Finding 399826 (2020-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2020
Accepted
2024-06-03

AI Summary

  • Core Issue: Eligibility documentation for program benefits was not retained, preventing compliance testing.
  • Impacted Requirements: Lack of controls led to questioned costs for benefits received, as no eligibility tests could be performed.
  • Recommended Follow-Up: Implement controls to ensure critical documentation is preserved even after a grant closes, to support future audits.

Finding Text

Criteria and Condition: Eligibility for individuals to participate in and receive benefits from the program should be documented and retained in the individual’s file.Context: Tests of compliance related to eligibility for individuals could not be performed. The grant has closed and client has stated they no longer have access to the software where eligibility was determined. Cause: Controls were not followed to make sure appropriate documentation was completed and retained in participant files. Effect: Benefits received by the participant are considered a questioned cost. Questioned Costs: Question costs can not be determined as no testing was performed. Auditor’s recommendation: We recommend the Organization establish controls going forward that in the event a grant is closed access to necessary audit documentation is maintained until the audit is performed or any longer period required by law.View of Responsible Officials and Planned Corrective Actions: The grant closed during the COVID-19 pandemic while the organization was essentially shutdown. Management has since developed a control procedure to ensure that data that must be preserved is captured, particularly at the end of grant program to be able to accurately report the efficacy of the grant funding.

Corrective Action Plan

The management of the organization agrees with the finding and auditor's recommendation. The grant closed during COVID-19 pandemic while the organization was essentially shutdown. Management has since developed a control procedure to ensure that data that must be preserved is captured, particularly at the end of grant program to be able to accurately report the efficacy of the grant funding.

Categories

Eligibility

Other Findings in this Audit

  • 976268 2020-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $535,000
93.558 Temporary Assistance for Needy Families $317,264
93.570 Community Services Block Grant_discretionary Awards $189,607
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $62,056
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $32,979