Finding 404938 (2023-001)

Federal Agency: U.S. Department of Health and Human Services Federal Program: 93.568 Low Income Home Energy Assistance Condition: As part of our testing of Action Inc’s (the Organization) internal control over compliance for eligibility, we noted that the Organization did not follow their internal controls regarding income recalculation for one out of forty applications reviewed. The issue did not result in disqualification of the individual to receive benefits nor did the issue impact the participant’s benefits being provided. Criteria: 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. Cause: The Organization did not properly follow its internal controls. Effect: The Organization did not properly calculate the income level for a participant in accordance with its internal controls Context: One out of forty applications sampled. Our sample was not a statistically valid sample. This was not a repeat finding from a prior period. Questioned Costs: None Recommendations: Management should ensure that the Organization’s internal controls in place are properly followed. Management Response: Management agrees with the finding and will provide additional training during fiscal year 2024 to its program staff to ensure that the Organization’s internal controls are properly followed.