xviii) Medicare $1.00M
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $988,169
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $607,471
93.464 Acl Assistive Technology $540,376
14.231 Emergency Solutions Grant Program $487,588
94.011 Foster Grandparent Program $348,625
93.669 Child Abuse and Neglect State Grants $346,420
93.747 Elder Abuse Prevention Interventions Program $310,287
14.241 Housing Opportunities for Persons with Aids $301,602
93.599 Chafee Education and Training Vouchers Program (etv) $218,511
94.016 Senior Companion Program $218,350
93.603 Adoption Incentive Payments $206,000
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $124,281
93.643 Children's Justice Grants to States $110,892
10.545 Farmersõ Market Supplemental Nutrition Assistance Program Support Grants $18,960
93.566 Refugee and Entrant Assistance_state Administered Programs $16,330
84.187 Supported Employment Services for Individuals with the Most Significant Disabilities $16,037
93.369 Acl Independent Living State Grants $16,000
10.537 Supplemental Nutrition Assistance Program (snap) Employment and Training (e&t) Data and Technical Assistance Grants $4,892
84.177 Rehabilitation Services_independent Living Services for Older Individuals Who Are Blind $588