FAC Explorer

Finding 50884 (2022-003)

-
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-07-27
Audit: 53428
Organization: City of Baton Rouge - Parish of East Baton Rouge (LA)
Auditor: Postlethwaite & Netterville Apac

AI Summary

  • Core Issue: The City-Parish ERAP program experienced fraud totaling $37,009 in 2022, with a total of $90,000 since 2021.
  • Impacted Requirements: Compliance with ERAP program guidance requires effective controls to prevent and detect fraud.
  • Recommended Follow-Up: Continue enforcing existing fraud prevention measures and enhance data analysis to identify potential fraud cases.

Finding Text

2022-003) Allowable Costs and Activities Questioned Costs: $37,009 Department of the Treasury 21.023 Emergency Rental Assistance Program (ERAP) Grant No(s): N/A Criteria: ERAP program guidance issued by Treasury indicates that grantees must have controls in place to ensure compliance with their policies and procedures and prevent fraud. Condition: The City-Parish ERA Program has policies and procedures in place to prevent and detect fraud occurring in the ERAP, and four instances of known fraud were self-detected through execution of those policies and procedures. The Baton Rouge Police Department was notified and these matters were investigated. Universe/ Population: Approximately 15,000 applications have been processed by the program since the program?s inception in 2021. Four cases of fraud identified in 2022 have been referred to law enforcement and an additional six cases were reported in the prior year. Effect: The City-Parish?s ERAP program fell victim to known fraud totaling approximately $37,009 in 2022 and $90,000 since the program?s inception in 2021. Cause: The volume, complexity, and rapid pace needed to provide benefits inherently results in higher risk of fraud. The City-Parish?s policies and procedures detected the fraud as required by program guidance. Recommendation: The City-Parish should continue to follow its established policies and procedures for preventing, detecting and deterring fraud. We encourage further data analysis and investigation to allow for further detection of potential fraud. View of Responsible Official: The OCD has policies and procedures in place to prevent and detect fraud in the ERAP and will continue to follow its established policies and procedures. In addition, the ERAP has updated its program guidelines to forbid the provision of rental assistance to any single-family home rentals where the landlord holds homestead exemption. Any other single-family rentals owned by an individual will need to provide proof of payment and receipt of three months of rental assistance via cancelled checks or bank statements. This rule is being implemented due to evidence that most fraud cases involve single-family home rentals owned by individuals.

Corrective Action Plan

2022-003) Allowable Costs and Activities Management?s response and corrective action is as follows: The OCD has policies and procedures in place to prevent and detect fraud in the ERAP and will continue to follow its established policies and procedures. In addition, the ERAP has updated its program guidelines to forbid the provision of rental assistance to any single-family home rentals where the landlord holds homestead exemption. Any other single-family rentals owned by an individual will need to provide proof of payment and receipt of three months of rental assistance via cancelled checks or bank statements. This rule is being implemented due to evidence that most fraud cases involve single-family home rentals owned by individuals. Expected Implementation Date: June 2023 Contact person: Marlee Pittman, Interim Director, Office of Community Development

Categories

Questioned Costs Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Other Findings in this Audit

  • 50873 2022-006
    Significant Deficiency Repeat
  • 50874 2022-007
    Significant Deficiency
  • 50875 2022-008
    Significant Deficiency
  • 50876 2022-009
    Significant Deficiency
  • 50877 2022-006
    Significant Deficiency Repeat
  • 50878 2022-007
    Significant Deficiency
  • 50879 2022-010
    Material Weakness
  • 50880 2022-011
    Material Weakness
  • 50881 2022-012
    Material Weakness
  • 50882 2022-012
    Material Weakness
  • 50883 2022-002
    Significant Deficiency Repeat
  • 50954 2022-004
    Significant Deficiency
  • 50955 2022-005
    Significant Deficiency
  • 50956 2022-013
    Significant Deficiency
  • 50957 2022-014
    Significant Deficiency
  • 627315 2022-006
    Significant Deficiency Repeat
  • 627316 2022-007
    Significant Deficiency
  • 627317 2022-008
    Significant Deficiency
  • 627318 2022-009
    Significant Deficiency
  • 627319 2022-006
    Significant Deficiency Repeat
  • 627320 2022-007
    Significant Deficiency
  • 627321 2022-010
    Material Weakness
  • 627322 2022-011
    Material Weakness
  • 627323 2022-012
    Material Weakness
  • 627324 2022-012
    Material Weakness
  • 627325 2022-002
    Significant Deficiency Repeat
  • 627326 2022-003
    -
  • 627396 2022-004
    Significant Deficiency
  • 627397 2022-005
    Significant Deficiency
  • 627398 2022-013
    Significant Deficiency
  • 627399 2022-014
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $37.49M
21.023 Emergency Rental Assistance Program $25.10M
20.205 Highway Planning and Construction $6.92M
97.039 Hazard Mitigation Grant $6.14M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $5.84M
97.029 Flood Mitigation Assistance $5.47M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $4.75M
59.075 Shuttered Venue Operators Grant Program $3.52M
17.258 Wia Adult Program $1.54M
14.218 Community Development Block Grants/entitlement Grants $1.32M
17.259 Wia Adult Program $1.17M
20.106 Airport Improvement Program $1.13M
93.569 Community Services Block Grant $1.11M
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $936,096
17.278 Wia Adult Program $879,136
93.137 Community Programs to Improve Minority Health Grant Program $818,074
93.686 Ending the Hiv Epidemic: A Plan for America Ryan White Hiv/aids Program Parts A and B (b) $757,086
93.600 Head Start $678,481
14.231 Emergency Solutions Grant Program $602,607
10.558 Child and Adult Care Food Program $586,510
93.568 Low-Income Home Energy Assistance $339,173
97.067 Homeland Security Grant Program $245,647
20.600 State and Community Highway Safety $202,452
93.658 Foster Care_title IV-E $119,398
93.498 Provider Relief Fund $113,017
93.127 Emergency Medical Services for Children $101,508
95.001 High Intensity Drug Trafficking Areas Program $97,145
20.616 National Priority Safety Programs $79,996
16.034 Coronavirus Emergency Supplemental Funding Program $78,600
14.905 Lead Hazard Reduction Demonstration Grant Program $76,888
20.607 Alcohol Open Container Requirements $75,705
14.241 Housing Opportunities for Persons with Aids $67,030
97.042 Emergency Management Performance Grants $61,857
16.843 Gulf States Regional Law Enforcement Technology Training and Technical Assistance Initiative (b) $30,000
16.738 Edward Byrne Memorial Justice Assistance Grant Program $21,000
66.817 State and Tribal Response Program Grants $20,000
17.277 Wia Adult Program $14,798
16.609 Project Safe Neighborhoods $10,854
14.239 Home Investment Partnerships Program $9,810
97.024 Emergency Food and Shelter National Board Program $7,912
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $7,356
10.664 Cooperative Forestry Assistance $4,130
93.069 Public Health Emergency Preparedness $1,861
93.914 Hiv Emergency Relief Project Grants $201
97.044 Assistance to Firefighters Grant $12