Finding Text
Eligibility and Allowable Costs Material Weakness
U.S. DEPARTMENT OF HOMELAND SECURITY – FEMA
Passed through from United Way Worldwide
ALN #: 97.024
Federal Award Identification #: LRO #782600077
Condition: Documentation was not retained to prove eligibility and allowable costs to the program for both rental assistance and utility assistance participants.
Criteria: 2 CFR Part 200.403
Questioned Costs: $28,604
Context: Out of 26 tested for eligibility, 11 recipients did not have adequate support to prove eligibility for both rental assistance and utility assistance. Harmony could not locate documentation to support certain participants including the participant's lease and did not maintain proper participant identification on file. Additionally, within the sample selected, there were individuals who received utility assistance; however, Harmony could not locate the utility bill to support the amounts paid on behalf of the participant. Therefore, there was not a way to verify that the utility assistance met the various utility assistance eligibility requirements as outlined in the grant agreement. Lastly, for one rental assistance recipient, the amount of support provided was greater than three months of assistance as limited by the program.
Cause: Lack of supporting documentation or not properly retaining documentation to support the eligibility of recipients.
Effect: Lack of supporting documentation or not retaining the documentation to support the eligibility causes the funds to become questioned costs.
Identification as repeat finding, if applicable: Not applicable.
Recommendation: We recommend the Organization periodically review supporting documentation for completed applications to ensure all support is retained. We also recommend implementing enhanced internal controls to verify all support is properly retained.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.