Finding 399361 (2023-002)

Finding 2023-001 Lack of Internal Controls over Eligibility Federal Agency: U.S. Department of the Treasury Federal Programs: Emergency Rental Assistance Program Assistance Listing Numbers: 21.023 Award Numbers: HAP-HSS-22-BCF-1 Award Years: 2023 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: In accordance with 15YSC9058a, to ensure eligibility requirements are met, household eligibility should be tested to focus on whether grantees established and adhered to reasonable policies for evaluating household applications within Treasury’s framework providing for the use of self-attestation, categorical eligibility, and fact-specific proxies in qualifying circumstances. Condition and Context: During our testing over internal controls over eligibility we identified one application that was missing management signatures, and two beneficiaries were missing the application form. Cause: Inadequate internal control over eligibility. Effect: Program funding is at higher risk of being given to non-eligible recipients. Questioned Costs: None exceeding reportable threshold. Repeat Finding: This is not a repeat finding. Recommendation: Management should implement internal controls and policies to properly review and retain eligibility documents. Management Response: Management agrees with this finding, see Corrective Action Plan.