Finding 39796 (2022-002)

-
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-08-04
Audit: 37962
Organization: City of Fort Lauderdale (FL)

AI Summary

  • Core Issue: The City couldn't verify income for HOPWA eligibility, leading to potential non-compliance with funding requirements.
  • Impacted Requirements: Inconsistent income verification and reliance on self-verification after COVID-19 restrictions lifted violate program guidelines.
  • Recommended Follow-up: Increase monitoring frequency and sample size of participant files, provide ongoing training for subrecipients, and assess their procedures for effectiveness.

Finding Text

2022-002 Eligibility ? 14.241 HOPWA Condition: The City could not validate the income used in determining eligibility for services of HOPWA funds documented in the Provide Enterprise (PE) System. In addition, income verification support was inconsistent with monthly income amount noted and there was evidence of instances where the monthly support provided was not for a consecutive 3-month period, as required for income verification. Furthermore, self-verification was used to verify income after the COVID-19 restriction was lifted. Context: The participant?s information is initially inputted by the agency (sub-recipient) and submitted to the City for review and approval of funding for housing. For case management, the agency (sub-recipient) input an intake form which includes income, proof of status and identification is reviewed during the annual monitoring process completed by the City. The participant file should include the application information entered and scans of supporting documentation. The PE system does limitations of storage capacity therefore the original hard copies are kept at the agency site and provided upon request. Effect: The City may not be in compliance with the programs eligibility criteria and funding may be jeopardized. Cause: The subrecipients procedure are not conducive to ensure proper income verification of program participants. The City must also increase monitoring of files and perform additional procedures to address known risk with identified subrecipient(s) and/or process(es). Questioned Costs: Undetermined Recommendation: To increase the sample population and frequency of testing of the participant case files to ensure that the program guidelines are being met. Increase the frequency of the subrecipient monitoring and the perform follow-up of noted monitoring findings within prior to traditional annual monitoring. In addition, to provide continual training to the subrecipients and perform assessment of efficiencies of procedures to determine viability of relationship.

Corrective Action Plan

View of responsible officials and planned corrective actions: The City identified this issue also during performance of the subrecipient annual monitoring. A monitoring letter was submitted with the noted findings to the agency of Sunserve, with a corrective action plan returned to acknowledge the finding. The City scheduled a mandatory training on January 12, 2023, which required a minimum of 2 people per agency to attend, and educated on the proper way to perform income verifications and document within the PE system.

Categories

Questioned Costs Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $16.17M
16.922 Equitable Sharing Program $875,633
14.218 Community Development Block Grants/entitlement Grants $627,007
20.507 Federal Transit_formula Grants $402,893
14.241 Housing Opportunities for Persons with Aids $152,403
16.034 Coronavirus Emergency Supplemental Funding Program $71,420
14.239 Home Investment Partnerships Program $68,585
10.559 Summer Food Service Program for Children $59,493
20.205 Highway Planning and Construction $56,865
66.460 Nonpoint Source Implementation Grants $36,779
20.600 State and Community Highway Safety $20,746
16.738 Edward Byrne Memorial Justice Assistance Grant Program $17,635
20.106 Airport Improvement Program $17,491
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $14,541
10.558 Child and Adult Care Food Program $12,481
21.023 Emergency Rental Assistance Program $11,025
97.067 Homeland Security Grant Program $8,750
14.239 Coronavirus State and Local Fiscal Recovery Funds $326