Finding Text
Emergency Rental Assistance Program Assistance Listing Number 21.023 U.S. Department of Treasury Criteria or Specific Requirement ? Eligibility Condition ? Although the Corporation has implemented controls over compliance with their Emergency Rental Assistance (ERA) Program?s policies and procedures, which included fraud prevention and detection procedures, the Corporation identified program applicants with indicators of potential fraud that could not be independently evaluated by the Corporation under the applicants? self-certification process allowed by ERA. The Corporation discovered 1,229 applicants in fiscal year 2022 and 13 applicants in fiscal year 2021 that included potential fraud indicators. Funds were disbursed to these applicants prior to the Corporation becoming aware of the potential fraud indicators. The potential fraud was not material to the program as a whole. Questioned Costs ? None. Context ? Following the criteria from the U.S. Department of Treasury (the Treasury) as defined in the OMB Compliance Supplement, no exceptions were identified in the auditor?s sample of 40 applicants. The Corporation provided the list of identified potentially fraudulent applicants to the auditor separate from the sample tested by the auditor. Effect ? The aforementioned applicants were determined to be potentially fraudulent by the Corporation on the basis of the presence of potential fraud indicators. During November 2021, the Corporation provided the initial list of identified potentially fraudulent applicants to the Office of the Attorney General of the State of Mississippi. Prior Year Auditing Finding ? N/A Cause ? The Treasury allowed applicants to provide self-certification of financial hardship to meet statutory eligibility requirements. The Corporation followed the prescribed Treasury and ERA guidelines. Recommendation ? Even though the guidelines as established by the Treasury were followed, we recommend the Corporation continue to follow its policies and procedures as it relates to the prevention and detection of fraud and consider the need to develop additional procedures and controls to identify fraud.Views of Responsible Officials and Planned Corrective Actions - In addition to following the Corporation?s policies and procedures developed in accordance with ERA Program guidelines established by the Treasury; the Corporation implemented additional procedures related to fraud prevention and detection. The Corporation began independent property ownership searches, added additional application review requirements for large tenant-paid payments, and added additional recertification requirements including proof of payment to landlord. Effective August 15, 2022, Governor Reeves directed Mississippi Home Corporation to stop accepting new applications for assistance through the ERA Program. All applications received prior to August 15, 2022, would continue to be processed in accordance with federal law and program rules and regulations. After such applications are processed, the remaining federal funds, if any, will be returned to the United States Department of Treasury.